Document:

Unassociated Document

    GEOS
COMMUNICATIONS, INC.

    

    DRAWDOWN
PROMISSORY NOTE

    

    

     

    
      	Up to
      $2,600,000 	
              May 21,
      2010

            

    

    

    FOR VALUE
RECEIVED, the undersigned, Geos Communications, Inc., a Washington
corporation (“Maker”),
hereby promises to pay to the order of Butterfield Family Trust U/A/D 1/12/1999
or its successors or assigns (“Payee”), the unpaid principal
balance of the Drawdowns (as defined below), together with interest thereon
which shall accrue at a rate equal to twelve percent (12%) per
annum.  All payments on this Drawdown Promissory Note (this “Note”) shall be due and
payable in lawful money of the United States of America.

    

      This
Amended and Restated Drawdown Promissory Note amends and restates in its
entirety that certain Drawdown Promissory Note dated February 23, 2010 made by
Maker to Payee.

    

    1.           Drawdowns.  The
principal of this Note may be drawndown from time to time prior to the Maturity
Date (as defined below), upon written request from Maker to Payee (each, a
“Drawdown Request”),
which Drawdown Request must state the amount to be drawndown, which amount must
be in increments of $100,000 and must be at least $300,000.  Payee
shall fund each Drawdown Request within five (5) Business Days (as defined
below) after receipt of a Drawdown Request; provided, however, that the maximum
amount of drawdowns under this Note is $2,600,000.  Upon Payee funding
a Drawdown Request, Maker and Payee will amend Schedule I to this
Agreement to reflect such drawdown.  For each $100,000 of Drawdowns
funded by Payee, Maker will issue to Payee, for no additional consideration, a
Warrant to purchase 10,000 shares of common stock of Maker, which Warrants will
be substantially in the form attached hereto as Exhibit
A.

    

    2.           Principal and Interest
Payments.  The principal of this Note, together with all
accrued but unpaid interest hereon, shall be due and payable on the earlier of:
(i) the closing on at least $5,000,000 of subscriptions for shares of Series I
Preferred Stock of Maker (the “Series I Preferred Stock”) in
the Offering (as defined below); or (ii) August 23, 2010 (the “Maturity Date”).

    

    3.           Prepayments.  Maker
may at its sole option prepay all or any part of the principal of this Note, or
interest thereon, before maturity without penalty or premium.  All
such prepayments shall first be applied to accrued interest under this Note, and
the remaining balance of any such prepayments, if any, shall be applied to
principal of this Note.

    

    4.           Method of
Payment.  All payments made under this Note, whether of
principal or interest, shall be made by Maker to Payee on the date specified or
provided herein and shall be delivered by means of certified or cashiers’ check
or wire transfer of immediately available funds to an account specified by the
holder hereof.  Whenever payment hereunder shall be due on a day which
is not a Business Day, the date for payment thereof shall be extended to the
next succeeding Business Day.  If the date for any payment is extended
by operation of law or otherwise, interest thereon shall be payable for such
extended time.  “Business Day” means every day
which is not a Saturday, Sunday or legal holiday.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    5.           Conversion.  The
Company is in the process of commencing a private placement of up to $12,000,000
of equity in the form of Series I Preferred Stock and warrants (the “Offering”).  The
Company intends to close the Offering in one or more tranches.  The
Company shall give Payee written notice of the final closing of the
Offering.  Payee shall have sixty (60) days thereafter to give notice
to the Company of Payee’s conversion of all or any portion of the principal
balance of, and/or accrued but unpaid interest on, this Note into the securities
offered in the Offering, at a conversion price equal to the purchase price paid
for the Series I Preferred Stock and warrants in the Offering.  To
exercise the conversion rights set forth in Section 5, Payee shall deliver a
written conversion request to the Company stating the dollar amount of principal
and interest to be converted.  In the event that all of the principal
of, and accrued but unpaid interest on, this Note is being converted, Payee
shall also deliver this Note to the Company, which will be marked
“canceled”.  In the event that less than all of the principal of, and
accrued but unpaid interest on, this Note is being converted, then Maker and
Payee will amend Schedule 1 hereto to
reflect the portion of this Note which was converted.

    

    6.           Events of
Default.  The following shall constitute events of default
(“Events of Default”)
hereunder:

    

    (a)           failure
of Maker to make any payment on this Note as and when the same becomes due and
payable in accordance with the terms hereof, if the same has continued for five
(5) days after written notice specifying such default has been delivered to
Maker by Payee;

    

    (b)           failure
of Maker to perform any other covenant contained herein, if the same has
continued for thirty (30) days after written notice specifying such default has
been delivered to Maker by Payee;

    

    (c)           if
Maker makes an assignment for the benefit of creditors, or petitions or applies
for the appointment of a liquidator, receiver or custodian (or similar official)
of it or of any substantial part of its assets, or if Maker commences any
proceeding or case relating to it under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, dissolution or liquidation or
similar law of any jurisdiction, or takes any action to authorize any of the
foregoing; or

    

    (d)           if
any petition or application of the type described in subparagraph (c)
immediately above is filed or if any such proceeding or case described in
subparagraph (c) is commenced against Maker and is not dismissed within sixty
(60) days, or if Maker indicates its approval thereof, consents thereto or
acquiesces therein, or if an order is entered appointing any such liquidator or
receiver or custodian (or similar official), or adjudicating Maker bankrupt or
insolvent, or approving a petition in any such proceeding, or if a decree or
order for relief is entered in respect of Maker in an involuntary case under the
Bankruptcy Code or any other bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation or similar law of
any jurisdiction.

     

    
      
        
        

      

      
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    In the
event any one or more of the Events of Default specified above occurs and is
continuing, the holder of this Note may (i) accelerate the maturity of this Note
with notice to Maker at which time all such amounts shall be immediately due and
payable, (ii) proceed to protect and enforce its rights either by suit in equity
or by action at law, or by other appropriate proceedings, whether for the
specific performance of any covenant or agreement contained in this Note or in
aid of the exercise of any power or right granted by this Note, or (iii) enforce
any other legal or equitable right of the holder of this Note.

    

    7.           Delay or Omission Not
Waiver.  No delay or omission on the part of the holder of this
Note in the exercise of any power, remedy or right under this Note, or under any
other instrument executed pursuant hereto, shall operate as a waiver thereof,
nor shall a single or partial exercise of any such power or right preclude any
other or further exercise thereof or the exercise of any other right or power
hereunder.

    

    8.           Waiver.  Any
term, covenant, agreement or condition of this Note may, with the written
consent of Payee, be amended or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), altered, modified or amended.

    

    9.           Attorneys’ Fees and
Costs.  In the event an Event of Default shall occur, and in
the event that thereafter this Note is placed in the hands of an attorney for
collection, or in the event this Note is collected in whole or in part through
legal proceedings of any nature, then and in any such case Maker promises to pay
all costs of collection, including, but not limited to, reasonable attorneys’
fees and court costs incurred by the holder hereof on account of such
collection, whether or not suit is filed.

    

    10.           Successors and
Assigns.  All of the covenants, stipulations, promises and
agreements in this Note made by Maker and Payee (by virtue of its acceptance of
this Note) shall bind its successors and assigns, whether so expressed or
not.

    

    11.           Maximum Lawful
Rate.  Any provision in this Note or in any other document
executed in connection herewith, or in any other agreement or commitment,
whether written or oral, express or implied, to the contrary notwithstanding,
Payee shall not in any event be entitled to receive or collect, nor shall or may
amounts received hereunder be credited, so that Payee shall be paid, as
interest, a sum greater than the maximum rate of interest permitted by
applicable law.  If any construction of this Note, or any and all
other papers, agreements or commitments, indicates a different right given to
Payee to ask for, demand or receive any larger sum as interest, such is a
mistake in calculation or wording, which this clause shall override and control;
it being the intention of the parties that this Note and all other instruments
relating to this Note shall in all things comply with applicable law, and proper
adjustment shall automatically be made accordingly.  In the event
Payee ever receives, collects or applies as interest, any sum in excess of the
maximum rate of interest permitted by applicable law, such excess amount shall
be applied to the reduction of the unpaid principal balance of this Note in the
inverse order of maturity, and if this Note is paid in full, any remaining
excess shall be paid to Maker.  In determining whether or not the
interest paid or payable, under any specific contingency, exceeds the maximum
rate of interest permitted by applicable law, Maker and Payee shall, the maximum
extent permitted under applicable law (i) characterize any nonprincipal payment
as an expense, fee or premium rather than as interest, (ii) exclude voluntary
prepayments and the effects thereof, and (iii) “spread” the total amount of
interest throughout the entire term of this Note so that the interest rate is
uniform throughout the entire term hereof.

     

    
      
        
        

      

      
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    12.           Governing
Law.  This Note shall be governed by and construed in
accordance with the substantive laws (but not the rules governing conflicts of
laws) of the State of Texas.

    

    13.           Notice.  Any
notice or demand given hereunder by the holder hereof shall be deemed to have
been given and received (i) when actually received by Maker, if delivered in
person or by facsimile transmission, or (ii) if mailed, on the earlier of the
date actually received or (whether ever received or not) three Business Days (as
hereinafter defined) after a letter containing such notice, certified or
registered, with postage prepaid, addressed to Maker, is deposited in the United
States mail.  The address of Maker is 430 N. Carroll Ave, Suite 120,
Southlake, Texas 76092, Attn: Chief Executive Officer, or such other address as
Maker shall advise the holder hereof by certified or registered letter by this
same procedure.

    

    14.           Severability.  In
case any one or more of the provisions contained in this Note shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof.

    

    EXECUTED as of the date set
forth above.

     

    
      
        
          	 	GEOS
      COMMUNICATIONS, INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Christopher
      R. Miltenberger	 
	 	 	

                  Christopher
      R. Miltenberger, President

                	 
	 	 	 	 

        

      

    

     

    
      
        
        

      

      
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    SCHEDULE
I

    

    Schedule of
Drawdowns

     

    
      
        	
                Date of Drawdown

              	
                Amount of Drawdown

              
	
                February
      23, 2010

              	
                $600,000

              
	
                March
      17, 2010

              	
                $700,000

              
	
                April
      19, 2010

              	
                $700,000

              
	
                May
      21, 2010

              	
                $600,000

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      

      

    

     

     

    
      
        
        

      

      
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    EXHIBIT
A

    
Form of
Warrant

    

    NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), AND, ACCORDINGLY, MAY
NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION
OF COUNSEL TO THE TRANSFEROR REASONABLY ACCEPTABLE TO THE COMPANY TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

    

    WARRANT

    

    To
Purchase __________ Shares of Common Stock of

    

    GEOS
COMMUNICATIONS, INC.

    

    THIS WARRANT (the “Warrant”) certifies that, for
value received, ______________ (the “Holder”), is entitled, upon
the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on
or prior to the three-year anniversary of the Initial Exercise Date (the “Termination Date”), but not
thereafter, to subscribe for and purchase from Geos Communications, Inc., a
Washington corporation (the “Company”), up to _________
shares (the “Warrant
Shares”) of common stock, no par value per share, of the Company (the
“Common
Stock”).  The purchase price of each Warrant Share (the “Exercise Price”) under this
Warrant shall be $0.20, subject to adjustment
hereunder.

    

    15.           Title to
Warrant.  Prior to the Termination Date and subject to
compliance with applicable laws and Section 7 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form attached hereto
as Exhibit A
(the “Assignment Form”),
properly endorsed.

    

    16.           Authorization of
Shares.  The Company covenants that all Warrant Shares which
may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges in respect of the issue thereof (other than taxes
in respect of any transfer occurring contemporaneously with such
issue).

     

    
      
        
        

      

      
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    17.           Exercise of
Warrant.

    

    (a)           Exercise
of the purchase rights represented by this Warrant may be made at any time or
times on or after the Initial Exercise Date and on or before the Termination
Date by delivery to the Company (or such other office or agency of the Company
as it may designate by notice in writing to the registered Holder at the address
of such Holder appearing on the books of the Company) of a duly executed
facsimile copy of the Notice of Exercise in the form attached hereto as Exhibit B (the “Notice of Exercise”); provided, however, within three
(3) Business Days of the date said Notice of Exercise is delivered to the
Company, the Holder shall have surrendered this Warrant to the Company, and, if
the Holder has not elected to make a cashless exercise as provided below, the
Company shall have received payment of the aggregate Exercise Price of the
shares thereby purchased by wire transfer or cashier’s check drawn on a United
States bank.  Certificates for Warrant Shares purchased hereunder
shall be delivered to the Holder no later than three (3) Business Days after the
delivery to the Company of the Notice of Exercise, surrender of this Warrant
and, if the Holder has not elected to make a cashless exercise as provided
below, payment of the aggregate Exercise Price as set forth above (“Warrant Share Delivery
Date”).  Prior to the issuance of such Warrant Shares, if the
Company fails to deliver to the Holder a certificate or certificates
representing the Warrant Shares pursuant to this Section 3(a) by the Warrant
Share Delivery Date, then the Holder will have the right to rescind such
exercise.  Nothing herein shall limit a Holder’s right to pursue any
other remedies available to it hereunder, at law or in equity, including,
without limitation, a decree of specific performance and/or injunctive relief
with respect to the Company’s failure to timely deliver certificates
representing Warrant Shares as required pursuant to the terms hereof. “Business Day” shall mean any
day other than: (i) Saturday or Sunday or (ii) a legal holiday on which banks in
the State of Texas are authorized to be closed for business.

    

    (b)           If
this Warrant shall have been exercised in part, then the Company shall, at the
time of delivery of the certificate or certificates representing the Warrant
Shares, deliver to Holder a new Warrant evidencing the rights of Holder to
purchase the unpurchased Warrant Shares called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

    

    (c)           In
the event that the Holder elects to make a cashless exercise as provided above,
the Company shall issue to the Holder the number of Warrant Shares equal to the
result obtained by (i) subtracting B from A, (ii) multiplying the
difference by C, and (iii) dividing the product by A, as set forth in the
following equation:

    

    
      
        
          	
                	
                  X 

                	
                   =    (A - B) x
      C  where:

                
	 	 	                         
      A
	 	
                  X  

                	=     the
      number of Warrant Shares issuable upon a cashless exercise of the Warrant
      pursuant to the provisions of this
Section 3.

        

      

    

     

    
      
        
        

      

      
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                    A

                  	
                     =    the
      Fair Market Value (as defined below) of one share of Common Stock on the
      date of net issuance exercise.

                  
	 	 	                         
      
	 	
                    B 

                  	=     the
      Exercise Price for one Warrant Share under this Warrant.
	 	 	 
	 	
                    C

                  	=     the
      number of Warrant Shares as to which this Warrant is
  exercisable.

          

        

      

    

    

    If the
foregoing calculation results in a negative number, then no Warrant Shares shall
be issued upon a cashless exercise.

    

    For the
purpose of such calculations, the fair market value per share of the Common
Stock shall be (i) if there is a public market for the Common Stock, the dollar
volume-weighted average price for the Common Stock on the Over-The-Counter
Bulletin Board, AMEX, NYSE, the NASDAQ National Market or The NASDAQ SmallCap
Market Principal Market during the period beginning at 9:30:01 a.m., New York
City Time, and ending at 4:00:00 p.m., New York City Time, as reported by
Bloomberg through its “Volume at Price” function or, if the foregoing does not
apply, the dollar volume-weighted average price of such security in the
over-the-counter market on the electronic bulletin board for such security
during the period beginning at 9:30:01 a.m., New York City Time, and ending at
4:00:00 p.m., New York City Time, as reported by Bloomberg, or, if no dollar
volume-weighted average price is reported for such security by Bloomberg for
such hours, the average of the highest closing bid price and the lowest closing
ask price of any of the market makers for such security as reported in the “pink
sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.) for
the twenty (20) trading days prior to the date of determination of fair market
value; or (ii) if there is no public market for the Common Stock, as determined
by the Company’s Board of Directors in good faith.

    

    18.           No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall round such fraction of a share up to the
nearest whole share.

    

    19.           Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form duly executed by the Holder, and the Company
may require, as a condition thereto, the payment of a sum sufficient to
reimburse it for any transfer tax incidental thereto.

    

    20.           Closing of
Books.  The Company will not close its shareholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

    

    21.           Transfer, Division and
Combination.

     

    
      
        
        

      

      
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    (a)           Subject
to compliance with any applicable securities laws and with the provisions of
Sections 1, 4 and 7(e) hereof, this Warrant and all rights hereunder are
transferable, in whole or in part, upon surrender of this Warrant at the
principal office of the Company, together with an Assignment Form completed and
duly executed by the Holder or its agent or attorney and funds sufficient to pay
any transfer taxes payable upon the making of such transfer.  Upon
such surrender and, if required, such payment, the Company shall execute and
deliver a new Warrant or Warrants in the name of the assignee or assignees and
in the denomination or denominations specified in the Assignment Form, and shall
issue to the assignor a new Warrant evidencing the portion of this Warrant not
so assigned, and this Warrant shall promptly be cancelled.  A Warrant,
if properly assigned, may be exercised by a new holder for the purchase of
Warrant Shares without having a new Warrant issued.

    

    (b)           This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section 7(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

    

    (c)           The
Company shall prepare, issue and deliver at its own expense (other than transfer
taxes) the new Warrant or Warrants under this Section 7.

    

    (d)           The
Company agrees to maintain, at its aforesaid office, books for the registration
and the registration of transfer of the Warrants.

    

    (e)           If,
at the time of the surrender of this Warrant in connection with any transfer of
this Warrant, the transfer of this Warrant shall not be registered pursuant to
an effective registration statement under the 1933 Act and under applicable
state securities or blue sky laws, the Company may require, as a condition of
allowing such transfer:  (i) that the Holder or assignee of this
Warrant, as the case may be, furnish to the Company a written opinion of counsel
(which opinion shall be in form, substance and scope customary for opinions of
counsel in comparable transactions) to the effect that such transfer may be made
without registration under the 1933 Act and under applicable state securities or
blue sky laws; (ii) that the Holder or assignee execute and deliver to the
Company an investment representation letter in form and substance reasonably
satisfactory to the Company; and (iii) that the assignee be an “accredited
investor” as defined in Rule 501(a) promulgated under the 1933 Act or a
qualified institutional buyer as defined in Rule 144A(a) under the 1933
Act.

    

    22.           Representations of
Holder

    

    (a)           Acquisition of Warrant for
Personal Account. The Holder represents and warrants that it is acquiring
the Warrant and Warrant Shares solely for its account for investment and not
with a present view toward public sale or distribution of said Warrant or
Warrant Shares or any part thereof and has no intention of selling or
distributing said Warrant Shares or any arrangement or understanding with any
other  person or entity regarding the sale or distribution of said
Warrant except as would not result in a violation of the 1933 Act.

     

    
      
        
        

      

      
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    (b)           Securities Are Not
Registered.

    

    (i)           The
Holder understands that the offer and sale of the Warrant and the Warrant Shares
have not been exercised under the 1933 Act on the basis of specific exemptions
from the registration provisions of the 1933 Act, which exemptions depend upon,
among other things, the bona fide nature of the Holder’s investment intent as
expressed herein. The Holder realizes that the basis for such exemptions may not
be present if, notwithstanding its representations, the Holder has a present
intention of acquiring the securities for a fixed or determinable period in the
future, selling (in connection with a distribution or otherwise), granting any
participation in, or otherwise distributing the securities. The Holder has no
such present intention.

    

    (ii)           The
Holder recognizes that the Warrant and the Warrant Shares must be held
indefinitely unless they are subsequently registered under the 1933 Act or an
exemption from such registration is available. The Holder recognizes that the
Company has no obligation to register the Warrant or the Warrant Shares, or to
comply with any exemption from such registration.

    

    (c)           The
Holder understands and agrees that all certificates evidencing the Warrant
Shares to be issued to the Holder may bear a legend in substantially the
following form:

    

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OF
THE UNITED STATES IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR REGULATION S THEREUNDER,
AND ACCORDINGLY, MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED,
TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE 1933 ACT OR PURSUANT TO AN AVAILABLE EXPEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAW AS EVIDENCED BY
A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

    

    23.           No Rights as Shareholder
until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof.  Upon the surrender of this Warrant, the delivery of
the Notice of Exercise by facsimile copy, and the payment of the aggregate
Exercise Price and the payment of all taxes required to be paid by the Holder
prior to the issuance of the Warrant Shares pursuant to Section 3, if any,
the Warrant Shares so purchased shall be and be deemed to be issued to such
Holder as the record owner of such shares as of the close of business on the
later of the date of such surrender, delivery or payment.

     

    
      
        
        

      

      
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    24.           Loss, Theft, Destruction or
Mutilation of Warrant.  The Company covenants that upon receipt
by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant, shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

    

    25.           Saturdays, Sundays,
Holidays, Etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

    

    26.           Adjustments to Exercise
Price and Number of Warrant Shares.  The number and kind of
securities purchasable upon the exercise of this Warrant and the Exercise Price
shall be subject to adjustment from time to time if the Company
shall:  (i) pay a dividend in shares of Common Stock or make a
distribution in shares of Common Stock to holders of its outstanding Common
Stock; (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares; (iii) combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock; or (iv) issue any shares of its
capital stock in a reclassification of the Common Stock.  Upon the
happening of any of the events set forth in subsections (i)-(iv) of this
Section 12, the number of Warrant Shares purchasable upon exercise of this
Warrant immediately prior thereto shall be adjusted so that the Holder shall be
entitled to receive the kind and number of Warrant Shares or other securities of
the Company which it would have owned or have been entitled to receive had such
Warrant been exercised in advance thereof.  Upon each such adjustment
of the kind and number of Warrant Shares or other securities of the Company
which are purchasable hereunder, the Holder shall thereafter be entitled to
purchase the number of Warrant Shares or other securities resulting from such
adjustment at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of Warrant Shares purchasable pursuant hereto immediately prior to
such adjustment and dividing by the number of Warrant Shares or other securities
of the Company that are purchasable pursuant hereto immediately after such
adjustment.  An adjustment made pursuant to this paragraph shall
become effective immediately after the effective date of such event retroactive
to the record date, if any, for such event.

    

    27.           Reorganization,
Reclassification, Merger, Consolidation or Disposition of
Assets.  In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock), or sell,
transfer or otherwise dispose of its property, assets or business to another
corporation and, pursuant to the terms of such reorganization, reclassification,
merger, consolidation or disposition of assets, shares of common stock of the
successor or acquiring corporation, or any cash, shares of stock or other
securities or property of any nature whatsoever (excluding cash but including
warrants or other subscription or purchase rights) in addition to or in lieu of
common stock of the successor or acquiring corporation (“Other Property”), are to be
received by or distributed to the holders of Common Stock, then the Holder shall
have the right thereafter to receive the number of shares of stock of the
successor or acquiring corporation or of the Company, if it is the surviving
corporation, and Other Property receivable upon or as a result of such
reorganization, reclassification, merger, consolidation or disposition of assets
equal to the number of Warrant Shares for which this Warrant is exercisable
immediately prior to such event. For purposes of this
Section 13, “common stock of the successor or acquiring corporation” shall
include stock of such corporation of any class which is not preferred as to
dividends or assets over any other class of stock of such corporation and which
is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities which are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a
specified date or the happening of a specified event and any warrants or other
rights to subscribe for or purchase any such stock.  The foregoing
provisions of this Section 13 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    28.           Voluntary Adjustment by the
Company.  The Company may at any time during the term of this
Warrant reduce the then current Exercise Price to any amount and for any period
of time deemed appropriate by the Board of Directors of the
Company.

    

    29.           Notice of
Adjustment.  Whenever the number of Warrant Shares or number or
kind of securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
give notice thereof to the Holder, which notice shall state the number of
Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other
securities or property) after such adjustment, setting forth a brief statement
of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made.

    

    30.           Notice of Corporate
Action.  If at any time:

    

    (a)           the
Company shall take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend or other distribution, or any right to
subscribe for or purchase any evidences of its indebtedness, any shares of stock
of any class or any other securities or property, or to receive any other right,
or

    

    (b)           there
shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with, or any sale, transfer or other disposition of all or
substantially all the property, assets or business of the Company to, another
corporation or,

    

    (c)           there
shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company;

    

    then, in
any one or more of such cases, the Company shall give to Holder: (i) at least 20
days’ prior written notice of the date on which a record date shall be selected
for such dividend, distribution or right or for determining rights to vote in
respect of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, liquidation or winding up, and (ii) in the case of
any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, dissolution, liquidation or winding up, at least 20 days’
prior written notice of the date when the same shall take place.  Such
notice in accordance with the foregoing clause also shall specify: (A) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (B) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding
up.  Each such written notice shall be sufficiently given if addressed
to Holder at the last address of Holder appearing on the books of the Company
and delivered in accordance with Section 18(d).

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    31.           Authorized
Shares.  The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Shares a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this
Warrant.  The Company further covenants that its issuance of this
Warrant shall constitute full authority to its officers who are charged with the
duty of executing stock certificates to execute and issue the necessary
certificates for the Warrant Shares upon the exercise of the purchase rights
under this Warrant.  The Company will take all such reasonable action
as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation.

    

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending the Company’s Articles of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company will: (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this
Warrant.

    

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

    

    32.           Miscellaneous.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (a)           This
Warrant shall be governed by and construed in accordance with the laws of the
State of Washington without regard to principles of conflict of
laws.

    

    (b)           The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

    

    (c)           No
course of dealing or any delay or failure to exercise any right hereunder on the
part of Holder shall operate as a waiver of such right or otherwise prejudice
Holder’s rights, powers or remedies, notwithstanding all rights hereunder
terminate on the Termination Date.  If the Company willfully and
knowingly fails to comply with any provision of this Warrant, which results in
any material damages to the Holder, the Company shall pay to Holder such amounts
as shall be sufficient to cover any costs and expenses including, but not
limited to, reasonable attorneys’ fees, including those of appellate
proceedings, incurred by Holder in collecting any amounts due pursuant hereto or
in otherwise enforcing any of its rights, powers or remedies
hereunder.

    

    (d)           All
notices, requests, consents and other communications hereunder shall be in
writing and shall be deemed to have been made when delivered or mailed by first
class mail, postage prepaid, as follows:  (a) if to the Holder,
at the address of the Holder as shown on the registry books maintained by the
Company or the Transfer Agent; and (b) if to the Company, at 430 N. Carroll
Avenue, Suite 120, Southlake, Texas 76092, Attention: Chief Executive
Officer.

    

    (e)           No
provision hereof, in the absence of any affirmative action by Holder to exercise
this Warrant or purchase Warrant Shares, and no enumeration herein of the rights
or privileges of Holder, shall give rise to any liability of Holder for the
purchase price of any Common Shares or as a shareholder of the Company, whether
such liability is asserted by the Company or by creditors of the
Company.

    

    (f)           Holder,
in addition to being entitled to exercise all rights granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Warrant.  The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it
of the provisions of this Warrant and hereby agrees to waive the defense in any
action for specific performance that a remedy at law would be
adequate.

    

    (g)           Subject
to applicable securities laws, this Warrant and the rights and obligations
evidenced hereby shall inure to the benefit of and be binding upon the
successors of the Company and the successors and permitted assigns of
Holder.  The provisions of this Warrant are intended to be for the
benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

    

    (h)           This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and the Holder.

    

    (i)           Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

    (j)           The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

    

    IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly
authorized.

    

    Dated:  ________________,
2010

    
      
        
          	 	 	 
	 	

                  GEOS
      COMMUNICATIONS, INC.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 	 
	 	 	Andrew
      L. Berman	 
	 	 	

                  Chief
      Executive Officer

                	 
	 	 	 	 

        

      

    

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
A

    

    ASSIGNMENT
FORM

    

    

    (To
assign the foregoing warrant, execute this form

    and
supply required information.

    Do not
use this form to exercise the warrant.)

    

    

    

    FOR VALUE
RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to ______________________________ whose address is
_______________________________________________________________.

    

    

    

    Dated:  ______________,
_______

    

    

    
      
        
          
            
              
                
                  	 
      	
                          Holder’s
      Signature:  

                        	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                          Holder’s
      Address:  

                        	 
      	 
      
	 	 	 	 
	 	 	 	 

                

              

            

          

        

      

    

    

    Signature
Guaranteed: ___________________________________________________

    

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.

    

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
B

    

    NOTICE OF
EXERCISE

    

    To:           Geos
Communications, Inc.

    

    The
undersigned, the Holder of the attached Warrant, hereby irrevocably elects to
exercise the purchase right represented by the Warrant for, and to purchase
thereunder, _______ Warrant Shares (as such terms are defined in the Warrant,
dated ____________, 2010, issued by Geos Communications, Inc. to
_________________).

    

    
      	
               
      

            	
              �

            	
              (Cash
      Exercise)  The undersigned has included with this Form of
      Subscription the purchase price of such shares in
  full.

            

    

    
      	
               
      

            	
              �

            	
              (Cashless
      Exercise)  The undersigned elects to purchase such shares
      pursuant to the net exercise provisions of such
  Warrant.

            

    

    

    The
undersigned hereby requests that the Certificate(s) for such securities be
issued in the name(s) and delivered to the address(es) as follows:

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              

                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  	 
      	
                                                                                                                                                          Name:    

                                                                                                                                                        	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                                          Address:      

                                                                                                                                                        	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                                          Social
      Security Number:    

                                                                                                                                                        	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                                          Deliver
      to:     

                                                                                                                                                        	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                                          Address:      

                                                                                                                                                        	 
      	 
      	 
      	 
      

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

                      

    If the
foregoing Subscription evidences an exercise of the Warrant to purchase fewer
than all of the Warrant Shares (or other securities or property) to which the
undersigned is entitled under such Warrant, please issue a new Warrant, of like
tenor, for the remaining portion of the Warrant (or other securities or
property) in the name(s), and deliver the same to the address(es) as
follows:

     

    
      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	
                                            Name: 

                                          	 
      	 	 
      	 
	 
      	 
      	 
      	 	 
      	 
	 
      	
                                            Address:   

                                          	 
      	 	 
      	 
	 	 	 	 	 	 
	 	Dated: 	 	,
      20	 	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  	 	 	 	 	 	 
	 
      	
                                                                                                                          (Name
      of Holder)

                                                                                                                        	 
      	 	 
      	 
	 
      	 
      	 
      	 	 
      	 
	 	 	 	 	 	 
	 
      	
                                                                                                                          (Signature
      of Holder or Authorized Signatory)  

                                                                                                                        	 
      	(SS
      or TIN of Holder)	 
      	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Signature
      Guaranteed:	 	 	 	 

                                                                                                                

                                                                                                                 

                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                    

                                                                                                                  

                                                                                                                  
                                                                                                                    B-1Unassociated Document

    EXHIBIT
10.1

    

    

    EMPLOYMENT
AGREEMENT

    

    This
Employment Agreement (thereafter referred as "Agreement") is made effective on
June 1, 2010, by and between Savoy Energy Corporation, a Nevada corporation
(hereinafter referred to as "Savoy", "Company," or "Employer"), and Arthur B.
Bertagnolli (hereinafter referred to as "Executive").  

    

    RECITALS

    

    A.        Savoy
is engaged in the business of the up-stream oil and gas industry;
and

    

    B.        Executive
is to be employed by Savoy as its President and Chief Executive Officer,
and

    

    C.        Savoy
desires to engage Executive as its President and Chief Executive Officer;
and

    

    D.        Executive
is desirous of accepting employment in such a position pursuant to the terms and
conditions, and for the consideration, hereinafter set forth;

    

    NOW THEREFORE, for and in
consideration of the mutual promises, covenants and obligations contained
herein, Savoy and Executive agree as follows.

    

    AGREEMENT

    

    ARTICLE
1. EMPLOYMENT AND DUTIES

    

    1.1                 Employment; Effective
Date

    

    Effective
as of June 1, 2010
(the "Effective Date").

    

    1.2                 Position

    

    Savoy
hereby agrees to employ Executive, and Executive hereby accepts employment as
Savoy President and Chief Executive Officer upon the terms and conditions
hereinafter set forth, each Party expressly revoking any and all prior
employment agreements to which the Parties may be mutually subject.  As
President and Chief Executive Officer, Executive shall serve Savoy and its
affiliates on a full-time basis subject to the supervision and control of the
Board of Directors (hereinafter referred to as the "Board"). Executive hereby
agrees to serve Savoy in such capacity for the period commencing on the
Effective Date and ending on the Termination of this agreement pursuant to
Section 2.1 below.

     

    1.3                 Services of
Executive

    

    During
the Term of this Agreement (as hereinafter defined), the Executive shall perform
the services hereunder (i) for the compensation set forth herein and without
additional compensation unless otherwise agreed to between Savoy and the
Executive, (ii) in such employment capacity for Savoy or any subsidiary or
affiliate thereof to which he may be directed by the Board of Savoy or of any
such subsidiary or affiliate, or (iii) as a member of the Board of Savoy or of
any subsidiary or affiliate thereof if so elected by the shareholders of Savoy
or any such subsidiary or affiliate.  In that regard, Savoy intends to
appoint the Executive to its Board of Directors and as a director of each of its
subsidiaries which is involved in the service operations and which report
directly to the Executive.  Savoy may also utilize the Executive in any
other work or activity in furtherance of the business of Savoy in which his
talents may be applied in a manner commensurate with his position, training,
knowledge, skills and abilities.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    1.4                 Duties and
Services

    

    Executive
agrees to serve in the position referred to in Section 1.2 and to perform
diligently and to the best of his abilities the duties and services appertaining
to such offices. Executive shall also perform such other duties and services
appropriate to such position which the parties mutually may agree upon from time
to time.  In addition, Executive agrees to provide such other and unrelated
services and duties as may be mutually agreed upon by Savoy and
Executive.

    

    1.5                 Other
Interests

    

    Executive
agrees, during the period of his employment by Savoy, to devote substantially
all of his business time, energy and best efforts to the business and affairs of
Savoy and its affiliates and not to engage, directly or indirectly, in any other
business or businesses, whether or not similar to that of Savoy, except with the
consent of the Board of Directors of Savoy (the "Board").  The foregoing
notwithstanding, the parties recognize and agree that Executive may engage in
other business activities that do not conflict with the business and affairs of
Savoy or interfere with Executive's performance of his duties hereunder, which
shall be at the sole determination of the Board.

    

    1.6                 Duty of
Loyalty

       

    Executive
acknowledges and agrees that Executive owes a fiduciary duty of loyalty to act
at all times in the best interests of Savoy.  In keeping with such duty,
Executive shall make full disclosure to Savoy of all business opportunities
pertaining to Savoy's business and shall not appropriate for Executive's own
benefit business opportunities concerning Savoy's business.

    

    ARTICLE
2. TERM AND TERMINATION OF EMPLOYMENT

    

    2.1                 Term

    

    Unless
terminated at an earlier date in accordance with Section 2.2 of this
Agreement, the initial term of Executive's employment hereunder shall be for a
period of two (2) years, commencing on the Effective Date ("Initial Term").
 Thereafter, the term of this Agreement shall be automatically extended for
successive one year periods (each an "Additional Term") unless either party
objects to such extension by written notice to the other party at least one (1)
year prior to end of the Initial Term or any Additional Term.  The Initial
Term and any Additional Terms shall be referred to collectively as the "Term."
 Except for termination pursuant to Section 2.2 below, the Company
acknowledges and agrees that it will not terminate this Agreement during the
Initial Term.

    

    2.2                  Savoy's Right to
Terminate

    

    Notwithstanding
the provisions of paragraph 2.1, Savoy shall have the right to terminate
Executive's employment under this Agreement at any time for the following
reasons:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (i)           upon
Executive’s death;

    

    (ii)           upon
the inability of Executive to perform the essential duties of his position by
reason of illness, physical or mental disability or other incapacity for a
period of one (1) calendar year or any shorter periods aggregating one (1) year
in any two-year period ("Disability"); or

    

    (iii)           for
"Cause," which shall mean Executive (A) has engaged in gross negligence or
willful misconduct in the performance of the duties required of him hereunder,
(B) has willfully refused without proper legal reason to perform the duties and
responsibilities required of him hereunder, (C) has breached any material
provision of this Agreement or any material corporate policy maintained and
established by Savoy that is of general applicability to the Company's employees
and such breach is not cured within thirty (30) days from the date of receipt of
written notice from Employer by Executive regarding the alleged breach, (D) has
willfully engaged in conduct that he knows or should know is materially
injurious to Savoy or any of its affiliates, or (E) has been convicted of, or
pleaded no contest to any felony, provided, however, that Executive's employment
may be terminated for Cause only if such termination is approved by at least a
majority of a quorum (as defined in Savoy's By-Laws) of the members of the Board
after Executive has been given written notice by Savoy of the specific reason
for such termination and an opportunity for Executive, together with his
counsel, to be heard before the Board.

    

    (iv)           Termination
without “cause” at any time, provided the Company provides thirty (30) days
notice or payment in lieu regardless of the age of the contract, provided,
however, that Executive’s employment may be terminated without Cause only if
such termination is approved by at least a majority of a quorum (as defined in
Savoy’s by-Laws) of the members of the Board after Executive has been given
written notice by Savoy regarding termination and an opportunity for Executive,
together with his counsel, to be heard before the Board.

    

    2.3                 Key Employee's Rights to
Terminate

    

    Notwithstanding
the provisions of Sections 2.1 and 2.2, Executive shall have the right to
terminate his employment under this Agreement for any of the following
reasons:

    

    (i)           for
"Good Reason," which shall mean, within sixty (60) days of and in connection
with or based upon (A) a material breach by Savoy of any material provision of
this Agreement, (B) a significant reduction in the nature or scope of
Executive's duties and responsibilities, (C) the assignment to Executive of
duties and responsibilities that are materially inconsistent with the position
referred to in Section 1.1, or (D) any requirement that Executive relocate
to a site more than fifty (50) miles from his present business address (unless
such move is within twenty-five (25) miles of Executive's present home address)
provided, however, that prior to Executive's termination for Good Reason,
Executive must give written notice to Savoy of any such breach, reduction,
assignment or requirement and such breach, assignment or requirement must remain
uncorrected for ten (10) days following such written notice; or

    

    (ii)           at
any time for any reason whatsoever, in the sole discretion of Executive,
provided that the Executive gives Savoy ninety (90) days written
notice.

    

    2.4                 Deemed
Resignations

    

    Any
termination of Executive's employment shall constitute an automatic resignation
of Executive as an officer of Savoy and each affiliate of Savoy, and an
automatic resignation of Executive from the Board (if applicable) and from the
board of directors of any affiliate of Savoy.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2.5                 Involuntary Termination
After "Change of Control."

      

     In
the event of a "Change of Control" as defined below, Savoy shall have the right
to terminate Executive's employment and this Agreement at will.  Should
Savoy exercise this option to involuntarily terminate Executive during the
pendency of this Agreement for any reason other than as specified in
Section 2.2(iii) within twelve (12) months following a defined Change of
Control, Executive shall be entitled to an immediate cash payment equal in
amount to twelve (12) months of compensation based upon a monthly proration of
his Form W-2 earning from Savoy in the year preceding such termination and (ii)
the fair value of eighteen months of Executive's then current fringe benefits
provided by Company..

    

    In the
event there is a Change of Control during the pendency of this Agreement, and
Savoy gives Executive notice of intent to not thereafter renew the Agreement for
a successive term, should Executive be involuntarily terminated from employment
after expiration of the Agreement and within twelve (12) months following the
Change of Control, Executive shall be entitled to an immediate cash payment in
the amount set forth in the preceding paragraph.  The contractual right to
such payment is expressly agreed to be a covenant which shall survive expiration
of this Agreement, and be enforceable hereunder.

    

    For
purposes of this Agreement, a "Change of Control" shall be deemed to have taken
place if: (i) a third person, including a "group" as determined in accordance
with Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the
beneficial owner of shares of Savoy having more than fifty percent (50%) of the
total number of votes that may be cast for the election of directors of Savoy;
or (ii) as a result of, or in connection with, any cash tender or exchange
offer, merger or other business combination, sale of assets or contested
election, or any combination of the foregoing transactions
(a "Transaction"), the persons who were directors of Savoy before the
Transaction shall cease to constitute a majority of the Board of Savoy or any
successor to Savoy.

    

    ARTICLE
3. COMPENSATION AND BENEFITS

    

    3.1                 Base
Salary

    

    During
the first twelve month period of the initial term of this Agreement, Executive
shall receive a minimum monthly base salary of $15,000 ("Base Salary").
 The Base Salary shall be reviewed and increased by the Board (or a
committee or designee thereof) after the first twelve (12) months of employment.
Thereafter, Executive's monthly Base Salary shall be reviewed by the Board (or a
committee or designee thereof) on an annual basis from the Effective Date (or
more frequently, should the Board decide to do so), and, in the sole discretion
of the Board (or such committee or designee thereof), such annual Base Salary
may be increased, but not decreased, effective as of any date determined by the
Board. Executive's monthly Base Salary shall be paid in equal installments, less
amounts for withholding of taxes and/or others amounts required by statutes, and
consistent with Savoy's standard policy regarding payment of compensation to
employees but no less frequently than semi-monthly.

    

    3.2                 Bonuses and
Commissions

    

    Executive
shall be eligible to participate in Savoy's Bonus Plan and Savoy's Long Term
Incentive Compensation Program as may be adopted and approved from time to time
by the Board (or a committee or designee thereof).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    3.3                 Issuance of Restricted
Stock

      

    (i)           As
a non-cash equity component to Executive’s compensation, during the Term of this
Agreement, Executive shall receive annual grants of 60,000 shares from the
Company’s Stock Option Plan, which shall vest in increments of 5,000 shares of
common stock per month.

    

    (ii)           Except
for termination of this Agreement for cause pursuant to Section 2.2(iii),
any termination of this Agreement by Company shall cause the immediate vesting
of any shares of common stock that otherwise would have been issued by Company
to Executive during the Term of this agreement.

    

    Further
restricted stock allocations awards will be based on a combination of the
performance of Executive and the Company based on criteria and milestones
established by the board of directors (or management compensation committee, as
applicable).

    

    3.4                 Other
Perquisites

    

    During
his employment hereunder, Executive shall be afforded the following benefits as
incidences of his employment.

    

    (i)           Vacation:  Executive
shall be entitled to ten (10) business days of paid vacation for each calendar
year of employment. Such vacation must be taken at a time mutually convenient to
Company and Executive.  All vacation days must be taken during the year it
is earned and cannot be carried forward into a future year without the written
consent of Company, which will not be unreasonably withheld.

    

    (ii)           Personal Leave:
 Executive shall be entitled to five (5) days paid time each calendar year.
 Unused personal leave benefits cannot be carried forward into a future
year without the written consent of Savoy.  The following rule shall
apply:

    

    If
Executive is unable to work for more than five (5) days for reasons unrelated to
the Company’s business, and if Executive's unused personal leave is insufficient
for such period, the Executive's unused vacation time shall be applied to such
absence.

     

    (iii)           Holidays:  Executive
shall be entitled to holidays with pay during each calendar year in accordance
with Savoy's posted holiday schedule.

    

    (iv)           Other Company Benefits:
 Executive and, to the extent applicable, Executive's spouse, dependents
and beneficiaries, shall be allowed to participate in all benefits, plan, and
programs, including improvements or modifications of the same, which are now, or
may hereafter be, available to other employees of Savoy.  Such benefits,
plans and programs may include, without limitation, any profit sharing, thrift
plan, life insurance, disability insurance, pension plan (company supported),
supplemental retirement plan, vacation and sick leave plan, and the like which
may be maintained by the Company.  The Company shall not, however, by
reason of this paragraph be obligated to institute, maintain, or refrain from
changing, amending or discontinuing, any such benefit plan or program, so long
as such changes are similarly applicable to employees generally.

    

    3.5                 Business and Entertainment
Expenses

    

    Subject
to Savoy's standard policies and procedures with respect to reimbursement as
applied to its employees generally, Savoy shall promptly reimburse Executive
for, or pay on behalf of Executive, reasonable and appropriate expenses incurred
by Executive for business related purposes, including travel, dues and fees to
industry and professional organizations, subscriptions to professional and
business publications, costs of business-related entertainment and business
development, and mobile phone expenses.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    ARTICLE
4.  DUTY OF LOYALTY

    

    During
the term of this Agreement, Executive will not, without the prior written
consent of Company, engage in any activity directly competitive with the
business or welfare of Company, whether alone, as a partner, or as an officer,
director, employee, consultant, or holder of more than one percent of the
capital stock of any other corporation.

    

    ARTICLE 5.  CONFIDENTIAL
INFORMATION

    

    5.1                  Trade
Secrets of Company

    

    Executive,
by reason of his prior employment with the Company and during the term of this
Agreement, has and will develop, have access to and become acquainted with
various trade secrets which are owned by Company and which are regularly used in
the operation of its business. Executive will not disclose such trade secrets,
directly or indirectly, or use them in any way, either during the term of this
Agreement or at any time thereafter, except as required in the course of his
employment by Company. All files, contracts, manuals, reports, letters, forms,
documents, notes, notebooks, lists, records, documents, customer lists, vendor
lists, purchase information, designs, computer programs and similar items and
information relating to the businesses of such entities, whether prepared by
Executive or otherwise and whether now existing or prepared at a future time,
coming into his possession will remain the exclusive property of
Company.

    

    5.2            
       Confidential
Data of Customers of Company

    

    Executive,
in the course of his duties, will have access to and become acquainted with
financial, accounting, statistical and personal data of customers of Company and
of its and their affiliates. All such data is confidential and will not be
disclosed, directly or indirectly, or used by Executive in any way, either
during the term of this Agreement (except as required in the course of
Executive’s employment by Company) or at any time thereafter.

    

    5.3        
           Intellectual
Properties

    

    Executive will sign a Confidentiality
Agreement (the “Confidentiality Agreement”) with the Company prior to or on the
effective date of this Agreement.

    
    

    
      5.4         
          Continuing
Effect

    

    

    The
provisions of this Section 5 will remain in effect for a period of one (1) year
after the effective date of termination of Executive’s employment with
Company.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    ARTICLE 6.  NONCOMPETITION AND
SOLICITATION

    

    6.1                  Prohibited
Activities

    

    The
Executive hereby covenants and agrees that during the Term and for one (1) year
immediately following the termination by the Company or the Executive, as
applicable, of the Executive's employment, he shall not, without the prior
written consent of the Company’s board of directors, at any time, directly or
indirectly, on his own behalf or on behalf of any person:

    

    (a)           directly
or indirectly own, manage, operate, control, be employed by, participate in,
provide consulting services to, or be connected or associated in any manner with
the ownership, management, operation or control of any business which is in
competition with the Company in the marketing of products which are
substantially similar to the products distributed by the Company in any state of
the United States or in any foreign country in which the Company is engaged in
business during the Term in the case of acts committed during the Term or in any
state of the United States or in any foreign country in which the Company is
engaged in business at the time of termination of Executive's employment in the
case of acts committed after the Term for as long as the Company continues to
conduct such business.  In the case of an entity which distributes
multiple product lines, the Executive shall be deemed to be in violation of this
provision only if he is directly involved in the division of such entity which
is engaged in the marketing and/or distribution of products which are
substantially similar to the products marketed and/or distributed by the
Company; provided, however;
that nothing in this Employment Agreement shall preclude the Executive
from owning less than five percent of any class of publicly traded equity of any
entity.

    

    (b)           solicit
or take any action to cause the solicitation of, or recommend that, any
supplier, client, customer, contractor, vendor, agent or consultant of the
Company or any of its subsidiaries or other person having business relations
with the Company, discontinue business or cease such relationship, in whole or
in part, with the Company or any of its subsidiaries,

     

    (c)           employ
any person employed by the Company or any of its subsidiaries at the time of or
during the 12 months preceding, such termination of the Executive's employment
with the Company.

     

    (d)           solicit
for employment (other than through unaffiliated employment recruiting or
placement firms or services who are not specifically directed to solicit
employees of the Company or provided with the names of any such employees) any
person employed by the Company or any of its subsidiaries at the time of, or
during the 12 months preceding such termination of the Executive's employment
with the Company, or otherwise encourage or entice any such Person to leave such
employment.

    
    

    
      6.2                  Savings
Provision

    

     

    The
Executive acknowledges and agrees that:

    

    (a)           the
restrictive covenants set forth in this Section (the “Restrictive
Covenants") are reasonable and valid in geographical and temporal scope and in
all other respects, and

     

    (b)           it
is the intention of the parties hereto that the Restrictive Covenants be
enforceable to the fullest extent permitted by applicable law. Therefore, if any
court determines that any of the Restrictive Covenants, or any part thereof, is
invalid or unenforceable, the remainder of the Restrictive Covenants shall not
thereby be affected and shall be given full force and effect, without regard to
the invalid or unenforceable parts and such court shall have the power to modify
such Restrictive Covenant, or any part thereof, and, in its modified form, such
Restrictive Covenants shall then be valid and enforceable.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    ARTICLE
7. MISCELLANEOUS

    

    7.1                 Notices

    

    All
notices required or permitted under this Agreement shall be in writing and shall
be deemed delivered when delivered in person or deposited in the United States
mail, postage paid, addressed as follows:

    

    
      	
              If
      to the Company

            	 
      
	
              To:

            	
              Savoy
      Energy, Inc.

              11200
      Westheimer, Ste. 900

              Houston,
      Texas 77042

            
	 
      	 
      
	
              If
      to Executive

            	 
      
	
              To:

            	
              Arthur
      B. Bertagnolli

              1822
      Shoreline Dr.

              Missouri
      City, Texas 77459

            

    

     

    Such
addresses may be changed from time to time by either party providing written
notice in the manner set forth above.

    

    7.2                 Applicable
Law

    

    This
agreement is entered into under, and shall be governed for all purposes by, the
laws of the State of Texas.

     

    7.3                 No
Waiver

    

    No
failure by either party hereto at any time to give notice of any breach by the
other party of or to require compliance with, any condition or provision of this
Agreement shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

    

    7.4                 Severability

    

    If a
court of competent jurisdiction determines that any provision of this Agreement
is invalid or unenforceable, then the invalidity or unenforceability of that
provision shall not affect the validity or enforceability of any other provision
of this Agreement, and all other provisions shall remain in full force and
effect.

    

    7.5                 Counterparts

    

    This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original, but all of which together will constitute one and the
same Agreement.

    

    7.6                 Withholding of Taxes and
Other Employee Deductions

    

    The
Company may withhold from any benefits and payments made pursuant to this
Agreement all federal, state, city and taxes as may be required pursuant to any
law or governmental regulation or ruling and all other normal employee
deductions made with respect to Savoy's employees generally.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    7.7                 Headings

    

    The
paragraph headings have been inserted for purposes of convenience and shall not
be used for interpretive purposes.

    

    7.8                 Gender and
Plurals

    

    Wherever
the context so requires, the masculine gender includes the feminine or neuter,
and the singular number includes plural and conversely.

    

    7.9                 Affiliate

    

    As used
in this Agreement, the term "affiliate" shall mean any entity which owns or
controls, is owned or controlled by, or is under common ownership or control
with Savoy.

    

    7.10               Assignment

    

    This
Agreement shall be binding upon and inure to the benefit of Savoy and any
successor of the Company, by merger or otherwise.  Except as provided in
the preceding sentence, this Agreement, and the rights and obligations of the
parties hereunder, are personal and neither this Agreement, nor any right,
benefit, or obligation of either party hereto, shall be subject to voluntary or
involuntary assignment, alienation or transfer, whether by operation of law or
otherwise, without the prior written consent of the other party.

    

    7.11               Term

    

    Other
than the provisions of this Agreement which specifically extend beyond the the
term of employment stated in Section 2.1, this Agreement shall be
co-terminus with such term.  Termination shall not affect any right or
obligation of any party that is accrued or vested prior to such
termination.

    

    7.12               Entire
Agreement

    

    Except as
specifically referenced herein, this Agreement constitutes the entire agreement
of the parties with regard to the subject matter hereof, and contains all the
covenants, promises, representations, warranties and agreements between the
parties with respect to employment of Executive by Savoy.  Without limiting
the scope of the preceding sentence, all understandings and agreements preceding
the date of execution of this Agreement and relating to the subject matter
hereof are hereby null and void and of no further force and effect.  Any
modifications or amendments will be made in writing and signed by both parties
and will form part of this agreement.

    

    [Signature
page follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on July 27, 2010, to be effective as
of the Effective Date.

    

     

    EMPLOYER:

     

    Savoy
Energy Corporation

     

     

    By:   /s/
Charles Jacobus

      
        

      

    

    Charles
Jacobus, Compensation Committee Chairman

    

     

    EXECUTIVE:

     

    /s/
Arthur B. Bertagnolli

      
        

      

    

    Arthur B.
Bertagnolli

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