Document:

meil_ex41.htm

Exhibit 4.1

 

Form of

Methes Energies International Ltd.

PURCHASE WARRANT

Issued to:

[________________________]

Exercisable to Purchase

[_________] Units

Of

METHES ENERGIES INTERNATIONAL LTD.

Void after February 19, 2018

THIS WARRANT HAS NOT BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933

AND IS NOT TRANSFERABLE

EXCEPT AS PROVIDED HEREIN

 

 

  

  

  

 

This is to certify that, for value received and subject to the terms and conditions set forth below, the Warrantholder (hereinafter defined) is entitled to purchase, and the Company (hereinafter defined) promises and agrees to sell and issue to the Warrantholder, at any time on or after the first anniversary of the Issue Date and on or before the fifth anniversary of the Issue Date, up to [___________] Units (hereinafter defined) at the Exercise Price (hereinafter defined).

This Warrant Certificate is issued subject to the following terms and conditions:

1. Definitions of Certain Terms. Except as may be otherwise clearly required by the context, the following terms have the following meanings:

 

(a) "Act" means the Securities Act of 1933, as amended.

 

(b) "Additional Placement Agent" means any placement agent listed in the Placement Agent Agreement other than the Lead Placement Agent.

 

(c) "Cashless Exercise" means an exercise of Warrants in which, in lieu of payment of the Exercise Price, the Warrantholder elects to receive a lesser number of Securities such that the value of the Securities that such Warrantholder would otherwise have been entitled to receive but has agreed not to receive, as determined by the closing price of such Securities on the date of exercise or, if such date is not a trading day, on the next prior trading day, is equal to the Exercise Price with respect to such exercise.  A Warrantholder may only elect a Cashless Exercise if the Securities issuable by the Company on such exercise are publicly traded securities.

 

(d) "Class A Warrant" means a redeemable Class A warrant to purchase one share of Common Stock at an exercise price of $7.50, as defined in the Warrant Agreement.

 

(e) "Class B Warrant" means a redeemable Class B warrant to purchase one share of Common Stock at an exercise price of $10.00, as defined in the Warrant Agreement.

 

(f) "Commission" means the Securities and Exchange Commission.

 

(g) "Common Stock" means the common stock, par value $0.001 per share, of the Company.

 

(h) "Company" means Methes Energies International Ltd., a Nevada corporation.

 

(i) "Exercise Price" means the price at which the Warrantholder may purchase one Unit upon exercise of Warrants as determined from time to time pursuant to the provisions hereof.  The initial Exercise Price is $4.20 per Unit.

 

(j) “Individual Transferees” mean the individuals who are a partner, officer or other representative of the Lead Placement Agent or any Additional Placement Agent.

 

(k) "Issue Date" means February 19, 2013.

 

(l) "Lead Placement Agent" means Paulson Investment Company, Inc.

 

(m) "Memorandum" means the offering materials described in the Placement Agent Agreement.

 

(n) "Offering" means the private offering of Units made pursuant to the Memorandum and the Placement Agent Agreement.

 

 

  

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(o) "Placement Agent Agreement" means that certain Amended and Restated Placement Agent Agreement, dated January 11, 2013, as amended by Amendment No. 1 to the Amended and Restated Placement Agent Agreement, dated January 31, 2013, among Methes Energies International Ltd., Paulson Investment Company, Inc., ViewTrade Securities, Inc., Finance 500, Inc. and Barrett & Company.

 

(p) "Registration Period" means the period described in Section 6(a) of this Warrant.

 

(q) "Rules and Regulations" means the rules and regulations of the Commission adopted under the Act.

 

(r) "Securities" means the securities obtained or obtainable upon exercise of the Warrant or securities obtained or obtainable upon exercise, exchange, or conversion of such securities.

 

(s) "Unit" means one share of Common Stock, one Class A Warrant and one Class B Warrant.

 

(t) "Unit Warrants" means the Class A Warrants and the Class B warrants.

 

(u) "Warrant" means the warrant evidenced by this certificate, any similar certificate issued in connection with the Offering, or any certificate obtained upon transfer or partial exercise of the Warrant evidenced by any such certificate.

 

(v) "Warrant Agreement" means that certain Warrant Agreement, dated as of October 12, 2012, as amended on February 6, 2013, by and between the Company and Quicksilver Stock Transfer, LLC relating to the issuance of Unit Warrants.

 

(w) "Warrant Certificate" means a certificate evidencing the Warrant.

 

(x) "Warrantholder" means a record holder of the Warrant or Securities. The initial Warrantholder is [________________].

 

2. Exercise of Warrant. All or any part of the Warrant represented by this Warrant Certificate may be exercised commencing on the first anniversary of the Issue Date and ending at 5:00 p.m. Pacific Time on the fifth anniversary of the Issue Date (the "Expiration Date") by surrendering this Warrant Certificate, together with appropriate instructions, duly executed by the Warrantholder or by its duly authorized attorney, at the office of the Company, 3651 Lindell Road, Suite D- 272, Las Vegas, Nevada, 89103; or at such other office or agency as the Company may designate; provided, however, that the Warrant may not be exercised for Class A Warrants or Class B Warrants after their expiration on October 12, 2017. The date on which such instructions are received by the Company shall be the date of exercise. If the Warrantholder has elected a Cashless Exercise, such instructions shall so state. Subject to the provisions below, upon receipt of notice of exercise, the Company shall immediately instruct its transfer agent to prepare certificates for the Securities to be received by the Warrantholder upon completion of the Warrant exercise. When such certificates are prepared, the Company shall notify the Warrantholder and deliver such certificates to the Warrantholder, or as per the Warrantholder's instructions, immediately upon payment in full by the Warrantholder, in lawful money of the United States, of the Exercise Price payable with respect to the Securities being purchased, or, in the case of a Cashless Exercise, upon deemed surrender of Securities equal to the exercise price. If the Warrantholder ·shall represent and warrant that all applicable registration and prospectus delivery requirements for their sale have been complied with upon sale of the Securities received upon exercise of the Warrant, such certificates shall not bear a legend with respect to the Act.

 

If fewer than all the Securities purchasable under the Warrant are purchased, the Company will, upon such partial exercise, execute and deliver to the Warrantholder a new Warrant Certificate (dated the date hereof), in form and tenor similar to this Warrant Certificate, evidencing that portion of the Warrant not exercised. The Securities to be obtained on exercise of the Warrant will be deemed to have been issued, and any person exercising the Warrant will be deemed to have become a holder of record of those Securities, as of the date of the payment of the Exercise Price.

 

Notwithstanding the foregoing, in no event shall such Securities be issued, and the Company is authorized to refuse to honor the exercise of the Warrant, if such exercise would result in the opinion of the Company's Board of Directors, upon advice of counsel, in the violation of any law; and provided further that, if the Warrant is exercisable solely for Securities listed on a securities exchange or for which there are at least three independent market makers, the Company may elect to redeem the Warrant submitted for exercise for a price equal to the difference between the aggregate low asked price, or closing price, as the case may be, of the Securities for which the Warrant is exercisable on the date of exercise and the Exercise Price; in the event of such redemption, the Company will pay to the holder of the Warrant the above-described redemption price in cash within 10 business days after receipt of notice of exercise.

 

 

  

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3. Adjustments in Certain Events. The number, class, and price of Securities for which this Warrant Certificate may be exercised are subject to adjustment from time to time upon the happening of certain events as follows:

 

(a) If the outstanding shares of the Company's Common Stock are divided into a greater number of shares or a dividend in stock is paid on the Common Stock, the number of shares of Common Stock and the number of Unit Warrants for which the Warrant is then exercisable will be proportionately increased and the Exercise Price will be proportionately reduced; and, conversely, if the outstanding shares of Common Stock are combined into a smaller number of shares of Common Stock, the number of shares of Common Stock and the number of Unit Warrants for which the Warrant is then exercisable will be proportionately reduced and the Exercise Price and the number of Unit Warrants will be proportionately increased. The increases and reductions provided for in this Section 3(a) will be made with the intent and, as nearly as practicable, the effect that neither the percentage of the total equity of the Company obtainable on exercise of the Warrants nor the price payable for such percentage upon such exercise will be affected by any event described in this Section 3(a).

 

(b) In case of any change in the Common Stock through merger, consolidation, reclassification, reorganization, partial or complete liquidation, purchase of substantially all the assets of the Company, or other change in the capital structure of the Company, then, as a condition of such change, lawful and adequate provision will be made so that the holder of this Warrant Certificate will have the right thereafter to receive upon the exercise of the Warrant the kind and amount of shares of stock or other securities or property to which he would have been entitled if, immediately prior to such event, he had held the number of shares of Common Stock and the number of Unit Warrants obtainable upon the exercise of the Warrant. In any such case, appropriate adjustment will be made in the application of the provisions set forth herein with respect to the rights and interest thereafter of the Warrantholder, to the end that the provisions set forth herein will thereafter be applicable, as nearly as reasonably may be, in relation to any shares of stock or other securities or property thereafter deliverable upon the exercise of the Warrant. The Company will not permit any change in its capital structure to occur unless the issuer of the shares of stock or other securities to be received by the holder of this Warrant Certificate, if not the Company, agrees to be bound by and comply with the provisions of this Warrant Certificate.

 

(c) When any adjustment is required to be made in the number of shares of Common Stock, Unit Warrants, other securities, or the property purchasable upon exercise of the Warrant, the Company will promptly determine the new number of such shares or other securities or property purchasable upon exercise of the Warrant and (i) prepare and retain on file a statement describing in reasonable detail the method used in arriving at the new number of such shares or other securities or property purchasable upon exercise of the Warrant and (ii) cause a copy of such statement to be mailed to the Warrantholder within thirty (30) days after the date of the event giving rise to the adjustment.

 

(d) No fractional shares of Common Stock or other Securities will be issued in connection with the exercise of the Warrant, but the Company will pay, in lieu of fractional shares, a cash payment therefor on the basis of the mean between the bid and asked prices of the Common Stock in the over-the-counter market or the last sale price of the Common Stock on the principal exchange or other trading facility on which the Common Stock is traded on the day immediately prior to exercise.

 

(e) If securities of the Company or securities of any subsidiary of the Company are distributed pro rata to holders of Common Stock, such number of securities will be distributed to the Warrantholder or its assignee upon exercise of its rights hereunder as such Warrantholder or assignee would have been entitled to if this Warrant Certificate had been exercised prior to the record date for such distribution. The provisions with respect to adjustment of the Common Stock provided in this Section 3 will also apply to the securities to which the Warrantholder or its assignee is entitled under this Section 3(e).

 

(f) Notwithstanding anything herein to the contrary, there will be no adjustment made hereunder on account of the sale by the Company of the Common Stock or any other Securities purchasable upon exercise of the Warrant.

 

(g) If, immediately prior to any exercise of Warrants, there shall be outstanding no securities of a class or series that, but for the provisions of this Section 3, would be issuable upon such exercise (the "Formerly Issuable Securities"), then, upon such exercise, and in lieu of the Formerly Issuable Securities, the Company shall issue that number and kind of other securities or property for which the Formerly Issuable Securities were most recently exercisable or into which the Formerly Issuable Securities were most recently convertible, as the case may be.

 

  

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4. Reservation of Securities. The Company agrees that the number of shares of Common Stock or other Securities sufficient to provide for the exercise of the Warrant upon the basis set forth above will, at all times during the term of the Warrant, be reserved for exercise.

 

5. Validity of Securities. All Securities delivered upon the exercise of the Warrant will be duly and validly issued in accordance with their terms and, upon payment of the Exercise Price, will be fully paid and non-assessable.  The Company will pay all documentary and transfer taxes, if any, in respect of the original issuance thereof upon exercise of the Warrant.

 

6. Registration of Securities Issuable on Exercise of Unit Warrants.

 

(a) The Company will register the Common Stock underlying the Unit Warrants with the Commission pursuant to the Act so as to allow the unrestricted sale of the Common Stock underlying the Unit Warrants to the public from time to time commencing six months after the Issue Date and ending at 5:00 p.m. Pacific Time on the earlier of October 12, 2017 or the date on which none of the Unit Warrants sold in the Offering remain outstanding (the "Registration Period").  The Company will also file such applications and other documents necessary to permit the sale of the Securities to the public during the Registration Period in those states in which the Common Stock underlying the Unit Warrants were qualified for sale in the Offering or such other states as the Company and the Warrantholder agree to. In order to comply with the provisions of this Section 6(a), the Company is not required to file more than one registration statement. No registration right of any kind, "piggyback" or otherwise, will last longer than five years from the Issue Date.

 

(b) The Company will pay all expenses relating to the registration, offer, and sale of the Securities described in this Section 6.

 

(c) Except as specifically provided herein, the manner and conduct of the registration, including the contents of the registration statement will be entirely in the control and at the discretion of the Company. The Company will file such post-effective amendments and supplements as may be necessary to maintain the currency of the registration statement during the period of its use. In addition, if the Warrantholder participating in the registration is advised by counsel that the registration statement, in their opinion, is deficient in any material respect, the Company will use its best efforts to cause the registration statement to be amended to eliminate the concerns raised.

 

(d) The Company will furnish to the Warrantholder the number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Act, and such other documents as it may reasonably request in order to facilitate the disposition of Securities owned by it.

 

(e) The Company will, at the request of Warrantholders holding at least 50 percent of the then outstanding Warrants, (i) furnish an opinion of the counsel representing the Company for the purposes of the registration pursuant to this Section 6, addressed to the Warrantholders, (ii) furnish an appropriate letter from the independent public accountants of the Company, addressed to the Warrantholders, and (iii) make representations and warranties to the Warrantholders. A request pursuant to this subsection (e) may be made on three occasions. The documents required to be delivered pursuant to this subsection (e) will be dated within ten days of the request and will be, in form and substance satisfactory to the Warrantholders.

 

  

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7. Indemnification in Connection with Registration.

 

(a) If any of the Securities are registered, the Company will indemnify and hold harmless each selling Warrantholder and any person who controls any selling Warrantholder within the meaning of the Act against any losses, claims, damages, or liabilities, joint or several, to which any Warrantholder or controlling person may be subject under the Act or otherwise; and it will reimburse each Warrantholder and each controlling person for any legal or other expenses reasonably incurred by the Warrantholder or controlling person in connection with investigating or defending any such loss, claim, damage, liability, or action, insofar as such losses, claims, damages, or liabilities, joint or several (or actions in respect thereof), arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained, on the effective date thereof, in any such registration statement or any preliminary prospectus or final prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the Company will not be liable in any case to the extent that any loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in any registration statement, preliminary prospectus, final prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with written information furnished by a Warrantholder for use in the preparation thereof.

 

(b) Each selling Warrantholder, as a condition of the Company's registration obligation, will indemnify and hold harmless the Company, each of its directors, each of its officers who have signed any registration statement or other filing or any amendment or supplement thereto, and any person who controls the Company within the meaning of the Act, against any losses, claims, damages, or liabilities to which the Company or any such director, officer, or controlling person may become subject under the Act or otherwise, and will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, or controlling person in connection with investigating or defending any such loss, claim, damage, liability, or action, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any untrue or alleged untrue statement of any material fact contained in said registration statement, any preliminary or final prospectus, or other filing, or any amendment or supplement thereto, or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in said registration statement, preliminary or final prospectus, or other filing, or amendment or supplement, in reliance upon and in conformity with written information furnished by such Warrantholder for use in the preparation thereof.

 

(c) Promptly after receipt by an indemnified party under subparagraphs (a) or (b) above of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party, notify the indemnifying party of the commencement thereof; but the omission to notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party otherwise than under subparagraphs (a) and (b).

 

(d) If any such action is brought against any indemnified party and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate in, and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with  counsel satisfactory to such indemnified party; and after notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party will not be liable to such indemnified party for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation.

 

8. Transferability. This Warrant Certificate and the Warrant may be transferred among the Lead Placement Agent and the Additional Placement Agents, or to Individuals Transferees; provided, however, that prior to any transfer to an Individual Transferee, the Individual Transferee shall agree to be bound by the terms and conditions of this Warrant. The Warrant may be divided or combined, upon request to the Company by the Warrantholder, into a certificate or certificates evidencing the same aggregate number of Warrants.

 

 

  

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9. Securities Act Compliance.  The Warrantholder hereby represents: (a) that this Warrant, the Unit Warrants, and the Common Stock to be acquired by Warrantholder upon exercise of this Warrant or upon exercise of the Unit Warrants will be acquired for investment for the Warrantholder's own account and not with a view to the resale or distribution of any part thereof, and (b) that the Warrantholder is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Act.  In addition, unless the issuance of the Unit Warrants or the Common Stock issuable upon exercise of this Warrant or the Unit Warrants shall have been registered under the  Act, as a condition of its delivery of certificates for the Unit Warrants or the Common Stock, the Company may require the Warrantholder to deliver to the Company, in writing, representations regarding the Warrantholder's sophistication, investor status, investment intent, acquisition for its own account and such other matters as are reasonable and customary for purchasers of securities in an unregistered private offering.  The Company may place conspicuously upon each certificate representing the Unit Warrants and the Common Stock a legend substantially in the following form, the terms of which are agreed to by the Warrantholder:

 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS PURSUANT TO UNITED STATES SECURITIES AND EXCHANGE COMMISSION RULE 144 OR UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND THE SECURITIES LAWS OF ANY STATE COVERING SUCH SECURITIES OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE 1933 ACT AND THE SECURITIES LAWS OF ANY STATE.

 

10. No Rights as a Shareholder. Except as otherwise provided herein, the Warrantholder will not, by virtue of ownership of the Warrant, be entitled to any rights of a shareholder of the Company but will, upon written request to the Company, be entitled to receive such quarterly or annual reports as the Company distributes to its shareholders.

 

11. Notice. Any notices required or permitted to be given hereunder will be in writing and maybe served personally or by mail; and if served will be addressed as follows:

 

If to the Company:

Methes Energies International Ltd.

3651 Lindell Road, Suite D-272

Las Vegas, Nevada, 89103

Attention: Chief Financial Officer

If to the Warrantholder:

at the address furnished by the Warrantholder to the Company for the purpose of notice.

Any notice so given by mail will be deemed effectively given 48 hours after mailing when deposited in the United States mail, registered or certified mail, return receipt requested, postage prepaid and addressed as specified above. Any party may by written notice to the other specify a different address for notice purposes.

12. Applicable Law. This Warrant Certificate will be governed by and construed in accordance with the laws of the State of Oregon, without reference to conflict of laws principles thereunder. All disputes relating to this Warrant Certificate shall be tried before the courts of Oregon located in Multnomah County, Oregon to the exclusion of all other courts that might have jurisdiction.

 

 

  

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Dated as of February 19, 2013

 

	 	 
METHES ENERGIES INTERNATIONAL LTD.

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:  Michel G. Laporte	 
	 	 	Title:    Chairman and Chief Executive Officer	 
	 	 	 	 

 

Agreed and Accepted as of February 19, 2013

 

	 	[                                                                                 ]	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 	 	 

 

7EXHIBIT 10.5: Executive Compensation Agreement - Jason Griffith

                       EXECUTIVE COMPENSATION AGREEMENT

                                    Between

                              AMERIGO ENERGY, INC

                                      and

                               JASON F. GRIFFITH

  This  Agreement  is made this 4th day of January 2013, by and between AMERIGO
ENERGY INC, a Deleware  corporation  ("AMERIGO  ENERGY"),  and  JASON  GRIFFITH
("EXECUTIVE"), with effective date of January 1, 2013.

 WHEREAS, AMERIGO ENERGY desires to retain the services of the EXECUTIVE in the
capacity of its Chief Executive Officer.

 NOW THEREFORE, IT IS AGREED AS FOLLOWS:

 SECTION 1. EMPLOYMENT.

  1.1  EXECUTIVE  EMPLOYMENT.  AMERIGO  ENERGY appoints EXECUTIVE and EXECUTIVE
accepts the appointment as Chief Executive Officer until December 31, 2017.

 1.2 ADVISORY PERIOD. If EXECUTIVE's Employment  is  terminated  as provided in
paragraph  (1.1)  above,  or  in  any  other  manner, he shall nevertheless  be
retained  thereafter  by  AMERIGO  ENERGY as an advisor  and  consultant  until
December 31, 2022 (Advisory Period).

 SECTION 2. DUTIES. EXECUTIVE shall serve as Chief Executive Officer of AMERIGO
ENERGY, with such duties as are customarily  associated  with  such position in
public  corporations  and  specifically  as  set out in the By-Laws of  AMERIGO
ENERGY.

  SECTION  3.  EXTENT OF SERVICES. EXECUTIVE shall  devote  his  best  efforts,
attention, and energies  to the performance of his duties as set out above. The
duties shall be rendered at  the AMERIGO ENERGY offices, or at such other place
or places and at such times as  the  needs  of AMERIGO ENERGY may from time-to-
time dictate.

  Nothing  in  this Agreement shall preclude EXECUTIVE  from  conducting  other
business or holding  official positions or directorships in other entities, the
activities of which do  not  directly  conflict  with  EXECUTIVE's  duties  and
responsibilities as Chief Executive Officer of AMERIGO ENERGY.

  SECTION  4.  TERM.  The term of this Agreement shall begin on January 1, 2013
(the "Effective Date"),  and shall continue for a five year period. The parties
presently anticipate that  the employment relationship may continue beyond this
five-year term.

 SECTION 5. EXECUTIVE COMPENSATION.

 5.1 BASE SALARY. AMERIGO ENERGY  will  pay  to EXECUTIVE a base salary for the
first year in the amount of One Hundred and Eighty Thousand Dollars ($180,000),
payable in accordance with AMERIGO ENERGY's standard  payroll procedures but no
less frequently than monthly, at the election of EXECUTIVE.  This  base  salary
will  be  payable  throughout  the  term  serving  in the EXECUTIVE or advisory
capacity,  as  defined  in  Section  1.1 (Executive Employment)  and  1.2  (the
Advisory Period). The Executive's Base  Salary  shall  be  reviewed, and may be
increased  but  not decreased, annually, by the Board pursuant  to  its  normal
performance review  policies  for senior executives, with the first such review
occurring not later than September 2013.

Should the Company for any reason  be  unable  to  pay the Executive monthly or
more frequent installments in accordance with the Company's  payroll  policies,
the  Executive may elect either of the following alternatives, or a combination
thereof;

   (a)  Executive  may elect to treat the unpaid compensation as a loan payable
on demand that accrues an annual interest of eight (8) percent,

   (b) Executive may  elect to receive common stock of the Company issued under
an S-8 registration statement  which will provide the Executive common stock at
fair market value based on the average  closing  price for the five (5) trading
days preceding the request for issuance of stock for  the effective pay period.
Executive may also elect to receive common stock of the Company issued under an
S-8  registration statement which will provide the Executive  common  stock  at
fair market  value  based  on the average closing price of the five (5) trading
days preceding the request for issuance of stock for the loan payable on demand
pursuant to subsection 5.1(a).

 5.2 SUPPLEMENTAL SALARY during  any  period of the contract in which EXECUTIVE
provides consulting services relating to AMERIGO ENERGY which are outside those
services normally provided by a Chief Executive  Officer,  he shall be entitled
to separate and supplemental compensation in amounts reasonably associated with
such  services,  in  addition  to  other compensation provided for  under  this
agreement.

 5.3 BONUSES. EXECUTIVE shall be eligible  to receive a discretionary bonus for
each  year  (or portion thereof) during the term  of  this  Agreement  and  any
extensions thereof,  with  the actual amount of any such bonus to be determined
in the sole discretion of the  Board  of Directors based upon its evaluation of
EXECUTIVE's performance during such year.

 SECTION 6. EXECUTIVE BENEFIT PACKAGE.

 6.1 Disability Benefits. In the event  EXECUTIVE should become disabled during
the period of his executive employment, his  salary  shall continue at the same
rate that it was on the date of such disability. If such  disability  continues
for  a  period  of  five  consecutive  months (or EXECUTIVE shall die), AMERIGO
ENERGY may at its option thereafter, upon  written  notice  to EXECUTIVE or his
Personal Representative, terminate his executive employment.  In such event the
advisory period shall commence immediately upon such termination  of employment
and  shall  continue  until December 31, 2022, regardless of the disability  or
death of EXECUTIVE. If EXECUTIVE shall receive any disability payments from any
insurance policies paid for by AMERIGO ENERGY, payments to EXECUTIVE during any
period of disability shall  be reduced by the amount of the disability payments
received by EXECUTIVE under such insurance policy or policies. For the purposes
of  this  agreement, disability  shall  mean  mental  or  physical  illness  or
condition rendering  EXECUTIVE  incapable  of performing his normal duties with
AMERIGO ENERGY.

  6.2  Vacation Benefits. EXECUTIVE shall be entitled  to  four  (4)  weeks  of
vacation  leave  per  year  for  each year of the contract period including the
executive and advisory period, cumulative at the option of EXECUTIVE.

 6.3 Reserved.

 6.4 Death Benefits. If EXECUTIVE  shall die between the date of this agreement
and December 31, 2022, compensation  payments  hereunder  shall  not  cease and
AMERIGO ENERGY shall pay to EXECUTIVE's widow, if she survives him, or  if  she
shall not survive him to his estate, in equal monthly installments in an amount
equal  to  the  advisory  compensation  provided for above. Such payments shall
commence with the month following the date  of  death. Said amount shall not be
less  than  two  years'  base  salary,  if less time is  remaining  on  subject
contract.

 6.5 Employment Benefits. This Agreement  is  not  intended to and shall not be
deemed to be in lieu of any rights, benefits and privileges  to which EXECUTIVE
may be entitled as an employee of AMERIGO ENERGY under any retirement, pension,
profit-sharing, insurance, hospital, automobile or other plans which may now be
in  effect  or  which  may  hereinafter  be  adopted, it being understood  that
EXECUTIVE  shall have the same rights and privileges  to  participate  in  such
plans and benefits  as  any  other  employee  during this period providing such
benefits are at least equal to those provided herein.

 SECTION 7. STOCK AND STOCK OPTIONS

 7.1 It is acknowledged that EXECUTIVE owns a number  of shares of common stock
in AMERIGO ENERGY and further, that

 (a) AMERIGO ENERGY shall register for public trading with  the  Securities and
Exchange Commission at least ten percent (10%) of the shares owned by EXECUTIVE
per  year for each year of the contract beginning with the second year  of  the
contract or the first offering of securities, whichever shall occur first.

 (b) In  the  event  a  voluntary  termination by EXECUTIVE and AMERIGO ENERGY,
AMERIGO ENERGY shall register the balance  of the stock owned by EXECUTIVE pro-
rata over five (5) years following such termination  in the event such stock is
not sooner sold.

 (c) In the event of involuntary termination or an offer  is  made  by a single
purchaser or group of purchasers and accepted by AMERIGO ENERGY for 51% or more
of  the  outstanding  common  stock of AMERIGO ENERGY, all remaining shares  of
stock owned by EXECUTIVE shall be registered for public trading immediately.

 7.2 EXECUTIVE is entitled to receive  stock  distributions  of  fully paid and
non-assessable common stock of AMERIGO ENERGY, in addition to any  other  stock
options  EXECUTIVE  may  be  entitled  to,  as  described  in Exhibit A to this
Agreement, entitled "Executive Stock Option Agreement".

 SECTION 8. TERMINATION.

  8.1 Termination For Cause. Termination For Cause may be effected  by  AMERIGO
ENERGY  at  any time during the term of this Agreement and shall be effected by
written notification  to EXECUTIVE. Provided, however, EXECUTIVE shall be given
30 days from date of delivery  of  such notification to cure the defect set out
in the notice. Upon Termination For  Cause, Employee shall promptly be paid all
accrued  salary,  bonus  compensation  to   extent   earned,   vested  deferred
compensation (other than pension or profit sharing plan benefits  which will be
paid in accordance with the applicable plan), any benefits under any  plans  of
AMERIGO  ENERGY  in  which  EXECUTIVE  is  a  participant to the full extent of
EXECUTIVE's rights under such plans, accrued vacation  pay  and any appropriate
business  expenses  incurred  by  EXECUTIVE  in  connection  with  his   duties
hereunder, all to the date of termination, along with a severance payment equal
to six-months base salary.

  8.2  Termination  Other Than For Cause. Notwithstanding anything else in this
Agreement, AMERIGO ENERGY  may effect a Termination Other Than For Cause at any
time upon giving written notice  to  EXECUTIVE  of  such  termination. Upon any
Termination Other Than For Cause, EXECUTIVE shall promptly  be paid all accrued
salary,  bonus  compensation  to  extent  earned, vested deferred  compensation
(other than pension or profit sharing plan  benefits  which  will  be  paid  in
accordance  with  the applicable plan), any benefits under any plans of AMERIGO
ENERGY in which EXECUTIVE  is  a  participant to the full extent of EXECUTIVE's
rights under such plans, (including  accelerated  vesting,  if  any,  of awards
granted  to  EXECUTIVE  under  AMERIGO  ENERGY's  stock  option  plan), accrued
vacation  pay  and  any appropriate business expenses incurred by EXECUTIVE  in
connection  with  his  duties  hereunder,  all  to  the  date  of  termination.
Thereafter, EXECUTIVE will  be retained as an advisor and consultant during the
Advisory Period in accordance with Paragraph 1.2.

 8.3 Voluntary Termination. In  the event of a Voluntary Termination, EXECUTIVE
shall promptly be paid all accrued salary, bonus compensation to extent earned,
vested  deferred  compensation (other  than  pension  or  profit  sharing  plan
benefits which will  be  paid  in  accordance  with  the  applicable plan), any
benefits under any plans of AMERIGO ENERGY in which EXECUTIVE  is a participant
to the full extent of EXECUTIVE's rights under such plans, accrued vacation pay
and any appropriate business expenses incurred by EXECUTIVE in connection  with
his  duties  hereunder,  all  to the date of termination. Thereafter, EXECUTIVE
will be retained as an advisor  and  consultant  during  the Advisory Period in
accordance with Paragraph 1.2.

 8.4 Termination Upon A Change of Control. In the event of a Termination Upon A
Change of Control, EXECUTIVE shall promptly be paid all accrued  salary,  bonus
compensation to extent earned, vested deferred compensation (other than pension
or  profit  sharing  plan  benefits  which  will be paid in accordance with the
applicable  plan), any benefits under any plans  of  AMERIGO  ENERGY  in  which
EXECUTIVE is  a participant to the full extent of EXECUTIVE's rights under such
plans, accrued  vacation  pay and any appropriate business expenses incurred by
EXECUTIVE  in  connection with  his  duties  hereunder,  all  to  the  date  of
termination.  Thereafter,   EXECUTIVE  will  be  retained  as  an  advisor  and
consultant during the Advisory Period in accordance with Paragraph 1.2.

 8.5 Notice of Termination. AMERIGO  ENERGY  may  effect  a termination of this
Agreement  pursuant  to  the  provisions  of this Section upon giving  30  days
written  notice  to  EXECUTIVE  of such termination.  EXECUTIVE  may  effect  a
termination of this Agreement pursuant  to  the provisions of this Section upon
giving 30 days written notice to AMERIGO ENERGY of such termination.

 SECTION 9. CONFIDENTIALITY.

 EXECUTIVE acknowledges that he will develop and be exposed to information that
is  or  will  be  confidential  and  proprietary to  the  AMERIGO  ENERGY.  The
information  includes  oil  and  gas  prospects,   engineering  and  geological
information,   exploration   and  development  plans,  and   other   intangible
information. Such information  shall  be  deemed confidential to the extent not
generally  known  within  the trade. EXECUTIVE  agrees  to  make  use  of  such
information only in the performance  of  his  duties  under  this Agreement, to
maintain such information in confidence and to disclose the information only to
persons with a need to know.

 SECTION 10. MISCELLANEOUS PROVISIONS.

  10.1  WAIVER.  AMERIGO  ENERGY's  waiver  of  the EXECUTIVE's breach  of  any
provision of this Agreement shall not operate or  be  construed  as a waiver of
any subsequent breach by the EXECUTIVE. EXECUTIVE's waiver of AMERIGO  ENERGY'S
breach of any provision of this Agreement shall not operate or be construed  as
a waiver of any subsequent breach by AMERIGO ENERGY.

  10.2 NOTICES. Any notices permitted or required under this Agreement shall be
deemed given upon the date of personal delivery or forty-eight (48) hours after
deposit  in  the  United  States  mail,  postage  fully prepaid, return receipt
requested, addressed to AMERIGO ENERGY at:

 AMERIGO ENERGY INC
 2580 Anthem Village Drive
 Henderson, NV 89052

addressed to EXECUTIVE at:

 JASON GRIFFITH
 2580 Anthem Village Drive
 Henderson, NV 89052

or  at  any other address as any party may, from time  to  time,  designate  by
notice given in compliance with this Section.

 10.3 LAW  GOVERNING.  This  Agreement  shall  be  governed by and construed in
accordance with the laws of the State of Nevada.

  10.4 TITLES AND CAPTIONS. All section titles or captions  contained  in  this
Agreement  are for convenience only and shall not be deemed part of the context
nor effect the interpretation of this Agreement.

 10.5 ENTIRE  AGREEMENT.  This  Agreement  contains  the  entire  understanding
between  and  among  the  parties  and supersedes any prior understandings  and
agreements among them respecting the subject matter of this Agreement.

 10.6 NON-TRANSFERABILITY. Neither EXECUTIVE, his wife, nor their estates shall
have any right to commute, anticipate,  encumber,  or  dispose  of  any payment
hereunder,  which  payment  and  the  rights  thereto  are  expressly  declared
nonassignable  and  nontransferable, except as other wise specifically provided
herein.

 10.7 AGREEMENT BINDING.  This  Agreement  shall inure to the benefit of and be
binding upon AMERIGO ENERGY, its successors  and  assigns,  including,  without
limitations, any persons, partnership, company or corporation which may acquire
substantially all of AMERIGO ENERGY'S assets or business or with or into  which
AMERIGO  ENERGY  may be liquidated, consolidated, merged or otherwise combined,
and shall inure to  the  benefit  of  and be binding upon EXECUTIVE, his heirs,
distributees and personal representatives.  If  payments  become payable to the
surviving widow of EXECUTIVE and he shall thereafter die prior to September 15,
2 such payments shall nevertheless continue to be made to his estate until such
date.

  10.8 COMPUTATION OF TIME. In computing any period of time  pursuant  to  this
Agreement,  the  day  of  the  act,  event or default from which the designated
period  of time begins to run shall be  included,  unless  it  is  a  Saturday,
Sunday, or a legal holiday, in which event the period shall begin to run on the
next day  which is not a Saturday, Sunday, or legal holiday, in which event the
period shall  run  until  the  end  of  the  next day thereafter which is not a
Saturday, Sunday, or legal holiday.

 10.9 PRONOUNS AND PLURALS. All pronouns and any  variations  thereof  shall be
deemed to refer to the masculine, feminine, neuter, singular, or plural  as the
identity of the person or persons may require.

  10.10  ARBITRATION.  If  at  any  time  during the term of this Agreement any
dispute, difference, or disagreement shall  arise  upon  or  in  respect of the
Agreement,  and  the  meaning  and  construction  hereof,  every  such dispute,
difference, and disagreement shall be referred to a single arbiter  agreed upon
by  the  parties,  or  if  no single arbiter can be agreed upon, an arbiter  or
arbiters  shall be selected in  accordance  with  the  rules  of  the  American
Arbitration  Association and such dispute, difference, or disagreement shall be
settled by arbitration  in accordance with the then prevailing commercial rules
of the American Arbitration  Association,  and judgment upon the award rendered
by the arbiter may be entered in any court having jurisdiction thereof.

  10.11  PRESUMPTION.  This  Agreement  or any section  thereof  shall  not  be
construed against any party due to the fact  that said Agreement or any section
thereof was drafted by said party.

  10.12  FURTHER  ACTION.  The parties hereto shall  execute  and  deliver  all
documents, provide all information  and take or forbear from all such action as
may be necessary or appropriate to achieve the purposes of the Agreement.

 10.13 PARTIES IN INTEREST. Nothing herein  shall  be  construed  to  be to the
benefit of any third party, nor is it intended that any provision shall  be for
the benefit of any third party.

 10.14 SEVERABILITY. If any provision of this Agreement, or the application  of
such  provision  to  any  person  or  circumstance,  shall be held invalid, the
remainder of this Agreement, or the application of such provision to persons or
circumstances other than those as to which it is held  invalid,  shall  not  be
affected thereby, and shall remain in full force and effect.

AMERIGO ENERGY, INC.                     JASON F. GRIFFITH

By: /s/ Jason F. Griffith               By: /s/ Jason F. Griffith
-----------------------------           --------------------------
Jason F. Griffith                       An individual
Chief Executive Officer and Director

Dated: January 4, 2013

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