Document:

Exhibit
10.1

 

AGREEMENT

 

This
Agreement (“Agreement”) is entered into this 18th day of
August, 2010 by and between Eureka Moly, LLC, a Delaware limited liability
company, of 1726 Cole Boulevard, Suite 115, Lakewood, Colorado,
80401(hereinafter “EMLLC”) and the Eureka Producers’ Cooperative, a Nevada
domestic non-profit cooperative corporation, of P.O. Box 462, Eureka,
Nevada, 89316 (hereinafter “EPC”).

 

RECITALS:

 

A.                                   EMLLC means Eureka Moly, LLC and its parent, affiliates and
subsidiaries including General Moly, Inc. (“GMI”) and Kobeh Valley Ranch,
LLC (“KVR”), and their successors and assigns.

 

B.                                     EPC means the Eureka Producers’ Cooperative, all of its
members and its successors and assigns.

 

C.                                     EMLLC has filed Applications To Change (“Applications”) with
the Nevada State Engineer for water to be used at its Mount Hope Project.

 

D.                                    EPC has filed Protests to the Applications (“Protests”) with
the Nevada State Engineer and appealed the State Engineer’s Ruling 5966 to the
Seventh Judicial District Court of the State of Nevada in and for the County of
Eureka (the “Appeal”).  Some of the
parties that filed protests with the State Engineer also appealed the Ruling
(the “Appellants”).

 

E.                                      EMLLC and EPC have reached an agreement resolving EPC’s
Appeal, Protests and concerns with EMLLC’s Applications, settling their
differences and enter into this Agreement to set forth their agreements.

 

WITNESSETH:

 

NOW,
THEREFORE, in consideration of the mutual covenants and conditions contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:

 

A.                                   The Recitals
set forth above are adopted as part of this Agreement of parties and the facts
set forth therein are acknowledged and agreed to be true, accurate and
complete.

 

B.                                     On or about June 28,
2010, the parties entered into a Confidentiality Agreement (“CA”) prior to
discussing a proposal from EMLLC entitled Settlement Points (“SP”). The parties
affirm the CA and its terms and provisions.

 

1

 

C.                                           It is the
intent of EMLLC and EPC that this Agreement set forth the parties’ obligations
and responsibilities concerning the Appeal, Protests and Applications and all
matters relating thereto and the Mount Hope Project.

 

D.                                    Trust and
Payments:

 

1.                                       EMLLC shall
contribute funds to an Agricultural Sustainability Trust (the “Trust”). The
amounts to be paid and the dates of payment are subject to certain events
occurring and subject to the performance of EPC’s obligations.  Both the triggering events and EPC’s
obligations are contained herein.

 

(a)                                  The Trust shall be organized
and established as required by Section D.3, before EMLLC is required to
submit payment. If EMLLC has an obligation to submit payment in accordance with
Section 2 herein and the Trust is still not organized and established,
EMLLC’s obligation to submit payment shall be delayed until such time as the
Trust is organized and established as required under Section D.3.

 

2.                                       The Amounts and
Dates:

 

	
   

  	
   

  	
  Minimum

  Contribution

  to the Trust

  	
   

  	
  Total maximum contributions to the

  Trust provided DEIS and ROD are

  received by the following dates

  	
   

  
	
  Payment
  Dates

  	
   

  	
  Basic Plan

  	
   

  	
  Receipt of DEIS

  by 11/30/10 and

  ROD by 5/1/11

  	
   

  	
  Receipt of DEIS

  by 1/15/11 and

  ROD by 8/1/11

  	
   

  
	
  a. Upon receipt Full Financing

  	
   

  	
  $

  	
  4,000,000

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  b. Upon receipt of first production payment or
  upon commencement of Production, plus no more than 150 days

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
  3,000,000

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  c. One year anniversary of b. above

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
  3,000,000

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  8,000,000

  	
   

  	
  $

  	
  12,000,000

  	
   

  	
  $

  	
  9,000,000

  	
   

  

 

In addition to the above payments, concurrently with EPC withdrawing
its protests as described in Section E. herein, EMLLC shall make an
initial payment to EPC in the amount of $25,000.  The initial payment shall be used by EPC for
purposes of organizing and establishing the above-referenced Trust.  Invoices shall be provided and

 

2

 

any
funds not utilized in the organization/establishment of the Trust shall be
credited to EMLLC against its first contribution payment.

 

“Full Financing” means — minimum funding to start
construction of the Mount Hope Project, including receipt of all permits
necessary to commence construction and GMI Board of Directors’ approval to
commence construction. For purposes of clarification, the payment required in
part a, above shall be made before such time as substantial construction is
actually commenced, excluding all pre-construction site preparation activities
including but not limited to work such as land clearing, pad preparation,
mobilization and cultural resources mitigation.

 

(a)                                  Provided however, in the
event the proposed Hanlong transaction remains in effect and funding is provided
within 120 days of receipt of ROD and the GMI Board of Directors approves the
commencement of construction, the payment required in part a, above shall be
due.

 

“Production” means — the making of molybdenum
product in a quantity sufficient for shipment and sale.

 

“ROD” means — the Record of Decision issued by the
Bureau of Land Management with respect to the Mount Hope Project and approval
of the Plan of Operations.

 

“DEIS” means — Publication of the Notice of
Availability of the draft Environmental Impact Statement of the Mount Hope
Project by the Bureau of Land Management in the Federal Register.

 

3.                                       EPC shall
organize and establish the Trust according to applicable state and federal law
consistent with the intent and purposes of this Agreement. The Trust shall:

 

(a)                                  Be administered by a five (5) member
Board of Directors (the “Board”). EMLLC shall have one (1) representative
on the Board. The remaining membership shall be comprised of two (2) members
of EPC, one (1) person from the Diamond Valley farming community and one (1) additional
person which at the discretion of the EPC may include a person designated by
Eureka County (an employee or elected county official).

 

(b)                                 Be for the sole purpose of
developing and implementing programs that will serve to enhance the
sustainability and well being of the agricultural economy in the Diamond Valley
Hydrographic Basin. The Board shall have discretion to develop programs it
deems appropriate and said 

 

3

 

programs
may include purchasing and relinquishing water rights in Diamond Valley.  In the event water rights are acquired by the
Trust, adequate provisions shall be developed to insure the Trust obtains water
rights with clear and marketable title.

 

(c)                                  Appropriate terms consistent
with the above purposes shall regulate and/or govern the Trust and the Board
shall take and perform all acts necessary to maintain its legal status in the
State of Nevada.

 

(d)                                 Allow EMLLC to review and
comment on the organizational documents and controlling terms of the Trust
prior to finalizing the same.

 

E.                                      EPC shall:

 

1.                                   Withdraw its
Protests, with prejudice, to EMLLC’s Applications, not file any further
protests to any change applications EMLLC may file in the future and take all
steps necessary to allow all of EMLLC’s Applications or future change
applications to be granted and in effect, and if necessary, dismiss with
prejudice and without fees and costs its Appeal.

 

2.                                       Not file any
further Protests, Appeals or contest in any manner, directly or indirectly, any
efforts by EMLLC to secure 11,300 afa of water for the Mount Hope Project,
including any change applications, extensions, waivers or other actions to be
conducted to maintain and/or put the water to use.

 

3.                                       Not oppose,
directly or indirectly, any of EMLLC’s mining and milling plans or operations
as set forth in its Plan of Operations filed with the Bureau of Land Management
or water applications for EMLLC’s present water usage requirements and agrees
not to participate in any way or manner, directly or indirectly, in any
protests, petitions, or activities of others which are designed or intended to
delay, adversely effect, or interfere with EMLLC’s mining and milling plans or
operations as set forth in the Plan of Operation, including EMLLC’s efforts to
obtain any regulatory approvals or permits for the Mount Hope Project from
federal, state or local authorities and agencies.

 

(a)                                  For purposes of
clarification, it is the intent of the parties hereto, that EPC will not oppose
in any way or manner EMLLC’s efforts to place the Mount Hope Project into
Production as contemplated by the Plan of 

 

4

 

Operations.
Further, EPC shall not protest or oppose in any way the issuance of the ROD or
appeal the same.

 

(1)                                  It is acknowledged that Jim
Gallagher and Andrew Marshall, members of EPC also serve on the Eureka County
appointed NEPA Committee (the “Committee”). Those EPC members may continue to
serve on the Committee and fulfill their duties and responsibilities to the
Committee in a neutral and impartial manner without said service violating the
terms and provisions of this Agreement. In fulfilling their duties to the
Committee, the EPC members shall not represent that their comments and decisions
represent the positions, comments or decisions of EPC.

 

(b)                                 However, EPC shall not be
precluded by this Agreement and EPC reserves the right to comment on or take
appropriate action on matters relating to the operation of the Mount Hope
Project after Production is commenced that EPC reasonably and in good faith
believes is causing or will cause adverse impacts to EPC and which is not the
subject of the purposes and intent of the Trust.

 

4.                                       EPC, by and
through its officers, shall actively assist EMLLC in persuading any other
protestants or Appellants, presently known to settle their protests, appeals or
challenges to any water rights Applications required for the Mount Hope
Project. EPC agrees to execute a letter or letters to be prepared by EMLLC, subject
to EPC’s reasonable and prompt approval, requesting all protests, challenges
and/or appeals be settled.

 

5.                                       Supply a
complete and accurate list of its membership.

 

F.                                      If Tim Halpin
or Eureka County (two of the other Appellants to Ruling 5966), do not withdraw
their protests, appeals and/or either harm or delay EMLLC’s ability to (1) obtain
any required approvals from federal or state regulatory authorities, or (2) obtain
approvals from the State Engineer granting sufficient Applications for
construction of the Mount Hope Project and said harm or delay causes material
schedule delays for the Mount Hope Project, then EMLLC shall, subject to F.1
and F.2, below, be entitled, but 

 

5

 

not
obligated, to rescind this Agreement and dissolve and terminate the Trust and
all funds in the Trust shall be returned to EMLLC.

 

1.                                       If Tim Halpin
or Eureka County do not withdraw their protests, appeals by the date first set
for hearing with the State Engineer on EMLLC’s pending applications, or before January 1,
2011 (whichever occurs first) and/or cause harm or delay, but EMLLC is
successful in obtaining all required permits and approvals for the Mount Hope
Project and EMLLC determines in its sole discretion to proceed with construction
based on obtaining Full Financing, the payment Amounts required in Section D,
2 shall be reduced by one-half in all categories. (To make it clear, it is the
intent of the parties that if the Mount Hope Project goes into Production, and
EPC has not violated its obligations under this Agreement, regardless of the
conduct of any third party, the Trust shall receive one-half of the amounts
required in Section D, 2.)

 

2.                                       Two of the
members of EPC, to-wit: Kenneth Benson and Jim Benson (“Bensons”), have refused
to approve this Agreement, will not abide by the terms, conditions and
obligations set forth herein and have recently resigned as Members of EPC. If,
following execution of this Agreement, the Bensons (i) file any protests
with the Nevada State Engineer opposing EMLLC’s Applications or any of its
change applications, or fail to withdraw any pending protests within thirty
(30) business days of execution of this Agreement, (ii) file any appeals
or petitions with the Nevada District Court appealing any ruling of the Nevada
State Engineer regarding EMLLC’s Applications or any of its change
applications, (iii) commit or engage in any of the acts precluded by this
Agreement, including but not limited to the conditions in Section E,
(specifically excepting the demands of E,4), or (iv) cause harm or delay
to the Mount Hope Project, but EMLLC is successful in obtaining all required
permits and approvals for the Mount Hope Project and EMLLC determines in its
sole discretion to proceed with construction based on obtaining Full Financing,
the payment Amounts required in Section D, 2 shall be reduced by
one-fourth in all categories, or refunded, in the case where payments have been
made, if:

 

6

 

(a)                                  EPC allows the Bensons or
the Bensons once again become members of EPC at any time in the future.

 

(b)                                 Bensons means—the
individuals above named and also includes, but is not limited to all groups,
organizations or business entities of any kind that either of them control or
have an ownership interest in as a partner or shareholder or that either of
them serve on as a director, officer, consultant, agent, employee, volunteer or
in any capacity.

 

3.                                       The total of
all reductions or refunds of the Amounts shall not exceed 50% even if both
events set forth in F, 1 and F, 2  occur.
The provisions for possible reductions or refunds of the Amounts to be paid by
EMLLC shall be incorporated into the Trust creation documents discussed in D.
3, above.

 

G.                                     Both parties
shall, upon request, promptly execute any and all documents reasonably
necessary to effectuate the terms and conditions of this Agreement.

 

1.                                       EPC shall
concurrently with execution of this Agreement execute the stipulations attached
hereto for presentment to the Nevada State Engineer and Nevada District Court
to withdraw EPC’s Protests and dismiss any Appeal.

 

(a)                                  EMLLC shall determine the
timing and procedure for presentation of the stipulations.

 

2.                                       EMLLC shall
prepare and EMLLC and EPC shall execute a Waiver, subject to EPC’s reasonable
approval, of the CA authorizing the parties to announce and communicate the
fact that the parties have resolved EPC’s Protests and Appeal and have entered
into this Agreement to the Board of Eureka County Commissioners (the “Commissioners”)
and the other Appellants, provided however, the financial contributions set
forth in Section D. 2 shall not be disclosed. The Waiver shall be for the
purpose of assisting and supporting EMLLC in its efforts to resolve all other
protests and appeals to its Applications and objections to the Mount Hope
Project.

 

3.                                       EMLLC is
specifically authorized to prepare and disseminate a press release announcing
this Agreement, subject to EPC’s reasonable approval, including the amounts
paid.  The content of the press release
shall be determined by EMLLC.

 

7

 

4.                                       EMLLC shall
submit the Waiver and press release to EPC and EPC shall have 24 hours to
provide its approval. If no response is provided, EPC shall be deemed to have given
its approval.

 

H.                                    If any portion of this Agreement is held to be invalid,
illegal or unenforceable by a court of competent jurisdiction, the remaining
covenants and restrictions or portions thereof shall remain in full force and
effect.

 

I.                                         All notices given hereunder shall be in writing and shall be
delivered in person or sent by registered mail or by facsimile transmission to
the parties at their respective addresses set out in the preamble. The
submittals of press releases or the Waiver for approval by EPC may be provided
by electronic or facsimile transmission to:

 

Fax no: (775) 237-5406

 

E-mail address:
andrewdeseri.marshall@gmail.com/nortoncritters@yahoo.com

 

J.                                        Both parties represent and warrant that it is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization, has all requisite power and authority to execute,
deliver and perform the terms and provisions of the Agreement and has taken all
necessary actions to authorize the execution, delivery and performance of this
Agreement.

 

K.                                    All questions
relative to the execution, validity, interpretation and performance of this
Agreement shall be governed by the laws of the State of Nevada.  The parties hereto agree that any action
related to this Agreement shall be instituted and maintained in the courts of
the County of Eureka, State of Nevada and each party hereto waives the right to
change of venue.

 

L.                                      This Agreement shall enure to the benefit of and be binding
upon the parties hereto and their respective successors and assigns.

 

8

 

IN WITNESS WHEREOF this Agreement
has been executed as of the day and year first above written.

 

	
  EUREKA MOLY, LLC,

  
	
  a Delaware limited liability company

  
	
   

  	
   

  
	
  By:

  	
  Nevada
  Moly, LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
  its
  manager

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Bruce D. Hansen

  	
   

  
	
  Printed
  Name:

  	
  Bruce
  D. Hansen

  	
   

  
	
  Title:

  	
  C.E.O.

  	
   

  
	
  Date:

  	
  8/19/10

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EUREKA PRODUCERS’ COOPERATIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  William H. Norton

  	
   

  
	
  Printed
  Name:

  	
  William
  H. Norton

  	
   

  
	
  Title:

  	
  President

  	
   

  
	
  Date:

  	
  Aug. 18,
  2010

  	
   

  
				

 

9EXHIBIT 4.1

 

ARTICLES
OF INCORPORATION

OF

BREWING
VENTURES INC.

 

The following Articles of
Incorporation are adopted pursuant to Minnesota Statutes, Chapter 302A in
accordance with Section 302A.133, by Brewing Ventures Inc., a corporation
organized and existing under the laws of the State of Minnesota (the “Corporation”).

 

ARTICLE 1

 

Name:  The name of this Corporation shall be Brewing
Ventures Inc.

 

ARTICLE  2

 

Registered Office:  The address of the Corporation’s registered
office in the State of Minnesota shall be 2400 IDS Center, Minneapolis,
Minnesota 55402.

 

ARTICLE  3

 

Authorized Shares:  The total authorized shares of all classes
which the Corporation shall have authority to issue is 100,000,000, consisting
of: 10,000,000 shares of preferred stock of the par value of one cent ($0.01)
per share (hereinafter the “preferred shares”); and 90,000,000 shares of common
stock of the par value of one cent ($0.01) per share (hereinafter the “common
shares”).

 

3.1           The Board of Directors of
the Corporation (hereinafter referred to as the “Board of Directors” or “Board”)
may, from time to time, establish by resolution, different classes or series of
preferred shares and may fix the rights and preferences of said shares in any
class or series.  Specifically, preferred
shares of the Corporation may be issued from time to time in one or more
series, each of which series shall have such designation or title and such
number of shares as shall be fixed by resolution of the Board of Directors
prior to the issuance thereof.  Each such
series of preferred shares shall have such voting powers, full or limited, or
no voting powers, and such preferences and relative, participating, optional or
other special rights, and such qualifications, limitations or restrictions
thereof as shall be stated and expressed in the resolution or resolutions
providing for the issuance of such series of preferred shares as may be adopted
from time to time by the Board of Directors prior to the issuance of any shares
thereof pursuant to the authority hereby expressly vested in the Board.

 

3.2           Except as provided or
required by law, or as provided in the resolution or resolutions of the Board
of Directors creating any series of preferred shares, the common shares shall
have the exclusive right to vote, on a noncumulative basis, for the election
and removal of directors and for all other purposes.  Unless otherwise provided by resolution or
resolutions of the Board of Directors, each holder of common shares shall be entitled
to one vote for each share held.

 

3.3           The Board of Directors shall
have the authority to issue shares of a class or series, shares of which may
then be outstanding, to holders of shares of another class or series to
effectuate share dividends, splits, or conversion of its outstanding shares.

 

3.4           The Board of Directors is
authorized to accept and reject subscriptions for and to dispose of authorized
shares of the Corporation, including the granting of stock options, warrants
and other rights to purchase shares, without action by the shareholders and
upon such terms and conditions as may be 

 

 

deemed
advisable by the Board of Directors in the exercise of its discretion, except
as otherwise limited by law.

 

3.5           The Board of Directors is
authorized to issue, sell or otherwise dispose of bonds, debentures,
certificates of indebtedness and other securities, including those convertible
into shares of stock, without action by the shareholders and for such
consideration and upon such terms and conditions as may be deemed advisable by
the Board of Directors in the exercise of its discretion, except as otherwise
limited by law.

 

ARTICLE 4

 

Certain Shareholder Rights:  No shareholder shall be entitled to any
preemptive right to purchase, subscribe for or otherwise acquire any new or
additional securities of the Corporation, or any options or warrants to
purchase, subscribe for or otherwise acquire any such new additional securities
before the Corporation may offer them to other persons.  No shareholder shall be entitled to any
cumulative voting rights.

 

ARTICLE  5

 

Written Action by Board:  An action required or permitted to be taken
by the Board of Directors may be taken by written action signed by the number
of directors that would be required to take the same action at a meeting of the
Board at which all directors are present, except as to those matters which
require shareholder approval, in which case the written action must be signed
by all members of the Board of Directors.

 

ARTICLE  6

 

Nonliability of Directors for Certain Actions:  To the fullest extent permitted by the
Minnesota Business Corporation Act, Minnesota Statutes, Chapter 302A, as it
exists on the date hereof or may hereafter be amended, a director of this
Corporation shall not be liable to the Corporation or its shareholders for
monetary damages for breach of fiduciary duty as a director.  No amendment to or repeal of this Article shall
apply to or have any effect on the liability or alleged liability of any
director of the Corporation for or with respect to any acts or omissions of
such director occurring prior to such amendment or repeal.

 

ARTICLE  7

 

Initial Director:  The name and
address of the person constituting the first member of the Company’s Board of
Directors is:

 

Steven
J. Wagenheim

5831
Cedar Lake Road

St.
Louis Park, MN 55416

 

ARTICLE 8

 

Incorporator:  The name and address of the incorporator is:

 

Avron
L. Gordon

2400
IDS Center

Minneapolis,
MN 55402

 

2

 

ARTICLE  9

 

Indemnification of Directors and Officers:  The
Corporation shall indemnify and may, in the discretion of the Board of
Directors, insure current and former directors, officers and employees of the
Corporation in the manner and to the fullest extent permitted by law.

 

IN WITNESS WHEREOF, the undersigned has
hereunto set his hand as of 25th day of June, 1997.

 

	
   

  	
  /s/
  Avron L. Gordon

  
	
   

  	
  Avron
  L. Gordon

  
	
   

  	
  Incorporator

  

 

Drafted
By:

 

Briggs and Morgan, Professional Association

Attention: 
Avron L. Gordon, Esq.

2400
IDS Center

80
South Eighth Street

Minneapolis,
MN  55402

 

3

 

ARTICLES
OF AMENDMENT TO ARTICLES OF INCORPORATION OF

 

BREWING
VENTURES INC.

 

The undersigned officer, on
behalf of Brewing Ventures Inc., a Minnesota corporation (the “Corporation”),
hereby certifies an amendment to the Corporation’s Articles of Incorporation
which has been duly approved by the Corporation’s Board of Directors in
accordance with Sections 302A.239 and 302A.133, of the Minnesota Statutes.  Accordingly, the Articles of Incorporation of
the Corporation are hereby amended as follows:

 

Article 1 of the
Articles of Incorporation of the Corporation shall read in its entirety as
follows:

 

ARTICLE
1

 

Name: The name of this Corporation shall be Founders Food &
Firkins Ltd.

 

IN WITNESS WHEREOF, the Corporation has caused
these Articles of Amendment to the Articles of Incorporation of the Corporation
to be executed this 26th day of June, 1997.

 

	
   

  	
  Brewing Ventures Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven J. Wagenheim

  
	
   

  	
  Its:   Chief
  Executive Officer

  

 

4

 

ARTICLES
OF AMENDMENT

TO
THE

ARTICLES
OF INCORPORATION OF

FOUNDERS
FOOD & FIRKINS LTD.

 

The undersigned, Mitchel I
Wachman, Secretary of Founders Food & Firkins Ltd., a Minnesota
corporation (the “Corporation”) with the purpose of amending the Corporation’s
Articles of Incorporation under the provisions of Minnesota Statutes Sections
302A.135 and 302A.139, hereby certifies that:

 

1.             The name of the
corporation is Founders Food & Firkins Ltd.

 

2.             Article 1 of the
Articles of Incorporation of the Corporation shall read in its entirety as
follows:

 

Article 1

 

Name: The name of
the Corporation shall be Granite City Food & Brewery Ltd.

 

IN
WITNESS WHEREOF, the Corporation has caused these Articles of
Amendment to the Articles of Incorporation to be executed this 5th day of September 2002.

 

	
   

  	
  Founders
  Food & Firkins Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Mitchel I. Wachman

  
	
   

  	
  Mitchel I. Wachman,
  Secretary

  

 

5

 

ARTICLES OF
AMENDMENT

TO

ARTICLES OF INCORPORATION

OF

GRANITE CITY FOOD & BREWERY LTD.

 

The undersigned
officer of Granite City Food & Brewery Ltd., a corporation organized
and existing under the laws of the state of Minnesota (the “Corporation”),
hereby certifies that:

 

FIRST:  The name of the Corporation is Granite City
Food & Brewery Ltd.

 

SECOND:  In accordance with Section 302A.402 of
the Minnesota Business Corporation Act, the board of directors of the
Corporation duly adopted a resolution setting forth the proposed amendment to Article 3
of the Articles of Incorporation, as amended, of the Corporation to reflect a
one (1) for six (6) share combination of common shares, and directing
that such amendment be effected via filing of these Articles of Amendment with
the office of the Minnesota Secretary of State.

 

THIRD:  Article 3, first paragraph, of the
Corporation’s Articles of Incorporation, as amended, is hereby amended to read
in its entirety as follows:

 

“ARTICLE 3

 

Authorized Shares:  The total authorized shares of all classes
which the Corporation shall have authority to issue is 25,000,000, consisting
of: 10,000,000 shares of preferred stock of the par value of one cent ($0.01)
per share (hereinafter the “preferred shares”); and 15,000,000 shares of common
stock of the par value of one cent ($0.01) per share (hereinafter the “common
shares”).

 

The remainder of Article 3 is unaffected by this Amendment.

 

FOURTH:  The combination giving rise to the amendment
set forth above concerns a one (1) for six (6) combination of the
shares of common stock of the Corporation. 
Pursuant to a resolution of the Board of Directors of the Corporation
effective December 29, 2009, every six (6) shares of common stock of
the Corporation, par value $0.01 per share, outstanding on January 13,
2010 (the “Record Date”) will be combined and converted into one (1) share
of common stock of the Corporation, par value $0.01 per share.  The authorized shares of the Corporation
after this share combination shall be as set forth in the amendment above.  No fractional shares shall be issued as a
result of the foregoing share combination, and any holder of common shares of
record upon the effective time of such share combination shall be entitled,
upon surrender to the Corporation of certificates representing such fractional
interests, to receive a cash payment in an amount equal to the product obtained
by multiplying the fractional interest by the fair market of a share of common
stock on the Record Date as determined by the Board.  As soon as practicable following the Record
Date, the Corporation will notify its shareholders of record on the Record Date
to transmit outstanding share certificates to the Corporation’s transfer agent
and registrar (“Transfer Agent”) and the Corporation will cause the Transfer
Agent to issue new certificates representing one share of common stock for
every six shares transmitted and held of record on the Record Date and to
deliver or mail such certificates to each such holder; and in settlement of
fractional interests that may arise as a result of such combination on the
Record Date, cause the Transfer Agent to disburse to such holders a cash
payment in an amount equal to the product obtained by multiplying the
fractional interest by the fair market of a share of common stock on the Record
Date as determined by the Board.

 

 

FIFTH:  These Articles of Amendment will not
adversely affect the rights or preferences of the holders of outstanding shares
of any authorized class or series of the Corporation’s shares and will not
result in the percentage of authorized shares of any class or series that
remains unissued after the combination approved by these Articles of Amendment
exceeding the percentage of authorized shares of that class or series that were
unissued before the combination.

 

SIXTH:  These Articles of Amendment to the
Corporation’s Articles of Incorporation, as amended, shall be effective at 5:00
PM (Eastern Standard Time) on January 13, 2010.

 

This amendment has been
approved pursuant to Minnesota Statutes chapter  302A.  I certify that I am authorized to execute
this amendment and I further certify that I understand that by signing this
amendment, I am subject to the penalties of perjury as set forth in section
609.48 as if I had signed this amendment under oath.

 

December 29, 2009

 

	
   

  	
  GRANITE
  CITY FOOD & BREWERY LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James G. Gilbertson

  
	
   

  	
  Name:

  	
  James
  G. Gilbertson

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
				

 

2

 

 

ARTICLES OF AMENDMENT TO

ARTICLES OF INCORPORATION OF

GRANITE CITY FOOD & BREWERY LTD.

 

The
undersigned, Steve J. Wagenheim, Chief Executive Officer of Granite City Food &
Brewery Ltd, a Minnesota corporation (the “Corporation”) with the purpose of
amending the Corporation’s Articles of Incorporation under the provisions of
Minnesota Statutes Sections 302A.135 and 302A.139, hereby certifies that:

 

1.                                       The name of the
corporation is Granite City Food & Brewery Ltd.

 

2.                                       The following
amended Article 3 of the Articles of Incorporation of the Corporation has
been adopted by the shareholders of the Corporation:

 

ARTICLE 3

 

Authorized Shares:  The total authorized shares of all classes
which the Corporation shall have authority to issue is 100,000,000, consisting of:
10,000,000 shares of preferred stock of the par value of one cent ($0.01) per
share (hereinafter the “preferred shares”); and 90,000,000 shares of common
stock of the par value of one cent ($0.01) per share (hereinafter the “common
shares”).  The Certificate of Designation
of Rights and Preferences dated September 30, 2002, creating the rights
and preferences of 60,000 shares of Series A Convertible Preferred Stock,
none of which are outstanding, is hereby cancelled and the total authorized
number of preferred shares which the Corporation shall have the authority to
issue shall be the aforesaid 10,000,000 preferred shares.

 

3.1                                 The Board of Directors of
the Corporation (hereinafter referred to as the “Board of Directors” or “Board”)
may, from time to time, establish by resolution, different classes or series of
preferred shares and may fix the rights and preferences of said shares in any
class or series.  Specifically, preferred
shares of the Corporation may be issued from time to time in one or more series,
each of which series shall have such designation or title and such number of
shares as shall be fixed by resolution of the Board of Directors prior to the
issuance thereof.  Each such series of
preferred shares shall have such voting powers, full or limited, or no voting
powers, and such preferences and relative, participating, optional or other
special rights, and such qualifications, limitations or restrictions thereof as
shall be stated and expressed in the resolution or resolutions providing for the
issuance of such series of preferred shares as may be adopted from time to time
by the Board of Directors prior to the issuance of any shares thereof pursuant
to the authority hereby expressly vested in the Board.

 

3.2                                 Except as provided or
required by law, or as provided in the resolution or resolutions of the Board
of Directors creating any series of preferred shares, the common shares shall
have the exclusive right to vote, on a noncumulative basis, for the election
and removal of directors and for all other purposes.  Unless otherwise provided by resolution or
resolutions of

 

 

the
Board of Directors, each holder of common shares shall be entitled to one vote
for each share held.

 

3.3                                 The Board of Directors shall
have the authority to issue shares of a class or series, shares of which may
then be outstanding, to holders of shares of another class or series to
effectuate share dividends, splits, or conversion of its outstanding shares.

 

3.4                                 The Board of Directors is
authorized to accept and reject subscriptions for and to dispose of authorized
shares of the Corporation, including the granting of stock options, warrants
and other rights to purchase shares, without action by the shareholders and
upon such terms and conditions as may be deemed advisable by the Board of
Directors in the exercise of its discretion, except as otherwise limited by
law.

 

3.5                                 The Board of Directors is
authorized to issue, sell or otherwise dispose of bonds, debentures,
certificates of indebtedness and other securities, including those convertible
into shares of stock, without action by the shareholders and for such
consideration and upon such terms and conditions as may be deemed advisable by
the Board of Directors in the exercise of its discretion, except as otherwise
limited by law.

 

3.                                       The amendment
was adopted pursuant to Chapter 302A of Minnesota Statutes.

 

IN WITNESS WHEREOF, the Corporation has caused
these Articles of Amendment to the Articles of Incorporation to be executed
this 25th day of August 2010.

 

	
   

  	
  Granite
  City Food & Brewery Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Steven J. Wagenheim

  
	
   

  	
  Steven
  J. Wagenheim

  
	
   

  	
  Chief
  Executive Officer

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