Document:

exv10w3

 

EXHIBIT 10.3

FIRST AMENDMENT

DATED AS OF JUNE 2, 2005

TO

EMPLOYMENT AGREEMENT

BETWEEN

ACTION PERFORMANCE COMPANIES, INC.

AND

FRED W. WAGENHALS

 

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

     This First Amendment to Employment Agreement (the “Amendment”) is dated as of June 2, 2005 by
and between Action Performance Companies, Inc., an Arizona corporation (“Employer”) and Fred W.
Wagenhals (“Executive”).

RECITALS

     A. Employer and Executive previously entered into that certain Employment Agreement, dated as
of December 10, 2004 (the “Agreement”); and

     B. Employer and Executive mutually desire to amend the Agreement.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants set forth in this
Agreement, the parties hereto agree as follows:

AGREEMENT

     1. Defined Terms. Capitalized terms not otherwise defined in this Amendment will have the
meanings set forth in the Agreement.

     2. Severance Benefits. Paragraph 7(b) of the Agreement is amended in its entirety as follows:

          (b) Benefits. The Executive’s Severance Benefits shall consist of two (2) times the
Executive’s then base salary and bonus compensation. The Company will pay this amount to Executive
in a lump sum, within 10 days of termination. Executive’s bonus compensation shall be the greater
of (i) the amount paid to him as bonus or incentive compensation for the prior year, and (ii) an
amount estimated to be due him under any then current bonus program. By way of example, if
Executive was paid a bonus of $100,000 for the prior year, and is estimated to earn a $60,000 bonus
in the year of termination, he would be paid $200,000 as his bonus payout upon termination. The
Severance shall also consist of the continuation for two (2) years of any health, life, disability,
or other insurance benefits that Executive was receiving as of the Change of Control date, but only
to the extent permitted under the policies for such benefits. If a particular insurance benefit
may not be continued for any reason, Employer shall pay to the Executive in a lump sum an amount
estimated in good faith for him to obtain comparable coverage for the two (2) year post-termination
period.

     3. Miscellaneous.

          (a) Execution in Counterpart. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any part whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of the parties reflected hereon as the signatories.

          (b) Effective Date. This Amendment shall be effective as of May 13, 2005.

 

 

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.

	 	 	 	 	 
	 	 	EMPLOYER:
	 
	 	 	 	 
	 	 	ACTION PERFORMANCE COMPANIES, INC.,

an Arizona corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ David M. Riddiford
	

	 	 	 	 
	

	 	Name:
	 	David M. Riddiford
	

	 	Its:
	 	Chief Financial Officer
	 
	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 
	 	 	/s/ Fred W. Wagenhals
	 	 	 
	 	 	Fred W. WagenhalsFINAL, DATED APRIL 11, 2005
                           ---------------------------

                                    [FORM OF]

                 SUBSCRIPTION AND REGISTRATION RIGHTS AGREEMENT

                         PETROSEARCH ENERGY CORPORATION

                                PRIVATE OFFERING
                          OF UP TO 19,230,769 SHARES OF
                                  COMMON STOCK

     This  Subscription  and  Registration  Rights Agreement (this "Agreement"),
                                                                    ---------
made  as  of  the  date  set  forth  below  by  and  between  Petrosearch Energy
Corporation,  a  Nevada  corporation  (the  "Company"), and the undersigned (the
                                             -------
"Subscriber"),  is  intended to set forth certain representations, covenants and
 ----------
agreements  between the Company and the Subscriber, with respect to the offering
(the  "Offering")  for  sale  by  the  Company  of  shares (the "Shares") of the
       --------                                                  ------
Company's  common  stock,  par  value  $0.001 per share (the "Common Stock"), as
                                                              ------------
described  in the Company's Confidential Private Offering Memorandum dated April
11,  2005  (the  "Memorandum"),  a  copy  of  which  has  been  delivered to the
                  ----------
Subscriber.  The  Shares are being offered by the Company through Sterne, Agee &
Leach, Inc., as the Company's exclusive placement agent (the "Placement Agent").
                                                              ---------------

     1.     Subscription.  Subject  to  the  terms  and  conditions  hereof, the
            ------------
Subscriber  hereby  irrevocably  subscribes  for and agrees to purchase from the
Company  the  number  of  Shares  set  forth  under the Subscriber's name on the
signature  page  hereto,  at  a purchase price of $1.30 per Share (the "Offering
                                                                        --------
Price"),  and the Company hereby agrees to sell such Shares to the Subscriber at
-----
the  Offering  Price,  subject  to the Company's right to sell to the Subscriber
such  lesser  number  of Shares as the Company may, in its sole discretion, deem
necessary or desirable.

     2.     Delivery  of  Subscription  Amount;  Acceptance  of  Subscription;
            ------------------------------------------------------------------
Delivery  of  Shares.  The  Subscriber understands, acknowledges and agrees that
--------------------
this subscription is made subject to the following terms and conditions:

     (a)     Contemporaneously  with  the  completion, execution and delivery of
this  Agreement,  the  Subscriber  shall  complete,  execute  and  deliver  the
Certificate  of  Accredited  Investor  Status  attached  as EXHIBIT B hereto and
                                                            ---------
incorporated  herein  by this reference, and shall submit to the Company payment
in the form of a wire of immediately available United States funds in the amount
equal  to  the  Offering  Price multiplied by the number of Shares for which the
Subscriber  has  subscribed  (the  "Subscription Amount") in accordance with the
                                    -------------------
Subscription  Instructions  set  forth  on  EXHIBIT  A  attached  hereto  and
                                            ----------
incorporated herein by this reference;

     (b)     The  Company  is  offering for sale up to 19,230,769 Shares, for an
aggregate amount of up to $25,000,000;

                                        1
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

     (c)     The  minimum  Subscription  Amount  is  $100,000  (76,923  Shares),
provided,  however,  that the Company reserves the right to accept subscriptions
for less than the minimum Subscription Amount;

     (d)     Pending  the Company's acceptance of the Subscriber's subscription,
in  whole or in part, the proceeds representing the Subscription Amount shall be
held in a non-interest-bearing account with Sterling Bank in Houston, Texas (the
"Offering Account"), until a closing occurs with respect to the Shares purchased
 ----------------
with  such proceeds. The Placement Agent and the Company may conduct one or more
closing  with  respect  to the Company's sale of Shares in the Offering (each, a
"Closing"). Closings will occur at such intervals as requested in writing by the
 -------
Company  to  the  Placement  Agent.  The  Placement  Agent and the Company shall
exercise  joint  control  over  the  Offering  Account.  The Company must obtain
authority  from  the  Placement Agent prior to withdrawing any proceeds from the
Offering Account, which authority shall not be unreasonably withheld;

     (e)     The  Subscriber  understands  and acknowledges that (i) the Company
has the unconditional right, exercisable in its sole and absolute discretion, to
accept  or reject the Subscriber's subscription for Shares, in whole or in part,
(ii)  subscriptions need not be accepted by the Company in the order received by
the  Company,  (iii)  all  subscriptions  are subject to prior sale, withdrawal,
modification  or  cancellation  of  the  Offering  by  the  Company,  (iv)  no
subscription  shall  be  valid unless and until accepted by the Company, (v) the
Subscriber's  subscription  for  Shares  shall  be  deemed to be accepted by the
Company only when this Agreement is signed by an authorized executive officer of
the Company, on behalf of the Company, and (vi) notwithstanding anything in this
Agreement  to the contrary, the Company shall have no obligation to issue Shares
to any person to whom the issuance of Shares would constitute a violation of the
Securities  Act  of  1933,  as  amended  (the  "Securities  Act"),  or any state
                                                ---------------
securities laws;

     (f)     The  proceeds representing the Subscription Amount (or, in the case
of  rejection  of  a  portion  of the Subscriber's subscription, the part of the
proceeds  relating  to  such  rejected portion) will be returned promptly to the
Subscriber,  without  interest,  if the Subscriber's subscription is rejected in
whole or in part or if the Offering is withdrawn or canceled;

     (g)     The  Subscriber's  subscription  is  irrevocable;  accordingly, the
Subscriber  does  not  have the right to cancel the Subscriber's subscription or
withdraw  the  proceeds  representing  the Subscription Amount from the Offering
Account at any time during the Offering;

     (h)     The Offering will continue until the first to occur of (i) the sale
of  all  of  the  Shares,  (ii)  the  date  on  which  the  Company, in its sole
discretion,  terminates the Offering, or (iii) 5:00 p.m., Central Standard Time,
on  April 29, 2005; provided, that the Company may extend the Offering for up to
sixty (60) days without notice to the subscribers;

     (i)     The  Offering is being conducted on a "best efforts" basis, and the
Company  is  not  required  to accept any minimum amount of subscriptions before
conducting a Closing;

     (j)     Certificates representing the Shares purchased in a Closing will be
issued  in  the  name  of  each purchaser therein as soon as reasonable possible
following each such Closing; and

                                        2
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

     (k)     In  consideration of the Placement Agent's services rendered to the
Company  as  its  exclusive placement agent in connection with the Offering, the
Company  will  pay  the Placement Agent a fee equal to six percent (6.0%) of the
gross  proceeds received from time to time by the Company in connection with the
sale  of  Shares in the Offering, and will reimburse the Placement Agent for its
out-of-pocket expenses incurred from time to time in connection therewith.

     3.     Registration  Rights.
            --------------------

     (a)     The Subscriber acknowledges that it is acquiring the Shares for its
own  account  and  for  the  purpose  of  investment  and not with a view to any
distribution  or  resale  thereof  within the meaning of the Securities Act. The
Subscriber  further  agrees that it will not sell, assign or transfer the Shares
at  any time in violation of the Securities Act and acknowledges that, in taking
unregistered  securities,  it  must  continue  to  bear the economic risk of its
investment  for an indefinite period of time because of the fact that the Shares
have not been registered under the Securities Act, and further realizes that the
Shares cannot be sold unless subsequently registered under the Securities Act or
an  exemption  from  such  registration  is  available.  The  Subscriber  also
acknowledges  that appropriate legends reflecting the status of the Shares under
the Securities Act may be placed on the face of the certificates for such Shares
at the time of their transfer and delivery to the holder thereof.

     (b)     The  Shares  may not be transferred except in a transaction that is
in compliance with the Securities Act. Except as provided hereafter with respect
to registration of the Shares, it shall be a condition to any such transfer that
the  Company shall be furnished with an opinion of counsel to the holder of such
Shares,  reasonably satisfactory to the Company, to the effect that the proposed
transfer would be in compliance with the Securities Act.

     (c)     Within 45 days following the earlier to occur of (i) a Closing with
respect to the sale of all of the Shares in the Offering or (ii) the termination
of the Offering following a Closing with respect to the sale of less than all of
the  Shares,  as  reflected  in  a  written  notice  given by the Company to the
Placement  Agent,  the  Company  shall  prepare and file with the Securities and
Exchange Commission (the "SEC") a registration statement on Form SB-1, Form SB-2
                          ---
or  Form  S-1,  whichever is applicable (the "Registration Statement"), and such
                                              ----------------------
other  documents  as may be necessary in the opinion of counsel for the Company,
and  use  its best efforts to have the Registration Statement declared effective
by  the  SEC  as  soon  as  reasonably practicable after such filing (including,
without  limitation, using its best efforts to respond to any of the SEC staff's
comments  within  15  days  following the Company's receipt thereof) in order to
comply with the provisions of the Securities Act, so as to permit the registered
resale  of  the  Shares for a period of two (2) years following the last sale of
Shares  in  the  Offering  by  each and every holder of Shares, except for those
holders who designate on the signature page hereto that they do not wish to have
their Shares included in the Registration Statement. The Subscriber acknowledges
that  certain shares of Common Stock sold in past private placements, as well as
the  shares  of Common Stock issuable upon exercise of the Company's outstanding
warrants,  will  be  included in the Registration Statement. The Shares that are
registered for resale under the Registration Statement are referred to herein as
the  "Offering  Shares,"  and  the  subscribers  who  are eligible to sell their
      ----------------
Offering Shares under the Registration Statement, together with their respective
affiliates,  are  hereafter  referred to as "Offering Holders." The Company will
                                             ----------------
include  in  the  Registration  Statement (i) the information required under the
Securities Act to be so included

                                        3
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

concerning  the  Offering  Holders,  as  provided by the Offering Holders on the
signature  pages  to  this Agreement and the other Subscription and Registration
Rights  Agreements  entered  into in connection with the Offering, including any
changes  in  such  information  that  may be provided by the Offering Holders in
writing  to  the Company from time to time, and (ii) a section entitled "Plan of
Distribution,"  substantially  in  the  form  of  EXHIBIT  C attached hereto and
                                                  ----------
incorporated  herein  by  this  reference, that describes the various procedures
that may be used by the Offering Holders in the sale of their Offering Shares.

     (d)     In  the  event  that  the  Company  does  not file the Registration
Statement  to  register  the Offering Shares with the SEC within the time period
specified  in  Section 3(c) above, the Company will be required to pay a penalty
to  each  Offering  Holder  equal  to one percent (1%) of such Offering Holder's
purchase  price ($1.30 per Share) for the Offering Shares, and an additional one
percent  (1%)  for  each  additional 45-day period during which the Registration
Statement is not filed.

     (e)     Notwithstanding  the  foregoing  provisions  of this Section 3, the
Company  may voluntarily suspend the effectiveness of the Registration Statement
for  a  limited  time,  which  in  no  event shall be longer than 60 days in any
three-month  period  and  no longer than 120 days in any twelve-month period, if
the  Company  has  been  advised  in  writing  by counsel or underwriters to the
Company  that  the  offering of any Offering Shares pursuant to the Registration
Statement would materially adversely affect, or would be improper in view of (or
improper  without  disclosure  in  a  prospectus),  a  proposed  financing,
reorganization,  recapitalization, merger, consolidation, or similar transaction
involving  the  Company.  The  Company shall notify all Offering Holders to such
effect,  and,  upon  receipt  of  such  notice,  each such Offering Holder shall
immediately  discontinue  any  sales  of  Offering  Shares  pursuant  to  the
Registration  Statement  until  such  Offering  Holder  has received copies of a
supplemented  or  amended prospectus or until such Offering Holder is advised in
writing  by  the  Company  that  the then current prospectus may be used and has
received  copies of any additional or supplemental filings that are incorporated
or deemed incorporated by reference in such prospectus.

     (f)     If  any event occurs that would cause the Registration Statement to
contain  a  material  misstatement or omission or not to be effective and usable
during  the  period that such Registration Statement is required to be effective
and usable, the Company shall promptly notify the Offering Holders of such event
and, if requested, the Offering Holders shall immediately cease making offers of
Offering  Shares  and  return all prospectuses to the Company. The Company shall
promptly  file  an  amendment  to  the  Registration  Statement  to correct such
misstatement  or  omission  and  use  its  reasonable best efforts to cause such
amendment  to  be  declared  effective  as  soon  as practicable thereafter. The
Company  shall  promptly  provide the Offering Holders with revised prospectuses
and,  following  receipt of the revised prospectuses, the Offering Holders shall
be free to resume making offers of the Offering Shares.

     (g)     Notwithstanding any provision contained herein to the contrary, the
Company's  obligation to include, or continue to include, Offering Shares in the
Registration  Statement pursuant to this Section 3 shall terminate to the extent
such Offering Shares are eligible for resale under Rule 144(k) promulgated under
the Securities Act.

                                        4
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

     (h)     If  and  whenever the Company is required by the provisions of this
Agreement  to  use  its  best efforts to effect the registration of the Offering
Shares  under  the  Securities  Act  for  the account of an Offering Holder, the
Company will, as promptly as possible:

          (i)     prepare  and file with the SEC such amendments and supplements
     to  the  Registration  Statement  and  the  prospectus  used  in connection
     therewith as may be necessary to keep such Registration Statement effective
     and to comply with the requirements of the Securities Act and the rules and
     regulations promulgated by the SEC thereunder relating to the sale or other
     disposition of the securities covered by such Registration Statement; and

          (ii)     furnish  to  each Offering Holder such numbers of copies of a
     prospectus,  including  a  preliminary  prospectus,  complying  with  the
     requirements  of  the  Securities  Act,  and  such  other documents as such
     Offering  Holder  may  reasonably request in order to facilitate the public
     sale  or  other  disposition  of the Offering Shares owned by such Offering
     Holder,  but  such Offering Holder shall not be entitled to use any selling
     materials  other  than  a  prospectus  and  such  other materials as may be
     approved by the Company, which approval will not be unreasonably withheld.

     (i)     Except  as  provided below in this Section 3, the expenses incurred
by  the  Company  in  connection with action taken by the Company to comply with
this Section 3, including, without limitation, all registration and filing fees,
printing  and  delivery  expenses,  accounting  fees,  fees and disbursements of
counsel  to  the  Company,  consultant  and  expert fees, premiums for liability
insurance,  if  the  Company  chooses  to  obtain  such  insurance,  obtained in
connection  with  the Registration Statement filed to effect such compliance and
all  expenses,  including  counsel  fees, of complying with any state securities
laws,  shall  be paid by the Company. All fees and disbursements of any counsel,
experts,  or  consultants employed by any Offering Holder shall be borne by such
Offering  Holder.  The  Company  shall not be obligated in any way in connection
with  any registration pursuant to this Section 3 for any selling commissions or
discounts  payable  by  any  Offering  Holder  to  any  underwriter or broker of
securities  to  be  sold by such Offering Holder. The Subscriber agrees that any
such selling commissions or discounts shall be borne by such Offering Holder.

     (j)     In the event of any registration of Shares pursuant to this Section
3,  the  Company  will  indemnify  and  hold  harmless each Offering Holder, its
officers,  directors, attorneys, partners, agents, employees and consultants and
each  underwriter  of such securities, and any person who controls such Offering
Holder  or  underwriter  within  the meaning of Section 15 of the Securities Act
(collectively,  the "Indemnified Parties"), against all claims, actions, losses,
                     -------------------
damages,  liabilities  and  expenses,  joint  or  several,  to which any of such
Indemnified  Parties  may  become subject under the Securities Act or otherwise,
insofar  as such losses, claims, damages, liabilities or actions arise out of or
are  based  upon  any  actual  or  alleged untrue statement of any material fact
contained  in  the  Registration  Statement  under  which  such  securities were
registered  under  the  Securities  Act,  any  preliminary  prospectus  or final
prospectus  contained  therein, or any amendment or supplement thereof, or arise
out  of  or  are  based  upon  the actual or alleged omission to state therein a
material  fact required to be stated therein or necessary to make the statements
therein,  in  light  of  the  circumstances  under  which  they  were  made, not
misleading,  and  will  reimburse each of such Indemnified Parties for any legal
and any other expenses

                                        5
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

reasonably  incurred  by such Indemnified Party in connection with investigating
or  defending  any  such  loss,  claim,  damage, liability, or action; provided,
however, that the Company will not be liable in any such case to the extent that
any  such  loss, claim, damage, liability or action arises directly out of or is
based  primarily upon an untrue statement or omission of a material fact made in
said  Registration Statement, said preliminary prospectus or said prospectus, or
said  amendment  or  supplement  in reliance upon and in conformity with written
information furnished to the Company by such Offering Holder or such underwriter
specifically  for use in the preparation thereof; and provided further, however,
that the Company will not be liable in any such case to the extent that any such
loss,  claim,  damage  or liability or action arises directly out of or is based
primarily  upon  an  untrue statement or omission of a material fact made in any
preliminary prospectus or final prospectus if (i) such Offering Holder failed to
send  or deliver the copy of the final prospectus or prospectus supplement which
such Offering Holder shall have been previously provided by the Company, with or
prior  to  the  delivery  of  written  confirmation  of the sale of the Offering
Shares,  and  (ii)  the  final  prospectus  or  prospectus supplement would have
corrected such untrue statement or omission.

     (k)     At  any time when a prospectus relating to the Offering is required
to  be  delivered under the Securities Act, the Company will notify the Offering
Holder of the happening of any event, upon the notification or awareness of such
event  by  an  executive  officer  of  the  Company,  as  a  result of which the
prospectus  included  in the Registration Statement, as then in effect, includes
an  untrue statement of material fact or omits to state a material fact required
to  be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing.

     (l)     In the event of any registration of Shares under the Securities Act
pursuant to this Section 3, the Subscriber agrees to indemnify and hold harmless
the Company, its officers, directors, attorneys, partners, agents, employees and
consultants  and  any  person  who  controls  the  Company within the meaning of
Section  15  of  the  Securities  Act (collectively, the "Indemnified Persons"),
                                                          -------------------
against  any losses, claims, damages, liabilities, or actions, joint or several,
to which any of such Indemnified Persons may become subject under the Securities
Act  or  otherwise,  insofar  as  such  losses, claims, damages, liabilities, or
actions arise out of or are based upon any actual or alleged untrue statement of
any  material  fact  contained  in  the  Registration Statement under which such
Shares  were  registered under the Securities Act, any preliminary prospectus or
final  prospectus  contained therein, or any amendment or supplement thereto, or
arise out of or are based upon the actual or alleged omission to state therein a
material  fact required to be stated therein or necessary to make the statements
therein  not  misleading, in each case to the extent and only to the extent that
any  such  loss,  claim,  damage, liability, or action arises out of or is based
upon  an  untrue  statement  or  omission  of  a  material  fact  made  in  said
Registration  Statement,  said preliminary prospectus or said prospectus or said
amendment  or  supplement  in  reliance  upon  and  in  conformity  with written
information  furnished  to  the  Company  by the Subscriber or any affiliate (as
defined  in  the  Securities  Act) of the Subscriber specifically for use in the
preparation thereof.

     (m)     Any  party  entitled  to  indemnification  hereunder  will (i) give
prompt  written  notice  to  the indemnifying party of any claim with respect to
which  it  seeks  indemnification  and  (ii)  unless in such indemnified party's
reasonable judgment a conflict of interest between such

                                        6
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

indemnified  and  indemnifying  parties  may  exist  with respect to such claim,
permit  such indemnifying party to assume the defense of such claim with counsel
reasonably  satisfactory  to  the indemnified party. If such defense is assumed,
the  indemnifying  party will not be subject to any liability for any settlement
made  by  the  indemnified  party  without its consent (which consent may not be
unreasonably  withheld). An indemnifying party who is not entitled to, or elects
not  to, assume the defense of a claim will not be obligated to pay the fees and
expenses  of  more  than  one  counsel  for  all  parties  indemnified  by  such
indemnifying party with respect to such claim, unless in the reasonable judgment
of  any  indemnified  party  a  conflict  of  interest  may  exist  between such
indemnified party and any other of such indemnified parties with respect to such
claim.

     (n)     With  a  view  to  making  available  to  the  Offering Holders the
benefits  of  Rule  144 promulgated under the Securities Act, the Company agrees
that  it  will use its best efforts to maintain registration of its Common Stock
under  Section  12  or 15 of the Securities and Exchange Act of 1934, as amended
(the "Exchange Act"), following the effectiveness of the Registration Statement
     -------------
and  to  file  with  the  SEC in a timely manner all reports and other documents
required  to  be  filed by an issuer of securities registered under the Exchange
Act  so  as  to  maintain  the availability of Rule 144. Upon the request of any
record  owner,  the Company will deliver to such owner a written statement as to
whether it has complied with the reporting requirements of Rule 144.

     4.     Representations,  Warranties  and  Covenants  of the Subscriber. The
            ---------------------------------------------------------------
Subscriber  hereby  represents  and warrants to, and covenants with, each of the
Company and the Placement Agent as follows:

     (a)     The  Subscriber  is  acquiring  the Shares for its own account, for
investment  and  not  with  a  view  to,  or  for resale in connection with, any
distribution  or  public  offering  thereof within the meaning of the Securities
Act,  and  applicable state securities laws. The Subscriber understands that (A)
the  Shares  (1)  have not been registered under the Securities Act or any state
securities  laws,  (2)  will  be  issued  in reliance upon an exemption from the
registration and prospectus delivery requirements of the Securities Act pursuant
to  Section 4(2) and/or Regulation D thereof, and (3) will be issued in reliance
upon  exemptions  from  the registration and prospectus delivery requirements of
state  securities laws which relate to private offerings, and (B) the Subscriber
must  therefore  bear the economic risk of such investment indefinitely unless a
subsequent  disposition  thereof  is  registered  under  the  Securities Act and
applicable  state securities laws or is exempt therefrom. The Subscriber further
understands  that such exemptions depend upon, among other things, the bona fide
nature  of the investment intent of the Subscriber expressed herein. Pursuant to
the  foregoing,  the  Subscriber acknowledges that the certificates representing
the  Shares  acquired  by  the  Subscriber  shall  bear  a  restrictive  legend
substantially as follows:

          "THE  SHARES  REPRESENTED  BY  THIS  CERTIFICATE ARE SUBJECT
          TO  RESTRICTIONS  ON  TRANSFER  UNDER  THE SECURITIES ACT OF
          1933,  AS AMENDED, AND STATE SECURITIES LAWS, AND MAY NOT BE
          OFFERED  FOR  SALE,  SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR
          OTHERWISE DISPOSED OF UNLESS (I) REGISTERED UNDER THE

                                        7
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

          APPLICABLE  SECURITIES  LAWS  OR (II) AN OPINION OF COUNSEL,
          WHICH  OPINION  AND COUNSEL ARE BOTH REASONABLY SATISFACTORY
          TO  THE  COMPANY, HAS BEEN DELIVERED TO THE COMPANY AND SUCH
          OPINION  STATES  THAT  THE SHARES MAY BE TRANSFERRED WITHOUT
          SUCH  REGISTRATION."

     (b)     The  Subscriber  has  knowledge, skill and experience in financial,
business  and  investment  matters relating to an investment of this type and is
capable of evaluating the merits and risks of such investment and protecting the
Subscriber's  interest  in  connection  with  the acquisition of the Shares. The
Subscriber  understands  that  the  acquisition  of  the Shares is a speculative
investment and involves substantial risks and that the Subscriber could lose the
Subscriber's  entire  investment  in  the  Shares.  Further,  the Subscriber has
carefully  read  and considered the matters set forth under the section entitled
"Risk  Factors"  in  each  of  the  Company's  Preliminary  Confidential Private
Offering  Memorandum,  dated  March 29, 2005 (the "Preliminary Memorandum"), and
                                                   ----------------------
the  Memorandum,  and  has  taken  full cognizance of and understands all of the
risks  related  to the purchase of the Shares. To the extent deemed necessary by
the  Subscriber,  the  Subscriber  has  retained, at its own expense, and relied
upon,  appropriate  professional  advice regarding the investment, tax and legal
merits  and consequences of purchasing and owning the Shares. The Subscriber has
the  ability  to  bear  the economic risks of the Subscriber's investment in the
Company,  including a complete loss of the investment, and the Subscriber has no
need for liquidity in such investment.

     (c)     The  Subscriber  has  been furnished by the Company all information
(or  provided  access  to  all information) regarding the business and financial
condition of the Company, its expected plans for future business activities, the
attributes of the Shares and the merits and risks of an investment in the Shares
which  the  Subscriber  has  requested or otherwise believes that the Subscriber
needs to evaluate the investment in the Company.

     (d)     The  Subscriber  is  in  receipt  of  and  has  carefully  read and
understands the following items:

          -     The Preliminary Memorandum; and

          -     The Memorandum.

     (e)     In  making  the Subscriber's investment decision, the Subscriber is
relying  solely  on  investigations  made by the Subscriber and the Subscriber's
representative(s),  if any. The offer to sell the Shares was communicated to the
Subscriber in such a manner that the Subscriber was able to ask questions of and
receive  answers  from  the  management  of the Company concerning the terms and
conditions  of the proposed transaction. At no time was the Subscriber presented
with  or  solicited  by  or  through any advertisement, article, leaflet, public
promotional  meeting,  notice or other communication published in any newspaper,
magazine  or similar media or broadcast over television or radio or presented at
any  seminar  or  meeting  or any other form of general or public advertising or
solicitation.

     (f)     The  Subscriber  acknowledges  that the Subscriber has been advised
that:

                                        8
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

          (i)     The Shares have not been approved or disapproved by the SEC or
     any  state  securities  commission  nor has the SEC or any state securities
     commission  passed  upon the accuracy or adequacy of any representations by
     the  Company.  Any  representation  to  the contrary is a criminal offense.

          (ii)     In making an investment decision, the Subscriber must rely on
     its own examination of the Company and the terms of the Offering, including
     the  merits and risks involved. The Shares have not been recommended by any
     federal  or  state  securities  commission  or  other regulatory authority.
     Furthermore,  the  foregoing authorities have not confirmed the accuracy or
     determined  the  adequacy  of  any  representation  by  the  Company.  Any
     representation  to  the  contrary  is  a  criminal  offense.

          (iii)     The  Shares  will  be  "restricted  securities"  within  the
     meaning  of  Rule 144 under the Securities Act, are subject to restrictions
     on  transferability  and resale and may not be transferred or resold except
     as permitted under the Securities Act and applicable state securities laws,
     pursuant  to  registration  or exemption therefrom. The Subscriber is aware
     that  the  Subscriber  may  be required to bear the financial risks of this
     investment  for  an  indefinite  period  of  time.

     (g)     The  Subscriber acknowledges and is aware that there has never been
any  representation,  guarantee  or warranty made by the Company or any officer,
director,  employee  or  agent or representative of the Company, expressly or by
implication,  as  to  (i)  the  approximate  or  exact  length  of time that the
Subscriber  will  be  required  to  remain  an  owner  of  the  Shares; (ii) the
percentage  of  profit and/or amount of or type of consideration, profit or loss
to  be  realized,  if  any,  as  a  result of this investment; or (iii) that the
limited  past  performance (if any) or experience on the part of the Company, or
any  future expectations regarding the Company's business or operations, will in
any  way  indicate  the predictable results of the ownership of Shares or of the
overall financial performance of the Company.

     (h)     The Subscriber agrees to furnish the Company such other information
as  the  Company  may  reasonably request in order to verify the accuracy of the
information contained herein and agrees to notify the Company immediately of any
material  change  in  the  information  provided herein that occurs prior to the
Company's acceptance of this Agreement.

     (i)     The  Subscriber further represents and warrants that the Subscriber
is an "accredited investor" within the meaning of Rule 501 of Regulation D under
the  Securities  Act,  and  the  Subscriber  has  executed  the  Certificate  of
Accredited Investor Status, attached hereto as EXHIBIT B and incorporated herein
                                               ---------
by this reference.

     (j)     If  the  Subscriber is a natural person, the Subscriber has reached
the  age  of majority in the state in which the Subscriber resides, has adequate
means  of  providing  for  the  Subscriber's  current  financial  needs  and
contingencies,  is  able to bear the substantial economic risks of an investment
in  the  Shares  for  an indefinite period of time, has no need for liquidity in
such  investment  and, at the present time, could afford a complete loss of such
investment.

     (k)     If  this Agreement is executed and delivered on behalf of a
partnership,  corporation, trust, estate or other entity (an "Entity"): (i) such
                                                              ------
Entity  has  the  full  legal  right  and

                                        9
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

power  and  all  authority  and approval required (a) to execute and deliver, or
authorize  execution  and  delivery of, this Agreement and all other instruments
executed  and  delivered  by  or on behalf of such Entity in connection with the
purchase  of the Shares, (b) to delegate authority pursuant to power of attorney
and  (c)  to  purchase  and  hold  such  Shares, (ii) the signature of the party
signing  on  behalf  of  such Entity is binding upon such Entity; and (iii) such
Entity  has  not  been formed for the specific purpose of acquiring such Shares,
unless  each  beneficial  owner  of  such  Entity  is qualified as an accredited
investor within the meaning of Rule 501(a) of Regulation D promulgated under the
Securities  Act  and  has  submitted  information substantiating such individual
qualification.

     (l)     If  the  Subscriber  is  not a United States person, the Subscriber
hereby  represents that it has satisfied itself as to the full observance of the
laws  of its jurisdiction in connection with any invitation to subscribe for the
Shares  or  any  use  of  this Agreement, including, without limitation, (i) the
legal  requirements within its jurisdiction for the purchase of the Shares, (ii)
any  foreign  exchange  restrictions  applicable  to  such  purchase,  (iii) any
governmental or other consents that may need to be obtained, and (iv) the income
tax  and  other  tax consequences, if any, that may be relevant to the purchase,
holding,  redemption,  sale or transfer of the Shares. The Subscriber represents
and  warrants  that  the  Subscriber's  subscription  and  payment  for, and the
Subscriber's  continued beneficial ownership of, the Shares will not violate any
applicable securities or other laws of the Subscriber's jurisdiction.

     (m)     If the Subscriber is a retirement plan or is investing on behalf of
a  retirement  plan,  the  Subscriber acknowledges that investment in the Common
Stock  poses  additional  risks, including, without limitation, the inability to
use  losses  generated  by  an  investment in the Common Stock to offset taxable
income.

     (n)     The  Subscriber  represents  and  warrants  that  it  is  not  a
broker-dealer  or  an  affiliate  of  a broker-dealer, except as follows:
                                                                          ------
                                                                               .
-------------------------------------------------------------------------------
If  the  Subscriber  is  a  broker-dealer,  the Subscriber acknowledges that the
Subscriber will be deemed to be an underwriter with respect to the resale of its
Shares.  If  the  Subscriber  is an affiliate of a broker-dealer, the Subscriber
acknowledges  that  the  Subscriber  will  be  deemed  to be an underwriter with
respect  to  the  resale  of  its Shares to the extent that such Shares are sold
through  its  affiliated  broker-dealer.  To  the  extent that the Subscriber is
affiliated in any manner with a broker-dealer, the Subscriber further represents
and  warrants  that  it  is  purchasing the Shares in the ordinary course of its
business  and that as of the date hereof it has no agreements or understandings,
directly or indirectly, with any person to distribute the Shares.

     The  foregoing  representations and warranties and undertakings are made by
the  Subscriber  with the intent that they be relied upon by the Company and the
Placement  Agent in determining the Subscriber's suitability as an investor, and
the  Subscriber  hereby  agrees  that  such representations and warranties shall
survive the Subscriber's purchase of the Shares.

                                       10
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

     5.     Representations  and  Warranties of the Company.  The Company hereby
            -----------------------------------------------
represents and warrants to the Subscriber as follows:

     (a)     The  Company  is  duly  incorporated,  validly existing and in good
standing  under  the  laws  of  the State of Nevada, and is duly qualified to do
business  as  a foreign corporation in all jurisdictions in which the failure to
be  so qualified would materially and adversely affect the business or financial
condition, properties or operations of the Company.

     (b)     The Company has duly authorized the issuance and sale of the Shares
in  accordance  with  the  terms  of this Agreement (as described herein) by all
requisite  corporate  action, including the authorization of the Company's Board
of  Directors of the issuance and sale of the Shares in accordance herewith, and
the  execution, delivery and performance of any other agreements and instruments
executed  in connection herewith. This Agreement constitutes a valid and legally
binding obligation of the Company, enforceable against the Company in accordance
with  its  terms,  except  (i)  as limited by applicable bankruptcy, insolvency,
reorganization,  moratorium,  and  other  laws  of general application affecting
enforcement  of creditors' rights generally, (ii) as limited by laws relating to
the  availability of specific performance, injunctive relief, or other equitable
remedies,  and  (iii)  to  the  extent  the indemnification provisions contained
herein may be limited by applicable federal or state securities laws.

     (c)     The  Preliminary  Memorandum,  as  of its date, did not contain any
untrue  statement of a material fact or omit to state any material fact required
to  be  stated  therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

     (d)     The  Memorandum,  as  of  its  date  and  as  of  the  date of this
Agreement,  does  not contain any untrue statement of a material fact or omit to
state  any  material fact required to be stated therein or necessary in order to
make  the statements therein, in the light of the circumstances under which they
were made, not misleading.

     The  representations  and warranties of the Company contained herein and in
any  other  writing  delivered  in connection with the transactions contemplated
hereby  shall  be  true and correct in all respects on and as of the date of the
Closing  of  any sale of Shares to the Subscriber if made on and as of such date
and  shall survive the execution and delivery of this Agreement and the purchase
of Shares.

     6.     Understandings  and  Acknowledgements.  The  Subscriber understands,
            -------------------------------------
acknowledges and agrees with the Company as follows:

     (a)     Neither the execution of this Agreement nor the solicitation of the
investment  contemplated  hereby  shall  create any obligation of the Company to
accept any subscription or complete the Offering.

     (b)     Except  as  required  by  law,  the  Subscriber  is not entitled to
cancel,  terminate  or revoke this Agreement or any agreements of the Subscriber
hereunder  and  that  this Agreement and such other agreements shall survive the
death or disability of the Subscriber and shall be

                                       11
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

binding upon and inure to the benefit of the parties and their heirs, executors,
administrators, successors, legal representatives and permitted assigns.  If the
Subscriber  is more than one person, the obligations of the Subscriber hereunder
shall  be  joint and several and the agreements, representations, warranties and
acknowledgments  herein  contained  shall be deemed to be made by and be binding
upon  each such person and his/her heirs, executors, administrators, successors,
legal  representatives  and  permitted  assigns.

     (c)     No federal or state agency has made any finding or determination as
to  the  accuracy or adequacy of the Preliminary Memorandum or the Memorandum or
as  to  the suitability of the Offering for investment nor any recommendation or
endorsement of the Shares.

     (d)     The  Offering  is intended to be exempt from registration under the
Securities  Act  by  virtue  of  Section  4(2)  of  the  Securities  Act and the
provisions  of  Regulation  D  thereunder,  which  is in part dependent upon the
truth,  completeness  and  accuracy  of  the  statements  made by the Subscriber
herein.

     (e)     There  can be no assurance that the Subscriber will be able to sell
or  dispose  of the Shares. It is understood that in order not to jeopardize the
Offering's exempt status under Section 4(2) of the Securities Act and Regulation
D,  any  transferee  will,  at  a  minimum,  be required to fulfill the investor
suitability requirements thereunder.

     (f)     The  Subscriber acknowledges that the information contained in each
of  the Preliminary Memorandum and the Memorandum is confidential and non-public
and  agrees  that  all  such  information  shall  be  kept  in confidence by the
Subscriber and neither used for the Subscriber's personal benefit (other than in
connection  with  this  subscription)  nor  disclosed to any third party for any
reason;  provided, however, that this confidentiality obligation shall not apply
to  any such information that (i) is part of the public knowledge or literature,
(ii) becomes part of the public knowledge or literature (except as a result of a
breach  of this provision) or (iii) is received from third parties (except third
parties  who  disclose  such  information  in  violation  of any confidentiality
agreements  or  obligations,  including,  without  limitation,  any subscription
agreement  entered  into  with  the  Company).  In  addition, the Subscriber may
disclose  any information as may be required by law or applicable legal process;
provided,  however,  to the extent permitted by law or applicable legal process,
the  Subscriber  shall  provide  the  Company  at least five business days prior
written notice before making any such disclosure.

     (g)     The  representations  and  warranties  of  the Subscriber contained
herein  and  in  any other writing delivered in connection with the transactions
contemplated  hereby  shall be true and correct in all respects on and as of the
date of the Closing of any sale of Shares to the Subscriber if made on and as of
such date and shall survive the execution and delivery of this Agreement and the
purchase of Shares.

     7.     Survival;  Indemnification.  All  representations,  warranties  and
            --------------------------
covenants  contained  in  this  Agreement  and  the  indemnification obligations
contained  in  this Section 7 shall survive (i) the acceptance of this Agreement
by  the  Company,  (ii)  changes  in the transactions, documents and instruments
described  herein  which  are  not  material  or which are to the benefit of the
Subscriber,  and (iii) the death or disability of the Subscriber. The Subscriber
understands  the  meaning  and  legal  consequences  of  the  representations,
warranties and covenants contained in

                                       12
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

this  Agreement  and  that  the Company and the Placement Agent have relied upon
such  representations,  warranties and covenants in determining the Subscriber's
qualification  and  suitability  to  purchase  the Shares. The Subscriber hereby
agrees  to  indemnify, defend and hold harmless the Company, the Placement Agent
and  their  respective  officers,  directors,  employees, agents and controlling
persons,  from  and  against  any  and all losses, claims, damages, liabilities,
expenses  (including  attorneys'  fees and disburse-ments), judgments or amounts
paid  in  settlement  of actions arising out of or resulting from the untruth of
any  representation  of  the  Subscriber herein or the breach of any warranty or
covenant  herein  by  the Subscriber. Notwithstanding the foregoing, however, no
representation,  warranty,  covenant  or  acknowledgment  made  herein  by  the
Subscriber  shall  in  any manner be deemed to constitute a waiver of any rights
granted to it under the Securities Act or state securities laws.

     8.     Notices.  All  notices  and other communications provided for herein
            -------
shall  be  in  writing  and shall be deemed to have been duly given if delivered
personally  or  sent  by registered or certified mail, return receipt requested,
postage prepaid, or sent by reputable overnight courier, charges prepaid:

     (a)     if to the Company, to the following address:

                    Petrosearch Energy Corporation
                    4801 Woodway Drive, Suite 300E
                    Houston, Texas 77056
                    Attn: President
                    Telephone: (713) 961-9337

     (b)     if  to  the  Subscriber,  to the address set forth on the signature
page hereto;

or  at such other address as any party shall have specified by notice in writing
to the other.

     9.     Notification  of  Changes.  The  Subscriber  agrees and covenants to
            -------------------------
notify  the  Company  immediately  upon the occurrence of any event prior to the
consummation  of  the  Offering  that  would cause any representation, warranty,
covenant or other statement contained in this Agreement to be false or incorrect
or  of  any  change  in  any  statement  made  herein  occurring  prior  to  the
consummation of the Offering.

     10.     Assignability;  Modification.  This  Agreement is not assignable by
             ----------------------------
the  Subscriber,  and  may  not  be  modified, waived or terminated except by an
instrument  in  writing  signed  by  the  party against whom enforcement of such
modification, waiver or termination is sought.

     11.     Binding  Effect.  Except  as  otherwise  provided  herein,  this
             ---------------
Agreement  shall  be  binding  upon  and inure to the benefit of the parties and
their  respective  heirs,  executors,  administrators,  successors,  legal
representatives  and  permitted  assigns,  and  the agreements, representations,
warranties  and  acknowledgments  contained herein shall be deemed to be made by
and  be  binding  upon  such heirs, executors, administrators, successors, legal
representatives and permitted assigns.

                                       13
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

     12.     Obligations  Irrevocable.  The  obligations  of  the  Subscriber
             ------------------------
hereunder  shall be irrevocable, except with the written consent of the Company,
until the consummation or termination of the Offering.

     13.     Entire  Agreement.  This Agreement constitutes the entire agreement
             -----------------
of  the  Subscriber  and  the  Company relating to the matters contained herein,
superseding all prior contracts or agreements, whether oral or written.

     14.     Governing  Law.  THIS  AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
             --------------
IN  ACCORDANCE  WITH  THE  LAWS  OF  THE  STATE  OF TEXAS, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAW THEREOF THAT WOULD REQUIRE THE APPLICATION OF THE
LAWS  OF  ANY JURISDICTION OTHER THAN TEXAS. ANY ACTION OR PROCEEDING SEEKING TO
ENFORCE  ANY  PROVISION OF, OR BASED ON ANY RIGHT ARISING OUT OF, THIS AGREEMENT
MAY  BE  BROUGHT AGAINST EITHER OF THE PARTIES HERETO IN THE COURTS IN THE STATE
OF  TEXAS,  COUNTY  OF HARRIS, OR, IF IT HAS OR CAN ACQUIRE JURISDICTION, IN THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS, AND EACH OF THE
PARTIES  HERETO CONSENTS TO THE JURISDICTION OF SUCH COURTS (AND THE APPROPRIATE
APPELLATE  COURTS)  IN ANY SUCH ACTION OR PROCEEDING AND WAIVES ANY OBJECTION TO
VENUE  MADE  THERIN.  PROCESS  IN  ANY  ACTION  OR PROCEEDING REFERRED TO IN THE
PRECEDING SENTENCE MAY BE SERVED ON EITHER OF THE PARTIES HERETO ANYWHERE IN THE
WORLD.

     15.     Severability.  If  any  provision  of  this  Agreement  or  the
             ------------
application  thereof to the Subscriber or any circumstance shall be held invalid
or  unenforceable  to  any  extent,  the  remainder  of  this  Agreement and the
application  of such provision to other subscriptions or circumstances shall not
be  affected  thereby  and shall be enforced to the greatest extent permitted by
law.

     16.     Headings.  The  headings  in  this  Agreement  are  inserted  for
             --------
convenience and identification only and are not intended to describe, interpret,
define,  or limit the scope, extent or intent of this Agreement or any provision
hereof.

     17.     Counterparts.  This  Agreement  may  be  executed  in any number of
             ------------
counterparts, each of which when so executed and delivered shall be deemed to be
an  original  and  all  of which together shall be deemed to be one and the same
agreement.

                              [SIGNATURES TO FOLLOW]

                                       14
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

     IN  WITNESS  WHEREOF,  the  Subscriber  has  executed this Subscription and
Registration Rights Agreement as of                 , 2005.
                                    ------------ ---

                                        SUBSCRIBER

                                        ----------------------------------------

                                        Number of Shares:
                                                         -----------------------
                                        Offering Price per Share:  $1.30

                                        Subscription  Amount:  $
                                                                ----------------

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------
                                        Address:
                                                --------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

                                        Please  designate  name  in  which
                                        stock certificate(s) representing Shares
                                        purchased are to be registered.

                                        ----------------------------------------

                                        Please  designate  address  for
                                        delivery  of  stock  certificate(s)
                                        representing  Shares  purchased  (if
                                        different from above).

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

                                       15
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

                                        Please  designate  the  individual  to
                                        whom  all  correspondence concerning the
                                        Subscriber's  subscription  for  Shares
                                        should  be  sent,  along  with  such
                                        individual's  requested  contact
                                        information.

                                        Name:
                                             -----------------------------------
                                        Address:
                                                --------------------------------

                                        ----------------------------------------
                                        Telephone: (    )
                                                    ----   ---------------------
                                        E-mail:
                                               ---------------------------------

The  name(s)  of the natural person(s) who will have voting and investment power
over  the  Shares  purchased  are  as  follows:
                                               ---------------------------------

Please  indicate  the  number  of shares of the Company's Common Stock currently
owned  by  the  Subscriber  in  addition  to  those being subscribed for in this
Agreement.
          ----------------------

     The  Company hereby accepts the foregoing subscription subject to the terms
and conditions hereof as of                 , 2005.
                            ------------ ---

                                                 Petrosearch Energy Corporation,
                                                 a Nevada corporation

                                                 By:
                                                    ----------------------------
                                                 Name:
                                                      --------------------------
                                                 Title:
                                                       -------------------------

                                       16
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

                                    EXHIBIT A
                                    ---------

                            SUBSCRIPTION INSTRUCTIONS

     (1)     If you are subscribing for the purchase of Shares, please complete,
date  and  sign  the signature page to this Subscription and Registration Rights
Agreement  in  the  applicable  spaces.  Please signify the amount of Shares for
which  you are subscribing by inserting such amount in the space provided for on
the signature page to the Agreement.

     (2)     Complete,  date and sign the accompanying Certificate of Accredited
Investor Status (Exhibit B).

     (3)     Send all completed documents to:

     Petrosearch Energy Corporation
     4801 Woodway Drive, Suite 300E
     Houston, Texas 77056
     Attn: President
     Telephone: (713) 961-9337

     (4)     Fax  all  completed  documents  to:

     Sterne, Agee & Leach, Inc.
     Attn: W. Barry McRae
     Facsimile: (205) 949-3607
     Telephone: (205) 949-3555

     (5)     Transmit  funds  (in  an  amount  equal to the number of Shares for
which you are subscribing multiplied by the Offering Price) via wire transfer to
the Offering Account as follows:

             Legal Name:               Petrosearch Energy Corporation
             Bank Name:                Sterling Bank, Houston, Texas
             Contact:                  Teresa Bajew
             Phone Number:             (713) 507-7127
             ABA / Routing Number:     113005549
             Account Number:           0311006711
             Tax ID Number:            20-2033200

ATTENTION SUBSCRIBERS: NO SUBSCRIPTION WILL BE ACCEPTED UNLESS ALL DOCUMENTATION
---------------------
PRESCRIBED  HEREIN  IS FULLY COMPLETED AND EXECUTED. ANY MATERIALS RECEIVED THAT
ARE INCOMPLETE IN ANY RESPECT WILL BE RETURNED BY THE COMPANY.

<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

                                    EXHIBIT B
                                    ---------

                    CERTIFICATE OF ACCREDITED INVESTOR STATUS

     The  undersigned  is  an  "accredited investor," as that term is defined in
Regulation  D  under  the  Securities  Act  of 1933, as amended (the "Securities
                                                                      ----------
Act").  The  undersigned has checked the box below indicating the basis on which
---
the  undersigned  is  representing  the  undersigned's  status as an "accredited
investor":

-    a  bank  as  defined  in  Section  3(a)(2)  of  the  Securities Act, or any
     savings  and  loan  association  or other institution as defined in Section
     3(a)(5)(A)  of  the  Securities  Act  whether  acting  in its individual or
     fiduciary capacity; a broker or dealer registered pursuant to Section 15 of
     the  Securities  Exchange  Act of 1934, as amended; an insurance company as
     defined  in  Section  2(13)  of  the  Securities Act; an investment company
     registered  under  the  Investment  Company  Act  of  1940  or  a  business
     development  company  as  defined  in Section 2(a)(48) of that Act; a small
     business  investment  company  licensed  by  the  U.S.  Small  Business
     Administration under Section 301(c) or (d) of the Small Business Investment
     Act  of  1958;  a plan established and maintained by a state, its political
     subdivisions,  or any agency or instrumentality of a state or its political
     subdivisions,  for  the  benefit  of its employees, and such plan has total
     assets in excess of $5,000,000; an employee benefit plan within the meaning
     of  the  Employee Retirement Income Security Act of 1974, if the investment
     decision  is  made by a plan fiduciary, as defined in Section 3(21) of such
     Act,  which  is  either  a  bank,  savings  and loan association, insurance
     company,  or registered investment adviser, or if the employee benefit plan
     has  total assets in excess of $5,000,000 or, if a self-directed plan, with
     investment  decisions  made  solely  by  persons  that  are  "accredited
     investors";

-    a  private  business  development  company  as  defined  in  Section
     202(a)(22) of the Investment Advisers Act of 1940;

-    an  organization  described  in  Section  501(c)(3) of the Internal Revenue
     Code, corporation, Massachusetts or similar business trust, or partnership,
     not  formed  for  the specific purpose of acquiring the securities offered,
     with total assets in excess of $5,000,000;

-    a  natural  person  whose  individual  net  worth,  or joint net worth with
     the undersigned's spouse, at the time of this purchase exceeds $1,000,000;

-    a  natural  person  who  had  an individual income in excess of $200,000 in
     each  of  the  two most recent years or joint income with the undersigned's
     spouse  in  excess  of $300,000 in each of those years and has a reasonable
     expectation of reaching the same income level in the current year;

-    a  trust  with  total  assets  in  excess of $5,000,000, not formed for the
     specific  purpose  of  acquiring  the securities offered, whose purchase is
     directed by a person who has such

<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

     knowledge  and  experience  in  financial  and  business matters that he is
     capable of evaluating the merits and risks of the prospective investment;

-    an  entity  in  which  all  of  the  equity  holders  are  "accredited
     investors"  by  virtue of their meeting one or more of the above standards;
     or

-    an  individual  who  is  a  director  or  executive  officer of Petrosearch
     Energy Corporation.

     IN  WITNESS  WHEREOF,  the  undersigned  has  executed  this Certificate of
Accredited Investor Status effective as of the     day of             , 2005.
                                               ---        ------------

                                                  ------------------------------
                                                  Name of Subscriber

                                                  By:
                                                     ---------------------------
                                                  Name:
                                                       -------------------------
                                                  Title:
                                                        ------------------------

                                        2
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

                                    EXHIBIT C
                                    ---------

                              PLAN OF DISTRIBUTION

     As  of the date of this prospectus, we have not been advised by the selling
stockholders  as  to  any  plan  of  distribution.  Shares  owned by the selling
stockholders,  or  by  their  partners,  pledgees,  donees (including charitable
organizations),  transferees  or  other successors in interest, may from time to
time  be  offered  for  sale  either  directly  by  such  individual, or through
underwriters,  dealers or agents or on any exchange on which the shares may from
time  to  time  be  traded,  in the over-the-counter market, or in independently
negotiated  transactions  or  otherwise.  The methods by which the shares may be
sold include:

     -    a  block  trade  (which  may  involve  crosses) in which the broker or
          dealer so engaged will attempt to sell the securities as agent but may
          position  and resell a portion of the block as principal to facilitate
          the transaction;

     -    purchases  by  a  broker  or  dealer  as  principal and resale by such
          broker or dealer for its own account pursuant to this prospectus;

     -    exchange distributions and/or secondary distributions;

     -    sales in the over-the-counter market;

     -    underwritten transactions;

     -    ordinary  brokerage  transactions  and  transactions  in  which  the
          broker solicits purchasers; and

     -    privately negotiated transactions.

     Such  transactions  may  be  effected by the selling stockholders at market
prices  prevailing  at  the  time  of  sale or at negotiated prices. The selling
stockholders  may  effect  such  transactions  by  selling  the  common stock to
underwriters  or  to  or  through  broker-dealers,  and  such  underwriters  or
broker-dealers may receive compensations in the form of discounts or commissions
from the selling stockholders and may receive commissions from the purchasers of
the  common  stock  for whom they may act as agent. The selling stockholders may
agree  to indemnify any underwriter, broker-dealer or agent that participates in
transactions  involving  sales  of  the  shares  against  certain  liabilities,
including  liabilities  arising  under  the  Securities  Act.  We have agreed to
register  the  shares  for  sale  under  the Securities Act and to indemnify the
selling  stockholders,  certain  representatives of the selling stockholders and
each  person  who  participates  as an underwriter in the offering of the shares
against  certain  civil  liabilities,  including  certain  liabilities under the
Securities Act.

     In  connection  with  sales  of the common stock under this prospectus, the
selling  stockholders  may  enter into hedging transactions with broker-dealers,
who  may  in  turn  engage  in  short sales of the common stock in the course of
hedging the positions they assume. The selling

                                        1
<PAGE>
                           FINAL, DATED APRIL 11, 2005
                           ---------------------------

stockholders  also  may  sell  shares  of common stock short and deliver them to
close  out  the short positions, or loan or pledge the shares of common stock to
broker-dealers that in turn may sell them.

     The  selling  stockholders  and  any  underwriters,  dealers or agents that
participate  in distribution of the shares may be deemed to be underwriters, and
any  profit  on  sale  of  the  shares by them and any discounts, commissions or
concessions  received  by  any  underwriter, dealer or agent may be deemed to be
underwriting discounts and commissions under the Securities Act.

     There  can  be no assurances that the selling stockholders will sell any or
all of the shares offered under this prospectus.

                                        2

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