Document:

Unassociated Document

    

    

    CERTIFICATE
      OF DESIGNATION OF THE

    

    PREFERENCES
      AND RIGHTS

    

    OF

    

    SERIES
      B
      CONTINGENT CONVERTIBLE PREFERRED STOCK

    

    OF

    

    GOLDEN
      EAGLE INTERNATIONAL, INC.

    

    *
      * *
      *

    

    The
      undersigned, Terry C. Turner and Tracy A. Madsen, certify that:

    

    A. They
      are
      the duly acting President and Secretary, respectively, of GOLDEN EAGLE
      INTERNATIONAL, INC., a corporation organized and existing under the Colorado
      Business Corporation Act (the "Corporation").

    

    B.
       Pursuant
      to authority conferred upon the Board of Directors by the Articles of
      Incorporation of the Corporation, and pursuant to the provisions of Section
      7-106-102 of the Colorado Business Corporation Act, said Board of Directors,
      pursuant to a meeting held on December 29, 2006, approved and adopted a
      resolution establishing the rights, preferences, privileges and restrictions
      of,
      and the number of shares comprising, the Corporation’s Series B Convertible
      Preferred Stock, which resolution is as follows:

    

    RESOLVED,
      that a series of Preferred Stock in Golden Eagle International, Inc., a Colorado
      corporation (the “Corporation”), having the rights, preferences, privileges and
      restrictions, and the number of shares constituting such series and the
      designation of such series, set forth below be, and it hereby is, authorized
      by
      the Board of Directors of the Corporation pursuant to authority given by the
      Corporation’s Articles of Incorporation.

    

    1. Number
      and Designation.
      This
      series shall consist of 4,500,000 shares of Preferred Stock of the Corporation
      and shall be designated the Series B Convertible Preferred Stock (“Series B
      Stock”). The number of authorized shares of Series B Stock may be reduced to the
      extent any shares are not issued and outstanding by further resolution duly
      adopted by the Board of Directors of the Corporation and by filing amendments
      to
      the Certificate of Designation pursuant to the provisions of the Colorado
      Business Corporation Act stating that such reduction has been so authorized,
      but
      the number of authorized shares of this Series shall not be increased except
      pursuant to majority vote of the Series B Holders. None of the shares of Series
      B Stock has been issued.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    

    2. Dividends.
      When
      and as any dividend or distribution is declared or paid by the Corporation
      on
      Common Stock, whether payable in cash, property, securities or rights to acquire
      securities, the Series B Holders will be entitled to participate with the
      holders of Common Stock in such dividend or distribution as set forth in this
      Section 2 . At the time such dividend or distribution is payable to the holders
      of Common Stock, the Corporation will pay to each Series B Holder such holder’s
      share of such dividend or distribution equal to the amount of the dividend
      or
      distribution per share of Common Stock payable at such time multiplied by the
      number of shares of Common Stock then obtainable upon conversion of such
      holder’s Series B Stock.

    

    3. Voting
      Rights.
      

    

    A. The
      Series B Holders shall be entitled to notice of any shareholders’ meeting and to
      vote as a single class with the Common Stock upon any matter submitted for
      approval by the holders of Common Stock, and shall have two hundred and fifty
      votes (250) for each share of Series B Stock held. 

    

    B. In
      addition to any other rights provided by law, so long as any Series B Stock
      is
      outstanding, the Corporation, without first obtaining the affirmative vote
      or
      written consent of the holders of not less than a majority of such outstanding
      shares of Series B Stock, will not amend or repeal any provision of, or add
      any
      provision to, the Corporation’s Articles of Incorporation or By-Laws if such
      action would materially adversely affect the liquidation preferences of, or
      the
      rights or restrictions provided for the benefit of, any Series B
      Stock.

    

    4. Preference
      Upon Liquidation.
      Upon
      any liquidation, dissolution or winding up of the Corporation, each Series
      B
      Holder will be entitled to be paid, before any distribution or payment is made
      upon any Junior Securities of the Corporation, an amount in cash equal to the
      aggregate Liquidation Value (as defined in Section 5C below) of all shares
      of
      Series B Stock held by such holder, plus accrued dividends, if any; thereafter,
      each Series B Holder will participate in any distribution or payment on a pro
      rata basis with all Junior Securities as if the Series B Stock had been
      converted into Common Stock so long as the Corporation has sufficient authorized
      but unissued common shares to allow the conversion of each Series B
      Share.

    

    5. Conversion
      into Conversion Stock.

    

    A. Conversion.
      The Corporation shall use its best efforts to authorize sufficient Common
      Stock by filing articles of amendment with the Secretary of State of
      Colorado, so that the Series B Holders may convert their Series B Preferred
      Stock into Common Shares at a ratio of one preferred share for two
      hundred fifty (250) shares of Common Stock (the “Conversion Ratio”). Conversion
      shall only occur upon such date as the Corporation authorizes sufficient
      additional Common Stock as evidenced by filing articles of amendment with the
      Secretary of State of Colorado.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    B.
      Contingent Conversion Feature

     

      (i) The
      conversion of Series B Stock will be deemed to have been effected upon the
      written notice by the Series B Stock Holder. At such time as such conversion
      has
      been effected, the rights of the holder of such Series B Stock as such holder
      will cease and the person or persons in whose name or names any certificate
      or
      certificates for shares of Conversion Stock are to be issued upon such
      conversion will be deemed to have become the holder or holders of record of
      the
      shares of Conversion Stock represented thereby.

    

    (ii) As
      soon as possible after a conversion has been effected, the Corporation will
      deliver to the converting holder a certificate or certificates representing
      the
      number of shares of Common Stock issuable by reason of such conversion in such
      name or names and such denomination or denominations as the converting holder
      has specified.

    

    (iii) The
      issuance of certificates for shares of Common Stock upon conversion of Series
      B
      Stock will be made without charge to the Series B Stock Holder

     

    C. Subdivision
      or Combination of Common Stock.
      If the
      Corporation at any time subdivides (by any stock split, stock dividend or
      otherwise) its outstanding shares of Common Stock into a greater number of
      shares, the Conversion Ratio in effect immediately prior to such subdivision
      will be proportionately reduced, and if the Corporation at any time combines
      (by
      reverse stock split or otherwise) its outstanding shares of Common Stock into
      a
      smaller number of shares, the Conversion Ratio in effect immediately prior
      to
      such combination will be proportionately increased.

    

    D. Certain
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 5 but
      not expressly provided for by such provisions, then the Board of Directors
      of
      the Corporation will make an appropriate adjustment in the Conversion Ratio
      so
      as to protect the rights of the Series B Holders; provided that no such
      adjustment will increase the Conversion Ratio as otherwise determined pursuant
      to this Section 5 or decrease the number of shares of Common Stock issuable
      upon
      conversion of each share of Series B Stock.

    

    E. Notices.

    

    (i) Immediately
      upon any adjustment of the Conversion Ratio, the Corporation will send written
      notice thereof to all Series B Holders.

    

    (ii) All
      notices and other communications from the Corporation to a Series B Holder
      shall
      be mailed by first class registered or certified mail, postage prepaid, at
      such
      address as may have been furnished to the Corporation in writing by such holder,
      or, until an address is so furnished, to and at the address of the last holder
      who has so furnished an address to the Corporation.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    

    E. Converted
      or Redeemed Shares.
      Any
      shares of Series B Stock which are converted pursuant to this Section 5 will
      be
      canceled and will not be reissued, sold or transferred and will be returned
      to
      authorized but unissued shares of Preferred Stock.

    

    6.
      Miscellaneous.

    

    A. Registration
      of Transfer.
      The
      Corporation will keep at its principal office a register for the registration
      of
      Series B Stock. Upon the surrender of any certificate representing Series B
      Stock at such place, the Corporation will, at the request of the record holder
      of such certificate, execute and deliver (at the Corporation’s expense) a new
      certificate or certificates in exchange therefore representing in the aggregate
      the number of shares represented by the surrendered certificate. Each such
      new
      certificate will be registered in such name and will represent such number
      of
      shares as is requested by the holder of the surrendered certificate and will
      be
      substantially identical in form to the surrendered certificate.

    

    B. Replacement.
      Upon
      receipt of evidence reasonably satisfactory to the Corporation (an affidavit
      of
      the registered holder will be satisfactory) of the ownership and the loss,
      theft, destruction or mutilation of any certificate evidencing one or more
      shares of Series B Stock, and in the case of any such loss, theft or
      destruction, upon receipt of indemnity reasonably satisfactory to the
      Corporation, the Corporation will (at its expense) execute and deliver in lieu
      of such certificate a new certificate representing the number of shares
      represented by such lost, stolen, destroyed or mutilated
      certificate.

    

    C. Priority.
      The
      Corporation may not issue any series of Preferred Stock that may be treated
      in
      pari passu or
      senior
      to the Series B Stock. 

    

    D. Definitions.
      For
      purposes hereof:

    

    “Common
      Stock”
means
      the Common Stock of the Corporation, $.0001 par value per share, and includes
      all stock of any class or classes (however designated) of the Company,
      authorized upon the Original Issue Date or thereafter, the holders of which
      shall have the right, without limitation as to amount, either to all or to
      a
      share of the balance of current dividends and liquidating dividends after the
      payment of dividends and distributions on any shares entitled to preference,
      and
      the holders of which shall ordinarily, in the absence of contingencies, be
      entitled to vote for the election of a majority of directors of the Company
      (even though the right so to vote has been suspended by the happening of such
      a
      contingency).

    

    “Conversion
      Ratio”
shall
      have the meaning set forth in Section 5A.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    “Corporation”
shall
      have the meaning set forth in the first paragraph of this Certificate of
      Designation.

    

    “Junior
      Securities”
means
      the Common Stock and any equity securities of any kind (but not including any
      debt securities convertible into equity securities) which the Corporation or
      any
      Subsidiary at any time issues or is authorized to issue other than the Series
      B
      Stock unless the terms of such security explicitly state that such security
      shall be senior to or on a par with the Series B Stock.

    

    “Liquidation
      Value”
of
      any
      share of Series B Stock as of any particular date will be $1.00.

    

    “Original
      Issue Date”
means
      the date the Series B Stock is first issued.

    

    “Person”
and
      “person”
means
      an individual, a partnership, a corporation, a limited liability company, a
      trust, a joint venture, an unincorporated organization and a government or
      any
      department or agency thereof.

    

    “Series
      B Holder”
shall
      mean a registered holder of Series B Stock.

    

    “Series
      B Stock”
shall
      have the meaning set forth in Section 1.

    

    “Subsidiary”
means
      any corporation of which the shares of stock having a majority of the general
      voting power in electing the board of directors are, at the time as of which
      any
      determination is being made, owned by the Corporation either directly or
      indirectly through Subsidiaries.

    

    E. Amendment
      and Waiver.
      No
      amendment, modification or waiver will be binding or effective with respect
      to
      any provision hereof without the prior approval of a majority of the outstanding
      shares of Series B Stock; provided notwithstanding Section 3.B above that no
      such action will change or affect (a) the Conversion Ratio of the Series B
      Stock, (b) the Liquidation Value of the Series B Stock, or (c) the amount of
      cash, securities or other property receivable or to be received by the Series
      B
      Holders.

    

    F. Generally
      Accepted Accounting Principles.
      When
      any accounting determination or calculation is required to be made, such
      determination or calculation (unless otherwise provided) will be made in
      accordance with generally accepted accounting principles, consistently applied,
      except that if because of a change in generally accepted accounting principles
      the Corporation would have to alter a previously utilized accounting method
      or
      policy in order to remain in compliance with generally accepted accounting
      principles, such determination or calculation will continue to be made in
      accordance with the Corporation’s previous accounting methods and policies
      unless the Corporation has obtained the prior written consent of the holders
      of
      a majority of the Series B Stock then outstanding.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    G. The
      number of authorized shares of Preferred Stock of the Corporation is 10,000,000,
      and the number of shares of Series B Stock, none of which has been issued,
      is
      4,500,000.

    

    IN
      WITNESS WHEREOF, the undersigned officers of the Corporation have executed
      this
      Certificate this 29th day of December, 2006.

    

    
      	 	
              GOLDEN
                EAGLE INTERNATIONAL, INC.

            
	 	 	 
	 	
              By:

            	
              /s/
                Terry C. Turner

            
	 	 	
              President

            
	 	 	 
	 	
              By:

            	
              /s/
                Tracy A. Madsen

            
	 	 	
              Secretary

            

    

    

    VERIFICATION

    

    The
      undersigned, Terry C. Turner and Tracy A. Madsen, the President and Secretary,
      respectively, of Golden Eagle International, Inc., each declares under penalty
      of perjury that the matters set out in the foregoing Certificate were approved
      by the Board of Directors of Golden Eagle International, Inc. on December 29,
      2006 and are true of his own knowledge. Executed at Salt Lake City, Utah, on
      this 29th day of December, 2006.

    

    
      	 	
              /s/
                Terry C. Turner

            
	 	
              Terry
                C. Turner, President

            
	 	 
	 	
              /s/
                Tracy A. Madsen

            
	 	
              Tracy
                A. Madsen, Secretary

            

    

    

    

    
      
         

      

        
        6Unassociated Document

    GOLDEN
      EAGLE INTERNATIONAL, INC.

    

    SERIES
      B CONTINGENT CONVERTIBLE PREFERRED 

    STOCK
      SUBSCRIPTION AGREEMENT

    

    THE
      SERIES B STOCK BEING OFFERED BY GOLDEN EAGLE INTERNATIONAL, INC.
      HEREUNDER HAS NOT BEEN REGISTERED UNDER THE SERIES A STOCK ACT OF 1933 OR
      APPLICABLE STATE BLUE SKY OR SECURITIES LAWS AND IS OFFERED UNDER AN EXEMPTION
      FROM THE REGISTRATION PROVISIONS OF SUCH LAWS. THESE SECURITIES CANNOT BE SOLD,
      TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE
      RESTRICTIONS ON TRANSFER CONTAINED IN THIS STOCK SUBSCRIPTION AGREEMENT AND
      APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

    

    NOTE:
      By considering an investment in Golden Eagle International, Inc., as described
      herein, you are representing, and by executing this Subscription Agreement,
      you
      represent and warrant, that you are an “accredited investor” as that term is
      defined in Section 2(a)(15) of the Federal Securities Act of 1933 (the “1933
      Act”) and Rule 215 thereunder, and in Rule 501(a) of Regulation D under the 1933
      Act,.

    

    This
      Subscription Agreement (“Subscription Agreement” or “Agreement”) is for the
      completion of an offering of securities (the “Offering”) by Golden Eagle
      International, Inc. (the “Company”) to Golden Eagle Mineral Holding,
      Inc. (“GEMH”
      or “you”),
      pursuant to Sections 4(2) and 4(6) of the 1933 Act and Rule 506 of Regulation
      D
      thereunder. The following summarizes the Offering to the Investor:

     

    
      	•	
              Offering: 1,251,090
                shares of Series B Contingent Convertible Preferred Stock for a price
                of
                $1.00 per share, of which $1,251,089.78 will be invested on the date
                that
                this Agreement through the satisfaction of GEMH’s promissory notes, or
                other debt instruments, which are attached hereto, marked as Exhibit
“A”
                and by this reference are made a part hereof, and the exchange of
                those
                debt instruments for Series B Contingent Convertible Preferred Stock.
                

            

    

    

    
      	
              •

            	
              Series
                B Stock: Each
                share of the Company’s Series B Convertible Preferred Stock (“Series B
                Stock”), is convertible into the Company’s Common Stock in accordance with
                the provisions contained in the Certificate of Designation of Preferences
                and Rights of the Series B Stock (“Designation”). The Series B Stock has
                significant transferability restrictions imposed by SEC Rule
                144.

            

    

     

    
      	•	
              Total
                offering: $1,251,089.78
                maximum (there is no minimum total investment). The Company may use
                all
                funds as invested in its own discretion, regardless of whether the
                Company
                has sufficient funds to pursue its proposed operations (as described
                in
                the Company’s reports filed under the Stock Exchange Act of 1934 (the
                “1934 Act Reports”).

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	•	
              Use
                of Proceeds: The
                entire Offering proceeds, which result from the exchange of currently
                existing debt owed by the Company to GEMH, have been used by the
                Company
                for working capital and general corporate expenses.
                

            

    

    

    

    This
      Subscription Agreement is offered for the purpose of GEMH considering the
      ramifications of its investment in the Offering as described above. If after
      reviewing this Subscription Agreement and other relevant documents with the
      your
      legal, financial, tax and investment advisors as you deem appropriate you elect
      to purchase Securities, please complete the following: 

    

    By
      executing this Agreement and returning it to the Company, you further agree
      that
      your investment is being made entirely on the terms and conditions stated herein
      and in the documents attached hereto. You understand that this Subscription
      Agreement is not binding until the Company accepts it in writing.

    

    Caveat:
      Certain statements contained herein and included in other documents which have
      been given to you (including the Company’s reports filed pursuant to the
      requirements of the 1934 Act) using the terms “may,” “expects to” and other
      terms denoting future possibilities, are forward-looking statements. We cannot
      guarantee the accuracy of these statements as they are subject to a variety
      of
      risks, which are beyond our ability to predict or control. These risks may
      cause
      actual results to differ materially from the projections or estimates given
      to
      you. These risks include, but are not limited to, the possibility that the
      described operations or other activities will not be completed on economic
      terms, if at all. Our contemplated operations are attendant with high risk.
      There can be no assurance that we will succeed in operating our contemplated
      business, and it is important that each person considering and investment
      pursuant to this Subscription Agreement understands the significant risks,
      which
      accompany the proposed conduct of our future operations.

    

    In
      connection with your proposed purchase of the Series B Stock, you further
      represent as follows:

    

    1. You
      understand that an investment in the Series B Stock is one of significant risk,
      and there can be no assurance that the Series B Stock, or the common stock
      into
      which it is convertible, will ever be valuable, or that the Company will ever
      be
      able to actually receive the support and favorable vote of a majority of its
      shareholders to authorize the increase of its common stock. You understand
      that
      currently the Company has no available common stock and that it has reached
      the
      limits of its currently authorized common stock. You further understand that
      the
      Company will make its best efforts to seek and receive the approval of a
      majority of its shareholders for an increase in its authorized common stock
      sufficient to allow you to convert your Series B Stock into common stock of
      the
      Company, but that the Company cannot guarantee such an outcome. If the Company
      is unable to secure the approval of a majority of its shareholders for an
      increase in its authorized stock, then you will remain the holder of Series
      B
      Stock only. The risks associated with an investment of the Series B Stock are
      those set out in this paragraph, as well as those that are set forth in the
      Company’s 1934 Act Reports filed with the U.S. Securities and Exchange
      Commission and available on its EDGAR electronic filing service, or also
      available through the Company website, www.geii.com, or have been made available
      to you from the Company upon request. By signing this Subscription Agreement,
      you represent and warrant to the Company that you are familiar with, and are
      willing to accept, all such risks.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    2. You
      acknowledge that you may lose your entire investment in the Series B Stock.
      You
      hereby represent that an investment in the Series B Stock is a suitable
      investment for you, taking into consideration the restrictions on
      transferability and the other considerations affecting the Series B Stock and
      the Company as described herein, and in the documents included with this
      Subscription Agreement and in the due diligence investigation that you have
      made.

    

    3. You
      will
      acquire the Series B Stock for your own account and not on behalf of any other
      person or entity. You will acquire the Series B Stock for investment purposes
      and not for resale or distribution to any other person.

    

    4. You
      are
      not aware of the payment of any commission or other remuneration to any person
      in connection with the execution of this transaction or the purchase of the
      Series B Stock.

    

    5. We
      have
      provided you with access to the Company’s 1934 Act Documents, disclosure on the
      Company’s website, press releases, and updated information. You are aware that,
      unless the Company is able to raise a substantial amount of money, the Company
      may not be able to continue in business. Currently the Company is not able
      to
      pay all of its debts as they have become due. Your debt is an example of this
      problem. We have given you the opportunity to ask questions of and to receive
      answers from us about the terms and conditions of this Offering, and we also
      have given you the opportunity to obtain any additional information regarding
      the Company, which we possess or can acquire without unreasonable effort or
      expense including (without limitation) all minutes of meetings of our Board
      of
      Directors or committees, and other relevant documents you have requested. We
      have also given you the opportunity to speak with our independent auditors,
      and
      you have done so to the extent you have deemed it to be necessary or
      appropriate. In addition, you have made such other financial or other inquiry
      as
      you have deemed necessary or appropriate in the conduct of your due diligence
      investigation. You have not relied on due diligence of any other party in
      connection herewith.

    

    6. You
      acknowledge and understand, however, that we have not authorized any person
      to
      make any statements on our behalf, which would in any way contradict any of
      the
      information that we have provided to you in writing, including the information
      set forth in this Subscription Agreement or in the 1934 Act Documents. You
      further represent to the Company that you have not relied upon any such
      representations regarding the Company, its business or financial condition
      or
      this transaction in making any decision to acquire the Series B Stock. If you
      become aware of conflicting information, you will discuss this with
      us.

    

    7. Your
      present financial condition is such that it is unlikely that it would be
      necessary for you to dispose of the Series B Stock in the foreseeable future.
      You further understand and agree that:

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      	 	
              a.

            	
              Neither
                the Series B Stock nor the shares of common stock issuable upon conversion
                of the Series B Stock have been registered under the Series A Stock
                Act of
                1933 or any state or foreign securities laws and, consequently are
                and
                will continue to be restricted securities within the meaning of Rule
                144
                promulgated under the 1933 Act and applicable state
                statutes;

            

    

    

    
      	 	
              b.

            	
              You
                cannot resell the Series B Stock or the shares of common stock issuable
                upon conversion of the Series B Stock unless they are registered
                under the
                1933 Act and any applicable state securities laws or unless an exemption
                from the registration requirements is
                available;

            

    

    

    
      	 	
              c.

            	
              As
                a result, you must bear the economic risks of the investment in the
                Series
                B Stock and the shares of common stock issuable upon conversion of
                the
                Series B Stock for an indefinite period of
                time;

            

    

    

    
      	 	
              d.

            	
              The
                Company is the only person that may register the Series B Stock or
                the
                shares of common stock issuable upon conversion of the Series B Stock
                under the 1933 Act and state securities statutes, and we have not
                made any
                representations to you regarding any possible future registration
                of the
                Series B Stock or compliance some exemption under the 1933
                Act;

            

    

    

    
      	 	
              e.

            	
              You
                will not sell or attempt to sell the Series B Stock or the shares
                of
                common stock issuable upon conversion of the Series B Stock without
                registration under the 1933 Act and any applicable state securities
                laws,
                unless exemptions from such registration requirements are available
                and
                the undersigned has satisfied the Company that an exemption is available
                for such sale;

            

    

    

    
      	 	
              f.

            	
              The
                Company has the right to issue instructions to its transfer agent
                to bar
                the transfer of any of the certificates representing the Series B
                Stock
                and the shares of common stock issuable upon conversion of the Series
                B
                Stock except in accordance with the 1933 Act;
                and

            

    

    

    
      	 	
              g.

            	
              You
                consent to the placement of an appropriate restrictive legend or
                legends
                on any certificates evidencing the Series B Stock and any certificates
                issued in replacement or exchange therefor, as well as any certificates
                issued representing the shares of common stock issuable upon conversion
                of
                the Series B Stock. 

            

    

    

    8. You
      have
      reviewed this Subscription Agreement and all information you have obtained
      regarding the Company, its proposed business, assets, management, financial
      condition, capitalization and share ownership and plan of operations with your
      legal, financial, tax and investment advisors to the extent that you have
      determined that it is appropriate or necessary for you to do so prior to
      committing to make an investment herein. Your review has included (without
      limitation) the following documents:

    

    
      	 	
              a.

            	
              The
                Company’s articles of incorporation, including amendments thereto, and
                bylaws;

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	 	
              b.

            	
              The
                Designation;

            

    

    

    
      	 	
              c.

            	
              Minutes
                of meetings or Statements of Consents of the Company’s Board of
                Directors;

            

    

    

    
      	 	
              d.

            	
              The
                Company’s 1934 Act Documents; and

            

    

    

    
      	 	
              e.

            	
              Such
                other documents as you or your advisors have determined
                appropriate.

            

    

     

    9. You
      represent and warrant that you have reviewed a the way in which your original
      loan proceeds were used, which loan you are now exchanging for Series B Stock
      in
      the Company, and are satisfied with the use of proceeds and have no objections
      thereto.

    

    10. We
      may
      amend or modify this Agreement only in writing signed by both you and the
      Company. No evidence shall be admissible in any court concerning any alleged
      oral amendment hereof.

    

    11. This
      Agreement binds and inures to the benefit of our respective representatives,
      successors and permitted assigns.

    

    12. Each
      of
      us hereto agrees for ourselves and our successors and permitted assigns to
      execute any and all further instruments necessary for the fulfillment of the
      terms of this Agreement.

    

    13. You
      acknowledge that the Company is relying on the accuracy of the representations
      and warranties you are making in this Agreement, and you agree to indemnify
      the
      Company, and to hold us harmless from and against any and all liability that
      may
      result to us (including court costs and attorneys’ fees) as a result of any of
      your representations or warranties being materially inaccurate, incomplete
      or
      misleading.

    

    14. You
      acknowledge that you have reviewed the definition of the term “accredited
      investor” as set forth following your signature and you represent and warrant to
      us that you are an “accredited investor.”

    

    15. This
      Agreement is made under, shall be construed in accordance with and shall be
      governed by the laws of the State of Colorado.

    

    16. This
      Agreement is not effective unless and until it is accepted in writing by the
      Company, regardless whether the Company has received or deposited the
      subscription amount.

    

    IN
      WITNESS WHEREOF, subject to our acceptance, you have completed this Subscription
      Agreement and tendered payment as set forth above to evidence your commitment
      to
      purchase the Series B Stock on the terms, and with the representations and
      warranties set forth above.

    

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	 	(Investor)
	
              Date:
                December 29, 2006

            	 	 
	 	
              By:

            	
               /s/
                Bruce H. Penrod

            
	 	 	
              Golden
                Eagle Mineral Holding, Inc.

            

    

    Name:
      Bruce
      H. Penrod

    
      	
              Address:
                ___________________

            	
              Title:______________________

            
	
              ____________________________

            	 
	
              ____________________________

            	
              Tax
                ID #:___________________

            

    

    

    Form
      (circle one): individual (corporation) partnership ltd.liab.co. trust
      other_______________

    

    SUBSCRIPTION
      ACCEPTED AND RECEIPT OF CONSIDERATION ACKNOWLEDGED:

    

    
      	 	
              GOLDEN
                EAGLE INTERNATIONAL, INC.

            
	 	 	 
	
              December
                29, 2006

            	
              By:
                

            	/s/
              Terry C. Turner
	
               

            	 	
              Terry
                C. Turner, President

            

    

    

    

    

    DEFINITION
      OF “ACCREDITED
      INVESTOR”

    

    

    Section
      2(15) of the 1933 Act:

    

    (15)
      The
      term “accredited investor” shall mean B

    

    (i)
      a
      bank as defined in section 3(a)(2) of the Act whether acting in its individual
      or fiduciary capacity; an insurance company as defined in section 2(13) of
      the
      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 Small Business administration;
      or an employee benefit plan, including an individual retirement account, which
      is subject to the provisions 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, insurance company, or
      registered investment advisor; or

    

    (ii)
      any
      person who, on the basis of such factors as financial sophistication, net worth,
      knowledge, and experience in financial matters, or amount of assets under
      management qualifies as an accredited investor under rules and regulations
      which
      the Commission shall prescribe.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    Rule
      215. Accredited Investor

    

    The
      term
“accredited investor” as used in section 2(15)(ii) of the Securities Act of 1933
      shall include the following persons:

    

    (a)
      Any
      savings and loan association or other institution specified in section
      3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity;
      any broker or dealer registered pursuant to section 15 of the Securities and
      Exchange Act of 1934; any 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, if such plan has
      total
      assets in excess of $5,000,000; any employee benefit plan within the meaning
      of
      Title I 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 a savings and loan association, 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;

    

    (b)
      Any
      private business development company as defined in section 202(a)(22) of the
      Investment Advisors Act of 1940;

    

    (c)
      Any
      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;

    

    (d)
      Any
      director, executive officer, or general partner of the issuer of the securities
      being offered or sold, or any director, executive officer, or general partner
      of
      a general partner of that issuer;

    

    (e)
      Any
      natural person whose individual net worth, or joint net worth with that person’s
      spouse, at the time of his purchase exceeds $1,000,000;

    

    (f)
      Any
      natural person who had an individual income in excess of $200,000 in each of
      the
      two most recent years or joint income with that person’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;

    

    (g)
      Any
      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
      sophisticated person as described in Rule 506(b)(2)(ii); and

    

    (h)
      Any
      entity in which all of the equity owners are accredited investors.

    

    Guidelines
      for Calculating Net Worth:

    

    Any
      valuation of a residence included in the calculation of net worth must be based
      on an appraisal obtained by the Investor in connection with obtaining a loan
      secured by such residence.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    

    Marketable
      securities owned by the Investor included in the calculation of net worth must
      be based on a recent market value, with appropriate discounts for lack of
      marketability if the securities represent greater than a 10% interest in the
      issuer, if the securities are “restricted shares” or subject to any contractual
      or other restriction, if the securities are thinly traded, or for other
      appropriate reasons.

    

    Any
      valuation of any other asset with a value in excess of $100,000 must be based
      on
      an independent valuation or appraisal.

    

    Guidelines
      for Calculating Net Income:

    

    For
      the
      purposes of determining whether an Investor is an “accredited investor,” net
      income must be calculated based on its adjusted gross income as reported to
      the
      Internal Revenue Service (for U.S. taxpayers) or other similar measure (for
      non-U.S. taxpayers).

    

    Substantiation
      of Net Worth and Net Income:

    

    Golden
      Eagle International, Inc. (the “Company”) is relying on the accuracy of each
      Investor’s representations and warranties with respect to its status as an
      accredited investor. The Company is aware that personal financial matters are
      private and confidential, and will endeavor to maintain all information
      contained in the subscription agreement or otherwise obtained confidential.
      In
      case of any question, however, the Company may request substantiation of the
      Investor’s status by discussing the issue with the Investor’s banker, attorney,
      accountant, or investment advisor. If questions develop, the Company will
      contact the Investor before seeking any independent confirmation. 

    

    
      
         

      

        
        8

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