Document:

COMMON STOCK RESCISSION AND EXCHANGE AGREEMENT

 

THIS COMMON STOCK RESCISSION AND EXCHANGE AGREEMENT ("Agreement"), executed the 31st day
of December, 2010, is by and between Grant Hartford Corporation, a Montana Corporation, (hereinafter referred
to as the "Company") and Tim Matthews an individual (hereinafter referred to as "Mr. Matthews").

Grant Hartford Corporation is a Montana Corporation, whose office is at 2620 Connery Way,
Missoula, MT  59808 (the "Company"), and Mr. Matthews is an individual who resides at 3641 E. Easter Circle North,
Littleton, CO  80122.

WHEREAS, the Company desires to rescind its issuance of, and Mr. Matthews desires to return to
the Company's Treasury, the no par value common stock issued to Mr. Matthews pursuant to a Resolution by the Board
of Directors and that certain Amended Employment Agreement dated January 25, 2010, which amended the Employment
Agreement entered into on April 24, 2009 and the Amended Employment Agreement entered into on July 15, 2009, which
were entered into by and between the Company and Mr. Matthews (the "Employment Agreement").  Hereinafter these shares
of common stock shall be referred to as the "Rescission Shares" and were issued as follows:

	
  a)

  	
  On January 5, 2010, the Company issued Twenty-Five Thousand (75,000) shares of the Company's
no par value common stock at $1.00 per share, pursuant to the Employment Agreement terms.

	
  b)

  	
  On January 25, 2010, the Company issued Fifty Thousand (50,000) shares of the Company's no
par value common stock at $1.00 per share, pursuant to the Employment Agreement terms.

	
  c)

  	
  On March 6, 2010, pursuant to a Board of Directors Resolution and as a continued inducement
for Mr. Matthews' services, Mr. Matthews received an additional bonus of Eighteen Thousand Three Hundred (18,300)
shares of the Company's no par value common stock at $1.00 per share.

	
  d)

  	
  On March 31, 2010, the Company issued Twenty-Five Thousand (25,000) shares of the Company's
no par value common stock at $1.00 per share, pursuant to the Employment Agreement terms.

NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree to
rescind the issuance of the Rescission Shares, return the same to the Company's Treasury, and exchange those
Rescission Shares for Common Stock Warrants for the purchase of up to Two Hundred Thirty-Six Thousand Six Hundred
(236,600) shares of the Company's no par value common stock at an exercise price of One Dollar ($1.00) per share
("Warrants").  The Warrants shall be exercisable for a period of five years from the date of this Agreement and
shall contain a cashless exercise provision.

Page 1

IN WITNESS WHEREOF, the parties have executed this Agreement in Denver, Colorado, on the date and
year first above written.

	
Mr. Matthews:
	
COMPANY:

	
Tim Matthews
	

Eric Sauve, President, CEO and CFO
Grant Hartford Corporation

	

By:     
This 31st day of December, 2010
	

By:     
This 31st day of December, 2010

Page 2COMMON STOCK RESCISSION AND EXCHANGE AGREEMENT

 

THIS COMMON STOCK RESCISSION AND EXCHANGE AGREEMENT ("Agreement"), executed the 31ST day of
December, 2010, is by and between Grant Hartford Corporation, a Montana Corporation, (hereinafter referred to
as the "Company") and BJ Ambrose an individual (hereinafter referred to as "BJ").

Grant Hartford Corporation is a Montana Corporation, whose office is at 2620 Connery Way,
Missoula, MT  59808 (the "Company"), and BJ is an individual who resides at 5596 E. Hinsdale Circle, Centennial,
CO  80122.

WHEREAS, the Company desires to rescind its issuance of, and BJ desires to return to the Company's
Treasury, the no par value common stock issued to BJ pursuant to a Resolution by the Board of Directors and that
certain Employment Agreement dated March 1, 2010 by and between the Company and BJ (the "Employment Agreement").
Hereinafter these shares of common stock shall be referred to as the "Rescission Shares" and were issued as follows:

	
  a)

  	
  On January 5, 2010, the Company issued Seventy-Five Thousand (75,000) shares of the Company's no
par value common stock at $1.00 per share, pursuant to the Employment Agreement terms.

	
  b)

  	
  On March 6, 2010, pursuant to a Board of Directors Resolution and as a continued inducement for
BJ's services, BJ received an additional bonus of One Hundred Thirty-Eight Thousand Eight Hundred (138,800) shares
of the Company's no par value common stock at $1.00 per share.

	
  c)

  	
  On March 31, 2010, the Company issued Twenty-Five Thousand (25,000) shares of the Company's no par
value common stock at $1.00 per share, pursuant to the Employment Agreement terms.

NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree to rescind
the issuance of the Rescission Shares, return the same to the Company's Treasury, and exchange those Rescission Shares
for Common Stock Warrants for the purchase of up to Four Hundred Seventy-Seven Thousand Six Hundred (477,600) shares of
the Company's no par value common stock at an exercise price of One Dollar ($1.00) per share ("Warrants").  The Warrants
shall be exercisable for a period of five years from the date of this Agreement and shall contain a cashless exercise
provision.

Page 1

IN WITNESS WHEREOF, the parties have executed this Agreement in Denver, Colorado, on the date and
year first above written.

	
BJ:
	
COMPANY:

	

BJ Ambrose
Vice President of Corporate Finance 
and Marketing
	
Eric Sauve, President, CEO and CFO
Grant Hartford Corporation

	

By:     
This 31st day of December, 2010
	

By:     
This 31st day of December, 2010

Page 2Exhibit 10.1

 

December 21, 2010

 

Vance E. Powers

 

Dear Vance:

 

RE: OFFER OF EMPLOYMENT

 

On behalf of Niska Gas Storage, we are pleased to make you an employment offer for the position of Chief Financial Officer. Your offer reflects our view that your credentials and track record will enable you to contribute to Niska Gas Storage’s overall success. We look forward to having you commence your full time employment on January 1, 2011.

 

1.               Compensation - You will receive a base gross salary of $220,000.00 USD per year ($18,333.33 gross/month).  You will be paid in approximately equal proportions on the 15th and final day of each month. Income tax and statutory withholdings and customary deductions will be deducted at source.

 

2.               Vacation — You are entitled to 5 weeks vacation per year (25 days), prorated from your start date.  The vacation reference year is April 1st to March 31st.  You can carry over up to one week into the first three months of the following vacation year.  Otherwise, all vacation earned during a vacation year must be taken prior to the end of that year.  Based on your experience you have been assessed 23 years of credited service.

 

3.               Flex Days - You will receive 2 flex days per quarter prorated to your hire date.

 

4.               Medical/Dental/Extended Health Benefits — Please see attached document for a summary of our US Benefits. For additional information regarding the benefit plan, please contact Sheila Engstrom at Mercer (503-273-3808 or 1-800-275-5892).

 

5.               401K  — Fidelity Investments.  The 401K plan is initiated upon completion of the required forms.  Employee will receive a company match up to 5% of their contributions.  Niska Gas Storage also makes a profit sharing contribution of 6% of your eligible salary.

 

6.               Target Cash Bonus — Your 2010/2011 short term target cash bonus is 50% of base salary. It should not be assumed that bonus payments are a guarantee; therefore, payments are based on the employee’s performance.  Please note that future bonus targets and subsequent payments are made at the discretion of management.

 

7.               Long Term Incentive Plan — will be determined at a later date at the board’s discretion.

 

Your employment with the Company is conditional upon:

 

·                 You are legally entitled to work in Canada.

 

This offer of employment shall remain open until noon on Thursday, December 23rd at 12:00 pm.  Should you have any questions, please feel free to contact the HR Department at 403-513-8625.

 

	
Sincerely,
  	
 
  
	
Niska Gas Storage
  	
 
  
	
 
  	
 
  
	
/s/ David Pope
  	
 
  
	
 
  	
 
  
	
Dave Pope
  	
 
  
	
President & C.E.O.
  	
 
  

 

1

 

Niska Gas Storage

400, 607 8th Ave SW

Calgary, AB T2P 0A7

 

	
Attention: 
  	
Darren Brown
  
	
 
  	
Darren.brown@niskags.com
  
	
 
  	
Fax: 1-866-333-5320
  

 

I am pleased to inform you that I have accepted your offer to join Niska Gas Storage commencing January 1, 2011, in accordance with the details of your offer of employment letter dated December 21, 2010.

 

 

	
/s/ Michelle H. Powers
  	
 
  	
/s/ Vance Powers
  
	
Witness Signature
  	
 
  	
Signature
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
Michelle H. Powers
  	
 
  	
12-21-2010
  
	
Witness Name (Printed)
  	
 
  	
Date
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
12-21-10
  	
 
  	
925 087 140
  
	
Date
  	
 
  	
Social Insurance NumberExhibit 10.1

 

GENERAL MOLY, INC.

1736 COLE BLVD., SUITE 115
 LAKEWOOD, COLORADO 80401

 

December 21, 2010

 

CONFIDENTIAL

 

CCM Master Qualified Fund, Ltd.

c/o Coghill Capital Management, LLC

One North Wacker Drive, Suite 4350

Chicago, IL 60606

 

Agreement to Reprice and Exercise Warrants

 

Dear Ladies and Gentlemen:

 

This letter agreement sets forth the agreement between General Moly, Inc., a Delaware corporation (the “Company”), and CCM Master Qualified Fund, Ltd. (the “Holder”) regarding (i) an amendment to the exercise price of warrant nos. 1-06A and 29-06A  (the “Original Warrants”) to purchase an aggregate of 2,948,028 shares (the “Warrant Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and (ii) the Holder’s agreement to exercise the warrants (as amended hereby, the “Amended Warrants”).

 

Accordingly, the Holder and the Company hereby agree as follows:

 

1.             Amendment to the Original Warrants.  On the terms and subject to the conditions of this letter agreement and in reliance upon the representations, warranties and agreements contained herein, the Company and the Holder hereby agree that the second sentence of the first paragraph of each of the Original Warrants is hereby amended to read as follows:

 

“The price for each share of Common Stock purchased hereunder (as adjusted as set forth herein, collectively the “Warrant Shares”) is $3.75 per share until expiration of this Warrant (as adjusted as set forth herein, the “Purchase Price”); provided, however, that if the Holder exercises and duly surrenders the Warrant in whole on January 3, 2011, together with payment of the aggregate Purchase Price in immediately available funds, in accordance with Section 1(A) hereof, the Purchase Price shall be $3.66 per share.”

 

2.             Exercise of the Amended Warrants.  (a)  On the terms and subject to the conditions of this letter agreement and in reliance upon the representations, warranties and agreements contained herein, on January 3, 2011, or on such other date as the

 

 

Company may agree in writing (the “Closing Date”), the Holder shall present and surrender the Original Warrants and the purchase forms attached as Annex I to each of the Original Warrants (the “Purchase Forms”), together with immediately available funds equal to $10,789,782.48, the aggregate purchase price for 2,948,028 Warrant Shares (the “Aggregate Purchase Price”) by wire transfer in accordance with wire instructions to be delivered in writing to the Holder by the Company prior to the Closing Date.

 

(b)           Upon receipt of the Original Warrants, the Purchase Forms and the Aggregate Purchase Price, the Company shall on the Closing Date issue and deliver to the Holder a certificate representing the Warrant Shares. The Warrant Shares shall bear the legend required by Sections 6 and 7 of this letter agreement.

 

3.             Conditions to Closing.  The obligations of the Company and the Holder hereunder to consummate the transactions contemplated by this letter agreement are subject to the satisfaction of each of the following conditions:

 

(a)           Each of the representations and warranties of the Company and the Holder contained in Section 5 and Section 4, respectively, of this letter agreement shall be true and correct in all material respects on and as of the Closing Date with the same effect as though such representations and warranties had been made on and as of the Closing Date.

 

(b)           Each of the Company and the Holder shall in all material respects have performed, satisfied and complied with all of its respective covenants, agreements and conditions contained in this letter agreement that are required to be performed, satisfied or complied with by it on or before the Closing Date.

 

4.             Representations and Warranties of the Holder. The Holder hereby represents and warrants to the Company as follows:

 

(a)           This letter agreement has been duly authorized, executed and delivered by the Holder and constitutes the legal and binding agreement of the Holder, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors’ rights generally or general principles of equity; the Holder has full power and authority to execute and deliver this letter agreement and to perform its obligations hereunder.

 

(b)           The Holder has good and valid title to the Original Warrants and owns and holds the entire right, title, and interest in and to the Original Warrants, free and clear of any liens, claims or encumbrances (other than those arising as a result of this letter agreement) and the Original Warrants are not subject to any contract, agreement, arrangement, commitment or understanding restricting or otherwise relating to the disposition of the Original Warrants.

 

(c)           The Holder understands each of the following statements in this Section 3(c).  The Warrant Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are being issued in reliance upon an exemption from the registration requirements of the Securities Act.

 

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(d)           The Holder understands that the certificate representing the Warrant Shares will bear the legend required by Sections 6 and 7 of this letter agreement.

 

(e)           The Holder has such knowledge, sophistication and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Warrant Shares. The Holder acknowledges that it understands the risks inherent in an investment in the Warrant Shares and that it has the financial ability to bear the economic risk of, and to afford the entire loss of, its investment in the Warrant Shares.

 

5.             Representations, Warranties and Covenants of the Company. The Company hereby represents and warrants to the Holder as follows:

 

(a)           The Company has all requisite corporate power and authority to enter into this letter agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  This letter agreement has been duly authorized, executed and delivered by the Company and constitutes the legal and binding agreement of the Company, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors’ rights generally or general principles of equity.

 

(b)           The Warrant Shares have been duly and validly authorized and, when issued in accordance with the terms of this letter agreement, will be validly issued, fully paid and non-assessable and not subject to any preemptive rights or similar rights.

 

(c)           The Company covenants and agrees that, as promptly as practicable after the Closing Date, it will file a supplement to the prospectus relating to its effective Shelf Registration Statement on Form S-3 (File No. 333-170389) (the “Shelf Registration Statement”) with the Securities and Exchange Commission in order to permit the Holder to resell the Warrant Shares held by it under the Shelf Registration Statement; provided that the Company shall not be required to take any action to name the Holder as a selling stockholder in the Shelf Registration Statement or to enable the Holder to use the prospectus forming a part thereof for resales of Warrant Shares unless and until the Holder returns to the Company a completed and signed questionnaire with information required by the Company.

 

6.             Transfer Restrictions.

 

(a)           Every Warrant Share (and all securities issued in exchange therefor or in substitution thereof) held by the Holder is required to bear the restricted security legend set forth in Section 7(a) of this letter agreement (the “Restricted Securities”) held by the Holder shall be subject to the restrictions on transfer set forth in this Section 6 (including those set forth in the restricted security legend set forth in Section 7(a)) unless such restrictions on transfer shall be waived by written consent of the Company following receipt of legal advice supporting the permissibility of the waiver of such transfer restrictions, and the holder of each such Restricted Security, by such holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer.  As used in this Section

 

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6(a), the term “transfer” means any sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any interest therein.

 

(b)           Until such date as may be required by applicable laws, any certificate evidencing a Restricted Security shall bear a legend in substantially the form set forth in Section 7(a), as the restricted security legend, unless such Restricted Security has been sold pursuant to a registration statement that has been declared effective under the Securities Act (and which continues to be effective at the time of such transfer) or sold pursuant to Rule 144 under the Securities Act or any similar provision then in force, or unless otherwise agreed by the Company in writing as set forth above.

 

(c)           Any Warrant Shares that were Restricted Securities and as to which such restrictions on transfer shall have expired in accordance with their terms or applicable law or as to conditions for removal of the restricted security legend set forth therein have been satisfied, the Company will use commercially reasonable efforts to provide that the Holder may, upon surrender of such Warrant Shares for exchange to the registrar for the Warrant Shares in accordance with the provisions of this Section 6, be exchanged for a new Warrant Share or Warrant Shares, which shall not bear the restrictive legend required by Section 6(a).

 

7.             Restrictive Legend.  Every Warrant Share (and all securities issued in exchange therefor or in substitution thereof) is required to bear a restricted security legend substantially in the following form (in addition to any legend required by applicable state securities or “blue sky” laws):

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF (I) SUCH REGISTRATION OR (II) AN EXEMPTION THEREFROM AND, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.  HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

 

8.             Notices. All notices and other communications under this letter agreement shall be in writing and shall be deemed given when (i) delivered personally, with written confirmation of acceptance of delivery by the receiving party, (ii) one business day after being delivered to a nationally recognized overnight courier, with written confirmation of acceptance of delivery by the receiving party or (iii) when telecopied (with a confirmation of transmission received by the sender) to the parties at the following addresses (or at such other address as shall be specified by like notice):

 

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if to the Company, to:

 

General Moly, Inc.
 1736 Cole Blvd., Suite 115
 Lakewood, Colorado 80401
 Attention:  Scott Roswell, Corporate Counsel
 Facsimile No.:  (303) 928-8598

 

with a copy (which shall not constitute notice) to:

 

Holme Roberts & Owen LLP

1700 Lincoln Street, Suite 4100

Denver, Colorado 80203

Attention: W. Dean Salter, Esq.

Facsimile No.: (303) 866-2000

 

if to the Holder, to:

 

CCM Master Qualified Fund, Ltd.

c/o Coghill Capital Management, LLC

One North Wacker Drive, Suite 4350

Chicago, Illinois 60606

Attention:  Jim Schuler, Chief Financial Officer
 Facsimile No.:  (312) 324-2001

 

9.             Confidentiality. Each of the Company and the Holder represent that they have not disclosed any information regarding discussions relating to this letter agreement and have directed their representatives not to disclose any such information. Except as may be required by applicable law or regulatory requirement, neither the Company nor the Holder shall disclose the existence or terms of this letter agreement or any of the provisions contained herein without the prior written consent of the other until the earlier of (x) the Closing Date or (y) five calendar days after the date of this letter agreement; provided, however, that nothing contained herein shall prevent (i) any party from promptly making all filings with any governmental entity or supervisory body (including, without limitation, the Company’s ongoing reporting obligations under the Securities Exchange Act of 1934, as amended, including Item 3.02 of Form 8-K) or disclosures with the stock exchange, if any, on which such party’s capital stock is listed, as may, in its judgment, be required in connection with the execution and delivery of this letter agreement or the consummation of the transactions contemplated hereby or (ii) the Holder from disclosing the terms of this letter agreement to its respective investors and their representatives provided that each such person shall be advised of their obligation not to disclose any such information except as may be required by applicable law or regulatory requirement.  The Company agrees that it will, on or prior to December 23, 2010, either file with the Securities and Exchange Commission a Current Report on Form 8-K disclosing the material terms of this letter agreement and the transactions contemplated hereby or issue a press release disclosing the same.

 

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10.           Governing Law. THIS LETTER AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

11.           Counterparts. This letter agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement.

 

12.           No Third Party Beneficiaries. This letter agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and no other person will have any right or obligation hereunder.

 

13.           Amendment; Waiver; Consent. This letter agreement and its terms may not be changed, amended, waived, terminated, augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto.

 

14.           Costs and Expenses. The Holder and the Company shall each pay their own respective costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this letter agreement, including, but not limited to, attorneys’ fees.

 

15.           Severability.  If any one or more provisions contained in this letter agreement, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 

16.           Further Assurances.  Each of the parties hereto shall from time to time execute and deliver all such further documents and do all such further acts and things as another party may reasonably require to effectively carry out or better evidence or perfect the full intent and meaning of this letter agreement.

 

[Remainder of Page Intentionally Blank]

 

6

 

If the foregoing is in accordance with your understanding of our agreement, please sign where indicated below and deliver a copy of this letter agreement as provided for herein, whereupon this letter agreement shall represent a binding agreement between us.

 

	
 
  	
Very truly yours,
  
	
 
  	
 
  
	
 
  	
GENERAL MOLY, INC.
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Bruce D. Hansen
  
	
 
  	
 
  	
Name: Bruce D. Hansen
  
	
 
  	
 
  	
Title: CEO
  

 

Accepted and agreed to as of
 the date first above written:

 

CCM MASTER QUALIFIED FUND, LTD.

 

	
By:
  	
/s/ Clint D. Coghill
  	
 
  
	
 
  	
Name: Clint Coghill
  	
 
  
	
 
  	
Title: Director
  	
 
  

 

7

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