Document:

ex10-1.htm

MINERAL PROPERTY OPTION AGREEMENT

 

This MINERAL PROPERTY OPTION AGREEMENT (this “Agreement”) is made this 13th day of June, 2012 (the “Effective Date”), by and between Great American Energy, Inc., a Delaware corporation, or its designee, (“Company”) and GeoXplor Corporation, a Nevada corporation (“Optionor”).

 

RECITALS

 

WHEREAS, Optionor controls a 100% interest in and to forty-eight (48) unpatented association placer mining claims comprising approximately 7,680 acres in the immediate Clayton Valley area, nearby the Chemetall Foot lithium brine plant at Silver Peak, Esmeralda County, Nevada identified in Schedule A (the “Property”); and

 

WHEREAS, the Optionor desires to grant to the Company an option to purchase a 100% interest in and to the Property, and the Company desires to acquire an option to purchase a 100% interest in and to the Property, pursuant to the terms described below.

 

NOW THEREFORE, the parties agree as follows:

 

1.           Grant of Option.

 

a.  Grant of Option. The Optionor hereby grants to the Company the sole and exclusive right and option to acquire a 100% legal and beneficial interest in and to the Property free and clear of all liens charges and claims of others (the “Option”).

 

b.  Option Deadline. The Option must be exercised on or before July 1, 2015 (the “Option Deadline”).

 

c.  Option Period. The period of time beginning with the Effective Date and ending with the earlier of the Option Deadline or the “Transfer Date” (as that term is defined in Section 3) is referred to herein as the “Option Period.”

 

d.  Conditions of Exercise; Exercise Notice. Upon the Company’s satisfaction of the “Conditions of Exercise,” as defined and set forth in Section 2 below, the Company may, at its sole and absolute discretion, exercise the Option by providing notice to the Optionor prior to Option Deadline of its intent to exercise the Option (the “Exercise Notice”). Upon satisfaction of the Conditions of Exercise and delivery of the Exercise Notice, the Optionor shall be deemed to have transferred to the Company a 100% interest in and to the Property, such transfer to take effect in accordance with Section 3 below.

 

2.           Conditions of Exercise.

 

a.  Exercise of Option. The Company may exercise the Option to acquire a 100% legal and beneficial interest in and to the Property free and clear of all liens, charges, and claims of others by satisfying the conditions set forth in this Section 2 (the “Conditions of Exercise”).

 

  

1

  

 

b.  Cash Payments. During the Option Period, the Company shall make cash payments to the Optionor totaling Five Hundred Seventy Five Thousand Dollars ($575,000) according to the following schedule:

 

	
i.  

	
$75,000 on the Effective Date;

 

	
ii.  

	
an additional $75,000 on or before September 15, 2012;

 

	
iii.  

	
an additional $100,000 on or before October 15, 2012;

 

	
iv.  

	
an additional $100,000 on or before December 15, 2012;

 

	
v.  

	
an additional $50,000 on or before February 15, 2013;

 

	
vi.  

	
an additional $50,000 on or before June 15, 2013;

 

	
vii.  

	
an additional $75,000 on or before December 15, 2013; and

 

	
viii.  

	
an additional $50,000 on or before June 15, 2014.

 

c.  Work Commitment.  The Company will provide funds for the conduct of a program of “Work,” as that term is defined below, to be undertaken by the Optionor for the benefit of the Property of not less than Eight Hundred Thousand Dollars ($800,000) according to the following schedule (the “Work Commitment”):

 

	
i.  

	
$100,000 on or before June 15, 2013;

 

	
ii.  

	
a total of $400,000 on or before June 15, 2014; and

 

	
iii.  

	
a total of $800,000 on or before June 15, 2015.

 

As used in this Agreement, the term ‘Work” shall mean any activity related to the evaluation of the presence and the quantity and quality of lithium mineralization upon and under the Property, the maintenance of the Property, and the salaries and wages (including fringe benefits) of employees of the Optionor and contractors engaged by Optionor.  “Work” shall also include any cost of acquisition of additional ground under the mining law of the United States of adjacent ground.

 

d.  Work Commitment Shortfall.  If the Company, by the Option Deadline, has not incurred or funded the total amount of the Work Commitment required under this Section, the Company may pay to the Optionor an amount equal to such shortfall in Work Commitment within thirty (30) days after the Option Deadline.  Any payment so made shall be deemed to be Work Commitment duly and properly incurred within the Option Period for the purposes of the Conditions of Exercise.

 

  

2

  

 

3.           Transfer of Property

 

a.  Transfer Date.  Upon satisfaction of Conditions of Exercise and delivery of the Exercise Notice (the date of such occurrence being referred to herein as the “Transfer Date”), the Optionor shall be deemed to have transferred to the Company a 100% interest in and to the Property free and clear of all liens, charges, and claims of others and the Optionor shall deliver to the Company such documentation as may be necessary to record the transfer with the State of Nevada, and any other appropriate government entity.  The Optionor will provide any further assistance as may be reasonably required for the Company to perfect the Company’s interest in the Property.

 

b.  Optionor Deliverables.  At the Transfer Date, Optionor shall deliver the following documents to the Company:

 

	
i.  

	
The Mining Deed (with special warranties against claims arising by and through the Optionor) in substantially the form of Schedule C;

 

	
ii.  

	
An officer’s certificate in the form satisfactory to the Company’s counsel certifying that the Conditions of Exercise have been satisfied;

 

	
iii.  

	
A secretary’s certificate in the form satisfactory to the Company’s counsel relating to incumbency and corporate proceedings authorizing the transactions contemplated by this Agreement;

 

	
iv.  

	
Such other documents as may be reasonably requested by the Company in connection with the consummation of transfer of the Property contemplated by this Agreement.

 

c.  Company Deliverables.  At the Transfer Date, the Company shall deliver the following documents to Optionor:

 

	
  

	
i.

	
Copies, certified by the appropriate governmental official of the slate of Nevada as of a date not more than ten (10) days prior to the Transfer Date, of its articles of incorporation and all amendments thereto;

 

	
  

	
ii.

	
A secretary’s certificate in the form satisfactory to Optionor’s counsel relating to incumbency and corporate proceedings authorizing the transactions contemplated by this Agreement;

 

	
  

	
iii.

	
Royalty Deed conveying the royalty, as defined in paragraph 3 above to Optionor; and

 

	
  

	
iv.

	
Such other documents as may be reasonably requested by Optionor in connection with the consummation of the transactions contemplated by this Agreement.

 

  

3

  

 

4.           Net Returns Royalty

 

At the Transfer Date, the Company will convey to Optionor a three percent (3%) Net Returns Royalty (the “Royalty”) on the Property as defined in Schedule B. Within such conveyance, the Company will be granted an option, for a term of 20 years from and after the Transfer Date, to purchase up to 2% of the 3% Royalty (that is, leaving the Optionor not less than a 1% Royalty) of the Royalty conveyed by paying Optionor One Million Dollars ($1,000,000) for each 1% of the Royalty.

 

5.           Operator

 

During the Option Period, Optionor (with funds advanced by the Company shall perform and conduct all necessary exploration of the Property to undertake the Work Commitment described in Section 2. The Company and Optionor shall separately execute a consulting agreement for the conduct of such work.

 

6.           Covenants of Optionor.

 

Optionor hereby covenants and agrees with the Company that:

 

	
i.  

	
During the Option Period, except as may be first approved in writing by the Company or as is otherwise permitted or contemplated by this Agreement, Optionor shall conduct its business and all transactions with respect to the Property, only in the usual and ordinary course of business consistent with Optionor’s past practice, and

 

	
ii.  

	
During the Option Period, Optionor shall make no sale of assets other than in the ordinary course of Optionor’s past practice.

 

7.           Right of Entry

 

a.  Right of Entry. During the Option Period, the Company and its agents, employees and independent contractors, shall have the right, with respect of the property, to:

 

	
i.  

	
Enter in, under and upon the Property;

 

	
ii.  

	
Have quiet possession of the Property;

 

	
iii.  

	
Do such prospecting, exploration, development and or other mining work thereon and there-under as it in its sole discretion may determine advisable;

 

	
iv.

	
Bring upon and erect upon the Property buildings, plant, machinery and equipment as the Company may deem advisable; and

 

	
v.  

	
Remove from the Property and dispose of the ores, minerals and metals for the purpose of obtaining assays or making other tests, or for their sale.

 

8.           Condition of the Property.

 

a.  As-Is Condition. The Company agrees that upon exercise of the Option, the Company shall take possession of the Property in its AS IS, WHERE IS condition and acknowledges that it has previously been given the opportunity to and has conducted such investigations and inspections of the Property as it has deemed necessary or appropriate for the purposes of this Agreement.

 

b.  No Warranties. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, OPTIONOR DOES NOT MAKE ANY EXPRESS OR IMPLIED REPRESENTATIONS, STATEMENTS, WARRANTIES, OR CONDITIONS OF ANY KIND OR NATURE WHATSOEVER CONCERNING THE PROPERTY, INCLUDING (WITHOUT LIMITING THE GENERALITY OF THE FOREGOING) ANY WARRANTIES REGARDING THE OWNERSHIP, CONDITION, QUANTITY AND/OR QUALITY OF ANY OR ALL OF THE PROPERTY.

  

4

  

 

9.           Conditions Precedent.

 

The performance by Optionor and the Company of their respective obligations under this Agreement is subject to the condition that on the Effective Date no suit, action or other proceeding shall be pending before any court or governmental or regulatory authority which seeks to restrain or prohibit or to obtain damages or other relief in connection with this Agreement or the consummation of the transactions contemplated by this Agreement.

 

10.           Indemnity.

 

The Company shall indemnify, defend and hold Optionor harmless from and against any and all losses, liabilities, damages, costs and obligations (or actions or claims in respect thereof) (including reasonable counsel fees), which Optionor may suffer or incur arising out of or based upon the use of any of the Property after the Transfer Date.

 

11.           Notices.

 

Any notice required or permitted by this Agreement shall be in writing and effectively delivered for all purposes if delivered personally, by overnight delivery service or by United States mail, certified mail, postage prepaid, return receipt requested and:

 

	
If directed to Optionor:

 

GeoXplor Corporation

3655 West Anthem Way

Suite 109-293

Anthem, AZ 85086

	
 

If directed to the Company:

 

Great American Energy, Inc.

999 18th Street, Suite 3000

Denver, CO 80202

 

All notices shall be deemed delivered upon receipt.

 

12.           Brokers.

 

The Company and Optionor each warrants to the other that it has not engaged, consented to, or authorized any broker, investment banker, or other third party to act on its behalf, directly or indirectly, as a broker or finder in connection with the transactions contemplated by this Agreement and no such third party is entitled to any fee or compensation in connection with this Agreement or the transactions contemplated hereby by reason of any action of it.

 

 

  

5

  

 

 

13.           Amendment and Modification.

 

This Agreement may be amended, modified or supplemented only by written agreement of the Company and Optionor.

 

14.           Severability.

 

Any provision of this Agreement that shall be prohibited or unenforceable shall be deemed ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.

 

15.           Entire Agreement.

 

This Agreement sets forth all of the promises, covenants, agreements, conditions and undertakings between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and undertakings, inducements or conditions, express or implied, oral or written.

 

16.           Governing Law.

 

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

 

17.           Counterparts.

 

This Agreement may be executed in one or more counterparts all of which when taken together constitute one and the same instruments.  A signed counterpart is as binding as an original.

 

18.           Headings, Exhibits.

 

The headings used in this Agreement are for convenience only and shall not be used to limit or construe the contents of any of the sections of this Agreement.  All lettered Schedules are attached to and by this reference made a part of this Agreement.

 

20.           Binding Effect.

 

This Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors and assigns.

 

 

 

  

6

  

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

 

 

OPTIONOR:

 

GeoXplor Corporation

 

 

By:  /s/ Clive Ashworth                                                      

Its:  CEO                                

 

 

COMPANY:

 

Great American Energy, Inc.

 

 

By:  /s/ Felipe Pimienta                                                      

Its:  CEO                                

Signature Page – Mineral Property Option Agreement

  

  

  

SCHEDULE A

 

(The “Property” Defined)

 

The Property consists of the following described unpatented placer mining claims are situated in Esmeralda County, Nevada, the names of which, the serial numbers assigned by the Nevada State Office of the Bureau of Land Management and the book and page of recording of the location notices thereof in the office of the Clerk-Recorder of Esmeralda County, Nevada, are as follows:

 

	
Claim Name

	
NMC#

	
Book

	
Page

	
BSV-1

	
1009621

	
281

	
1

	
BSV-2

	
1009622

	
281

	
3

	
BSV-3

	
1009623

	
281

	
5

	
BSV-4A

	
1009624

	
281

	
7

	
BSV-4B

	
1009625

	
281

	
9

	
BSV-5A

	
1009626

	
281

	
11

	
BSV-5B

	
1009627

	
281

	
13

	
BSV-6

	
1009628

	
281

	
15

	
BSV-7

	
1009629

	
281

	
17

	
BSV-8

	
1009630

	
281

	
19

	
BSV-9

	
1009631

	
281

	
21

	
BSV-10

	
1009632

	
281

	
23

	
BSV-11

	
1009633

	
281

	
25

	
BSV-12

	
1009634

	
281

	
27

	
BSV-13

	
1009635

	
281

	
29

	
BSV-14

	
1009636

	
281

	
31

	
BSV-15

	
1009637

	
281

	
33

	
BSV-16

	
1009638

	
281

	
35

	
BSV-17

	
1009639

	
281

	
37

 

 

  

  

  

 

 

	Claim Name	 NMC#	 Book	 Page
	BSV-18	1009640	281	39
	BSV-19	1009641	281	41
	BSV-20 	1009642	281	43
	BSV-21	1009643	281	45
	
BSV-22

	
1009644

	
281

	
47

	
BSV-23

	
1009645

	
281

	
49

	
BSV-24

	
1009646

	
281

	
51

	
BSV-25

	
1009647

	
281

	
53

	
BSV-26

	
1009648

	
281

	
55

	
BSV-27

	
1009649

	
281

	
57

	
BSV-28

	
1009650

	
281

	
59

	
BSV-29

	
1009651

	
281

	
61

	
BSV-30A

	
1009652

	
281

	
63

	
BSV-30B

	
1009653

	
281

	
65

	
BSV-31

	
1009654

	
281

	
67

	
BSV-32

	
1009655

	
281

	
69

	
BSV-33

	
1009656

	
281

	
71

	
BSV-34

	
1009657

	
281

	
73

	
BSV-35

	
1009658

	
281

	
75

	
BSV-36

	
1009659

	
281

	
77

	
BSV-37

	
1009660

	
281

	
79

	
BSV-38

	
1009661

	
281

	
81

	
BSV-39

	
1009662

	
281

	
83

	
BSV-40

	
1009663

	
281

	
85

 

 

  

  

  

 

	
Claim Name

	
NMC#

	
Book

	
Page

	
BSV-41

	
1009664

	
281

	
87

	
BSV-42

	
1009665

	
281

	
89

	
BSV-43

	
1009666

	
281

	
91

	
BSV-44

	
1009667

	
281

	
93

	
BSV-45

	
1009668

	
281

	
95

 

  

  

  

 

SCHEDULE B

 

(Net Returns Royalty Defined)

 

At closing, the deed conveying the Royalty to the Seller shall contain the following provision:

 

GRANTING AND CONVEYING TO THE GRANTEE a Net Returns Royalty (the “Royalty” herein) of three percent (3%) percent of Net Returns (as hereinafter defined) from the sale or other disposition of Products from the Property. As used herein, the term “Net Returns” shall be the “Gross Revenue” received by the Grantor from the purchaser of “Products” less “Permissible Deductions.” As used herein, the words used above are defined as follows:

 

(a) “Gross Revenue” means the aggregate of the following amounts received by Grantor in each quarterly period:

 

(i) the revenue or other value received by the Grantor from arm’s length purchasers of Products;

 

(ii)  the fair market value of all Products disposed of by the Grantor in such period to persons not dealing at arm’s length with the Grantee; and

 

(iii) any proceeds of insurance on Products;

 

(b) “Permissible Deductions” means the aggregate of the following charges to the extent that they are not deducted by any purchaser in computing payment) that are paid by the Grantor in each quarterly period:

 

(i) sales charges levied by an sales agent on the sale of Products;

 

(ii) transportation costs for Products from the place of treatment in the Property to the place of delivery of Products to a purchaser thereof, including freight, handling and forwarding expenses; and

 

(iii) all insurance costs on Products, and any government royalties, production taxes, severance taxes and sales and other taxes levied on ore, Products or on the production or value thereof (other than any Federal or State taxes levied on the income or profit of the Grantor);

 

provided, that where a cost or expense otherwise constituting a Permissible Deduction is incurred by the Grantor in a transaction with a party with whom it is not dealing at arm’s length, such cost or expense may be deducted, but only as to the lesser of the actual cost incurred by the Grantor or the fair market value thereof, calculated at the time of such transaction and under all the circumstances thereof.

 

  

  

  

 

(c) “Products” shall include without limitation all minerals of every kind and character, including metallic, non-metallic and industrial minerals produced from the Property.

  

  

  

SCHEDULE C

 

Mining Deed

 

After recording, please return to:

 

APN No.: Not applicable, unpatented mining claims.

 

This document contains no social security numbers.

 

QUITCLAIM DEED

 

(With Special Warranties and Conveyance of After-Acquired Title)

 

GEOXPLOR CORPORATION, a Nevada corporation, whose address is 3655 W. Anthem Way, Suite 109-293, Anthem, Arizona 85086-0430, the “Grantor,” for and in consideration of Ten Dollars ($10.00) and other valuable considerations, do hereby quitclaim to the GREAT AMERICAN ENERGY, INC., the “Grantee, “all of its right, title and interest in and to those certain unpatented mining claims of Grantor situated in Esmeralda County, Nevada, referred to herein as the “Property,” the names of which and the place of record of the location notices thereof in the official records of said County and the Nevada State Office of the Bureau of Land Management are as set forth in Exhibit A attached hereto and incorporated herein by this reference.

 

SUBJECT TO:

 

1.           Current taxes, if any;

 

2.           Paramount title of the United States;

 

3.           All leases, permits, approvals and other rights heretofore or hereafter granted by the United States in its administration of its paramount title;

 

Grantor warrants that its possessory title against all persons claiming by and through Grantor but not otherwise. By this Quitclaim Deed Grantor intends to convey any after acquired title.

 

DATED this ______ day of ______________, 2012.

 

Grantor:

 

GeoXplor Corporation

 

 

By: ___________________________                                                               

 

  

  

  

 

STATE OF ARIZONA                       )

)           ss.

County of Maricopa                          )

The foregoing document was acknowledged before me, the undersigned notary public, this ____ day of _______________, 2012, by ______________, the president of GeoXplor Corp., a Nevada corporation, for and on behalf of the corporation.

 

 

                                                                

                    _________________________________

  Notary Publicex10-2.htm

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ARE PROPOSED TO BE ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT. UPON ANY SALE, SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

REGULATION SUBSCRIPTION AGREEMENT

NON-U.S. PERSONS ONLY

THIS AGREEMENT is made effective as of the 8th day of May, 2012.

	
  

	
BETWEEN:

	
  

	
THE SUBSCRIBER LISTED ON THE EXECUTION PAGE TO THIS AGREEMENT

 

(hereinafter called the “Subscriber”)

OF THE FIRST PART

	
  

	
AND:

 GREAT AMERICAN ENERGY CORP a Nevada corporation, having a corporate office at 999 18th Street  Suite 3000 Denver, 

 Colorado 80202

                                       (hereinafter called the “Corporation”)

 

OF THE SECOND PART

THE PARTIES HEREBY AGREE AS FOLLOWS:

	
1.  

	
DEFINITIONS

 The following terms will have the following meanings for all purposes of this Agreement.

	
(a)  

	
“Agreement” means this Agreement, and all schedules and amendments to this Agreement.

	
(b)  

	
“Common Stock” means the shares of Common Stock of the Corporation, $0.90 par value per share.

	
(c)  

	
“Corporation” means Great American Energy Corp, a Nevada corporation.

	
(d)  

	
“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

 

 

  

  

  

 

	
(e)  

	
“Offering” means the offering of the Units by the Corporation as set forth herein.

 

	
(f)  

	
“Purchase Price” means the purchase price payable by the Subscriber to the Corporation in consideration for the purchase and sale of the Units in accordance with Section 2 of this Agreement.

	
(g)  

	
“SEC” means the United States Securities and Exchange Commission.

	
(h)  

	
“Securities Act” means the United States Securities Act of 1933, as amended.

	
(i)  

	
“Shares” means those shares of Common Stock to be purchased by the Subscriber.

	
(j)  

	
“Subscriber” means the Subscriber executing the signature page to this Agreement.

	
(k)  

	
“Subscription” means the purchase and sale of the Units in accordance with Section 2.1 of this Agreement.

	
(l)  

	
“Unit” means a unit consisting of one (1) Share and one (1) Warrant.

	
(m)  

	
“Warrant” means one share purchase warrant entitling the holder thereof to purchase one (1) share of Common Stock of the Corporation at a price of $1.30 per share during the period of the date that is three (3) years from the date of issuance.

	
(n)  

	
“Warrant Exercise Price” means $1.30 US per share.

	
(o)  

	
“Warrant Shares” means the Common Stock issuable upon exercise of the Warrants.

 All dollar amounts referred to in this agreement are in United States funds, unless expressly stated otherwise.

	
2.  

	
PURCHASE AND SALE OF UNITS

  Subject to the terms and conditions of this Agreement, the Subscriber hereby subscribes for and agrees to purchase from the Corporation such number of Units as is set forth upon the signature page hereof at a price equal to $0.90 US per Unit.  Upon execution, the subscription by the Subscriber will be irrevocable.

  The Purchase Price is payable by the Subscriber upon execution of this Agreement and the Purchase Price shall be paid by wire transfer into the Corporation’s bank account, the details of which are set out below:

Bank of America

333 S. Hope Ste 100

Los Angeles CA 90071

Checking Account 21295-66677

Routing 121000358

Swift Code: BOFAUS3N

  Upon execution by the Corporation, the Corporation agrees to sell such Units to the Subscriber for the Purchase Price subject to the Corporation’s right to sell to the Subscriber such lesser number of Units as it may, in its sole discretion, deem necessary or desirable.

  

  

  

 Any acceptance by the Corporation of the Subscription is conditional upon compliance with all securities laws and other applicable laws of the jurisdiction in which the Subscriber is resident, and the Subscriber hereby confirms it has complied with all such laws. Each Subscriber will deliver to the Corporation all other documentation, agreements, representations and requisite government forms required by the lawyers for the Corporation as required to comply with all securities laws and other applicable laws of the jurisdiction of the Subscriber.

 Pending acceptance of this Subscription by the Corporation, all funds paid by the Subscriber shall be deposited by the Corporation and immediately available to the Corporation for its corporate purposes.  In the event the Subscription is not accepted, the Subscription funds will constitute a non-interest bearing demand loan of the Subscriber to the Corporation.

 The Subscriber hereby authorizes and directs the Corporation to deliver the securities to be issued to such Subscriber pursuant to this Agreement to the Subscriber’s address indicated on the signature page of this Agreement.

 The Subscriber acknowledges and agrees that the Subscription for the Units and the Corporation’s acceptance of the Subscription is not subject to any minimum subscription for the Offering.

	
3.  

	
REGULATION S AGREEMENTS OF THE SUBSCRIBER

  The Subscriber represents and warrants to the Corporation that the Subscriber is not a “U.S. Person” as defined by Regulation S of the Securities Act and is not acquiring the Units for the account or benefit of a U.S. Person.

A ‘U.S. Person’ is defined by Regulation S of the Securities Act to be any person who is:

(a) any natural person resident in the United States;

	
(b)  

	
any partnership or corporation organized or incorporated under the laws of the United States;

(c) any estate of which any executor or administrator is a U.S. person;

(d) any trust of which any trustee is a U.S. person;

(e) any agency or branch of a foreign entity located in the United States;

	
(f)  

	
any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and

(g) any partnership or corporation if:

(i) organized or incorporated under the laws of any foreign jurisdiction; and

	
(ii)  

	
formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited Subscribers (as defined in Section 230.501(a) of the Securities Act) who are not natural persons, estates or trusts.

 

  The Subscriber acknowledges that the Subscriber was not in the United States at the time the offer to purchase the Units was received.

  

  

  

  The Subscriber acknowledges that the Shares, the Warrants and the Warrant Shares are “restricted securities” within the meaning of the Securities Act and will be issued to the Subscriber in accordance with Regulation S of the Securities Act.

  The Subscriber agrees not to engage in hedging transactions with regard to the Shares, the Warrants and the Warrant Shares unless in compliance with the Securities Act.

  The Subscriber and the Corporation agree that the Corporation will refuse to register any transfer of the Shares, the Warrants and the Warrant Shares not made in accordance with the provisions of Regulation S of the Securities Act, pursuant to registration under the Securities Act, pursuant to an available exemption from registration, or pursuant to this Agreement.

  The Subscriber agrees to resell the Shares, the Warrants and the Warrant Shares only in accordance with the provisions of Regulation S of the Securities Act, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration pursuant to the Securities Act.

  The Subscriber acknowledges and agrees that all certificates representing the Shares and the Warrant Shares will be endorsed with the following legend in accordance with Regulation S of the Securities Act, together with any other legends reasonably required by counsel for the Corporation:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT.  SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

  The Subscriber acknowledges and agrees that all certificates representing the Warrants will be endorsed with the following legend in accordance with Regulation S of the Securities Act:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.  THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A PERSON IN THE UNITED STATES OR A U.S. PERSON UNLESS THE WARRANT AND THE UNDERLYING SHARES AND WARRANTS HAVE BEEN REGISTERED UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE SECURITIES ACT.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

  

  

  

	
4.  

	
REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

     The Subscriber represents and warrants to the Corporation as follows, and acknowledges that the Corporation is relying upon such covenants, representations and warranties in connection with the sale of the Units to such Subscriber:

  The Subscriber is an investor in securities of companies in the development stage and acknowledges that he/she/it is able to fend for himself/herself/itself, can bear the economic risk of his/her/its investment, and has such knowledge and experience in financial or business matters such that he/she/it is capable of evaluating the merits and risks of the investment in the Units.  The Subscriber can bear the economic risk of this investment, and, if the Subscriber is not an individual, was not organized for the purpose of acquiring the Units.

  The Subscriber has had full opportunity to review the Corporation’s filings with the SEC pursuant to the Securities Act and the Exchange Act, including the Corporation’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and additional information regarding the business and financial condition of the Corporation.  The Subscriber believes he/she/it has received all the information he/she/it considers necessary or appropriate for deciding whether to purchase the Units.  The Subscriber further represents that he/she/it has had an opportunity to ask questions and receive answers from the Corporation regarding the terms and conditions of the Offering and the business, properties, prospects and financial condition of the Corporation.  The Subscriber has had full opportunity to discuss this information with the Subscriber’s legal and financial advisers prior to execution of this Agreement.

  The Subscriber acknowledges that the offering of the Units by the Corporation has not been reviewed by the SEC and that the Units are being issued by the Corporation pursuant to an exemption from registration under the Securities Act.

  The Subscriber understands that the Units he/she/it is purchasing are characterized as “restricted securities” under the Securities Act inasmuch as they are being acquired from the Corporation in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances.  In this connection, the Subscriber represents that he/she/it is familiar with Rule 144 under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

  The Units will be acquired by the Subscriber for investment for the Subscriber’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same.  The Subscriber does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Units.

  An investment in the Corporation is highly speculative and only Subscribers who can afford the loss of their entire investment should consider investing in the Corporation and the Units.  The Subscriber is financially able to bear the economic risks of an investment in the Corporation.

  The Subscriber recognizes that the purchase of the Units involves a high degree of risk in that the Corporation is in the early stages of development of its business and may require substantial funds in addition to the proceeds of this private placement.

  The Subscriber is not aware of any advertisement of the Units.

  

  

  

  This Agreement has been duly authorized, validly executed and delivered by the Subscriber.

  The Subscriber has satisfied himself/herself/itself as to the full observance of the laws of his/her/its jurisdiction in connection with any invitation to subscribe for the Units or any use of this Agreement, including: (a) the legal requirements within his/her/its jurisdiction for the purchase of the Units; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; (d) the income tax and other tax consequences, if any, that may be relevant to an Investment in the Units; and (e) any restrictions on transfer applicable to any disposition of the Units imposed by the jurisdiction in which the Subscriber is resident.

  The Subscriber is purchasing the Units as principal for his/her/its own account and not for the benefit of any other person.

	
5.  

	
MISCELLANEOUS

  Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by registered or certified mail, return receipt requested, addressed to the Corporation, at its corporate office at 999 18th Street Suite 3000 Denver, Colorado 80202, Attention: Felipe Pimienta - President, and to the Subscriber at his/her/its address indicated on the last page of this Agreement.  Notices shall be deemed to have been given on the date of mailing, except notices of change of address, which shall be deemed to have been given when received.

  The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

  This Agreement will be governed by and construed in accordance with the laws of the State of Nevada applicable to contracts made and to be performed therein.  The parties hereby submit to personal jurisdiction in the Courts of the State of Nevada for the enforcement of this Agreement and waive any and all rights under the laws of any state to object to jurisdiction within the State of Nevada for the purposes of litigation to enforce this Agreement.

  The Subscriber agrees that the representations, warranties and covenants of the Subscriber herein will be true and correct both as of the execution of this Agreement and as of the date of this Agreement will survive the completion of the issuance of the Units.  The representations, warranties and covenants of the Subscriber herein are made with the intent that they be relied upon by the Corporation in determining the eligibility of a purchaser of Units and the Subscriber agrees to indemnify the Corporation and its respective trustees, affiliates, shareholders, directors, officers, partners, employees, advisors and agents against all losses, claims, costs, expenses and damages or liabilities which any of them may suffer or incur which are caused or arise from a breach thereof.  The Subscriber undertakes to immediately notify the Corporation at 999 18th Street Suite 3000 Denver, Colorado 80202 of any change in any statement or other information relating to the Subscriber set forth herein.

  Time shall be of the essence hereof.

  This Agreement represents the entire agreement of the parties hereto relating to the subject matter hereof and there are no representations, covenants or other agreements relating to the subject matter hereof except as stated or referred to herein.

  

  

  

  The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the Subscriber and the Corporation and their respective heirs, executors, administrators, successors and assigns; provided that, except for the assignment by a Subscriber who is acting as nominee or agent to the beneficial owner and as otherwise herein provided, this Agreement shall not be assignable by any party without prior written consent of the other parties.

  The Subscriber, on his/her/its own behalf and, if applicable, on behalf of others for whom he/she/it is contracting hereunder, agrees that this Subscription is made for valuable consideration and may not be withdrawn, cancelled, terminated or revoked by the Subscriber, on his/her/its own behalf and, if applicable, on behalf of others for whom he/she/it is contracting hereunder.

  Neither this Agreement nor any provision hereof shall be modified, changed, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought.

  The invalidity, illegality or unenforceability of any provision of this Agreement shall not affect the validity, legality or enforceability of any other provision hereof.

  The headings used in this Agreement have been inserted for convenience of reference only and shall not affect the meaning or interpretation of this Agreement or any provision hereof.

  The covenants, representations and warranties contained herein shall survive the closing of the transactions contemplated hereby.

  This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each party and delivered to the other party, it being understood that all parties need not sign the same counterpart.

[The remainder of this page is intentionally left blank]

  

  

  

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

NUMBER OF UNITS SUBSCRIBED FOR:                                          277,778

CORPORATE SUBSCRIBER:

Signature of Authorized Signatory:                                                           ___________________________________

 

Name of Subscriber:                                                                                     Pacific Oil & Gas Investments Ltd.

Name and Title of Authorized Signatory:

Address of Subscriber:                                                                                  Level 3

    267 St. Georges Terrace

        Perth, WA 6000

               Australia

Telephone Number of Subscriber:                                                               +61 (0) 8 9261 7781

ACCEPTED BY:

GREAT AMERICAN ENERGY CORP

a Nevada corporation

Signature of Authorized Signatory:                                                            ___________________________________

Name of Authorized Signatory:                                                                    FELIPE PIMIENTA

Position of Authorized Signatory:                                                                CEO

Date of Acceptance:                                                                                      May 8th, 2012

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}]]