Document:

Exhibit 10.12

 

SUBLEASE

 

THIS SUBLEASE (“Sublease”) is made as of
this 1st day of November, 2003, by and between FOLEY & LARDNER LLP, a
general partnership organized under the laws of the State of Wisconsin (“Sublessor”) and GEOPETRO RESOURCES COMPANY,
a California corporation (“Sublessee”).

 

RECITALS

 

A.                                   Sublessor, as tenant, and EOP-Maritime, LLC, a Delaware limited
liability company, as beneficiary of that certain Land Trust dated February 19,
1997 and known as the Stanley M. Stevens Trust No. 350 (“Landlord”) are parties to that certain
Lease Agreement dated November 17, 1995 by and between Weissburg and
Aronson, Inc. (being the predecessor in interest to Sublessor) and JMB
Group Trust IV and Endowment and Foundation Realty, Ltd. – JMB III (being the
predecessor-in-interest to Landlord), as amended by that First Amendment to
Lease Agreement dated April 27, 1998, Second Amendment to Lease Agreement
dated October 1, 1998, Third Amendment to Lease Agreement dated November 1,
1998, a Termination Notice dated November 4, 1998 with respect to certain
10th floor space, Fourth Amendment to Lease
Agreement dated January 10, 1999, Fifth Amendment to Lease Agreement dated
April 10, 2001, and Sixth Amendment to Lease Agreement dated as of December 6,
2001 (collectively, as so amended, the “Lease”).
The Lease demises to Sublessor certain office space (“Leased Premises”) in the building commonly
known as One Maritime Plaza, San Francisco, California (“Building”).

 

B.                                     Subject to the terms and conditions herein set forth, Sublessor desires
to sublease a portion of the Leased Premises to Sublessee and Sublessee desires
to accept a portion of the Leased Premises from Sublessor.

 

C.                                     Terms used in this Sublease, unless specifically defined herein, shall
have the same meanings as provided in the Lease.

 

AGREEMENTS

 

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

 

1.                                       Sublease of the Subleased Premises. Sublessor hereby subleases to Sublessee, and
Sublessee hereby accepts from Sublessor, that portion of the Leased Premises
consisting of approximately 2,956 rentable square feet on the 7th floor of the Building and commonly known as Suite 725, as
depicted on Exhibit A attached hereto and made a part hereof (“Subleased Premises”), upon the terms and
conditions set forth herein.

 

2.                                       Permitted Use. The Subleased Premises may only be used for the purposes permitted
by the Lease.

 

 

3.                                       Term.

 

(a)                                  The term of this Sublease (“Term”)
shall commence on March 1, 2004 (the “Commencement
Date”) and, subject to the provisions of Section 3(b) below,
shall terminate on February 28, 2009 (the “Termination Date”) or such earlier date as this Sublease may be
terminated pursuant to the provisions hereof. Notwithstanding anything
contained herein to the contrary, provided that it is bound by all of the terms
of this Sublease, Sublessee shall have access to the Premises upon full
execution of this Sublease (“Early Occupancy”). During such Early Occupancy,
Sublessee shall not be obligated to pay Rent until the Commencement Date, but
shall be bound by all of the other terms and conditions of this Sublease.

 

(b)                                 Either Sublessor or Sublesee may terminate this Sublease effective
on February 28, 2007 (the “Early Termination Date”) by giving notice to
the other party no more than nine (9) nor less six (6) months prior
to the Early Termination Date.

 

4.                                       Delivery of Subleased Premises. Provided that Landlord has consented to this Sublease as provided
below, Sublessor shall deliver the Subleased Premises to Sublessee in its “as
is, where is” condition (subject to removal by Sublessor of its existing
furniture therefrom, to the extent requested by Sublessee no later than thirty
days after the Commencement Date) on the date that Landlord consents to this
Sublease (the “Delivery Date”).

 

5.                                       Rent.

 

(a)                                  Rent during the first thirty-six (36) months of the Term (“Base Rent”) shall be calculated at an
annual rate of Twenty-Three Dollars and 50/100ths ($23.50) per rentable square
foot of the Subleased Premises, for a monthly rental of Five Thousand Seven
Hundred Eighty-Eight Dollars and 83/100ths ($5,788.83). Rent from the thirty-seventh
(37th) month to the sixtieth (60th) month of the Term shall be calculated at an annual rate of Twenty-Six
Dollars and 50/100ths ($26.50) per rentable square foot of the Subleased
Premises, for a monthly rental of Six Thousand Five Hundred Twenty-Seven
Dollars and 83/100ths ($6,527.83). For purposes of this Section 5, the
parties agree that the rentable area of the Subleased Premises is 2,956 square
feet, and Sublessee’s Prorata Share (as such term is defined in the Lease) is 0.5820%.
Sublessor and Sublessee agree that no redetermination of the rentable areas of
the Subleased Premises shall be undertaken for purposes of determining Base
Rent or Sublessee’s Proportionate Share except as may be undertaken by
Landlord pursuant to any rights specifically provided to Landlord in the Lease.
All Base Rent shall be paid to Sublessor in monthly installments, in advance,
on the Commencement Date and on the first day of each month thereafter during
the Term, at Sublessor’s address for notice specified under Section 16 below.

 

(b)                                 In addition to the Base Rent specified above, commencing on the
Commencement Date, Sublessee shall pay to Sublessor Sublessee’s Prorata Share
of the increase, if any, in the amount of Taxes and Operating Expenses payable
by Sublessor in any year of the term over the amount of Taxes and Operating
Expenses paid in 2004 by Sublessor (“Additional Rent” and together with Base
Rent and any other amounts due to Sublessor hereunder, “Rent”). Additional Rent
shall be paid by Sublessee in such manner, and at such times, as are specified
for Sublessor’s payment thereof under the Lease. If Sublessor shall 

 

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receive any refund of Additional Rent from
Landlord pursuant to the Lease, as a result of a dispute or otherwise,
Sublessor shall promptly pay to Sublessee any such refund (after deducting from
the amount of any such refund an equitable portion of all expenses and
reasonable attorneys’ fees incurred by Sublessor in resolving any dispute
related to such refund) applicable to the Subleased Premises.

 

(c)                                  Rent due hereunder by Sublessee does not include Landlord charges for
extras or additional services requested from Landlord by Sublessee which are
not provided to all tenants under the Lease. Any such charges for extra or
additional services provided to Sublessee by Landlord shall become additional
Rent due hereunder.

 

(d)                                 Rent shall be prorated on a per diem
basis for the month in which the Sublease commences and terminates if the Term
commences or terminates on other than the first or last day of a month, as
applicable. In the event of any increases or decreases to the rentable area of
the Subleased Premises during the Term pursuant to the Lease, Rent shall be
equitably adjusted on a per square foot basis.

 

6.                                       Security Deposit.

 

Sublessee shall deposit with Sublessor the
sum of Five Thousand Seven Hundred Eighty-Eight Dollars and 83/100ths
($5,788.83) (“Security Deposit”)
upon Sublessee’s execution of this Sublease. The Security Deposit shall serve
as security for the prompt, full and faithful performance by Sublessee of the
terms and provisions of this Sublease. In the event that Sublessee is in
default hereunder and fails to cure such default within any applicable time
permitted under this Sublease or the Lease, or in the event that Sublessee owes
any amounts to Sublessor upon the expiration of this Sublease, Sublessor may use
or apply the whole or any part of the Security Deposit against the payment
of Sublessee’s obligations hereunder. The use or application of the Security
Deposit or any portion thereof shall not prevent Sublessor from exercising any
other right or remedy provided hereunder or under any law applicable hereto,
and shall not be construed as liquidated damages. In the event the Security Deposit
is reduced by such use or application, Sublessee shall deposit with Sublessor
within ten (10) days after written notice an amount sufficient to restore
the full amount of the Security Deposit. Sublessor shall not be required to
keep the Security Deposit separate from Sublessor’s general funds or to pay
interest on the Security Deposit. Any remaining portion of the Security Deposit
shall be returned to Sublessee within thirty (30) days after Sublessee has
vacated the Subleased Premises in accordance with this Sublease.

 

7.                                       Condition Of Subleased Premises. Sublessor shall deliver the Subleased Premises in its “as is, where
is” condition as provided in Section 4 above. Sublessee has inspected the
Subleased Premises and the common areas relating thereto and by taking
occupancy thereof shall be conclusively deemed to have accepted the Subleased
Premises in its “as is, where is” condition and to have approved the condition
thereof. No representations, warranties, covenants, agreements or promises have
been made to alter, remodel or improve the Subleased Premises.

 

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8.                                      Tenant Improvements; Allowance.

 

(a)                                  Upon Landlord’s approval of Sublessee’s plans for alterations to the
Subleased Premises (the “Plan of Alterations”) and its proposed budget and
construction schedule, Sublessor shall deposit a tenant improvement allowance
of Thirty-Five Thousand Four Hundred Seventy-Two and No/100ths Dollars
($35,472.00) (the “Allowance”)
into a title company escrow (“Escrow”)
to be established by Sublessor and Sublessee with an escrow agent reasonably
acceptable to Sublessor and Sublessee pursuant to the terms of a separate
escrow agreement reasonably acceptable to Sublessor and Sublessee. Simultaneous
with Sublessor’s deposit of the Allowance, Sublessee shall deposit into the
Escrow an amount equal to the difference between (i) the estimated total
costs to be incurred by Sublessee for Work performed pursuant to the Plan of
Alterations, as set forth on the project budget for the Work prepared by
Sublessee and approved by Sublessor, and (ii) the Allowance. The Allowance
shall be disbursed monthly on a pro-rata basis with Sublessee’s deposit as
tenant improvement costs are incurred by Sublessee upon Sublessee’s delivery to
the escrow agent of the following: (i) a requisition specifying the work,
materials and services for which payment is requested, together with bills from
the general contractor and subcontractors, suppliers and consultants for such
work, materials and services, (ii) the written certification of Sublessee’s
architect to the effect that the amounts requisitioned are proper in all
material respects and that the work and materials represented thereby have been
installed substantially in accordance with the approved plans, and (iii) partial
or full conditional releases of lien, covering the labor or materials for which
such payment is sought, from the general contractor and any subcontractors
hired to furnish, install or supply material for any part of the
construction. Failure of Sublessee to complete any Work for any reason shall
not delay the commencement of the Term, or the Commencement Date. The Allowance
may be used by Sublessee for the costs of labor and materials necessary to
complete the Work identified in the Plan of Alterations, for architectural,
engineering and construction supervisory fees, and for reasonable moving
expenses, but may not be used to pay for furniture, equipment or other
personal property. In the event any portion of the Allowance has not been
deposited or disbursed by the date that is two (2) years after the
Commencement Date, then Sublessee shall receive a credit of one-half of the
remaining Allowance which shall be applied towards the next Base Rent payment
due. The other one-half of the remaining Allowance shall be returned to
Sublessor without credit to Sublessee.

 

(b)                                 All Work undertaken by Sublessee shall comply with (i) the
Building Code of the City and County of San Francisco and State of California
or other laws, codes, ordinances and regulations, as each may apply
according to the rulings of the controlling public official, agent or other
such person, (ii) applicable standards of the National Board of Fire
Underwriters and National Electrical Code and (iii) building material
manufacturers’ specifications. Performance of the Work shall be subject to the
terms and conditions of the Lease, including without limitation, the payment by
Sublessee of any construction supervisory fee payable to Landlord in accordance
with Lease. Sublessor shall not assess a separate construction supervisory fee
in addition to the supervisory fee payable to Landlord.

 

(c)                                  Sublessee acknowledges that asbestos-containing materials (“ACM”) may be
present at the Subleased Premises and that airborne asbestos fibers may create
a health hazard unless proper procedures are followed when performing any Work,
including the initial tenant improvements for which the Allowance is provided. Before
commencing any Work, Sublessee 

 

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and its contractor shall consult with
Landlord and Landlord’s asbestos consultant concerning appropriate procedures
to be followed. Landlord may require initial asbestos related work to be
performed prior to commencement of Sublessee’s Work and may require
Sublessee to consent to additional terms and conditions. Any such Landlord work
shall be performed at Sublessee’s sole expense. During performance of any Work,
Sublessee shall require that its contractor comply with all laws, rules,
regulations and other governmental requirements, as well as all directives of
Landlord’s asbestos consultant respecting ACM. Sublessee hereby irrevocably
appoints Landlord and Landlord’s asbestos consultant as Sublessee’s
attorney-in-fact for purposes of supervising and directing any asbestos-related
aspects of the Work, but such appointment shall not relieve Sublessee from its
obligations hereunder, nor impose any affirmative requirement on Landlord or
Sublessor to provide such supervision or direction.

 

(d)                                 Sublessee acknowledges that (i) any Work performed within the
Subleased Premises may trigger a requirement that fire sprinklers be
installed in the ceiling of the Subleased Premises; and (ii) installation
of fire sprinklers in the ceiling of the Subleased Premises may trigger a
requirement that suspected ACM contained therein be removed or otherwise
remediated. Sublessor shall have no responsibility to pay any of the costs or
expenses connected with these requirements other than paying the Allowance into
Escrow as provided in paragraph (a) above.

 

9.                                       Landlord’s Building Services. Sublessee shall look solely to Landlord for
the provision of all of the Building services to be provided by Landlord under
the Lease. Sublessee shall have no right or remedy against Sublessor for Landlord’s
failure to provide any services to be provided by Landlord under the terms and
conditions of the Lease (unless such failure shall be due to the conduct of
Sublessor or its agents or other sublessees of Sublessor), and Sublessor shall
have no obligation to provide any such services whatsoever to Sublessee,
provided that Sublessor shall, at Sublessee’s request, use reasonable efforts
(at no cost or expense to Sublessor) to cause Landlord to comply with its
obligations under the Lease. Failure on the part of Landlord to provide
any such services, or to perform any of its other obligations under the
Lease, shall not be deemed to be a default on the part of Sublessor under
this Sublease or an eviction or disturbance of Sublessee’s use or possession of
the Subleased Premises or a reason to relieve Sublessee from the performance of
any of its obligations under this Sublease (including but not limited to,
Sublessee’s obligation to pay Rent) or a reason to terminate this Sublease. If
Landlord shall default in any of its obligations to Sublessor with respect to
the Subleased Premises, Sublessee shall be entitled to participate with
Sublessor in the enforcement of Sublessor’s rights against Landlord. If after
written request from Sublessee, Sublessor shall fail or refuse to take
appropriate action for the enforcement of Sublessor’s rights against Landlord
in respect of the Subleased Premises within a reasonable period of time given
the nature of Landlord’s default, Sublessee shall have the right to take such
action in its own name, and Sublessee hereby agrees that Sublessee shall
indemnify and hold harmless Sublessor from and against all liability, loss,
damage or expense, including reasonable attorneys’ fees, which Sublessor shall
suffer or incur by reason of such action.

 

10.                                 Incorporation of and Compliance with Lease.

 

(a)                                  The rights and interests provided herein to Sublessee are subject and
subordinate to the terms and provisions of the Lease. Sublessor represents and
warrants that 

 

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Sublessor has previously delivered to
Sublessee a true, correct and complete copy of the Lease and that there have
been no amendments or modifications of the Lease, except as described in Recital A above. Except with respect
to Rent and as otherwise expressly provided in this Sublease and except with
respect to those terms and conditions which, by their nature do not relate to
the Subleased Premises or are inapplicable or inappropriate to the subleasing
of the Subleased Premises:  (i) this
Sublease is subject to, and is made upon, all of the terms and conditions of
the Lease, as if the same were incorporated herein by reference and (ii) Sublessee
assumes and agrees to perform and be bound by all of the covenants,
agreements and obligations on the part of Sublessor as tenant under the
Lease as the same pertain to the Subleased Premises, and, except as set forth
herein, Sublessor assumes and agrees to perform and be bound by all of the
covenants, agreements and obligations on the part of Landlord as landlord
under the Lease as the same pertain to the Subleased Premises.

 

(b)                                 For purposes of incorporation into this Sublease, (i) references
in the Lease to “the date hereof”, “the date of this Lease” and similar
references shall be deemed to refer to the date of this Sublease; (ii) references
in the Lease to “Landlord” and to “Tenant” shall be deemed to refer to “Sublessor”
and Sublessee” hereunder respectively; (iii) references in the Lease to
the “Premises” shall be deemed to refer to the “Subleased Premises”; (iv) references
in the Lease to “the Lease” or “this Lease” shall be deemed to refer to “this
Sublease”.

 

(c)                                  Notwithstanding anything herein to the contrary, Sublessee agrees that
it is acquiring no rights under the Lease with respect to any options or rights
of first refusal or rights of first offer to expand the Subleased Premises or
extend the Term, and Sublessor shall have no obligation to exercise any such
options or rights.

 

(d)                                 Sublessee shall comply at all times with all rules and regulations
promulgated from time to time in connection with the Lease. All references in
such rules to “Tenant” shall apply to Sublessee.

 

(e)                                  Except with respect to actions to be taken by Sublessee for which
shorter time limits are specifically set forth in this Sublease, which time
limits shall control for the purposes of this Sublease, the time limits
provided in the Lease for the giving or making of any notice by the tenant
thereunder to Landlord, the holder of any mortgage or any other party, or for
the performance of any act, condition or covenant by the tenant thereunder, or
for the exercise of any right, remedy or option by the tenant thereunder, are
changed for the purposes of this Sublease, by shortening the same in each
instance by five (5) days with respect to all such periods of ten (10) days
or more and by three (3) days with respect to all such periods of five (5) days
or more but less than ten (10) days.

 

(f)                                    Neither Sublessor nor Sublessee shall take any action, nor make any
omission, that would cause Sublessor to be in default under the Lease. Each
party shall indemnify and hold the other party harmless from and against any
and all claims, losses, damages, expenses (including, without limitation,
reasonable attorneys’ fees) and other liability of any kind whatsoever to the
extent that the same result directly from any breach or default by said
defaulting party under this Section.

 

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(g)                                 Notwithstanding anything to the contrary contained in this Sublease, (i) Sublessee
agrees that Sublessor does not make or adopt any representation or warranty of
Landlord that has been incorporated herein from the Lease; and (ii) if any
of the terms of the Lease are inconsistent with the terms of this Sublease, the
terms of this Sublease shall control as between Sublessor and Sublessee.

 

(h)                                 Sublessor represents that the Lease is in full force and effect, that
Sublessor has not received any notice of default from Landlord which remains
uncured as of the date hereof, and that to Sublessor’s knowledge, neither
Sublessor nor Landlord is in default with respect to any material obligation of
such party under the Lease.

 

(i)                                     Promptly after receipt from Landlord, each party hereto shall deliver
to the other party hereto a copy of each notice of default, and of each other
notice, statement, demand and other communication given or sent by or on behalf
of Landlord which relates or is applicable to the Subleased Premises, Sublessee’s
use and occupancy thereof or the services and facilities of the Building
furnished to the Subleased Premises or Sublessee.

 

11.                                 Consents and Approvals.           In all provisions requiring the approval or consent of Sublessor or
Landlord (whether pursuant to the express terms of this Sublease or the terms
of the Lease incorporated herein), Sublessee shall be required to obtain the
approval or consent of Landlord and then to obtain like approval or consent of
Sublessor. Whenever Sublessor has agreed that a required consent or approval
shall not be withheld or delayed or unreasonably withheld or delayed, whether
in this Sublease or pursuant to any provision of the Lease incorporated herein,
Sublessor may withhold its consent or approval and it shall be deemed
reasonable for Sublessor to withhold or delay its consent or approval if
Landlord shall have delayed or refused to give any consent or approval which may be
requested of it. Without intending to waive Sublessee’s obligation hereunder to
obtain the consent or approval of Landlord prior to obtaining the like consent
or approval of Sublessor, if Sublessor is required or has determined to give
its consent or approval to a matter as to which consent or approval has been
requested by Sublessee, excluding approval of this Sublease, Sublessor shall
cooperate reasonably with Sublessee in endeavoring to obtain any required
Landlord’s consent or approval upon and subject to the following terms and
conditions:  (i) Sublessee shall
reimburse Sublessor for any reasonable out-of-pocket costs incurred by
Sublessor in connection with seeking such consent or approval, (ii) Sublessor
shall not be required to make any payments to Landlord or to enter into any
agreements or to modify the Lease or this Sublease in order to obtain any such
consent or approval, (iii) neither the granting of such approval or
consent by Sublessor nor the occurrence of the matter for which such approval
or consent is sought will result in any increase in Sublessor’s obligations to
Landlord under the Lease, and (iv) a person or entity acceptable to Sublessor
shall, in a written instrument reasonably satisfactory to Sublessor and its
counsel, indemnify and hold harmless Sublessor from and against all losses,
costs, liabilities, damages and expenses (including, without limitation,
reasonable attorneys’ fees and expenses) which Sublessor may suffer or
incur as a result of or arising out of its approval or consent to such matter.

 

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12.                                 Insurance.

 

(a)                                  Sublessee shall maintain at its sole cost commencing on the Delivery
Date and continuing throughout the Term hereof such insurance policies with
respect to the Subleased Premises as are required to be maintained by Sublessor
as tenant under the Lease with respect to the Subleased Premises. All such
policies shall name as additional insureds thereunder Landlord, Sublessor, and
all such other parties as may be required under the Lease, as their
respective interests may appear, and all such policies shall provide all
coverage and contain all other provisions as are required to be contained and
provided in the insurance policies to be carried and maintained by Sublessor as
tenant under the Lease, with respect to the Premises. Without limiting the
generality of the foregoing, Sublessee shall, promptly after Sublessor’s or
Landlord’s request, deliver to Sublessor and Landlord certificates evidencing
all policies of insurance required to be carried by Sublessee hereunder.

 

(b)                                 Sublessee agrees to have all property and liability insurance which may be
carried by it with respect to the Subleased Premises endorsed with a clause
providing that any release from liability of or waiver of claim for recovery
from the other party or from any of the parties named in Section 12(a) above which is
entered into in writing by the insured thereunder prior to any loss or damage,
shall not affect the validity of said policy or the right of the insured to
recover thereunder, and each of Sublessee’s policies shall provide further that
the insurer shall waive all rights of subrogation which such insurer might have
against Sublessor, Landlord and the additional insured parties named in Section 12(a) above. Without
limiting any release or waiver of liability or recovery contained in any other section of
this Sublease, but rather in confirmation and furtherance thereof, Sublessee
hereby waives all claims for recovery from and rights of subrogation against
Landlord and Sublessor (and those for whom Sublessor is responsible under
applicable law) and their respective agents, partners, servants and employees
for any loss or damage to any of Sublessee’s property.

 

(c)                                  Each policy required to be maintained hereunder shall provide that
Sublessor and Landlord shall receive thirty (30) days advance written notice in
the event of a cancellation of or material change in such policy.

 

(d)                                 If the annual insurance premiums to be paid by Landlord under the Lease
shall exceed the standard rates because Sublessee’s operations, the contents of
the Subleased Premises, or the improvements with respect to the Subleased Premises
beyond building standard, result in extra hazardous exposure, Sublessee shall
promptly pay the excess amount of the premium upon request by Landlord.

 

13.                                 Damage By Fire or Other Casualty; Condemnation. Notwithstanding the incorporation of Articles 10 and 12 of the Lease
with respect to casualty and condemnation, Sublessor shall not have any
obligation to rebuild or restore the Subleased Premises in the event of any
damage or destruction thereto, and Sublessee shall look solely to Landlord with
respect to all obligations of Landlord under Articles 10 and 12 of the Lease.

 

14.                                 Removal of Alterations and Improvements. On termination of this Sublease, to the extent required by Landlord
pursuant to the Lease, or pursuant to any document 

 

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executed by Landlord or Sublessee in
connection with any alterations or improvements made by or on behalf of
Sublessee, Sublessee shall remove, at Sublessee’s cost, any or all of such
improvements made by Sublessee or its agents, assigns or subtenants (including
any rooftop installations and related conduit and cabling), and restore the
Subleased Premises (or any part thereof) to the same condition as existed
on the Delivery Date, broom clean, reasonable wear and tear excepted. Should
Sublessee fail to remove such improvements and restore the Subleased Premises
as of the termination of this Sublease, Sublessor shall have the right to do
so, and charge Sublessee the costs incurred by Sublessor in connection
therewith.

 

15.                                 Brokerage. Sublessor and Sublessee mutually warrant that no broker or agent has
been involved in this transaction or is owed any fee or commission in
connection therewith, except for Jones Lang LaSalle and Colliers International
(collectively, “Brokers”). Sublessor
shall pay the commission due to the Brokers pursuant to separate written
agreements executed by or on behalf of Sublessor and the Brokers. Each party
shall indemnify and hold the other party harmless from any claims, commissions,
finders’ fees or similar charges claimed by any party other than Brokers if
such claim arises due to its actions.

 

16.                                 Notice. All notices, demands, requests, consents or other communications
required or permitted hereunder shall be in writing and shall be transmitted as
follows:

 

	
  If to
  Sublessor: 

  	
   

  	
  Foley &
  Lardner LLP

  One Maritime Plaza, Suite 600

  San Francisco, California 94111 

  Attn: Managing Partner 

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
  Foley &
  Lardner LLP 

  777 East Wisconsin Ave. 

  Milwaukee, WI 53202-5367 

  Attn: Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
  If to
  Sublessee prior to the Commencement Date: 

  	
   

  	
  GeoPetro
  Resources Company 

  One Maritime Plaza, Suite 400 

  San Francisco, CA 94111 

  Attn.: President 

  
	
   

  	
   

  	
   

  
	
  If to
  Sublessee on or following the Commencement Date:

  	
   

  	
  GeoPetro
  Resources Company 

  One Maritime Plaza, Suite 725 

  San Francisco, California 94111 

  Attn.: President

  

 

or to such other persons or addresses as may be
designated to the other party in writing. If a notice is: (a) mailed by
U.S. certified mail, return receipt requested, it shall be deemed to be
delivered three (3) days after posting; or (b) transmitted by
personal delivery, facsimile or by a 

 

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nationally recognized overnight carrier, it
shall be deemed to be delivered upon its receipt by the addressee.

 

17.                                 Renewal. Sublessee shall have no right to renew or extend this Sublease.

 

18.                                 Signage. Sublessee
shall work directly with Landlord on any requests for building standard
directional signage and suite identification signage, and shall pay any
costs required to be paid to Landlord for such signage in accordance with the
Lease.

 

19.                                 Indemnity. Sublessee
shall indemnify, hold harmless and forever defend Sublessor from and against
any and all damages, claims, costs, suits, proceedings, losses and liabilities
(to persons or property) which result or arise from or in connection with (i) the
use, occupancy, management, repair, maintenance or control of the Subleased
Premises or any portion thereof by Sublessee or Sublessee’s agents, employees,
contractors, licensees or invitees and (ii) any act or omission of
Sublessee or Sublessee’s agents, employees, contractors, licensees or invitees.
Sublessee shall assume all of the costs associated with defending against any
claims, suits, proceedings or actions brought against Sublessor in respect of
the foregoing, including, without limitation, reasonable attorneys’ fees and
expenses.

 

20.                                 Quiet Enjoyment. Sublessor covenants and agrees that the Sublessee, upon timely payment
of Rent and performance of Sublessee’s obligations hereunder, shall have
peaceful and quiet enjoyment of the Subleased Premises, subject to the terms
and conditions of this Sublease.

 

21.                                 Miscellaneous.

 

(a)                                  The section headings in this Sublease are inserted for convenience
only and in no way define, describe or limit the scope of this Sublease or the
interest of any provision hereof.

 

(b)                                 Capitalized terms used but not defined herein shall have the meaning
given them in the Lease.

 

(c)                                  Time is of the essence of this Sublease.

 

(d)                                 This Sublease shall be governed and construed in accordance with the
internal laws of the State of California without giving effect to choice of law
principles.

 

(e)                                  This Sublease creates no rights in any person or entity other than
Sublessor and Sublessee, whether under a third party beneficiary theory or
otherwise.

 

(f)                                    This Sublease constitutes the entire agreement between the Sublessor
and Sublessee as to the subject matter hereof and supercedes and replaces any
and all prior representations, warranties, agreements and undertakings between
the parties.

 

(g)                                 In the event any provision of this Sublease is found by a court of
competent jurisdiction to be invalid, void or unenforceable, then such invalid,
void or unenforceable provision shall be deleted and the remainder of this
Sublease shall continue in full force and effect.

 

10

 

(h)                                 Each party to this Sublease represents to the other that it has all
right, power and authority to enter into this Sublease and to carry out the
obligations of such party hereunder.

 

(i)                                     This Sublease may be executed in any number of counterparts and
all such counterparts shall constitute one agreement.

 

22.                                 Landlord Consent.
The effectiveness of this Sublease and the obligations of Sublessor and
Sublessee hereunder are subject to the condition that Landlord executes and
delivers a written consent to this Sublease in form and substance
satisfactory to Sublessee and Sublessor. Sublessor will submit this Sublease to
Landlord for consent promptly following the execution and delivery of this
Sublease. Sublessee agrees that it shall cooperate in good faith with Sublessor
and shall comply with any reasonable request made of Sublessee by Sublessor or
Landlord in connection with the procurement of such consent including, without
limitation, the execution and delivery of a written form of consent to
sublease required by Landlord, provided that such form of consent does not
in any respect decrease Sublessee’s rights or increase Sublessee’s obligations
in connection with this Sublease. In no event shall Sublessor be obligated to
make any payment to Landlord in order to obtain the consent of Landlord to this
Sublease or any provisions hereof. In the event that Landlord fails to provide
such consent on or before December 31, 2003, either party hereto may terminate
this Sublease by providing written notice of such termination to the other
party hereto.

 

23.                                 No Personal Recourse. Notwithstanding any statutory or common law principle under which
partners of a general partnership are liable for the obligations of the
partnership, Sublessee agrees that the liability of Sublessor under this
Sublease, including any indemnities, representations, covenants and warranties
provided for herein, is and shall be limited to the assets of FOLEY &
LARDNER LLP. Sublessee agrees that none of the partners of Sublessor shall be
personally liable for any obligation under this Sublease and Sublessee shall
not have recourse against any of the personal assets of Sublessor’s partners.

 

[THIS SPACE
INTENTIONALLY LEFT BLANK]

 

11

 

IN WITNESS WHEREOF, Sublessee and Sublessor have caused this Sublease to be executed and
delivered as of the date first above written.

 

 

	
  SUBLESSOR: 

  	
   

  	
  SUBLESSEE:

  
	
   

  	
   

  	
   

  
	
  FOLEY & LARDNER LLP 

  	
   

  	
  GEOPETRO RESOURCES COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Nancy J. Geener

  	
   

  	
  By:

  	
   /s/ Stuart J. Doshi

  
	
  Name:

  	
   Nancy J. Geener

  	
   

  	
  Name:

  	
  Stuart J. Doshi

  
	
  Title:

  	
   Office Managing Partner

  	
   

  	
  Title:

  	
  President

  
									

 

SUBLEASE
SIGNATURE PAGE

 

 

EXHIBIT A

 

[ATTACH DIAGRAM OF SUBLEASED
PREMISES]Exhibit 10.13

 

PROMISSORY NOTE

 

	
  $1,000,000.00

  	
   

  	
  January 31, 2006

  

 

1.                                       FOR VALUE RECEIVED, the undersigned, GeoPetro
Resources Company, a California corporation (“Maker”), promises to pay to Pine
Hill Capital LLC, (“Payee”), the principal sum of One Million Dollars
($1,000,000.00) (the “Principal Amount”) together with interest accruing on the
unpaid portion of the Principal Amount from the date hereof until maturity at
the annual rate of eight percent (8%), with such interest payable at maturity. This
promissory note shall be referred to herein as the “Note.” The Principal Amount
and all accrued and unpaid interest thereon shall be due and payable on January 31,
2007 (the “Maturity Date”). The Principal Amount and all accrued and unpaid
interest thereon may be prepaid at any time prior to the Maturity Date
without penalty.

 

2.                                       In conjunction herewith, Payee or Payee’s
designee, shall receive warrants in the form attached as an exhibit hereto
(the “Warrant Certificate”), to purchase 150,000 shares of no par voting common
stock of Maker (“Shares”) at a price of $3.50 per Share (the “Exercise Price”),
with such Exercise Price being subject to equitable adjustment in the event of
a split or reverse split of the Shares prior to expiration of the warrants. The
warrants shall be exercisable during the period commencing upon the date hereof
and ending on January 31, 2009 as specifically set forth in the Warrant
Certificate. In addition, Maker agrees to pay to Payee a loan origination fee
of Thirty Thousand Dollars ($30,000.00) due and payable in cash on the date
hereof.

 

3.                                       Payee shall have the right to accelerate this
Note and to declare the entire unpaid Principal Amount and the obligations
evidenced hereby immediately due and payable and to seek and obtain payment of this
Note upon the occurrence of any of the following events of default (the “Events
of Default”):  (a) Maker breaches
its obligations under the Warrant Certificate; or (b) Maker fails to
fulfill its obligations under Section 2 of this Note. In the event this
Note is not repaid by the Maturity Date, and unless an extension thereof is
mutually agreed to, then the Maker agrees that it shall dedicate 5% of its net
cash flow from the Madisonville Project located in Madison County, Texas toward
the unpaid Principal Amount and all accrued and unpaid interest thereon, until
such amounts are paid in full. Net cash flow for purposes of this provision
shall mean gross revenues received by the Maker less royalties, production
taxes and net profits interest expense.

 

4.                                       All payments hereunder shall be made in
lawful currency of the United States of America at such place as Payee shall
designate in writing and shall be payable by Maker by check or wire transfer.

 

5.                                       The validity, construction and performance of
this Note, and any action or claim arising out of or relating to this Note,
shall be governed by the laws, without regard to the laws as to choice or
conflict of laws, of the State of California. The forum for disputes is
San Francisco, California. Any controversy or claim arising out of or
relating to this Note, or breach thereof, including without limitation claims
against either party, its affiliates, employees, professionals, officers or
directors shall be settled by binding arbitration in San Francisco, California,
in accordance with the rules of, and as determined by an arbitrator
affiliated with, JAMS/Endispute. The arbitrator(s) shall be an active member of
the California Bar. In the proceeding, the arbitrator(s) shall apply California
substantive law and the California Evidence Code. Payee agrees that the
arbitrator(s) shall have no authority to award punitive damages, and Payee has
been advised to seek counsel concerning the possible waiver by Payee of certain
rights otherwise available to the undersigned as a consequence of such
agreement. The arbitrator(s) shall prepare an award in writing, which shall
include factual findings and any legal conclusions on which the decision is
based. Judgment upon any award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof. In any such proceeding, the
prevailing party shall be entitled, in addition to 

 

 

any other relief awarded or adjudged, such
sum as the arbitrator(s) may fix as and for reasonable attorneys’ fees and
costs, and the same shall be included in the award and any judgment.

 

6.                                       The
Company shall keep at its principal corporate office a register for the
registration and registration of transfers of this Note. The name and address
of each holder of this Note, each transfer thereof and the name and address of
each permitted transferee of this Note shall be registered in such register. Prior
to due presentment for registration of transfer of this Note, the person in
whose name this note shall be registered shall be deemed and treated as the
owner and holder hereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary.

 

7.                                       Each
of the terms, provisions and obligations of this Note shall be binding upon,
shall inure to the benefit of, and shall be enforceable by the parties and
their respective legal representatives, successors and permitted assigns.

 

8.                                       Payee hereby agrees to execute such other
documents as may be reasonably necessary to consummate the transaction
proposed herein, including, but not limited to, regulatory filings which may be
required to be filed in Payee’s state of residence.

 

9.                                       Any notice herein required or permitted to be
given shall be in writing and may be personally served or delivered by
nationally-recognizable overnight courier or by facsimile machine confirmed
telecopy, and shall be deemed delivered at the time and date of receipt (which
shall include telephone line facsimile transmission). The addresses for such
communications shall be:

 

If to Maker:

 

GeoPetro Resources Company

One Maritime Plaza

Suite 700

San Francisco, CA  94111

Attention: Stuart J. Doshi, President and CEO

 

Phone: (415) 398-8186 

Facsimile: (415) 398-9227

 

If to Payee:

 

Attn:                    Pine Hill Capital LLC

37 White St.

San Francisco, CA 
94109

 

IN WITNESS WHEREOF, Maker has executed this
Note in favor of Payee is of the date first set forth above.

 

MAKER:

 

GeoPetro Resources Company

a California corporation

 

	
  By:

  	
  /s/ Stuart J. Doshi

  	
   

  
	
  Stuart J. Doshi

  
	
  President and CEO

  

 

2

 

THE SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED
OR ASSIGNED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144
UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF
SUCH SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE,
TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND
PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

WARRANT TO PURCHASE COMMON STOCK

of

GeoPetro Resources Company

 

(void after                 )

 

1.                                       Number of Shares of Common Stock Subject
to Warrant. FOR
VALUE RECEIVED, on and after the Commencement Date (as defined below), and
subject to the terms and conditions herein set forth, Holder (as defined below)
is entitled to purchase from GeoPetro Resources Company, a California
corporation (the “Company”), at any time before 5:00 p.m.
California time on                             
(“Termination Date”), at a price per share equal to the Warrant Price
(as defined below), the Warrant Stock (as defined below) upon exercise of this
Warrant as set forth herein.

 

2.                                       Definitions. As used in this Warrant, the following
terms shall have the definitions ascribed to them below:

 

(a)                                  “Commencement Date” shall mean
                             .

 

(b)                                 “Holder” shall mean                          
(“                      ”),
or any person or entity to whom
                         
(or its assignees) has assigned his rights hereunder pursuant to the terms
hereof and in whose name this Warrant shall be registered upon the books to be
maintained by the Company for that purpose.

 

(c)                                  “Warrant Price” shall be equal to $          
per share, subject to adjustments as described in Section 3 below.

 

(d)                                 “Warrant Stock” shall mean                      
shares of no par voting common stock of the Company (“Common Stock”) subject to
adjustment as described in Section 3 below.

 

3.                                       Adjustments and Notices. The Warrant Stock and the Warrant Price
shall be subject to adjustment from time to time in accordance with the
following provisions:

 

(a)                                  Subdivision, Stock Dividends or
Combinations. In
case the Company shall at any time subdivide the outstanding shares of the
Common Stock or shall issue a stock dividend with respect to the Common Stock,
the Warrant Price in effect immediately prior to such subdivision or the
issuance of such dividend shall be proportionately decreased (and the number of
shares of Warrant Stock proportionately increased), and in case the Company
shall at 

 

3

 

any time combine the outstanding shares of the Common Stock, the
Warrant Price in effect immediately prior to such combination shall be
proportionately increased (and the number of shares of Warrant Stock shall be
proportionately decreased), effective at the close of business on the date of
such subdivision, dividend or combination, as the case may be.

 

(b)                                 Reclassification, Exchange, Substitution,
In-Kind Distribution.
Upon any reclassification, exchange, substitution, or other event that results
in a change of the number and/or class of the Common Stock issuable upon
exercise or conversion of this Warrant or upon the payment of a dividend in
Common Stock or property other than Common Stock, the Holder shall be entitled
to receive, upon exercise or conversion of this Warrant, the number and kind of
Common Stock and property that Holder would have received for the Warrant Stock
if this Warrant had been exercised immediately before the record date for such
reclassification, exchange, substitution, or other event or immediately prior
to the record date for such dividend. The Company or its successor shall
promptly issue to Holder a new Warrant for such new Common Stock or other
property. The new Warrant shall provide for adjustments which shall be as
nearly equivalent as may be practicable to the adjustments provided for in
this Section 3 including, without limitation, adjustments to the Warrant
Price and to the number of Common Stock or property issuable upon exercise of
the new Warrant. The provisions of this Section 3(b) shall similarly
apply to successive reclassifications, exchanges, substitutions, or other
events and successive dividends.

 

(c)                                  No Impairment. The Company shall not, by amendment of
its Articles of Incorporation or through a reorganization, transfer of assets,
consolidation, merger, dissolution, issue, or sale of Common Stock or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed under this Warrant by the Company, but
shall at all times in good faith assist in carrying out of all the provisions of
this Section 3 and in taking all such action as may be necessary or
appropriate to protect the Holder’s rights under this Section 3 against
impairment. If the Company takes any action affecting the Common Stock other
than as described above that adversely affects Holder’s rights under this
Warrant, the Warrant Price shall be adjusted downward by an amount that shall
compensate Holder as nearly as may be practicable for any such adverse
effect.

 

(d)                                 Notice. Upon any adjustment of the Warrant Price and any increase
or decrease in the number of shares of the Common Stock purchasable upon the
exercise or conversion of this Warrant, then, and in each such case, the
Company, as promptly as practicable thereafter, shall give written notice
thereof to the Holder of this Warrant at the address of such Holder as shown on
the books of the Company which notice shall state the Warrant Price as adjusted
and the increased or decreased number of shares purchasable upon the exercise
or conversion of this Warrant, setting forth in reasonable detail the method of
calculation of each.

 

(e)                                  Fractional Shares of Common Stock. No fractional shares of Common Stock
shall be issuable upon exercise or conversion of the Warrant and the number of
shares of Common Stock to be issued shall be rounded down to the nearest whole
share. If a fractional share interest arises upon any exercise or conversion of
the Warrant, the Company shall eliminate such fractional share interest by
paying the Holder an amount computed by multiplying the fractional interest by
the fair market value of a full share.

 

4

 

4.                                       Stockholder Rights. This Warrant, by itself, as
distinguished from any shares of Warrant Stock obtained hereunder, shall not
entitle its Holder to any of the rights of a stockholder of the Company.

 

5.                                       Reservation of Stock. On and after the Commencement Date, the
Company will reserve from its authorized and unissued Common Stock a sufficient
number of shares of Common Stock to provide for the issuance of Warrant Stock
upon the exercise or conversion of this Warrant. Issuance of this Warrant shall
constitute full authority to the Company’s officers who are charged with the
duty of executing stock certificates to execute and issue the necessary certificates
for shares of Warrant Stock issuable upon the exercise or conversion of this
Warrant. The Warrant Stock issuable upon exercise of the Holder’s rights
hereunder, when issued in accordance with the provisions of this Warrant, will
be validly issued, fully paid and non-assessable, and will be free of any
taxes, liens, charges or encumbrances of any nature whatsoever, provided,
however, that the Warrant Stock issuable pursuant to this Warrant may be
subject to restrictions on transfer under applicable state and/or federal
securities laws.

 

6.                                       Exercise of Warrant. This Warrant may be exercised in
whole or part by the Holder, at any time after the Commencement Date and
prior to the Termination Date, by the surrender of this Warrant, together with
the Notice of Exercise and Investment Representation Statement in the forms
attached hereto as Attachments 1 and 2, respectively, duly
completed and executed at the principal office of the Company, specifying the
portion of the Warrant to be exercised and accompanied by payment in full of
the Warrant Price in cash or by check with respect to the shares of Warrant
Stock being purchased. This Warrant shall be deemed to have been exercised
immediately prior to the close of business on the date of its surrender for
exercise as provided above, and the person entitled to receive the shares of
Warrant Stock issuable upon such exercise shall be treated for all purposes as
Holder of such shares of record as of the close of business on such date. As
promptly as practicable after such date, the Company shall issue and deliver to
the person or persons entitled to receive the same a certificate or
certificates for the number of full shares of Warrant Stock issuable upon such
exercise. If the Warrant shall be exercised for less than the total number of
shares of Warrant Stock then issuable upon exercise, promptly after surrender
of the Warrant upon such exercise, the Company will execute and deliver a new
Warrant, dated the date hereof, evidencing the right of the Holder to the balance
of the Warrant Stock purchasable hereunder upon the same terms and conditions
set forth herein.

 

7.                                       Transfer of Warrant. This Warrant may be transferred or
assigned by the Holder hereof in whole or in part, provided that the transferor
complies with applicable federal and state securities laws and provides, at the
Company’s request, an opinion of counsel reasonably satisfactory to the Company
that such transfer does not require registration under the Act and the
securities law applicable with respect to any other applicable jurisdiction and
an investment representation statement. In any such event the Company shall,
without charge, and to the extent the then Holder’s rights hereunder are so
transferred or assigned, execute and deliver a new Warrant in the name of such
assignee and, if applicable, a new Warrant in the name of the then Holder for
the portion of the rights hereunder retained by the then Holder and this
Warrant shall promptly be cancelled. The Company shall have the right to refuse
to transfer any portion of this Warrant to any person who directly competes
with the Company.

 

8.                                       Registration
Rights. For a period of five (5) years following the
date of this Warrant (the “Piggyback Rights Period”), if, following the filing
and effectiveness of a 

 

5

 

registration statement for the offering of
shares of Common Stock by the Company with the Securities and Exchange
Commission (“SEC”), the Company proposes to file any other registration
statement with the SEC on any of Forms S-1, S-2 or S-3 (each a “Registration
Statement”), the Company will give written notice to Holder at least thirty
(30) days prior to said filing date offering to include up to twenty
percent (20%) of the undersigned’s Shares received upon actual exercise of
the Warrant, subject in each case to the limitations set forth herein. Upon
receipt by the Company of a request to include in such filing a registration of
Holder’s Shares (which request shall include the facts with respect to the proposed
distribution), the Company shall include such Shares in such filing at no
expense to Holder, except for the underwriting discounts, commissions and
spreads with respect to such Shares, transfer taxes incurred by Holder and fees
and expenses of counsel for Holder, if any, all of which shall be paid by
Holder, unless otherwise required by the blue-sky laws of any state. However,
if the Company files a Registration Statement during the Piggyback Rights
Period, the Company shall prepare and file with the SEC such amendments and
supplements to such Registration Statement as may be necessary to keep it
effective for a period of the lesser of (a) 6 months following the
effective date of any Registration Statement filed on a Form S-1 or S-2, (b) 12
months following the date of any registration statement filed on Form S-3,
and (c) the time when the Shares can be sold pursuant to Rule 144 of
the Act or any other rule of similar effect. Holder agrees that if so
requested by an underwriter in connection with the initial public offering of
securities by the Company, Holder shall not sell, or make any short sale of,
the Company’s securities without the prior written consent of the underwriter
for a period of 180 days following the effective date of such Registration Statement.

 

9.                                       Termination. This Warrant shall terminate at 5:00 p.m.
California time on the Termination Date.

 

10.                                 Legends. The stock issuable, directly or indirectly, upon
exercise or conversion of the Warrant shall be imprinted with a legend in
substantially the following form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

11.                                 Miscellaneous. This Warrant shall be governed by the
laws of the State of California, without regard for the conflicts of law
provisions of the State of California or of any other state. The headings in
this Warrant are for purposes of convenience and reference only, and shall not
be deemed to constitute a part hereof. Neither this Warrant nor any term
hereof may be changed or waived orally, but only by an instrument in
writing signed by the Company and the Holder of this Warrant. All notices and
other communications from the Company to the Holder of this Warrant shall be
delivered personally, couriered, or mailed via Federal Express or certified or
registered mail, postage prepaid, return receipt requested, to the address
furnished to the Company in writing by the last Holder of this Warrant who
shall have furnished an address to the Company in writing, and if mailed shall
be deemed given upon the date of delivery or first attempted delivery as shown
on the return receipt.

 

6

 

	
   

  	
  GeoPetro Resources Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

7

 

Attachment 1

 

NOTICE OF EXERCISE

 

TO:                            GEOPETRO
RESOURCES COMPANY

 

1.                                       The undersigned hereby elects to purchase
                                                
shares of the Warrant Stock of GeoPetro Resources Company pursuant to the terms
of the attached Warrant, and tenders herewith payment of the purchase price in
full, together with all applicable transfer taxes, if any.

 

2.                                       Please issue a certificate or
certificates representing said shares of Warrant Stock in the name of the
undersigned or in such other name as is specified below:

 

	
   

  
	
  (Name)

  
	
   

  
	
   

  
	
  (Address)

  

 

 

	
   

  	
   

  	
   

  
	
  (Date)

  	
  (Name of Warrant Holder)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

Attachment 2

 

INVESTMENT REPRESENTATION STATEMENT

 

Shares of the Common Stock

(as defined in the attached Warrant) of

GeoPetro Resources Company

 

In connection with the purchase of the above-listed
Common Stock, the undersigned hereby represents to GeoPetro Resources Company
(the “Company”) as follows:

 

(a)                                  The Common Stock to be received upon the
exercise of the Warrant will be acquired for investment for its own account,
not as a nominee or agent, and not with a view to the sale or distribution of
any part thereof, and the undersigned has no present intention of selling,
granting participation in or otherwise distributing the same, but subject,
nevertheless, to any requirement of law that the disposition of its property
shall at all times be within its control. By executing this Statement, the
undersigned further represents that it 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
Common Stock issuable upon exercise of the Warrant.

 

(b)                                 The undersigned understands that the
Common Stock issuable upon exercise of the Warrant at the time of issuance may not
be registered under the Securities Act of 1933, as amended (the “Act”), and
applicable state securities laws, on the ground that the issuance of such
Common Stock is exempt pursuant to Section 4(2) of the Act and state
law exemptions relating to offers and sales not by means of a public offering,
and that the Company’s reliance on such exemptions is predicated on the
undersigned’s representations set forth herein.

 

(c)                                  The undersigned acknowledges that an investment
in the Company is highly speculative and represents that it is able to fend for
itself in the transactions contemplated by this Statement, has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of its investments, and has the ability to bear the
economic risks (including the risk of a total loss) of its investment. The
undersigned represents that it has had the opportunity to ask questions of the
Company concerning the Company’s business and assets and to obtain any
additional information which it considered necessary to verify the accuracy of
or to amplify the Company’s disclosures, and has had all questions which have
been asked by it satisfactorily answered by the Company.

 

(e)                                  The undersigned acknowledges that the
Common Stock issuable upon exercise of the Warrant must be held indefinitely
unless subsequently registered under the Act or an exemption from such
registration is available. The undersigned is aware of the provisions of Rule 144
promulgated under the Act which permit limited resale of shares purchased in a
private placement subject to the satisfaction of certain conditions, including,
among other things, the existence of a public market for the shares, the
availability of certain current public information about the Company, the
resale occurring not less than one year after a party has purchased and paid
for the security to be sold, the sale being through a “broker’s transaction” or
in transactions 

 

 

directly with a “market
makers” (as provided by Rule 144(f)) and the number of shares being sold
during any three-month period not exceeding specified limitations.

 

	
   

  	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Typed or Printed Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Title)

  

 

2

 

Attachment 3

 

NOTICE OF CONVERSION

 

TO:                            GeoPetro
Resources Company

 

1.                                       The undersigned hereby elects to acquire                                        
shares of the Common Stock of GeoPetro Resources Company pursuant to the terms
of the attached Warrant, by conversion of
         percent
(    %) of the Warrant.

 

2.                                       Please issue a certificate or
certificates representing said shares of Common Stock in the name of the
undersigned or in such other name as is specified below:

 

	
   

  
	
  (Name)

  
	
   

  
	
   

  
	
  (Address)

  

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Typed or Printed Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Title)

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