Document:

Exhibit 10.1

 

 

November 21, 2014

 

[Shareholder name]

[Shareholder address]

[Shareholder email]

 

		Re:	Registration Damages Settlement Agreement

 

Dear Investor:

 

You (“Purchaser”) purchased
securities of Li3 Energy, Inc. (“we,” “us” or the “Company”) in a private placement offering
that closed between April 7, 2011 and May 19, 2011 (the “2011 PPO”).All capitalized terms used in this settlement agreement
(the “Agreement”) and not otherwise defined shall have the respective meanings ascribed to such terms in the Registration
Rights Agreement, dated as of April 7, 2011, by and among Li3 Energy, Inc. and the Purchasers party thereto.

 

Under the terms of the Registration Rights
Agreement we entered into with you in connection with the offering, if we fail to file the Registration Statement by June 21, 2011,
or fail to cause the Registration Statement to be declared effective by November 28, 2011, then, for each month that the Event
is not cured, we are required to pay each investor an amount in cash, as liquidated damages, equal to 2% of the purchase price
paid by you in the 2011 PPO, or $[X] (the “Penalty”).

 

Due to the need to focus Company resources
and management’s attention during April and May 2011 on concluding the 2011 PPO, the strategic financing by POSCO, and completing
our acquisition of a 60% ownership interest in the Maricunga Project, the registration statement (the “Registration Statement”)
required by the Registration Rights Agreement we entered into with you in connection with the 2011 PPO was filed on July 1, 2011,
ten (10) days after the Filing Date, and the Registration Statement was not declared effective until March 19, 2012, one hundred
twelve (112) days after the Effectiveness Date.

 

On September 23, 2014, the Company ́s
Board of Directors determined to issue shares of common stock in lieu of cash, in an amount up to $250,000 in aggregate, in order
to fully settle the Penalty. The number of shares to be issued to each 2011 PPO Purchaser will be calculated based on the volume
weighted average price of the Company ́s common stock for the thirty days prior to, and including, the date upon which the
Company obtains approval for the Agreement from shareholders representing 67% or more of the 2011 PPO Purchasers.

 

    	 

    	 

    

 

For the following reasons, we are requesting
that you accept this settlement in lieu of the Penalty:

 

		(a)	The delay was caused in large part by the Company’s efforts to finalize its acquisition of
Maricunga and the strategic financing deal with POSCO;

 

		(b)	The foregoing transactions were likely of greater long-term value to the Holders than more expeditious
effectiveness of the Registration Statement would have been;

 

		(c)	It is in the best interests of the Company, and all of its stockholders to retain all of its capital
resources in order to execute its business plan;

 

		(d)	At all times since the Effectiveness Date, all the Shares have been eligible for public sale immediately
under the Securities Act pursuant to Rule 144;

 

		(e)	At all times since the Effectiveness Date, the Warrants have been significantly out-of-the-money,
so no Purchaser would have had any immediate need to transfer Warrant Shares; and

 

		(f)	The Registration Statement was ultimately declared effective on March 19, 2012.

 

We ask you to sign the Agreement below
as evidence of your agreement to settle1, for and on behalf of all Holders2, the right to receive liquidated
damages and all other related or similar rights under Section 2(d) of the Registration Rights Agreement with respect to the failure
of the Company to file the Registration Statement by the Filing Date or to cause the Registration Statement to become effective
by the Effectiveness Date.

 

By signing below, you are agreeing to the
Agreement. The Agreement shall become effective once the persons who have executed them (the “Consenting Investors”)
constitute the Supermajority Purchasers and the Supermajority Holders, respectively.

 

1.            Concurrently
with the execution hereof, and in full and complete satisfaction of any and all claims by the Purchasers or any Purchaser relating
to the Penalty, the Company shall issue to the Purchasers, pro rata in accordance with their respective investment amounts in the
Company in connection with the 2011 PPO, an aggregate of $[Y] in shares (the “Penalty Shares”) of restricted
common stock, par value $0.001 (“Common Stock”) of the Company.

 

 

1Particular provisions of the
Registration Rights Agreement may be waived with and only with an agreement or consent in writing signed by the Company and the
Holders of 67% or more of the then outstanding Registrable Securities (“Supermajority Holders”), pursuant to Section
6(f) of the Registration Rights Agreement. This Agreement is dated and shall be effective upon execution by Holders constituting
the Supermajority Holders.

 

2This Agreement is being signed
by each undersigned Holder with respect to all Registrable Securities held by all Holders, as stockholders of the Company and for
all other purposes with respect to this Registration Damages Waiver. This Registration Damages Waiver is irrevocable and shall
be effective with respect to each of the undersigned Supermajority Holders and all other Holders and all affiliates, successors,
heirs, personal representatives, and assigns of such Holders.

 

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2.            Each Purchaser,
as RELEASOR, in consideration of the agreement contained herein and for other good and valuable consideration received from the
Company, as RELEASEES, the receipt of which is hereby acknowledged, does hereby fully, finally and unconditionally release and
forever discharge the RELEASEES, their former, present, and future partners, officers, employees, representatives, stockholders,
directors, agents, predecessors, former and present subsidiaries, parent entities, affiliates, divisions, licensees, receivers,
distributors, successors and assigns, heirs, executors, administrators, attorneys, associates, and anyone affiliated with or acting
on behalf of any of them (collectively, the “RELEASED PARTIES”) from all actions, causes of action, suits, debts, dues,
sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances,
trespasses, damages, judgments, extents, executions, claims, and demands whatsoever, in law, admiralty or equity, which against
the RELEASED PARTIES, such RELEASOR, such RELEASOR’S attorneys, associates, agents, successors, assigns, heirs, parent or
subsidiary corporations, and anyone affiliated with or acting on behalf of any of them, ever had, now have or hereafter can, shall
or may have, from the beginning of the world to the day of the date of this Agreement which arise out of or relate to the 2011
PPO.

 

3.            The parties acknowledge
and agree that this Agreement embodies a compromise settlement which is not in any respect, nor for any purposes, to be deemed
or construed to be an admission or concession of any liability whatsoever on the part of any of the parties.

 

4.            Representations
and Warranties of the Purchasers. Each Purchaser, severally and not jointly, hereby represents, warrants and acknowledges as
to the following as of the date hereof:

 

(a)            Own Account.
Such Purchaser understands that the Penalty Shares are “restricted securities” and have not been registered under the
Securities Act of 1933 (“1933 Act”) or any applicable state securities law and is acquiring the Penalty Shares
as principal for its own account and not with a view to or for distributing or reselling such Penalty Shares or any part thereof
in violation of the 1933 Act or any applicable state securities law, has no present intention of distributing any of such Penalty
Shares in violation of the 1933 Act or any applicable state securities law and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of such Penalty Shares in violation of the 1933 Act or any applicable
state securities law.

 

(b)            Purchaser Status.
At the time such Purchaser was offered the Penalty Shares, it was, and as of the date hereof it is, either: (i) an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(5), (a)(6), (a)(7) or (a)(8) under the 1933 Act or (ii) a “qualified
institutional buyer” as defined in Rule 144A(a) under the 1933 Act. Such Purchaser is not required to be registered as a
broker-dealer under Section 15 of the Exchange Act.

 

(c)            Experience
of Such Purchaser. Such Purchaser has such knowledge, sophistication and experience in business and financial matters so as
to be capable of evaluating the merits and risks associated with its acquisition of the Penalty Shares, and has so evaluated the
merits and risks of such acquisition. Such Purchaser is able to bear the economic risk associated with the acquisition of the Penalty
Shares and is able to afford a complete loss of the value of the Penalty Shares.

 

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(d)            No General
Solicitation. Such Purchaser is acquiring the Penalty Shares as part of a privately negotiated settlement with the Company
and not as a result of any advertisement, article, notice or other communication regarding the Penalty Shares or otherwise published
in any newspaper, magazine or similar media or broadcast over television, radio or the Internet, or presented at any seminar or
any other general solicitation or general advertisement.

 

(e)            Reliance on
Representations and Warranties. Each Purchaser understands that the Penalty Shares are being issued to such Purchaser in reliance
on exemptions contained in specific provisions of United States federal securities laws and that the Company is relying upon the
truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Purchaser set forth
in this Agreement in order to determine the applicability of the exemptions contained in such provisions.

 

(f)            Legend.
Each Purchaser acknowledges and agrees that the certificates representing the Penalty Shares shall bear a restricted legend, in
the form and substance as set forth below, prohibiting the offer, sale, pledge, mortgage or transfer of the securities, except
(1) (i) pursuant to an effective registration statement filed under the 1933 Act, (ii) pursuant to an exemption from registration
provided by Rule 144 under the 1933 Act (if available), or (iii) pursuant to any other exemption from the registration requirements
of the Securities Act.

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL
FOR THIS CORPORATION, IS AVAILABLE.”

 

5.            This Agreement
shall be binding upon the parties hereto and their respective successors, assigns, heirs and representatives.

 

6.            This Agreement
shall be governed by and construed in accordance with the laws of the State of New York without regard to conflict of law principles.
The invalidity or unenforceability of any one or more phrases, clauses or sections of this Agreement shall not affect the validity
or enforceability of the remaining portions of it.

 

7.            Any dispute that
arises under this Agreement shall be adjudicated in the state or the federal courts located in New York, New York.

 

8.            This Agreement
may be executed in counterparts, in PDF format or by facsimile, each of which shall be deemed an original but when taken together
shall constitute one and the same agreement.

 

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9.            This Agreement
may not be modified or amended orally, and no alleged amendment, modification or waiver of this Agreement shall have any force
or effect, unless set forth in writing and signed by the party against whom enforcement is sought.

 

10.            This Agreement
contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or other negotiations,
arrangements, representations, agreements, including whether in writing or oral agreements.

 

Please let me know whether you have any
questions about this request or the Company’s progress. We appreciate your continued support in our efforts.

 

Li3 ENERGY, INC.

 

	By:	 	 
	Name:  Luis Saenz	 
	Title:  Chief Executive Officer	 

 

[Purchaser/Holder signature page follows
immediately]

 

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Consenting Investor Signature page to
Registration Damages Settlement Agreement

 

The undersigned Consenting Investor agrees to the above Registration
Damages Settlement Agreement:

 

	CONSENTING INVESTOR (individual)	 	CONSENTING INVESTOR (entity)
	 	 	 
	 	 	 
	Signature	 	Name of Entity
	 	 	 

	 	 	By:	 
	Print Name	 	 	Signature

	 	 	 
	 	 	Print Name:	 
	Signature (if Joint Tenants or Tenants in Common)	 	 

	 	 	Title:	 
	 	 	 	 
	Date:	 	 	 	 

 

    	6Exhibit 10.2

 

	Eduardo
    Avello Concha	 
	Notary Public	 
	Orrego Luco 053 Phone 3334727	 
	Providencia	 

 

  Digest: 3442-2915

  OT      759823

 

LOAN CONTRACT AND PLEDGE
WITHOUT TRANSFER OF POSSESSION

 

BBL SpA

 

Li3 ENERGY INC.,

 

 

 

In
Santiago, Chile, on February 3, 2015, before me, Eduardo
Avello Concha, Title Holding Notary Public of the Twenty-Seventh Public Notary of Santiago, with trade activity at Calle Orrego
Luco 0153 of the district of Providencia, appears: One) BBL SpA, company incorporated in Chile, of the investment trade activity,
Single Taxing No. 66.319.337-3, which is duly represented herein jointly by Mr. ANDRÉS LAFUENTE DOMÍNGUEZ,
Chilean, married, business administration mayor, National Identification No. 10,771,410-3, and by Mr. FRANCISCO JAVIER BARTUCEVIC
SÁNCHEZ, Chilean, married, attorney, National Identification No. 10,567,206-3, all with residence at Rosario Norte
No. 100, Oficina 403, District of Las Condes, Santiago, Chile, hereinafter called "BB1" or the "Lender";
Two) Li3 ENERGY INC., company incorporated under the laws of the State of Nevada of the United States of America,
of the mineral production and trading activity, Single Taxing No. 59,176,370-9, which appears duly represented herein by its General
Manager and CEO Mr. LUIS FRANCISCO SÁENZ ROCHA, Bolivian, married, economist, Passport No. 2,233,208 issued by the
Republic of Bolivia, both with legal residence for these purposes in this city, Marchant Pereira No. 150, Oficina 802, District
of Providencia, hereinafter indistinctly called as "Li3" or the "Debtor"; all those appearing
before me of legal age, who credit their identify with the aforementioned identification cards and expound that they have agreed
as follows: ONE: Loan. Between BBL and Li3, a loan contract or loan of money in conformance with what is provided for in Law No.
18,010 and articles 2,196 and those that follow of the Civil Code is entered into through this instrument hereinafter the Loan
Contract. Consequently BBL delivers in this act as loan the sum of US$ 200,000 through bank transference according to the following
instructions: Beneficiary: Li3 energy, Inc; Account No.: 2,535,817,858; Bank: BBVA Compass; ABA#: 62,186, SWIFT Code: CPASUS
44 – The debtor declares to have received such sum to its most sincere and total satisfaction and is forced to pay in a
full manner and in a single time on August 3, 2016. TWO: The loan will be on-sight, i.e., the debtor is forced to return
the sum received upon the sole requirement by the Creditor or Lender, which will be able to be carried out at any time starting
from this date, without detriment to the time period established in the prior clause. THREE: The sum received in loan must
be returned by Li3 to BBL in US Dollars, accruing an interest rate of 8.5% annually. FOUR: Destination of the Loan. Express
evidence is left herein that the Loan will be allocated by the debtor for the payment of the company’s operational debts.

 

 

 

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	Eduardo Avello Concha	 
	Notary Public	 
	Orrego Luco  053-Phone 3334727	 
	Providencia	 

 

 

 

FIVE: Through this act and in conformance
with the provisions contained in Article 14 of Law 20,190 and its regulation, Li3 comes to constitute a pledge without transfer
of possessions with a general guarantee clause of faithful, full and timely compliance, of all and each one of the obligations
of the debtor in favor of the creditor and that whether directly or indirectly are related to the loan referred to in the previous
clauses, as well as similarly the payment of costs accrued from its eventual judicial or extrajudicial collections, over two nominative,
subscribed and paid shares, without nominal value, of a same and only series of shares of the Company Sociedad Minera Li Energy
SpA which is title holder of, closely-held stock company incorporated by public deed granted in Santiago before the Notary Public
of Santiago Mr. Patricio Zaldívar Mackenna dated June 16, 2010, whose extract was inscribed in the Trade Register of Santiago
on Page 31,270 No. 21,535 and published in the Official Gazette on June 25, 2010, Single Taxing No. 76,102,972- K share that is
not issued and figures registered on behalf of the debtor in the Shareholders Register of the Company. SIX: Similarly Li3
is forced not to have available, lease, levy or transfer at any deed the shares given in pledge unless the Creditor authorizes
to do so in writing. The Parties agree that according to what has been provided for in Title II, Article 11, of Article 14 of
Law 20,190 that the shares given in pledge cannot be replaced, transformed or transferred all or a part of them, without the prior
written consent of the Creditor. SEVEN: The Creditor hereby declares that it accepts the pledge and prohibitions constituted
by this instrument and the other stipulations and obligations contracted by the pledging debtor through this instrument. The pledging
debtor will be able to claim raising the pledge, whether totally or partially and prohibitions that are constituted by this instrument,
while it has not given full and total compliance of all and each one of the obligations that the debtor holds with the creditor.

 

 

 

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	Eduardo Avello Concha	 
	Notary Public	 
	Orrego Luco  053-Phone 3334727	 
	Providencia	 

 

 

 

EIGHT:
Li3 declares that the shares that are delivered in pledge belong to it as the only and exclusive owner that are not subject to
subsequent conditions, price balances, embargos, litigation, prohibitions, encumbrances or other limitations to the property that
limit or encumber the use, enjoyment and provision; that there are also no privileges or rights of third parties that could be
executed with preference to the guarantee constituted by this deed. NINE: Li3, is forced to notify the creditor, through
a certified letter addressed to its residence stating in the appearance, all embargos, seizure, significant loss or significant
impairment, that the pledged shares have suffered, within the first five working banking days following the occurrence of the
fact; similarly, the constituent is forced to make known the existence of the pledge that is accounted for in this instrument,
the creditor that establishes later embargo over the pledged good, according to the same procedure and within the same time period
referred to in this clause. TEN: The parties agree that in the non-payment of any of the obligations guaranteed with this
pledge or of any other that the debtor will have with the creditor, as well as the debtor’s bankruptcy or insolvency, or
non-compliance of any of the obligations taken on by the constituent of the pledge in this instrument, or rather if the constituent
has incurred in falseness or omission regarding any of the data or background information contained in this deed, or the constituent
company does not have or has lost the property of any of the pledged goods, grants faculties to the creditor to make demandable
all the obligations that are guaranteed by this guarantee, whatever their origin, maturity date or amount, consequently, the creditor
being able to make effective all the credits over the constituted pledge. In case that any of the goods that are pledged in this
act were embargoed at any time by a third party and the creditor is called on for the purposes of exercising their right, the
creditor is granted the faculty to immediately request the advanced payment of a sum equal to the commercial value of the appraisal
of the action pledged with the embargo.

 

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	Eduardo Aveno Concha	 
	Notary Public	 
	Orrego Luco  053-Phone 3334727	 
	Providencia	 

 

This payment must be carried out by the constituent company within the ten days following the requirement that the creditor makes
in writing. In case that the constituent debtor does not make the advanced payment upon the creditor’s complete satisfaction,
within the time period established herein above, it will be granted the faculty to make demandable all the obligations that are
backed by this guarantee, whatever their origin, maturity date or amount, the creditor, being able to make effective all credits
over the constituted pledge, expired or pending maturity that the debtor company has in regards to the creditor. ELEVEN:
This pledge and prohibition will benefit the creditor and the rights that are granted could be exercised by the same, or by those
who have the capacity as creditors or assignees ones or the others, and who will surrogate legally or conventionally in their
rights. All successors or assignees and those who surrogate legally or conventionally in the rights, will have against the constituting
company the same rights and benefits that this deed grants to the creditor, considering as such for all legal and contractual
purposes that were to be effective. It is expressly agreed to that the creditor will be able to assign to third parties, the credits
that this pledge guarantees, jointly with such guarantee. TWELVE: Li3 will not be able to have available the shares constituted
in pledge to be transferred in the Stock Exchange, factory, fair, auction house, store, warehouse or any other analogue establishment
in which the property is sold of the same class, without the creditor’s prior and written authorization. If the creditor
were to do so without this authorization, it will be able to make demandable all the obligations that the constituent company
has in favor of the creditor, which will be understood to be of an expired time period for all legal effects and will be accrued
from this point on at the maximum interest allowed by law, in conformance with Article Seventeen of Article Fourteen of Law 20,190.
THIRTEEN: The debtor will be in charge of all the custody expenses, preservation and maintenance of the pledge, as well
as also expenses, taxes, public notary rights and inscription of the registers that were to correspond and those derived from
the public supplementary deeds that could be necessary to grant in order to clarify, rectify or modify this instrument. THIRTEEN:
The creditor and the debtor came to confer irrevocable mandate to the attorneys Messrs. Francisco Bartucevic Sánchez and
Mirco Hilgers Gutschendies so that both acting jointly and in representation of the parties subscribe the public and private instruments
that were necessary to clarify, rectify or supplement in this public deed, solely in what relates to the individualization of
the shares forming this pledge. FOURTEEN: For all the purposes of this instrument, the parties appearing in this legal
act constitute residence in the District of Santiago and submit to the competence of its Regular Courts of Law. FIFTEEN:
Li3comes in this act to grant irrevocable mandate to Mr. Patrick Alberto Cussen Mackenna, National Identification No. 4,779,235-5,
bearing residence at Avenida Américo Vespucio Sur 80, Piso 11, Las Condes, Santiago, for the purposes so that they can
be validly notified on the execution of this debt and pledge constituted in favor of the debtor up to the definite sentence that
is decreed in the respective cause, not being able to alter the name and faculties of this agent without the prior acceptance
of the creditor. SIXTEEN: The bearer of a legalized copy of this deed or of an authorized extract of the same to require
all inscriptions, sub-inscriptions and notations that proceed for the complete legalization of the pledge that is constituted
by this instrument. The legal capacity of Mr. Luis Francisco Sáenz Rocha to represent Li3 Energy Inc., is evident in this
private instrument granted dated January 27, 2014 in the city of Nueva York, United States of America and authorized on the same
date before the Notary Public of New York, which is duly legalized. The legal capacity of Mr. Andres Lafuente Domínguez
and Mr. Francisco Bartucevic Sánchez to represent BBL SpA is evident in public deed granted in Santiago before the Notary
Public Mr. Eduardo Avello Concha dated September 5, 2013. In evidence and prior to reading, the people appearing before me subscribe.
A copy is given. 

 

 

 

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	Eduardo Aveno Concha	 
	Notary Public	 
	Orrego Luco  053-Phone 3334727	 
	Providencia	 

 

IN
WITNESS THEREOF.

 

 

 

 

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THIS
IS A FAITHFUL COPY OF THE ORIGINAL

Santiago,
April 13, 2015

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