UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 8-K


CURRENT REPORT


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Event: November 5, 2010


GOENERGY, INC

 (Exact name of registrant as specified in its charter)


Delaware

000-33383

98-0357690

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

 

3960 Howard Hughes Parkway, Suite 500

Las Vegas, NV 89169

(Address of principal executive offices)


Registrant’s telephone number, including area code 310-600-8757


===========================================================================


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))











ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT


On November 5, 2010, GoEnergy, Inc., a Delaware corporation (the “Registrant”), entered into a Share Purchase and Share Exchange Agreement (the “Exchange Agreement”) with Strato Malamas, as the majority stockholder of the Registrant, Kick the Can Corp., a Nevada corporation (“KTC Corp”), Kicking the Can, L.L.C., a Delaware limited liability company, as the majority shareholder of KTC Corp., and the other shareholders of KTC Corp. that are signatories to the Exchange Agreement


Pursuant to the terms of the Exchange Agreement, the shareholders of KTC Corp agreed to transfer all of their shares of common stock of KTC Corp. to the Registrant in exchange for the issuance of an aggregate of 33,430,107 shares of the Registrant’s common stock, which shall represent approximately 95.51% of the issued and outstanding shares of common stock of the Registrant as of the date of the closing (the “Closing Dater”) of the transactions contemplated by the Exchange Agreement.  KTC Corp shall become a wholly-owned subsidiary of the Registrant on the Closing Date.


In addition, pursuant to the terms of the Exchange Agreement, Strato Malamas, as majority shareholder of the Registrant, agreed to surrender for cancellation as of the Closing Date his 2,750,000 shares of common stock of the Registrant.  The shares to be surrendered for cancellation by Mr. Malamas represent 100% of his interest in the Registrant.


Simultaneous with the execution of the Exchange Agreement, the Registrant made a loan to KTC Corp in the principal amount of $200,000 pursuant to the terms of a promissory note attached as Exhibit A to the Exchange Agreement.  The Registrant also issued (i) promissory notes in the aggregate principal amount of $200,000 (the “Bridge Notes”) to certain persons, which Bridge Notes are in the form filed as Exhibit 10.7 hereto and incorporated herein by reference, and (ii) Warrants to the holders of the Bridge Notes, which Warrants are in the form filed as Exhibit 4.2 hereto and incorporated herein by reference.  Such Warrants are exercisable at a price of $0.60 per share, have an anti-dilution provision, have a cashless exercise feature, and grant each holder of a Bridge Note the right to purchase that number of common shares of the Registrant which is equal in the aggregate to 100% of the number of common shares of the Registrant that would be issuable upon full conversion of such holder’s Bridge Note.


As of the date of the execution of the Exchange Agreement, there were no material relationships between the Registrant or any of its affiliates and KTC Corp other than in respect of the Exchange Agreement.


The foregoing description of the Exchange Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of the Exchange Agreement, which is filed as Exhibit 2.1 hereto and incorporated herein by reference.


ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT


On November 5, 2010, the Registrant issued promissory notes (“Bridge Notes”) to four creditors in the aggregate principal amount of $200,000 in conjunction with the execution of the Exchange



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Agreement described in Item 1.01 above.  The Bridge Notes are in the form attached hereto as Exhibit 10.7 and are incorporated herein by reference.  


The Bridge Notes bear interest at the rate of eight percent (8%) per annum and are payable upon demand.  Prior to the Registrant completing an offering consisting of a private placement offering of the Registrant’s securities in an amount of not less than $600,000, in which event the Bridge Notes will mandatorily convert, the holders of the Bridge Notes have the right at any time to voluntarily convert the principal and accrued but unpaid interest thereof into shares of common stock of the Registrant at a price of $0.40 per share.  . The Bridge Notes have an anti-dilution provision and grants the holder piggyback registration rights.


 

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS


(d)

Exhibits


The following Exhibit is filed with this Current Report on Form 8-K:


2.1

Share Purchase and Share Exchange Agreement, dated as of November 5, 2010, by and among the Registrant, Strato Malamas, as the majority stockholder of the Registrant, Kick the Can Corp, a Nevada corporation, Kicking the Can, L.L.C., a Delaware limited liability company, as the majority shareholder of Kick the Can Corp., and the other shareholders of Kick the Can Corp. that are signatories thereto.


4.2

Form of Warrant


10.7

Form of Bridge Note issued as of November 5, 2010



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.



 

GoEnergy, Inc

(Registrant)

 

 

 

 

Date: November 15, 2010

/s/ Terry Fields, Chief Executive Officer





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SHARE PURCHASE AND SHARE EXCHANGE AGREEMENT


by and among


GoEnergy, Inc.,

a Delaware corporation


and


Strato Malamas,

As the Majority Stockholder of GoEnergy, Inc.


and


Kick the Can Corp.,

a Nevada corporation


and


Kicking the Can, LLC,

a Delaware limited liability company,

as the Majority Shareholder of Kick the Can Corp.


and


Certain Shareholders of Kick the Can Corp,

who are signatories hereto,




Dated as of November 5, 2010









SHARE PURCHASE AND SHARE EXCHANGE AGREEMENT


This SHARE PURCHASE AND SHARE EXCHANGE AGREEMENT (the “ Agreement ”) is entered into as of this 5th day of November, 2010 by and among GoEnergy, Inc., a Delaware corporation with an address at #2129-4951 Netarts Highway West, Tillamook, OR 97141-9467 (“ GoEnergy ”), Strato Malamas, an individual with an address c/o GoEnergy, Inc., #2129-4951 Netarts Highway West, Tillamook, OR 97141-9467 and the majority stockholder of GoEnergy (the “ GoEnergy Majority Stockholder ”), Kick the Can Corp., a Nevada corporation with an address at 1010 Avenue of the Americas, Suite 302, New York, NY  10018 (“ KTC Corp. ”), Kicking the Can, L.L.C., a Delaware limited liability company with an address c/o Wizard Entertainment, 1010 Avenue of the Americas, Suite 302, New York, NY  10018 and the majority shareholder of KTC Corp. (the “ KTC Majority Shareholder ”), and certain shareholders of KTC Corp. that are signatories hereto (collectively, the “ KTC Signatories ” and, together with the KTC Majority Shareholder, the “ KTC Shareholders ”). KTC Corp., the KTC Majority Shareholder and the KTC Signatories are hereinafter referred to collectively as the “ KTC Parties ” and are each, a “ KTC Party ”.  Each of GoEnergy, the GoEnergy Majority Stockholder, KTC Corp., the KTC Majority Shareholder, and the KTC Signatories is a “ Party ” and are together, the “ Parties.


WHEREAS , GoEnergy’s common stock is publicly quoted on the Over-the-Counter Bulletin Board; and


WHEREAS , the KTC Parties believe that it is in their respective best interests for them  to exchange (the “ Exchange ”) all of their respective shares of common stock, $.0001 par value per share, of KTC Corp. (the “ KTC Shares ”) for newly-issued shares of common stock of GoEnergy (the “ Exchange Shares ”); and


WHEREAS , GoEnergy believes it is in its best interests of its stockholders to acquire all of the KTC Shares, which constitute 100% of the issued and outstanding shares of common stock, par value $.0001 per share, of KTC Corp. (the “ KTC Corp. Shares ”), in exchange for the issuance of the Exchange Shares, all upon the terms and subject to the conditions set forth in this Agreement; and


WHEREAS , it is the intention of the Parties that the Exchange qualify as a: (i) tax-free organization under Section 368(a)(1)(B) of the United States Internal Revenue Code of 1986, as amended; and (ii) transaction in securities exempt from registration or qualification under the Securities Act of 1933, as amended (the “ Securities Act ”).


NOW THEREFORE , on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the Parties to be derived herefrom, and intending to be legally bound hereby, the Parties hereby agree as follows:



ARTICLE I


SHARE EXCHANGE


Section 1.01

Incorporation of Recitals . The recitals set forth hereinabove are hereby incorporated herein by this reference with the same force and effect as if fully hereinafter set forth.



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Section 1.02

The Exchange .

(a)

On the terms and subject to the conditions set forth in this Agreement, on the date (the “ Closing Date ”) of the consummation of the transactions contemplated hereby (the “ Closing ”), each KTC Shareholder shall assign, transfer and deliver, free and clear of all Liens (as defined herein), all of its KTC Shares as set forth in Schedule I attached hereto (the “ Exchange Schedule ”) in exchange for the number of Exchange Shares, which shall be free and clear of any and all Liens, set forth opposite such KTC Shareholder’s name in the Exchange Schedule.  


(b)

As the result of the Exchange, (i) GoEnergy shall acquire 100% of the issued and outstanding KTC Corp. Shares and KTC Corp. shall become a wholly owned subsidiary of GoEnergy and  (ii) the KTC Shareholders shall have received an aggregate of 33,430,107 shares of common stock, par value $0.001 per share, of GoEnergy (the “ GoEnergy Common Shares ”), which shall constitute 95.51% of the total shares GoEnergy Common Shares issued and outstanding on a fully diluted basis on the Closing Date.  


Section 1.03

The Closing .


(a)

The Closing shall take place at 12:00 p.m. (New York City time) at the offices of Anslow & Jaclin, LLP, 195 Route 9 South, Suite 204, Manalapan, New Jersey, on the earlier of (i) the date that is ten (10) business days after the execution of this Agreement and (ii) the date on which all of the conditions precedent set forth in Articles V , VI and VII hereof are satisfied or waived (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions), unless another time, place or date, or any or all, are agreed to in writing by the Parties.


(b)

On the Closing Date, the KTC Shareholders shall surrender their stock certificates representing their respective KTC Shares to GoEnergy, or its registrar or transfer agent, and be entitled to receive a certificate or certificates evidencing such KTC Shareholder’s Exchange Shares.


(c)

Upon the Closing, there shall be 35,000,000 GoEnergy Common Shares issued and outstanding.


Section 1.04

Cancellation of Certain Shares of GoEnergy Majority Shareholder’s GoEnergy Common Stock.  Prior to the Closing Date, the GoEnergy Majority Stockholder shall surrender for cancellation, and GoEnergy shall cancel, 2,750,000 GoEnergy Common Shares of the GoEnergy Majority Stockholder, which shall constitute 100% of the GoEnergy Majority Stockholder’s interests in GoEnergy.


Section 1.05

Termination . This Agreement may be terminated by the board of directors of KTC Corp. (the “ KTC Board ”) or the board of directors of GoEnergy (the “ GoEnergy Board ”) only in the event that GoEnergy or KTC Corp., as applicable, does not meet their respective conditions precedent set forth in Articles V , VI and VII hereof, respectively.  If this Agreement is terminated pursuant to this Section 1.05, this Agreement shall be of no further force or effect, and no obligation, right, or liability shall arise hereunder for any Party, except as expressly provided herein.




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ARTICLE II

REPRESENTATIONS, COVENANTS AND WARRANTIES OF KTC CORP.


KTC Corp. represents and warrants to GoEnergy that, as of the date hereof and the Closing Date (with the same force and effect as if such representations and warranties were made at and as of the Closing Date), except for changes therein permitted by this Agreement and those representations and warranties that speak of a different date,:


Section 2.01

Incorporation; Authorization; Enforceability .

(a)

KTC Corp. is duly incorporated, validly existing and in good standing under the laws of Nevada.  KTC Corp. has the power and authority to carry on its business as it is now being conducted;


(b)

The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any provision of the Articles of Incorporation of KTC Corp.  KTC Corp. has full power and authority to enter into this Agreement and consummate the transactions contemplated hereby; and


(c)

When fully executed by all  Parties, this Agreement constitutes the valid and binding obligation of KTC Corp., enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, or principles of equity.


Section 2.02

Authorized Shares .  The number of shares of common stock that KTC Corp. is authorized to issue is 60,000,000 shares.  There are 16,000,000 shares currently issued and outstanding.  The issued and outstanding shares are validly issued, fully paid and non-assessable.


Section 2.03

Options or Warrants .  There are no existing options, warrants, calls or commitments of any character relating to any authorized but unissued KTC Corp. Shares.


Section 2.04

No Dividends, Options or Warrants .  KTC Corp. has not (i) declared or made, or agreed to declare or make, any payment of dividends or distributions of assets to its shareholders or purchased or redeemed, or agreed to purchase or redeem, any of its shares or (ii) granted, or agreed to grant, any options, warrants, or other rights for its stocks, bonds or other corporate securities calling for the issuance thereof, except in connection of this Agreement.


Section 2.05

Litigation and Proceedings .  There are no material actions, suits, proceedings or investigations pending against KTC Corp. before any court or other governmental agency or instrumentality.  


Section 2.06

No Conflicts .  The execution, delivery and performance of this Agreement by KTC Corp. will not: (i) require the consent of any third party or governmental entity under any laws; (ii) violate any laws applicable to KTC Corp. or its capital stock; or (iii) violate or breach any contractual obligation to which KTC Corp. is a party or its capital stock is bound.


Section 2.07

Compliance with Laws and Regulations .  To its knowledge, KTC Corp. has complied with all applicable statutes and regulations, except to the extent that noncompliance would not



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materially and adversely affect the business, operations, properties, assets or condition of KTC Corp., and except to the extent that noncompliance would not result in the occurrence of any material liability for KTC Corp.


ARTICLE III


REPRESENTATIONS AND WARRANTIES OF

THE KTC SHAREHOLDERS


Except as set forth in the disclosure schedules to this Article III that are attached hereto (the “ KTC Shareholder Schedules ”), which exceptions shall be deemed to be part of the representations and warranties made hereunder, the KTC Shareholders, severally but not jointly, represent and warrant to GoEnergy that, as of the date hereof and the Closing Date (with the same force and effect as if such representations and warranties were made at and as of the Closing Date), except for changes therein permitted by this Agreement and those representations and warranties that speak of a different date,:


Section 3.01

Good Title .  Such KTC Shareholder is the record and beneficial owner, and has good title to, its KTC Corp. Shares, with the full right and authority to sell and deliver such KTC Corp. Shares, free and clear of any and all Liens, to GoEnergy pursuant to the Exchange.  GoEnergy, as the new owner of such KTC Corp. Shares, will receive good title to such KTC Corp. Shares, free and clear of all Liens.


Section 3.02

Due Formation; Power and Authority .  (a)  Such KTC Shareholder is duly formed, validly existing and in good standing under the laws of the State of its formation.  Such KTC Shareholder has the power and authority to carry on its business as it is now being conducted.


(b)

Such KTC Shareholder, (i) if a Person (as defined herein) other than an individual, has the full legal company power and authority and (ii) if an individual, is of majority age and has the legal capacity, to execute and deliver this Agreement and consummate the transactions contemplated hereby, and to perform its obligations under this Agreement.  This Agreement constitutes a legal, valid, and binding obligation of such KTC Shareholder, enforceable against such KTC Shareholder in accordance with its terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, or principles of equity.


Section 3.03

No Conflicts .  The execution and delivery of this Agreement by such KTC Shareholder and the performance by such KTC Shareholder of its obligations hereunder in accordance with the terms hereof: (i) will not require the consent of any third party or governmental entity under any laws; (ii) will not violate any laws applicable to such KTC Shareholder or its KTC Corp. Shares; and (iii) will not violate or breach any contractual obligation to which such KTC Shareholder is a party or under which its KTC Corp. Shares are bound.


Section 3.04

Acquisition of Exchange Shares for Investment .    


(a)

Purchase Entirely for Own Account .  The Exchange Shares proposed to be acquired by such KTC Shareholder hereunder will be acquired for investment for its own account and not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and such KTC



4







Shareholder has no present intention of selling, granting any participation in or otherwise distributing the Exchange Shares, except in compliance with applicable securities laws.  Such KTC Shareholder further represents that it does not have any contract, undertaking, agreement or arrangement with any Person (as defined herein) to sell, transfer or grant participation to such Person with respect to any of the Exchange Shares.


(b)

Such KTC Shareholder (i) can bear the economic risk of its investment and (ii) possesses such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in GoEnergy and its securities;


(c)

Such KTC Shareholder understands that the Exchange Shares are not registered under the Securities Act and that the issuance hereof to such KTC Shareholder is intended to be exempt from registration under the Securities Act pursuant to Regulation D promulgated thereunder (“ Regulation D ”).  Such KTC Shareholder is an “accredited investor,” as such term is defined in Rule 501 of Regulation D or, if not an accredited investor, otherwise meets the suitability requirements of Regulation D and Section 4(2) of the Securities Act (“ Section 4(2) ”).   Such KTC Shareholder agrees to provide documentation to GoEnergy prior to the Closing as may be requested by GoEnergy to confirm compliance with Regulation D and/or Section 4(2), including, without limitation, a letter of investment intent or similar representation letter and a completed investor questionnaire.   Each certificate representing the Exchange Shares issued to such KTC Shareholder shall be endorsed with the following legends, in addition to any other legend required to be placed thereon by applicable Securities Laws (as defined herein):


“THIS SECURITY HAS BEEN ACQUIRED FOR INVESTMENT AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS.”


“TRANSFER OF THESE SECURITIES IS PROHIBITED UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT WITH RESPECT TO SUCH SECURITY SHALL THEN BE IN EFFECT AND SUCH TRANSFER HAS BEEN QUALIFIED UNDER ALL APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS, OR AN EXEMPTION THEREFROM SHALL BE AVAILABLE UNDER THE ACT AND SUCH LAWS.”;


(d)

Such KTC Shareholder acknowledges that neither the Securities and Exchange Commission (the “ SEC ”), nor the securities regulatory body of any state or other jurisdiction, has received, considered or passed upon the accuracy or adequacy of the information and representations made in this Agreement;


(e)

Such KTC Shareholder acknowledges that it has carefully reviewed such information as it has deemed necessary to evaluate an investment in GoEnergy and its securities and that all information required to be disclosed to it under Regulation D has been furnished to it by GoEnergy.  To the full satisfaction of such KTC Shareholder, it has been furnished all materials that it has requested relating to GoEnergy and the issuance of the Exchange Shares hereunder, and has been afforded the opportunity to ask questions of GoEnergy’s representatives to obtain any information necessary to verify the accuracy



5







of any representations or information made or given to such KTC Shareholder.  Notwithstanding the foregoing, nothing herein shall derogate from or otherwise modify the representations and warranties of GoEnergy set forth in this Agreement, on which such KTC Shareholder has relied in making an exchange of its KTC Corp. Shares for the Exchange Shares; and


(f)

Such KTC Shareholder understands that the Exchange Shares may not be sold, transferred, or otherwise disposed of without registration under the Securities Act or an exemption therefrom, and that in the absence of an effective registration statement covering the Exchange Shares or any available exemption from registration under the Securities Act, the Exchange Shares may have to be held indefinitely.  Such KTC Shareholder further acknowledges that the Exchange Shares may not be sold pursuant to Rule 144 promulgated under the Securities Act unless all of the conditions of Rule 144 are satisfied, including, without limitation, GoEnergy’s compliance with the reporting requirements under the Exchange Act.


Section 3.05

Additional Legend; Consent .  Additionally, the Exchange Shares will bear any legend required by the “blue sky” laws of any state to the extent such laws are applicable to the securities represented by the certificate so legended. Such KTC Shareholder consents to GoEnergy making a notation on its records or giving instructions to any transfer agent of the Exchange Shares in order to implement the restrictions on transfer of the Exchange Shares.


ARTICLE IV

REPRESENTATIONS, COVENANTS AND WARRANTIES OF GOENERGY AND MAJORITY STOCKHOLDER OF GOENERGY


Except as set forth in the disclosure schedules to this Article IV that are attached hereto (the “ GoEnergy Schedules ”), which exceptions shall be deemed to be part of the representations and warranties made hereunder, each of GoEnergy and the GoEnergy Majority Shareholder, jointly and severally, represent and warrant to each KTC Party that, as of the date hereof and the Closing Date (with the same force and effect as if such representations and warranties were made at and as of the Closing Date), except for changes therein permitted by this Agreement and those representations and warranties that speak of a different date,:


Section 4.01

Organization; Authority .


(a)

GoEnergy is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted and as currently proposed to be conducted.  GoEnergy is duly qualified or authorized to do business and is in good standing under the laws of each jurisdiction in which it owns or leases real property and each other jurisdiction in which the conduct of its business or the ownership of its properties requires such qualification or authorization.  GoEnergy has delivered to KTC Corp. true, complete and correct copies of its certificate of incorporation and bylaws, and any amendments thereto or restatements thereof, as in effect on the date hereof;


(b)

The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any provision of the certificate of incorporation or



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bylaws of GoEnergy.  GoEnergy has full power and authority to enter into this Agreement and consummate the transactions contemplated hereby; and


(c)

This Agreement constitutes the valid and binding obligation of GoEnergy, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, or principles of equity.


Section 4.02

Capitalization .


(a)

GoEnergy’s authorized capital stock consists solely of 80,000,000 GoEnergy Common Shares, and 20,000,000 shares of blank check preferred stock, par value $0.0001 per share (“ Preferred Stock ”).  An aggregate of 4,319,893 GoEnergy Common Shares are issued and outstanding and no shares of Preferred Stock are issued and outstanding.  Except for the GoEnergy Common Shares and Preferred Stock described in the foregoing provisions of this Section 4.02(a) , there are no shares of capital stock or other equity securities of GoEnergy authorized, issued or outstanding.  No GoEnergy Common Shares or shares of Preferred Stock are held in GoEnergy’s treasury or reserved for issuance.  GoEnergy does not own, directly or indirectly, any outstanding voting securities of or other interests in any other corporation, partnership, joint venture or other business entity;


(b)

All of the outstanding shares of capital stock are duly authorized, validly issued, fully paid and non-assessable and were not issued in violation of any (i) preemptive or other rights of any Person to acquire securities of GoEnergy or (ii) applicable federal or state securities laws, and the rules and regulations promulgated thereunder (the “ Securities Laws ”).  Each KTC Shareholder shall receive good and valid title to its respective Exchange Shares, free and clear of all liens, encumbrances, pledges, security interests, claims, charges, options, rights of first refusal, proxies, voting trusts, or agreements, transfer restrictions under any equity holder or similar agreement or any other restriction or limitation whatsoever, including any contract granting any of the foregoing (collectively, “ Liens ”);


(c)

There are no outstanding subscriptions, options, convertible securities, rights (preemptive or otherwise), warrants, calls or agreements relating to any shares of capital stock or other securities of GoEnergy.  There are no agreements of any character to which GoEnergy is a party or by which it is bound obligating GoEnergy to issue, deliver or sell, or cause to be issued, delivered or sold, or repurchase, redeem or otherwise acquire, or cause the repurchase, redemption or acquisition of, any shares of capital stock or similar ownership interests of GoEnergy or obligating GoEnergy to grant, extend, accelerate the vesting of or enter into any such subscription, option, warrant, equity security, call, right, commitment or agreement.  There is no plan or arrangement to issue GoEnergy Common Shares or Preferred Stock except as set forth in this Agreement;


(d)

GoEnergy’s stock and minute books are correct and complete, no further entries have been made through the date of this Agreement, and such minute books contain an accurate record of all shareholder and corporate actions of the stockholders and directors (and any committees thereof).  All accounts, books, ledgers and official and other records of GoEnergy fairly and accurately reflect all of GoEnergy’s transactions, properties, assets and liabilities;


(e)

All outstanding equity securities of GoEnergy have been issued and granted in compliance with all Securities Laws and other applicable laws and regulations, and all requirements set forth in any contract, agreement or instrument to which GoEnergy is a party or under which its assets are bound; and



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(f)

There are no registration rights, rights plan, anti-takeover plan or other agreement or understanding to which GoEnergy is a party or by which it or its assets are bound, with respect to any equity security of any class of GoEnergy, and there are no agreements to which GoEnergy is a party, or which GoEnergy has knowledge of after due diligence, which conflict with this Agreement or the transactions contemplated herein or otherwise prohibit the consummation of the transactions contemplated hereunder.


Section 4.03

Subsidiaries and Predecessor Corporations .   GoEnergy does not have any predecessor entities or subsidiaries, and does not own, beneficially or of record, any shares of any other Person.  For purposes of this Agreement, “ Person ” means any individual, partnership, corporation, association, joint stock company, trust, joint venture, unincorporated organization or governmental entity (or any department, agency or political subdivision thereof) or other entity.


Section 4.04

Financial Statements; Taxes .


(a)

Included in the GoEnergy Schedules are the audited balance sheets of GoEnergy as of July 31, 2010 and 2009, and the related audited statements of operations, stockholders’ equity and cash flows for the fiscal years ended July 31, 2010 and 2009, together with the notes to such statements;


(b)

All such financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“ U.S. GAAP ”) consistently applied on the date and throughout the periods involved. The GoEnergy balance sheets, statements of operations, stockholders’ equity and cash flows are true and accurate and present fairly as of their respective dates the financial condition of GoEnergy;


(c)

GoEnergy has no liabilities or obligations, direct or indirect, matured or unmatured, contingent or otherwise, of any nature whatsoever, and has not (i) borrowed or agreed to borrow any funds, or incurred or become subject to, any material obligation or liability; (ii) paid or agreed to pay any material obligations or liabilities (direct or indirect, matured or unmatured, contingent or otherwise), such as a guaranty of any obligation; or (iii) sold or transferred, or agreed to sell or transfer, any of its assets, properties or rights, or canceled, or agreed to cancel, any debts or claims;


(d)

GoEnergy has timely filed all state, federal and local income and franchise tax returns required to be filed by it from its inception to the date hereof.  GoEnergy has no liabilities with respect to the payment of any federal, state, foreign, county, local or other taxes (including any deficiencies, interest or penalties); and


(e)

The books and records, financial and otherwise, of GoEnergy are complete and correct and have been maintained in accordance with U.S. GAAP consistently applied throughout the periods involved.


Section 4.05

Absence of Certain Changes or Events .  Since the date of the most recent GoEnergy balance sheet that was delivered by GoEnergy to KTC Corp.:


(a)

there has not been any adverse change in the business, operations, properties, assets or condition of GoEnergy;



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(b)

GoEnergy has not (i) amended its certificate of incorporation or bylaws except as required by this Agreement; (ii) declared or made, or agreed to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to its stockholders, or purchased or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii) waived any rights of value which are outside of the ordinary course of business; (iv) made any change in its method of accounting; (v) entered into any transactions or agreements other than in the ordinary course of business; or (vi) made any accrual or arrangement for, or payment of bonuses or special compensation of, any kind, or any severance or  termination pay to any present or former officer or employee; and


(c)

GoEnergy has not become subject to any law or regulation, which adversely affects, or in the future may adversely affect, the business, operations, properties, assets or condition of GoEnergy.


Section 4.06

Litigation and Proceedings .  There are no actions, suits, proceedings or investigations pending or, to the knowledge after diligent investigation by GoEnergy and the GoEnergy Majority Shareholder, threatened by or against GoEnergy or affecting GoEnergy or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind.  


Section 4.07

No Conflicts; Compliance With Laws and Regulations .


(a)

GoEnergy has complied with all applicable statutes and regulations of any federal, state or other applicable governmental entity or agency thereof.  GoEnergy is not a party to or bound by, and the properties of GoEnergy are not subject to, any judgment, order, writ, injunction, decree or award;


(b)

The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, constitute a default under, or terminate, accelerate or modify, the terms of any indenture, mortgage, deed of trust or other material agreement or instrument to which GoEnergy is a party or to which it or any of its assets, properties or operations are subject; and


(c)

The execution, delivery and performance of this Agreement by GoEnergy will not: (i) require the consent of any third party or governmental entity under any laws; (ii) violate any laws applicable to GoEnergy or its capital stock; or (iii) violate or breach any contractual obligation to which GoEnergy is a party or its capital stock bound.


Section 4.08

Material Transactions or Affiliations .  There exists no contract, agreement or arrangement between GoEnergy and any predecessor or any Person who was at the time of such contract, agreement or arrangement an officer, director or Person owning of record or beneficially 5% or more of the issued and outstanding GoEnergy Common Shares.  Neither any officer, director nor 5% stockholder has, or has had since inception of GoEnergy, any known interest, direct or indirect, contingent or otherwise, in any such transaction with GoEnergy.  GoEnergy has no commitment, whether written or oral, to lend any funds to, borrow any money from, or enter into any other transaction with, any such affiliated Person.



9








Section 4.09

SEC Reports .

(a)

Each filing made by GoEnergy (the “ GoEnergy SEC Reports ”) with the SEC (i) was prepared in accordance and complied with the requirements of the Securities Act or the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), as the case may be, and the rules and regulations of the SEC applicable thereunder to such GoEnergy SEC Reports, and (ii) did not, at the time they were filed (and if amended or superseded by a filing prior to the date of this Agreement then on the date of such filing and as so amended or superseded), contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading;

 

(b)

Each set of financial statements (including, in each case, any related notes thereto) contained in the GoEnergy SEC Reports comply with the published rules and regulations of the SEC with respect thereto, and each fairly presents in all material respects the financial position of GoEnergy at the respective dates thereof and the results of its operations and cash flows for the periods indicated; and

 

(c)

GoEnergy is in compliance with, and current in, all of the reporting, filing and other requirements under the Exchange Act, its shares of common stock have been registered under Section 12(g) of the Exchange Act, and GoEnergy is in compliance with all of the requirements under, and imposed by, Section 12(g) of the Exchange Act.


ARTICLE V


PRE-CLOSING COVENANTS


On or before the Closing Date, the Parties shall have complied with and/or provided the following:


Section 5.01

Access to Properties and Records .  Each of GoEnergy and KTC Corp. shall have afforded to the officers, directors, shareholders that are signatories hereto and authorized representatives of the other full access to their respective properties, books and records in order that each may have a full opportunity to make such reasonable investigation as it shall desire to make of the affairs of the other, and each will furnish the other with such additional financial and operating data and other information as to the business and properties of GoEnergy or KTC Corp., as the case may be, as the other shall from time to time reasonably request and without undue expense.   

Section 5.02

Third Party Consents and Certificates .  Each of GoEnergy, the GoEnergy Majority Shareholder, KTC Corp., and the KTC Corp. Shareholders agrees to cooperate with each other in order to obtain any required third party consents to this Agreement and the transactions herein contemplated.

Section 5.03

Designation of Directors and Officers .  The GoEnergy Majority Shareholder shall resign as Director of GoEnergy and all of his officer positions with GoEnergy on the Closing Date, and such resignation shall become effective upon the tenth (10 th ) day following the mailing of the Information Statement by GoEnergy to its stockholders.  On the Closing Date, Gareb Shamus shall be appointed to the GoEnergy Board and as President and CEO of GoEnergy.



10







Section 5.04

Securities Law Compliance .  Each of GoEnergy and KTC Corp. understands and agrees that the consummation of this Agreement, including the issuance of the Exchange Shares to the KTC Shareholders in exchange for the their respective KTC Corp. Shares as contemplated hereby, constitutes the offer and sale of securities under the Securities Act and applicable state statutes.  Each of GoEnergy and KTC Corp. agrees that such transactions shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such statutes, which depend, among other items, on the circumstances under which such securities are acquired.  Furthermore:

(a)

In connection with the transactions contemplated by this Agreement, GoEnergy and KTC Corp. shall each file , with the assistance of the other and their respective legal counsel, such notices, applications, reports or other instruments as may be deemed by them to be necessary or appropriate in an effort to document reliance on such exemptions, and the appropriate regulatory authority in the state where the KTC Shareholders reside, unless an exemption requiring no filing is available in such jurisdiction, all to the extent and in the manner as may be deemed by the Parties to be appropriate; and


(b)

In order to more fully document reliance on the exemptions as provided herein, each Party shall execute and deliver to the others, at or prior to the Closing, such further letters of representation, acknowledgment, suitability or the like as a Party  or its counsel may reasonably request in connection with reliance on exemptions from registration under the Securities Laws.


Section 5.05

Further Assurances .  Subject to the terms and conditions herein provided, each Party shall use its reasonable best efforts to perform or fulfill any and all conditions and obligations to be performed or fulfilled by it under this Agreement so that the transactions contemplated hereby shall be consummated as soon as practicable.  Each Party also agrees that it shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective this Agreement and the transactions contemplated herein.


ARTICLE VI

CONDITIONS PRECEDENT TO OBLIGATIONS OF GOENERGY


The obligations of GoEnergy under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:


Section 6.01

Accuracy of Representations and Performance of Covenants .  The representations and warranties made by KTC Corp. and the KTC Shareholders in this Agreement were true in all material respects when made and shall be true in all material respects on the Closing Date with the same force and effect as if such representations and warranties were made at and as of the Closing Date (except for changes therein permitted by this Agreement and those representations and warranties that speak of a different date).  KTC Corp. shall have performed or complied in all material respects with all covenants and conditions required by this Agreement to be performed or complied with by KTC Corp. prior to or at the Closing.  GoEnergy shall be furnished with a certificate, signed by a duly authorized executive officer of KTC Corp. and dated the Closing Date, to the foregoing effect;

Section 6.02

Officer’s Certificate .  GoEnergy shall have been furnished with a certificate dated the Closing Date and signed by a duly authorized officer of KTC Corp. to the effect that no litigation,



11







proceeding, investigation or inquiry is pending, or to the knowledge of KTC Corp. threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement or, to the extent not disclosed in the KTC Corp. Schedules, by or against KTC Corp., which might result in a material adverse change in any of the assets, properties, business or operations of KTC Corp.;


Section 6.03

No Governmental Prohibition .  No order, statute, rule, regulation, executive order, injunction, stay, decree, judgment or restraining order shall have been enacted, entered, promulgated or enforced by any court or governmental or regulatory authority or instrumentality which prohibits the consummation of the transactions contemplated hereby;


Section 6.04

Consents .  All material consents, approvals, waivers or amendments pursuant to all contracts, licenses, permits, trademarks and other intangibles in connection with the transactions contemplated herein, or for the continued operation of KTC Corp. after the Closing Date on the basis as presently operated, shall have been obtained; and


Section 6.05

Other Items .  GoEnergy shall have received such further opinions, documents, certificates or instruments relating to the transactions contemplated hereby as GoEnergy may reasonably request.


ARTICLE VII

CONDITIONS PRECEDENT TO OBLIGATIONS OF KTC CORP.
AND THE KTC SHAREHOLDERS


The obligations of KTC Corp. and the KTC Shareholders under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:


Section 7.01

Accuracy of Representations and Performance of Covenants . The representations and warranties made by GoEnergy and the GoEnergy Majority Shareholder in this Agreement were true when made and shall be true as of the Closing Date (except for changes therein permitted by this Agreement and those representations and warranties that speak of a different date) with the same force and effect as if such representations and warranties were made at and as of the Closing Date.  Additionally, each of GoEnergy and the GoEnergy Majority Shareholder shall have fully performed and complied with all covenants and conditions required by this Agreement to be performed or complied with by GoEnergy or the GoEnergy Majority Shareholder, respectively.  KTC Corp. shall be furnished with a certificate, signed by a duly authorized executive officer of GoEnergy and dated the Closing Date, to the foregoing effect;


Section 7.02

Closing Certificate .  KTC Corp. shall have been furnished with a certificate, dated the Closing Date and signed by duly authorized executive officers of GoEnergy, to the effect that no litigation, proceeding, investigation or inquiry is pending or threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement or, to the extent not disclosed in the GoEnergy Schedules, by or against GoEnergy, which might result in any material adverse change in any of the business, condition (financial or otherwise), assets, properties or result of operations of GoEnergy;




12







Section 7.03

Legal Opinion .  KTC Corp. shall have been furnished with an opinion dated as of the Closing Date from legal counsel to GoEnergy, covering such matters as it relates to this Agreement and the issuance of the Exchange Shares and other matters reasonably requested by KTC Corp.


Section 7.04

Good Standing .  KTC Corp. shall have received a certificate of good standing from the Secretary of State of the State of Delaware or other appropriate office, dated as of a date within ten (10) business days prior to the Closing Date, certifying that GoEnergy is in good standing as a corporation in the State of Delaware, including, without limitation, that GoEnergy has filed all tax returns required to have been filed by it to date and has paid all taxes reported as due thereon.


Section 7.05

No Governmental Prohibition .  No order, statute, rule, regulation, executive order, injunction, stay, decree, judgment or restraining order shall have been enacted, entered, promulgated or enforced by any court or governmental or regulatory authority or instrumentality which prohibits the consummation of the transactions contemplated hereby.


Section 7.06

Consents .  All consents, approvals, waivers or amendments pursuant to all contracts, licenses, permits, trademarks and other intangibles in connection with the transactions contemplated herein, or for the continued operation of GoEnergy after the Closing Date on the basis as presently operated, shall have been obtained.


Section 7.07

No Debt .  GoEnergy shall not have any Debt as of the Closing Date.  For purposes of this Agreement, “ Debt ” means any of the following: (a) all obligations of GoEnergy for borrowed money or evidenced by bonds, bankers’ acceptances, debentures, notes or other similar instruments; (b) all obligations of GoEnergy (whether contingent or otherwise) in respect of letters of credit, surety or other bonds and similar instruments; (c) all accounts payable and all accrued expenses, liabilities or other obligations of GoEnergy; (d) all obligations under capital leases; (e) all Debt (as defined in the other clauses of this definition) of others secured by a Lien on any property of GoEnergy, whether or not such Debt is assumed by GoEnergy; (f) all Debt (as defined in the other clauses of this definition) of others guaranteed by GoEnergy or in which GoEnergy otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss; (g) all obligations or undertakings of GoEnergy to maintain or cause to be maintained the financial position or covenants of others or to purchase the Debt or property of others; (h) obligations to deliver commodities, goods or services in consideration of one or more advance payments; (i) obligations to pay for goods or services whether or not such goods or services are actually received or utilized by GoEnergy; and (j) any Debt of a partnership for which GoEnergy is liable either by agreement, by operation of law or by a governmental requirement but only to the extent of such liability. The Debt shall include all obligations of GoEnergy of the character described above to the extent GoEnergy remains legally liable in respect thereof notwithstanding that any such obligation is not included as a liability of GoEnergy under GAAP.  Without limiting the foregoing, GoEnergy’s Debt shall includ e ing the items listed in Schedule 7.07 hereto.


7.08

Promissory Note .  Simultaneous with the execution hereof, (i) KTC Corp. shall have received from GoEnergy proceeds in the amount of Two Hundred Thousand Dollars ($200,000) in immediately available funds pursuant to that certain promissory note issued by KTC Corp. to GoEnergy in the principal amount of $200,000 in the form attached hereto as Exhibit A (the “ KTC Note ”) and (ii) GoEnergy shall have issued to certain Persons (A) promissory notes in an aggregate principal amount of $200,000 in the form attached hereto as Exhibit B-1 (collectively, the “ Bridge Notes”) and (B) warrants in



13







the form attached hereto as Exhibit B-2 (collectively, the “ Warrants ”) to   the holders of such Bridge Notes, such warrants granting such noteholder the right to purchase that number of GoEnergy Common Shares that shall equal in the aggregate 100% of the number of GoEnergy Common Shares that would be issuable upon full conversion of such holder’s Bridge Note, and the Parties shall have duly executed and delivered the appropriate documents in connection with the foregoing.


Section 7.09

Follow-on Financing .  On the Closing Date, GoEnergy shall have consummated a private placement, pursuant to which GoEnergy shall issue its securities to “accredited investors,” as such term is defined in Rule 501 of Regulation D, in exchange for an aggregate of at least $800,000 or such other amount as mutually agreed by the Parties in writing.


ARTICLE VIII

MISCELLANEOUS


Section 8.01

Post-Closing Covenants .  


(a)

Assistance with Post-Closing SEC Reports and Inquiries . Upon the reasonable request of KTC Corp. after the Closing Date, the GoEnergy Majority Shareholder shall use its best efforts to provide such information available to GoEnergy Majority Shareholder, including, without limitation, information, filings, reports, financial statements or other circumstances of GoEnergy occurring, reported or filed prior to the Closing, as may be necessary or required by GoEnergy for the preparation of the reports that GoEnergy is required to file after Closing with the SEC to remain in compliance and current with its reporting requirements under the Exchange Act, or filings required to address and resolve matters as may relate to the period prior to Closing, and any SEC comments relating thereto or any SEC inquiry thereof.


(b)

Indemnification .


(i)

KTC Corp. shall indemnify and hold harmless GoEnergy and its officers, directors and agents, and the GoEnergy Majority Shareholder, from and against any and all losses, damages, fees, costs, expenses, obligations and liabilities (collectively, the “ Liabilities ”) or actions, investigations, inquiries, arbitrations, claims or other governmental or administrative agency proceedings in respect thereof, including enforcement of this Agreement (collectively, the “ Actions ” and together with the Liabilities, the “ Losses ”), arising out of or based on (A) any material inaccuracy appearing in, or misrepresentations made under, Articles II and III of this Agreement or (B) a material breach of a any covenant or agreement in this Agreement or any related agreement.


(ii)

The GoEnergy Majority Shareholder hereby agrees to indemnify KTC Corp., KTC Majority Shareholder and the KTC Signatories, and their respective officers, directors and agents, , from and against any and all Loss to which it or they may become subject arising out of or based on (A) any material inaccuracy appearing in, or misrepresentations made under, Article IV of this Agreement or (B) a material breach of a any covenant or agreement in this Agreement or any related agreement.  


(iii)

Without limiting the foregoing, Losses include, but are not limited to, all reasonable legal fees, court costs and other expenses incurred in connection with investigating, preparing, defending, paying, settling or compromising any suit in law or equity arising out of this Agreement.



14







(iv)

The indemnification provided for in this paragraph (b) shall survive the Closing and consummation of the transactions contemplated hereby, and termination of this Agreement.


Section 8.02

Brokers .  Each Party. agrees that there were no finders or brokers involved in bringing the Parties together or who were instrumental in the negotiation, execution or consummation of this Agreement.  Each Party agrees to indemnify the others against any claim by any third Person other than as set forth in a Schedule hereto for any commission, brokerage or finder’s fee arising from the transactions contemplated hereby based on any alleged agreement or understanding between the indemnifying party and such third Person, whether express or implied, from the actions of the indemnifying party.


Section 8.03

Governing Law .  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each Party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the city of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each Party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such Party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

Section 8.04

Notices .  All notices or other communications required or permitted by this Agreement shall be in writing and addressed as follows


If to KTC Corp., to:

1010 Avenue of the Americas

Suite 302, New York, NY  10018

Attention:  Gareb Shamus, President and CEO

Fax: (212) 765-5779


If to the KTC:

1010 Avenue of the Americas

Majority Shareholder, to

Suite 302, New York, NY  10018
Attention:  Gareb Shamus, Sole Manager
Fax: (212) 765-5779


If to any KTC Signatory, to:

The address set forth opposite their names in the signature pages hereto


In each case, with copies (which

Joseph M. Lucosky, Esq.

shall not constitute notice) to:

Anslow & Jaclin, LLP

195 Route 9 South, Suite 204



15







Manalapan, NJ 07726

Fax: (732) 577-1188


If to GoEnergy, to:

#2129-4951 Netarts Highway West

Tillamook, OR 97141-9467

Attention:  Terry Fields

Fax:


If to the Majority:

Stockholder, to

Strato Malamas

c/o GoEnergy, Inc.

#2129-4951 Netarts Highway West

Tillamook, OR 97141-9467

Fax:


or such other addresses as shall be furnished in writing by any Party in the manner for giving notices hereunder.


Notice shall be deemed to have been duly received:


(a)

if given by fax or email, when transmitted and the appropriate confirmation received, as applicable, if transmitted on a business day and during normal business hours of the recipient, and otherwise on the next business day following transmission;


(b)

if given by certified or registered mail, return receipt requested, postage prepaid, three business days after being deposited in the U.S. mail; and


(c)

if given by courier, messenger or other means, when received or personally delivered and, in any such case, addressed as indicated herein, or to such other addresses as may be specified by any Party to the other Parties pursuant to notice given by such Party in accordance with the provisions of this Section 8.04.


Section 8.05

Attorney’s Fees .  In the event that any Party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs, including, without limitation, reasonable attorney’s fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.


Section 8.06

Confidentiality .  Each Party agrees with the others that, unless and until the transactions contemplated by this Agreement have been consummated, such Party and such Party’s officers, directors, employees, advisors, agents or representatives (collectively, the “ Representatives ”) shall hold in strict confidence all data and information obtained with respect to another Party or any subsidiary thereof (whether written or oral and regardless of whether such information is marked ‘Confidential’) from any Representative or from any books or records or from personal inspection, of such other Party, and shall not use such data or information or disclose the same to others, except to the extent such data or information is (i) public at no fault of the receiving Party; (ii) required by law to disclose; or (iii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement.  In the event of the termination of this



16







Agreement, each Party shall return to the other all documents and other materials obtained by it or on its behalf and shall destroy all electronic and paper copies, summaries, work papers, abstracts or other materials relating thereto, and each Party will continue to comply with the confidentiality provisions set forth herein.


Section 8.07

Public Announcements and Filings .  Unless required by applicable law or regulatory authority, none of the Parties will issue any report, statement or press release to the general public, to the trade, to the general trade or trade press, or to any third party (other than its advisors and representatives in connection with the transactions contemplated hereby) or file any document, relating to this Agreement, the existence of this Agreement and the transactions contemplated hereby, except as may be mutually agreed by the Parties.  Copies of any such filings, public announcements or disclosures, including, without limitation, any announcements or disclosures mandated by law or regulatory authorities, shall be delivered to each Party at least one (1) business day prior to the release thereof.


Section 8.08

Third Party Beneficiaries .  This contract is strictly between GoEnergy, the GoEnergy Majority Shareholder, KTC Corp., and each of the KTC Shareholders and, except as specifically provided, no other Person shall be deemed to be a third party beneficiary of this Agreement.


Section 8.09

Expenses .  Subject to Articles VII and VIII herein, whether or not the Exchange is consummated, each of GoEnergy and KTC Corp. shall bear their own respective expenses, including legal, accounting and professional fees, incurred in connection with this Agreement and any other agreements in connection therewith, the Exchange or any of the other transactions contemplated hereby.


Section 8.10

Entire Agreement .  This Agreement and the related documents referenced herein represent the entire agreement between the Parties relating to the subject matter hereof, and supersedes all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter.


Section 8.11

Survival; Termination .  The representations, warranties and covenants of the respective Parties shall survive the Closing Date and the consummation of the transactions herein contemplated for a period of one year.


Section 8.12

Counterparts . This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which taken together shall be but a single instrument.  Signatures delivered by facsimile shall be deemed original signatures.


Section 8.13

Amendment or Waiver .  Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law or in equity, and may be enforced concurrently therewith, and no waiver by any Party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore or thereafter occurring or existing.  At any time prior to the Closing Date, this Agreement may by amended by a writing signed by all Parties, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance may only be extended by a writing signed by the Party or Parties for whose benefit the provision is intended.


Section 8.14

Separate Legal Counsel .  Each Party hereby acknowledges, agrees and represents and warrants to the other Parties that it has been represented by its own separate legal counsel in



17







connection with the preparation, negotiation and execution of this Agreement, and the consummation of the transactions contemplated hereby, and no such Party has relied on any other Party’s legal counsel or such other Party’s counsel’s advise in connection herewith.


[-Signature Pages Follow-]



18







IN WITNESS WHEREOF , the Parties have caused this Agreement to be executed as of the date first written above, and the corporate Parties have caused this Agreement to be executed by their respective officers, hereunto duly authorized.



THE COMPANY


GOENERGY, INC.



By:

/s/ Terr Fields

Name:  Terry Fields


Title: CEO



MAJORITY STOCKHOLDER



/s/ Strato Malamas ________________________

Strato Malamas



KTC CORP.


KICK THE CAN CORP.



By:

/s/ Gareb Shamus

By:  Gareb Shamus, its


Title:  President and CEO



KTC MAJORITY SHAREHOLDER


KICKING THE CAN, L.L.C.



By: _/s/ Gareb Shamus ___________________
Name:  Gareb Shamus

Title:  Sole Operating Manager





[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



BRISTOL CAPITAL ADVISORS PROFIT SHARING PLAN



By:

/s/ Paul Kessler _______________

Paul Kessler

Authorized Signatory



Address:

c/o Amy Wang, Esq.

6353 W. Sunset Blvd., Suite 4006

Hollywood, CA 90028


Fax No.:  (323) 960 - 3805







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



BRISTOL CAPITAL, LLC



By:

________________________

Paul Kessler

Manager



Address:

6353 W. Sunset Blvd., Suite 4006

Hollywood, CA 90028

Attn:  Amy Wang, Esq.


Fax No.:  (323) 960 - 3805







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



BRISTOL INVESTMENT FUND, LTD.



By:

________________________

Paul Kessler

Director



Address:

c/o Bristol Capital Advisors, LLC

6353 W. Sunset Blvd., Suite 4006

Hollywood, CA 90028

Attn:  Amy Wang, Esq.


Fax No.:  (323) 960 - 3805







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



CANYONS TRUST



By:

________________________

Name:

Title:



Address:





Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY




________________________

Carolyn Latondresse



Address:

3480 Yukon Street

Vancouver, BC V5Y 3S2


Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



WEBWORKS MULTIMEDIA CORPORATION



By:

________________________

Name:

Title:



Address:

3248 First Avenue W.

Vancouver, BC V6K 1H5


Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY




________________________

Ronaye MaLette



Address:

1550 35 th Ave. W

Vancouver, BC V6M 1H2


Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY




________________________

Kyle McClay



Address:

652 Millbank

Vancouver, BC V5Z 4B7


Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



ANGEL INTERNATIONAL



By:

________________________

Name:

Title:



Address:

Box 5180

Lexington SPA CV 32 9HG

England, United Kingdom


Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY




________________________

Eric Weissblum



Address:



Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



THE DAVID ROSENBERG IRREVOCABLE TRUST



By:

________________________

Name:

Title:  Trustee



Address:




Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY




________________________

Robert Knie



Address:



Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



DPIT, LLC



By:

________________________

Name:

Title:  



Address:




Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



FJD HOLDINGS LLC



By:

________________________

Name:

Title:  



Address:

205 Edenfield Place

Lakeland, FL 33801



Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



ALPHA



By:

________________________

Name:

Title:  



Address:




Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






KTC SIGNATORY



MOMONA CAPITAL



By:

________________________

Name:

Title:  



Address:




Fax No.:  







[Signature page to Share Purchase and Share Exchange Agreement]






SCHEDULE I


THE EXCHANGE SCHEDULE


 

Name of KTC Shareholder

No. of KTC Shares

No. of Exchange Shares

1.

Angel International

400,000

400,000

2.

Bristol Capital Advisors Profit Sharing Plan

350,000

350,000

3.

Bristol Capital, LLC

1,518,000

1,518,000

4.

Bristol Investment Fund, Ltd.

1,253,400

1,253,400

5.

Canyons Trust

454,883

454,883

6.

Carolyn Latondresse

776,276

776,276

7.

Ronaye MaLette

1,000,000

1,000,000

8.

Kyle McCay

400,000

400,000

9.

Webworks Multimedia Corporation

1,000,000

1,000,000

10.

Alpha

250,000

250,000

11.

DPIT, LLC

250,000

250,000

12.

FJD Funding

150,000

150,000

13.

Robert Knie

2,450,000

2,450,000

14.

Momona Capital

100,000

100,000

15.

The David Rosenberg Irrevocable Trust

2,000,000

2,000,000

16.

Eric Weisblum

1,952,548

1,952,548

17.

Kick the Can Corp.

19,125,000

19,125,000

 

 

 

 

 

GRAND TOTAL

33,430,107

33,430,107










KTC SHAREHOLDER DISCLOSURE SCHEDULES











GOENERGY DISCLOSURE SCHEDULES


SCHEDULE 7.07



Issue Date

Principal Amt

 

Present Holder

Conversion Price

 

 

 

 

 

05/01/02

$20,000.00

 

Bristol Investment Fund, Ltd.

$0.01

04/07/05

$5,000.00

 

Bristol Capital, LLC

$0.01

07/20/06

$15,000.00

 

Bristol Capital, LLC

$0.01

08/13/07

$5,000.00

 

Canyons Trust

$0.01

10/08/10

$25,000.00

 

Bristol Investment Fund, Ltd.

$0.01


No.

Date

Amount

Note Holders


(1)

April 26, 2007

$10,000US

Charles MaLette

(2)

February 19, 2008

$10,000US

Dream On Enterprises SA

(3)

June 25, 2008

$  5,000US

Carolyn Latondresse

(4)

August 7, 2008

$  5,000US

Ronaye MaLette

(5)

November 24, 2008

$  5,000US

Kathleen McClay

(6)

May 8, 2009

$  5,000US

Kyle McClay

(7)

July 11, 2009

$  5,000US

Kelsey Fields


New Notes :


(8)

January 15, 2010

$10,000US

Webworks Multimedia

(9)

February 25, 2010

$  5,000US

Webworks Multimedia

(10)

April 30, 2010

$  5,000US

Ronaye MaLette

(11)

September 1, 2010

$  5,000US

Webworks Multimedia













EXHIBIT A


KTC NOTE










EXHIBIT B-1


BRIDGE NOTES









EXHIBIT B-2


WARRANTS









NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.


COMMON STOCK PURCHASE WARRANT


GoENERGY, INC.

Warrant Shares: __________

Date: November 5, 2010


THIS COMMON STOCK PURCHASE WARRANT (the “ Warrant ”) certifies that, for value received, _________________________________ (the “ Holder ”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after a Qualified Offering (as defined below) (the “ Initial Exercise Date ”) and on or prior to the close of business on the one (1) year anniversary of the issuance date hereunder (the “ Termination Date ”), but not thereafter, to subscribe for and purchase from GoENERGY, INC. (the “ Company ”) up to that number of shares (the “ Warrant Shares ”) of common stock, par value $.0001 per share (the “ Common Stock ”), of the Company as shall equal one hundred percent (100%) of the number of shares of Common Stock issuable upon conversion of the principal amount and accrued but unpaid interest of the Note (as defined below) held by the Holder.  The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b) hereof.

Section 1 .

Definitions .  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Convertible Demand Promissory Note, dated of even date herewith (the “ Note ”), issued by the Company to the Holder in the form attached hereto as Exhibit A .

Section 2 .

Exercise .





a)

Exercise of Warrant .  Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company)of a duly executed facsimile copy of the Notice of Exercise Form (the “ Notice of Exercise ”) annexed  hereto; and, within three (3) trading days of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer to an account designated in writing by the Holder or delivery of a cashier’s check drawn on a United States bank to the principal offices of the Company.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) trading days of the date the final Notice of Exercise is delivered to the Company.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to any Notice of Exercise  within one (1) Business Day (as defined below) of receipt of such notice.  In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph (a), following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

b)

Exercise Price .  The exercise price per share of the Common Stock under this Warrant shall be $0.60, subject to adjustment as set forth hereunder (the “ Exercise Price ”).

c)

Cashless Exercise .  This Warrant may also be exercised at such time by means of a “cashless exercise,” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

(A) = the VWAP on the trading day immediately preceding the date of such election;


(B) =  the Exercise Price of this Warrant, as may be adjusted; and


(X) = the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.




2



Notwithstanding anything herein to the contrary, (i) on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c) and (ii) this Warrant may be exercised via a cashless exercise during the thirty (30) trading days immediately prior to the Termination Date if there is no effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder.


d)

Exercise Limitations  The Company shall not effect any exercise of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2(c) hereof or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Person acting as a group together with the Holder or any of the Holder’s Affiliates), as set forth on the applicable Notice of Exercise, would beneficially own in excess of the Beneficial Ownership Limitation (as defined herein).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other debentures or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the immediately preceding sentence, and for purposes of this Section 2(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.  To the extent that the limitation contained in this Section 2(d) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent periodic or annual report, as the case may be, filed with the Commission, (y) a more recent public announcement by the Company or (z) a more recent notice by the Company or the Company’s transfer agent setting forth the number



3



of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall, within two (2) trading days, confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  

The “ Beneficial Ownership Limitation ” shall be 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.  The Beneficial Ownership Limitation provisions of this Section 2(d) may be waived by the Holder, at the election of the Holder, upon not less than 61 days’ prior notice to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

e)

Mechanics of Exercise .

i.

Authorization of Warrant Shares .  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).  

ii.

Delivery of Certificates Upon Exercise .  Certificates for shares of Common Stock purchased hereunder shall be transmitted by the transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“ DWAC ”) system if the Company is a participant in such system, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise, within three (3) trading days from the delivery to the Company of the Notice of Exercise, surrender of this Warrant (if required) and payment of the aggregate Exercise Price as set forth above (“ Warrant Share Delivery Date ”).  This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the Company.  The Warrant Shares shall be deemed to have been issued, and the Holder or any other Person so designated to be named therein, shall be deemed to have become a holder of record of such shares of Common Stock for all purposes, as of the date the Warrant has been exercised by payment to the Company of the



4



Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(e)(vii) hereof prior to the issuance of such shares of Common Stock, have been paid.  

iii.

Delivery of New Warrants Upon Exercise .  If this Warrant shall have been exercised in part, the Company shall, at the request of the Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

iv.

Rescission Rights .  If the Company fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing the Warrant Shares pursuant to this Section 2(e)(iv) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

v.

Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise .  In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “ Buy-In” ), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue and (B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.  For purposes of illustration only, and without limiting the foregoing, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,



5



evidence of the amount of such loss.  Nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant, as required pursuant to the terms hereof.

vi.

No Fractional Shares or Scrip .  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share of Common Stock to which Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share of Common Stock

vii.

Charges, Taxes and Expenses .  Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided , however , that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto (“ Assignment Form ”) duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

viii.

Closing of Books .  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

Section 3 .

Certain Adjustments .

a)

Stock Dividends and Splits . If the Company, at any time while this Warrant is outstanding: (A) pays a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (“ Common Stock Equivalents ”) (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (B) subdivides outstanding shares of Common Stock into a larger number of shares, (C) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction, of which (x) the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event, and (y) the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and



6



the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted.  Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification and approved by the Holder, whose approval shall not be unreasonably withheld or delayed.

b)

Subsequent Equity Sales . If the Company or any subsidiary thereof, as applicable, at any time while this Warrant is outstanding, shall sell or grant any option to purchase or sell or grant any right to reprice its securities, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock, at an effective price per share less than the then Exercise Price (such lower price, the “ Base Share Price ” and such issuances collectively, a “ Dilutive  Issuance ”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share which is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of the Dilutive Issuance), then the Exercise Price shall be reduced and only reduced to equal the Base Share Price and the number of Warrant Shares issuable hereunder shall be increased such that the aggregate Exercise Price payable hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment.  Such adjustment shall be made whenever Common Stock or Common Stock Equivalents are issued.  Notwithstanding the foregoing, no adjustments shall be made, paid or issued under this Section 3(b) in respect of an Exempt Issuance (as defined herein).  The Company shall notify the Holder in writing, no later than the trading day following the issuance of any Common Stock or Common Stock Equivalents subject to this paragraph, indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice the “ Dilutive Issuance Notice ”).  For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the occurrence of any Dilutive Issuance, after the date of such Dilutive Issuance the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise.  For purposes of this Warrant, “ Exempted Issuance ” means the issuance of shares of Common Stock, preferred stock or rights to acquire either of the foregoing by the Company at a purchase price per share equal or greater than the closing sale price on the trading day immediately preceding the date of such issuance; provided that the aggregate number of shares of Common Stock issued or issuable does not exceed 500,000 shares of Common Stock; and provided further that in the event that (i) convertible preferred stock or rights to acquire convertible preferred stock is issued, the number of convertible preferred stock issuable is that number of preferred stock that when converted would equate no more than 500,000 shares of Common Stock and (ii) preferred stock is not convertible, then the number of shares of preferred stock issuable in



7



order for such issuance to be deemed an Exempted Issuance shall be determined by the Board in good faith.  .

c)

Subsequent Rights Offerings .  If the Company, at any time while the Warrant is outstanding, shall issue rights, options or warrants to all holders of Common Stock (and not to the Holder) entitling them to subscribe for or purchase shares of Common Stock at a price per share less than the VWAP at the record date mentioned below, then the Exercise Price shall be multiplied by a fraction, of which (x) the denominator shall be the number of shares of the Common Stock outstanding on the date of issuance of such rights or warrants plus the number of additional shares of Common Stock offered for subscription or purchase, and (y) the numerator shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants plus the number of shares which the aggregate offering price of the total number of shares so offered (assuming receipt by the Company in full of all consideration payable upon exercise of such rights, options or warrants) would purchase at such VWAP.  Such adjustment shall be made whenever such rights or warrants are issued, and shall become effective immediately after the record date for the determination of stockholders entitled to receive such rights, options or warrants.

d)

Pro Rata Distributions .  If the Company, at any time prior to the Termination Date, shall distribute to all holders of Common Stock (and not to the Holder of this Warrant) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 3(b) hereof), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction, of which the (x) denominator shall be the VWAP determined as of the record date mentioned above, and (y) numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of Common Stock, as determined by the Board of Directors of the Company (the “ Board ”) in good faith.  In either case, the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock.  Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

e)

Fundamental Transaction . If, at any time while this Warrant is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “ Fundamental Transaction ”), then, upon any subsequent exercise of this Warrant, the



8



Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder, (i) upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “ Alternate Consideration ”) receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by the Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event or (ii) if the Company is acquired in an all-cash transaction, cash equal to the value of this Warrant as determined in accordance with the Black-Scholes option pricing formula.  For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s right to exercise such warrant into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 3(e) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

f)

Calculations . All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

g)

Voluntary Adjustment By Company . The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board.

h)

Notice to Holder .  

i.

Adjustment to Exercise Price . Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. If the Company issues a variable rate security, the Company shall be deemed to have issued Common Stock or Common



9



Stock Equivalents at the lowest possible conversion or exercise price at which such securities may be converted or exercised in the case of any transaction in which securities are issued at a variable price.

ii.

Notice to Allow Exercise by Holder . If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock; (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock; (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property; (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company; then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register (as defined herein) of the Company, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.  The Holder is entitled to exercise this Warrant during the foregoing twenty (20) day period commencing on the date of such notice to the effective date of the event triggering such notice.

Section 4 .

Transfer of Warrant .

a)

Transferability .  Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender



10



and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  A Warrant, if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.  

b)

New Warrants . This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a) hereof, as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice; provided the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto

c)

Warrant Register . The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “ Warrant Register ”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual written notice to the contrary.

d)

Transfer Restrictions . If , at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be registered pursuant to an effective Registration Statement under the Securities Act and under applicable state securities or blue sky laws, the Company may require, as a condition of allowing such transfer, (i) that the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer may be made without registration under the Securities Act and under applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated under the Securities Act or a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act.

Section 5 .

Miscellaneous .

a)

No Rights as Shareholder Until Exercise .  This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof as set forth in Section 2(e)(ii) hereof.  

b)

Loss, Theft, Destruction or Mutilation of Warrant . The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of



11



the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

c)

Saturdays, Sundays, Holidays, etc .  If the last or appointed calendar day for the taking of any action or the expiration of any right required or granted herein shall be a day other than a Saturday, Sunday, national holiday or New York State holiday (such day, a “ Business Day ”), then such action may be taken or such right may be exercised on the next succeeding Business Day.

d)

Authorized Shares .  

The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued shares of Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the trading market or quotation system, as the case may be, upon which the Common Stock may be listed or quoted, respectively.  

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant.



12



Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

e)

Jurisdiction . All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Note.

f)

Restrictions .  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws.

g)

Nonwaiver and Expenses .  No course of dealing or any delay or failure to exercise any right hereunder on the part of the Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies.  If the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses, including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

h)

Notices .  Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Note.

i)

Limitation of Liability .  No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

j)

Remedies .  Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

k)

Successors and Assigns .  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of, and be binding upon, the successors of the Company and the successors, permitted assigns, heirs, executors or representatives, as applicable, of the Holder.  The provisions of this



13



Warrant are intended to be for the benefit of all holders from time to time of this Warrant and shall be enforceable by the Holder or any such holder of Warrant Shares.

l)

Amendment .  This Warrant may be modified or amended, or the provisions hereof waived, with the written consent of the Company and the Holder.

m)

Severability .  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

n)

Headings .  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

********************




14






IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.


 

GoENERGY, INC.

By:__________________________________________

     Name:

     Title:









NOTICE OF EXERCISE


TO:

GoENERGY, INC.


(1)

The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the Exercise Price in full, together with all applicable transfer taxes, if any.

(2)

Payment shall take the form of (check applicable box):

[  ] lawful money of the United States; or

[ ] if permitted, the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 2(c) of the Warrant, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c) hereof.

(3)

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

_______________________________



The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:


_______________________________


_______________________________


_______________________________


(4)   Accredited Investor .  The undersigned is an “accredited investor,” as defined in Regulation D promulgated under the Securities Act.


[SIGNATURE OF HOLDER]


Name of Investing Entity:

 

Signature of Authorized Signatory of Investing Entity :

 

Name of Authorized Signatory:

 

Title of Authorized Signatory:

 

Date:

 











ASSIGNMENT FORM


(To assign the foregoing warrant, execute
this form and supply required information.
Do not use this form to exercise the warrant.)




FOR VALUE RECEIVED, [all of] or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to:


_______________________________________________ whose address is


_______________________________________________________________.


_______________________________________________________________



Dated:  ______________, _______



Holder’s Signature:

_____________________________


Holder’s Address:

_____________________________


_____________________________




Signature Guaranteed:  ___________________________________________



NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.







EXHIBIT A

CONVERTIBLE DEMAND PROMISSORY NOTE


See attached.






THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES ACT ”), OR ANY APPLICABLE STATE SECURITIES LAWS.  THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW FOR DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED UNLESS IT HAS BEEN SO REGISTERED OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

CONVERTIBLE DEMAND PROMISSORY NOTE



Principal Amount:  $

Issue Date:  November 5, 2010



FOR VALUE RECEIVED , the undersigned , GoEnergy, Inc. , a Delaware corporation (the “ Borrower ” or the “ Company ”), hereby promises to pay to the order of __________________ (together with its successors and assigns, and any such bearer, being hereinafter referred to collectively as the “ Holder ”), on demand (the date of such demand is hereinafter referred to the “ Maturity Date ”), the principal sum of ________________________ ($_________) (this “ Note ”), together with interest thereon at the rate set forth herein (the “ Loan ”), unless it is converted hereunder.  For purposes of this Note, “ Borrowe r ” shall mean all successors in interest and assignees, including, without limitation, pursuant to a merger, consolidation, reorganization, recapitalization or other similar restructuring event (collectively, a “ Reorganization ”), and all endorsers, sureties and guarantors and any other person liable or to become liable with respect to the Loan.  


1.

Interest Rate.

Interest on the unpaid principal balance of this Note shall accrue from the date hereof until the Note is fully repaid at a rate of 8% per annum.  The Borrower shall pay the Holder all accrued interest on the Maturity Date.  In the event of Debtor’s default hereunder, interest on amounts past due pursuant to this Note shall be paid at a rate of eighteen percent (18%) per annum.  Interest shall be computed on the basis of a 360-day year and compounded.

2.

Conversion.  

2.1

Voluntary Conversion .  Unless sooner converted pursuant to Section 2.2 hereof, commencing sixty (60) calendar days after the issue date of this Note, the Holder may convert any portion of this Note that is outstanding, whether such portion represents principal or interest, into shares of common stock of the Company (the “ Conversion Shares ”) at a price equal to $0.40 (the “ Conversion Price ”).  The Holder shall submit a notice of conversion in the form attached to as Exhibit A (the “ Notice of Conversion ”) to the Company indicating the amount of the Note being converted, the number of shares issuable upon such conversion, and where the Conversion Shares should be delivered.  The Company must deliver the Conversion Shares to the Holder no later than the third (3 rd ) business day after the date that Holder submits the Notice of Conversion to the Company (such third business day is hereinafter referred to as the “ Share Delivery Date ”).

2.2

Mandatory Conversion .  If the Company undertakes a Qualified Offering (as defined below) prior to the Maturity Date, the Company shall deliver to the Holder a notice (the “ Offering Notice ”) stating the price and other terms and conditions thereof not later than five (5) business days prior to the closing date of the Qualified Offering.  Upon the closing of the Qualified Offering, the principal amount and interest of this Note will automatically be converted into an amount of securities that are identical to the securities offered in the Qualified Offering (e.g., same class or series and having the same rights and privileges), equal to one hundred percent (100%) of the principal amount and interest.  For purposes of this Note, a “ Qualified Offering ” means a private placement offering by the Company of an aggregate amount of six hundred thousand dollars ($600,000) or more.   

3.

Holder’s Conversion Limitations .  (a)  The Company shall not effect any conversion of this Note, and the Holder shall not have the right to convert any portion of this Note, to the extent that after giving



effect to the conversion set forth on the applicable Notice of Conversion submitted by the Holder, the Holder (together with the Holder’s Affiliates (as defined below) and any Persons (as defined below) acting as a group together with the Holder or any of the Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of common stock beneficially owned by the Holder and its Affiliates shall include the number of shares of common stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of common stock which are issuable upon (i) conversion of the remaining, unconverted principal amount and interest of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other convertible securities or warrants) beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 3, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1933, as amended (the “ Exchange Act ”), and the rules and regulations promulgated thereunder.  To the extent that the limitation contained in this Section 3 applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount and/or interest of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation to other securities owned by the Holder together with any Affiliates) and which principal amount and interest of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this Section 3 and the Company shall have no obligation to verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 3, in determining the number of outstanding shares of common stock, the Holder may rely on the number of outstanding shares of common stock as stated in the most recent of the following: (i) the Company’s most recent periodic or annual report, as the case may be, filed with the Securities and Exchange Commission (the “ Commission ”), (ii) a more recent public announcement by the Company or (iii) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of common stock outstanding.  Upon the written or oral request of the Holder, the Company shall within two (2) trading days confirm orally and in writing to the Holder the number of shares of common stock then outstanding.  In any case, the number of outstanding shares of common stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding shares of common stock was reported.

(b)

For purposes of this Note, the “ Beneficial Ownership Limitation ” shall be 9.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock issuable upon conversion of this Note.  The Beneficial Ownership Limitation provisions of this Section 3 may be waived by the Holder, at the election of the Holder, upon not less than sixty one (61) calendar days’ prior written notice to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.

(c)

For purposes of this Note, “ Affiliate ” means, with respect to any Person, any other Person controlling, controlled by or under common control with such Person.  The term “ Control ” as used in the preceding sentence means, with respect to a corporation, the right to exercise, directly or indirectly, more than 50% of the voting rights attributable to the shares of the controlled corporation and, with respect to any Person other than a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether by contract or otherwise.  The term “ Person



2



means any individual, partnership, corporation, association, joint stock company, trust, joint venture, unincorporated organization or governmental entity (or any department, agency or political subdivision thereof) or other entity.

4.

Acknowledgement by the Holder .  The Holder hereby represents and warrants to the Borrower that the Holder has sufficient knowledge and experience of financial and business matters so that the Holder is able to evaluate the merits and risks of purchasing this Note and the Holder has had substantial experience in previous private and public purchases of securities.  The Holder is an “accredited investor” as that term is defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended (the “ Securities Act ”).

5.

Anti-dilution Adjustment .  If at any time this Note is outstanding, the Company issues common stock or securities convertible into or exercisable for common stock at a price per share that is lower than the Conversion Price (a “ Dilutive Issuance ”), or adjusts the price per share at which any of its outstanding securities can be converted into or exercised for common stock to a price that is lower than the Conversion Price (a “ Dilutive Adjustment ”), the Conversion Price shall automatically be adjusted to equal the lower price granted in such Dilutive Issuance or Dilutive Adjustment, as applicable (the “ Adjusted Conversion Price ”).  The Company must provide written notice to the Holder of a Dilutive Issuance or a Dilutive Adjustment, as applicable (the “ Adjustment Notice ”) within three (3) trading days of such occurrence, provided , however , that the Adjusted Conversion Price shall be deemed to be in effect automatically upon any Dilutive Issuance or Dilutive Adjustment regardless of whether the Company provides the Adjustment Notice. The Company must honor any conversions requested by the Holder at the Adjusted Conversion Price following any Dilutive Issuance or Dilutive Adjustment, as applicable.

6.

Piggyback Registration Rights .  If at any time this Note is outstanding, the Company files a registration statement (the “ Registration Statement ”) with the Commission, the Company must include the shares underlying this Note in such Registration Statement.  The Company shall notify the Holder in writing of its intent to file such Registration Statement at least thirty (30) calendar days prior to the filing of the Registration Statement and provide the Holder an opportunity to review and comment on such Registration Statement.

7.

Event of Default .  Any of the following shall constitute an “ Event of Default ” under this Note, and shall give rise to the remedies provided in Section 8 herein:

(a)

The failure by the Borrower to pay any amounts due under this Note, as contemplated in Section 1 hereof;

(b)

The failure by the Borrower to deliver the Conversion Shares by the Share Delivery Date, as contemplated in Section 2 hereof;

(c)

The failure by the Borrower to provide the Adjustment Notice or honor conversions at the Adjusted Conversion Price following a Dilutive Issuance or Dilutive Adjustment, as applicable, as contemplated in Section 5 hereof;

(d)

The failure by the Borrower to timely file and keep current periodic reports with the Commission;

(e)

If the Borrower:  (i) makes a general assignment for the benefit of creditors; (ii) is adjudicated a bankrupt or insolvent; (iii) files a voluntary petition in bankruptcy; (iv) takes advantage, as against its creditors, of any bankruptcy law or statute of the United States of America or any state or subdivision thereof now or hereafter in effect; (v) has a petition or proceeding filed against it under any provision of any bankruptcy or insolvency law or statute of the United States of America or any state or subdivision



3



thereof, which petition or proceeding is not dismissed within thirty (30) calendar days after the date of the commencement thereof; (vi) has a receiver, liquidator, trustee, custodian, conservator, sequestrator or other such person appointed by any court to take charge of its affairs or assets or business and such appointment is not vacated or discharged within thirty (30) calendar days thereafter; or (vii) takes any action in furtherance of any of the foregoing;

(f)

Any merger, liquidation, dissolution or winding up of the Borrower or its business or any sale of all or substantially all of the Borrower’s capital stock or assets; provided , however , the merger or sale of the Borrower with a successor entity that acknowledges and expressly assumes in writing the Borrower’s obligations hereunder shall not be considered an “Event of Default” for purposes hereof; or

(g)

The Borrower attempts to effectuate or effectuates a reverse stock split of its common stock without first obtaining the prior written consent of the Holder.

8.

Remedies on Default .  If any Event of Default shall occur and be continuing for a period of seven (7) calendar days, the Holder shall, in addition to any and all other available rights and remedies, have the right, at the Holder’s option unless such Event of Default shall have been cured or waived in writing by the Holder (which waiver shall not be deemed to be a waiver of a subsequent default), to:  (a) declare the entire unpaid principal balance of this Note, together with all interest accrued thereon and all other sums due by the Borrower hereunder (the “ Default Amount ”); and (b) pursue any and all available remedies for the collection of such principal and interest to enforce its rights as described herein; and in such case the Holder may also recover all costs of suit and other expenses in connection therewith, including reasonable attorney’s fees, for collection and the right to equitable relief (including, but not limited to, injunctions) to enforce the Holder’s rights as set forth herein.

9.

Certain Waivers .  Except as otherwise expressly provided in this Note, the Borrower hereby waives diligence, demand, presentment for payment, protest, dishonor, nonpayment and default with respect to the indebtedness evidenced hereby.  The Borrower hereby expressly agrees that this Note, or any payment hereunder, may be extended, modified or subordinated (by forbearance or otherwise) from time to time, without in any way affecting the liability of the Borrower.

10.

Waivers and Amendments; Cumulative Remedies .  Neither any provision of this Note nor any performance hereunder may be waived orally, but only by an agreement in writing and signed by the party against whom enforcement of any waiver or discharge is sought.  No right or remedy conferred upon the parties under this Note is intended to be exclusive of any other right or remedy contained herein or in any instrument or document delivered in connection herewith, and every such right or remedy shall be cumulative and shall be in addition to every other such right or remedy contained herein and/or now or hereafter existing at law or in equity or otherwise.

11.

Governing Law .  This Note shall be deemed to be a contract made under the laws of the State of New York and shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to the principles of conflicts of law thereof.  If either party hereto shall commence an action or proceeding to enforce any provision of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

12.

Consent to Jurisdiction and Service of Process .  The Borrower by execution, and the Holder by acceptance, hereby each consent to the jurisdiction of any federal district court or state court in the State of New York having competent jurisdiction.  The Borrower waives personal service of any summons, complaint or other process in connection with any such action or proceeding and agrees that service thereof may be made,



4



as the Holder may elect, by certified mail directed to the Borrower at the location provided for in Section 14 hereof, or, in the alternative, in any other form or manner permitted by law.

13.

Additional Documents .  From time to time the Holder will execute and deliver to the Borrower such additional instruments as the Borrower may reasonably request to effectuate the purposes of this Note.

14.

Notices .  All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by United States first-class mail, postage prepaid, or delivered personally by hand or by nationally recognized overnight courier, or sent via facsimile addressed to:

If to the Borrower:


GoEnergy, Inc.

Attn: Terry Fields

3960 Howard Hughes Parkway, Suite 500

Las Vegas , Nevada 89161

E-mail: terryfields7@aol.com


If to the Holder:






Facsimile:

or at such other address as shall have been furnished to the other party in writing in accordance with this Section 14.  All such notices and other written communications shall be effective:  (a) if mailed, five (5) calendar days after mailing; (b) if delivered, upon delivery; and (c) if sent via facsimile, upon confirmation of receipt.  

15.

Wiring Instructions .  Any amount wired to the Borrower hereunder shall be wired in accordance with the following wiring instructions:

Bank Name:

J.P. Morgan Chase

Bank Address:

Pico Roxbury Financial Center

9800 West Pico Blvd.

Los Angeles CA 90035            

Account Name:

GoEnergy, Inc

Account Number:

845003375

Routing number:

              ABA# 322271627

16.

Severability .  If any provision of this Note is prohibited or unenforceable in any jurisdiction, it shall be ineffective in such jurisdiction only to the extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable nor the remaining provisions hereof, nor render unenforceable such provision in any other jurisdiction.

17.

Assignment .  This Note shall inure to the benefit of, and shall be binding upon, the Borrower and the Holder and their respective successors and permitted assigns.  Neither party hereto may assign any of its rights or obligations hereunder without the prior written consent of the other party.



5



18.

Counterparts .  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  A facsimile signature of any party hereto shall be considered to have the same binding legal effect as an original signature.

19.

No Stockholder Rights .  Nothing contained in this Note shall be construed as conferring upon the Holder or any other Person the right to vote or to consent or to receive notice as a stockholder in respect of meeting of stockholders for the election of directors of the Borrower or any other matters or any rights whatsoever as a stockholder of the Borrower; and no dividends shall be payable or accrued in respect of this Note.

20.

JURY WAIVER .  THE BORROWER BY EXECUTION, AND THE HOLDER BY ACCEPTANCE, HEREOF EACH CONSENT THAT IN ANY CIVIL ACTION, COUNTERCLAIM, OR PROCEEDING, WHETHER AT LAW OR IN EQUITY, WHICH ARISES OUT OF, CONCERNS, OR RELATES TO THIS NOTE, ANY AND ALL TRANSACTIONS CONTEMPLATED BY THIS NOTE, THE PERFORMANCE OF THIS NOTE, OR THE RELATIONSHIP CREATED BY THIS NOTE, WHETHER SOUNDING IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, TRIAL SHALL BE TO A COURT OF COMPETENT JURISDICTION AND NOT TO A JURY.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY.  ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS NOTE WITH ANY COURT, AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THIS NOTE OF THE WAIVER OF THEIR RIGHT TO A TRIAL BY JURY.

[ SIGNATURE PAGE TO FOLLOW ]



6



IN WITNESS WHEREOF , the undersigned has executed and delivered this Note on and as of the date first set forth above.


GoEnergy, Inc., a Delaware corporation, as Borrower



By:

Name: Terry Fields

Title:  Principal Executive Officer




EXHIBIT A


NOTICE OF CONVERSION


The undersigned hereby elects to convert principal and/or interest under the Convertible Demand Promissory Note (the “ Note ”) of GoEnergy, Inc., a Delaware corporation (the “ Company ”), due upon demand if not previously repaid by the Company or converted into shares of common stock, par value $.0001 per share (the “ Common Shares ”), of the Company in accordance with the conditions of the Note, as of the date written below.  If the Common Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.


By the delivery of this Notice of Conversion, the undersigned represents and warrants to the Company that its ownership of the Common Shares does not exceed the amounts determined in accordance with Section 13(d) of the Exchange Act specified under Section 3 of the Note.



Conversion calculations



Date of Effect  of Conversion:_______________________


Principal Amount and/or Interest to be Converted:__________________________________


Number of Common Shares to be Issued:______________



Signature: ___________________

 

Print Name: __________________

Address:______________________


__________________________