Exhibit 10.1

 
PURCHASE AND SALE AGREEMENT
 
This Purchase and Sale Agreement (the “Agreement”) is made and entered into this
____day of October, 2012 and made effective on the 1st day of November, 2012
(the “Effective Date”), between Fortuna Energy, Inc, whose address is 4848 Hwy
84 #110, Williston, ND  58801 (“SELLER”); and Stratex Oil & Gas, Inc (“BUYER”),
whose address is 30 Echo Lake Road, Watertown, Connecticut 06795.  SELLER and
BUYER collectively hereafter referred to as the “Parties” or individually as a
“Party”.
 
WITNESSETH:
 
WHEREAS, SELLER represents that it is the owner of certain oil and gas leasehold
interests in Williams County and Stark County, North Dakota covering the lands
as described in Exhibit “A” attached hereto and made a part hereof (“Leasehold
Interests”).
 
WHEREAS, SELLER desires to sell, assign, transfer, and convey to BUYER and BUYER
agrees to purchase and receive all of SELLER’s right, title and interest in and
to the Leasehold Interests;
 
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements set forth herein, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
 
1.  
PURCHASE PRICE. The total purchase price for the Leasehold Interests shall be
Two Hundred Thousand Dollars ($200,000.00) cash paid in hand and Two Hundred
Thousand Stock Shares for Stratex Oil and Gas, Inc, hereinafter referred to as
the “Purchase Price”.  The effective date shall be November 1st, 2012, meaning
SELLER shall retain revenue from production through October 31st, 2012.

2.  
DEPOSIT.  Upon BUYER’s receipt of a fully executed copy of this Agreement, BUYER
shall tender Twenty Thousand Dollars ($20,000.00) (the “Deposit”) by cashier’s
check or wire transfer of immediately available funds to the credit of SELLER.
In the event BUYER is unable or unwilling for any reason to close the sale, or
otherwise terminates the Agreement in accordance with the terms of this
Agreement, SELLER shall immediately refund the Deposit to BUYER in immediately
available funds. If the purchase and sale of the Leasehold Interests is
consummated in full and the terms of this Agreement are satisfied, the Deposit
shall be deducted from the Purchase Price or the Adjusted Purchase Price at
Closing.

3.  
CLOSING. The sale and conveyance by SELLER and purchase and receipt by BUYER of
the Leasehold Interests will occur at a closing (the “Closing”) to be held
October 30th, or at an earlier or later date approved by the Parties
hereto.  The Closing will be held at a mutually agreeable location.  At the
Closing, SELLER shall execute, acknowledge and deliver to BUYER recordable
assignments conveying the Leasehold Interests on a form of assignment attached
hereto as Attachment “1” (the “Assignment of Oil and Gas Lease”) and Attachment
“2” (the “Assignment of Oil and Gas Lease”).  Concurrently, BUYER will pay to
SELLER, the Purchase Price or Adjusted Purchase Price, as applicable, via wire
transfer to the depositary designated by SELLER.  Upon confirmation of good,
paid funds deposited into SELLER’s account, SELLER will deliver to BUYER the
signed and notarized Assignment of Leasehold Interests. The Parties shall take
such other actions, and execute such other instruments as may be reasonably
required to consummate the transaction set forth herein.

 
 
 
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4.  
REPRESENTATIONS AND WARRANTIES. BUYER acknowledges that the Leasehold Interests,
described in Exhibit “B”, were derived from Check Stubs sent to, and relied upon
by, SELLER.  SELLER warrants and agrees to defend title to said Leasehold
Interests.  SELLER agrees to defend title to the Leasehold Interests as to all
liens, claims, and encumbrances of all persons lawfully claiming, through or
under SELLER, but not otherwise. SELLER further represents and warrants that
there are no lawsuits pending against SELLER which do or could affect the title
or interests conveyed; that SELLER is not aware of any such lawsuits or other
claims which are threatened; that the Leasehold Interests are not subject to any
agreement, indenture, order, judgment, decree or other restrictions or
provisions whether shown of record or unrecorded; that there are no unrecorded
assignments of overriding royalty interest executed by BUYER burdening the
Leasehold Interests; that there are no carried interests executed by BUYER
burdening the Leasehold Interests and no other obligations to third parties
creating a disproportionate obligation for costs relating thereto;  and that
SELLER has the full power and right to sell and convey the same.  BUYER may
terminate this Agreement if SELLER is in material breach of any of the
representations and warranties contained herein without any further liability to
SELLER.

5.  
DUE DILIGENCE.  Upon SELLER’s acceptance of the terms of this Agreement, SELLER
will make available to BUYER all documents in possession of SELLER with respect
to the Leasehold Interests.  Thereafter, BUYER shall have the right at BUYER’s
sole cost and risk to commence a due diligence examination of the Leasehold
Interests and Lands, including but not limited to a title review of the
Leasehold Interests and Lands, a survey of the Lands and an environmental
assessment of the Leasehold Interests and the Lands.  SELLER agrees to cooperate
fully and assist with BUYER’s examination of title and other assessments
provided for herein.

Upon discovery of any title defects prior to Closing, BUYER shall notify SELLER
of any defects and whether or not said defects can be reasonably cured.  SELLER
shall have 60 days to cure title of such disclosed defects.  The Closing date
shall be changed in order to accommodate the time needed to cure title.  If,
after the 60 day period to cure title, BUYER is unwilling to accept the
Leasehold Interests with any remaining defects or if the defects cannot be
cured, such Leasehold Interests will no longer be subject to this Agreement and
the Adjusted Purchase Price shall be paid to SELLER at Closing.
 
If, through its due diligence, BUYER determines that: (i) SELLER has not
obtained the necessary consents to assign or authority to convey the Leasehold
Interests; or (ii) that a material title defect or a material environmental
condition exists that, alone or in the aggregate, would impair more than Twenty
Percent (20%) of the Purchase Price, BUYER has the option to terminate this
Agreement without liability to SELLER.
 
6.  
INDEMNITY AND RISK OF LOSS.  SELLER shall indemnify and hold BUYER harmless from
and against all costs, expenses, attorneys’ fees, liens, judgments, claims,
demands and causes of action whatsoever relating directly or indirectly to the
ownership of the Leasehold Interests prior to the Closing Date, whether such
fees, liens, judgments, claims, demands and causes of action (including, but not
limited to all environmental matters) arise before or after the Closing date.
Risk of loss only as to ownership of the Leasehold Interests that arises after
the Closing date shall pass from SELLER to BUYER at Closing.

 
 
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7.  
NOTICES. All communications required or permitted under this Agreement may be
delivered by registered or certified mail, courier service, facsimile
transmission or email, addressed as set forth below.  Either Party may, by
written notice to the other, change the address for such mailing such
notices.  Faxes may be sent for convenience but must be followed up with mailing
on any important notice issues as follows:

 
NOTICES TO SELLER:
 
Fortuna Energy, Inc
 
4848 Hwy 85 #110
 
Williston, ND  58801
 
Attn:  Lynn Leininger
 
Telephone:  701-570-8000
 
Fax:  ________________
 

 
NOTICES TO BUYER:
 
Stratex Oil and Gas, Inc
 
30 Echo Lake Road
 
Watertown, Connecticut 06795
 
Attn:  Steve Funk
 
Telephone:  406-252-2129
 
Fax:  _________________
 

8.  
EXCLUSIVITY.  Upon written acceptance of this Agreement, SELLER shall not offer
the Leasehold Interests or any portion thereof to, entertain offers from,
negotiate for their sale to, or make information about them available to, any
third Party prior to Closing or the earlier termination of this Agreement.

9.  
DISCLOSURE.  It is agreed BUYER shall have the sole right to make any and all
public announcements regarding this Agreement.   BUYER and its ultimate parent
shall be permitted to disclose information regarding this transaction to U.S.
securities regulators, stock exchanges, its advisors, potential investors and
the investing public, whether by way of prospectus, information memorandum,
filing with the securities regulatory authorities or otherwise.  Notwithstanding
anything to the contrary herein, SELLER shall be permitted to disclose
information regarding this transaction to its partners, shareholders, officers,
directors, lending institutions, advisors or regulatory agencies.

 
 
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10.  
AMENDMENTS AND ASSIGNABILITY.  No amendments or other changes to this Agreement
shall be effective or binding on either of the Parties unless the same shall be
in writing and signed by the Parties.  This Agreement shall not be assigned
either in whole or in part by either Party without the express written consent
of the other Party.

11.  
ATTORNEY’S FEE.  Each Party shall be responsible for its own costs and
reasonable attorneys’ fees; provided, however, that the prevailing Party in any
dispute arising out of this Agreement, upon entry of a final non-appealable
order, shall be awarded all costs and expenses, including without limitation
reasonable attorney’s fees and court costs, which it incurred as a result of any
court proceeding arising therefrom, notwithstanding the initial clause of this
sentence to the contrary.

12.  
ENTIRE AGREEMENT.  This Agreement, together with Exhibits A and B attached
hereto and incorporated herein, shall constitute the entire agreement of the
Parties, expressly superseding all prior written and oral understandings and
agreements.

13.  
GOVERNING LAW.  This Agreement shall be governed by the laws of the State of
North Dakota which will have exclusive jurisdiction over any legal dispute
arising from this Agreement.  SELLER and BUYER agree that any legal dispute or
court proceeding shall be conducted in Williams County, North Dakota

 
SELLER
 
Fortuna Energy, Inc
 
By ______________________________
 
Lynn Leininger, President
 

 
BUYER
 
Stratex Oil & Gas, Inc
 
By ______________________________
 
Steve Funk, CEO
 
 
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Attachment “1” to Purchase and Sale Agreement
 
from Fortuna Energy, Inc (Assignor)
to Stratex Oil & Gas, Inc (Assignee)
dated effective November 1, 2012

ASSIGNMENT OF OIL AND GAS LEASE

Know All Men by These Presents:

That the undersigned, Fortuna Energy, Inc, 4848 Hwy 85, #110, Williston, North
Dakota  58801, hereinafter called “Assignor” for and in consideration of the sum
of Ten and more dollars ($10.00) cash in hand paid and other good and valuable
considerations, the receipt of which is hereby acknowledged, does hereby grant,
bargain, sell, convey, assign and set over unto Stratex Oil & Gas, Inc, whose
address is 30 Echo Lake Road, Watertown, Connecticut, 06795, hereinafter called
“Assignee”, all of Assignor’s right, title and interest in and to all the oil,
gas and other minerals in and under that may be produced from the following
described lands together with any and right, title, and interest Assignor may
own under said lands situated in Stark County, as set forth in Exhibit “A” along
with all of Assignor’s interests in producing wells as set forth in Exhibit “B”
attached hereto.

EXECUTED this ___ day of _________________, 2012 and made effective November 1,
2012.

ASSIGNOR

FORTUNA ENERGY, INC

By ______________________________
Lynn Leininger, President

 

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ACKNOWLEDGEMENT

STATE OF _______________

COUNTY OF _______________

This instrument was acknowledged before me on _________________, 2012, by Lynn
Leininger, President of Fortuna Energy, Inc, with an address of 4848 Hwy 85,
#110, Williston, ND  58801.
 

  _________________________________
Notary Public

 
My commission expires: _______________________
 
 
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EXHIBIT “A”
 
This Exhibit is attached to the Assignment of Oil and Gas Interests by and
between Fortuna Energy, Inc (Assignor) and Stratex Oil & Gas, Inc (Assignee),
dated October __, 2012 made effective November 1, 2012.  Assignor’s interests in
Stark County, North Dakota being assigned herein are under the following
described lands: to Purchase and Sale Agreement
 
#
Lessor
Lessee
Legal
Recorded
         
1
 
Fortuna Energy, Inc
   
2
       
3
       
4
       
5
       
6
       
7
       

 
SIGNED FOR IDENTIFICATION

FORTUNA ENERGY, INC

By ______________________________
Lynn Leininger, President

 
 
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Attachment “2” to Purchase and Sale Agreement
 
from Fortuna Energy, Inc (Assignor)
to Stratex Oil & Gas, Inc (Assignee)
dated effective November 1, 2012

ASSIGNMENT OF OIL AND GAS LEASE

Know All Men by These Presents:

That the undersigned, Fortuna Energy, Inc, 4848 Hwy 85, #110, Williston, North
Dakota  58801, hereinafter called “Assignor” for and in consideration of the sum
of Ten and more dollars ($10.00) cash in hand paid and other good and valuable
considerations, the receipt of which is hereby acknowledged, does hereby grant,
bargain, sell, convey, assign and set over unto Stratex Oil & Gas, Inc, whose
address is 30 Echo Lake Road, Watertown, Connecticut, 06795, hereinafter called
“Assignee”, all of Assignor’s right, title and interest in and to all the oil,
gas and other minerals in and under that may be produced from the following
described lands together with any and right, title, and interest Assignor may
own under said lands situated in Williams County, as set forth in Exhibit “A”
along with all of Assignor’s interests in producing wells as set forth in
Exhibit “B” attached hereto.

EXECUTED this ___ day of _________________, 2012 and made effective November 1,
2012.

 
ASSIGNOR

FORTUNA ENERGY, INC

By ______________________________
Lynn Leininger, President

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ACKNOWLEDGEMENT

STATE OF _______________

COUNTY OF _______________

This instrument was acknowledged before me on _________________, 2012, by Lynn
Leininger, President of Fortuna Energy, Inc, with an address of 4848 Hwy 85,
#110, Williston, ND  58801.
 

  _________________________________
Notary Public

 
My commission expires: _______________________
 
 
 
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EXHIBIT “A”
 
This Exhibit is attached to the Assignment of Oil and Gas Interests by and
between Fortuna Energy, Inc (Assignor) and Stratex Oil & Gas, Inc (Assignee),
dated October __, 2012 made effective November 1, 2012.  Assignor’s interests in
Williams County, North Dakota being assigned herein are under the following
described lands: to Purchase and Sale Agreement
 
#
Lessor
Lessee
Legal
Recorded
         
1
 
Fortuna Energy, Inc
   
2
       
3
       
4
       
5
       
6
       
7
       

 
SIGNED FOR IDENTIFICATION

 
FORTUNA ENERGY, INC

By ______________________________
Lynn Leininger,
 
 

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