Exhibit 10.5

 

 

PREPARED BY AND WHEN RECORDED OR FILED, PLEASE RETURN TO:

Phyllis Y. Young
Akin Gump Strauss Hauer & Feld LLP
1111 Louisiana Street, 44th Floor
Houston, Texas 77002

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR
STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS
FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR
DRIVER’S LICENSE NUMBER

ASSIGNMENT OF NET PROFITS INTEREST TERMINATION AGREEMENT

THE STATE OF CALIFORNIA §     § KNOW ALL PERSONS BY THESE PRESENTS: COUNTY OF
KERN §  

 

     THIS ASSIGNMENT OF NET PROFITS INTEREST TERMINATION AGREEMENT (this
“Agreement”) is made and entered into effective as of the Effective Date (as
defined herein), by and between DAYBREAK OIL AND GAS, INC., a Washington
corporation (“Daybreak”) and WELL WORKS, LLC, a Utah limited liability company
(“Well Works”).

WITNESSETH:

     WHEREAS, Daybreak, as Assignor, and Well Works, as Assignee, entered into
that certain Assignment of Net Profits Interest (the “Assignment”) dated and
effective as of 7:00 a.m. Houston, Texas time on September 17, 2010 whereby
Daybreak assigned to Well Works an interest (the “Net Profits Interest”) in the
oil and gas produced from certain leases constituting the Subject Properties (as
defined therein) measured by and equivalent to two percent (2%) of the Net
Profits (as defined therein) realized by Daybreak from such production, which
leases and the lands thereunder are more particularly described on Exhibit A
attached hereto;

     WHEREAS, Daybreak and Well Works have agreed to terminate the Assignment in
accordance with the terms hereof.

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     NOW, THEREFORE, for and in consideration of the releases, agreements,
covenants and undertakings set forth herein, the parties hereto hereby agree as
follows:

     1.       Effective as of 11:59 p.m., Los Angeles, California time on
October 31, 2011 (the “Effective Date”), the Assignment and each and every
right, title, estate, privilege, appurtenance, agreement, obligation,
representation, warranty and other provision contained in the Assignment, are
hereby terminated and rendered null and void in all respects, and of no further
force or effect whatsoever. WELL WORKS ON ITS OWN BEHALF AND ON BEHALF OF ANY
AND ALL OTHER PARTIES CLAIMING BY THROUGH OR UNDER WELL WORKS, HEREBY WAIVES AND
RELEASES EACH AND EVERY RIGHT, TITLE, INTEREST, ESTATE, AND/OR PRIVILEGE THEY
HAVE OR MAY HAVE, AS OF THE EFFECTIVE DATE, ARISING OUT OF, CREATED UNDER OR BY
VIRTUE OF THE ASSIGNMENT. AS OF THE EFFECTIVE DATE, WELL WORKS AND ANY AND ALL
OTHER PARTIES CLAIMING BY, THROUGH OR UNDER WELL WORKS OR THE ASSIGNMENT SHALL
HAVE NO FURTHER RIGHT, TITLE OR INTEREST IN AND TO THE NET PROFITS INTEREST.

     2.       The signatories hereto hereby represent that they have full and
complete authority to bind their respective parties to this Agreement, and that
no other consent is necessary or required in order for the signatories to
execute this Agreement.

     3.       This Agreement constitutes the entire agreement of the parties
hereto, regarding the particular matters set forth herein, supersedes all other
prior agreements, representations and covenants, written or oral, with respect
thereto and may not be varied or amended except by a writing signed by both of
the parties hereto.

     4.       This Agreement shall be binding upon and inure to the benefit of
the parties hereto, and their respective predecessors, heirs, beneficiaries,
legal and personal representatives, successors and assigns.

     5.       Daybreak and Well Works hereby agree that this Agreement shall be
recorded in the real property records of Kern County, California.

     6.       THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
TEXAS, EXCEPT TO THE EXTENT THAT THE LAWS OF ANY OTHER STATE ARE MANDATORILY
APPLICABLE.

     7.       This Agreement may be executed in counterpart signature pages,
which when taken together with the signature of both parties, shall constitute a
complete original.

 

[Signatures Follow]

 

 

2

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EXECUTED effective as of the Effective Date.

                                     DAYBREAK OIL AND GAS, INC.

  By: /s/ JAMES F. WESTMORELAND   Name:        James F. Westmoreland   Title:
President and CEO

 

             WELL WORKS, LLC

  By:           /s/ ERIC B. HALE   Name: Eric B. Hale   Title: Managing Member

 

[ACKNOWLEDGMENTS FOLLOW]

 

 

 

 

 

 

 

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STATE OF TEXAS

§

§

COUNTY OF GALVESTON                

§

 

This document was acknowledged before me on October 31, 2011, by JAMES F.
WESTMORELAND, of DAYBREAK OIL AND GAS, INC., on behalf of said corporation.

                                                                        /s/
CLARA C. STILL   Notary Public in and for the State of Texas   My commission
expires:                Clara C. Still 12-14-12 Notary’s Printed Name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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STATE OF UTAH

§

 

§

COUNTY OF SALT LAKE            

§

 

     This document was acknowledged before me on October 31, 2011, by ERIC B.
HALE, of WELL WORKS, LLC, on behalf of said limited liability company.

  /s/ LINDA RINO   Notary Public in and for the State of Utah   My commission
expires: Linda Rino 2-1-2015 Notary’s Printed Name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT A

Attached to and made a part of that certain Assignment of Net Profits Interest
Termination Agreement

Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

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