Document:

Exhibit 10.2

 

SUBSCRIPTION AGREEMENT

AND INVESTMENT REPRESENTATION

 

This Regulation S Subscription
Agreement and Investment Representation (this “Agreement”) is entered into this 29th day of January, 2015 between
Event Cardio Group, Inc., a Nevada corporation (the “Company), and Louis P. Solferino, an individual (the “Investor”).

 

Preliminary Statement

 

The Company’s
common stock is registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and is traded
in the over the counter market and quoted through OTCQB under the symbol “ECGI.” Prior to November 14, 2014, the Company
was a “shell company” as defined under Section 405 of the Securities Act of 1933, as amended (the “Securities
Act”). On November 14, 2014, the Company acquired 2340960 Ontario Inc., a Canadian company engaged in the development of
medical products in a reverse acquisition, and on November 17, 2014 filed a Current Report on Form 8-K (the “Super Form
8-K”) reporting such acquisition.

 

The Company
hereby agrees to sell to the Investor, and the Investor hereby agrees to purchase from the Company, 800,000 shares of the Company’s
common stock (the “Shares”) for a total purchase price of $72,000 (the “Purchase Price”), or $0.09 per
share.

 

NOW THEREFORE, intending to be
legally bound the parties hereto agree as follows:

 

SECTION
1

 

1.1Subscription.
The Investor, intending to be legally bound, hereby irrevocably subscribes for and agrees to purchase the Shares for the Purchase
Price, and the Company, intending to be legally bound, hereby agrees to issue one or more certificates evidencing the Shares to
the Investor against receipt of the Purchase Price.

 

SECTION 2

 

2.1Closing. The
closing (the "Closing") of the purchase and sale of the Shares, on the terms and subject to the conditions set forth
in this subscription agreement, shall occur simultaneously with the acceptance by the Company of the Investor's subscription,
as evidenced by the Company’s execution of this Agreement. The parties have agreed that the Closing shall take place no
later than January 31, 2015. At the Closing the Investor will deliver the Purchase Price to the Company and, within five days,
the Company will deliver to the Investor certificates evidencing the Shares registered in the name of the Investor.

 

SECTION 3

 

3.1Investor Representations,
Warranties and Covenants. The Investor hereby acknowledges, represents and warrants to, and agrees with, the Company as follows:

 

(a)Investment Purposes.
The Investor is acquiring the Shares for his own account as principal, not as a nominee or agent, for investment purposes only,
and not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part in any transactions that
would be in violation of the Securities Act or any state securities or "blue-sky" laws. No other person has a direct
or indirect beneficial interest in, and the undersigned does not have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participations to such person or to any third person, with respect to, the or any part of
the Shares for which the undersigned is subscribing that would be in violation of the Securities Act or any state securities or
"blue-sky" laws.

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(b)Authority. The
Investor has full power and authority to enter into this Agreement, the execution and delivery of this Agreement has been duly
authorized, if applicable, and this Agreement constitutes a valid and legally binding obligation of the Investor.

 

(c)Investment Experience.
The Investor, or the Investor’s professional advisors, has such knowledge and experience in finance, securities, taxation,
investments and other business matters as to evaluate investments of the kind described in this Agreement. By reason of the business
and financial experience of the Investor or his professional advisors (who are not affiliated with or compensated in any way by
the Company or any of its affiliates or selling agents), the Investor can protect his own interests in connection with the transactions
described in this Agreement.

 

(d)Exemption from Registration.
The Investor acknowledges its understanding that the offering and sale of the Shares is intended to be exempt from registration
under the Securities Act. In furtherance thereof, in addition to the other representations and warranties of the Investor made
herein, the Investor further represents and warrants to and agrees with the Company and its affiliates that the Investor has been
provided an opportunity for a reasonable period of time prior to the date hereof to obtain additional information concerning the
offering of the Shares, the Company and all other information to the extent the Company possesses such information or can acquire
it without unreasonable effort or expense.

 

(e)No Reliance.
Other than as set forth herein, the Investor is not relying upon any other information, representation or warranty by the Company
or any officer, director, stockholder, agent or representative of the Company in determining to invest in the Shares. The Investor
has consulted, to the extent deemed appropriate by the Investor, with the Investor’s own advisers as to the financial, tax,
legal and related matters concerning an investment in the Shares and on that basis believes that his investment in the Shares
is suitable and appropriate for the Investor.

 

(f) Exempt Transaction
The Investor understands that the Shares are being offered and sold in reliance on an exemption from the registration requirements
of the Securities Act under Rule 506 of Regulation D promulgated under the Securities Act and as “covered securities”
(as defined in Section 18(b)(4)(E) of the Securities Act for purposes of state securities laws, and that the Company is relying
upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Investor
set forth herein in order to determine the applicability of such exemptions and the suitability of the Investor to acquire the
Shares. In this regard, the Investor represents, warrants and agrees that he is an "accredited investor", as such term
is defined in Rule 501(a) of Regulation D and as indicated on the signature page hereof, is experienced in investments and business
matters, has made investments of a speculative nature and has purchased unregistered securities in private placements in the past
and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the
Investor to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed
investment decision with respect to the proposed purchase, which represents a speculative investment. The Investor has the authority
and is duly and legally qualified to purchase and own the Shares. The Investor is able to bear the risk of such investment for
an indefinite period and to afford a complete loss thereof. The information set forth on the signature page hereto regarding the
Investor is accurate.

 

(g)Legends. Each
certificate representing the Shares shall be endorsed with the following legends, in addition to any other legend required to
be placed thereon by applicable federal or state securities laws:

 

“THE SHARES EVIDENCED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES ACT”),
IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 506 OF REGULATION D OF THE SECURITIES ACT AND THE REPRESENTATIONS
OF THE INVESTOR SET FORTH IN THE INVESTOR’S SUBSCRIPTION AGREEMENT AND INVESTOR REPRESENTATION WITH THE COMPANY, INCLUDING
THE INVESTOR’S REPRESENTATION THAT THE INVESTOR IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE 501 OF REGULATION D) AND THAT
THE INVESTOR ACQUIRED THE SHARES FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO RESALE OR FURTHER DISTRIBUTION IN VIOLATION
OF APPLICABLE LAW.

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THE SHARES EVIDENCED BY THIS CERTIFICATE MAY NOT BE
OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, HYPOTHECATED, NOR WILL ANY ASSIGNEE OR ENDORSEE HEREOF BE RECOGNIZED AS AN
OWNER HEREOF BY THE ISSUER FOR ANY PURPOSE, UNLESS A REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
WITH RESPECT TO THE SHARES EVIDENCED BY THIS CERTIFICATE SHALL THEN BE IN EFFECT OR UNLESS THE AVAILABILITY OF AN
EXEMPTION FROM REGISTRATION SHALL BE ESTABLISHED TO THE REASONABLE SATISFACTION OF COUNSEL OF THE ISSUER.”

 

The Investor
consents to the Company making a notation on its records or giving instructions to any transfer agent of the Company, if any,
in order to implement the restrictions on transfer of the Shares set forth in this Section.

 

(h) Information.
The Investor has been furnished with or has had access to the Super Form 8-K, which includes information concerning the business,
security ownership, directors and officers, and financial statements of the Company, as well as risk factors relating to an investment
in the Company, and all subsequent reports filed by the Company under the Exchange Act (together with the Super Form 8-K, the
“SEC Reports”) at the Commission’s EDGAR Website at sec.gov. In addition, the Investor has received in writing
from the Company such other information concerning its operations, financial condition and other matters as the Investor has requested
in writing and considered all factors the Investor deems material in deciding on the advisability of investing in the Shares.
Investor has carefully read, and understands the information in the SEC Reports. Neither such inquiries nor any other due diligence
investigations conducted by the Investor or his advisors, if any, or its representatives shall modify, amend or affect the Investor's
right to rely on the Company's representations and warranties contained herein. The Investor has had the opportunity to obtain
additional information as desired in order to evaluate the merits and the risks inherent in acquiring and owning the Shares. The
Investor understands that his investment in the Shares involves a high degree of risk and is able to afford a complete loss of
such investment. The Investor has sought such accounting, legal and tax advice as he has considered necessary to make an informed
investment decision with respect to his acquisition of the Shares.

 

(i) Representations
And Warranties With Respect To The USA Patriot Act.

 

(i) The Investor understands and agrees that the Company prohibits the investment
of funds by any persons or entities that are acting, directly or indirectly, (i) in contravention of any U.S. or international
laws and regulations, including anti-money laundering regulations or conventions, (ii) on behalf of terrorists or terrorist organizations,
including those persons or entities that are included on the List of Specially Designated Nationals and Blocked Persons maintained
by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC"), as such list may be amended from time to
time, (iii) for a senior foreign political figure, any member of a senior foreign political figure’s immediate family or
any close associate of a senior foreign political figure, unless the Company, after being specifically notified by the Investor
in writing that it is such a person, conducts further due diligence, and determines that such investment shall be permitted, or
(iv) for a foreign shell bank (such persons or entities in (i) through (iv) are collectively referred to as "Prohibited Persons").

 

(ii) The Investor
represents, warrants and covenants that: (i) he is not, nor is any person or entity controlling, controlled by or under
common control with the Investor, a Prohibited Person, and (ii) to the extent the Investor has any beneficial owners, (a) it
has carried out thorough due diligence to establish the identities of such beneficial owners, (b) based on such due
diligence, the Investor reasonably believes that no such beneficial owners are Prohibited Persons, (c) it holds the evidence
of such identities and status and will maintain all such evidence for at least five years from the date of the Investor's
complete withdrawal from the Company, and (d) he will make available such information and any additional information that the
Company may require upon request.

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(iii) If any of the foregoing representations, warranties or covenants ceases to
be true or if the Company no longer reasonably believes that it has satisfactory evidence as to their truth, notwithstanding any
other agreement to the contrary, the Company may be obligated to freeze the Investor’s investment, either by prohibiting
additional investments, declining or suspending any withdrawal requests and/or segregating the assets constituting the investment
in accordance with applicable regulations, or the Investor’s investment may immediately be involuntarily withdrawn by the
Company, and the Company may also be required to report such action and to disclose the Investor’s identity to OFAC or other
authority. In the event that the Company is required to take any of the foregoing actions, the Investor understands and agrees
that it shall have no claim against the Company, or  its affiliates, directors, members, partners, shareholders, officers,
employees and agents for any form of damages as a result of any of the aforementioned actions.

 

(j)No
Governmental Review. The Investor is aware that no federal or state agency has (i) made any finding or determination as to
the fairness of this investment, (ii) made any recommendation or endorsement of the Shares, or (iii) guaranteed or insured any
investment in the Share or any investment made by the Company.

 

(k) Jurisdiction.
The Investor resides at the address set forth on the signature page hereto.

 

SECTION 3

 

3.1 Company’s Representations
and Warranties. The Company represents and warrants to the undersigned as follows:

 

(a) Organization of
the Company. The Company is a corporation duly organized and validly existing and in good standing under the laws of Nevada.

 

(b)Authority;
Valid Issuance. (a) The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement; (b) the execution and delivery of this Agreement by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and no further
consent or authorization of the Company or its Board of Directors or stockholders is required; and (c) this Agreement has
been duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by
other equitable principles of general application. When issued against payment of the Purchase Price, the Shares, shall be
duly and validly issued, fully paid, and non-assessable. Neither the sale of the Shares pursuant to, nor the Company's
performance of its obligations under, this Agreement shall (i) result in the creation or imposition of any liens, charges,
claims or other encumbrances upon the Shares or any of the assets of the Company. The Shares shall not subject the
undersigned to personal liability by reason of the ownership thereof.

 

(c)No General Solicitation
or Advertising in Regard to this Transaction. Neither the Company nor any of its affiliates nor any person acting on its or
their behalf (a) has conducted or will conduct any general solicitation (as that term is used in Rule 502(c) of Regulation D)
or general advertising with respect to the Shares, or (b) made any offers or sales of any security or solicited any offers to
buy any security under any circumstances that would require registration of the Shares under the Securities Act.

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(d) SEC
Information. The SEC Reports have been made available to the Investor via the Commission’s EDGAR system. As of the
date of its filing with the Commission (except as to the financial statements which are as of the date thereof), the
information in the SEC Reports complied in all material respects with the requirements of the Exchange Act and the rules and
regulations of the Commission promulgated thereunder applicable thereto, and each of the SEC Reports, at the time they were
filed with the Commission, did not 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. As of their respective dates, the financial statements of the Company included in the SEC Reports
(except (i) as may be otherwise indicated in such financial statements or the notes thereto, (“Company Financial
Statements”) complied as to form in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto. The Company Financial Statements have been prepared in accordance with
United States generally accepted accounting principles, consistently applied, during the periods involved or (ii) in the case
of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements) and
fairly present in all material respects the consolidated financial position of the Company and its consolidated subsidiaries
as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the Company Financial
Statements, the Company has no liabilities, contingent or otherwise, other than: (i) liabilities incurred in the ordinary
course of business subsequent to November 30, 2014, and (ii) obligations under contracts and commitments incurred in the
ordinary course of business and not required under generally accepted accounting principles to be reflected in such financial
statements, which, individually or in the aggregate, are not material to the financial condition or operating results of the
Company.

 

(f) Use
of Proceeds. The Company will use the proceeds from the sale of the Shares as working capital.

 

SECTION 4

 

4.1 Indemnity.
The Investor agrees to indemnify and hold harmless the Company, its officers and directors, employees and its affiliates and their
respective successors and assigns and each other person, if any, who controls any thereof, against any loss, liability, claim,
damage and expense whatsoever (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating,
preparing or defending against any litigation commenced or threatened or any claim whatsoever) arising out of or based upon any
false representation or warranty or breach or failure by the Investor to comply with any covenant or agreement made by the Investor
herein or in any other document furnished by the Investor to any of the foregoing in connection with this transaction.

 

4.2Modification.
Neither this Agreement nor any provisions hereof shall be modified, discharged or terminated except by an instrument in writing
signed by the party against whom any waiver, change, discharge or termination is sought.

 

4.3Notices.
Any notice, demand or other communication which any party hereto may be required, or may elect, to give to anyone interested hereunder
shall be sufficiently given if (a) deposited, prepaid, with a recognized international courier service, (b) delivered personally,
(c) upon the expiration of twenty four (24) hours after transmission, if sent by facsimile if a confirmation of transmission is
produced by the sending machine (and a copy of each facsimile promptly shall be sent as provided in clause (a), in each case to
the parties at their respective addresses set forth below their signatures to this Agreement (or at such other address for a party
as shall be specified by like notice; provided that the notices of a change of address shall be effective only upon receipt thereof).

 

4.4Counterparts.
This Agreement may be executed through the use of separate signature pages or in any number of counterparts and by facsimile,
and each of such counterparts shall, for all purposes, constitute one agreement binding on all parties, notwithstanding that all
parties are not signatories to the same counterpart. Signatures may be facsimiles.

 

4.5Binding Effect.
Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties and their heirs,
executors, administrators, successors, legal representatives and assigns.

 

4.6Entire Agreement.
This Agreement and the documents referenced herein contain the entire agreement of the parties and there are no representations,
covenants or other agreements except as stated or referred to herein and therein.

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4.7Assignability.
This Agreement is not transferable or assignable by the undersigned.

 

4.8Applicable Law;
Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without
giving effect to conflicts of law principles. If there is any litigation relating to this Agreement or the transaction contemplated
hereby, the parties hereto irrevocably consent to the jurisdiction of the courts of the State of New York and of any federal court
located in such State in connection with any action or proceeding arising out of or relating to this Agreement, any document or
instrument delivered pursuant to, in connection with or simultaneously with this Agreement, or a breach of this Agreement or any
such document or instrument. In any such action or proceeding, each party hereto waives personal service of any summons, complaint
or other process and agrees that service thereof may be made in accordance with Section 4.3. Within 30 days after such service,
or such other time as may be mutually agreed upon in writing by the attorneys for the parties to such action or proceeding, the
party so served shall appear or answer such summons, complaint or other process. EACH PARTY HERETO WAIVES TRIAL BY JURY IN
ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR ANY BREACH OR ALLEGED BREACH HEREOF.

 

 

[signature page is on following page]

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Accredited Investor Status:
I hereby certify that I am an accredited investor (as defined in Rule 501 of Regulation D) by virtue of one or more of the following
(please check applicable boxes):

 

I have a net worth, or joint
net worth together with my spouse, at the time of this subscription in excess of $1,000,000* [ ]

 

I had an individual income in excess of $200,000
in each of the two most recent years or joint income with Subscriber’s spouse in excess of $300,000 in each of those years
and has a reasonable expectation of reaching the same income level in the current year [ ]

____

*(PLEASE NOTE: In calculating
net worth, you include all of your assets (other than your primary residence), whether liquid or illiquid, such as cash, stock,
securities, personal property and real estate based on the fair market value of such property MINUS all debts and liabilities
(other than a mortgage or other debt secured by your primary residence unless such borrowing occurred in the 60 days preceding
the date of purchase of the Interests and was not in connection with the acquisition of the primary residence).  In the event
any incremental mortgage or other indebtedness secured by your primary residence occurs in the 60 days preceding the date of the
purchase of the Interests, the additional mortgage or other indebtedness secured by your primary residence must be treated as
a liability and deducted from your net worth even though the value of your primary residence will not be included as an asset.
Further, the amount of any mortgage or other indebtedness secured by your primary residence that exceeds the fair market value
of the residence should also be deducted from your net worth.

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the day and year this subscription has been accepted by the Company as set forth below.

 

 

	 	 	/s/ Louis Solferino
	 	 	Louis Solferino
	 	 	 
	Address:	 	7 Cobble Lane
	 	 	Levittown, NY 11756
	Telephone:	 	 
	E-mail:	 	 

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ACCEPTANCE OF SUBSCRIPTION

 

ACCEPTED BY:

 

Event Cardio Group Inc.

By:/s/ John Bentivoglio

John Bentivoglio

Chief Executive Officer

 

Address: 2798 Thamesgate Drive, Mississauga, Ontario, Canada
L4T 4E8

Date: February 2, 2015

    	 	8roko_ex101.htm

Exhibit 10.1

 

 

PURCHASE AND SALE AGREEMENT

 

This Purchase and Sale Agreement (hereafter, this “Agreement”) is made and entered into by Cinco NRG, LLC, a Wyoming limited liability company,  with an address of 11011 Richmond Avenue, Houston, Texas 77042; (the “Seller”), and Petrodome Bloomington, LLC, a Texas limited liability company,  with an address of 4200 Montrose Boulevard, Suite 150, Houston, Texas 77006 (as “Buyer”) (collectively, “the Parties”).

 

For and in consideration of the mutual covenants and agreements set out below, and the benefits to be derived, the receipt and sufficiency of which are acknowledged, the Parties hereby enter into this Agreement and agree as follows:

 

ARTICLE I

 

PURCHASE AND SALE

1.1 Property.   All of the following shall be referred to as the “Property”:

 

All Seller’s right, title and interest in the “Oil and Gas Leases”, “Wells”, “Pipelines”, “Easements” and “Contracts” described in Exhibit “A” attached hereto and made a part hereof, including the rights of Seller under all agreements, oil and/or gas purchase and sales contracts, permits and rights-of-way relating thereto, together with a like undivided interest in the personal property, fixtures and improvements used in connection therewith, all of which collectively are referred to herein as “the Property.”  Working interest and net revenue interest under wells applicable to the Property shall be as set forth in Exhibit “A”

 

1.2 Purchase and Sale of Property.   In consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and a full discharge granted in connection therewith,  upon full execution of this Agreement, Seller does hereby transfer, grant, bargain, sell, convey and assign to Buyer all of its right title and interest in and to the Property, subject to the terms and conditions of this Agreement.

 

The Buyer hereby accepts the foregoing Agreement and binds and obligates itself, and its successors and assigns, to comply with all obligations of Seller thereunder and to indemnify and maintain Seller harmless as against such obligations.  This Agreement shall bind and inure to the benefit of Buyer, and its successors and assigns.  Nothing contained in this Agreement, express or implied, is intended to confer upon any other person or entity any benefits, rights or remedies.

 

1.3 Effective Time.   The purchase and sale of the Property shall be effective for all purposes as of 12:01 AM. Central Standard Time on January 1, 2015, (the “Effective Time”). The “Closing Date” shall be not later than February 2, 2015, subject to extensions as provided herein.

 

  

  

  

 

ARTICLE II

 

PURCHASE PRICE

 

2.1 Purchase Price and Closing Date.   The “Purchase Price” for the Property shall be Five Hundred Thousand ($500,000.00), as adjusted in accordance with Section 2.2, the “Adjusted Purchase Price” to be paid on the Closing Date by wire transfer of immediately available funds paid concurrently with the execution of this Agreement (Exhibit “B” wiring instructions for Seller).

 

2.2 Adjusted Purchase Price.  The Purchase Price shall be adjusted at or after Closing as follows and the resulting amount shall be referred to as the Adjusted Purchase Price.

 

(a) The Purchase Price shall be adjusted upward by the following:

 

(1) The value of all merchantable, allowable oil and/or gas in storage above the pipeline connection at the Effective Time that is credited to the Property, the value to be the actual price received by Buyer from the production purchaser  as of the Effective Time less applicable taxes and royalties;

 

(2) The amount of all actual direct operating expenditures   and capital expenditures paid by Seller to Buyer that are attributable to the Property during the period of time between the Effective Time and the Closing Date; and,

 

(b) The Purchase Price shall be adjusted downward by the following:

 

(1) The proceeds received by Seller that are attributable to the Property for production from the Property for that period of time subsequent to the Effective Time

 

(2) An amount equal to all unpaid ad valorem, property, production, severance, and similar taxes and assessments based on or measured by the ownership of the Property or the production of hydrocarbons or the receipt of proceeds accruing to the Property prior to the Effective Time, which amount shall be based upon the taxes assessed against the Property for the preceding calendar year or, in the cases where the taxes are assessed on other than a calendar year basis, for the preceding tax period.

 

(3) The Purchase Price shall be adjusted to reflect the payment by Cinco NRG, LLC to Petrodome Bloomington, LLC for unpaid back expenses related to the Property incurred prior to the Effective Date in the amount of $239,062.72

 

  

  

  

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations and Warranties of Seller.   Seller makes no representations and warranties other than the following:

 

(a) Seller is a corporation validly existing and in good standing under the laws of the State of Wyoming and is duly qualified to carry on its business in the State of Texas.

 

(b) Seller has all requisite power and authority to carry on its business as presently conducted, to enter into this Agreement, and to perform its obligations under this Agreement. The consummation of the transactions contemplated by this Agreement will not violate or be in conflict with any provision of Seller’s charter, bylaws or governing documents, or any contracts, agreements, or instruments to which Seller is a party or is bound, or any judgment, decree, order, statute, rule or regulation applicable to Seller.

 

(c) The execution, delivery, and performance of this Agreement and the transactions contemplated by this Agreement have been duly and validly authorized by all requisite action, corporate and otherwise, on the part of Seller, to the extent necessary or required.  This Agreement has been duly executed and delivered on behalf of Seller and this Agreement does constitute a legal and valid obligation of Seller.

 

(d) Seller has incurred no liability, contingent or otherwise, for brokers’ or finders’ fees relating to the transactions contemplated by this Agreement for which Buyer shall have any responsibility.

 

(e) To the best of Seller’s knowledge and belief, no suit, action or other proceeding (collectively referred to herein as “Claims”) is pending or threatened before any court or governmental agency and there are no liens (inchoate or otherwise) that relate to the Property or that might result in impairment  or loss of Seller’s title to any portion  of the Property, the value of the Property, or that might hinder or impede the operation or enjoyment of the Property.

 

3.2 Representations and Warranties of Buyer.   Buyer makes no representations and warranties other than the following:

 

(a) Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Texas and is duly qualified to carry on its business in the State of Texas.

 

(b) Buyer has all requisite power and authority to carry on its business as presently conducted to enter into this Agreement, to purchase the Interests on the terms described in this Agreement and to perform its other obligations provided for in this Agreement. The consummation of the transactions contemplated by this Agreement will not violate, nor be in conflict with, any provision of Buyer’s charter, bylaws or governing documents, or any agreement or instrument to which Buyer is a party or is bound, or any judgment, decree, order, statute, rule or regulation applicable to Buyer.

 

(c) The execution, delivery, and performance of this Agreement and the transactions contemplated by this Agreement have been duly and validly authorized by all requisite action, corporate and otherwise, on the part of Buyer, to the extent necessary or required.  This Agreement has been duly executed and delivered on behalf of Buyer, this Agreement does constitute legal and valid obligations of Buyer.

 

(d) Buyer has incurred no liability, contingent or otherwise, for Brokers’ or finders’ fees relating to the transactions contemplated by this Agreement for which Seller shall have any responsibility.

 

(e) Buyer has in its possession or available to it sufficient funds in order to close the purchase and sale transaction as contemplated in this Agreement.

 

  

  

  

 

ARTICLE IV

 

COVENANTS

4.1 Covenants of Seller. To the extent possible, Seller covenants as follows:

 

Seller shall use its best efforts to take or cause to be taken all such actions as may be necessary or advisable to consummate and make effective the sale of the Property and the transactions contemplated by this Agreement and to assure that as of the Closing Date Seller will not be under any material corporate, legal or contractual restriction that would prohibit or delay the timely consummation of such transactions.

 

4.2   Covenants of Buyer.   Buyer covenants and agrees with Seller as follows:

 

(a) Buyer shall pay Adjusted Purchase Price to Seller and use reasonable efforts to take or cause to be taken all such actions as may be necessary or advisable to consummate and make effective the purchase of the Property and the transactions contemplated by this Agreement and to assure that as of the Effective Time and the Closing Date Buyer will not be under any material corporate, legal or contractual restriction that would prohibit or delay the timely consummation of such transactions.

 

(b) From and after the Effective Date Buyer shall pay or cause to be paid unpaid ad valorem, property, production, severance, and similar taxes and assessments based on or measured by the ownership of the Property or the production of hydrocarbons or the receipt of proceeds accruing to the Property from and after the Effective Time and shall indemnify and hold Seller harmless from any liability for the failure to pay or discharge same.

 

ARTICLE V

 

CLOSING

 

5.1 Date of Closing.   Subject to the conditions stated in this Agreement, the consummation of the transactions contemplated by this Agreement (the “Closing”) shall be held at 10:00 a.m. on or before February 2, 2015, or such other date and time as Buyer and Seller agree to in writing.  This date, as amended, if amended, shall be referred to as the “Closing Date.”

 

5.2 Place of Closing.   The Closing shall be held at the offices of Buyer, or at such other place as Buyer and Seller may agree upon in writing.

 

5.3 Closing Obligations.   At the Closing the following events shall occur, each being a condition precedent to the others and each being deemed to have occurred simultaneously with the others:

 

(a) Buyer and Seller shall sign the Closing Statement (see Exhibit “C”) reflecting Article 2.2, with agreement to the Adjusted Purchase Price.

 

(b) Buyer shall deliver to Seller confirmation of a wire transfer to Sellers account in immediately available funds for the Adjusted Purchase Price.

 

(c) Seller by execution of this document shall deliver to Buyer exclusive possession of the Property.

 

  

  

  

 

ARTICLE VI

 

OBLIGATIONS AFTER CLOSING

 

6.1 Post-Closing Adjustments.   Within 30 days after the Closing Date, Buyer shall prepare, in accordance with this Agreement, a statement (the post closing “Settlement Statement”) setting forth as of the Effective Date each adjustment or payment which was not finally determined as of the Closing with the Closing Statement, and showing the calculation of such adjustments. As soon as practicable after receipt of the Settlement Statement, Seller shall deliver to Buyer a written report containing any changes which Seller proposes be made to the Settlement Statement. The Parties shall undertake to agree upon the amounts due pursuant to such post-closing adjustments no later than 60 days after the Closing Date.

 

6.2 Sales Taxes.   Buyer shall pay all sales taxes occasioned by the sale of the Property, if any.

 

6.3 Assumption and Indemnification.   As of and after the Effective Time, Buyer shall do the following:

 

Buyer shall assume, defend, indemnify and hold Seller and Seller’s employees, officers, directors, managers, partners, representatives and affiliates harmless against all Claims, liabilities, costs, demands and causes of action of every kind in connection with the Property. In addition to the indemnity set forth above, Buyer shall indemnify, defend and hold Seller and Seller’s employees, officers, directors, managers, partners, representatives and affiliates harmless against all liabilities, claims and costs, demands and causes of action of every kind in connection with the use, occupancy, operation or abandonment of the Property that occurs after the Effective Time.

 

6.4 Proceeds of Production.   Buyer shall be entitled to receive all proceeds of production, attributable to the Property on and after the Effective Time. Seller shall be entitled to receive all proceeds of production attributable to the Property prior the Effective Time.

 

6.5 Further Assurances.   Seller and Buyer shall execute, acknowledge, and deliver or cause to be executed, acknowledged, and delivered such instruments and take such other action as may be necessary or advisable to carry out their obligations under this Agreement and under any Exhibit, document, certificate, or other instrument delivered pursuant to this Agreement.

 

6.6 Survival.   Except to the extent otherwise provided in this Section 8.6 all representations, warranties, covenants, agreements and indemnities provided in this Agreement shall survive Closing and remain in full force and effect and binding on each Seller and Buyer for a period of one (1) year following the Closing Date.  The provisions of Sections 6.3, 7.3, 7.6, 7.7, 7.8 as well as this Section 6.6 shall survive without limitation. 

 

ARTICLE VII

 

MISCELLANEOUS

 

7.1 Expenses.   Except as otherwise specifically provided in this Agreement, all fees, costs, and expenses incurred by Buyer or Seller in negotiating this Agreement or in consummating the transactions contemplated by this Agreement shall be paid by the party incurring the same, including with limitation, legal and accounting fees, costs and expenses.

 

7.2 Notices.   All notices and communications required or permitted under this Agreement shall be in writing and shall be effective when delivered addressed as follows:

 

 

  

  

  

 

	Cinco NRG, LLC (Seller)	Petrodome Bloomington, LLC (Buyer)
	11011 Richmond Avenue, Suite 525	4200 Montrose Boulevard, Suite 150
	Houston, Texas 77042	Houston, Texas 77006
	Attention: D, Hughes Watler, Jr.	Attention: Gregory K. Sampson
	Title: Chief Financial Officer	Title: Vice President Land
	(713) 479-7050	(713) 820-6618
	Hughes Watler-HWatler@caprockoil.com	Greg Sampson-greg@petrodomeenergy.com

 

Either party may, by written notice delivered to the other, change the address to which delivery shall thereafter be made.

 

7.3 Amendment.   This Agreement may not be altered or amended, nor any rights provided for in this Agreement waived, except by an instrument in writing executed by the party or parties to be charged with such amendment or waiver.

 

7.4 Announcements.   The Parties shall consult with each other with regard to all press releases and other announcements concerning this Agreement or the transaction contemplated by this Agreement and, except as may be required by applicable laws or regulations of any governmental agency, Buyer and/or Seller shall not issue any press release or any other announcement without the prior written consent of the other party.

 

7.5 Counterparts.   This Agreement may be executed by Buyer and Seller in any number of counterparts, each of which shall be deemed an original instrument, but all together shall constitute but one and the same instrument. This Agreement shall become operative when each party has executed at least one counterpart of this Agreement.

 

7.6 Governing Law and Forum.   This Agreement and the transactions contemplated by this Agreement shall be construed in accordance with, and governed by, the laws of the State of Texas.  All suits arising with respect to this Agreement shall be filed in the state and federal courts of competent jurisdiction in Harris County, Texas.

 

7.7 Entire Agreement.   This Agreement (including all Exhibits) constitutes the entire understanding between Buyer and Seller with respect to the subject matter of this Agreement, and supersedes all negotiations, prior discussions, prior agreements, and understandings relating to such subject matter. No material representation, warranty, covenant, agreement, promise, inducement or statement, whether oral or written, has been made by Seller or Buyer and relied upon by other that is not set forth in this Agreement or in the instruments referred to in this Agreement, and Seller and/or Buyer shall not be bound by or liable for any alleged representation, warranty, covenant, agreement, promise, inducement, or statement not set forth in this Agreement.

 

7.8 Several and Not Joint.   Notwithstanding any other provision to the contrary, the parties expressly agree that the respective obligations of the Sellers hereunder shall be several and not joint.

 

This Agreement is signed on this 28th day of January, 2015 (“the Signing Date”) by Seller and Buyer, but shall be deemed effective for all purposes as of the Effective Time.

 

SELLER:

Cinco NRG, LLC.

_________________________________

D. Hughes Watler, Jr, Chief Financial Officer

 

 

BUYER:

Petrodome Bloomington, LLC

_________________________________

Robert G. Wonish, President & COO

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