Document:

AMENDMENT NO. 12
             TO REVOLVING CREDIT, TERM LOAN AND SECURITY AGREEMENT

     THIS  AMENDMENT  NO.  12  (this "Agreement") is entered into as of July 12,
2010,  by and among BEST ENERGY SERVICES, INC (f/k/a HYBROOK RESOURCES CORP.), a
corporation organized under the laws of the State of Nevada ("Best"), BOB BEEMAN
DRILLING  COMPANY,  a  corporation organized under the laws of the State of Utah
("BBD")  and  BEST WELL SERVICE, INC., a corporation organized under the laws of
the  State  of  Kansas  ("BWS")  (Best,  BBD  and  BWS,  each  a "Borrower", and
collectively  "Borrowers"),  the  financial  institutions  party  hereto
(collectively, the "Lenders" and individually a "Lender") and PNC BANK, NATIONAL
ASSOCIATION  ("PNC"), as agent for Lenders (PNC, in such capacity, the "Agent").

                                   BACKGROUND

Borrowers,  Lenders and Agent are parties to that certain Revolving Credit, Term
Loan and Security Agreement dated as of February 14, 2008 (as amended, restated,
supplemented  or  otherwise  modified  from  time to time, the "Loan Agreement")
pursuant  to  which  Agent  and Lenders provide Borrowers with certain financial
accommodations.

Borrowers  have requested that Agent and Lenders amend certain provisions of the
Loan Agreement as hereafter provided, and Agent and Lenders are willing to do so
on  the  terms  and  conditions  hereafter  set  forth.

NOW,  THEREFORE,  in  consideration  of  any  loan or advance or grant of credit
heretfore  or  hereafter  made  to  or  for the account of Borrowers by Agent or
Lenders,  and  for  other  good  and  valuable  consideration,  the  receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

1.     Definitions.  All  capitalized  terms  not  otherwise  defined or amended
herein  shall  have  the  meanings  given  to  them  in  the  Loan  Agreement.

2.     Reservation  of  Rights:  Borrowers acknowledge that the Event of Default
set  forth  on  Schedule  I  hereto (the "Existing Default") has occurred and is
continuing  under  the  Loan  Agreement.

     (a) As a result of the Existing Default, Agent has the immediate right to
exercise its rights and remedies under the Loan Agreement, the Other Documents
or at law.

     (b) To the extent Agent makes any additional Advances after the date
hereof, such Advances shall not constitute either a waiver of, nor agreement to
forbear by Agent with respect to the Existing Default or any future violation or
Event of Default under the Loan Agreement or the Other Documents, including,
without limitation, the Existing Default. No such additional Advances by Agent
shall, directly or indirectly, in any way whatsoever, impair, prejudice or
otherwise adversely effect Agent's right at any time and from time to time to
exercise any right, privilege or remedy in connection with the Loan Agreement or
related documents or amend or alter the provisions of the Loan Agreement or the
Other Documents or

<PAGE>
constitute a course of dealing or other basis for altering any Obligation of
Borrowers or any other Person or any right, privilege or remedy of Agent under
the Loan Agreement or the Other Documents.

     (c) Although Agent is not presently taking any immediate action with
respect to the Existing Default except as set forth above, Agent hereby reserves
all its rights and remedies under the Loan Agreement, the Other Documents and
applicable law, and its election not to exercise any such right or remedy at the
present time shall not (a) preclude Agent from ceasing at any time to make
Advances, (b) limit in any manner whatsoever Borrowers' obligation to comply
with, and Agent's right to insist on Borrowers' compliance with, each and every
term of the Loan Agreement and the Other Documents or (c) constitute a waiver of
any Event of Default or any right or remedy available to Agent under the Loan
Agreement, the Other Documents or applicable law, and Agent hereby expressly
reserves its rights with respect to the same.

     (d) No failure or delay on the part of Agent in exercising any right or
remedy under the Loan Agreement and no course of dealing between Borrowers and
Agent shall operate as a waiver of any such right or remedy nor shall any single
or partial exercise of any right or remedy under the Loan Agreement preclude any
other or further exercise thereof or the exercise of any other right or remedy
under the Loan Agreement. Agent expressly reserves all of its rights and
remedies under the Loan Agreement.

3.     Amendments  to  Loan Agreement.  Subject to the satisfaction of Section 4
below, and effective as of July 1, 2010, the Loan Agreement is hereby amended as
follows:

     (a) Section 1.2 of the Loan Agreement is hereby amended by inserting the
following defined terms in appropriate alphabetical order:

"Deferred  Amortization  Amounts"  shall  mean,  for each month commencing on or
after May 1, 2010 through and including December 1, 2010, the difference between
(x)  $125,000 and (y) the amount of the scheduled principal payment with respect
to  the  Term  Loan actually made for such month pursuant to Section 2.4 of this
Agreement.
"Term  Loan  Overadvance  Amount" shall mean, on any date, the greater of (A) $0
and  (B)  difference  between  (x) the outstanding principal balance of the Term
Loan  and  (y)  80% of the orderly liquidation value of the Borrowers' Rig Fleet
Equipment  and  other  Equipment,  as  determined  by  Agent  in  its reasonable
discretion  after  reviewing the most recent OLV Appraisal conducted pursuant to
Section  9.16  of  this  Agreement.

     (b) Section 2.4 of the Loan Agreement is hereby amended by amending and
restating the third sentence thereof to read in its entirety as set forth below:

"The  Term  Loan shall be, with respect to principal, payable monthly commencing
on  May  1, 2009, and on the first day of each month thereafter, as follows: (a)
$97,500  per month, from the Amendment No. 1 Effective Date through December 31,
2009,  (b)  $125,000  per month, from January 1, 2010 through December 31, 2010;
provided,  however,  that  the

<PAGE>
Term Loan payment with respect to the months of (x) May 2010 and June 2010 shall
be  in  the  amount  of  $50,000  payable  on  May  3,  2010,  and June 1, 2010,
respectively  and  (y)  July  2010  and  August  2010, shall be in the amount of
$25,000,  payable  on  July  1,  2010  and August 1, 2010, respectively, and (c)
$150,000  per  month thereafter, with the balance payable upon expiration of the
Term,  subject  to acceleration upon the occurrence of an Event of Default under
this  Agreement  or  termination  of  this  Agreement."

     (c) Section 2.21(b) of the Loan Agreement is hereby amended to read in its
entirety as set forth below:

"(b)     Commencing  with  the  fiscal  quarter ending on or about September 30,
2010  and  for  each  fiscal  quarter  ending  thereafter,  upon delivery of the
financial  statements  to  Agent  referred to in and required by Section 9.8 for
such  fiscal  quarter but in any event not later than forty-five (45) days after
the  end  of  each  such  fiscal quarter, Borrowers shall prepay the outstanding
amount  of  the  Advances in an amount equal to 75% of Excess Cash Flow for such
fiscal  quarter,  which  amount  shall  be  applied  first,  to  the outstanding
principal  installments of the Term Loan in inverse order of maturity until such
time as the Term Loan has been repaid by an amount equal to the aggregate amount
of  all  Deferred Amortization Amounts with respect to the Term Loan, second, to
the  outstanding  principal  installments  of  the Term Loan in inverse order of
maturity  until such time as the Term Loan has been repaid by an amount equal to
the  Term Loan Overadvance Amount (if any), third, to reduce the Special Advance
Amount  on  a  dollar-for-dollar basis with respect to any such Excess Cash Flow
until  the  Special  Advance Amount is reduced to $0 (without any requirement to
repay  Revolving  Advances unless required by Section 2.5 after giving effect to
the  reduction  of  the  Special  Advance  Amount),  fourth,  to the outstanding
principal  installments  of  the Term Loan in inverse order of maturity.  In the
event  that  the  applicable  financial  statement  is  not so delivered, then a
calculation  based  upon  estimated  amounts  shall  be made by Agent upon which
calculation  Borrowers  shall  make  the  prepayment  required  by  this Section
2.21(b),  subject  to  adjustment  when  the  applicable  financial statement is
delivered  to Agent as required hereby.  The calculation made by Agent shall not
be  deemed  a  waiver of any rights Agent or Lenders may have as a result of the
failure  by  Borrowers  to  deliver  such  financial  statement."

4. Conditions of Effectiveness. This Agreement shall become effective when Agent
shall  have  received:

     (a) four (4) copies of this Agreement executed by the Required Lenders and
each Borrower;

<PAGE>
     (b) an amendment fee of $5,000, which fee shall be fully-earned, payable
and non-refundable upon the execution of this Agreement by Borrowers and may be
charged to Borrowers' Account as a Revolving Advance;

     (c) a common stock purchase warrant for 250,000 shares of common stock of
Best at an exercise price of $0.10 per share in form and substance satisfactory
to Agent and its counsel; and

     (d) such other certificates, instruments, documents, agreements and
opinions of counsel as may be required by Agent or its counsel, each of which
shall be in form and substance satisfactory to Agent and its counsel.

5.     Representations,  Warranties  and  Covenants.  Each  Borrower  hereby
represents,  warrants  and  covenants  as  follows:

     (a) This Agreement and the Loan Agreement constitute legal, valid and
binding obligations of such Borrower and are enforceable against such Borrower
in accordance with their respective terms.

     (b) Upon the effectiveness of this Agreement, each Borrower hereby
reaffirms all covenants, representations and warranties made in the Loan
Agreement to the extent the same are not amended or waived hereby and agrees
that all such covenants, representations and warranties shall be deemed to have
been remade as of the effective date of this Agreement.

     (c) The execution, delivery and performance of this Agreement and all other
documents in connection therewith has been duly authorized by all necessary
corporate action, and does not contravene, violate or cause the breach of any
agreement, judgment, order, law or regulation applicable to any Borrower.

     (d) No Event of Default or Default has occurred and is continuing or would
exist after giving effect to this Agreement (other than the Existing Default).

     (e) No Borrower has any defense, counterclaim or offset with respect to the
Loan Agreement or the Obligations.

6.     Effect  on  the  Loan  Agreement.

     (a) Upon the effectiveness of this Agreement, each reference in the Loan
Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like
import shall mean and be a reference to the Loan Agreement as amended hereby.
Except as specifically amended herein, the Loan Agreement, and all other
documents, instruments and agreements executed and/or delivered in connection
therewith, shall remain in full force and effect, and are hereby ratified and
confirmed. This Agreement shall constitute an "Other Document" for all purposes
under the Loan Agreement.

     (b) Except as expressly provided herein, the execution, delivery and
effectiveness of this Agreement shall not operate as a waiver of any right,
power or remedy of Agent or any Lender, nor constitute a waiver of any provision
of the Loan Agreement, or any

<PAGE>
other documents, instruments or agreements executed and/or delivered under or in
connection therewith.

     7.     Release.  The  Borrowers  hereby  acknowledge  and  agree that:  (a)
neither  they  nor  any  of  their  Affiliates have any claim or cause of action
against  Agent  or  any  Lender  (or  any of Agent's or any Lender's Affiliates,
officers,  directors, employees, attorneys, consultants or agents) and (b) Agent
and  each  Lender  have  heretofore properly performed and satisfied in a timely
manner  all  of  their  respective  obligations  to the Borrowers under the Loan
Agreement  and  the  Other  Documents.  Notwithstanding the foregoing, Agent and
each Lender wish (and the Borrowers agree) to eliminate any possibility that any
past  conditions,  acts,  omissions,  events  or  circumstances  would impair or
otherwise  adversely  affect  any of Agent's or such Lender's rights, interests,
security  and/or  remedies  under  the  Loan  Agreement and the Other Documents.
Accordingly,  for  and  in  consideration  of  the  agreements contained in this
Agreement  and  other good and valuable consideration, each Borrower (for itself
and  its  Affiliates  and  the successors, assigns, heirs and representatives of
each  of  the  foregoing)  (each a "Releasor" and collectively, the "Releasors")
does  hereby fully, finally, unconditionally and irrevocably release and forever
discharge  Agent, each Lender and each of their respective Affiliates, officers,
directors, employees, attorneys, consultants and agents (each a "Released Party"
and  collectively,  the  "Released  Parties")  from  any  and all debts, claims,
obligations,  damages,  costs,  attorneys'  fees,  suits,  demands, liabilities,
actions,  proceedings  and  causes  of  action,  in  each case, whether known or
unknown,  contingent  or  fixed,  direct  or indirect, and of whatever nature or
description,  and  whether in law or in equity, under contract, tort, statute or
otherwise,  which any Releasor has heretofore had or now or hereafter can, shall
or  may  have against any Released Party by reason of any act, omission or thing
whatsoever done or omitted to be done on or prior to the date hereof arising out
of,  connected  with or related in any way to this Agreement, the Loan Agreement
or  any  Other  Document,  or any act, event or transaction related or attendant
thereto,  or  Agent's  or  any  Lender's  agreements  contained  therein, or the
possession,  use,  operation  or  control  of  any  of  the assets of agreements
contained  therein,  or  the possession, use, operation or control of any of the
assets of the Borrowers, or the making of any advance, or the management of such
advance  or  the  Collateral.

8.     Governing  Law.  This  Agreement  shall  be binding upon and inure to the
benefit  of  the  parties hereto and their respective successors and assigns and
shall  be  governed by and construed in accordance with the laws of the State of
New  York  (other  than  those  conflict  of  law  rules that would defer to the
substantive  law  of  another  jurisdiction).

9.     Cost  and Expenses.   Borrowers hereby agree to pay the Agent, on demand,
all  costs  and  reasonable  expenses  (including reasonable attorneys' fees and
legal  expenses)  incurred in connection with this Agreement and any instruments
or  documents  contemplated  hereunder.

10.     Headings.  Section  headings  in  this Agreement are included herein for
convenience  of reference only and shall not constitute a part of this Agreement
for  any  other  purpose.

11.     Counterparts;  Facsimile  Signatures.  This Agreement may be executed by
the  parties hereto in one or more counterparts of the entire document or of the
signature  pages  hereto,  each  of which shall be deemed an original and all of
which  taken  together  shall  constitute

<PAGE>
one and the same agreement.  Any signature received by facsimile or electronic
transmission shall be deemed an original signature hereto.

                  [Remainder of page intentionally left blank]
<PAGE>
     IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and
year  first  written  above.

                         PNC BANK, NATIONAL ASSOCIATION,
                         as Lender and as Agent

                         By:__________________________
                         Name:
                         Title:

                         BEST ENERGY SERVICES, INC.

                         By:__________________________
                         Name:
                         Title:

                         BOB BEEMAN DRILLING COMPANY

                         By:__________________________
                         Name:
                         Title:

                         BEST WELL SERVICE, INC.

                         By:__________________________
                         Name:
                         Title:

                      [Signature Page to Amendment No. 12]ex-10_1.htm

Share Exchange Agreement

 

This Share Exchange Agreement (the "Agreement") is made and entered by and between Resource Polymers Inc., an Ontario Corporation, duly registered by the laws of Ontario, Canada and in good standing (“Resource”), the shareholders of Resource (the “Resource Shareholders”) and Fox Petroleum Inc. (“Fox”), a Nevada corporation also duly registered and in good standing, effective as of July 15, 2010.

 

Recitals

 

A.           RESOURCE is the owner of a Scrap Plastic processing plant with certain equipment, fixtures, and improvements, the assets, located in Hamilton, RESOURCE Canada,

 

B.           The RESOURCE Shareholders desire to exchange their shares of common stock held of record in RESOURCE representing 100% of the total issued and outstanding shares of RESOURCE and FOX desires to issue an aggregate of 1,750,000 shares of its common stock to the RESOURCE Shareholders;

 

C.           FOX further desires to assume an aggregate debt in the amount of $______ incurred by RESOURCE to Davfam Investments (1998) Ltd. during fiscal year 1995, as reflected in the financial books and records of RESOURCE (the “RESOURCE Debt”), which RESOURCE Debt has verbally established conversion terms;

 

Now, therefore, in consideration of the parties' covenants and promises contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge the parties agree:

 

1.           Definitions. The following defined terms, wherever used in this Agreement, shall have the meanings described below:

 

1.1           “Assets” means and includes: (a) the consulting business and operations

 

1.2           “Shares” means all of the shares currently held by the shareholders of RESOURCE Polymers Inc.

 

1.3           "Closing" means the delivery of documents to be executed and delivered by the parties, the deposit and delivery of the Purchase Price, as defined in this Agreement, and the consummation of the transactions contemplated under this Agreement.

 

1.4           "Closing Date" means the date on which the Closing occurs as provided in Section 6.1.

 

1.5           "Data" means environmental, title and other information, data and reports in RESOURCE’s possession or control relating to the Land and the Permits.

 

1.6           "Effective Date" means July 15, 2010 and as fully executed by RESOURCE and FOX.

 

1.7           “Land” means the site, where the fixtures and improvements are located described in Exhibit A, Part 1,

 

1.8           “Permits” means the approvals, licenses and permits.

  

  

  

 

2.           Exchange of Shares.

 

2.1           RESOURCE Shareholders. Subject to all of the terms and conditions of this Agreement, the RESOURCE Shareholders agree to tender their respective shares of RESOURCE held of record to FOX.

 

2.2           Issuance of Shares. FOX agrees to issue to the RESOURCE Shareholders an aggregate of One Million Seven Hundred and Fifty Thousand (1,750,000) shares of its common stock to the RESOURCE Shareholders and to assume the RESOURCE Debt.

 

2.3           Assumption and Performance of Permits. RESOURCE shall continue to maintain and keep current all operating permits and licenses required to operate Plastics recycling Facility

 

3.           Representations and Warranties of RESOURCE. RESOURCE represents and warrants to FOX the following:

 

3.1           Organization and Authorization. RESOURCE is a corporation duly organized and validly existing and in good standing under the laws of the RESOURCE. RESOURCE has the full power and authority to enter into this Agreement and to consummate the transactions contemplated under this Agreement. The making and performance of this Agreement and the agreements and other instruments required to be executed by RESOURCE have been, or at the Closing will have been, duly authorized by all necessary corporate actions and will be duly executed by a person authorized by RESOURCE to do so. RESOURCE shall deliver to FOX duly approved and executed resolutions of the directors and shareholders approving RESOURCE’s execution and delivery of this Agreement and the performance of its obligations under this Agreement.

 

3.2           No Breach of Laws or Contracts. The consummation by RESOURCE of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute a default under any applicable law or regulation, its articles of organization or operating agreement, or under any other agreement or instrument to which RESOURCE is a party, by which it is bound, or which affects the Assets.

 

3.3           Binding Obligations. When executed and delivered, this Agreement and all instruments executed and delivered by RESOURCE pursuant to this Agreement will constitute legal and binding obligations of RESOURCE and will be valid and enforceable in accordance with their respective terms.

 

3.4           Compliance with Laws. RESOURCE has not received notice from any governmental agency, of any physical or environmental condition existing on the Land or any access to the Land or created by RESOURCE or of any action or failure to act by RESOURCE which is a material violation of any applicable law, regulation or ordinance. To RESOURCE’s knowledge, there are currently no off-site improvement requirements that any governmental authority has imposed or threatened to impose on the Land.

 

3.5           No Litigation. There is no suit, action, arbitration or legal, administrative or other proceeding or governmental investigation pending or, to the knowledge of RESOURCE without inquiry, threatened against, or affecting the Assets or the ability of RESOURCE to perform its covenants and obligations under this Agreement.

  

  

  

 

3.6           Condition of and Title to the Assets.

 

3.6.1           Title to the Land. RESOURCE represents and warrants that RESOURCE’s title to the Assets is good and marketable and on the Closing shall be free and clear of any lien, claim or encumbrance, except the following (the “Permitted Exceptions”):

 

(a)           Liens for taxes and mortgages acknowledged by FOX on the Assets not yet due and payable or which are being contested in good faith;

 

(b)           Any items listed in the Title Commitment or any amendment or update to the Title Commitment to which FOX does not timely deliver to RESOURCE a Notice of Objection pursuant to Section 3.9.5.

 

3.6.2           Encroachments. To RESOURCES’s knowledge, the improvements on the Land lie entirely within the boundaries of the Land and no structure of any kind encroaches on or over the Land.

 

3.6.3           Condemnation. To RESOURCE’s knowledge, no portion of any of the Land or improvements on the Land is the subject of, or affected by, any condemnation or eminent domain proceeding.

 

3.6.5           Taxes. RESOURCE represents that all taxes, including without limitation, advalorem, property (both real and personal), production, severance, reclamation, and similar taxes and assessments based upon or measured by ownership of property or production of minerals or the receipt of proceeds there from which have become due and payable have been properly paid. FOX will not be liable for any taxes which accrue or are assessed before the Closing. To RESOURCE’s knowledge, there are no pending or threatened special assessments affecting the Assets.

 

4.           Representations and Warranties of FOX. FOX agrees, represents and warrants to RESOURCE the following:

 

4.1           No Breach of Law or Contracts. The consummation by FOX of the transactions contemplated by this Agreement will not result in a breach of any term or provision of, or constitute a default under any applicable law, regulation or ordinance or any other agreement or instrument to which FOX is a party or by which it is bound.

 

4.2           Binding Obligations. When executed and delivered this Agreement and all instruments executed by FOX pursuant to this Agreement, will constitute legal and binding obligations of FOX and will be valid and enforceable in accordance with their respective terms.

 

4.3           No Litigation. There is no suit, action, arbitration or legal, administrative or other proceeding or governmental investigation pending or, to the knowledge of FOX without inquiry, threatened against, or affecting the Assets or the ability of FOX to perform its covenants and obligations under this Agreement.

 

4.4           Brokers. FOX has incurred no liability, contingent or otherwise, for broker's or finder's fees relating to the transactions contemplated by this Agreement.

  

  

  

 

4.5           Assumption of RESOURCE Debt. FOX agrees to assume the RESOURCE Debt and to further do and perform all acts and execute and deliver all documents and take all such other steps as may be necessary or desirable to give full effect to the repayment terms of the RESOURCE Debt.

 

4.6           Organization and Authorization. FOX is a corporation duly organized and validly existing and in good standing under the laws of Nevada. FOX has the full power and authority to enter into this Agreement and to consummate the transactions contemplated under this Agreement. The making and performance of this Agreement and the agreements and other instruments required to be executed by FOX have been, or at the Closing will have been, duly authorized by all necessary corporate actions and will be duly executed by a person authorized by FOX to do so.

 

5.           Covenants.

 

5.1           Covenants of RESOURCE. RESOURCE covenants and agrees with FOX as follows:

 

5.1.1           Maintenance of Property. Until the Closing, RESOURCE shall cause the Assets to be maintained and operated in a good and workmanlike manner, shall not partition the Assets,shall maintain insurance now in force with respect to the Assets, shall pay or cause to be paid all costs and expenses incurred in connection with this Agreement, shall keep the Underlying Agreements in full force and effect, and shall perform and comply with all of the conditions and covenants contained in same and all other agreements relating to the Assets.

 

5.1.3           Copies of Agreements. RESOURCE has disclosed to FOX the existence of and has furnished FOX with copies of all agreements and contracts relating to the Assets, to the extent that MDP is aware of the existence of such agreements and contracts.

 

5.1.4           Notification of FOX of Suits, Litigation, Material Adverse Change, Etc. Until the Closing, RESOURCE promptly shall notify FOX of any suit, action, or other proceeding, actual or threatened, before any court, governmental agency or arbitrator and any cause of action or any other adverse change which relates to the Assets or which might result in impairment or loss of RESOURCE's title to any portion of the Assets or the value of the Assets or which might hinder or impede the operation of the Assets or which seeks to restrain or prohibit or to obtain substantial damages from RESOURCE in respect of, or which is related to or arises out of, this Agreement or the consummation of all or any part of the transactions contemplated under this Agreement of which RESOURCE becomes aware.

 

5.1.5           Agreement Not to Market the Assets. Until the Closing and thereafter if the Closing occurs, RESOURCE shall not assign, transfer, encumber or in any way dispose of any interest in or to the Shares to any other person or entity, or negotiate with any other person or entity with respect to the transfer or grant of any interest or option whatsoever in the Assets, except that RESOURCE may continue to sell aggregate, sand and gravel from the Assets in the ordinary course of RESOURCE’s business. These obligations of RESOURCE shall terminate before the Closing if and at such time as this Agreement is terminated as provided in Section 8.

  

  

  

 

5.1.7           Permits and Underlying Agreements. RESOURCE shall maintain the Permits and Underlying Agreements in full force and effect.

 

5.2           Covenants of FOX. FOX covenants and agrees with RESOURCE as follows:

 

5.2.1           Maintenance and Confidentiality of Data. Before the Closing, FOX shall exercise due diligence in safeguarding and maintaining all Data and keeping the Data confidential, except for such disclosure as reasonably deemed necessary by FOX for purposes of obtaining financing and such disclosures as counsel for either party may advise is legally required or an announcement which is required to be made to all governmental or regulatory agency, in which cases RESOURCE shall be given reasonable advance notice and the right to review and comment on same. If the Closing does not occur, FOX’s obligation to maintain the confidentiality Data shall survive termination of this Agreement.

 

5.2.2           Maintenance of Representations and Warranties. FOX shall use its reasonable best efforts to cause all of the representations and warranties of FOX contained in this Agreement to be true and correct as of the Closing; provided, however, that nothing contained in this Section shall create an obligation of FOX to RESOURCE to pay money or undertake any additional legal obligation.

 

6.           Closing.

 

6.1           Date and Place of Closing. The parties will execute and deliver to each other a signed counterpart or copy of this Agreement as escrow instructions and such general conditions of escrow as requires. In the event of any conflict between the terms of this Agreement and the general conditions of the closing, the terms of this Agreement shall control. The Closing shall be held at a time mutually agreed upon by RESOURCE and FOX on the Closing Date, unless extended by the parties' agreement. The Closing will be held at the offices of the RESOURCE. The Closing shall occur on or before June 25th, 2010.

 

6.2           Conditions Precedent to FOX's Duty to Close. The obligations of FOX under this Agreement to consummate the purhase of the Assets are subject to the satisfaction (or waiver by FOX) of the following at or before the Closing:

 

6.2.1           The representations and warranties of RESOURCE contained in this Agreement are true and correct in all material respects.

 

6.2.3           There has been no material adverse change affecting the Assets to which FOX has objected and RESOURCE has not cured.

 

6.2.4           There shall be no preliminary or permanent injunction or order from any federal or state court or by any federal, state or local regulatory agency and no statute, rule, regulation or order shall exist which restrains, enjoins or otherwise prohibits the transactions contemplated by this Agreement. There shall not be pending any action, suit or proceeding in which this transaction is opposed by the members or by the representatives of the members of any of the parties.

 

6.2.5           FOX shall have completed its due diligence investigation of the Assets to FOX’s satisfaction.

 

6.3           Conditions Precedent to RESOURCE's Duty to Close. The obligations of RESOURCE under this Agreement to consummate the sale of the Assets are subject to the satisfaction (or waiver by RESOURCE) of the following at or before the Closing:

  

  

  

 

6.3.1           All representations and warranties of FOX contained in this Agreement are true and correct in all material respects.

 

6.3.2           FOX has not committed a material breach of any of its covenants contained in this Agreement.

 

6.3.3           There has been no material adverse change affecting the Assets or the Underlying Agreements.

 

6.3.4           There shall be no preliminary or permanent injunction or order from any federal or state court or by any federal, state or local regulatory agency and no statute, rule, regulation or order shall exist which restrains, enjoins or otherwise prohibits the transactions contemplated by this Agreement. There shall not be pending any action, suit or proceeding in which this transaction is opposed by the members, owners or shareholders, as applicable, or by the representatives of the members, owners or shareholders, as applicable, of any of the parties.

 

6.4           Closing Obligations. At the Closing, RESOURCE and FOX shall have the following respective obligations:

 

6.4.1           RESOURCE's Obligations. At the Closing, RESOURCE shall:

 

6.4.1.1            Execute and deliver to FOX 100% of the shares of RESOURCE

 

6.4.1.10              Deliver the resolutions of RESOURCE’s directors and shareholders approving RESOURCES’s execution and delivery of this Agreement and RESOURCE’s performance of its obligations under this Agreement.

 

6.4.1.11              Take any other action consistent with the terms of this Agreement that may be reasonably requested by FOX for the purpose of closing the transactions contemplated under this Agreement.

 

6.4.2           FOX's Obligations. At the Closing, FOX shall:

 

6.4.2.1            Take any other action consistent with the terms of this Agreement that may be reasonably requested by RESOURCE for the purpose of closing the transactions contemplated under this Agreement.

 

7.           Obligations after Closing.

 

7.1           Recording Fees. Except as otherwise provided in and except as otherwise paid in accordance with Section 6.4, FOX shall pay all notary documentary, filing and recording fees required in connection with the filing and recording of any conveyances and assignments delivered by RESOURCE to FOX at the Closing in accordance with standard Ecuadorean practices.

 

7.2           Further Assurances. After the Closing, RESOURCE and FOX 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 respective obligations under this Agreement and under any document, certificate or other instrument delivered pursuant to this Agreement.

  

  

  

7.3                      Indemnification by FOX. If the Closing is held pursuant to Section 6, FOX shall assume and have responsibility and liability for the Assets from and after the Closing Date. Except as provided in Section 7.4. FOX shall defend, indemnify and hold harmless RESOURCE and its agents or affiliates, directors, employees, managers, members and officers from and against any and all claims, liabilities and costs (including reasonable attorneys' fees), relating to or arising from or in connection with any breach by FOX of any representation, warranty or covenant of FOX contained in this Agreement or in any agreement or other document executed by FOX in connection with this Agreement or relating to or arising from FOX’s ownership, possession or use of the Assets from and after the Closing Date.

 

7.4           Indemnification by RESOURCE. After the Closing, RESOURCE agrees to indemnify, defend and hold harmless FOX, and its respective agents or affiliates, directors, employees, managers, members and officers from and against any and all losses, claims, damages, liabilities, costs and expenses (including reasonable attorneys' fees and other expenses of investigating any claims and defending against or prosecuting any action) to which they or any of them may become subject due to, or which arise from any of the following (collectively the “Indemnity Claims”):

 

7.4.1           Any breach of RESOURCE’s covenants, agreements, warranties or representations contained in this Agreement or in any assignment or other documents executed by RESOURCE in connection with this Agreement.

 

7.4.2           Any failure of RESOURCE to pay liabilities assumed or incurred by RESOURCE pursuant to this Agreement;

 

7.4.3           The operations of RESOURCE or the acts or omissions of its employees or agents before the Closing Date; and

 

7.4.4           All obligations arising from or relating to RESOURCE’s ownership, possession or use of the Assets on or before the Closing Date; provided, however, that except as otherwise provided in this Agreement, RESOURCE shall have no indemnification obligations to FOX for obligations arising from or relating to FOX’s ownership, possession or use of the Assets after the Closing Date.

 

8.           Termination of Agreement.

 

8.1 Termination by RESOURCE. This Agreement and the transactions contemplated under this Agreement may be terminated by RESOURCE if before the Closing FOX materially breaches any representation or warranty made by FOX or any obligation undertaken by FOX and FOX fails to cure or to commence to cure such breach within five (5) days after receiving written noticefrom RESOURCE of such breach.

 

8.2 Termination by FOX. This Agreement and the transactions contemplated under this Agreement may be terminated by FOX if before the Closing RESOURCE materially breaches any representation or warranty made by RESOURCE or any obligation undertaken by RESOURCE and RESOURCE fails to cure or to commence to cure such breach within five (5) days after receiving written notice from RESOURCE of such breach.

 

9.           Miscellaneous.

 

9.1           Exhibits. The exhibits referred to in this Agreement are incorporated into this Agreement by reference and constitute a part of this Agreement.

  

  

  

 

9.2           Expenses. Except as otherwise specifically provided in this Agreement, all fees, costs, and expenses incurred by RESOURCE or FOX in negotiating this Agreement or in consummating the transactions contemplated by this Agreement shall be paid by the party incurring same, including, without limitation, legal and accounting fees, costs and expenses.

 

9.3           Notices. All notices required or authorized to be given under this Agreement shall be in written form. Any notices may be sent by registered or certified delivery, postage prepaid, return receipt requested, addressed to the proper party at the addresses described in this Section. Any notice may be personally delivered to the party or sent by telex, telegraph, telecopy or other electronic delivery method, and shall be effective when actually received by the addressee party. For purposes of this Agreement, the addresses of the parties are:

 

If to RESOURCE:

 

 

RESOURCE POLYMERS INC

15 Forsyth Place

Hamilton, Ontario L8S 4E5 Canada

If to FOX:  Fox Petroleum Inc.

1404 Rodman Street

Hollywood, Florida 33023

 

and copy to:

 

Diane D. Dalmy

Attorney at Law

8965 W. Cornell Place

Lakewood, Colorado 80227

 

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

 

9.4           Amendments. This Agreement may not be amended or any rights waived except by an instrument in writing signed by the party to be charged with such amendment or waiver and delivered by such party to the party claiming the benefit of such amendment or waiver.

 

9.5           Assignment. Neither party may assign or transfer its interest in this Agreement without the prior written consent of the other party.

 

9.6           Arbitration. Arbitration of all disputes arising from or relating to this Agreement shall be arbitrated by the parties as follows:

 

9.6.1           Site of Arbitration. The arbitration shall be held in RESOURCE, Canada.

 

9.6.2           Costs of Arbitration. Each party shall pay one-half (1/2) of the arbitrator's costs, expenses and fees for services.

  

  

  

 

9.7           Headings. The headings of the sections of this Agreement are for guidance and convenience of reference only and shall not limit or otherwise affect any of the terms or provisions of this Agreement.

 

9.8           Governing Law. This Agreement and the transactions and instruments contemplated under this Agreement shall be construed in accordance with, and governed by, the laws of RESOURCE without regard to the choice of law provisions of such law.

 

9.9           Entire Agreement. This Agreement (including the Exhibits) constitutes the

entire understanding among the parties with respect to the subject matter, superseding all prior negotiations, prior discussions and prior agreements, including but not limited to the letter agreement between the parties, and understandings relating to such subject matter. Each party has been represented by independent counsel of its choice and has participated in the negotiation and drafting of this Agreement. No provision or term of this Agreement shall be construed in favor of or against any party based on such party’s participation in the negotiation or drafting of such provision or term.

 

9.10           Scope of Representations and Warranties. All agreements, covenants, representations and warranties of the parties are contained in this Agreement, in the Exhibits and the documents referred to in this Agreement. No other agreements, covenants, representations and warranties have been made by any party and all prior agreements, covenants, representations and warranties are merged in this Agreement.

 

9.11           Parties in Interest. This Agreement shall be binding upon, and shall inure to the benefit of, the parties and their respective successors and permitted assigns.

 

9.12           Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party.

 

Each of the parties has caused this Agreement to be executed by its duly authorized representatives identified below.

 

 

RESOURCE  POLYMERS INC.

_________________________________________________

By: Jack Lieberman

Title:  President, Director

Fox Petroleum Inc.

_________________________________________________

By: WILLIAM  LIEBERMAN

Title: President

DATE: July 15, 2010

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