Document:

mcep-ex104_6.htm

EXHIBIT 10.4

 

 

 
ASSIGNMENT AND ASSUMPTION AGREEMENT
 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”), dated as of June 1, 2020 (the “Effective Date”), is made by and between MID-CON ENERGY OPERATING, LLC, an Oklahoma limited liability company (“OpCo”) and MID-CON ENERGY PARTNERS, LP, a Delaware limited partnership (the “Partnership”).  OpCo and the Partnership are collectively referred to herein as the “Parties” and each a “Party”.

 

RECITALS

 

WHEREAS, the Partnership, OpCo and certain other parties have entered into certain recapitalization transactions concurrently herewith (the “Recapitalization Transactions”).

 

WHEREAS, in connection with the Recapitalization Transactions and the documents executed and delivered in connection therewith, the Parties desire for the Partnership to assume and release OpCo from certain liabilities on the terms and conditions described herein;

WHEREAS, the Parties desire to make certain other arrangements as set forth herein with respect to electric deposits and retention and severance of employees;

NOW, THEREFORE, in consideration of the transactions described in the documents executed and delivered in connection with the Recapitalization Transactions, and the mutual covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

 

	
1.
	
Definitions.  Capitalized terms used in this Agreement shall have the meanings given such terms below.

	
(a)
	
“Governmental Authority” means (a) the United States or any state or local subdivision thereof and (b) any court or any governmental or administrative department, commission, board, bureau, agency or arbitration tribunal of the United States or of any state or political subdivision thereof.

	
(b)
	
“Joint Operating Agreements” means those certain unit operating agreements, joint operating agreements, plans of unitization and similar agreements and arrangements entered into by OpCo as the operator of certain oil and gas wells and related properties in which the Partnership or one of its subsidiaries has a working interest.

	
(c)
	
“Liability” means any direct or indirect liability, indebtedness, obligation, commitment, expense, claim, deficiency or guarantee of or by any Person of any type, whether known or unknown, and whether accrued, absolute, contingent, matured, or unmatured.

	
(d)
	
“Person” means any natural person, corporation, company, partnership (general or limited), limited liability company, trust, joint venture, joint stock company, unincorporated organization, Governmental Authority or other entity or association.

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(e)
	
“Properties” means the oil and gas wells and related properties owned by the Partnership and operated by OpCo pursuant to the Joint Operating Agreements.

	
(f)
	
“Services Agreement” means that certain Services Agreement, entered into as of December 20, 2011, among OpCo, the Partnership and certain other parties.

	
2.
	
References and Construction.  In this Agreement, unless expressly stated otherwise or the context requires otherwise, (a) the words “this Agreement,” “hereof,” “hereunder,” “herein,” “hereby” or words of similar import shall refer to this Agreement as a whole and not to a particular Section, subsection, clause or other subdivision hereof, (b) the words used herein shall include the masculine, feminine and neuter genders, and the singular and the plural, (c) the word “includes” and its derivatives means “includes, but is not limited to” and corresponding derivative expressions, and (d) unless expressly provided to the contrary, the word “or” is not exclusive.

	
3.
	
Assumption of Liabilities.  Effective as of the Effective Date, OpCo hereby delegates and assigns to the Partnership, and the Partnership hereby assumes and agrees to fully and timely pay, perform, discharge and otherwise satisfy, as and when due, all Liabilities relating to each of the following:

	
(a)
	
2019 Wyoming ad valorem taxes relating to the Properties, including payment therefor to the appropriate Governmental Authorities in the applicable counties in Wyoming, the total amount of which taxes, as of May 31, 2020, was $1,037,977.51;

	
(b)
	
suspense funds relating to the Properties, including payment to those Persons entitled to receive such suspense funds, the total amount of which, as of May 31, 2020, was $853,446.10;

	
 (c)
	
vacation or other paid-time-off for certain employees of OpCo, including payment therefor to the extent employees are entitled to receive it, up to a maximum of four weeks per employee, the total amount not to exceed $350,214.27; and

	
(d)
	
the amount of uncollectible accounts receivable experienced by OpCo under the Joint Operating Agreements between January 1, 2020 and the date upon which OpCo resigns as operator of the Properties under the Operating Agreements (which date is expected to be June 30, 2020); any such collectability shall be determined on January 31, 2021 (the “Determination Date”), and any such accounts receivable determined to be uncollectible as of such date shall be paid by the Partnership to OpCo on the Determination Date, and if not paid on such date, interest shall be paid on such amount from the Determination Date to the date paid at the annual rate of 12%.

The Partnership shall pay the liabilities set forth in this Section 3 as they become due.  If any such liability is not paid when due, then, until such past-due liability is paid, the Partnership shall not pay any amounts to the successor operator of the Properties. 

The Parties acknowledge and agree that the assumption of liabilities under this Section 3 will not be deemed to be a Transfer Tax as defined in the Contribution Agreement of even date herewith among the Partnership and the Contributor Parties thereto.

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4.
	
Electric Deposits.  The Parties acknowledge and agree that OpCo previously made cash deposits with various electric companies, co-ops and other providers of electric service (“Electric Companies”) to set up accounts for electric service to the Properties, and that the aggregate amount of such deposits as of May 31, 2020 was $760,935.  The Parties agree to cooperate to cause the Electric Companies to transfer sole responsibility for such accounts to the Partnership or the successor operator of the Properties.  The Parties also agree to cooperate to cause each Electric Company to return to OpCo the entire amount of the deposit made by OpCo.  Alternatively, if one or more Electric Company retains OpCo’s deposit in lieu of the Partnership providing its own deposit, then the Partnership shall promptly pay to OpCo the amount of each such retained deposit.

	
5.
	
Retention and Severance.  The Parties acknowledge and agree that OpCo plans to provide retention and severance benefits to certain employees of OpCo who provide services on behalf of the Partnership.  The Partnership and OpCo agree to cooperate in connection with the design and budgeted amount for such retention and severance benefits, and the Partnership agrees to fully and timely pay, or reimburse OpCo for, all Liabilities relating thereto, as and when due, up to a maximum aggregate amount of $155,000.00.

	
6.
	
Estimated Amount Due.  The Parties acknowledge and agree that, as of May 31, 2020, the estimated amount due from the Partnership to OpCo under the Joint Operating Agreements and under the Services Agreement is not less than $492,349.37, based on the calculation of joint interest billings by OpCo to the Partnership for May 2020 of $2,500,000.  Such amount is the best estimate of the Parties in good faith as of the execution of this Agreement, is subject to verification and adjustment as appropriate, and shall be verified, adjusted and paid on July 15, 2020.

	
7.
	
Release and Indemnity.  The Partnership hereby agrees to release, defend, indemnify and hold harmless OpCo from and against the Liabilities assumed by the Partnership, and the amounts to be paid by the Partnership, under this Agreement.

	
8.
	
Miscellaneous Provisions.

	
(a)
	
Choice of Law; Submission to Jurisdiction.  This Agreement shall be subject to and governed by the laws of the State of Oklahoma, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. Each Party hereby submits to the jurisdiction of the state and federal courts in the State of Oklahoma and to venue in Tulsa, Oklahoma.

	
(b)
	
Entire Agreement.  This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein.

	
(c)
	
Jointly Drafted.  This Agreement, and all the provisions of this Agreement, shall be deemed drafted by any of the Parties, and shall not be construed against any Party on the basis of that Party’s role in drafting this Agreement.

	
(d)
	
Further Assurances.  In connection with this Agreement and all transactions contemplated by this Agreement, each Party agrees to execute and deliver such additional 

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documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.

	
(e)
	
Assignment.  This Agreement may not be assigned by any Party without the prior written consent of the other Party.  This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns.

	
(f)
	
Relationship of the Parties.  Nothing in this Agreement shall be construed to create a partnership or joint venture or give rise to any fiduciary or similar relationship of any kind.

	
(g)
	
Amendment or Modification.  This Agreement may be amended, restated or modified from time to time only by the written agreement of all Parties.

	
(h)
	
Severability.  If any provision of this Agreement or the application thereof to any Person or circumstance shall be held invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

	
(i)
	
Counterparts.  This Agreement may be executed in any number of counterparts with the same effect as if all signatory Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

	
(j)
	
Attorneys’ Fees.  In any action or proceeding by a Party to enforce its rights hereunder, the prevailing party shall be entitled to recover its costs relating thereto, including reasonable attorney's fees and costs.

[Signature Page Follows]

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IN WITNESS WHEREOF, the Parties have executed this Agreement on, and to be effective as of, the Effective Date.

MID-CON ENERGY OPERATING, LLC

By:/s/ Charles R. Olmstead
Charles R. Olmstead
Chief Executive Officer

 

MID-CON ENERGY PARTNERS, LP

By:    MID-CON ENERGY GP, LLC,

its general partner

By:/s/ Charles L. McLawhorn, III
Charles L. McLawhorn, III
Vice President, General Counsel and Secretary

Signature Page to Assignment and Assumption AgreementEX-10.1

 Exhibit 10.1 

STOCKHOLDER SUPPORT AGREEMENT 

THIS STOCKHOLDER SUPPORT AGREEMENT (this “Agreement”) is made and entered into as of [●], 2020, by and among
Adgero Biopharmaceuticals Holdings, Inc., a Delaware corporation (the “Company”), and each of the undersigned stockholders (each, a “Holder”) of DelMar Pharmaceuticals, Inc., a Nevada corporation (the
“Parent”). 
 RECITALS 

Pursuant to an Agreement and Plan of Merger and Reorganization, dated as of the date hereof (the “Merger Agreement”), by and
among the Company, Parent, and Adgero Acquisition Corp., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”), Merger Sub is merging with and into the Company (the
“Merger”) and the Company, as the surviving corporation of the Merger, will thereby become a wholly-owned subsidiary of Parent. Concurrently with the execution and delivery of the Merger
Agreement and as a condition and inducement to the Company to enter into the Merger Agreement, the Company has required that Holder enter into this Agreement. Holder is the beneficial owner (within the meaning of Rule
13d-3 of the Exchange Act) of such number of shares of the outstanding common stock, par value $0.001 per share, of Parent as is indicated beneath Holder’s signature on the last page of this Agreement
(the “Shares”). 
 Capitalized terms used herein but not defined shall have the meanings ascribed to them in the Merger
Agreement. 
 AGREEMENT 

The parties agree as follows: 

1. Agreement to Retain Shares. 

(a) Transfer. During the period beginning on the date hereof and ending on the earlier to occur of (i) the Effective Time and
(ii) the termination of the Merger Agreement in accordance with the terms and provisions thereof (the “Expiration Date”), (1) except as contemplated by the Merger Agreement, and except as provided in
Section 1(b), Holder agrees not to, directly or indirectly, sell, transfer, exchange or otherwise dispose of (including by merger, consolidation or otherwise by operation of law) the Shares or any New Shares (as defined
below), and (2) Holder agrees not to, directly or indirectly, grant any proxies or powers of attorney, deposit any of the Shares into a voting trust or enter into a voting agreement with respect to any of the Shares, or enter into any agreement
or arrangement providing for any of the actions described in this clause (2) (other than as required to comply with Section 2(a)). 

(b) Permitted Transfers. Section 1(a) shall not prohibit a transfer of Shares or New Shares by Holder
(i) to any family member or trust for the benefit of any family member, (ii) to any stockholder, member or partner of any Holder which is an entity, (iii) to any Affiliate of Holder, or (iv) to any person or entity if and to the
extent required by any non-consensual Order, by divorce decree or by will, intestacy or other similar applicable Law, so long as the assignee or transferee agrees to be bound by the terms of this Agreement and
executes and delivers to the parties hereto a written consent and joinder memorializing such agreement. During the term of this Agreement, Parent will not register or otherwise recognize the transfer (book-entry or otherwise) of any Shares or any
certificate or uncertificated interest representing any of Holder’s Shares, except as permitted by, and in accordance with, this Section 1(b). 

 (c) New Shares. Holder agrees that any shares of common stock of Parent that Holder
purchases or with respect to which Holder otherwise acquires record or beneficial ownership after the date of this Agreement and prior to the earlier to occur of (i) the Effective Time and (ii) the Expiration Date (“New
Shares”) shall be subject to the terms and conditions of this Agreement to the same extent as if they comprised the Shares. 
 2.
Agreement to Vote Shares. 
 (a) Until the earlier to occur of the Effective Time and the Expiration Date, at every meeting of the
stockholders of Parent called with respect to any of the following, and at every adjournment thereof, and on every action or approval by written consent of the stockholders of Parent with respect to any of the following, Holder shall appear at such
meeting (in person or by proxy) and shall vote or consent the Shares and any New Shares (i) in favor of the adoption of the Parent Stockholder Matters and (ii) against any Acquisition Proposal (the “Covered Proposal”).
This Agreement is intended to bind Holder as a stockholder of Parent and only with respect to the Covered Proposal. Except as expressly set forth in clauses (i) and (ii) of this Section 2, Holder shall not be
restricted from voting in favor of, against or abstaining with respect to any other matter presented to the stockholders of Parent. Until the earlier to occur of the Effective Time and the Expiration Date, Holder covenants and agrees not to enter
into any agreement or understanding with any Person with respect to voting of its Shares on any Covered Proposal which conflicts with the terms of this Agreement. 

(b) Holder further agrees that, until the earlier to occur of the Effective Time and the Expiration Date, Holder will not, and will not permit
any entity under Holder’s control to, (A) solicit proxies or become a “participant” in a “solicitation” (as such terms are defined in Rule 14A under the Exchange Act) in opposition to the Covered Proposal,
(B) initiate a stockholders’ vote with respect to an Acquisition Proposal, (C) become a member of a “group” (as such term is used in Section 13(d) of the Exchange Act) with respect to any voting securities of Parent
with respect to an Acquisition Proposal, or (D) take any action that Parent is prohibited from taking pursuant to Section 4.4 of the Merger Agreement. 

3. Representations, Warranties and Covenants of Holder. Holder hereby represents and warrants to the Company that (i) Holder is
the beneficial owner of the Shares, which, at the date of this Agreement and at all times up until the earlier to occur of (A) the Effective Time and (B) the Expiration Date, will be free and clear of any Liens or other encumbrances (other
than those created by this Agreement or applicable Law), (ii) as of the date hereof, Holder does not own of record or beneficially any shares of outstanding capital stock of Parent other than the Shares (excluding shares as to which Holder currently
disclaims beneficial ownership in accordance with applicable Law), (iii) Holder has the legal capacity, power and authority to enter into and perform all of Holder’s obligations under this Agreement and (iv) this Agreement has been duly
and validly executed and delivered by Holder and constitutes a valid and binding agreement of Holder, enforceable against Holder in accordance with its terms, subject to (a) laws of general application relating to bankruptcy, insolvency and the
relief of debtors and (b) rules of law governing specific performance, injunctive relief and other equitable remedies. 

  
 -2- 

 4. Termination. This Agreement shall terminate automatically and shall have no
further force and effect as of the earlier of the Effective Time and the Expiration Date. 
 5. Fiduciary Duties. Notwithstanding
anything in this Agreement to the contrary: (i) Holder makes no agreement or understanding herein in any capacity other than solely in Holder’s capacity as a beneficial owner of the Shares and (ii) nothing in this Agreement shall be
construed to limit or affect Holder, or any Affiliate or designee of Holder, in any other capacity (including as an officer of Parent or as a member of the Parent Board in acting in his or her capacity as an officer or director of Parent) or in
exercising his or her fiduciary duties and responsibilities as an officer of Parent or as a member of the Parent Board. 
 6.
Miscellaneous. 
 (a) Amendments and Waivers. Any term of this Agreement may be amended or waived with the written consent of
the parties hereto or their respective successors and assigns. Any amendment or waiver effected in accordance with this Section 6(a) shall be binding upon the parties and their respective successors and assigns. 

(b) Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to principles of conflicts of law thereof. Each of the parties hereto (i) consents to submit to the personal jurisdiction of the Court of Chancery of the State of Delaware (or, only if the Court of Chancery of the State of
Delaware declines to accept or does not have jurisdiction over a particular matter, any state or federal court within the State of Delaware) in the event any dispute arises out of this Agreement, (ii) agrees that it shall not attempt to deny or
defeat such personal jurisdiction by motion or other request for leave from any such court and (iii) agrees that it shall not bring any action relating to this Agreement in any court other than the Court of Chancery of the State of Delaware
(or, only if the Court of Chancery of the State of Delaware declines to accept or does not have jurisdiction over a particular matter, any state or federal court within the State of Delaware). 

(c) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument. 
 (d) Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement. 
 (e) Notices. Any notice required or
permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service, confirmed email or confirmed facsimile, or 72 hours after being deposited in the
regular mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party’s address, email address or facsimile number as set forth below, or as subsequently modified by written
notice. 

  
 -3- 

 (f) Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable Law, the parties agree to renegotiate such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible to that under the provision rendered unenforceable. In the event
that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision
were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms. 
 (g) No Ownership
Interest. Nothing contained in this Agreement shall be deemed to vest in the Company or any of its Affiliates any direct or indirect ownership or incidence of ownership of or with respect to any Shares or New Shares. All rights, ownership and
economic benefit of and relating to the Shares and any New Shares shall remain vested in and belong to Holder, and the Company shall have no authority to manage, direct, superintend, restrict, regulate, govern or administer any of the policies or
operations of Parent or exercise any power or authority with respect to Holder in the voting of any Shares or New Shares, except as specifically provided herein and in the Merger Agreement. 

(h) Specific Performance. Each of the parties hereto recognizes and acknowledges that a breach of any covenants or agreements contained
in this Agreement will cause the Company to sustain damages for which they would not have an adequate remedy at law for money damages, and therefore each of the parties hereto agrees that in the event of any such breach the Company shall be entitled
to the remedy of specific performance of such covenants and agreements and injunctive and other equitable relief in addition to any other remedy to which they may be entitled, at law or in equity. 

(i) Dissenters’ Rights. The Holder hereby irrevocably and unconditionally waives any dissenters’ rights, appraisal rights or
similar rights that the Holder may have arising out of the consummation of the Merger and the contemplated transactions, whether arising out of applicable law, contract or otherwise, and the Holder hereby withdraws any and all objections or any
other actions with respect to the Merger Agreement and contemplated transactions and/or demands for appraisal, if any, with respect to any shares of capital stock of the Company owned or hereinafter acquired by the Holder. 

(j) Documentation and Information. The Holder shall permit and hereby authorizes Parent to publish and disclose in all documents and
schedules filed with the SEC, and any press release or other disclosure document that Parent reasonably determines to be necessary in connection with the transactions contemplated by the Merger Agreement, the Holder’s identity and ownership of
the Shares and any New Shares the nature of the Holder’s commitments and obligations under this Agreement. 
 [SIGNATURE PAGE FOLLOWS]

  
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 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed on the
date first above written. 
  

			
	ADGERO BIOPHARMACEUTICALS HOLDINGS, INC.
		
	By:	 	
                     

	Name:	 	
	Title:	 	

  

			
	 Address:
 [●]

[●]
	 	
	Telephone:	 	[●]
	Facsimile:	 	[●]
	Email:	 	[●]
	Attention:	 	[●]

 
	
	HOLDER:
	
	  

	[●]
	
	Holder’s Address for Notice:
	
	  

	  

	  

	Email:
	Attention:

  

							
	Shares owned of record:	  	Beneficially owned shares:
				
	 Class of Shares
	  	 Number
	  	 Class of Shares
	  	 Number

	Common Stock	  		  	Common Stock	  	

  
 -6-

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