Document:

ex10-06.htm

 

Exhibit 10.06

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE. ACCORDINGLY, THESE SECURITIES MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

THIS WARRANT IS NOT TRANSFERABLE EXCEPT AS PROVIDED BELOW. THE TRANSFER OF THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF IS SUBJECT TO COMPLIANCE WITH THE CONDITIONS SPECIFIED BELOW, AND NO TRANSFER OF SUCH SHARES SHALL BE VALID UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED.

THIS WARRANT SHALL BE VOID AFTER 5:00 P.M. PACIFIC STANDARD TIME ON DECEMBER 31, 2016.

WORTHINGTON ENERGY, INC.

a Nevada corporation

COMMON STOCK PURCHASE WARRANT

	
_________ __, 2012

	
Warrant No. ______

 

This is to certify that, for value received, ______________ (the “Holder”), whose current address is ____________________, upon due exercise of this Warrant, is entitled to purchase from WORTHINGTON ENERGY, INC., a Nevada corporation (the “Company”), all or any part of _________ (______) shares (“Warrant Shares”) of fully paid and non-assessable Common Stock, $0.001 par value, of the Company
(“Common Stock”), at the purchase price per share of Fifteen Cents ($0.15) (the exercise price in effect being herein called the “Warrant Price”) at any time prior to 5:00 p.m. Pacific Standard Time on December 31, 2016 (the “Expiration Date”), all subject to the terms, conditions and adjustments as provided in this Warrant.

 

Section 1.            Registration. The Company shall maintain books for the transfer and registration of the Warrant. Upon the initial issuance of this Warrant, the Company shall issue and register the Warrant in the name of the holder.

 

Section 2.            Transfers.  This Warrant may be transferred only pursuant to a registration statement filed under the Securities Act of 1933, as amended (“Securities Act”), or an exemption from such registration.  Subject to such restrictions, the Company shall transfer this Warrant from time to time upon the books to be maintained by the Company for that purpose upon surrender
thereof for transfer properly endorsed or  accompanied by appropriate instructions for transfer and such other documents as may be reasonably required by the Company.  Such documents shall include, if required by the Company, an opinion of its counsel to the effect that such transfer is exempt from the registration requirements of the Securities Act and applicable state securities laws to establish that such transfer is being made in accordance with the terms hereof, and a new Warrant shall be issued to the transferee and the surrendered Warrant shall be canceled by the Company.

  

  

  

 

Section 3.             Exercise of Warrant.

 

        (a)      Subject to the provisions of Section 3(b) hereof, the Holder may exercise this Warrant in whole or in part at any time prior to its expiration upon surrender of the Warrant together with delivery of the duly executed Warrant Exercise Form attached hereto as Appendix A (the “Exercise Agreement”) and payment by cash, certified check, or wire transfer of funds for the aggregate Warrant Price for that number of Warrant Shares then being purchased to the Company during normal business hours on any business day at the Company’s principal
executive offices or such other office or agency of the Company as it may designate by notice to the holder hereof.

 

 (b)      Notwithstanding anything to the contrary contained herein, the Holder may elect to receive, without the payment by the Holder of the aggregate Warrant Price in respect of the Warrant Shares to be acquired upon exercise hereof, Warrant Shares equal to the value of this Warrant or any portion hereof being exercised pursuant to this Section 3(b) by the surrender of this Warrant, or such portion of this Warrant being so exercised, together with the Net Issue Election Notice annexed hereto as Appendix B duly executed, at the office of the Company to purchase the number of Warrant Shares determined pursuant
to  the formula immediately below:

X =    Y   x    (A - B)             where :

                       A

 

	
  

	
X =

	
the number of Warrant Shares to be issued to the Holder upon exercise of this Warrant pursuant to this Section 3(b);

 

	
  

	
Y =

	
the total number of shares of Common Stock covered by this Warrant which the Holder has surrendered at such time for cashless exercise, including both shares to be issued to the Holder and shares to be canceled as payment therefor;

 

	
  

	
A =

	
the Market Price of one Share as at the time the net issue election is made; and

 

	
  

	
B =

	
the Warrant Price in effect under this Warrant at the time the net issue election is made.

 

As used herein “Market Price” shall mean the closing sale price of the shares of the Company’s common stock as listed or quoted on the Trading Market on the last trading day prior to the date any determination is to be made, provided that if such stock has not  been quoted on such date in such Trading Market, the Market Price shall be the average closing price of shares of the Company’s common stock in the most recent five (5) trading days during which the shares of the Company’s common stock have been traded. Trading Market shall be the primary market
in which the shares of the Company’s common stock are traded, which may be a national securities exchange, any market conducted by the  Nasdaq Stock Market, Inc., the Over-the-Counter Bulletin Board or on the “pink sheets,” as applicable. If there is no Trading Market, then upon the failure of the parties to agree upon a price within three business days after of the exercise of the Warrants, the fair market value of a share of common stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

  

-2-

  

 

 (c)      The Warrant Shares so purchased shall be deemed to be issued to the then holder of this Warrant or such party’s designee, as the record owner of such shares, as of the close of business on the date on which (i) this Warrant shall have been surrendered (or “Loss Documentation” as defined in section 6 has been delivered), and (ii) the Warrant Price shall have been paid and the completed Exercise Agreement shall have been delivered or with respect to Section 3(b), as of the close of business on the date on which the Net Issue
Election Notice shall have been surrendered (or “Loss Documentation” has been delivered) to the Company.

 

(d)      Certificates for the Warrant Shares so purchased pursuant to exercise pursuant to, representing the aggregate number of shares specified in the Exercise Agreement, shall be delivered to the holder hereof within a reasonable time, not exceeding three business days, after this Warrant shall have been so exercised.) All Warrant Shares so issued shall be fully paid, validly issued and nonassessable. The certificates so delivered shall be in such denominations as may be requested by the holder hereof and shall be registered in the name of such holder or such other name as shall be designated by such
holder.  If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to the holder a new Warrant representing the number of shares with respect to which this Warrant shall not then have been exercised.  As used in this Agreement, “business day” means a day, other than a Saturday or Sunday, on which banks in San Francisco are open for the general transaction of business.

 

Section 4.            Compliance with the Securities Act of 1933. The Company may cause the legend set forth on the first page of this Warrant to be set forth on each Warrant or similar legend on any security issued or issuable upon exercise of this Warrant, unless counsel for the Company is of the opinion as to any such security that such legend is unnecessary.

 

Section 5.            Payment of Taxes.  The Company will pay any documentary stamp taxes attributable to the initial issuance of Warrant Shares issuable upon the exercise of the Warrant; provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificates for Warrant Shares in a name other than that of the registered holder of this Warrant in respect of which such shares are issued, and in such
case, the Company shall not be required to issue or deliver any certificate for Warrant Shares or any Warrant until the person requesting the same has paid to the Company the amount of such tax or has established to the Company’s reasonable satisfaction that such tax has been paid. The holder shall be responsible for income taxes due under federal, state or other law, if any such tax is due.

 

Section 6.            Mutilated or Missing Warrants.  In case this Warrant shall be mutilated, lost, stolen, or destroyed, the Company shall issue in exchange and substitution of and upon cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new Warrant of like tenor and for the purchase of a like number of Warrant Shares, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the Warrant, and with
respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect thereto, if requested by the Company  (“Loss Documentation”).

 

Section 7.            Reservation of Shares.  The Company hereby represents and warrants that there have been reserved, and the Company shall at all applicable times keep reserved until issued, if necessary, as contemplated by this Section 7, out of the authorized and unissued shares of Warrant Shares, sufficient shares to provide for the exercise of the rights of purchase represented by this Warrant. The Company agrees that all Warrant Shares issued upon due exercise of the Warrant shall be, at the time of
delivery of the certificates for such Warrant Shares, duly authorized, validly issued, fully paid and non-assessable shares of Common Stock of the Company.

  

-3-

  

 

Section 8.             Adjustments.  Subject and pursuant to the provisions of this Section 8, the Warrant Price and number of Warrant Shares subject to this Warrant shall be subject to adjustment from time to time as follows:

 

(a)      If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant); (ii) subdivides outstanding shares of Common Stock into a larger number of shares; (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares; or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 8 (a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

 

(b)      If, at any time while this Warrant is outstanding, the Company: (i) shall consolidate with or merge into any other person and shall not be the continuing or surviving corporation of such consolidation or merger, ;(ii) shall permit any other person to consolidate with or merge into the Company and the Company shall be the continuing or surviving person but, in connection with such consolidation or merger, the Common Stock shall be changed into or exchanged for stock or other securities or property of any other person; (c) shall transfer all or substantially all of its properties and assets to any other person;
or (d) shall effect a capital reorganization or reclassification of the Company, then, and in each such case, proper provision shall be made so that the holder of this Warrant, upon the exercise hereof at any time after the consummation of such consolidation, merger, transfer, reorganization or reclassification, shall be entitled to receive, in lieu of the Common Stock issuable upon such exercise prior to such consummation, the stock and other securities and property to which such holder would have been entitled upon such consummation if such holder had so exercised this Warrant immediately prior thereto, subject to adjustments (subsequent to such corporate action) as nearly equivalent as possible to the adjustments provided herein.

 

Section 9.             Fractional Interest.  The Company shall not be required to issue fractions of Warrant Shares upon the exercise of this Warrant. If any fractional share of Warrant Shares would, except for the provisions of the first sentence of this Section 9, be deliverable upon such exercise, the Company, in lieu of delivering such fractional share, shall pay to the exercising holder of this Warrant an amount in cash equal to the Market Value of such fractional Warrant Shares on the date of
exercise.

 

Section 10.           No Rights as Shareholder.  Prior to the exercise of this Warrant, the Holder shall not have or exercise any rights as a shareholder of the Company by virtue of its ownership of this Warrant.

 

Section 11.          Benefits.  Nothing in this Warrant shall be construed to give any person, firm, or corporation, other than the Company and the Holder, any legal or equitable right, remedy, or claim. It is acknowledged that this Warrant shall be for the sole and exclusive benefit of the Company and the Holder.

  

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Section 12.          Notices.  Unless otherwise specifically provided herein, all communications under this Warrant shall be in writing and shall be deemed to have been duly given: (a) on the date personally delivered to the party to whom notice is to be given; (b) on the day of transmission if sent by facsimile transmission to a number provided to a party specifically for such purposes and the sending party receives confirmation of the completion of such transmission; (c) on the business day after delivery to Federal
Express or similar overnight courier which utilizes a written form of receipt; or (d) on the fifth day after mailing, if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, and properly addressed, return receipt requested. All notices shall be addressed as follows: if to the Holder, at its address as set forth in the Company’s books and records; and if to the Company, at its principal executive office, Worthington Energy, Inc., 295 Highway 50, Suite 2, Stateline, NV 89449 for delivery or if mailing to P.O. Box 1148, Zephyr Cove, NV 89448-1148, or at the address of such other office of the Company as the Company shall have furnished to each holder of any Warrants in writing.

 

Section 13.           Miscellaneous

 

(a)       This Warrant and any term hereof may be changed, waived, discharged, or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

 

(b)      This Warrant shall be governed by the laws of the State of Nevada.

 

(c)      The headings in this Warrant are inserted for convenience only and shall not be deemed to constitute a part hereof.

 

(d)      The obligations of the parties are solely corporate obligations, and no officer, director, employee, agent, representative, manager, owner, or controlling person of the Company shall be subject to any personal liability to any person or other party, nor will any such claim be asserted by or on behalf of either party or affiliates of such party.

 

(e)      The parties will attempt to settle any claim or controversy arising out of this Warrant or the agreement giving rise to the obligation to deliver this Warrant through consultation and negotiation in good faith and a spirit of mutual cooperation. If these attempts fail, any dispute, controversy, or claim directly or indirectly relating to or arising out of this Agreement shall be submitted to binding arbitration in accordance with the Commercial Rules of the American Arbitration Association. In the proceeding, the arbitrator(s) shall apply Nevada substantive law applicable to contracts made by parties within
the state. Pending the hearing, the parties shall be entitled to undertake discovery proceedings, including taking of depositions and requests for document production. In no event shall either party be liable to the other, and there shall be no award under any legal or equitable theory, for special, consequential, exemplary, or punitive damages, including lost of profit, even if a party has been advised of the possibility of such damages in advance. The arbitrator(s) shall prepare an award in writing, which shall include factual findings and any legal conclusions on which the decision is based. Judgment upon any award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

 

(f)      All the provisions hereof by or for the benefit of the parties shall bind and inure to the benefit of its respective successors and assigns hereunder.

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, as of __________ __, 2012.

 

 

	  	  	
WORTHINGTON ENERGY, INC.

	
 

	  	  
	
By:________________________________

	  	  
	  	  	
Name:

	  	  	
Title:

  

-5-

  

APPENDIX A

WORTHINGTON ENERGY, INC.

 WARRANT EXERCISE FORM

To: Worthington Energy, Inc.:

 

The undersigned hereby irrevocably elects to exercise the right of purchase represented by the within Warrant (“Warrant”) for and to purchase thereunder, by the payment of the Warrant Price and surrender of the Warrant, _______________ Shares (“Warrant Shares”) as provided in the Warrant and requests that certificates for the Warrant Shares be issued as follows:

	  	
_______________________________

	  	
Name

	  	
________________________________

	  	  
	  	
Address

	  	  
	  	
________________________________

	  	  
	  	
________________________________

	  	  
	  	
________________________________

	  	
Federal Tax ID or Social Security No

 

and delivered by

	  	
q

	  	
certified mail to the above address, or

	  	
q

	  	
electronically (provide DWAC Instructions:___________________), or

	  	
q

	  	
other (specify: __________________________________________).

 

 and, if the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, that a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant be registered in the name of the undersigned Holder or the undersigned’s Assignee as below indicated and delivered to the address stated below.

 

Dated: ___________________, ____

	
Note:  The signature must correspond with the name of the registered holder as written on the first page of the 

	
Signature:___________________________________

	Warrant in every particular, without alteration or enlargement or any change whatever, unless the Warrant has been 	
____________________________________________

	assigned.	
Name (please print)

	 	
_____________________________________________

	 	
_____________________________________________

	  	
Address

	  	
______________________________

	  	
Federal Identification or SS No.

	  	  
	  	
Assignee:

	  	
_______________________________

	  	
_______________________________

	  	
_______________________________

 

  

A-1

  

APPENDIX B

WORTHINGTON ENERGY, INC.

 NET ISSUE ELECTION NOTICE

To: Worthington Energy, Inc.

Date:_________________________

The undersigned hereby elects under Section ­­­­­­­­­­­­­3 of this Warrant to surrender the right to purchase ____________  Shares pursuant to this Warrant and hereby requests the issuance of _____________  Shares. The certificate(s) for the Shares issuable upon such net issue election shall be issued in the name of the undersigned or as otherwise indicated below.

	  	  	
_________________________________________

	  	  	
Signature

	  	  	  
	  	  	
_________________________________________

	  	  	
Name for Registration

	  	  	  
	  	  	
_________________________________________

	  	  	
Mailing Address

B-1ex10-07.htm

 

Exhibit 10.07

Worthington Energy, Inc.

 

FIRST AMENDMENT TO

PURCHASE AND SALE AGREEMENT

FOR OIL & GAS PROPERTIES AND

RELATED ASSETS

 

This First Amendment is entered into as of March 5, 2012 by and between Worthington Energy, Inc., a Nevada corporation (“Buyer”), and Black Cat Exploration & Production, LLC, a Texas limited liability company (“Seller”), to amend that certain Purchase and Sale Agreement for Oil & Gas Properties and Related Assets between Buyer and Seller dated as of November 14, 2011 (the “Agreement”). Certain matters herein shall relate back and are agreed to be effective as of December 15, 2011 (the
“First Amendment”).

 

RECITALS

 

A.      Pending Closing of the Agreement, Buyer has become aware of certain defects in Marketable Title that need to be corrected.

 

B.      The parties mutually agreed that the date of Closing under the Agreement should be extended to deal with these issues and hereby agree that certain other provisions of the Agreement need to be amended, modified, and supplemented.

 

C.       Buyer owns a wholly-owned subsidiary PaxAcq, Inc., a Louisiana corporation (“PaxAcq”). Buyer shall have the right to have PaxAcq acquire title to the Properties and in such case, Buyer and PaxAcq shall jointly execute all documents to be delivered at Closing.

 

For valuable consideration, the parties amend and supplement the Agreement as follows:

 

Paragraph 2, Purchase Price, is amended to read as follows:

 

A.       Seller has cleared the title defects and encumbrances.

 

B.       Following the signing of this First Amendment, Buyer will fund the Jones Walker escrow account with an amount of Two Hundred Thousand Dollars ($250,000), for purposes of providing the funds required to close the transaction as described herein (“Buyer Financing”).

 

C.       If by March 7, 2012, Seller provides evidence to Buyer and Buyer’s outside counsel and that: (i) all title defects and encumbrancess have been removed and or will be removed at the Closing; and (ii) Seller will be able to transfer and assign to Buyer Marketable Title to the Properties at the Closing, the transaction shall close as soon thereafter as is commercially reasonable.

 

D.       At the Closing, Buyer shall pay the Purchase Price as follows:

 

a.      To an account to be designated by Silvemere Energy PLC (“Silvermere”), in cash or immediately available funds, the cash sum of One Hundred Seventy-Five Thousand Dollars ($175,000); The amount so paid shall be credited toward payment of the Purchase Price hereunder;

 

b.      Buyer shall deliver to Seller a Junior Secured Promissory Note (“Seller Note”) in the amount of One Million Seventy-Five Thousand Dollars ($1,075,000), with One Hunderd Thousand dollars being due May 31, 2012 and the balance being due at the later  of: (i) ninety (90) days from the date of Closing; or (ii) thirty (30) days after production commences on the I-10 Mustang Island Well in Kleberg County, Texas (the “Mustang Island Well”). The Seller Note shall be in a form provided by Buyer and shall be
secured by a deed of trust covering the Properties (the “Seller DOT”), which Seller DOT shall be junior to the deed of trust securing the Buyer Financing described in Amended Paragraph 10 i below. All documents shall be subject to the reasonable approval, in form and substance, of counsel for Seller; and

  

  

  

 

c.      The balance of the Purchase Price shall be evidenced by and paid through the issuance to Seller of a total of Forty-Five Million (45,000,000) shares of common stock of Buyer, par value $0.001 per share, without registration or rights thereto and therefore restricted from resale under applicable securities laws (the “Shares”). Half of the Shares (or 22,5000,000 shares) shall be issued to Seller  at Closing and the remaining half (the remaining 22,50 0,000 shares) shall be delivered to Seller when the Mustang Island Well commences production Seller shall sign, as a condition to the
issuance of the Shares, an investment representation letter in the standard form used and prepared by Sichenzia Ross Friedman Ference LLP, 61 Boradway, 32nd Floor, New York, New York 10006 (“SRFF”). The Shares shall contain the standard restricted shares legend as required by SRFF.

 

Paragraph 3, Closing, is amended so that the first paragraph now reads:

 

The Closing shall take place at such location or locations as Buyer and Seller shall mutually agree.

 

Paragraph 3 i and Paragraph 3 (3) relating to the Employment Agreement with Anthony Mason and his appointment to the board of directors are deleted. The provisions of Amended Paragraph 12 below shall apply with respect to such matters.

 

Except as so amended, the remaining provisions of Paragraph 3, including all of the documents to be delivered to the respective parties, are confirmed and remain in effect.

 

Paragraph 4, Conveyance Effective Date, Proration of Production Expenses, is amended so that the first sentence now reads:

 

The conveyance by Seller shall be effective as of the date of Closing described in Amended Paragraph 3 above, or such other time and date as may be agreed upon by the parties (the “Effective Date”).

 

Except as so amended, the remaining provisions of Paragraph 4 are confirmed and remain in effect.

 

Paragraph 7, Representations and Warranties of Seller, is amended and supplemented to add at the end of paragraph a new subparagraph 7 t as follows:

 

t.        During the period from the date of this First Amendment and the date of Closing, Seller shall take steps necessary to remove the encumbrances that are not Permitted Encumbrances so that at the Closing Buyer shall be granted Marketable Title to the Properties.

  

  

  

 

Except as so amended and supplemented, the provisions of Paragraph 7 as set forth in the Agreement are confirmed and remain in effect.

 

Paragraph 9, Title and Other Examinations and Curative, is amended and supplemented as follows:

 

a.       The term of the options on Oceana and Song, described in Exhibit B, have lapsed without exercise. Exhibit B attached to the Agreement is hereby deleted.

 

Except as so amended and supplemented, the provisions of Paragraph 9 as set forth in the Agreement are confirmed and remain in effect.

 

Paragraph 10,Conditions, is amended and supplemented to add an addition condition to the Closing and the consummation of the sale and purchase under the Agreement and the First Amendment, as follows:

 

h.       All title issues shall be resolved such that, at the Closing, Marketable Title will be delivered to Buyer, including approval by Buyer and Buyer’s counsel of the documentation relating to  any title defects that may cloud or encumber the Properties.

 

i.         Buyer shall have obtained Buyer Financing in an amount  of no less than Two Hundred Fifty Thousand Dollars ($250,000).

 

Paragraph 12, Additional Requirements at the Closing, is amended and supplemented to read as follows:

 

Within 30 days following the Closing, Buyer agrees to present to the board of directors a recommendation that Buyer hire Anthony J. Mason, a principal in Seller, under an employment agreement, as described in paragraph 12 of the Agreement (before its amendment under this paragraph) and that Anthony Mason be appointed to the board of directors of Buyer.

 

Paragraph 18, Complete Agreement, is amended and supplemented to replace Paragraph 18 in the Agreement with the following provisions:

 

a. To cover the period between the Closing and the Board’s retention of Anthony Mason as provided in Paragraph 12 above, Buyer and Anthony Masonhave entered into a Consulting Agreement wherein Anthony Mason will provide Buyer with consulting services regarding other properties and assets being acquired and developed by Buyer and in connection with financing initiatives being undertaken by Buyer.  b. This Agreement and the First Amendment constitute the complete agreement between the parties regarding the purchase and sale of the Properties. The provisions of Paragraphs 6, 7, and 8, as amended herein, shall survive the Closing.

 

Exhibit A, Mustang Island, is hereby amended and superseded by Exhibit A attached to this First Amendment.

 

Except as amended and supplemented by this First Amendment, the provisions set forth in the Agreement are confirmed and remain in effect.

  

  

  

 

This First Amendment may be executed in counterpart originals, each of which together shall constitute one binding agreement. An executed signature page sent by fax or in PDF format shall be deemed executed by such party and may be relied upon by the receiving party and by third parties with the same effect as if a complete originally executed document were delivered and received.

 

	  	  	  
	  	  	
Seller:

	  	  	  
	  	  	
Black Cat Exploration & Production, LLC

	  	  	
a Texas Limited Liability Company

	  	  	  
	  	  	  
	  	  	
By_____________________________________

	  	  	
Anthony J. Mason, President

	  	  	  
	  	  	
Buyer:

	  	  	  
	  	  	
Worthington Energy, Inc.

	  	  	
a Nevada Corporation

	  	  	  
	  	  	  
	  	  	
By ____________________________________

	  	  	
Charles F. Volk, CEO

	  	  	  
	  	  	  
	 	  	  

Amended Exhibit A Attached:  Mustang Island

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