Document:

Exhibit 10.3

 

NOTICE OF ONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REDMOVE OR STRIKE ANY OF THE FOLOWING INFOMROATION FROM THIS INSTRUMENT BEFOFE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YUOUR SOCIAL SECURITY NUMBRE OF YOUR DRIVER’S LIICENSE NUMBER

 

ASSIGNMENT, BILL OF SALE, AND CONVEYANCE

 

	
THE   STATE OF TEXAS
    	
§
    	
 
    
	
 
    	
§
    	
 
    
	
COUNTY   OF HARDIN
    	
§
    	
 
    

 

THIS ASSIGNMENT, BILL OF SALE, AND CONVEYANCE (“Assignment”) is

 

	
From:
    	
C.F.O., Inc.
    	
(“Assignor”)
    
	
 
    	
a   Texas corporation
    	
 
    
	
 
    	
311   Riverbend Road
    	
 
    
	
 
    	
Liberty,   Liberty County, Texas 77575
    	
 
    
	
 
    	
 
    	
 
    
	
To:
    	
Vanguard Energy Corporation
    	
(“Assignee”)
    
	
 
    	
a   Colorado corporation
    	
 
    
	
 
    	
1999Avenue   of the Stars, Suite 1100
    	
 
    
	
 
    	
Los   Angeles, Los Angeles County, California 90067
    

 

Effective as of 12:01 a.m. local time in Hardin County, Texas, on December 1, 2010 (the “Effective Date and Time”), notwithstanding the date of execution hereof, Assignor, for and in consideration of $10.00 and other good and valuable consideration, the receipt and sufficiency of which are acknowledged and confessed by Assignor, does hereby SELL, ASSIGN, CONVEY, TRANSFER, SET OVER and DELIVER, without warranties or covenants of title, express or implied, and subject to the exceptions and reservations herein made, unto Assignee and Assignee’s successors in title and assigns, the following properties and rights:

 

An undivided 90% of Assignor’s right, title and interest in or to the following oil, gas and mineral leases, to wit:

 

Oil and gas lease, dated July 21, 1954 from Gulf Oil Corporation, as lessor, to Roy Pickering, as lessee, recorded in Volume 300, Pages 585, et seq., of the Deed Records of Hardin County, Texas, covering 10 acres, more or less, out of the Champion Choate Survey, A-153, as more particularly described in said lease.

 

Oil and Gas Lease, dated June 30, 1954, from Charles G. Hooks, et al., as lessor to W. F. Newton, as lessee, recorded, recorded in Volume 300, Pages 597, et seq., of the Deed 

 

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Records of Hardin County, Texas, covering 10 acres, more or less, out of the Champion Choate Survey, A-153, as more particularly described in said lease.

 

Oil and Gas Lease, dated June 22, 1954, from Paraffine Oil Corporation, as lessor, to Roy Pickering, as lessee, recorded in Volume 300, Page 591, et seq. of the Deed Records of Hardin County, Texas more or less, out of the Champion Choate Survey, A-153, as more particularly described in said lease.

 

The foregoing being collectively referred to herein as the “Leases,” and the lands covered by the Leases, all of which are located in the state and county above named, are referred to herein as the “Land;”

 

A like undivided interest of Assignor in, to or under or by virtue of the presently existing and valid unitization, communitization and pooling agreements and the properties covered and the units and pooled and communitized areas created thereby (including, but not limited to, all units formed under orders, regulations, rules or other official acts of any federal, state or other governmental agency), insofar and only insofar as such agreements, properties and units relate to the Leases;

 

A like undivided interest of Assignor in or to all improvements, easements, surface leases, permits, rights-of-way, licenses, servitudes and other similar interests necessary or useful to or used in connection with the exploration, development or operation of the Leases or the Land (all such improvements, easements, surface leases, permits, rights-of-way, licenses, servitudes and other similar interests, subject to the Existing Burdens (as hereinafter defined), are referred to as the “Easements”);

 

A like undivided interest of Assignor in or to all rights, duties and obligations attributable to or arising from any valid oil, casinghead gas and gas sales, purchase, exchange and processing contracts and agreements, insofar and only insofar as the same are appurtenant or relate to the Leases or production therefrom or attributable thereto (all such rights, duties and obligations are referred to in this Assignment as the “Contract Rights”); and

 

A like undivided interest of Assignor in or to all claims, suits, proceedings or choses in action, arising from or relating to any of the undivided interests assigned in paragraphs (1) through (4) above (all such claims, suits, proceedings or choses in action are referred to in this Assignment as the “Claims”).

 

This Assignment from Assignor to Assignee is expressly made subject to:

 

(G)           a proportionate part of the covenants, provisions, royalties and terms of the Leases;

 

Page A-1

 

(H)          the terms and conditions of all existing orders, rules and regulations and ordinances of federal, state and other governmental agencies having jurisdiction;

 

(I)            any valid and subsisting oil, casinghead gas and gas sales, purchase, exchange and processing contracts and agreements, insofar and only insofar as the same are appurtenant or relate to the Leases;

 

(J)            a proportionate part of all overriding royalty interests, restrictions, exceptions, reservations, burdens, encumbrances, conditions, limitations, interests, instruments, agreements and other matters, if any, which are of record in the state and county above named and which burden or affect the properties, rights or interests herein assigned;

 

(K)          the terms and conditions contained in the joint operating agreement or agreements, if any, which covers and affects the Leases and the Land and any other existing or executory farmout agreements, farmin agreements, letter agreements, contracts or other agreements which relate to any of the properties, lands or interests described above; and

 

(L)           all of such orders, rules, regulations, ordinances, instruments, burdens, encumbrances, reservations and terms and conditions listed in clauses (A) through (E) of this Assignment, to the extent the same are valid and enforceable and apply to the lands and interests described above are referred to in this Assignment as “Existing Burdens;” and the properties specified in clauses (1) and (2) of this Assignment, subject to the Existing Burdens, are referred to in this Assignment as the “Subject Interests.”

 

TO HAVE AND TO HOLD, all and singular, the Subject Interests, the Easements, the Contract Rights and the Claims unto Assignee and Assignee’s successors in title and assigns, forever. This Assignment is made without warranties or covenants of title of any kind, express or implied.

 

All of the terms, provisions, covenants and agreements herein contained shall extend to and be binding upon the parties hereto, and their respective successors in title and assigns.

 

Assignor agrees to execute, to acknowledge and to deliver to Assignee any additional instruments, notices, division orders, transfer orders and other documents and to do any other acts and things which may be necessary to more fully and effectively assign and convey to Assignee and Assignee’s successors in title and assigns the interests intended to be assigned hereby.

 

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IN WITNESS WHEREOF, Assignor and Assignee have executed this Corrective Assignment on the respective dates of the acknowledgments annexed hereto, but effective as of the Effective Date and Time.

 

	
 
    	
SIDEKICK   XPLORATION, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel W. Streets
    
	
 
    	
 
    	
Daniel   W. Streets
    
	
 
    	
 
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SIDEKICK   XPLORATION, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Delton Drum
    
	
 
    	
 
    	
Delton   Drum
    
	
 
    	
 
    	
President
    

 

	
STATE   OF COLORADO
    	
§
    
	
 
    	
§
    
	
COUNTY   OF ARAPAHOE
    	
§
    

 

This instrument was acknowledged before me on this 13th day of December, 2010, by Daniel W. Streets, Manager of SideKick Xploration, LLC, a Colorado limited liability company, on behalf of said company.

 

 

	
 
    	
 
    
	
 
    	
Notary Public in and for
    
	
 
    	
the State of Texas
    

 

My Commission Expires: 9-15-2003

 

Vanguard CFO Gulf Lease Assign 1-27-11

 

Page A-1Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into and made effective on May 1, 2011, by and between Warren M. Dillard (hereinafter “Employee”) and Vanguard Energy Corporation, a Colorado corporation (hereinafter the “Company”).

 

The parties hereto agree as follows:

 

1.             EMPLOYMENT

 

Subject to the terms and conditions of this Agreement, the Company hereby employs the Employee as its President and its Chief Executive, Financial and Accounting Officer. The Employee hereby accepts such employment, upon the terms and conditions hereinafter set forth. Employee will devote a minimum of 40 hours each week to the business of the Company.  It is understood that the Employee has been, and will continue to be, engaged in other business activities.

 

The Employee shall, diligently devote the Employee’s time and efforts to the business and affairs of the Company and subsidiaries.  The Employee will be subject to the authority and directions of the Company’s Board of Directors.

 

2.             COMPENSATION

 

The Employee shall be paid a monthly salary of $12,500, net cash to Employee. The Company will either pay directly or reimburse the Employee for all federal and state income taxes and other income related taxes including, but not limited to FICA and FUTA taxes. The Employee shall be entitled to receive proper reimbursement for all reasonable, out-of-pocket expenses incurred directly by the Employee (in accordance with the policies and procedures established by the Company for its Employee officers).

 

3.             NON-DISCLOSURE OF CONFIDENTIAL INFORMATION, NON-COMPETE.

 

a.             Employee acknowledges that the Company’s trade secrets, private or secret processes, as they exist from time to time, business records and plans, inventions, acquisition strategy, computer programs and listings, source code and/or subject code, proprietary information, procedures, methods of operating the Company’s business, practices, plans and information pertaining to the Company’s properties, and other information of a confidential nature not known publicly (collectively, the “Confidential Information”) are valuable, special and unique assets of the Company, access to and knowledge of which have been gained by the Employee by virtue of Employee’s association with the Company.  In light of the highly competitive nature of the industry in which the Company’s business is conducted, Employee agrees that all Confidential Information, heretofore or in the future obtained by Employee as a result of Employee’s association with the Company, shall be considered confidential.

 

b.             The Employee agrees that he shall:

 

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1.     hold in confidence and not disclose or make available to any third party any such Confidential Information obtained directly or constructively from the Company, unless so authorized in writing by the Company;

 

2.     exercise all reasonable efforts to prevent third parties from gaining access to the Confidential Information;

 

3.     take such protective measures as may be reasonably necessary to preserve the confidentiality of the Confidential Information.

 

c.             Excluded from the Confidential Information, and therefore not subject to the provisions of this Agreement, shall be any information which the Employee can show:

 

1.     at the time of disclosure, is in the public domain; or

 

2.     after the disclosure, enters the public domain by way of printed publication through no fault of the Employee; or

 

3.     was in his possession at the time of disclosure and which was not acquired directly or indirectly from the Company; or

 

4.     was acquired, after disclosure, from a third party who did not receive it from the Company, and who had the right to disclose the information without any obligation to hold such information confidential.

 

d.             Upon written request of the Company, Employee shall return to the Company all materials, in whatever form, containing Confidential Information.

 

4.             INDEMNIFICATION

 

Each party hereby agrees to indemnify, defend, and hold harmless the other party, its members, agents, employees, officers and directors from and against any and all damages, losses, liability, suits, actions, demands, penalties, proceedings (whether legal or administrative) and expenses including, but not limited to attorney’s fees) arising directly or indirectly, out of any action or failure to act, any breach of this Agreement, misrepresentation or misconduct by either party, its employees, and agents.

 

5.             TERM

 

The term of this Agreement shall commence upon the date as hereinabove provided, and continue until cancelled by ten days written notice by either party. Upon the termination of this Agreement, all amounts due to Employee pursuant to Section 2 of this Agreement will be paid in full.

 

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6.             NOTICE

 

Any notice, request, demand or other communications which one party under this Agreement desires or is required to delivery to the other party, shall be in writing and delivered by way of facsimile transmission to the fax number of the recipient.  Notice is effective upon receipt, provided that a duplicate copy of the notice is promptly given by first-class or certified mail or by overnight delivery.  Any notice given by fax shall be deemed received on the next business day if its is received after 5:00 p.m. (recipient’s time) or on a non-business day.  Any party may change its address or fax number by giving the other party notice of the change in any manner permitted by this Agreement.

 

	
 
    	
If to Employee:
    	
 
    	
If to Company:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Warren   M. Dillard
    	
 
    	
Vanguard   Energy Corporation
    
	
 
    	
1999   Avenue of the Stars, #1100
    	
 
    	
1999   Avenue of the Stars, #1100
    
	
 
    	
Los   Angeles, CA 90067
    	
 
    	
Los   Angeles, CA 90067
    
	
 
    	
Fax:   (310) 525-3511
    	
 
    	
Fax:   (310) 525-3511
    

 

7.             ARBITRATION AND ATTORNEYS’ FEES

 

Any dispute, claim or controversy arising out of or relating to this letter Agreement, including the breach, termination, enforcement, interpretation or validity thereof, and the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by final, binding arbitration in Los Angeles, California, before a sole arbitrator, in accordance with the laws of the State of California.  The arbitration shall be administered by American Arbitration Association (“AAA”) pursuant to AAA’s Arbitration Rules and Procedures, or by some other comparable private arbitration service if AAA does not exist or is not otherwise able, and judgment on the Award may be entered in any court having jurisdiction.  The prevailing party in any dispute shall be entitled to recover reasonable attorneys’ fees and costs.

 

8.             GENERAL

 

a.             Neither this Agreement nor any rights hereunder shall be assignable by either party hereto without the express written consent of the other party.

 

b.             No modification of this Agreement shall be effective unless it is in writing and signed by both parties hereto.

 

c.             If any provision of this Agreement shall be held to be invalid under any state or federal law, it shall be interpreted if possible to conform to such law, or if not possible, it shall be deemed deleted and the remaining provisions shall continue in full force and effect.

 

d.             Any of the terms or conditions of this Agreement may be waived by either party, but no such waiver shall affect or impair the rights of such party to require observance, performance, or satisfaction, either of that term or condition as it applies on a subsequent occasion or of any other term or condition of this Agreement.

 

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e.             This Agreement contains the entire agreement of the parties and supersedes any  other negotiations, discussions and agreements.

 

f.              Sections 3, 4, and 7 will survive the termination of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first listed hereinabove.

 

 

	
EMPLOYEE:
    	
 
    	
VANGUARD   ENERGY CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Warren M. Dillard
    	
 
    	
By:
    	
/s/   R. Gerald Bailey
    
	
 
    	
Warren   M. Dillard
    	
 
    	
 
    	
R.   Gerald Bailey, Chairman
    

 

Vanguard Employ Agree re Dillard 4-28-11

 

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