Document:

ex10x6.htm

 

Exhibit 10.6

 

 

SETTLEMENT AGREEMENT AND

MUTUAL GENERAL RELEASE

 

This Settlement Agreement and Mutual General Release (hereinafter, this “Agreement”) is made and entered into as of the 5th day of May 2014, by and between Rancher Energy Corp., a Nevada corporation (“Rancher”) and PetroShare Corp., a Colorado corporation (“PetroShare”). Rancher and PetroShare are referred to jointly herein as the “Parties” and individually as a “Party.”

 

RECITALS

 

A.                   On or about September 12, 2013, Rancher and PetroShare entered into a non-binding letter of intent by which the Parties expressed their intent to negotiate and pursue a business combination (the “LOI”). On October 3, 2013 (effective September 30, 2013), Rancher executed a Participation Agreement (the “Participation Agreement”) and Operating Agreement on Model Form 610 (“JOA”) with PetroShare for the purposes of drilling at least one and up to two oil and/or gas wells in Moffatt County, Colorado on prospect known as the “Buck Peak” prospect (“Prospect”). On October 7, 2013, Rancher paid 30% of a portion of the costs of drilling two wells on the Prospect in exchange for an interest in the wells and associated oil and gas interests, production and other assets described in the JOA (the “Oil and Gas Interests), subject to a reduction of the working interest (and a proportional reduction of the net revenue interest) if Rancher and PetroShare did not complete a business combination;

 

B.                    On or about March 10, 2014, PetroShare notified Rancher of Rancher’s alleged default under the JOA for failure to pay Rancher’s share of drilling and completion costs of the two wells. On or about March 12, 2014, PetroShare notified Rancher in writing that PetroShare thereby terminated the LOI and all negotiations for the proposed business combination with Rancher;

 

C.                    On or about March 14, 2014, Rancher (through its counsel) notified PetroShare (through its counsel) of certain allegations by Rancher against PetroShare as described therein;

 

D.                   This situation has given rise to certain disputes and differences and may give rise to other disputes and differences, whether foreseen or unforeseen (collectively referred to herein as the “Disputes”) between the Parties;

 

E.                    Pursuant to the terms and conditions set forth in this Agreement, the Parties desire, without admitting any fault or liability, to terminate the Participation Agreement and the JOA and to settle completely and for all time any and all disputes or differences between them regarding any matters, including (but without limitation) those which arose from or were related to or which may arise in the future from or which may in the future be related to the Disputes, and the circumstances and relationships attendant thereto; and

 

NOW THEREFORE, in consideration of the following covenants and promises and for other valuable consideration, this Agreement is entered into by the Parties.

 

 

Page 1 of 8

 

AGREEMENT

 

	  	
1.

	
Simultaneously with the execution of this Agreement, PetroShare shall pay to Rancher the sum of One Hundred Thousand Dollars and 00/100 ($100,000.00) which amount shall be non-refundable (the “Non-Refundable Payment”). To complete the transactions contemplated hereunder, PetroShare shall pay to Rancher One Million, Forty-Two Thousand, Two Hundred Thirty-Seven Dollars and 00/100 ($1,042,237.00; hereinafter referred to as the “Final Payment” and, together with the Non-Refundable Payment, the “Settlement Funds”). In both cases, the Non-Refundable Payment and the Final Payment will be in United States currency in immediately available funds by wire transfer to Rancher’s attorney’s trust account. The Final Payment will be made on or before June 16, 2014.

 

	  	
2.

	
[Intentionally omitted.]

 

	  	
3.

	
Upon the receipt of the Final Payment, Rancher’s working interest in the Oil and Gas Interests shall be reduced to 0.00%.

 

	  	
4.

	
Notwithstanding anything in this Agreement to the contrary, PetroShare agrees that it shall not seek any damages or other monetary liability from or against Rancher or any Rancher Releasee (hereinafter defined) arising from the Participation Agreement or the JOA once the final payment has been made.

 

	  	
5.

	
Upon PetroShare’s performance of its obligations under or arising from this Agreement (including, without limitation, payment in full of the Settlement Funds), the Parties agree that the Participation Agreement shall be terminated effective with the date of this Final Payment and that Rancher, upon receipt of the Final Payment, waives any rights that it may have under the JOA.

 

	  	
6.              

	
(a)          Rancher, for itself, its directors, officers, shareholders, attorneys, accountants, agents, consultants, affiliates, heirs, successors, assigns, family members and related entities (the “Rancher Releasors”), shall and hereby does release, acquit, and forever discharge PetroShare, its directors, officers, shareholders, attorneys, accountants, agents, consultants, affiliates, heirs, successors and assigns, family members and related entities (the “PetroShare Releasees”), of and from any and all obligations or liability which Rancher or any Rancher Releasor now has, has had, or may have, and from all claims, demands, liens, actions, administrative proceedings, and causes of action, and from all damages, injuries, losses, contributions, indemnities, compensation, costs, attorney’s fees and expenses of every kind and nature whatsoever, whether known or unknown, fixed or contingent, whether in law or in equity, whether asserted or unasserted, whether sounding in tort or in contract, from the beginning of the world to the date of this Agreement, including those related to, arising from, or which may in the future arise from, the Disputes (which term, includes any disputes under the LOI, the Participation Agreement and the JOA), except for the obligations contained in this Agreement.

 

 

Page 2 of 8

 

	 	
 

	
(b)         Rancher, on behalf of itself and the other Rancher Releasors, agrees not to initiate or maintain any claim, suit or cause of action, of any kind whatsoever, in or by way of any legal proceedings or otherwise, against any of the PetroShare Releasees based on any obligation or liability arising directly or indirectly out of, or relating in any way to the Disputes. Rancher will defend and hold PetroShare and each other PetroShare Releasee harmless from all costs, damages, and liabilities (including without limitation payment to or for the benefit of PetroShare and each PetroShare Releasee all of its attorneys’ fees incurred in defending such action) should any person included within the definition of “Rancher Releasors” threaten or bring any action against PetroShare or any PetroShare Releasee.

 

	  	
7.              

	
(a)          PetroShare, for itself, its directors, officers, shareholders, attorneys, accountants, agents, consultants, affiliates, heirs, successors and assigns, family members and related entities (the “PetroShare Releasors”), shall and hereby does release, acquit, and forever discharge Rancher, its directors, officers, shareholders, attorneys, accountants, agents, consultants, affiliates, heirs, successors and assigns, family members and related entities (the “Rancher Releasees”), of and from any and all obligations or liability which PetroShare or any PetroShare Releasor now has, has had, or may have, and from all claims, demands, liens, actions, administrative proceedings, and causes of action, and from all damages, injuries, losses, contributions, indemnities, compensation, costs, attorney’s fees and expenses of every kind and nature whatsoever, whether known or unknown, fixed or contingent, whether in law or in equity, whether asserted or unasserted, whether sounding in tort or in contract, from the beginning of the world to the date of this Agreement, including those related to, arising from, or which may in the future arise from, the Disputes (which term includes any disputes under the LOI, the Participation Agreement and the JOA for which any Rancher Releasee may have personal liability), except for: (i) the obligations contained in this Agreement and (ii) claims that may be made in a JOA Enforcement Action as defined in and to the extent set forth in Paragraph 7(b) hereof.

 

	  	 	
(b)           PetroShare, on behalf of itself and the other PetroShare Releasors and on behalf of each other party to the JOA agrees not to initiate or maintain any claim, suit or cause of action, of any kind whatsoever, in or by way of any legal proceedings or otherwise, against any of the Rancher Releasees based on any obligation or liability arising directly or indirectly out of, or relating in any way to the subject matter of the Disputes except that on or after the later of (i) June 16, 2014 or (ii) such later date as the Parties may mutually agree within which the Settlement Funds may be paid, PetroShare may enforce any rights it may have under the Participation Agreement or the JOA to terminate Rancher’s rights and property interests thereunder (the “JOA Enforcement Action”), and Rancher agrees not to defend any such JOA Enforcement Action. Except with respect to the JOA Enforcement Action, PetroShare will defend and hold Rancher and each other Rancher Releasee harmless from all costs, damages, and liabilities (including without limitation payment to or for the benefit of Rancher and each Rancher Releasee all of its attorneys’ fees incurred in defending such action) should any person included within the definition of “PetroShare Releasors” or any other party to the JOA threaten or bring any action against Rancher (except with respect to the JOA Enforcement Action and in accordance with the limitations thereto) or any Rancher Releasee.

 

 

 

Page 3 of 8

	  	
8.

	
If the Final Payment is not paid by PetroShare by the date set forth in the last sentence of paragraph 1 hereof (or such later date as may be mutually agreed by the Parties), the releases and covenants not to sue contained in paragraphs 6 and 7 (and any related references in this Agreement) shall immediately become null and void and of no further effect.

 

	  	
9.

	
The Parties warrant that they have had the opportunity to be represented by legal counsel regarding this Agreement and freely and voluntarily entered into this Agreement.

 

	  	
10.

	
This Agreement, and compliance with this Agreement, shall not be construed as an admission of liability on the part of the Parties, such liability being hereby expressly denied. The Parties’ intent in this Agreement is to resolve the Disputes and avoid any further differences or conflicts. The Parties hereby represent that they have neither filed nor caused to be filed any pending charges, suits, claims, grievances or other action (hereinafter referred to as “Claims”) which in any way arise from or relate to the Disputes. Each Party further represent to each other that such Party has not directly or indirectly assigned any claim related to the Disputes or released hereby to any other person.

 

	  	
11.

	
This Agreement and the releases contained herein, may be pleaded as a full and complete defense, counterclaim or cross-claim to, and may be used as a basis for an injunction against, any action, suit, or other proceeding which may be instituted, prosecuted or attempted in breach of this Agreement or the releases contained herein. In the event of any action by any Party hereto to enforce this Agreement, the releases contained herein, or any other agreement delivered pursuant hereto, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs.

 

	  	
12.

	
Each of the Parties shall be responsible to pay his or its respective attorneys’ fees incurred in connection with the negotiation and drafting of this Agreement. Each Party shall release and forever hold the other harmless from any liability to their attorneys for payment of such fees pursuant to any agreement or understanding between each Party and his or its attorneys.

 

	  	
13.

	
The Parties warrant to each other that in agreeing to the terms of this Agreement, they have not relied in any way upon any representations or statements of the other party regarding the subject matter hereof for the basis or effect of this Agreement other than those representations or statements contained herein. In entering into this Agreement,

 

	 	
 

	
(a)        Each Party represents that in entering into this Agreement and completing the transactions hereunder, he or it has done so after completing such investigation as he or it has determined to be necessary or appropriate in the circumstances, and after having consulted with and taken advice from such Party’s legal, financial, tax, investment, and other advisors to the extent such Party has determined such consultation to be necessary or appropriate in the circumstances;

 

 

Page 4 of 8

 

 

	  	  	
(b)          Each Party assumes the risk of any misrepresentation, concealment or mistake. If any Party should subsequently discover that any fact relied upon by he or it in entering into this Agreement was untrue, or that any fact was concealed from him or it, or that his or its understanding of the facts or of the law was incorrect, such Party shall not be entitled to any relief in connection therewith, including without limitation, any alleged right or claim to set aside or rescind this Agreement;

 

	  	  	
(c)          This Agreement is intended to be, and is, final and binding between the Parties hereto, regardless of any claims or misrepresentation, promise made without the intention of performing, concealment of fact, mistake of fact or law, or any other circumstance whatsoever; and

	

	
 

	  	  	
(d)          Each of the Parties represents that this Agreement and all of its terms and conditions have been authorized and approved by all necessary corporate action and that the Agreement has been duly authorized, executed and delivered by such Party.

 

	  	
14.

	
This Agreement shall be governed by the laws of Colorado. Each of the Parties consents to the jurisdiction of the state and federal courts whose districts encompass any part of the County of Arapahoe, Colorado, in connection with any dispute arising under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens, to the bringing of any such proceeding in such jurisdictions.

 

	  	
15.

	
If any part of this Agreement shall be determined to be illegal, invalid or unenforceable, the remaining part shall not be affected thereby, and the illegal, unenforceable or invalid parts shall be deemed not to be a part of this Agreement. Each Party represents and warrants that he or it has full capacity and authority to settle, compromise, and release his or its claims and to enter into this Agreement and that no other person or entity has acquired, or will in the future acquire or have any right to assert, against any person or entity released by this Agreement any portion of that Party’s claims released herein.

 

	  	
16.

	
This Agreement constitutes a single integrated contract expressing the entire agreement of the Parties with respect to the resolution of all disputes between them, including the Disputes, compromising any and all rights and obligations of the Parties, and supersedes all prior and contemporaneous oral and written agreements and discussions with respect to the Disputes. This Agreement may be amended or modified only by an agreement in writing signed by the Parties. The failure by a Party to declare a breach or otherwise to assert its rights under this Agreement shall not be construed as a waiver of any right the Party has under this Agreement.

 

	  	
17.

	
The Parties agree that this Agreement, the releases contained herein, and the agreements delivered pursuant hereto, shall remain confidential between and among the Parties except as required to be disclosed under applicable law, governmental regulation, as may be necessary to permit an accountant or other advisor to prepare tax filings or pursuant to judicial order or decree. If any inquiry is made of the Parties concerning this Agreement, the Parties may only disclose that the disputes between and among them have been resolved to the Parties’ mutual satisfaction.

 

 

Page 5 of 8

 

 

	  	
18.

	
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

	  	
19.

	
All written notices required by this Agreement or any document delivered pursuant hereto or as contemplated herein, must be delivered to the following addresses (or to such other address as may be specified by a Party) by a means evidenced by a delivery receipt and will be effective upon receipt.

 

	
If to Rancher:

	
If to PetroShare:

	
 

Jon C. Nicolaysen, President and CEO

c/o A.L. (Sid) Overton, Esq.

6950 E. Belleview Ave., Suite 202

Greenwood Village, CO 80111

 

	
 

Stephen J. Foley, CEO

PetroShare Corp.

7200 S. Alton Way, Suite B-220

Centennial, CO 80112

 

	  	
20.

	
The Parties agree that the obligations, representations and warranties contained herein shall indefinitely survive the execution of this Agreement, the delivery of all documents hereunder, and the completion of the transactions contemplated herein.

 

	  	
21.

	
It is the agreement of the Parties that all obligations of Rancher under this Agreement are subject to final receipt of the payment described in paragraph 1.

 

	  	
22.

	
The Parties agree to execute and deliver all such other and further agreements, certificates, instruments, or documents to accomplish the actions contemplated by this Agreement.

 

 

[Remainder of this page intentionally left blank]

 

 

Page 6 of 8

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first mentioned above.

 

THE UNDERSIGNED HAVE CAREFULLY READ THE FOREGOING SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE OF ALL CLAIMS, KNOW THE CONTENTS THEREOF, FULLY UNDERSTAND IT, AND SIGN THE SAME AS HIS OR ITS OWN FREE ACT.

	  	  
	
•                 

	
     CAUTION! READ BEFORE SIGNING         

	  	  
	  	
Rancher Energy Corp.

	  	  
	  	  
	
BY:

	
/s/ Jon C. Nicolaysen

	  	
Jon C. Nicolaysen, President & CEO

	  	
And as one of the Rancher Releasors

 

	
STATE OF COLORADO

	
)

	  	
) ss.

	
COUNTY OF ARAPAHOE

	
)

 

 

Subscribed, sworn to, and acknowledged before me by Jon C. Nicolaysen on this 5th day of May 2014.

 

Witness my hand and official seal.

 

	
My commission expires: 4/10/2015

	  
	  	  
	  	
/s/ Nichole Parsons

	  	
Notary Public

	  	  

 

Page 7 of 8

 

	  
	  

 

	  	  
	
•                 

	
     CAUTION! READ BEFORE SIGNING        

	  	  
	  	
PetroShare Corp.

	  	  
	  	  
	
BY:

	
/s/ Stephen J. Foley

	  	
Stephen J. Foley, CEO

	  	
And as one of the PetroShare Releasors

 

	
STATE OF COLORADO

	
)

	  	
) ss.

	
COUNTY OF ARAPAHOE

	
)

 

 

Subscribed, sworn to, and acknowledged before me by Stephen J. Foley on this 5th day of May 2014.

 

Witness my hand and official seal.

 

	
My commission expires: August 7, 2017

	  
	  	  
	  	
/s/ Sarah J. Morris

	  	
Notary Public

	  	  
	  	  
	  	  
	
 

 

Page 8 of 8ex10x7.htm

 

Exhibit 10.7

 

 

ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement (this "Agreement") dated April 18, 2013 (the "Effective Date"), by and between Premier Energy Partners (I) LLC, a Colorado limited liability company ("Seller), and PetroShare Corp., a Colorado corporation ("Buyer"). Seller and Buyer shall hereinafter be referred to collectively as the "Parties" and individually as a "Party".

 

ARTICLE I

CERTAIN DEFINITIONS

 

Section 1.1 Defined Terms. Unless the context otherwise requires:

 

(a) the terms defined in this Agreement shall have the meanings specified, with each definition to be equally applicable both to the singular and the plural forms of the terms;

 

(b) all references in this Agreement to an "Article," "Section," or "subsection" shall be to an Article, Section, or subsection of this Agreement;

 

(c) 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 Article, Section, subsection, clause or other subdivision; and

 

(d) the words used herein shall include the masculine, feminine, and neuter gender.

 

Section 1.2 Interpretation. In construing this Agreement:

 

(a) examples shall not be construed to limit, expressly or by implication, the matter they illustrate;

 

(b) the word "includes" and its derivatives means "includes, but is not limited to" and corresponding derivative expressions;

 

(c) a defined term has its defined meaning throughout this Agreement and each exhibit, attachment, and schedule to this Agreement, regardless of whether it appears before or after the place where it is defined;

 

(d) each Exhibit to this Agreement is a part of this Agreement, but if there is any conflict or inconsistency between the main body of this Agreement and any Exhibit, the provisions of the main body of this Agreement shall prevail; and

 

(e) canons of construction or rules of interpretation that would construe any provision of this Agreement against the drafter, whether due to ambiguity or otherwise, shall not apply.

 

 

1

 

ARTICLE II

 

SALE AND PURCHASE; DUE DILIGENCE

 

Section 2.1 Sale and Purchase. Subject to the terms and conditions of this Agreement, Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase from Seller, an undivided 100.00% of Seller's right, title and interest in the following described assets and properties (together, the "Assets"):

 

(a) the oil, gas and mineral leases and the leasehold estates created thereby, described in Schedule 2.1(a), together with corresponding interests in and to all related property and rights;

 

(b) the oil, gas and mineral leases and the leasehold estates created thereby, described in Schedule 2.1(b), together with corresponding interests in and to all related property and rights. Together the leases described in Schedule 2.1(a) and Schedule 2.1(b) are referred to herein as the "Leases". Buyer has conducted Due Diligence comprised of land contract work, Abstracts and Attorney Drilling Title Opinion used in providing Schedule 2.1(b). Buyer acknowledges that they will rely on Buck Peak LLC or its designee to provide documents delivering the NRI covering Section 25, T6N-R9OW, Moffat County, Colorado as follows:

 

	
·  

	
All Leases in W/2 Section 25, T6N-R9OW — 78.5% NRI delivered;

 

	
·  

	
Keith family Leases — 77.5% NRI delivered;

 

	
·  

	
Remaining Leases E/2 Section 25, T6N-R9OW — 78.5% NRI delivered

 

(c) all right, title and interest of Seller in and to the lands covered by, or subject to, or pooled or unitized with the Leases (together, the "Lands");

 

(d) all contracts and contractual rights, obligations, and interests described in Schedule 2.1(d), and to the extent transferable, all other material contracts and contractual rights, obligations, and interests, including but not limited to all farmout and farmin agreements, operating agreements, surface use agreements, lease agreements, and other contracts or agreements covering or affecting any of the Assets (together, the "Contracts");

 

(e) all data and information described in Schedule 2.1(e), and copies of all other 2D seismic data and interpretations thereof covering the Lands, together with the shot records and digital data suitable for reprocessing. In addition, Seller shall provide and assign to Buyer any planned or permitted 2D or 3D seismic shoot covering the Lands or parts thereof;

 

(f) all right, title and interest of Seller in and to or derived from the following insofar as the same are attributable to the Leases, Lands, or Contracts: (i) all rights with respect to the use and occupancy of the surface of and the subsurface depths under the Lands; (ii) all agreements and contracts, easements, rights-of-way, servitudes, and other estates; (iii) all real and personal property located in or upon the Lands or used in connection with the exploration, development or operation of the

 

 

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Leases; and (iv) any and all lease files, title files, land files, division order files, marketing files, well files, abstracts, title opinions, production records, seismic, geological, geophysical and engineering data, and all other files, maps and data (in whatever form) arising out of or relating to the Leases or Lands or the ownership, use, development, maintenance or operation of the other Assets (the "Records"); and

 

(g)           Notwithstanding the foregoing, the transfer of the Assets pursuant

 

to this Agreement shall not include the assumption of any liability related to the Assets unless Buyer expressly assumes that liability herein.

 

Section 2.2 Review Period. With respect to Assets listed on Schedule 2.1(a) and Schedule 2.1(b), from the Effective Date up to and including April 19, 2013 (the "Review Period"), Buyer shall have the right to review the Records in the Seller's possession and confirm that no Defects exist with respect to the Assets.

 

(a) "Defects" shall consist of one or more Title Defects or Environmental Defects.

 

(b) "Title Defects" means encumbrances, encroachments, irregularities, or defects in title to the Assets that causes Seller's title to be less than Good and Marketable Title.

 

(c) "Good and Marketable Title" means such right, title or interest held by Seller that will entitle Buyer, in Buyer's sole discretion, to: (i) an interest in each Lease covering the number of net mineral acres described in the column marked "Net Mineral Acres" in Schedules 2.1(a) and 2.1(b); (ii) receive no less than the net revenue interest listed on Schedules 2.1(a) and 2.1(b) in each Lease; (iii) Leases with primary terms expiring on the dates set out for each of the Leases in Schedules 2.1(a) and 2.1(b); and (iv) sufficient rights under the Leases to allow Buyer to fully develop the oil, gas, and minerals covered by the Leases.

 

(d) "Environmental Defects" means the (i) failure of the Assets to comply with Environmental Laws, or (ii) the existence of any physical condition related to prior oil and gas operations that, in Buyer's discretion, would require Buyer to be responsible for taking corrective or remedial action with respect to such condition as a consequence of Buyer acquiring title to the Leases (referred to herein as a "Non­conforming Physical Condition"). To the extent that Buyer accepts a Lease (and the Lands covered thereby) as being free from Environmental Defects pursuant to the foregoing, Seller shall have no liability to Buyer with respect to the presence on such Lease (or Lands) of an Existing Well.

 

(e) "Environmental Laws" shall mean all applicable Laws relating to: (a) the control of any pollutant or potential pollutant or protection of the air, water, land or the environment, (b) solid, gaseous or liquid waste generation, handling, treatment, storage, disposal or transportation or (c) exposure to hazardous, toxic, explosive, corrosive or other substances alleged to be harmful. Environmental Laws shall include, but not be limited to, the Clean Air Act, 42 U.S.C. § 7401 et seq., the Clean Water Act, 33 U.S.C. § 1251 et seq., the Resource Conservation Recovery Act, 42 U.S.C. § 6901

 

 

 

 

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et seq., the Superfund Amendments and Reauthorization Act, 42 U.S.C. § 11001 et seq., the Water Pollution Control Act, 33 U.S.C. § 1251 et seq., the Safe Drinking Water Act, 42 U.S.C. § 300f et seq. and the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.

 

(f) "Laws" shall mean all applicable statutes, laws, ordinances, regulations, rules, rulings, orders, restrictions, requirements, writs, injunctions, decrees or other official acts of or by any Governmental Authority.

 

(g) "Governmental Authority" shall mean shall mean (i) the United States of America; (ii) any state, county, municipality or other governmental subdivision within the United States of America; and (iii) any court or any governmental department, commission, board, bureau, agency or other instrumentality of the United States of America or of any state, county, municipality or other governmental subdivision within the United States of America.

 

Section 2.3 Confirmation of Defects. In order to confirm that no Defects exist with respect to the Assets, Buyer shall, during the Review Period, have the right:

 

(a) to examine the Leases, Contracts, Records, and all other materials in Seller's possession or under Seller's control relating to the Assets, including, without limitation, geologic and engineering data, seismic data, unrecorded Contracts, revenue and expense records, suspense account records, division order files, well files and land and lease files (collectively, the "Data");

 

(b) to examine title to the Assets, based upon the Data and the public records of the county and state in which the Leases and Lands are located, at its sole cost, risk and expense;

 

(c) to physically inspect the Assets in order to ascertain the condition of the Leases and Lands and to determine the presence or absence of any wellbores, naturally occurring radioactive materials, environmental contaminations, materials of environmental concern, or violations of Environmental Laws.

 

Section 2.4 Cooperation. Seller shall cooperate with Buyer and provide Buyer with access to the Data in Seller's ofl•ices at reasonable hours. Buyer shall have the right, at its own expense, to photocopy any of such Data; provided, however, that if Closing does not occur Buyer shall, upon notice to Seller, return all copies of the Data to Seller.

 

Section 2.5 Access. Seller shall provide Buyer reasonable access to the Leases and Lands at Buyer's sole cost and expense.

 

Section 2.6 Defect Notices. On or before the expiration of the Review Period, Buyer shall provide notice to Seller regarding all Defects (each, a "Defect Notice"). A Defect Notice shall be in writing and shall include: (i) a description of the Assets affected by the Defect; and (ii) an explanation of the basis for the Defect.

 

4

 

Section 2.7 Cure Period. Upon receiving a Defect Notice, Seller shall have the right to remedy the Defect, to the reasonable satisfaction of Buyer, within six days following the expiration of the Review Period (the "Cure Period") unless extended by mutual agreement of the Parties. If Seller is unable to remedy any Defect to the satisfaction of Buyer prior to the expiration of the Cure Period, Buyer shall have the right to either (i) accept the uncured Defect and proceed to Closing, or (ii) terminate this Agreement, in which event each Party shall have no further obligation to the other hereunder. Buyer shall give Seller written notice of its election within three business days following the end of the Cure Period (the failure of Buyer to give notice within such three-day period shall be deemed to be its election to terminate this Agreement). Notwithstanding the foregoing, the parties shall always have the right to mutually agree to a new Purchase Price (as defined below) for the Assets to take into account the effect of uncured Defects.

 

ARTICLE Ill

CONSIDERATION AND PAYMENT

 

Section 3.1 Consideration. In consideration for the sale and conveyance of the Assets to Buyer, the Buyer shall pay the total purchase price described in this Section 3.1(a) and (b) (the "Purchase Price") and, at the direction of Seller, the Purchase Price shall be distributed directly to Seller's Members in the following manner:

 

(a) The sum of two hundred and twenty-three thousand four hundred dollars ($223,400.00) shall be due and payable at Closing to Seller's Members as described in the table in Section 3.2; and

 

(b) Buyer shall issue 67,000 shares of restricted common stock of Buyer (the "Shares"), valued at $1 per share, at Closing to the Seller's Members as described in the table in Section 3.2.

 

Section 3.2 Members Purchase Price Allocation Table.

 

	  	  	  	  
	
Member

	  	
Purchase Price Allocation

	
Frederick J. Witsell 

John H. Carpenter 

David L. Witsell 

Kyle A. Worsham

	  	
Allocation pursuant to Letter Offer signed February 22, 2013 

Allocation pursuant to Letter Offer signed February 28, 2013

Allocation pursuant to Letter Offer signed March 11, 2013

Allocation pursuant to Letter Offer signed March 15, 2013

	  	  	  	  

 

Section 3.3 Seller's Members. The Members of Seller listed in Section 3.2 (together "Seller's Members" or individually a "Member") shall each join in the representations and warranties in Sections 4.1 and 4.2 of this Agreement and shall execute this Agreement as provided on the signature page.

 

5

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

Section 4.1 Representations and Warranties of Seller. Seller and Seller's Members represent and warrant to Buyer as follows:

 

(a) Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Colorado and has the requisite corporate power to carry on its business as it is now being conducted. Seller is duly qualified to do business, and is in good standing, in each jurisdiction in which the Assets owned, leased or operated by it makes such qualification necessary.

 

(b) Seller has all requisite power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement. The execution, delivery and performance of this Agreement and the transactions contemplated hereby have been duly and validly authorized by all requisite corporate action on the part of Seller.

 

(c) This Agreement constitutes a valid and binding agreement of Seller enforceable against Seller in accordance with its terms, subject to: (i) applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws of general application with respect to creditors; (ii) general principles of equity; and (iii) the power of a court to deny enforcement of remedies generally based upon public policy.

 

(d) Neither the execution and delivery of this Agreement nor the consummation of the transactions and performance of the terms and conditions contemplated hereby by Seller will: (i) conflict with or result in any breach of any provision of the articles of organization, operating agreement or other similar governing documents of Seller; (ii) conflict with, be rendered void or ineffective by or under the terms, conditions or provisions of any agreement, instrument or obligation to which Seller is a party or is subject or by which any of its properties or assets are bound; (iii) result in or give rise to (or with notice or the passage of time or both could result in or give rise to) a default, the creation or imposition of any lien, charge, penalty, restriction, security interest or encumbrance or any change in terms, termination, cancellation or acceleration under the terms, conditions or provisions of any Asset (or of any agreement, instrument or obligation relating to or burdening Seller or any Asset); or (iv) violate or be rendered void or ineffective under any Laws or result in or give rise to (or with notice or the passage of time or both could result in or give rise to) the creation or imposition of any lien, charge, penalty, restriction, security interest or encumbrance on or with respect to any Asset under any Law.

 

(e) Except for the Transfer Requirements expressly described and set forth in Schedule 4.1(e), none of the Assets or any portion thereof are subject to any Transfer Requirements. "Transfer Requirements" shall mean any consent, approval, authorization or permit of, or filing with or notification to, any Person which must be obtained, made or complied with for or in connection with the execution and delivery of this Agreement by Seller or any sale, assignment, transfer or encumbrance of any Asset or any interest therein in order (i) for such sale, assignment, transfer or encumbrance to

 

 

 

 

6

be effective, (ii) to prevent any termination, cancellation, default, acceleration or change in terms (or any right thereof from arising) under any terms, conditions or provisions of any Asset (or of any agreement, instrument or obligation relating to or burdening any Asset) as a result of such sale, assignment, transfer or encumbrance, or (iii) to prevent the creation or imposition of any lien, charge, penalty, restriction, security interest or encumbrance on or with respect to any Asset (or any right thereof from arising) as a result of such sale, assignment, transfer or encumbrance; excluding, however, from the definition of Transfer Requirements consents and approvals of assignments by any Governmental Authority (other than consents and approvals by any Governmental Authority in connection with the assignment of any lease from a city, county, state or federal government that is included in the Assets) that are customarily obtained after closing the transactions contemplated by this Agreement.

 

(f) There are no actions, suits, arbitrations, proceedings, investigations or claims pending or threatened relating to or affecting any of the Assets or the transactions contemplated by this Agreement.

 

(g) Seller has not received any notice of any violation or alleged violation (or of any fact or circumstance which with notice or the passage of time or both would constitute a violation) of any Laws (including any Environmental Laws) applicable to the Assets, and the Assets comply with all Laws (including any Environmental Laws).

 

(h) Schedule 2.1(d) sets forth a true and correct description of each Contract, agreement or similar arrangement which is included in the Assets or by which any of the Assets is bound. Seller is in compliance with all terms and provisions of all contracts or agreements included in or by which any of the Assets is subject. All such contracts and agreements are in full force and effect and, to the knowledge of Seller, there are no violations or breaches thereof or existing facts or circumstances which upon notice or the passage of time or both will constitute a violation or breach thereof by any other party thereto.

 

(i) Seller has Good and Marketable Title to the Assets;

 

(j) Neither Seller nor any Affiliate of Seller has incurred any obligation or entered into any agreement for any investment banking, brokerage or finder's fee or commission in respect of the transactions contemplated by this Agreement for which Buyer or any Affiliate of Buyer shall incur any liability. "Affiliate" shall mean, as to the Person specified, any Person controlling, controlled by or under common control with such specified Person. The concept of control, controlling or controlled as used in the aforesaid context means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of another, whether through the ownership of voting securities, by contract or otherwise.

 

(k) Seller has paid all Taxes on or relating to the Assets, which are currently due and payable as required by Law prior to delinquency. Seller is not a non­resident alien or foreign corporation (as those terms are defined in Internal Revenue Code of 1986, as amended, and any successor thereto, together with all regulations promulgated thereunder (together, the "Code").

 

 

 

 

7

 

     (l) There are no bankruptcy, reorganization or arrangement proceedings pending against, being contemplated by, or threatened against Seller.

 

(m) Seller is not an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended, or is otherwise subject to regulation under or the restrictions of such Act.

 

(n) All licenses, permits, certificates, orders, approvals and authorizations of Governmental Authority necessary for the ownership or operation of the Assets have been obtained and all such licenses, permits, certificates, orders, approvals and authorizations are in full force and effect and all fees and charges relating thereto have been paid.

 

(o) None of the Assets are subject to or are bound by any futures, hedge, swap, collar, put, call, option or other commodities contract or agreement.

 

(p) Seller has knowledge, skill and experience in financial, business and investment matters relating to the transactions contemplated by this Agreement and is capable of evaluating the merits and risks of such transactions. To the extent deemed necessary by Seller, Seller has retained, at its own expense, and relied upon, appropriate professional advice regarding the investment, tax and legal merits and consequences of its execution of this Agreement.

 

(q) To the best of Seller's knowledge, none of Seller's statements or representations in this Agreement contain any untrue statement of any fact or omit to state any fact necessary to be stated in order to make the statements or representations made not misleading.

 

(r) The Assets to be transferred under this Agreement constitute substantially of Seller's assets.

 

(s) The transactions contemplated in this Agreement have been undertaken by the Seller in good faith, considering its obligations to any person or entity to whom Seller owes a right to payment, and has undertaken these transactions without any intent to hinder, delay or defraud any of Seller's creditors. The Seller has not been sued or threatened with suit by any creditor prior to the execution of this Agreement and have not moved or concealed any assets from creditors. Seller believes in good faith that Seller will receive consideration reasonably equivalent to the value of the assets transferred under this Agreement.

 

(t) Seller is an "accredited investor" as that term is defined in Regulation D under the Securities Act.

 

Section 4.2 Representations and Warranties of Seller's Members. Seller's Members represent and warrant to Buyer as follows:

 

8

 

(a) Each Member of Seller is acquiring the Shares described in Subsection 3.1(b) for the Member's own account and for investment purposes only, and without the intention of reselling or redistributing the same.

 

(b) Each Member of Seller represents that he is an "accredited  investor" as that term is defined in Regulation D under the Securities Act.

 

(c) The Shares shall be subject to statutory resale restrictions under the securities laws. The Shares have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the U.S. or to any U.S. Person, unless the Shares are registered under the Securities Act and all applicable state securities laws or an exemption from such registrations requirement is available. No representation has been made by or on behalf of Buyer as to the period of time during which Seller's Members will be required to hold the Shares prior to resale. Buyer is under no obligation to register the Shares or to take any other action to allow Seller's Members to sell the Shares.

 

(d) The certificates representing the Shares will bear a legend substantially in the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), IN RELIANCE UPON THE EXEMPTIONS FROM REGISTRATION PROVIDED IN THE ACT AND REGULATION D UNDER THE ACT AND HAVE NOT BEEN REGISTERED UNDER ANY STATE SECURITIES LAWS. THEREFORE, ANY SUBSEQUENT TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE UNLAWFUL UNLESS IT IS REGISTERED UNDER THE ACT AND ANY STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE. FURTHERMORE, IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN, WITHOUT THE OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT THE PROPOSED TRANSFER OR SALE DOES NOT AFFECT THE EXEMPTIONS RELIED UPON BY THE COMPANY IN ORIGINALLY DISTRIBUTING THE SECURITY AND THAT REGISTRATION IS NOT REQUIRED.

 

Section 4.3 Representations and Warranties of Buyer. Buyer represents and warrants to Seller as follows:

 

(a)          Buyer is a corporation duly organized, validly existing and in good

standing under the laws of the State of Colorado and has the requisite corporate power to carry on its business as it is now being conducted. Buyer is duly qualified to do business, and is in good standing, in each jurisdiction in which the Assets to be acquired by it makes such qualification necessary.

 

 

9

 

(b) Buyer has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement. The execution, delivery and performance of this Agreement and the transactions contemplated hereby have been duly and validly authorized by all requisite corporate action on the part of Buyer.

 

(c) This Agreement constitutes a valid and binding agreement of Buyer enforceable against Buyer in accordance with its terms, subject to: (i) applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws of general application with respect to creditors; (ii) general principles of equity; and (iii) the power of a court to deny enforcement of remedies generally based upon public policy.

 

(d) Neither the execution and delivery of this Agreement nor the consummation of the transactions and performance of the terms and conditions contemplated hereby by Buyer will (i) conflict with or result in any breach of any provision of the certificate of incorporation, bylaws and other similar governing documents of Buyer; (ii) be rendered void or ineffective by or under the terms, conditions or provisions of any agreement, instrument or obligation to which Buyer is a party or is subject; or (iii) violate or be rendered void or ineffective under any Law.

 

(e) No consent, approval, authorization or permit of, or filing with or notification to, any Person is required for or in connection with the execution and delivery of this Agreement by Buyer or for or in connection with the consummation of the transactions and performance of the terms and conditions contemplated hereby by Buyer.

 

(f) Neither Buyer nor any Affiliate of Buyer has incurred any obligation or entered into any agreement for any investment banking, brokerage or finder's fee or commission in respect of the transactions contemplated by this Agreement for which Seller or any Affiliate of Seller shall incur any liability.

 

ARTICLE V

COVENANTS OF SELLER AND BUYER

 

Section 5.1 General Conveyance. Upon the terms and subject to the conditions of this Agreement, at Closing, Seller shall execute and deliver the General Conveyance, in substantially the form attached hereto as Exhibit 5.1 (the "Conveyance"), to Buyer together with all assignment forms as may be required by Law to be executed in connection with the conveyance of specific Assets; provided that the terms and provisions of the Conveyance shall control as to any conflict between the Conveyance and any such special assignment forms.

 

Section 5.2 Public Announcements. Without the prior written approval of the other Party, which approval shall not be unreasonably withheld, no Party will issue, or permit any agent or Affiliate to issue, any press releases or otherwise make, or cause any agent or Affiliate to make, any public statements with respect to this Agreement and the transactions contemplated hereby, except where such release or statement is deemed in good faith by the releasing Party to be required by Law or any national

 

 

10

 

securities exchange, in which case the Party or Parties will use its or their, as the case may be, commercially reasonable efforts to provide a copy to the other Party prior to any release or statement.

 

Section 5.3 Further Assurances. Seller and Buyer each agree that, from time to time, whether before, at or after the Closing Date, each of them will execute and deliver or cause their respective Affiliates to execute and deliver such further instruments of conveyance and transfer and take such other action as may be necessary to carry out the purposes and intents of this Agreement. Any separate or additional assignment of the Assets or any portion thereof required pursuant to this Section 5.3: (a) shall evidence the conveyance and assignment of the Assets made or intended to be made in the Conveyance; (b) shall not modify or be deemed to modify any of the terms, covenants and conditions set forth in the Conveyance or in this Agreement; and (c) shall be deemed to contain all of the terms and provisions of the Conveyance, as fully as though the same were set forth at length in such separate or additional assignment.

 

Section 5.4 Negative Covenant. Between the date of this Agreement and the Closing Date, Seller shall not, without the prior written consent of Buyer, make any modification to any of the Assets or enter into any compromise or settlement of any litigation, proceeding or governmental investigation relating to the Assets. Notwithstanding the above, Seller shall be allowed to file and record any necessary documents which are required to cure title matters as set forth in Section 2.7 or as may be necessary to deliver the 8/8ths net revenue interests as listed in Schedules 2.1(a)(b) and as further set forth in Section 2.2(c).

 

ARTICLE VI

CLOSING

 

Section 6.1 Closing. Unless extended pursuant to the terms of this Agreement, the closing of this transaction shall be held on or before April 30, 2013 at 10:00 a.m. Colorado time, or such other mutually agreed upon date. The Closing may occur by fax or email as may be the case. The actual date on which the Closing occurs shall be known as the "Closing Date"). At Closing, the obligations in Section 6.2 and Section 6.3 shall occur, each being a condition precedent to the others and each being deemed to have occurred simultaneously with the other.

 

Section 6.2 Seller's Closing Obligations. At Closing, Seller shall execute and deliver, or cause to be executed and delivered, to Buyer the following:

 

(a) the Conveyance, Assignment and Bill of Sale in the form attached as Exhibit 5.1;

 

(b) an Affidavit of Non-foreign Status substantially in the form attached as Exhibit 6.2(b);

 

(c) the Records; and

 

 

11

 

 

(d)such other documents as may be reasonably necessary to convey

 

all of Seller's interests in the Assets to Buyer in accordance with the terms and provisions of this Agreement.

 

Section 6.3 Buyer's Closing Obligations. At Closing, Buyer shall:

 

(a) deliver, or cause to be delivered, the cash portion of the Purchase Price in immediately available funds; and

 

(b) deliver, or cause to be delivered, a duly authorized share certificate in the name of each of Seller's Members as provided in Article III of this Agreement (the "Share Certificates").

 

Section 6.4 Buyer's Conditions of Closing. Buyer's obligations under this Agreement are subject, at the option of Buyer, to the satisfaction at Closing of the following conditions:

 

(a) All representations and warranties of Seller and Seller's Members contained in this Agreement shall be true in all material respects at and as of the Closing as if such representations and warranties were made at and as of the Closing; and

 

(b) Seller shall have performed and satisfied all covenants required by this Agreement to be performed and satisfied by Seller at or prior to the Closing.

 

Should the above conditions not be satisfied to Buyer's satisfaction as of the Closing, Buyer may, as its sole and exclusive remedy, terminate this Agreement without further liability between the Buyer and Seller.

 

Section 6.5 Survival. The representations and warranties of the Parties and Seller's Members contained in Article IV of this Agreement shall survive for six (6) months after the Closing Date. All of the covenants and agreements made by each Party in this Agreement shall survive the consummation of the transactions contemplated herein and shall continue in full force and effect after the Closing indefinitely until all obligations with respect to any such covenants are fulfilled in their entirety.

 

ARTICLE VII

Termination and Confidentiality

 

Section 7.1 Right of Termination This Agreement may be terminated at any time at or prior to the Closing:

 

(a) by mutual written consent of the Parties;

 

(b) by Buyer on the Closing Date if the obligations set forth in Section 7.2 or the conditions set forth in Section 7.5 have not been

 

 

12

 

satisfied in all material respects or waived by Buyer in writing by the Closing Date;

 

(c) by Seller on the Closing Date if the obligations set forth in Section 7.3 or the conditions set forth in Section 7.4 have not been satisfied in all material respects or waived by Seller in writing by the Closing Date; or

 

(d) by either Buyer or Seller if the Closing has not occurred by April 30, 2013 unless agreed to by the Parties in writing.;

 

provided, however, that no Party shall have the right to terminate this Agreement pursuant to Sections 7.1(b), 7.1(c), or 7.1(d) if such Party is at such time in breach of any provision of this Agreement.

 

Section 7.2   Effect of Termination. In the event that the Closing does not

 

occur because a Party exercises its right to terminate this Agreement under Section 2.7 or Section 7.1, then except as set forth in Section 3.2, this Agreement shall be null and void and no Party shall have any further rights or obligations under this Agreement; provided that, nothing herein shall relieve any Party from any liability for any breach hereof. Further, upon the failure of Seller to meet a material condition to Closing set forth in Section 6.4, Buyer, at its sole discretion, may enforce whatever legal or equitable rights may be appropriate and applicable, including, without limitation specific performance of this Agreement.

 

Section 7.3   Confidentiality: The Parties agree that the amount of the

 

Purchase Price shall remain confidential. Notwithstanding the immediately preceding sentence, the Parties agree that the Purchase Price may be disclosed by the Parties to their affiliates and each of their respective officers, directors, employees, partners, attorneys, representatives, accountants, brokers, and lenders. In addition, the Purchase Price may be disclosed as required by discovery process, court order, law, rule or regulation of a governmental authority or stock exchange. The Parties recognize that the Conveyance will be filed in the public record and consent to such filing. Nothing in this Section 7.1 shall prevent either Party from disclosing the other provisions of this Agreement or the fact that the Parties have entered into this Agreement.

 

ARTICLE VIII

MISCELLANEOUS

 

Section 8.1 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.

 

Section 8.2 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO WITHOUT REFERENCE TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

 

 

 

13

 

Section 8.3   Entire Agreement. This Agreement (including the Exhibits, Schedules, and other agreements expressly contemplated by or incorporated herein) contains the entire agreement between the Parties with respect to the subject matter hereof and there are no agreements, understandings, representations or warranties between the Parties other than those set forth or referred to herein.

 

Section 8.4   Expenses. Buyer shall be responsible for all recording fees relating to the filing of instruments transferring title to Buyer from Seller. Seller shall be responsible for (a) all recording and other fees relating to title curative documents, (b) any sales Taxes which may become due and owing by reason of the sale of the Assets hereunder, (c) all transfer, stamp, documentary and similar Taxes imposed on the Parties with respect to the property transfer contemplated pursuant to this Agreement and (d) all income and other Taxes incurred by or imposed on Seller with respect to the transactions contemplated hereby. All other costs and expenses incurred by each Party in connection with all things required to be done by it hereunder, including attorney's fees, accountant fees and the expense of title examination, shall be borne by the Party incurring same.

 

Section 8.5   Notices. All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally, sent by documented overnight delivery service or, to the extent receipt is confirmed, by United States Mail, telecopy, telefax, email or other similar electronic transmission service to the appropriate address or number as set forth below. Notices to Seller shall be addressed as follows:

 

Premier Energy Partners (I) LLC

PO Box 2328

Littleton, CO 80161

Attn: Frederick J. Witsell

Email: fwitsellpremier@comcast.net

 

or at such other address and to the attention of such other Person as Seller may designate by written notice to Buyer. The party Seller designated above is authorized to receive any notice contemplated by this Agreement on behalf of all parties Seller and is also authorized to make any response or election required hereunder with respect to such notice on behalf of all parties Seller.

 

Notices to Buyer shall be addressed to:

 

PetroShare Corp.

7200 S. Alton Way, Suite B220

Centennial, Colorado 80111 

Attention: Stephen J. Foley 

Phone number: 303-591-1321 

Email: sfoley43@msn.com

 

 

14

or at such other address and to the attention of such other Person as Buyer may designate by written notice to Seller.

 

Section 8.6    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Neither this Agreement nor the obligations of any Party shall be assignable or transferable by such Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld.

 

Section 8.7    Headings. The headings to Articles, Sections and other subdivisions of this Agreement are inserted for convenience of reference only and will not affect the meaning or interpretation of this Agreement.

 

Section 8.8    Amendments and Waivers. This Agreement may not be modified or amended except by an instrument or instruments in writing signed by the Party against whom enforcement of any such modification or amendment is sought. Any Party may, only by an instrument in writing, waive compliance by another Party with any term or provision of this Agreement on the part of such other Party to be performed or complied with. The waiver by any Party of a breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach.

 

Section 8.9    Exhibits and Schedules. The Exhibits and Schedules hereto which are referred to herein are hereby made a part hereof and incorporated herein by such reference.

 

Section 8.10 Purchase Price Allocation for Tax Purposes. Seller and Buyer agree that the Purchase Price shall be allocated to the various Assets for federal and state income tax purposes as shown on Exhibit 8.10. The Parties further agree that the allocations set forth on Exhibit 8.10 represent reasonable estimates of the fair market values of the Assets described therein.

 

Section 8.11 Agreement for the Parties' Benefit Only. Except as specified in Article VII, this Agreement is not intended to confer upon any Person not a Party any rights or remedies hereunder, and no Person, other than the Parties, is entitled to rely on any representation, warranty, covenant or agreement contained herein.

 

Section 8.12 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any adverse manner to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 

Section 8.13 Limitation of Damages. NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY

 

15

 

AND/OR ITS AFFILIATES BE LIABLE FOR ANY CONSEQUENTIAL, SPECIAL, INDIRECT OR PUNITIVE DAMAGES CLAIMED BY A PARTY ARISING FROM OR RELATING TO ANY ACTIONS FOR ANY BREACH OR ALLEGED BREACH OF THIS AGREEMENT.

 

[Signatures on Following Page]

 

 

 

 

16

IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the Parties and Seller's Members as of the day first above written.

 

BUYER:

 

PetroShare Corp.

 

 

   

By:           /s/ Stephen J. Foley

Name:     Stephen J. Foley

Title:       Chief Executive Officer

 

SELLER:

 

Premier Energy Partners (I) LLC

 

   

By:    /s/ Frederick J. Witsell

Name:     Frederick J. Witsell

Title:       Managing Member

 

MEMBERS:

 

 

/s/ Fred J. Witsell

Fred J. Witsell

 

 

/s/ John H. Carpenter

John H. Carpenter

 

 

/s/ David L. Witsell

David L. Witsell

 

 

/s/ Kyle A. Worsham

Kyle A. Worsham

 

 

 

17

 

SCHEDULE 2.1(a) with Lease Valuation Summary

 

Assignment of Leases dated April ___, 2013

 

	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  
	
LESSOR

	
LESSEE

	
DESCRIPTION

	
EFFECTIVE DATE

	
EXPIRATION DATE

	
GROSS ACRES

	
NET ACRES

	
NET ACRES CONVEYED

	
NET REVENUE INTEREST

	
RECORDING

	  	  	  	  	  	  	  	
4.50%

	
to be delivered 8/8ths

	 
	
Richard J. Colby

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.

Sec 21: Lots 11,14,15 & 16

Sec 22: Lots 12 & 13

Sec 27: Lots 3 & 4

Sec 28: Lot 1

	
11/20/2010

	
11/19/2015

5 yr lease, 

3 yr ext (2018)

	
369.39

	
15.40

	
0.69

	
80.00%

	
20103284

	
David Colby

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.

Sec 21: Lots 11,14,15 & 16  

Sec 22: Lots 12 & 13 

Sec 27: Lots 3 & 4 

Sec 28: Lot 1

	
11/20/2010

	
11/19/2015

5 yr lease, 

3 yr ext (2013)

	
369.39

	
15.40

	
0.69

	
80.00%

	
20103286

	
Douglas Van Tassel, Diana Lynn Hamilton, Donna Lee Sweet, DeLaine Brown and Debbie Lou Van Tassel, 

PO Box 335, 

Craig, CO  81626-0335

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.

Sec 35: Lots 4 & 5  

Sec 34: Lots 1,7,8,9,10,11,12,13,14,15,16

	
1/10/2011

	
1/09/2014

3 yr lease, 

3 yr ext (2017)

	
534.62

	
89.10

	
4.01

	
80.00%

	
20103146

	
Florence Van Tassel

	
Laramie & Associates

	
T6N-R90W, 6th P.M.

Sec 35: Lots 4 & 5    

Sec 34: Lots 1,7,8,9,10,11,12,13,14,15,16

	
1/10/2011

	
1/09/2016

5 yr lease, 

3 yr ext (2019)

	
534.62

	
89.10

	
4.01

	
80.00%

	
20103022

	
Gregory J. Knez, Trustee of the Raymond M. & Hellen M. Knez Family Trust

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.

Sec 19: Lots 5, 6, 11 & 12 

Sec 20: N2 less tract (see lease)

	
3/21/2011

	
3/20/2016

5 yr lease, 

3 yr ext (2019)

	
270.31

	
271.07

	
12.20

	
80.00%

	
20103026

	
Gregory J. Knez, Trustee of the Raymond M. & Hellen M. Knez Family Trust

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.   

Sec 20: A tract in E 55 acres of E2NEN2 (see lease)

	
3/21/2011

	
3/20/2016

5 yr lease, 

3 yr ext (2019)

	
11.45

	
11.45

	
0.52

	
80.00%

	
20103024

	
Marlene Henderson

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.  

Sec 21: Lots 11,14,15 & 16

Sec 22: Lots 12 & 13  

Sec 27: Lots 3 & 4    

Sec 28: Lot 1

	
3/30/2011

	
3/29/2016

5 yr lease, 

3 yr ext (2019)

	
369.39

	
15.40

	
0.69

	
80.00%

	
20102819

	
Barbara Martin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.

Sec 21: Lots 11,14,15 & 16  

Sec 22: Lots 12 & 13 

Sec 27: Lots 3 & 4   

Sec 28: Lot 1

	
3/30/2011

	
3/29/2016

5 yr lease, 

3 yr ext (2019)

	
369.39

	
15.40

	
0.69

	
80.00%

	
20102820

	
Edward Rutherford

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Sec 21: Lots 11,14,15 & 16  

Sec 22: Lots 12 & 13    

Sec 27: Lots 3 & 4 

Sec 28: Lot 1

	
3/30/2011

	
3/29/2016

5 yr lease, 

3 yr ext (2019)

	
369.39

	
15.40

	
0.69

	
80.00%

	
20102821

 

 

 

 

	
Larry Rutherford

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Sec 21: Lots 11,14,15 & 16  

Sec 22: Lots 12 & 13   

Sec 27: Lots 3 & 4    

Sec 28: Lot 1

	
3/30/2011

	
3/29/2016

5 yr lease, 

3 yr ext (2019)

	
369.39

	
15.40

	
0.69

	
80.00%

	
20102822

	
Mark A Voloshin

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.  

Sec 2: Lots 7, 8, 9, 10 less tract (see lease)

Sec 2: 15,16,17,18

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
333.57

	
15.41

	
0.69

	
80.00%

	
20103150

	
Mark A Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.

Assesor's Tract # 69  

Sec 21: Lots 3, 6, 7 & 10

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.88

	
47.11

	
2.12

	
80.00%

	
20103151

	
Mark A Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 70 

Sec 21: Lots 4 & 5

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
82.44

	
24.43

	
1.10

	
80.00%

	
20103152

	
Mark A Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessors Tract # 83 

Sec 27: Lots 5,6,10,11,12,14,15,16 

Sec 34: Lots 2,3 

less the acreage in Sec 35 and the additional lands in Sec 34

	
5/12/2011

	
5/11/2016

5 yr lease, 

2 yr ext (2018)

	
409.65

	
100.52

	
4.52

	
80.00%

	
20103155

	
Mark A Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 105

Sec 21: Lots 1,2,8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, 

2 yr ext (2018)

	
164.97

	
80.96

	
3.64

	
80.00%

	
20103156

	
Mark A Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.

Assessors Tract #82       

Sec 26: Lots 4,5,6,11,12,13 & 14  

Sec 27:Lots 1,2,5,6,7,8,9,10,11,12,14,15,16

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
330.85

	
162.36

	
7.31

	
80.00%

	
20103154

	
Betty Arnone

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.  

Sec 2: Lots 7,8,9,10 Less Tract (see lease)    

Sec 2: 15,16,17 & 18

	
5/12/2011

	
5/11/2016

5 yr lease, 

2 yr ext (2018)

	
333.57

	
11.56

	
0.52

	
80.00%

	
20102829

	
Betty Arnone

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 69  

Sec 21: Lots 3, 6, 7, & 10

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.88

	
17.59

	
0.79

	
80.00%

	
20102830

	
Betty Arnone

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 70   

Sec 21: Lots 4 & 5

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
82.44

	
9.16

	
0.41

	
80.00%

	
20102831

 

 

	  	  	  	  	  	  	  	  	  	  
	
Betty Arnone

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 82   

Sec 26: Lots 11, 12, 13, 14 

Sec 27: Lots 2, 7, 8, 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
330.85

	
26.04

	
1.17

	
80.00%

	
20102833

	
Betty Arnone

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 83   

Sec 27: Lots 5,6,10,11,12,14,15,16     

Sec 34: Lots 2,3 Less acreage (see lease)

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
409.65

	
16.12

	
0.73

	
80.00%

	
20102834

	
Betty Arnone

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 105 

Sec 21: Lots 1, 2, 8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.97

	
12.98

	
0.58

	
80.00%

	
20102835

	
Betty Jo Lott & Michelle K. McKee

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.  

Sec 2: Lots 7,8,9,10 less tract (see lease)   

Sec 2: 15,16,17,18

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
333.57

	
11.56

	
0.52

	
80.00%

	
20102836

	
Betty Jo Lott & Michelle K. McKee

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.   

Assessor's Tract # 69   

Sec 21: Lots 3, 6, 7, & 10

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.88

	
17.6

	
0.79

	
80.00%

	
20102837

	
Betty Jo Lott & Michelle K. McKee

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 70   

Sec 21: Lots 4 & 5

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
82.44

	
9.16

	
0.41

	
80.00%

	
20102838

	
Betty Jo Lott & Michelle K. McKee

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.       

Assessor's Tract # 82   

Sec 26: Lots 11, 12, 13, & 14  

Sec 27: Lots 2, 7, 8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
330.85

	
26.04

	
1.17

	
80.00%

	
20102840

	
Betty Jo Lott & Michelle K. McKee

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 83   

Sec 27: Lots 5, 6, 10, 11, 12, 14, 15 & 16  

Sec 34: Lots 2, 3 Less acreage (see lease)

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
409.65

	
16.12

	
0.73

	
80.00%

	
20102841

	
Betty Jo Lott & Michelle K. McKee

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 105 

Sec 21: Lots 1, 2, 8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.97

	
12.98

	
0.58

	
80.00%

	
20102842

	
Gary R Semro and Robert W. Semro,

 6522 Trailhead Rd, 

Highlands Ranch, CO  80130

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.       

Assessor's Tract # 69     

Sec 21: Lots 3, 6, 7, & 10

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.88

	
17.59

	
0.79

	
80.00%

	
20102845

	
Gary R Semro and Robert W. Semro

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.       

Assessor's Tract # 70   

Sec 21: Lots 4 & 5

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
82.44

	
9.16

	
0.41

	
80.00%

	
20102846

 

 

	  	  	  	  	  	  	  	  	  	  
	
Gary R Semro and Robert W. Semro

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.   

Assessor's Tract # 82   

Sec 26: Lots 11, 12, 13, & 14  

Sec 27: Lots 2, 7, 8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
330.85

	
26.04

	
1.17

	
80.00%

	
20102848

	
Gary R Semro and Robert W. Semro

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Assessor's Tract # 83   

Sec 27: Lots 5, 6, 10, 11, 12, 14, 15 & 16 

Sec 34: Lots 2, 3 Less acreage (see lease)

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
409.65

	
16.12

	
0.73

	
80.00%

	
20102849

	
Gary R Semro and Robert W. Semro

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 105     

Sec 21: Lots 1, 2, 8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.97

	
12.98

	
0.58

	
80.00%

	
20102844

	
Gary R Semro and Robert W. Semro

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.  

Sec 2: Lots 7,8,9,10 Less Tract (see lease)   

Sec 2: 15,16,17 & 18

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
333.57

	
11.56

	
0.52

	
80.00%

	
20102843

	
Sharon A. Fitzgerald

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.  

Sec 2: Lots 7, 8, 9, 10 less tract (see lease)   

Sec 2: 15,16,17,18

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
333.57

	
11.56

	
0.52

	
80.00%

	
20103144

	
Sharon A. Fitzgerald

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assesor's Tract # 69    

Sec 21: Lots 3, 6, 7 & 10

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.88

	
17.59

	
0.79

	
80.00%

	
20103138

	
Sharon A. Fitzgerald

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.       

Assessor's Tract # 70   

Sec 21: Lots 4 & 5

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
82.44

	
9.16

	
0.41

	
80.00%

	
20103139

	
Sharon A. Fitzgerald

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 82        

Sec 26: Lots 11, 12, 13, & 14       

Sec 27: Lots 2, 7, 8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
330.85

	
26.04

	
1.17

	
80.00%

	
20103141

	
Sharon A. Fitzgerald

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.   

Assessors Tract # 83    

Sec 27: Lots 5,6,10,11,12,14,15,16  

Sec 34: Lots 2,3 less acreage 

Sec 35, (see lease)

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
409.65

	
16.12

	
0.73

	
80.00%

	
20103142

	
Sharon A. Fitzgerald

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Assessor's Tract # 105      

Sec 21: Lots 1,2,8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.97

	
12.98

	
0.58

	
80.00%

	
20103143

 

 

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T6N-R103W, 6th P.M.

Sec 31: Lots 7,8,9, NESW, SE 

T6N-R90W, 6th P.M.       

Sec 14: Lots 3, 4, 6  

T6N-R91W, 6th P.M.     

Sec 9: Lots 8, 9, 16       

Sec 10: Lots 4, 5     

T6N-R92W, 6th P.M.      

Sec 13: SW     

T6N-R93W, 6th P.M.   

Sec 13: S2N2, N2S2    

T6N-R94W, 6th P.M.     

Sec 12: E2SE   

T6N-R99W, 6th P.M.      

Sec 27: SWSE, SESW    

Sec 34: NENW

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
1320.3

	
18.748

	
0.84

	
80.00%

	
20102850

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T10N-R90W, 6th P.M.    

Sec 19: Lot 18     

Sec 30: Lots 6 & 8

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
117.16

	
1.663

	
0.07

	
80.00%

	
20102851

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T3N-R91W, 6th P.M.  

Sec 8: Lots 9 & 16        

Sec 9: SW/4SW/4       

Sec 16: NW/4, NE/4SW/4

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
323.43

	
4.593

	
0.21

	
80.00%

	
20102852

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T4N-R91W, 6th P.M.      

Sec 10: Tract in SESW   (0.42 acres)     

T4N-R92W, 6th P.M.      

Sec 7: Lots 9 & 10        

Sec 8: Lots 5, 9, 10, 11, 12, 13, 14   

Sec 17: Lot 2      

T4N-R101W, 6th P.M.    

Sec 14: W2NE, NW, N2SW     

T4N-R102W, 6th P.M.    

Sec 27: SE     Sec 34: NE

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
799.7

	
11.356

	
0.51

	
80.00%

	
20102853

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T5N-R94W, 6th P.M.      

Sec 7: S2SE   Sec 8: SW     

Sec 17: N2NW  Sec 18: NENE  

T5N-R94W, 6th P.M.      

Sec 9: SWNE, NWSE, S2SE      

T5N-R97W, 6th P.M.     

Sec 3: N2SE, SWSE, E2SW   

Sec 10: N2NE, NENW

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
840

	
11.93

	
0.54

	
80.00%

	
20102854

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.      

Sec 2: Lots 7, 8, 9, 10 less tract (see lease)  

Sec 2: 15,16,17,18

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
333.57

	
71.30

	
3.21

	
80.00%

	
20102855

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.  A

ssesor's Tract # 69    

Sec 21: Lots 3, 6, 7 & 10

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.88

	
0.73

	
0.03

	
80.00%

	
20102857

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.   

Assessor's Tract # 105     

Sec 21: Lots 1,2,8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
164.97

	
0.76

	
0.03

	
80.00%

	
20102858

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Assessor's Tract # 83       

Sec 27: Lots 5, 6, 10, 11, 12, 14, 15 & 16       

Sec 34: Lots 2, 3 Less acreage (see lease)

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
409.65

	
0.95

	
0.04

	
80.00%

	
20102859

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 82       

Sec 26: Lots 11, 12, 13, & 14      

Sec 27: Lots 2, 7, 8 & 9

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
330.85

	
1.53

	
0.07

	
80.00%

	
20102860

	
Eugena Grace Voloshin

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. Assessor's Tract # 70 Sec 21: Lots 4 & 5

	
5/12/2011

	
5/11/2016

5 yr lease, no ext

	
82.44

	
0.38

	
0.02

	
80.00%

	
20102861

 

 

	
R. Kirk Lyons

	
Buck Peak, LLC

	
T5N-R89W, 6th P.M.      

Sec 6: Lots 3, 5 SE4NW4   

T6N-R89W, 6th P.M.       

Sec 29: Lot 13  

Sec 31: Lot 3,5,6,11 SW4NE4, NW4SE4, NE4SW4, SE4SW4    

Sec 32: Lot 4

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
425.23

	
47.24

	
2.13

	
80.00%

	
701711

	
Ralph C. Lyons & Anna M. Lyons

	
Buck Peak, LLC

	
T5N-R89W, 6th P.M.     

Sec 6: Lots 3, 5 SE4NW4       

T6N-R89W, 6th P.M.       

Sec 29: Lot 13 

Sec 31: Lot 3,5,6,11 SW4NE4, NW4SE4, NE4SW4, SE4SW4     

Sec 32: Lot 4

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
425.23

	
141.74

	
6.38

	
80.00%

	
701713

	
Leora L. Smith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Sec 12: Lots 5,6,8,9,10,13,14,15     

Sec 24: Lots 1,2,7,8,9,10,14,15,16

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
673.54

	
154.304

	
6.94

	
80.00%

	
20102588

	
R. Kirk Lyons

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.     

Sec 12: Lots 5,6,8,9,10,13,14,15    

Sec 24: Lots 1,2,7,8,9,10,14,15,16

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
673.54

	
51.43

	
2.31

	
80.00%

	
20102589

	
Ralph C. Lyons & Anna M. Lyons

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.       

Sec 12: Lots 5,6,8,9,10,13,14,15    

Sec 24: Lots 1,2,7,8,9,10,14,15,16

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
673.54

	
154.30

	
6.94

	
80.00%

	
20102587

	
Mark E. Lyons

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 12: Lots 5,6,8,9,10,13,14,15    

Sec 24: Lots 1,2,7,8,9,10,14,15,16

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
673.54

	
51.43

	
2.31

	
80.00%

	
20102586

	
Terri Lee Smedra

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.        

Sec 12: Lots 5,6,8,9,10,13,14,15   

Sec 24: Lots 1,2,7,8,9,10,14,15,16

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
673.54

	
51.43

	
2.31

	
80.00%

	
20102585

	
Leora L. Smith

	
Buck Peak, LLC

	
T5N-R89W, 6th P.M.        

Sec 6: Lots 3, 5 SE4NW4    

T6N-R89W, 6th P.M.      

Sec 29: Lot 3     

Sec 31: Lot 3,5,6,11 SW4NE4,NW4SE4,   NE4SW4, SE4SW4   

Sec 32: Lot 4

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
425.23

	
141.72

	
6.38

	
80.00%

	
701715

	
Terri Lee Smedra

	
Buck Peak, LLC

	
T5N-R89W, 6th P.M.      

Sec 6: Lots 3, 5 SE4NW4   

T6N-R89W, 6th P.M.     

Sec 29: Lot 3    

Sec 31: Lot 3,5,6,11 SW4NE4, NW4SE4, NE4SW4, SE4SW4    

Sec 32: Lot 4

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
425.23

	
47.24

	
2.13

	
80.00%

	
701712

	
Mark E. Lyons

	
Buck Peak, LLC

	
T5N-R89W, 6th P.M.      

Sec 6: Lots 3, 5 SE4NW4   T6N-R89W, 6th P.M.      

Sec 29: Lot 13    

Sec 31: Lot 3,5,6,11 SW4NE4, NW4SE4, NE4SW4, SE4SW4    

Sec 32: Lot 4

	
6/1/2011

	
5/31/2014

3 yr lease, 

2 yr ext (2016)

	
425.23

	
51.43

	
2.31

	
80.00%

	
701714

 

 

	
Thomas J. Knez

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Sec 21: Lot 16     

Sec 22: Lots 12 & 13

	
7/10/2011

	
7/09/2016

5 yr lease, 

3 yr ext (2019)

	
122.97

	
20.50

	
0.92

	
80.00%

	
20102823

	
Helen P. Knez

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 27: Lots 3 & 4      

Sec 28: Lot 1

	
7/17/2011

	
7/16/2016

5 yr lease, 

3 yr ext (2019)

	
122.93

	
20.5

	
0.92

	
80.00%

	
20103517

	
Gregory J. Knez, Trustee of the Raymond M. & Hellen M. Knez Family Trust

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.   

Sec 21: Lots 11, 14, 15 & 16    

Sec 22: Lots 12 & 13        

Sec 27: Lots 3 & 4      

Sec 28: Lot 1

	
3/21/2011

	
3/20/2016

5 yr lease, 

3 yr ext (2019)

	
369.39

	
61.58

	
2.77

	
80.00%

	
20103025

	
Kathy Peters

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Sec 35: Lots 9,10 11,12,13,14,15,16 (S/2)

	
7/31/2011

	
7/30/2014

3 yr lease, 

3 yr ext (2017)

	
331.00

	
110.56

	
4.98

	
80.00%

	
20103518

	
Barbara L. Wilaby

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 12: Lots1,2,3,5,6,7,8,9,10,12,13,14,15

	
10/31/2008   

3 years + 2 year ext option

	
10/30/2013

	
493.56

	
208.12

	
9.37

	
80.00%

	
20090483

	
Barbara L. Wilaby

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 13: Lots 2,3,4, less tract

	
10/31/2008   

3 years + 2 year ext option

	
10/30/2013

	
130.10

	
30.23

	
1.36

	
80.00%

	
20090484

	
Rex Ross Walker

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 34: Lots 1, 7,8,9,10,11,12,13,14,15,16

	
12/18/2008  

3 years + 2 year ext option

	
12/17/2013

	
351.36

	
26.24

	
1.18

	
80.00%

	
20090151

	  	  	  	  	
EXTENDED

	  	  	
128.32

	  	  
	
Margaret Keith

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.      

Sec 2: Lots 7,8,9,10 less tract (see lease)   

Sec 2: 15,16,17,18

	
9/30/2008     

5 years + 3 year ext option

	
9/29/2013

	
333.57

	
11.560

	
0.52

	
80.00%

	
20084242

	
Margaret Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 105   

Sec 21: Lots 1, 2, 8, and 9

	
9/30/2008  

5 years + 3 year ext option

	
9/29/2013

	
164.97

	
12.98

	
0.58

	
80.00%

	
20084243

	
Margaret Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Assessor's Tract # 83       

Sec 27: Lots 5, 6, 10, 11, 12, 14, 15 & 16       

Sec 34: Lots 2, 3 Less acreage (see lease)

	
9/30/2008    

5 years + 3 year ext option

	
9/29/2013

	
409.65

	
16.12

	
0.73

	
80.00%

	
20084244

	
Margaret Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 82      

Sec 26: Lots 11, 12, 13, & 14      

Sec 27: Lots 2, 7, 8 & 9

	
9/30/2008   

5 years + 3 year ext option

	
9/29/2013

	
330.85

	
26.04

	
1.17

	
80.00%

	
20084245

 

 

 

	
Margaret Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 70   

Sec 21: Lots 4 & 5

	
9/30/2008     

5 years + 3 year ext option

	
9/29/2013

	
82.44

	
9.16

	
0.41

	
80.00%

	
20084246

	
Margaret Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.  

Assesor's Tract # 69    

Sec 21: Lots 3, 6, 7 & 10

	
9/30/2008    

5 years + 3 year ext option

	
9/29/2013

	
164.88

	
17.59

	
0.79

	
80.00%

	
20084247

	
James W. Keith

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.      

Sec 2: Lots 7,8,9,10 less tract (see lease)   

Sec 2: 15,16,17,18

	
9/30/2008    

5 years + 3 year ext option

	
9/29/2013

	
333.57

	
3.86

	
0.17

	
80.00%

	
20084241

	
James W. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 105   

Sec 21: Lots 1, 2, 8, and 9

	
9/30/2008 - 2013    

5 years + 3 year ext option

	
9/29/2013

	
164.97

	
4.33

	
0.19

	
80.00%

	
20084240

	
James W. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Assessor's Tract # 83       

Sec 27: Lots 5, 6, 10, 11, 12, 14, 15 & 16       

Sec 34: Lots 2, 3 Less acreage (see lease)

	
9/30/2008   

5 years + 3 year ext option

	
9/29/2013

	
409.65

	
5.37

	
0.24

	
80.00%

	
20084239

	
James W. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 82       

Sec 26: Lots 11, 12, 13, & 14      

Sec 27: Lots 2, 7, 8 & 9

	
9/30/2008  

 5 years + 3 year ext option

	
9/29/2013

	
330.85

	
8.68

	
0.39

	
80.00%

	
20084238

	
James W. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 70   

Sec 21: Lots 4 & 5

	
9/30/2008   

5 years + 3 year ext option

	
9/29/2013

	
82.44

	
3.05

	
0.14

	
80.00%

	
20084237

	
James W. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.  

Assesor's Tract # 69    

Sec 21: Lots 3, 6, 7 & 10

	
9/30/2008  

5 years + 3 year ext option

	
9/29/2013

	
164.88

	
5.86

	
0.26

	
80.00%

	
20084236

	
Charles S. Keith

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.      

Sec 2: Lots 7,8,9,10 less tract (see lease)   

Sec 2: 15,16,17,18

	
9/30/2008     

5 years + 3 year ext option

	
9/29/2013

	
333.57

	
3.86

	
0.17

	
80.00%

	
20084235

	
Charles S. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 105   

Sec 21: Lots 1, 2, 8, and 9

	
9/30/2008 

 5 years + 3 year ext option

	
9/29/2013

	
164.97

	
4.33

	
0.19

	
80.00%

	
20084234

	
Charles S. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Assessor's Tract # 83       

Sec 27: Lots 5, 6, 10, 11, 12, 14, 15 & 16       

Sec 34: Lots 2, 3 Less acreage (see lease)

	
9/30/2008    

5 years + 3 year ext option

	
9/29/2013

	
409.65

	
5.37

	
0.24

	
80.00%

	
20084233

 

 

	
Charles S. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 82       

Sec 26: Lots 11, 12, 13, & 14      

Sec 27: Lots 2, 7, 8 & 9

	
9/30/2008  

5 years + 3 year ext option

	
9/29/2013

	
330.85

	
8.68

	
0.39

	
80.00%

	
20084232

	
Charles S. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 70   

Sec 21: Lots 4 & 5

	
9/30/2008     

5 years + 3 year ext option

	
9/29/2013

	
82.44

	
3.05

	
0.14

	
80.00%

	
20084231

	
Charles S. Keith

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.  

Assesor's Tract # 69    

Sec 21: Lots 3, 6, 7 & 10

	
9/30/2008    

5 years + 3 year ext option

	
9/29/2013

	
164.88

	
5.86

	
0.26

	
80.00%

	
20084230

	
Debra A Ziehm

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.      

Sec 2: Lots 7,8,9,10 less tract (see lease)  

Sec 2: 15,16,17,18

	
9/30/2008    5 years + 3 year ext option

	
9/29/2013

	
333.57

	
3.86

	
0.17

	
80.00%

	
20084253

	
Debra A Ziehm

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 105   

Sec 21: Lots 1, 2, 8, and 9

	
9/30/2008 - 2013    

5 years + 3 year ext option

	
9/29/2013

	
164.97

	
4.33

	
0.19

	
80.00%

	
20084252

	
Debra A Ziehm

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Assessor's Tract # 83       

Sec 27: Lots 5, 6, 10, 11, 12, 14, 15 & 16       

Sec 34: Lots 2, 3 Less acreage (see lease)

	
9/30/2008    

5 years + 3 year ext option

	
9/29/2013

	
409.65

	
5.37

	
0.24

	
80.00%

	
20084251

	
Debra A Ziehm

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 82       

Sec 26: Lots 11, 12, 13, & 14      

Sec 27: Lots 2, 7, 8 & 9

	
9/30/2008   

5 years + 3 year ext option

	
9/29/2013

	
330.85

	
8.68

	
0.39

	
80.00%

	
20084250

	
Debra A Ziehm

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M. 

Assessor's Tract # 70   

Sec 21: Lots 4 & 5

	
9/30/2008    

5 years + 3 year ext option

	
9/29/2013

	
82.44

	
3.05

	
0.14

	
80.00%

	
20084249

	
Debra A Ziehm

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.  

Assesor's Tract # 69    

Sec 21: Lots 3, 6, 7 & 10

	
9/30/2008     

5 years + 3 year ext option

	
9/29/2013

	
164.88

	
5.86

	
0.26

	
80.00%

	
20084248

	
Jim F. Kowach

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 12: Lots 1,2,3,5,6,7,8,9,10,12,13,14,15    

Sec 13: Lots 2,3,4, less tract (see lease)

	
10/31/2008

	
10/30/2013

	
635.00

	
238.35

	
10.73

	
80.00%

	
20084634

	
Robert Deakins

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 35: S/2

	
12/8/2008   

 5 years + 3 year ext option

	
12/7/2013

	
331.70

	
6.91

	
0.31

	
80.00%

	
20090152

	
Richard Deakins

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 35: S/2

	
12/8/2008     

5 years + 3 year ext option

	
12/7/2013

	
331.70

	
6.91

	
0.31

	
80.00%

	
20090482

 

 

	
Kathleen Seely Brennise

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.     

Sec 28: Tract in Lots 11, 12, 14   

Sec 31: Lots 5,6,11-14, 19,20, W/2        

Sec 32 Lots 7,10-14      

Sec 33:Tract in E2W2    

Sec 34: Lots 1, 7-16

	
1/29/2009   

5 years + 3 year ext option

	
1/28/2014

	
1507.93

	
145.69

	
6.56

	
80.00%

	
20091152

	
Bruce H. and Ann C. Seely

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.     

Sec 28: Tract in Lots 11, 12, 14   

Sec 31: Lots 5,6,11-14, 19,20, W/2        

Sec 32 Lots 7,10-14      

Sec 33:Tract in E2W2    

Sec 34: Lots 14, 15, 16

	
3/1/2009    

5 years + 3 year ext option

	
2/28/2014

	
1179.60

	
15.00

	
0.68

	
80.00%

	
20091997

	
Bruce H. Seely

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.     

Sec 28: Tract in Lots 11, 12, 14   

Sec 31: Lots 5,6,11-14, 19,20, W/2       

Sec 32 Lots 7,10-14      

Sec 33:Tract in E2W2    

Sec 34: Lots 1, 7-16     

Sec 35: Lots 4, 5

	
3/1/2009   

 5 years + 3 year ext option

	
2/28/2014

	
1590.92

	
146.56

	
6.60

	
80.00%

	
20091998

	
David R. and Shirley M. Seely

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.    

Sec 6: Lot 7       

Sec 31: Lots 5,6,11-14, 19,20, W/2        

Sec 32 Lots 7,10-14      

Sec 33:Tract in E2W2    

Sec 34: Lots 1, 7-16     

Sec 35: Lots 4, 5

	
3/1/2009

 5 years + 3 year ext option

	
2/28/2014

	
1465.72

	
292.60

	
13.17

	
80.00%

	
20092472

	
Walter D. Spetter

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Sec 35: Lots 9,10 11,12,13,14,15,16 (S/2)

	
3/5/2009    

5 years + 3 year ext option

	
3/4/2014

	
331.70

	
13.820

	
0.62

	
80.00%

	
20092059

	
Donna McMullen

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.      

Sec 35: Lots 9,10 11,12,13,14,15,16 (S/2)

	
3/5/2009     

5 years + 3 year ext option

	
3/4/2014

	
331.70

	
13.82

	
0.62

	
80.00%

	
20092058

	
DR Seely, LLC an Idaho Limited Liability Company

	
Buck Peak, LLC

	
T6N-R90W, 6th P.M.     

Sec 31: Lots 5,6,11-14, 19,20, W/2        

Sec 32 Lots 7,10-14   

Sec 34: Lots 1, 7-16    

Sec 35: Lots 4, 5

	
3/5/2009  

5 years + 3 year ext option

	
3/4/2014

	
1436.46

	
169.85

	
7.64

	
80.00%

	
20092471

	
Kathleen Seely Brennise

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.

Sec 3: Lots 6,7,8,9    

Sec 4: Lots 5 -13, 15, 16, 18-20   

Sec 6: Lots 12,13,14,17,18,19

	
7/9/2010

	
7/8/2015

	
1067.93

	
123.54

	
5.56

	
80.00%

	
20102826

 

	
Bruce and Ann Seely

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.   

Sec 3: Lots 6,7,8,9     

Sec 4: Lots 5 -13, 15, 16, 18-20   

Sec 6: Lots 12,13,14,17,18,19

	
7/9/2010

	
7/8/2015

	
1067.93

	
12.99

	
0.58

	
80.00%

	
20102591

	
Bruce Seely, Individually

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.   

Sec 3: Lots 6,7,8,9    

Sec 4: Lots 5 -13, 15, 16, 18-20   

Sec 6: Lots 12,13,14,17,18,19

	
7/9/2010

	
7/8/2015

	
1067.93

	
123.54

	
5.56

	
80.00%

	
20102590

	
David and Shirley Seely

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.   

Sec 3: Lots 6,7,8,9     

Sec 4: Lots 5 -13, 15, 16, 18-20   

Sec 6: Lots 12,13,14,17,18,19

	
7/9/2010

	
7/8/2015

	
1067.93

	
260.18

	
11.71

	
80.00%

	
20102827

	
D.R. Seely, LLC

	
Buck Peak, LLC

	
T5N-R90W, 6th P.M.   

Sec 3: Lots 6,7,8,9     

Sec 4: Lots 5 -13, 15, 16, 18-20   

Sec 6: Lots 12,13,14,17,18,19

	
7/9/2010

	
7/8/2015

	
1067.93

	
52.04

	
2.34

	
80.00%

	
20102825

	
Lease Serial No. COC-73459

	
Impact Energy Resources, LLC

	
T5N-R90W, 6th P.M. Section 1: Lot 5, 12, 13

	
3/1/2009

	
2/28/2019

	
125.15

	
125.15

	
5.63

	
80.00%

	  
	  	  	  	  	  	  	
1,933.86

	
87.02

	  	  

 

	  	  	  	  	  	  	  	  	  	  
	  	
 

		
 

		  	
Total Schedule 2.1 (a)

	
215.35

	  	  

 

 

SCHEDULE 2.1(b)

 

Assignment of Leases dated April ___, 2013

 

	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
BUCK PEAK LEASES AND EXPIRATION DATES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
LESSOR NAME AND ADDRESS

	 	
DESCRIPTION

	 	
DATE AND TERM

	 	 	
GROSS ACRES

	 	 	
NET ACRES

	 	 	
NET ACRES

	 	 	
NET ACRES

	 	 	
NET REVENUE INTEREST

	 	 	
RECORDING

	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	
Buck Peak LLC

	 	 	
CONVEYED

	 	 	
to be delivered 8/8ths

	 	 	 	 
	
West Half of Section 25

	 	  	 	 	 	 	 	 	 	 	 	 	 	62.5	%	 	 	100	%	 	 	 	 	 	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Jim F. Kowach

	 	
T6N-R90W, 6th P.M.    Sec 25: W/2

	 	
10/31/2008 - 2014 6 years

	 	 	 	335.54	 	 	 	167.77	 	 	 	104.86	 	 	 	104.86	 	 	 	78.5000	%	 	 	20104936	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Barbara Wilaby

	 	
T6N-R90W, 6th P.M.    Sec 25: W/2

	 	
10/31/2011 - 2014 3 years

	 	 	 	335.54	 	 	 	167.77	 	 	 	104.86	 	 	 	104.86	 	 	 	78.5000	%	 	 	20103288	 
	
Sub Total - Kowach / Wilaby

	 	
W/2 Section 25, T6N R90W

	 	 	100.00	%	 	 	335.54	 	 	 	335.54	 	 	 	209.7125	 	 	 	209.71	 	 	 	78.5000	%	 	 	 	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
East Half of Section 25

	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Mark A Voloshin, 

PO Box 981, 

Craig, CO  81626

	 	
T6N-R90W, 6th P.M.   

Assessor's Tract # 74  

Sec 25: Lots 1, 2, 7, 8, 9,10,15,16

	 	
5/12/2011- 2016 Five (5) Years

	 	 	 	335.61	 	 	 	52.83	 	 	 	33.02	 	 	 	33.02	 	 	 	78.5000	%	 	 	20103153	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Betty Arnone, 

1713 South Vancouver Ct,

Lakewood, CO  80228

	 	
T6N-R90W, 6th P.M. 

Assessor's Tract # 74 

Sec 25: Lots 1,2,7,8,9,10,15 & 16

	 	
5/12/2011- 2016 Five (5) Years

	 	 	 	335.61	 	 	 	26.41	 	 	 	16.51	 	 	 	16.51	 	 	 	78.5000	%	 	 	20102832	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Helen McKee, 

10436 Jacob Place, 

Littleton, CO  80125-8932

	 	
T6N-R90W, 6th P.M.   

Assessor's Tract # 74 

Sec 25: Lots 1, 2, 7, 8, 9, 10, 15 & 16

	 	
5/12/2011- 2016 Five (5) Years

	 	 	 	335.61	 	 	 	26.41	 	 	 	16.51	 	 	 	16.51	 	 	 	78.5000	%	 	 	20102839	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Gary R Semro and Robert W. Semro,

 6522 Trailhead Rd, 

Highlands Ranch, CO  80130

	 	
T6N-R90W, 6th P.M. 

Assessor's Tract # 74 

Sec 25: Lots 1, 2, 7, 8, 9, 10, 15 & 16

	 	
5/12/2011- 2016 Five (5) Years

	 	 	 	335.61	 	 	 	26.41	 	 	 	16.51	 	 	 	16.51	 	 	 	78.5000	%	 	 	20102847	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Sharon Fitzgerald (Hebenstreit), 337 Coronado Drive, 

Sedalia, CO  80135

	 	
T6N-R90W, 6th P.M.   

Assessor's Tract # 74    

Sec 25: Lots 1, 2, 7, 8, 9,10,15,16

	 	
5/12/2011- 2016 Five (5) Years

	 	 	 	335.61	 	 	 	26.41	 	 	 	16.51	 	 	 	16.51	 	 	 	78.5000	%	 	 	20103140	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Brad Ocker (Eugena Grace Voloshin), 

9591 County Rd 33, 

Craig, CO  81625

	 	
T6N-R90W, 6th P.M. 

Assessor's Tract # 74 

Sec 25: Lots 1, 2, 7, 8, 9,10,15,16

	 	
5/12/2011- 2016 Five (5) Years

	 	 	 	335.61	 	 	 	8.55	 	 	 	5.34	 	 	 	5.34	 	 	 	78.5000	%	 	 	20102856	 
	
Sub Total - Semro / Voloshin

	 	
E/2 Section 25, T6N R90W

	 	 	49.7661	%	 	 	335.61	 	 	 	167.02	 	 	 	104.3875	 	 	 	104.39	 	 	 	78.5000	%	 	 	 	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
BCK LLC

Charles S Keith

	 	
T6N-R90W, 6th P.M. A

ssessor's Tract # 74 Sec 25: 

Lots 1, 2, 7, 8, 9,10,15,16

	 	
2/22/2011 - 2014 3 years + 2 yr ext

	 	 	 	335.61	 	 	 	41.43	 	 	 	25.90	 	 	 	25.90	 	 	 	77.5000	%	 	 	20111728	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Strontia springs Resources, LLC

James Keith

	 	
T6N-R90W, 6th P.M. 

Assessor's Tract # 74 

Sec 25: Lots 1, 2, 7, 8, 9,10,15,16

	 	
2/22/2011 - 2014 3 years + 2 yr ext

	 	 	 	335.61	 	 	 	41.43	 	 	 	25.90	 	 	 	25.90	 	 	 	77.5000	%	 	 	20111730	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
JZTZ LLC 

Debra Ann Ziehm

	 	
T6N-R90W, 6th P.M. 

Assessor's Tract # 74 

Sec 25: Lots 1, 2, 7, 8, 9,10,15,16

	 	
2/22/2011 - 2014 3 years + 2 yr ext

	 	 	 	335.61	 	 	 	41.43	 	 	 	25.90	 	 	 	25.90	 	 	 	77.5000	%	 	 	20111729	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
MKRESOURCES LLC

Margaret Keith

	 	
T6N-R90W, 6th P.M.

Assessor's Tract # 74

Sec 25: Lots 1, 2, 7, 8, 9,10,15,16

	 	
2/22/2011 - 2014 3 years + 2 yr ext

	 	 	 	335.61	 	 	 	26.41	 	 	 	16.51	 	 	 	16.51	 	 	 	77.5000	%	 	 	20111731	 
	
Sub Total - Keith

	 	
E/2 Section 25, T6N R90W

	 	 	44.9075	%	 	 	335.61	 	 	 	150.71	 	 	 	94.20	 	 	 	94.20	 	 	 	77.5000	%	 	 	 	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	  	 	
Ownership %

	 	 	
Gross Acres

	 	 	
Net Acres

	 	 	
Buck Peak Net

	 	 	
Conveyed

	 	 	
NRI% Delivered

	 	 	 	 	 
	
West Half of Section 25

	 	  	 	 	100.0000	%	 	 	335.54	 	 	 	335.54	 	 	 	209.71	 	 	 	209.71	 	 	 	78.5000	%	 	 	 	 
	
East Half of Section 25

	 	  	 	 	94.6736	%	 	 	335.61	 	 	 	317.73	 	 	 	198.58	 	 	 	198.58	 	 	 	78.0257	%	 	 	 	 
	
SECTION 25 TOTAL

	 	  	 	 	97.3365	%	 	 	671.15	 	 	 	653.27	 	 	 	408.30	 	 	 	408.30	 	 	 	78.2693	%	 	 	 	 

 

 

 

 

 

Schedule 2.1(d) - Contracts

 

 

That certain Joint Operating Agreement by and between Premier Energy Partners (and others) and Quicksilver Resources Inc. dated July 27, 2010.

 

 

 

 

 

 

Schedule 2.1(e) - Seismic Data & Interpretations

 

2D Petrel Line 101

2D Line 0-2

2D Line 0-27

2D Gulfport BP6

 

and all associated geolologic, engineering, seismic data and work papers associated with the lands

  

 

 

Schedule 4.1(e)

 

Transfer Requirements

 

None.

 

 

 

 

 

EXHIBIT 5.1

CONVEYANCE, ASSIGNMENT AND BILL OF SALE

THIS CONVEYANCE, ASSIGNMENT  AND BILL OF SALE (this "Conveyance"), entered into as of April _, 2013, by and between Premier Energy Partners (I), LLC, a Colorado limited liability company ("Assignor"), and PetroShare Corp., a Colorado corporation ("Assignee"). Assignor and Assignee are referred to collectively herein as the "Parties."

RECITALS:

WHEREAS, Assignor is a party to the Leases attached hereto as Exhibit A (the "Leases");

WHEREAS, Assignor, as "Seller," and Assignee, as "Buyer," are parties to an Asset Purchase Agreement dated April _, 2013 (the "Purchase Agreement"), pursuant to which, subject to the terms and conditions set forth therein, Assignee will purchase substantially all of the assets of Assignor, including all of Seller's right, title and interest in, under and to the Leases; and

WHEREAS, simultaneously with the closing of the transactions contemplated by the Purchase Agreement, the Parties mutually desire that Assignor assign all of its right, title and interest in, under and to the Leases to Assignee on the terms and conditions hereinafter set forth.

NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and adequacy of which are expressly acknowledged, the Parties agree as follows:

1.   Effective Date. For all purposes under this Agreement, the term "Effective Date" shall mean that date, if any, on which the closing of the transactions contemplated by the Purchase Agreement is consummated.

2.   Assignment and Conveyance.  Effective as of the Effective Date, Assignor hereby assigns, bargains, sells, grants, transfers and conveys unto Assignee all of Assignor's right, title and interest in, under and to the following:

(a)  the Leases more particularly described on Exhibit A attached hereto and incorporated herein by this reference;

(b)  the land covered by, or subject to, or pooled or unitized with the Leases (the "Land");

(c)  the oil, gas and other hydrocarbons ("Hydrocarbons") in, on, under or produced from or attributable to the Land;

 

1

 

(d)  the contracts and contractual rights, obligations, and interests described in Exhibit B, and to the extent transferable, all other material contracts and contractual rights, obligations, and interests, including but not limited to all farmout and farmin agreements, operating agreements, surface use agreements, lease agreements, and other contracts or agreements  covering or affecting the Land or the Leases (collectively the "Contracts"); and

 

(e)  to the extent attributable to the Leases, Land, or Contracts:  (i) all rights with respect to the use and occupancy of the surface of and the subsurface depths under the Lands; (ii) all agreements and contracts, easements, rights-of-way, servitudes, and other estates; and (iii) all real and personal property located in or upon the Land or used in connection with the exploration, development or operation of the Leases.

3.    Bill of Sale.  Effective as of the Effective Date, Assignor hereby assigns, bargains, sells, grants, transfers and conveys unto Assignee all of Assignor's right, title and interest in, under and to the following (the "Records"):

(a)  data and information and copies of all 2D seismic data and interpretations thereof covering the Land, together with the shot records and digital data suitable for reprocessing, any planned or permitted 2D or 3D seismic shoot covering the Lands or parts thereof; and

(b)  any and all lease files, title files, land files, division order files, marketing files, well files, abstracts, title opinions, production records, seismic, geological, geophysical and engineering data, and all other files, maps and data (in whatever form) arising out of or relating to the Leases, Land, or Contracts.

4.    Assignor's Representations  & Warranties.  Assignor represents and warrants to Assignee that:

(a)  Assignor is the lawful owner of and has good and marketable title to the Leases;

(b)  Assignor will forever defend title to the Leases unto Assignee against the claims and demands of all persons claiming, or to claim the same, or any part thereof, by, through or under Assignor, but not otherwise;

(c)  Assignor has the power and authority to convey the Leases; and

(d)  the Leases are valid and subsisting leases.

5.    Purchase Agreement.  The Purchase Agreement contains certain representations, warranties, covenants and agreements between the parties, some of which survive the delivery of this Assignment, as provided therein and shall not be merged into this Conveyance or be otherwise negated by the execution or delivery of this Conveyance.  This Conveyance shall not be construed to amend the Purchase Agreement or vary the rights or obligations of either Assignor or Assignee from those set forth in the Purchase Agreement.  In the event of any conflict between this Conveyance and the Purchase Agreement, the terms of the Purchase Agreement shall control.

 

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6.    Miscellaneous.

(a)  Headings. The section headings used herein are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

(b)  Governing law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado.

(c)  Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument.

(d)  Binding Effect. The terms, covenants and conditions hereof shall be binding upon, and shall inure to the benefit of, Assignor and Assignee and their respective heirs, successors and assigns.  Such terms, covenants and conditions shall be covenants running with the land described herein and with the Leases and with each transfer or assignment of said land or the Leases.

TO HAVE AND TO HOLD unto the Assignee, its successors and assigns forever.

 

	 	
ASSIGNOR:

 

PREMIER ENERGY PARTNERS (I), LLC, a

Colorado limited liability company

	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

[ACKNOWLEDGEMENTS ON FOLLOWING PAGE]

 

 

 

3

 

 

	STATE OF COLORADO	 	)	 
	 	 	)ss.	 
	COUNTY OF 	 	)	 

 

The foregoing instrument was acknowledged before me this  ______  day of April, 2013 by ________________________________, as _________________________________  of Premier Energy Partners (I), LLC, on behalf of the company.

 

 

	 	 	 
	 	Notary Public	 

 

 

	My commission expires:	 	.
	 	 	 

 

4

 

EXHIBIT A

 

Leases

 

 

 

See Attached

 

 

5

 

 

 

EXHIBIT B

 

Contracts

 

 

 

That certain Joint Operating Agreement by and between Premier Energy Partners (and others) and Quicksilver Resources Inc. dated July 27, 2010.

 

 

 

 

 

 

 

 

 

Exhibit 6.2(b) 

 

 

AFFIDAVIT OF NONFOREIGN STATUS

Section 1445 of the Internal Revenue Code provides that a buyer of a United States real property interest must withhold tax if the seller is a foreign person.  To inform PetroShare Corp (“Buyer”) that withholding of tax is not required upon the disposition of a United States real property interest owned by Premier Energy Partners (I) LLC, the undersigned hereby certifies the following on behalf of Premier Energy Partners (I) LLC:

	
1.  

	
Premier Energy Partners (I) LLC is not a non-resident alien, foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);

	
2.  

	
The United States employer identification number of  Premier Energy Partners (I) LLC is ___________________; and

	
3.  

	
The office address of  Premier Energy Partners (I) LLC is:

P.O. Box 2328

Littleton, CO  80161

It is understood that this certification may be disclosed to the Internal Revenue Service by Buyer and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalties of perjury I declare that I have examined this certification and it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of  Premier Energy Partners (I) LLC.

Executed on _____________, 2013.

 Premier Energy Partners (I) LLC

 

___________________________________

Name:  _____________________________

Title:  ______________________________

 

 

 

Exhibit 8.10

 

Allocation of Purchase Price

 

 

 

100% to leasehold interests

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