Document:

ex10-1.htm

Exhibit 10.1

ASSIGNMENT AND ASSUMPTION AGREEMENT

This Assignment and Assumption Agreement (the “Agreement”) is executed as of this 16th day of April, 2010, by and between Knox County Minerals, LLC (the “Transferor”), a Delaware limited liability company and Next Generation Energy Corp (f/k/a Next Generation Media Corp), a Nevada corporation (the “Transferee”).

RECITALS

A.           Transferor wishes to transfer to Transferee, and Transferee wishes to acquire from Transferor, Transferor’s entire interest (the “Purchased Interest”) in that certain Real Estate Purchase Option (the “Option”) dated as of March 25, 2010, and entered into between James R. Golden and John C. Slusher, collectively as “Seller,” and Transferor as “Buyer,” in exchange for the consideration set forth herein; and

B.           Transferee wishes to purchase the Purchased Interest from the Transferor in accordance with the terms and conditions herein.

Now therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.            Assignment and Assumption.  Effective as of date hereof (the “Effective Date”), Transferor hereby assigns, transfers and conveys to Transferee all of Transferor’s right, title and interest in the Purchased Interest, including all Transferor’s rights under the Option, including but not limited to Transferor's right to acquire the Property (as defined in the Option).  Transferee hereby assumes as of the Effective Date, all of Transferor’s obligations under the Option formerly held by Transferor as well as all obligations of any form or nature whatsoever of Transferor with respect to the Purchased Interest.

2.            Purchase Price.  Transferee shall pay the Transferor the following as the full purchase price for the Purchased Interest:

(a)   Six hundred thousand dollars ($600,000) in the form of a promissory note in the form attached hereto as Exhibit A (the “Note”);

(b)   An 9% overriding royalty interest for all of the gross gas that is produced from the Property by the deed in the form attached hereto as Exhibit B (the “Deed”); and

(c)   One parcel identified as Tract No. 20 on Exhibit A (Special Warranty Deed) to the Option, without encumbrance and in fee (the “Retained Property”) as revealed in the Deed.

 

  

  

  

 

3.            Representations and Warranties of Transferor and Transferee.  Each of Transferor and Transferee represents and warrants to one another that:

(a)           the transfer of the Purchased Interest will not violate Federal, state or foreign securities or “blue sky” laws applicable to the representing party;

(b)           the transfer of the Purchased Interest does not require prior governmental or regulatory consent;

(c)           it has the full power, authority and legal right to execute and deliver this Agreement;

(d)           it has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

(e)           this Agreement has been duly executed and delivered by it;

(f)           this Agreement is valid, binding and enforceable against it in accordance with its terms; and

(g)           the Agreement does not and will not (i) violate any statute, law, rule, regulation, judicial order or decree or arbitration finding applicable to it, (ii) breach any of its charter instruments or (iii) breach, with or without notice or passage of time, or both, any agreement or undertaking to which it or any of its subsidiaries is a party or by which it is bound.

4.            Representations, Warranties and Covenant of Transferor.  Transferor further represents, warrants and covenants to the Transferee that:

(a)           Transferor’s interest in the Purchased Interest is not subject to any prior sale, transfer, pledge, conveyance, assignment, participation interest or other encumbrance of any kind; and

(b)           this Agreement constitutes the only understanding, oral or written, entered into by Transferor with respect to the transfer of the Purchased Interest as of the date of execution hereof (other than any related agreement between Transferor and Transferee relating to the consideration for the transfer of the Purchased Interest).

5.            Covenants of Transferee.  Transferee covenants as follows:

(a)   Transferee shall exercise commercially reasonable diligence in obtaining financing of approximately $2.1 million to permit Transferee to exercise the Option, obtain the Property and make the payments provided for in the Note.

(b)   Transferee shall immediately upon exercise of the Option:

 

  

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(i)   enter into Deed which, among other things, provides for a 9% overriding royalty interest on the Property payable to Transferor and its assigns;

(ii)   enter into a mortgage in the form attached hereto as Exhibit C which shall secure the obligation to pay the Note and which shall be senior to all other mortgages on the Property; and

(iii)          enter into the Deed which, among other things, provides for the Retained Property to be titled in the name of the Transferor.

6.             Further Assurances.  From time to time after the assignment provided for herein, Transferor and Transferee shall execute and deliver such documents, instruments and certificates as may reasonably be requested to more effectively confirm and evidence this Agreement and the transfer of the Purchased Interest, and to otherwise carry out the purpose and intent of this Agreement.

7.             Binding Effect; Benefits; Assignment.  No party hereto may assign its rights or obligations hereunder without the express written consent of the other parties, and any purported such assignment not in compliance herewith shall be null and void.  All of the terms of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by and against the parties hereto and their respective successors and authorized assigns.  Nothing in this Agreement, express or implied, is intended to confer upon any other person any rights or remedies under or by reason of this Agreement, except as expressly indicated in this Agreement.

8.             Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Virginia without regard to any otherwise applicable principles of conflicts of laws.

9.             Counterparts.  This Agreement may be executed in one or more counterparts and by facsimile, each of which when so executed shall be deemed to be an original, all of which shall together constitute one and the same instrument.

10.           Expenses.  Each party shall pay its own respective expenses, costs, and fees (including attorneys’ and accountants' fees and disbursements) incurred in connection with the negotiation, preparation, execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement.

11.           Entire Agreement.  This Agreement represents the entire agreement between Transferor and Transferee with respect to the subject matter hereof and incorporates herein any prior representations, warranties and agreements (oral or written) with respect thereto.

12.           Amendment and Waiver.  This Agreement may not be amended, modified, superseded, or canceled, nor any of the terms, covenants. representations, warranties or conditions of this Agreement waived,  in each case without a written instrument executed by the parties hereto or, in the case of a waiver, by or on behalf of the party waiving compliance.  The failure of any party at any time to require performance of any provision of this Agreement shall not affect the right of that party at a later time to enforce the same.  No waiver by any party of any condition or breach of any term, covenant, representation, or warranty contained in this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of the condition or of any breach of the term, covenant, representative or warranty or any other term, covenant, representation, or warranty set forth in this Agreement.

 

  

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13.           Severability.  Any provision, or clause thereof, of this Agreement that shall be found to be contrary to applicable law or otherwise unenforceable shall not affect the remaining terms of this Agreement, which shall be construed as if the unenforceable provision, or clause thereof, were absent from this Agreement.

14.           Headings.  The headings of the sections and subsections of this Agreement have been inserted for convenience of reference only and shall not restrict or otherwise modify any of the terms or provisions of this Agreement.

15.           Interpretation.  Unless the context of this Agreement clearly requires otherwise:  (i) references to the plural include the singular, the singular the plural, and the part the whole, (ii) references to one gender include all genders, (iii) “or” has the inclusive meaning frequently identified with the phrase “and/or,” (iv) “including” has the inclusive meaning frequently identified with the phrase “but not limited to” or “without limitation,” and (v) references to “hereunder,” “herein” or “hereof” relate to this Agreement as a whole.  Any reference herein to any agreement, including this Agreement, shall be deemed to include such agreement as it may be modified, varied, amended or supplemented from time to time.  Any reference herein to any person or entity shall be deemed to include the heirs, personal representatives, successors and permitted assigns of such person or entity.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

	  	
NEXT GENERATION ENERGY CORP

	  
	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/ Darryl Reed

	  
	  	
Name:

	
Darryl Reed

	  
	  	
Title:

	
CEO

	  
	  	  	  	  
	  	  	  	  
	  	
KNOX COUNTY MINERALS, LLC

	  
	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/ Joel Patrick Sens

	  
	  	
Name:

	
Joel Patrick Sens

	  
	  	
Title:

	
Managing Member

	  

 

  

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Exhibit A

PROMISSORY NOTE

 

 

 

 

  

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EXHIBIT B TO ASSIGNMENT AND ASSUMPTION AGREEMENT

SPECIAL WARRANTY DEED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7ex10-2.htm

Exhibit 10.2

 

REAL ESTATE PURCHASE OPTION

Option to purchase (the “Option”) granted March 25, 2010, by JAMES R. GOLDEN AND JOHN C. SLUSHER (hereinafter “SELLER”) of 402 Tennessee Avenue, Pineville, Kentucky  40977, and KNOX COUNTY MINERALS, LLC, a Delaware limited liability company qualified to do business in Kentucky (hereinafter “BUYER”), of  600 Cameron Street Alexandria Virginia 22314,

1.  GRANT OF OPTION. SELLER, for the option price of $150,000.00 (the “Option Price”), receipt of which is acknowledged, grants to BUYER the exclusive option to purchase all of the OIL & GAS (including coal bed methane) underlying the former D.D.Stewart property (the “Property”) owned or to be acquired by SELLER in Knox County Kentucky, including the oil & gas interests which Seller acquired from Dan Stewart, Jr., and his wife, Betsy Stewart, by deed dated January 10, 2009, and of record in Deed Book 375, page 158, of the Knox County Court Clerk’s office and the oil & gas interests which are to be acquired by Seller from the Estate of William Stewart, Chet Care Administrator, pursuant to contract dated November 20, 2009, but excepting however, (i) all minerals and mining rights other than oil and gas and (ii) the surface and any and all surface rights, which shall be retained by SELLER.

2.  OPTION.  The option shall be for a period of one hundred eighty (180) days beginning on the date this option is executed by SELLER, and terminating at midnight of the one hundred eightieth day thereafter (including the said beginning date), except that BUYER may, at its option, extend the option period for a maximum of two (2) additional 30 day periods by payment of the sum of $20,000.00 (the “Extension Payment”) to SELLERS for each such 30 day extension, such payment to be made prior to the expiration hereof.  The said Option Price and the Extension Payment(s), if made, are non-refundable, but shall be credited to the selling price at closing.

 

  

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3.  EXERCISE.  This option may be exercised at any time during the option period by written notice to SELLER delivered or mailed to SELLER at the address as set forth in paragraph 11 hereof.

4.  PURCHASE PRICE.  The purchase price for the property is $1,575,000.00, payable in cash or its equivalent at closing, less the Option Price paid to Seller upon execution hereof and any Extension Payment made pursuant to paragraph 2 hereof.   Of the above proceeds, the sum of $75,000 shall be paid at closing to Minerals East, LLC, or its assigns, per BUYER’s contract with Minerals East, LLC.

5.  FAILURE TO EXERCISE.  If BUYER fails to exercise this option, SELLER shall retain the Option Price paid for the Option and any Extension Payment paid for extension thereof, and, except for any unfulfilled obligation of BUYER under paragraph 8 hereof, neither party shall have any further rights or claims against the other by reason of this transaction.

6.  CLOSING DATE.  The closing finally consummating this transaction shall be twenty five (25) days after BUYER gives notice of intent to exercise this Option, unless extended by mutual agreement.

7.  DEED AND TITLE.    If BUYER exercises this option, SELLER shall convey title to the property by Special Warranty deed substantially in the form attached hereto as Exhibit A.  This Option contract is for a sale in gross and not by acre, without warranty of title other than a special warranty, and SELLER expressly disclaims all other warranty or representation, including, without limitation, any warranty of condition or warranty as to the presence, quantity or quality or location of any gas or oil within the Property.  In the event there should be any deficiency of title or acreage in any of the tracts subject to this Option, such deficiency shall not impose any liability upon SELLER or in any way affect any provision of this Option; PROVIDED, however, that in the event it shall be determined before closing and delivery of deed that any mineral trespass has occurred on any portion of the Property, then SELLER shall, in addition to delivering the Special Warranty deed, assign to BUYER at closing all rights to damages for such trespass accruing from and after the date this Option is executed by BUYER, with SELLER retaining all such rights accruing prior to such date.  SELLER also reserves all rights in the Property other than oil and gas, and the Property shall be conveyed subject to the following covenant which shall be included in the Special Warranty deed:

 

  

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“The Grantor hereby reserves and excepts from this conveyance all minerals other than oil and gas, including, without limitation, all coal and the entire coal estate, as well as the surface and any surface rights or ownership.  Any and all rights herein reserved and excepted by Grantor shall inure to the benefit of and may be exercised and enjoyed by Grantor and by its successors and assigns.  It is further agreed by and between Grantor, as owner of the coal estate, and Grantee, as owner of the oil and gas estate, that in the development of their respective mineral estates, each party shall owe to the other a duty of reasonable accommodation in order to facilitate the ordinary and necessary development activities of the other to the end that both parties may develop their respective interests in the property to the maximum extent possible, having due regard for the rights and interest of the other party.  In furtherance of this duty, Grantee agrees that (i) all of the lands hereinabove described shall be considered and treated as being underlaid by coal-bearing strata within the meaning of KRS 353.050, such that all permitting of drill sites shall be carried out in accord therewith and as set forth in KRS 353.060, and (ii) Grantee shall refrain from drilling any wells or laying any pipelines on or within 150 feet in elevation above any existing strip mine bench (whether reclaimed or un-reclaimed) without the consent of the Grantors, or their successors and assigns, and (iii) no wells shall be drilled for the production of coal bed methane if such production will prevent or materially hinder the mining of a workable coal bed.  In the event that any wells are drilled in contravention of these covenants, and as a result will prevent or materially hinder the mining of a workable coal bed, the Grantor or owner or coal operator affected shall have the right and option to temporarily plug such well, or to require the well owner to do so, until the affected coal reserves are extracted.”

  

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8.   DUE DILIGENCE.  Buyer shall furnish to SELLER, at no charge, any and all information generated or obtained by BUYER in the course of performing due diligence on the Property, including, without limitation, any and all title reports, mapping, platting or survey information.  Further, in the event that BUYER shall retain the services of a third party for the purpose of locating and/or mapping the various tracts making up the Property, the product of such mapping work shall be furnished to both BUYER and SELLER by such third party as same is generated, and SELLER shall at all times have full and free access to all such information.

9.  POSSESSION.  SELLER shall deliver possession of the property as of the closing date.  During the term of this Option, Buyers shall be entitled to enter upon the property and conduct such exploration of minerals or other conditions as desired, but shall hold Seller harmless from any reclamation obligations incurred thereby.

10.  PRORATIONS.  All general and special real estate taxes and assessments as of the date of delivery of deed shall be prorated.  For this purpose, the rate and evaluation shown on last available tax bill shall be used.  At closing, the seller shall be charged with taxes up to the date of closing, and the cost of any transfer tax.  The BUYER shall pay all other recording fees, cost of any title examination preformed at its request, and including title insurance or other charges incurred by BUYER in connection with this transaction.

11.   TIME IS OF ESSENCE.  It is agreed that time is of the essence in the performance of this Option.

12.   ASSIGNMENT.  This Option may be assigned by BUYER to Next Generation Energy Corp. or a company affiliated with BUYER wherein BUYER or its principal holds an ownership interest, however, no further assignment hereof shall be made without the written consent of SELLER.

 

  

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13.  NOTICES.  Any notice under this agreement shall be delivered or sent by U.S. Mail or other carrier, postage prepaid, and addressed as follows:

 

	
SELLER:

	
James R. Golden

	  	
402 Tennessee Avenue

	  	
Pineville, Kentucky  40977

	  	  
	
BUYER:

	
Joel Sens

	  	
Knox County Minerals, LLC

	  	
600 Cameron Street

	  	
Alexandria Virginia, 22314

14.  RECORDING.  This Option shall not be recorded, but a memorandum of this Option which does not disclose the purchase price for the property shall, at Buyer’s request, be executed in recordable form and may be recorded at Buyer’s expense with the Knox County Court Clerk’s office.

15.  BINDING EFFECT.  This agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

16.  HEADINGS.  The headings used in this agreement are for convenience only and shall not be used to interpret or construe its provisions.  The provisions of this Option agreement shall be interpreted and construed in accordance with their fair meanings, and not strictly for or against either party, regardless of which party may have drafted this agreement, the attached deed, or any specific provision thereof.

17.  GOVERNING LAW.  This agreement shall be governed by and construed in accordance with the law of the Commonwealth of Kentucky.

18.  ENTIRE AGREEMENT.  This agreement supersedes all prior agreements between the parties with regard to the subject matter hereof and there are no other understandings or agreements between them.

 

  

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IN WITNESS WHEREOF, the parties hereto have signed this agreement as of the date first above written.

 

	
 

	  	
 

	
James R. Golden

	  	
John C. Slusher

	  	  	  
	
 

	  	
 

	
Heather Golden

	  	
Shirley Slusher

KNOX COUNTY MINERALS, LLC

	
BY:

	
 

	  
	
ITS:

	
 

	  

STATE OF KENTUCKY

COUNTY OF ________

The foregoing Option was acknowledged  before me this ___ day of _____________, 2010, by James R. Golden, and his wife, Heather Golden, Seller.

Witness my hand and official seal at office this ______day of ________________, 2010.

	  	
 

	  	
NOTARY PUBLIC

 

	
My commission expires:

	
 

	  

STATE OF KENTUCKY

COUNTY OF ________

The foregoing Option was acknowledged before me this _______ day of ______, 2010, by John C. Slusher and his wife, Shirley Slusher, Seller.

Witness my hand and official seal at office this ______day of ________________,2010.

	  	
 

	  	
NOTARY PUBLIC

	
My commission expires:

	
.

	  

  

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COMMONWEALTH OF VIRGINIA

COUNTY OF ARLINGTON

The foregoing OPTION was acknowledged before me on ____________________________, 2010, by Joel Patrick Sens, as Managing Member of KNOX COUNTY MINERALS, LLC, a Delaware limited liability company qualified to do business in Kentucky, for and on behalf of such company.

Witness my hand and official seal of office this ___ day of ____________, 2010.

	  	
 

	  	
NOTARY PUBLIC

	
My commission expires:

	
.

	  

 

 

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