Document:

teco_ex101.htm

 

EXHIBIT 10.1

 

 

SALES AGREEMENT

 

AGREEMENT TO PURCHASE FAILING 1500 CF DRILLING RIG

 

This agreement is made on April 15, 2011, between BMR Drilling INC., a corporation organized and existing under the laws of the State of Texas, with its principal office located at PO BOX 1942, FT Worth, Texas 76102 (“seller”), and Treaty Energy Corporation, a corporation organized and existing under the laws of the State of Nevada, with its principal office located at 201 St. Charles Ave, New Orleans, Louisiana 70170 (“buyer”).

 

SECTION ONE.

 

DESCRIPTION

 

Seller agrees to sell to buyer the following goods: Truck mounted drilling rig and all associated equipment and inventory necessary to perform well drilling activities as currently on-going by seller. Rig will be functional, operating, and in useable condition (no known repairs needed) as previously agreed to by both parties. Exhibit “A” will constitute the whole inventory to be transferred at closing.

 

SECTION TWO.

 

PAYMENT

 

Buyer agrees to pay for the goods as follows: TOTAL $180,000.00 USD in the following manner; $60,000.00 USD to be transferred after signing and filing of sales contract at related institutions (bank and court house). Money will be transferred immediately and in increments until $60,000.00 USD has been wire transferred in 5 working days.  A second payment of $60,000.00 USD will be made to seller 30 days (with a 5 day grace period to cover week-ends, bank holidays, etc) after the first payment. A third and final payment of $60,000.00 USD will be made 60 days (with a 5 day grace period to cover week-ends, bank holidays, etc) after the initial first payment.  At time of final payment, seller will transfer and assign all titles and inventory to buyer in good working condition as described in Exhibit “A”.  In the event that buyer should default on the financial terms of contract, all equipment and collected revenue will revert back to seller.

 

SECTION THREE.

 

WORKING ARRANGEMENT

 

Seller shall resume and continue drilling operations and drilling contracts in a normal manner. Seller will remain in possession of rig and be responsible for daily operations and upkeep. Seller will instruct, advise and co-operate with buyer so as to train buyer of all rig operations. Buyer will have freedom of access to rig and all associated equipment at any and all times. Buyer and seller will keep sales transaction confidential so as not to inform crew or any other parties of pending sale.

 

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SECTION FOUR.

 

FINANCIAL WORKING AGREEMENT

 

As per agreement between seller and buyer, Seller will continue with financial management of funds collected as follows; (1) Seller will collect funds, (2) Seller will pay all operating expenses associated with each drilling contract, (3) profit after drilling expenses will be put into a joint account requiring 2 party authorization for withdrawal by both Seller and Buyer, (4) at the successful completion of sales agreement by buyer. All monies collected and accrued will be signed over to buyer by seller and become the sole property of buyer.

 

SECTION FIVE.

 

WARRANTIES AND LIMITATIONS

 

Seller warrants that the goods shall be delivered free of the rightful claim of any third party and be free of any lien or encumbrances.

 

THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTION ON THE FACE OF THIS AGREEMENT. RIG IS SOLD AS-IS WITH THE PROVISO THAT THE RIG WILL BE IN THE SAME OVERALL CONDITION AT TRANSFER OF ALL TITLES AS IT IS ON APRIL 15, 2011, MINUS NORMAL WEAR AND TEAR.

 

SECTION SIX.

 

ENTIRE AGREEMENT

 

The parties agree that this constitutes the entire agreement and there are no further items or provisions.

 

Seller: BMR Drilling INC

 

	 /s/ W. D. Warden	 
	W. D. Harden	 

 

THE STATE OF TEXAS, COUNTY of  _________________________________

Before me, the undersigned authority, on this day personally appeared___________________________________

_________________________________________________________________________________________

Known to me to be the person whose name subscribed to this foregoing instrument, and acknowledged to me that ________(he/she) executed the same for the purposes and consideration therein expressed.

 

Given under my hand and seal of office on this the ________ day of ____________, AD _____________

 

___________________________________________________________________________, Notary Public

 

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_________________________________________ County, Texas. My commission expires___________________________

 

(Acknowledgment Under Oath)

________________________

(Additional Name if Necessary)

THE STATE OF TEXAS, COUNTY of  _________________________________

Before me, the undersigned authority, on this day personally appeared___________________________________

_________________________________________________________________________________________

Known to me to be the person whose name subscribed to this foregoing instrument, and acknowledged to me that ________(he/she) executed the same for the purposes and consideration therein expressed.

 

Given under my hand and seal of office on this the ________ day of ____________, AD _____________

 

___________________________________________________________________________, Notary Public

 

_________________________________________ County, Texas. My commission expires_______________

(Acknowledgment Under Oath)

Buyer: Treaty Energy Corporation

 

	/s/ Andrew V. Reid	 
	
Andrew V. Reid

THE STATE OF LOUISIANA, Parrish of  _________________________________

Before me, the undersigned authority, on this day personally appeared___________________________________

 

_________________________________________________________________________________________

Known to me to be the person whose name subscribed to this foregoing instrument, and acknowledged to me that ________ (he/she) executed the same for the purposes and consideration therein expressed.

 

Given under my hand and seal of office on this the ________ day of ____________, AD _____________

 

___________________________________________________________________________, Notary Public

 

_________________________________________ County, Texas. My commission expires_______________

(Acknowledgment Under Oath)

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EXHIBIT “A”

INVENTORY

 

Failing1500 CF mounted on a 1978 Chevrolet Bison truck, Serial #CMH958V121758

 

Any additional serial #s __________________________________________________

 

Powered by 8v71 Detroit 13spd Road Ranger and a 4 speed brown light transmission

 

5 1/2x8 Garner Denver mud pump(new fluid end 3 wells ago) 5x6 Failing mud pump

 

15xv14 King Swivel (new bearings last well)

 

Hydraulic leveling jacks

 

Hydraulic pull-downs

 

Double drum draw works

 

2 sets of double sheave blocks with 5/8 line

 

5 1/4 rotary table (complete rebuild, completed April 15, 2011)

 

48 ft derrick

 

73 White GMC truck 290 Cummins 13spd Road Ranger transmission

 

Serial #BD001HA763564

 

30ft pipe trailer, Serial #195388

 

18ft Dog House, support trailer Serial #195387

 

65 joints of 2-7/8 drill pipe

 

4 – 4-1/2 collars (re-tooled) 2 wells ago)

 

2 gas powered generators

 

all the slips, landing joints and handling tools for 4-1/2, 5-1/2, & 8-5/8

 

all the nipples and unions to nipple up to a Schaeffer blowout preventer

 

15 different change-over subs, magnets to fit all pipe and bits

 

all suction hoses, tools and everything needed to drill and run the casing on a well to 2000ft

 

12-1/4 drill bit

 

6-3/4 PDC bit and all other misc bits

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EXHIBIT 10.1

 

NOVATION AGREEMENT

This Novation Agreement (this "Novation") is made and entered into this 18th day of April, 2011 (the “Effective Date”), by and between the persons identified in the signature pages of this Novation as the stockholders (each a “Licensor” and together the "Licensors") of Boreas Research Corporation ("Boreas"), a Florida corporation, whose principal office is located at 1551 Second Street, Suite 500, Sarasota FL 34236, and First National Energy Corporation (“Licensee”), a Nevada corporation, whose principal office is located at Second Street, Sarasota FL 34236. Licensor and Licensee are sometimes referred to individually as a “Party” or collectively as the “the Parties.”

RECITALS

WHEREAS, Boreas and Licensee made and entered into that certain Technology License and Stock Purchase Agreement (“License Agreement”), dated as of the 21st day of April, 2009, pursuant to which Licensee has issued, as consideration for the license issued thereunder, Ninety-eight Million, Nine Hundred

Fifteen Thousand (98,915,000) new restricted and unregistered common shares of Licensee (the "Shares"); and

WHEREAS, pursuant to the License Agreement, Boreas elected by entering into a First Amendment of Technology license and Stock Purchase Agreement (the “Agreement”) to cause the Shares to be issued, ratably, to the Licensors and not to Boreas at the Closing and agreed to reduce the number of new restricted and unregistered shares of the Licensee to be issued at the closing from 98,915,000 to 98,800,000 (as defined in the Original Agreement); and

WHEREAS, the structure of the transaction which was the subject of the Original Agreement has been viewed unfavorably by the regulators as possibly constituting a reverse recapitalization by Boreas; and

WHEREAS, the Licensee and the Licensors now wish to revise the Original Agreement, as hereinafter provided, to substitute the Licensors for Boreas under the Original Agreement.

NOW, THEREFORE, IT IS AGREED:

1.  Novation by Substitution of Licensors.

a.  The Licensors under this Novation, being all of the stockholders of Boreas, are hereby substituted for Boreas under the Original Agreement.

b.  Each of the Licensors hereby acknowledges that the Licensors have collectively negotiated and received from Boreas a license from Boreas identical in scope and terms to the License granted by Boreas under the Original Agreement, which new license is hereby granted to the Licensee in consideration of the Shares issued to the Licensees under the Original Agreement.

c.  Each of the Licensors hereby agrees to undertake each of the obligations of Boreas originally imposed upon Boreas under the Original Agreement.

d.  The Licensee agrees to a rescission of the License received by it under the Original Agreement and agrees to accept, in substitution therefor, a like license from the Licensors, and to accept the Licensors as the issuers of the substitute license, all with an effective date of April 21, 2009.

2.  Affirmation of Original Agreement.  Except as amended hereby, the Original Agreement remains in full force and effect.

  

  

  

  

     IN WITNESS WHEREOF, the Parties have executed this Novation Agreement effective as of the day and year written above.

	“Licensors” 	
All Stockholders of Boreas Research Corporation,

by Lubi Investments Inc., as Attorney-in-Fact

	 
	 	 	 	 
	
 

	
By: 

	/s/ Frank Cavicchia	 
	 	 	Name: Frank Cavicchia	 
	 	 	Title: President and C.E.O.	 
	 	 	 	 

                                                               

	“Licensee”  	First National Energy Corporation	 
	 	 	 	 
	
 

	
By: 

	/s/ Gregory Sheller	 
	 	 	Name: Gregory Sheller	 
	 	 	Title: Presiden

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