Document:

aexp_ex101.htm

EXHIBIT 10.1

 

 

  

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3aexp_ex102.htm

EXHIBIT 10.2

 

__________

 

 

	
 

 TERMINATION AND RELEASE AGREEMENT

 

 

 

Between:

MAINLAND RESOURCES, INC.

 

And:

AMERICAN EXPLORATION CORPORATION

 

Mainland Resources, Inc.

21 Waterway Avenue, Suite 300, The Woodlands, Texas, U.S.A., 77380

__________

 

  

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TERMINATION AND RELEASE AGREEMENT

 

WITH RESPECT TO THE MERGER AGREEMENT AND PLAN OF MERGER

 

THIS TERMINATION AND RELEASE AGREEMENT (the “Agreement”) is made as of December 21, 2011 (the “Effective Date”)

 

BETWEEN:

MAINLAND RESOURCES, INC., a company existing under the laws of the State of Nevada, U.S.A.

(“Mainland”);

AND:

AMERICAN EXPLORATION CORPORATION, a company existing under the laws of the State of Nevada, U.S.A.

(“American Exploration”).

 

WHEREAS:

(A)   Mainland and American Exploration (each a “Party” and, together, the “Parties”) entered into a Merger Agreement and Plan of Merger dated March 22, 2010, as amended by a Letter Agreement dated July 28, 2010, and as further amended by an Amending Agreement dated September 7, 2010, an Amending Agreement dated December 23, 2010, an Amending Agreement dated March 14, 2011, an Amending Agreement dated May 17, 2011, an Amending Agreement dated August 18, 2011, and an Amending Agreement dated October 31, 2011 (as so amended, collectively, the “Merger Agreement”) which, subject to certain conditions, contemplated a merger between the Parties to be effected pursuant to Chapters 78 (Private Corporations) and 92A – Mergers, Conversions, Exchanges and Domestications, of the Nevada Revised Statutes, with Mainland as the surviving corporation;

(B)   The Merger Agreement is subject to termination by either Party under Section 7.3 of the Merger Agreement if certain conditions specified in the Merger Agreement are not satisfied at or before the “Termination Date”, which is defined in Section 1.1 of the Merger Agreement to mean January 31, 2012, or such later date as may be mutually agreed by the Parties;

(C)   Pursuant to Section 7.3 of the Merger Agreement, the Merger Agreement may be terminated by the mutual agreement of the Parties (without further action on the part of the American Exploration Shareholders) anytime prior to the filing of the Articles of Merger; and

(D)   The Parties wish to terminate the Merger Agreement as described in this Agreement;

  

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THIS AGREEMENT WITNESSES that in consideration of the respective covenants and agreements herein contained, the Parties covenant and agree as follows:

 

Certain Definitions

1.      Capitalized terms not otherwise herein defined shall have the meaning ascribed to them in the Merger Agreement.

 

Agreement to Terminate the Merger Agreement and Mutual Release

2.      Pursuant to and in accordance with Section 7.3 of the Merger Agreement, the Parties hereby mutually agree to the termination of the Merger Agreement as of the Effective Date first written above.

3.      Each Party hereby agrees to release the other Party hereto from any further liability to perform such other Party’s obligations under the Merger Agreement.  For the avoidance of doubt, the Parties acknowledge and agree that Mainland shall have no obligation under the Merger Agreement or otherwise to issue any Mainland Shares, any Mainland Exchange Options or any Mainland Exchange Warrants and including to, but not limited to, the American Exploration Option holders as set forth in Schedule “A” to this Agreement.

 

Promissory Note

4.      The Parties acknowledge and agree that, contemporaneously with the execution and delivery of this Agreement, the Parties shall enter into a new promissory note (the “Promissory Note”) evidencing American Exploration’s current obligation to pay to Mainland Resources U.S. $67,002.73; comprised of U.S. $60,000 in principal and U.S. $7,002.73 in accrued interest; pursuant to that certain promissory note entered into by and between the Parties dated September 27, 2010, as amended by Amendment No. 1 thereto dated December 23, 2010, as further amended by Amendment No. 2 thereto dated March 30, 2011, as further amended by Amendment No. 3 thereto dated May 17, 2011, as further amended by Amendment No. 4 thereto dated August 18, 2011, and as further amended by Amendment No. 5 thereto dated October 31, 2011 (such Promissory Note, as amended, being, collectively, the “Original Promissory Note”).  The Promissory Note shall supersede and replace the Original Promissory Note.

 

  

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Entire Agreement

5.      This Agreement constitutes the entire agreement between the Parties and supersedes every previous agreement, communication, expectation, negotiation, representation or understanding, whether oral or written, express or implied, statutory or otherwise between the Parties with respect to the subject matter of this Agreement.  Nothing in this Section 5 will limit or restrict the effectiveness and validity of any document with respect to the subject matter of this Agreement that is executed and delivered contemporaneously with or pursuant to this Agreement and including, but not limited to, the Promissory Note referred to in Section 4 above.

 

Governing Laws

6.      This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia, Canada, and the laws of Canada applicable therein and shall be treated in all respects as a British Columbia contract.

 

Counterparts

7.      This Agreement may be executed in any number of counterparts, in original form or by facsimile, each of which will together, for all purposes, constitute one and the same instrument, binding on the Parties, and each of which will together be deemed to be an original, notwithstanding that each Party is not a signatory to the same counterpart.

 

Headings

8.      The descriptive headings of the several Sections of this Agreement were formulated, used and inserted in this Agreement for convenience only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

 

  

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IN WITNESS WHEREOF this Agreement has been executed by the Parties effective as of the Effective Date first above written.

 

	MAINLAND RESOURCES, INC.	 	 	AMERICAN EXPLORATION CORPORATION	 
	 	 	 	 	 
	
/s/ William D. Thomas

	 	 	
/s/ Steven Harding

	 
	
William D. Thomas

	 	 	
Steven Harding

	 
	
Chief Financial Officer

	 	 	
President and CEO

	 

 

  

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Schedule “A”

 

American Exploration Options now terminated

 

As set forth in Section 3 of the Termination and Release Agreement of which this Schedule “A” forms a part, and for the avoidance of doubt, Mainland shall have no obligation under the Merger Agreement or otherwise to issue any Mainland Shares, any Mainland Exchange Options or any Mainland Exchange Warrants and including to, but not limited to, the American Exploration Option holders as set forth below.

American Exploration Options

	
American Exploration

Option holder

	
Number of American Exploration 

Shares Under Option

	
Exercise Price

(U.S. $)

	
Expiry

Date

	
Cory Bass

	
50,000

	
$0.80

	
Sept. 25, 2019

	
Moni Minhas

	
100,000

	
$0.80

	
Sept. 14, 2019

	
Marc Bustin

	
100,000

	
$0.80

	
Sept. 14, 2019

	
Brian Manko

	
150,000

	
$0.80

	
Sept. 14, 2019

	
David Sidoo

	
250,000

	
$0.80

	
Sept. 14, 2019

	
Herb Dhaliwal

	
300,000

	
$0.80

	
Sept. 25, 2019

	
Dev Randhawa

	
750,000

	
$0.80

	
Sept. 14, 2019

	
Steve Harding

	
1,000,000

	
$0.80

	
Sept. 14, 2019

	
Herb Dhaliwal

	
50,000

	
$0.13

	
March 14, 2021

	
Moni Minhas

	
50,000

	
$0.13

	
March 14, 2021

	
Herb Dhaliwal

	
400,000

	
$0.09

	
May 10, 2021

	
Moni Minhas

	
400,000

	
$0.09

	
May 10, 2021

	
Brian Manko

	
150,000

	
$0.09

	
May 10, 2021

	
Diane Dalmy

	
150,000

	
$0.09

	
May 10, 2021

	
Total:

	
3,900,000

	  	  

__________

 

  

6aexp_ex103.htm

EXHIBIT 10.3

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 PROMISSORY NOTE

 

 

 

 

From:

AMERICAN EXPLORATION CORPORATION

 

To:

MAINLAND RESOURCES, INC.

 

Mainland Resources, Inc.

21 Waterway Avenue, Suite 300, The Woodlands, Texas, U.S.A., 77380

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PROMISSORY NOTE

Aggregate Principal Sum of up to U.S. $67,002.73

Principal:    U.S. $67,002.730.   Made at Vancouver, British Columbia, Canada.

Maturing:   As set forth hereinbelow.

THIS PROMISSORY NOTE is provided, dated and made effective as of the 21st day of December, 2011 (the “Effective Date”).

 

FROM:

AMERICAN EXPLORATION CORPORATION, a company incorporated under the laws of the State of Nevada, U.S.A., and having an address for notice and delivery located at 407 2nd Street S.W., Calgary, Alberta, Canada, T2P 2Y3

(“Borrower”);

TO:

MAINLAND RESOURCES, INC., a company incorporated under the laws of the State of Nevada, U.S.A., and having an address for notice and delivery located at 21 Waterway Avenue, Suite 300, The Woodlands, Texas, U.S.A., 77380

(“Lender”);

(and the Borrower and the Lender being hereinafter singularly also referred to as a “Party” and collectively referred to as the “Parties” as the context so requires).

 

WHEREAS:

(A)   The Borrower is a corporation duly incorporated under the laws of the State of Nevada, U.S.A., is a reporting company and issuer in each of the United States and in British Columbia, respectively, and has its common shares listed for trading on the OTCBB over-the-counter bulletin board;

(B)   The Lender is a corporation duly incorporated under the laws of the State of Nevada, U.S.A., is a reporting company and issuer in each of the United States and in British Columbia, respectively, and has its common shares listed for trading on the OTCBB over-the-counter bulletin board;

 

  

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(C)   In accordance with the terms and conditions of a certain “Termination And Release Agreement” dated as of the Effective Date hereof (the “Termination Agreement”), as entered into between the Parties, the Parties therein agreed as follows:

 

“4.    The Parties acknowledge and agree that, contemporaneously with the execution and delivery of this Agreement, the Parties shall enter into a new promissory note (the “Promissory Note”) evidencing American Exploration’s current obligation to pay to Mainland Resources U.S. $67,002.73; comprised of U.S. $60,000 in principal and U.S. $7,002.73 in accrued interest; pursuant to that certain promissory note entered into by and between the Parties dated September 27, 2010, as amended by Amendment No. 1 thereto dated December 23, 2010, as further amended by Amendment No. 2 thereto dated March 30, 2011, as further amended by Amendment No. 3 thereto dated May 17, 2011, as further amended by Amendment No. 4 thereto dated August 18, 2011, and as further amended by Amendment No. 5 thereto dated October 31, 2011 (such Promissory Note, as amended, being, collectively, the “Original Promissory Note”).  The Promissory Note shall supersede and replace the Original Promissory Note.”; and

(D)   In conjunction with the execution of the Termination Agreement the Parties hereby acknowledge and agree that it is their intention by the terms and conditions of this “Promissory Note” (the “Promissory Note”) to clarify their respective duties and obligations with respect to the Promissory Note envisioned under the Termination Agreement as now provided for hereunder;

FOR VALUABLE CONSIDERATION, receipt whereof is hereby acknowledged, the undersigned, Borrower, hereby promises to pay to the Lender, or the holder of this Promissory Note, in accordance with the terms and conditions referenced herein, the aggregate Principal Sum of U.S. $67,002.73, together with interest payable thereon and commencing on the above-referenced Effective Date of this Promissory Note at the rate of twelve percent (12%) per annum, calculated daily and payable in full monthly during the continuance of any portion of the Principal Sum being outstanding hereunder (herein the “Interest”) prior to maturity; in the manner as set forth immediately hereinbelow.

Subject to the following, the Principal Sum, together with all outstanding Interest thereon as specified hereinabove, is hereby irrevocably and unconditionally due and payable by the Borrower to the Lender at or before 5:00 p.m. (Vancouver time) on the day which is 30 calendar days from the Borrower’s prior receipt from the Lender of written demand for the repayment of all such Principal Sum and Interest (the “Final Principal Sum Payment Date”).

The holder of this Promissory Note may, from time to time, grant written indulgences with respect to certain payment amounts or periods but such indulgences will not in any way affect the undersigned’s liability upon this Promissory Note nor will such indulgences vary any other term to which indulgence has not specifically been granted.  No indulgence will be enforceable against the holder unless granted in writing.

The undersigned hereby waives demand, presentment for payment, notice of non-payment and protest.

If any provision of this Promissory Note is held to be invalid, illegal or unenforceable, then such will not affect or impair the validity, legality or enforceability of the remaining provisions.

  

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WITNESS the hand of the authorized representative of the undersigned Borrower given under seal as of the Effective Date determined hereinabove.

 

	 	
AMERICAN EXPLORATION CORPORATION

	 
	 	 	 	 
	 	
By: 

	/s/ Steven Harding	 
	 	 	Steven Harding	 
	 	 	President/Chief Executive Officer	 

 

  

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