Document:

Exhibit 10.1

    Exhibit 10.1

    
 

    ASSIGNMENT
      OF OIL AND GAS LEASE

    

    KNOW
      ALL
      MEN BY THESE PRESENTS: That the undersigned, hereinafter called "Assignor",
      for
      and in consideration of One Dollar ($1.00) and other valuable consideration,
      the
      receipt of which is hereby acknowledged, does hereby sell, assign, transfer
      and
      set over unto QUEST
      OIL
      CORPORATION,
      hereinafter called "Assignee", all of Assignor’s interest including but not
      limited to 100% working interest equal to 87.5% NRI, in the following described
      oil and gas lease: 

    

    An
      Oil
      and Gas Lease from Clyde L. Shinkle, Nancy Ann Glover formerly Nancy Ann
      Shinkle, Michael James Shinkle and Darleen Raulston, as Lessors, and W. A.
      Walker, as Lessee, dated July 15, 2004, recorded in Book 50 at Page 505of the
      Register of Deeds Office, Greenwood County, Kansas, covering the following
      described property:

    

    SEE
      EXHIBIT “A” ATTACHED HERETO

    

    together
      with the rights incident thereto and the personal property thereon, appurtenant
      thereto, or used or obtained in connection therewith.

    

    This
      Assignment is effective the 1st 
      day of
      September, 2006, at 12:01 a.m.

    

    Assignor
      is assigning all operations of the leasehold to Assignee as of the effective
      date hereof.

    

    All
      ad
      valorem taxes attributable to the interest assigned for years prior to 2006
      shall be paid by Assignor and 2006 taxes shall be prorated to the effective
      date. Assignor shall pay Assignee for Assignor’s pro rata share upon receipt of
      notice of the amount of the 2006 taxes.

    

    Assignor
      shall pay all leasehold expenses attributable to Assignor’s assigned interest
      and receive all proceeds of sales up to the effective date. Assignor shall
      indemnify and hold Assignee harmless from all claims of whatever kind, including
      costs, expenses and attorney fees arising out of the assigned interest and
      Assignor’s operations prior to the effective date.

    

    And
      for
      the same consideration the Assignor covenants with the Assignee, its successors
      or assigns: That the Assignor is the lawful owner of and has good title to
      the
      interest above assigned in and to said lease, estate, rights and property,
      free
      and clear from all liens, encumbrances or adverse claims; That said lease is
      a
      valid and subsisting lease on the land above described, and all rentals and
      royalties due thereunder have been paid and all conditions necessary to keep
      the
      same in full force have been duly performed, and that the Assignor will warrant
      and forever defend the same against all persons whomsoever, lawfully claiming
      or
      to claim the same.

    

    EXECUTED
      THIS 12th day of September, 2006.

    

     

    /s/
      W.A.
      Walker

    ________________________________

    W.
      A.
      WALKERExhibit 10.2

    Exhibit 10.2

    
 

     

    PURCHASE
      AND SALE AGREEMENT

     

     

    This
      Purchase and Sale Agreement (“Agreement”)
      is
      made on May 30th,
      2006
      and shall become effective 45 days hence forth (the “Effective
      Date”)
      and is
      made by and between, W.A. Walker (“Walker”)
      and
      Quest Oil Corporation, a Nevada corporation, (“Quest”)
      and is
      ratified by Clyde L. Shinkle (“CLS”),
      Nancy
      Ann Glover (formerly Nancy Ann Shinkle and hereinafter, “NAS”),
      Michael James Shinkle (“MJS”)
      and
      Darleen Raulston (“DR”).
      (CLS,
      NSA, MJS and DR are collectively referred to herein as “Shinkle”).
      

     

    I.

     

    The
      Lease

     

    WHEREAS,
      on July 15, 2004, Shinkle entered into an oil and gas lease with Walker (the
      “2004
      Shinkle Lease”),
      thereby leasing to Walker, oil, gas and water rights (“OGWR”)
      underlying property (which shall be referred to herein as the “Shinkle
      Property”
and
      which shall be described more completely in (i) the 2004 Shinkle Lease (a copy
      of which is attached hereto and incorporated herein as “Exhibit
      A”),
      and
      (ii) the last paragraph of this Section 1).

     

    WHEREAS,
      the 2004 Shinkle Lease provides for (i) a one year term (the “Term”),
      and
      (ii) for the Term to be extended should there be any production (to
“Produce”
or
      “Production”)
      of oil
      or gas or water (“OGW”)
      in the
      subject property.

     

    WHEREAS,
      since the execution of the 2004 Shinkle Lease there has been Production of
      OGW;
      and such Production of OGW has been evidenced by an Affidavit of Production
      (attached hereto as “Exhibit
      B”
and
      hereinafter referred to as the “Affidavit”).

     

    WHEREAS,
      as a result of the aforesaid Production, the 2004 Shinkle Lease and the
      assignments related thereto, are in full force and effect and are legally valid
      and shall remain so long as there is production of OGW.

     

    WHEREAS,
      in order to legally confirm and ratify the legal validity and current
      effectiveness of the rights underlying the 2004 Shinkle Lease as well as the
      current interests of Walker and Shinkle in the same, Shinkle has executed the
      attached Ratification Agreement (attached hereto as “Exhibit
      C”
and
      hereinafter referred to as the “Ratification”).
      

     

    WHEREAS,
      on June 29, 2005, Walker executed an agreement (a copy of which is attached
      hereto as “Exhibit
      D”)
      that
      assigned a 75% Net Revenue Interest (hereinafter referred to as “NRI”
the
      definition of which is contained in the 2004 Shinkle Lease) in the OGWR to
      the
      Shinkle Property to Milestone Energy Capital LLC (“Milestone”).
      As a
      result of the Exhibit D agreement, Shinkle retained a 12.5% royalty interest
      (hereinafter referred to as “RI”
and
      the
      definition of which is contained in the 2004 Shinkle Lease) and Walker retained
      a 12.5% NRI in the OGWR in the Shinkle Property.

     

    WHEREAS,
      on February 27, 2006 and May 17, 2006, Milestone executed agreements (copies
      of
      which are attached hereto as “Exhibit
      E”
and
      “Exhibit
      F”
      respectively) with Walker which conveyed all of Milestone’s interest in the OGWR
      in the Shinkle Property to Walker.

     

    WHEREAS,
      as of the date of this Assignment of Lease, with respect to ownership of the
      OGWR in the Shinkle Property, Shinkle owns a 12.5% RI, and Walker owns a 100%
      working interest and an 87.5% NRI. 

     

    WHEREAS,
      the 2004 Shinkle Lease which is the subject of this Assignment of Lease and
      which is related to the Shinkle Property is duly recorded in Book 50 of Leases
      at Page 505, Office of Register of Deeds of Greenwood County,
      Kansas.

     

     

    II.

     

    Terms
      and Conditions

     

    NOW
      THEREFORE, in consideration of the following, and other good and valuable
      consideration, receipt of which is hereby acknowledged, Walker agrees to sell,
      assign, transfer, and convey to Quest, subject to the terms of the consulting
      agreement, all (100%) of Walker's right, title, and interest in the 2004 Shinkle
      Lease, the interests underlying the documents in Exhibits D, E and F and the
      real property covered by the 2004 Shinkle Lease, on the terms and conditions
      set
      forth below.

     

    A. Consideration.

     

    1. Consulting
      Agreement with W.A. Walker.
      Quest
      shall enter into a consulting agreement with W.A. Walker (attached as
“Exhibit
      G”).

     

    2. Restricted
      Common Shares.
      (a)
      500,000 restricted common shares of Quest; and (b) 700,000 restricted common
      shares of Quest (“Balance
      Shares”).
      On a
      pro-rata basis, the Balance Shares shall be adjusted down should Quest not
      recover in gross revenues (net of bonuses and royalties to Walker and Shinkle),
      within 18 months of the closing date, 110% of the sum of: (a) $68,000; (b)
      $300,000; and (c) the actual cash spent on the Minimum Commitment (as defined
      below).

     

    3. Minimum
      Commitment.
      Within
      45 days from the Effective Date, Quest agrees to commence a work-over program
      of
      the 20 existing wells on the Shinkle Property requiring a capital investment
      of
      not less than $80,000 (the “Minimum
      Commitment”).

     

    B. Due
      Diligence.

     

    Quest
      shall have 45 days from the date of execution of this Assignment of Lease to
      conduct due diligence.

     

    C. Costs.

     

    All
      parties shall bear their own costs and fees.

     

     

    III.

     

    Quest
      to Perform 2004 Shinkle Lease

     

    Quest
      accepts, on the terms and conditions specified in this instrument, this Purchase
      and Sale Agreement and agrees to fully perform all of the terms and conditions
      of the 2004 Shinkle Lease. 

     

     

    IV.

     

    Indemnity
      Agreement

     

    All
      signatures to this Agreement agree to indemnify and hold each other free and
      harmless from all claims, liability, loss, damage, or expense resulting from
      Quest's performance of the 2004 Shinkle Lease, Quest's occupation of any part
      of
      the real property covered by the 2004 Shinkle Lease, or the exploration for,
      or
      extraction by Quest under the 2004 Shinkle Lease of, any oil, gas, or other
      hydrocarbon substances. 

     

     

    V.

     

    Modification
      and Extension of 2004 Shinkle Lease

     

    Quest
      shall have the right to obtain from Lessor under the 2004 Shinkle Lease, or
      Lessor's successor in interest as Lessor under the 2004 Shinkle Lease, any
      modifications or extensions of the 2004 Shinkle Lease Quest may
      desire.

     

     

    VI.

     

    Work-Over
      Program

     

    Within
      45
      days from the Effective Date, Quest must begin a work-over program of the twenty
      existing wells located on the land covered by the 2004 Shinkle
      Lease.

     

     

    VII.

     

    Default
      Clause

     

    Should
      Quest fail to commence work-over operations on the Shinkle Property within
      one
      year after the date of this Agreement, or should Quest fail or default in the
      performance of the 2004 Shinkle Lease or this instrument, then Walker may,
      at
      Walker’s option, either declare Quest’s rights under the 2004 Shinkle Lease and
      this instrument forfeited and resume Walker's status as Lessee under the 2004
      Shinkle Lease or bring appropriate action in law or equity either to enforce
      this instrument or to recover appropriate damages. 

     

     

    VIII.

     

    Access
      to Wells

     

    Walker
      shall have access to any well on the Shinkle Property and shall have the
      privilege of witnessing all tests and operations conducted on or in connection
      with any such well. On written request of Walker, Quest agrees to furnish Walker
      with copies of logs and reports obtained or prepared in connection with any
      well
      drilled on the land covered by the 2004 Shinkle Lease. 

     

     

    IX.

     

    Shinkle
      and Walker Warranties

     

    Shinkle
      and Walker make the following warranties with respect to the land covered by
      the
      2004 Shinkle Lease: 

     

    (a)       
      The rights and interest conveyed to Quest by this instrument are free and clear
      of all liens, charges, and encumbrances;

     

    (b)       
      Walker has the right to make the transfer and conveyance effectuated by this
      instrument;

     

    (c)       
      No default or defaults now exist or have been declared under the 2004 Shinkle
      Lease; and 

     

    (d)       
      The 2004 Shinkle Lease is now in good standing and in full force and
      effect.

     

     

    X.

     

    Manner
      of Payments to Walker

     

    All
      moneys payable under this Agreement by Quest to Walker shall be deemed duly
      paid
      when a check for them payable to the order of Walker is deposited in the United
      States mail, first-class postage prepaid, addressed to Walker at the following
      address:

    

    W.A.
      Walker

    c/o
      Gary
      House, Esq.

    119
      North
      Chautauqua Street

    P.O.
      Box
      6

    Sedan,
      Kansas 67361

    

    Walker
      may from time to time change depositories for the purpose of this paragraph
      by
      giving written notice of the change and the name and address of the new
      depository to Quest in the manner prescribed by Paragraph 11 of this instrument.
      

    

    XI.

    

    Notices

    

    All
      notices or other communications required or permitted by this instrument, the
      2004 Shinkle Lease, or by law to be served on or given to either party to this
      Agreement, Walker or Quest, by the other party shall be in writing and shall
      be
      deemed duly served when personally delivered to the party to whom it is directed
      or when deposited in the United States mail, first-class postage prepaid,
      addressed to Walker at:

    

    W.A.
      Walker

    c/o
      Gary
      House, Esq.

    119
      North
      Chautauqua Street

    P.O.
      Box
      6

    Sedan,
      Kansas 67361

    

    or
      to
      Quest at:

    

    Quest
      Oil
      Corporation 

    580
      2nd
      Street,
      Suite 102

    Encinitas,
      CA 92024

    

    With
      a
      copy to:

    

    Stull
      & Wood, LLC

    1320
      East
      1st
      Street

    Pratt,
      Kansas 67124

    

    Either
      party, Walker or Quest, may change its address for the purpose of this paragraph
      by giving written notice of that change to the other party in the manner
      provided in this paragraph. 

    

    

    XII.

    Arbitration,
      Venue and Attorneys Fees

    

    A. Arbitration.
      Any
      controversy or claim arising out of or relating to this Agreement the breach
      hereof, except as stated below, shall be settled by arbitration in accordance
      with the Commercial Arbitration Rules of the American Arbitration Association
      then in effect. The decision of the arbitrator shall, except for mistakes of
      law, be final and binding upon the parties hereto, and judgment upon the award
      rendered by the arbitrator, which shall, in the case of damages, be limited
      to
      actual damages proven in the arbitration, may be entered in any court having
      jurisdiction thereof.

     

    There
      shall be a single arbitrator who shall be an existing or former judge of a
      court
      of record within the United States or an attorney in good standing admitted
      to
      practice for a period of at least ten (10) years within the United States.
      No
      arbitration shall involve parties other than the parties hereto and their
      respective successors and assigns or be in any respect binding with respect
      to
      any such other parties.

     

    B. Venue.
      Any
      court or arbitral panel hearing a matter arising out of this Agreement shall
      take place in the county of San Diego, State of California.

     

    C. Procedure.
      The
      parties to any arbitration arising hereunder shall have the right to take
      depositions and to obtain discovery regarding the subject matter of the
      arbitration and to use and exercise all of the same rights, remedies and
      procedures, and be subject to all of the same duties, liabilities, and
      obligations in the arbitration with respect to the subject matter thereof,
      as if
      the subject matter of the arbitration were pending in a civil action before
      a
      court of highest jurisdiction in the state where the arbitration is held. The
      arbitrator shall have the power to enforce said discovery by imposition of
      same
      terms, conditions, consequences, liabilities, sanctions and penalties as can
      be
      or maybe imposed in like circumstances in a civil action by a court of highest
      jurisdiction of the state in which the arbitration is held, except the power
      to
      order the arrest or imprisonment of a person.

     

    D. Attorneys
      Fees.
      If any
      party commences an action, either arbitration or court proceedings, against
      any
      other party arising out of or in connection with this Agreement, the prevailing
      party or parties shall be entitled from the losing party or parties, both
      attorney’s fees and costs of the arbitration and/or suit as part of the judgment
      rendered.

     

     

    XIII.

     

    Binding
      on Heirs

     

    All
      of
      the terms and provisions of this instrument shall inure to the benefit of and
      shall be binding on the heirs, executors, administrators, representatives,
      successors, and assigns of each of the parties to this agreement. 

     

     

    XIV.

     

    Sole
      and Only Agreement

     

    This
      instrument constitutes the sole and only agreement between the parties
      respecting the 2004 Shinkle Lease or the assignment of the 2004 Shinkle Lease
      by
      Walker to Quest, and correctly sets forth the obligations of Walker and Quest
      to
      each other as of its date. Any agreements or representations respecting the
      2004
      Shinkle Lease or its assignment to Quest not expressly set forth in this
      instrument are null and void. 

     

     

    XV.

     

    Modification

     

    This
      Agreement may be changed, waived, discharged or terminated only by an instrument
      in writing signed by the party against which enforcement of such change, waiver,
      discharge or termination is sought.

     

     

    XVI.

     

    Governing
      Law

     

    This
      Agreement, including the Exhibits contained and incorporated herein, shall
      be
      governed by the laws of the State of Kansas.

     

     

    XVII.

     

    Counterparts

     

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

     

     

    SO
      AGREED:

     

     

    SELLER:

     

     

    W.A.
      Walker

     

    /s/
      W.A.
      Walker

     

    ____________________________

     

     

    PURCHASER:

     

    

    Quest
      Oil
      Corporation

    a
      Nevada
      Corporation

    

    

    /s/
      Joseph F. Walen

    ____________________________________

    By:
      Joseph F. Wallen

    Its:
      Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]