Document:

f10q0912ex10i_stratexoilgas.htm

Exhibit 10.1

 

PURCHASE AND SALE AGREEMENT

 

This Purchase and Sale Agreement (the “Agreement”) is made and entered into this ____day of October, 2012 and made effective on the 1st day of November, 2012 (the “Effective Date”), between Fortuna Energy, Inc, whose address is 4848 Hwy 84 #110, Williston, ND  58801 (“SELLER”); and Stratex Oil & Gas, Inc (“BUYER”), whose address is 30 Echo Lake Road, Watertown, Connecticut 06795.  SELLER and BUYER collectively hereafter referred to as the “Parties” or individually as a “Party”.

 

WITNESSETH:

 

WHEREAS, SELLER represents that it is the owner of certain oil and gas leasehold interests in Williams County and Stark County, North Dakota covering the lands as described in Exhibit “A” attached hereto and made a part hereof (“Leasehold Interests”).

 

WHEREAS, SELLER desires to sell, assign, transfer, and convey to BUYER and BUYER agrees to purchase and receive all of SELLER’s right, title and interest in and to the Leasehold Interests;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

	
1.  

	
PURCHASE PRICE. The total purchase price for the Leasehold Interests shall be Two Hundred Thousand Dollars ($200,000.00) cash paid in hand and Two Hundred Thousand Stock Shares for Stratex Oil and Gas, Inc, hereinafter referred to as the “Purchase Price”.  The effective date shall be November 1st, 2012, meaning SELLER shall retain revenue from production through October 31st, 2012.

	
2.  

	
DEPOSIT.  Upon BUYER’s receipt of a fully executed copy of this Agreement, BUYER shall tender Twenty Thousand Dollars ($20,000.00) (the “Deposit”) by cashier’s check or wire transfer of immediately available funds to the credit of SELLER. In the event BUYER is unable or unwilling for any reason to close the sale, or otherwise terminates the Agreement in accordance with the terms of this Agreement, SELLER shall immediately refund the Deposit to BUYER in immediately available funds. If the purchase and sale of the Leasehold Interests is consummated in full and the terms of this Agreement are satisfied, the Deposit shall be deducted from the Purchase Price or the Adjusted Purchase Price at Closing.

	
3.  

	
CLOSING. The sale and conveyance by SELLER and purchase and receipt by BUYER of the Leasehold Interests will occur at a closing (the “Closing”) to be held October 30th, or at an earlier or later date approved by the Parties hereto.  The Closing will be held at a mutually agreeable location.  At the Closing, SELLER shall execute, acknowledge and deliver to BUYER recordable assignments conveying the Leasehold Interests on a form of assignment attached hereto as Attachment “1” (the “Assignment of Oil and Gas Lease”) and Attachment “2” (the “Assignment of Oil and Gas Lease”).  Concurrently, BUYER will pay to SELLER, the Purchase Price or Adjusted Purchase Price, as applicable, via wire transfer to the depositary designated by SELLER.  Upon confirmation of good, paid funds deposited into SELLER’s account, SELLER will deliver to BUYER the signed and notarized Assignment of Leasehold Interests. The Parties shall take such other actions, and execute such other instruments as may be reasonably required to consummate the transaction set forth herein.

 

 

  

Page 1 of 8

  

 

	
4.  

	
REPRESENTATIONS AND WARRANTIES. BUYER acknowledges that the Leasehold Interests, described in Exhibit “B”, were derived from Check Stubs sent to, and relied upon by, SELLER.  SELLER warrants and agrees to defend title to said Leasehold Interests.  SELLER agrees to defend title to the Leasehold Interests as to all liens, claims, and encumbrances of all persons lawfully claiming, through or under SELLER, but not otherwise. SELLER further represents and warrants that there are no lawsuits pending against SELLER which do or could affect the title or interests conveyed; that SELLER is not aware of any such lawsuits or other claims which are threatened; that the Leasehold Interests are not subject to any agreement, indenture, order, judgment, decree or other restrictions or provisions whether shown of record or unrecorded; that there are no unrecorded assignments of overriding royalty interest executed by BUYER burdening the Leasehold Interests; that there are no carried interests executed by BUYER burdening the Leasehold Interests and no other obligations to third parties creating a disproportionate obligation for costs relating thereto;  and that SELLER has the full power and right to sell and convey the same.  BUYER may terminate this Agreement if SELLER is in material breach of any of the representations and warranties contained herein without any further liability to SELLER.

	
5.  

	
DUE DILIGENCE.  Upon SELLER’s acceptance of the terms of this Agreement, SELLER will make available to BUYER all documents in possession of SELLER with respect to the Leasehold Interests.  Thereafter, BUYER shall have the right at BUYER’s sole cost and risk to commence a due diligence examination of the Leasehold Interests and Lands, including but not limited to a title review of the Leasehold Interests and Lands, a survey of the Lands and an environmental assessment of the Leasehold Interests and the Lands.  SELLER agrees to cooperate fully and assist with BUYER’s examination of title and other assessments provided for herein.

Upon discovery of any title defects prior to Closing, BUYER shall notify SELLER of any defects and whether or not said defects can be reasonably cured.  SELLER shall have 60 days to cure title of such disclosed defects.  The Closing date shall be changed in order to accommodate the time needed to cure title.  If, after the 60 day period to cure title, BUYER is unwilling to accept the Leasehold Interests with any remaining defects or if the defects cannot be cured, such Leasehold Interests will no longer be subject to this Agreement and the Adjusted Purchase Price shall be paid to SELLER at Closing.

 

If, through its due diligence, BUYER determines that: (i) SELLER has not obtained the necessary consents to assign or authority to convey the Leasehold Interests; or (ii) that a material title defect or a material environmental condition exists that, alone or in the aggregate, would impair more than Twenty Percent (20%) of the Purchase Price, BUYER has the option to terminate this Agreement without liability to SELLER.

 

	
6.  

	
INDEMNITY AND RISK OF LOSS.  SELLER shall indemnify and hold BUYER harmless from and against all costs, expenses, attorneys’ fees, liens, judgments, claims, demands and causes of action whatsoever relating directly or indirectly to the ownership of the Leasehold Interests prior to the Closing Date, whether such fees, liens, judgments, claims, demands and causes of action (including, but not limited to all environmental matters) arise before or after the Closing date. Risk of loss only as to ownership of the Leasehold Interests that arises after the Closing date shall pass from SELLER to BUYER at Closing.

 

  

Page 2 of 8

  

 

	
7.  

	
NOTICES. All communications required or permitted under this Agreement may be delivered by registered or certified mail, courier service, facsimile transmission or email, addressed as set forth below.  Either Party may, by written notice to the other, change the address for such mailing such notices.  Faxes may be sent for convenience but must be followed up with mailing on any important notice issues as follows:

 

NOTICES TO SELLER:

 

Fortuna Energy, Inc

 

4848 Hwy 85 #110

 

Williston, ND  58801

 

Attn:  Lynn Leininger

 

Telephone:  701-570-8000

 

Fax:  ________________

 

 

NOTICES TO BUYER:

 

Stratex Oil and Gas, Inc

 

30 Echo Lake Road

 

Watertown, Connecticut 06795

 

Attn:  Steve Funk

 

Telephone:  406-252-2129

 

Fax:  _________________

 

	
8.  

	
EXCLUSIVITY.  Upon written acceptance of this Agreement, SELLER shall not offer the Leasehold Interests or any portion thereof to, entertain offers from, negotiate for their sale to, or make information about them available to, any third Party prior to Closing or the earlier termination of this Agreement.

	
9.  

	
DISCLOSURE.  It is agreed BUYER shall have the sole right to make any and all public announcements regarding this Agreement.   BUYER and its ultimate parent shall be permitted to disclose information regarding this transaction to U.S. securities regulators, stock exchanges, its advisors, potential investors and the investing public, whether by way of prospectus, information memorandum, filing with the securities regulatory authorities or otherwise.  Notwithstanding anything to the contrary herein, SELLER shall be permitted to disclose information regarding this transaction to its partners, shareholders, officers, directors, lending institutions, advisors or regulatory agencies.

 

  

Page 3 of 8

  

 

	
10.  

	
AMENDMENTS AND ASSIGNABILITY.  No amendments or other changes to this Agreement shall be effective or binding on either of the Parties unless the same shall be in writing and signed by the Parties.  This Agreement shall not be assigned either in whole or in part by either Party without the express written consent of the other Party.

	
11.  

	
ATTORNEY’S FEE.  Each Party shall be responsible for its own costs and reasonable attorneys’ fees; provided, however, that the prevailing Party in any dispute arising out of this Agreement, upon entry of a final non-appealable order, shall be awarded all costs and expenses, including without limitation reasonable attorney’s fees and court costs, which it incurred as a result of any court proceeding arising therefrom, notwithstanding the initial clause of this sentence to the contrary.

	
12.  

	
ENTIRE AGREEMENT.  This Agreement, together with Exhibits A and B attached hereto and incorporated herein, shall constitute the entire agreement of the Parties, expressly superseding all prior written and oral understandings and agreements.

	
13.  

	
GOVERNING LAW.  This Agreement shall be governed by the laws of the State of North Dakota which will have exclusive jurisdiction over any legal dispute arising from this Agreement.  SELLER and BUYER agree that any legal dispute or court proceeding shall be conducted in Williams County, North Dakota

 

SELLER

 

Fortuna Energy, Inc

 

By ______________________________

 

Lynn Leininger, President

 

 

BUYER

 

Stratex Oil & Gas, Inc

 

By ______________________________

 

Steve Funk, CEO

 

  

Page 4 of 8

  

 

 

Attachment “1” to Purchase and Sale Agreement

 

from Fortuna Energy, Inc (Assignor)

to Stratex Oil & Gas, Inc (Assignee)

dated effective November 1, 2012

ASSIGNMENT OF OIL AND GAS LEASE

Know All Men by These Presents:

That the undersigned, Fortuna Energy, Inc, 4848 Hwy 85, #110, Williston, North Dakota  58801, hereinafter called “Assignor” for and in consideration of the sum of Ten and more dollars ($10.00) cash in hand paid and other good and valuable considerations, the receipt of which is hereby acknowledged, does hereby grant, bargain, sell, convey, assign and set over unto Stratex Oil & Gas, Inc, whose address is 30 Echo Lake Road, Watertown, Connecticut, 06795, hereinafter called “Assignee”, all of Assignor’s right, title and interest in and to all the oil, gas and other minerals in and under that may be produced from the following described lands together with any and right, title, and interest Assignor may own under said lands situated in Stark County, as set forth in Exhibit “A” along with all of Assignor’s interests in producing wells as set forth in Exhibit “B” attached hereto.

EXECUTED this ___ day of _________________, 2012 and made effective November 1, 2012.

ASSIGNOR

FORTUNA ENERGY, INC

By ______________________________

Lynn Leininger, President

 

 

ACKNOWLEDGEMENT

STATE OF _______________

COUNTY OF _______________

This instrument was acknowledged before me on _________________, 2012, by Lynn Leininger, President of Fortuna Energy, Inc, with an address of 4848 Hwy 85, #110, Williston, ND  58801.

 

	 	_________________________________ 
Notary Public

 

My commission expires: _______________________

 

  

Page 5 of 8

  

 

 

EXHIBIT “A”

 

This Exhibit is attached to the Assignment of Oil and Gas Interests by and between Fortuna Energy, Inc (Assignor) and Stratex Oil & Gas, Inc (Assignee), dated October __, 2012 made effective November 1, 2012.  Assignor’s interests in Stark County, North Dakota being assigned herein are under the following described lands: to Purchase and Sale Agreement

 

	
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Lessor

	
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Legal

	
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Fortuna Energy, Inc

	  	  
	
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SIGNED FOR IDENTIFICATION

FORTUNA ENERGY, INC

By ______________________________

Lynn Leininger, President

 

  

Page 6 of 8

  

 

Attachment “2” to Purchase and Sale Agreement

 

from Fortuna Energy, Inc (Assignor)

to Stratex Oil & Gas, Inc (Assignee)

dated effective November 1, 2012

ASSIGNMENT OF OIL AND GAS LEASE

Know All Men by These Presents:

That the undersigned, Fortuna Energy, Inc, 4848 Hwy 85, #110, Williston, North Dakota  58801, hereinafter called “Assignor” for and in consideration of the sum of Ten and more dollars ($10.00) cash in hand paid and other good and valuable considerations, the receipt of which is hereby acknowledged, does hereby grant, bargain, sell, convey, assign and set over unto Stratex Oil & Gas, Inc, whose address is 30 Echo Lake Road, Watertown, Connecticut, 06795, hereinafter called “Assignee”, all of Assignor’s right, title and interest in and to all the oil, gas and other minerals in and under that may be produced from the following described lands together with any and right, title, and interest Assignor may own under said lands situated in Williams County, as set forth in Exhibit “A” along with all of Assignor’s interests in producing wells as set forth in Exhibit “B” attached hereto.

EXECUTED this ___ day of _________________, 2012 and made effective November 1, 2012.

 

ASSIGNOR

FORTUNA ENERGY, INC

By ______________________________

Lynn Leininger, President

 

ACKNOWLEDGEMENT

STATE OF _______________

COUNTY OF _______________

This instrument was acknowledged before me on _________________, 2012, by Lynn Leininger, President of Fortuna Energy, Inc, with an address of 4848 Hwy 85, #110, Williston, ND  58801.

 

	 	_________________________________ 
Notary Public

 

My commission expires: _______________________

 

 

  

Page 7 of 8

  

 

 

EXHIBIT “A”

 

This Exhibit is attached to the Assignment of Oil and Gas Interests by and between Fortuna Energy, Inc (Assignor) and Stratex Oil & Gas, Inc (Assignee), dated October __, 2012 made effective November 1, 2012.  Assignor’s interests in Williams County, North Dakota being assigned herein are under the following described lands: to Purchase and Sale Agreement

 

	
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Lessor

	
Lessee

	
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SIGNED FOR IDENTIFICATION

 

FORTUNA ENERGY, INC

By ______________________________

Lynn Leininger,

 

 

Page 8 of 8f10q0912ex10i_excelcorp.htm

Exhibit 10.1

 

SHARE REDEMPTION AGREEMENT

 

THIS SHARE REDEMPTION AGREEMENT (the "Agreement") is made and entered into effective as of July 25, 2012, by and among XLFashions, Inc. a Delaware corporation ("XLFashions"), and the shareholder of XLFashions listed on Schedule A hereto (the "Shareholder").

RECITALS:

A.      The Shareholder owns 1,812,907 shares of preferred stock of XLFashions (the "XLFashions Shares").

B.       XLFashions desires to redeem, and Shareholder desires to sell, all of the Shareholder’s XLFashions Shares for an amount equal to the purchase price paid therefor by such Shareholder (a “Treasury Purchase Transaction”).

C.       All of the shareholders of all of the issued and outstanding XLFashions Shares are being provided with the option to either (i) retain such shareholders current ownership of the XLFashions Shares, (ii) convert the XLFashions Shares to common shares of Excel Corporation, the parent entity of XLFashions (“Excel”), or (iii) consummate a Treasury Purchase Transaction.

D.      The Shareholder desires to consummate the Treasury Purchase Transaction upon the terms and conditions set forth herein.

E.       It is the intention of the parties hereto that: (i) XLFashions shall acquire the XLFashions Shares solely for the consideration set forth below (the "Redemption"); and (ii) the Exchange shall qualify as a transaction exempt from registration or qualification under the Securities Act of 1933, as amended (the "Securities Act").

         NOW, THEREFORE, in consideration of the mutual covenants, agreements, representations and warranties contained in this Agreement, the parties hereto agree as follows:

SECTION 1. REDEMPTION OF SHARES AND OTHER TRANSACTIONS

1.1 Redemption of Shares. On the Closing Date (as hereinafter defined), the Shareholder shall tender the XLFashions Shares to XLFashions and XLFashions shall pay a purchase price equal to $0.1379 per XLFashions Share so tendered for a total purchase price of $250,000.00.

1.2 Delivery of XLFashions Shares. On the Closing Date, the Shareholder will deliver to XLFashions the certificates representing the XLFashions Shares, duly endorsed for transfer (or with executed stock powers) so as to convey good and marketable title to the XLFashions Shares to XLFashions.

 

  

  

  

 

SECTION 2. REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDER

         The Shareholder represents and warrants to XLFashions as follows:

2.1 Information on Shareholder. Shareholder is an "accredited investor," as such term is defined in Regulation D promulgated under the Securities Act, and is experienced in investments and business matters, has made investments of a speculative nature and has such knowledge and experience in financial, tax and other business matters as to enable him to evaluate the merits and risks of, and to make an informed investment decision with respect to, this Agreement.

2.2 Ownership of XLFashions Shares and Authorization of Agreement. Shareholder is the sole record and beneficial owner of his/her/its XLFashions Shares, all of which shares are owned free and clear of all rights, claims, liens and encumbrances, and have not been sold, pledged, assigned or otherwise transferred except pursuant to this Agreement. There are no outstanding subscriptions, rights, options, warrants or other agreements obligating Shareholder to sell or transfer to any third person any of the XLFashions Shares owned by Shareholder, or any interest therein. Shareholder has the power to enter into this Agreement and to carry out his, her or its obligations hereunder. This Agreement has been duly executed by Shareholder and constitutes the valid and binding obligation of Shareholder, enforceable against Shareholder in accordance with its terms.

2.3    Review of Excel 1934 Exchange Act Filings; Access to Information. Shareholder represents and warrants that it has (i) reviewed the reports filed by Excel under the Securities Exchange Act of 1934 (hereinafter defined as the “SEC Reports”) on the SEC EDGAR system; (ii) received such information and other documents as has been requested by Shareholder regarding Excel and/or XLFashions; (iii) carefully reviewed and understands all of such information; and (iv) made any decision to execute and become a party to this Agreement based solely upon such Shareholder’s review of such information.

 

SECTION 3. COVENANTS

3.1. Examinations and Investigations. Prior to the Closing, the parties acknowledge that they have been entitled, through their employees and representatives, to make such investigation and verification of the assets, properties, business and operations, books, records and financial condition of the other, including communications with suppliers, vendors and customers, as they each may reasonably require.

3.2. Expenses. Each party hereto agrees to pay its own costs and expenses incurred in negotiating this Agreement and consummating the transactions described herein.

3.3. Further Assurances. The parties shall execute such documents and other papers and take such further action as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby. Each such party shall use its best efforts to fulfill or obtain in the fulfillment of the conditions to the Closing, including, without limitation, the execution and delivery of any documents or other papers, the execution and delivery of which are necessary or appropriate to the Closing.

3.4 Stock Certificates and Consideration. At the Closing, the Shareholder shall have delivered the certificates representing the XLFashions Shares duly endorsed (or with executed stock powers) so as to make XLFashions the sole owner thereof.

 

  

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SECTION 4. THE CLOSING

         The closing (the "Closing") shall take place at such other time and place as is mutually agreed upon by XLFashions and the Shareholder (the “Closing Date”). At the Closing, the parties shall provide each other with such documents as may be necessary or appropriate and customary in transactions of this sort in order to consummate the transactions contemplated hereby, including evidence of due authorization of the Agreement and the transactions contemplated hereby.

SECTION 5. SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDER

         XLFashions shall have the right to rely fully upon the representations, warranties, covenants and agreements of the Shareholder contained in this Agreement or in any document delivered to XLFashions or any of its representatives, in connection with the transactions contemplated by this Agreement. All such representations, warranties, covenants and agreements shall survive the execution and delivery hereof and the Closing hereunder for 12 months following the Closing.

SECTION 6. MISCELLANEOUS

6.1 Waivers. The waiver of a breach of this Agreement or the failure of any party hereto to exercise any right under this Agreement shall in no event constitute a waiver as to any future breach whether similar or dissimilar in nature or as to the exercise of any further right under this Agreement.

6.2 Amendment. This Agreement may be amended or modified only by an instrument of equal formality signed by the parties or the duly authorized representatives of the respective parties.

6.3 Assignment. This Agreement is not assignable except by operation of law.

 

  

3

  

 

6.4 Notices.  Until otherwise specified in writing, the mailing addresses of both parties of this Agreement shall be as follows:

 

	
To: 

	
XLFashions, Inc.

595 Madison Avenue, Suite 1101

New York, NY 10022

Attention: Ruben Azrak, CEO

 

	
With a copy to:

	

XLFashions, Inc.

595 Madison Avenue, Suite 1101

New York, NY 10022

Attn: Legal Department

	
To the 

Shareholder:

	
Address as set forth on the signature page hereto

 

Any notice or statement given under this Agreement shall be deemed to have been given if sent by registered mail addressed to the other party at the address indicated above or at such other address as may be furnished in writing to the addressor.

6.5 Governing Law; Venue. This Agreement shall be governed and construed in accordance with the laws of the State of Delaware, without regard to the conflicts of law provisions thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the County of New York, State of New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If any provision of this agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this agreement in that jurisdiction or the validity or enforceability of any provision of this agreement in any other jurisdiction. EACH PARTY HERETO IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY.

6.6 Publicity. No publicity release or announcement concerning this Agreement or the transactions contemplated hereby shall be issued by either party hereto at any time from the signing hereof without advance approval in writing of the form and substance thereof by the other party.

6.7 Entire Agreement. This Agreement and the collateral agreements executed in connection with the consummation of the transactions contemplated herein contain the entire agreement among the parties with respect to the Exchange and related transactions, and supersede all prior agreements, written or oral, with respect thereto.

6.8 Headings. The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

6.9 Severability of Provisions. The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforcement of any other provision or any part thereof.

6.10 Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed, shall constitute an original copy hereof, but all of which together shall consider but one and the same document.

 

  

4

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

XLFASHIONS, INC.

 

By:____________________

Name: Ruben Azrak

Title: CEO

 

SHAREHOLDER:

 

By:____________________

Name: Marvin Azrak

Address for notice:

 

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