Document:

Exhibit 10.11

 

CLAIRE OIL & GAS, INC.

7060 Phelan Blvd., Suite 102

Beaumont, Texas  77706-5978

 

August 1, 2011

 

Vanguard Energy Corporation

1330 Post Oak Boulevard

Suite 1600

Houston, Texas  77056

 

Re:                               FARMOUT LETTER AGREEMENT EXTENSION

Lots 14 thru 31, Josephine Milhorn Survey, A-387

Hardin County, Texas

 

Gentlemen:

 

By letter agreement (“Agreement”) dated March 15, 2011, Claire Oil & Gas, Inc., as the owner and holder of oil and gas rights in and under certain lands in the Josephine Milhorn Survey, A-387, Hardin County, Texas, more particularly described as follows to-wit:

 

Tomlinson Tract:

 

100 acres, more or less, out of the Josephine Milhorn Survey, A-387, Hardin County, Texas, sometimes referred to as the Tomlinson Unit, and being Lots 14 through 31 described in an instrument dated March 29, 2006, from WFMMS, Inc. to Claire and recorded at Vol. 1550, Page 146, Official Records of Hardin County, Texas (see also Exhibit “A”) hereinafter referred to collectively as “said land”,

 

which desires said land to be further explored and developed farmed out certain exploration and development rights to Vanguard Energy Corporation, which desires to conduct further operations for the exploration and development of said land for the mutual benefit of Claire Oil & Gas, Inc., and Vanguard Energy Corporation under the terms hereof.

 

Pursuant to the request for an extension of time in which to commence the drilling of Vanguard’s initial “Test Well” at a mutually agreeable legal location on said land under said Agreement, Claire Oil & Gas, Inc. hereby agrees to such request provided Vanguard shall commence on or before November 30, 2011, time being of the essence, the actual drilling of said well with a rig capable of drilling from the surface to total depth and shall prosecute such drilling with reasonable diligence, prudence, and in a workmanlike manner, with no cessation of over thirty (30) consecutive days, to a depth (the “Contract Depth”) which shall be a subsurface depth equal to 100 feet below the stratigraphic equivalent of the deepest depth drilled in any current well, producing or not, on said land; provided, however, that if Vanguard encounters a commercially productive horizon, zone or formation before reaching such depth, and elects to

 

 

make a completion attempt at that depth, then the depth at which the completion attempt is made shall be deemed to be the “Contract Depth”.  If, after reaching Contract Depth, Vanguard determines that a completion attempt is not justified or an attempted completion fails to achieve a Commercial Well, as hereinafter defined, then the Test Well shall be plugged and abandoned in accordance with paragraph 23 below.  The term “actual drilling operations,” as used in this Agreement, means that a rig capable of drilling to the Contract Depth is properly positioned and anchored over the hole, the Kelly has been picked up and the first joint of drill pipe is ready to be lowered into the hole.  Vanguard shall perform all work necessary to complete said well as a well capable of producing oil and/or gas in paying quantities from such formation, provided that, in the event said well cannot be completed in such formation, Vanguard may complete it in any other formation encountered in said land or as a dry hole.  Vanguard shall complete said well within thirty (30) days from the date of cessation of actual drilling thereon and the completion date shall be deemed to be the date approved by the applicable regulatory body as the completion date or the date of plugging and abandonment, as the case may be.

 

Except as to the Test Well commencement hereby extended until November 30, 2011, at 5:00 p.m., and the extension of all dates in the Agreement which are measured from or by the Test Well commencement date, being likewise extended and computed from November 30, 2011, the Agreement date March 15, 2011, affecting the herein described lands shall remain in effect under the terms thereof.

 

	
 
    	
Respectfully   yours,
    
	
 
    	
 
    
	
 
    	
/s/   Crystal Rae Smith
    
	
 
    	
 
    
	
 
    	
Crystal   Rae Smith, President
    

 

 

RKW/rc

 

Agreed and accepted this

12th day of August, 2011

 

 

Vanguard Energy Corporation

 

	
/s/   Warren M. Dillard
    	
 
    	
 
    
	
 
    	
 
    
	
Warren   M. Dillard
    	
 
    
	
PresidentExhibit 10.12

 

PROMOTIONAL SHARES LOCK-IN AGREEMENT

 

Class A Issuer

 

I.                                         This Promotional Shares Lock-In Agreement (“Agreement”), which was entered into on the            day of October, 2011, by and between Vanguard Energy Corporation (“Issuer”), whose principal place of business is located in 1330 Post Oak Blvd., Suite 1600, Houston, Texas 77056, and                    (“Security Holder”) witnesses that:

 

A.                                   The Issuer has filed an application with the Securities Administrator of the States of Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Oregon, Rhode Island, Texas, Utah, Washington, Wisconsin and Wyoming (“Administrators”) to register certain of its Equity Securities for sale to public investors who are residents of those states (“Registration”);

 

B.                                   The Security Holder is the owner of the shares of common stock or similar securities and/or possesses convertible securities, warrants, options or rights which may be converted into, or exercised to purchase shares of common stock or similar securities of Issuer.

 

C.                                   As a condition to Registration, the Issuer and Security Holder (“Signatories”) agree to be bound by the terms of this Agreement.

 

II.                                     THEREFORE, the Security Holder agrees not to sell, pledge, hypothecate, assign, grant any option for the sale of, or otherwise transfer or dispose of, whether or not for consideration, directly or indirectly, PROMOTIONAL SHARES as defined in the North American Securities Administrators Association (“NASAA”) Statement of Policy on Corporate Securities Definitions and all certificates representing stock dividends, stock splits, recapitalizations, and the like, that are granted to, or received by, the Security Holder while the PROMOTIONAL SHARES are subject to this Agreement (“Restricted Securities”).  Notwithstanding the foregoing lock-in restrictions, the Security Holder may transfer any or all of the Restricted Securities beneficially held by him to any trust or other entity controlled by him and through which the Security Holder will retain beneficial ownership of the transferred securities (each, an “Affiliated Entity”); provided, however, that any Restricted Securities transferred to any Affiliated Entity shall remain subject to the terms and conditions of this Agreement.

 

Beginning one year from the completion date of the public offering, two and one-half percent (2 1/2%) of the Restricted Securities may be released each quarter pro rata among the Security Holders.  All remaining Restricted Securities shall be released from this Agreement on the anniversary of the second year from the completion date of the public offering.

 

 

III.                                 THEREFORE, the Signatories agree and will cause the following:

 

A.                                   In the event of a dissolution, liquidation, merger, consolidation, reorganization, sale or exchange of the Issuer’s assets or securities (including by way of tender offer), or any other transaction or proceeding with a person who is not a Promoter, which results in the distribution of the Issuer’s assets or securities (“Distribution”), while this Agreement remains in effect that:

 

1.                                             All holders of the Issuer’s EQUITY SECURITIES will initially share on a pro rata, per share basis in the Distribution, in proportion to the amount of cash or other consideration that they paid per share for their EQUITY SECURITIES (provided that the Administrator has accepted the value of the other consideration), until the shareholders who purchased the Issuer’s EQUITY SECURITIES pursuant to the public offering (“Public Shareholders”) have received, or have had irrevocably set aside for them, an amount that is equal to one hundred percent (100%) of the public offering’s price per share times the number of shares of EQUITY SECURITIES that they purchased pursuant to the public offering and which they still hold at the time of the Distribution, adjusted for stock splits, stock dividends recapitalizations and the like; and

 

2.                                             All holders of the Issuer’s EQUITY SECURITIES shall thereafter participate on an equal, per share basis times the number of shares of EQUITY SECURITIES they hold at the time of the Distribution, adjusted for stock splits, stock dividends, recapitalizations and the like.

 

3.                                             The Distribution may proceed on lesser terms and conditions than the terms and conditions stated in paragraphs 1 and 2 above if a majority of the EQUITY SECURITIES that are not held by Security Holders, officers, directors, or Promoters of the Issuer, or their associates or affiliates vote, or consent by consent procedure, to approve the lesser terms and conditions.

 

B.                                     In the event of a dissolution, liquidation, merger, consolidation, reorganization, sale or exchange of the Issuer’s assets or securities (including by way of tender offer), or any other transaction or proceeding with a person who is a Promoter, which results in a Distribution while this Agreement remains in effect, the Restricted Securities shall remain subject to the terms of this Agreement.

 

C.                                     Restricted Securities may be transferred by will, the laws of descent and distribution, the operation of law, or by order of any court of competent jurisdiction and proper venue.

 

D.                                    Restricted Securities of a deceased Security Holder may be hypothecated to pay the expenses of the deceased Security Holder’s estate. The hypothecated Restricted Securities shall remain subject to the terms of this Agreement. Restricted Securities may not be pledged to secure any other debt.

 

 

E.                                      Restricted Securities may be transferred by gift to the Security Holder’s family members, provided that the Restricted Securities shall remain subject to the terms of this Agreement.

 

F.                                      With the exception of paragraph A.3 above, the Restricted Securities shall have the same voting rights as similar EQUITY SECURITIES not subject to the Agreement.

 

G.                                     A notice shall be placed on the face of each stock certificate of the Restricted Securities covered by the terms of the Agreement stating that the transfer of the stock evidenced by the certificate is restricted in accordance with the conditions set forth on the reverse side of the certificate; and

 

H.                                    A typed legend shall be placed on the reverse side of each stock certificate of the Restricted Securities representing stock covered by the Agreement which states that the sale or transfer of the shares evidenced by the certificate is subject to certain restrictions until                   , 2013 (insert date of termination of the Agreement) pursuant to an agreement between the Security Holder (whether beneficial or of record) and the Issuer, which agreement is on file with the Issuer and the stock transfer agent from which a copy is available upon request and without charge.

 

I.                                         The term of this Agreement shall begin on the date that the Registration is declared effective by the Administrators (“Effective Date”) and shall terminate:

 

1.                                       On the anniversary of the second year from the completion date of the public offering; or

 

2.                                       On the date the Registration has been terminated if no securities were sold pursuant thereto; or

 

3.                                       If the Registration has been terminated, the date that checks representing all of the gross proceeds that were derived therefrom and addressed to the public investors have been placed in the U.S. Postal Service with first class postage affixed; or

 

4.                                       On the date the securities subject to this Agreement become “Covered Securities,” as defined under the National Securities Markets Improvement Act of 1996.

 

J.                                        This Agreement to be modified only with the written approval of the Administrators.

 

IV.                                 THEREFORE, the Issuer will cause the following:

 

A.                                   A manually signed copy of the Agreement signed by the Signatories to be filed with the Administrators prior to the Effective Date;

 

B.                                     Copies of the Agreement and a statement of the per share initial public offering price to be provided to the Issuer’s stock transfer agent;

 

 

C.                                     Appropriate stock transfer orders to be placed with the Issuer’s stock transfer agent against the sale or transfer of the shares covered by the Agreement prior to its expiration, except as may otherwise be provided in this Agreement;

 

D.                                    The above stock restriction legends to be placed on the periodic statement sent to the registered owner if the securities subject to this Agreement are uncertificated securities.

 

Pursuant to the requirements of this Agreement, the Signatories have entered into this Agreement, which may be written in multiple counterparts and each of which shall be considered an original.  The Signatories have signed the Agreement in the capacities, and on the dates, indicated.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the Signatories have executed this Agreement.

 

VANGUARD ENERGY CORPORATION

 

 

	
By:
    	
 
    	
 
    
	
Name:
    	
R.   Gerald Bailey
    	
 
    
	
Title:
    	
Chairman   of the Board of Directors
    	
 
    

 

 

SECURITY HOLDER

 

 

	
By:
    	
 
    	
 
    
	
Name:

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