Document:

Camber Energy, Inc. 8-K

 

Exhibit 10.3

 

ASSIGNMENT
OF OVERRIDING ROYALTY INTEREST

 

 

	STATE
OF OKLAHOMA	§	 
	 	§	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY
OF OKFUSKEE	§	 

 

That
CE Operating, LLC having a mailing address at 4040 Broadway Street, Suite 425, San Antonio, Texas 78209 (hereinafter "Assignor"),
for and in consideration of one dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, does hereby assign, transfer, sell and convey unto Camber Royalties, LLC having a mailing address
at 4040 Broadway Street, Suite 425 San Antonio, Texas 78209 (hereinafter "Assignee”) an Overriding Royalty Interest
equal to three percent of eight-eights (the “Overriding Royalty Interest”) in and to those Oil and Gas Leases
and Orders which cover the lands and wells described on Exhibit "A-1" and Exhibit “B” in Okfuskee County,
State of Oklahoma.

 

The
Overriding Royalty Interest assigned herein applies to all oil, gas, casinghead gas or other hydrocarbon substances which may
be produced, saved and marketed from the lands under the terms of the Oil and Gas Leases described on Exhibit "A-1"
or the wells described on Exhibit “B”, if, as and when produced, saved, sold and marketed, but not otherwise, insofar
and only insofar as the Oil and Gas Leases cover the lands specifically described on Exhibit "A-1" and the wells on
Exhibit “B”, and subject to the provisions and conditions herein set forth. The Overriding Royalty Interest herein
shall bear all costs borne under the oil and gas leases constituting the Oil and Gas Leases described on Exhibit "A-1",
including without limitation, taxes and treating, transportation, and marketing costs of the minerals produced thereunder and
pay currently its proportionate share of gross production, severance, pipeline taxes and other taxes which may be assessed or
levied against said Overriding Royalty Interest or the production attributable thereto. The Overriding Royalty Interest assigned
herein shall not impose upon Assignor herein, or Assignor's successors and assigns, any duty or obligation to develop or operate
the lands covered by the Oil and Gas Leases which cover the lands described on Exhibit "A-1" for oil, gas or other hydrocarbons
other than as required by the provisions of the Oil and Gas Leases, nor to maintain the Oil and Gas Leases in effect by the payment
of delay rentals.

 

In
the event the Oil and Gas Leases cover less than the entire interest in the oil, gas and other hydrocarbons in the lands covered
thereby, the Overriding Royalty Interest assigned herein shall be reduced proportionately and shall be payable to Assignee in
the proportion which the interests in the oil, gas and other hydrocarbons in the lands covered by the Oil and Gas Leases bear
to the entire estate in the oil, gas and other hydrocarbons in and under said lands described on Exhibit "A-1".

 

In
accordance with Section 2.7(b) of that certain Asset Purchase Agreement dated July 10, 2018, between Camber Energy, Inc. and N&B
Energy, LLC (the “APA”), and provided the Closing (as defined in the APA) of such APA occurs and Assignee fails to
pay any Unpaid Bills (as defined in the APA), N&B Energy, LLC may be entitled to pay such expenses and deduct the amount of
such expenses from any sums payable to Assignee hereunder.

 

    	 	 	 

     

    

 

This
Overriding Royalty Interest shall attach and apply to all extensions and renewals of the Oil and Gas Leases including any new
leases covering any of the wells described on Exhibit “B” as well as any existing. Furthermore, this Overriding Royalty
Interest shall apply to all extensions, renewals, ratifications, and amendments.

 

Assignor,
and Assignor’s assigns, are hereby expressly permitted to pool any interest in the Oil and Gas Leases described on Exhibit
"A-1" or the wells described on Exhibit “B” without the consent of Assignee.

 

If
the assignment of the Overriding Royalty Interest herein conveyed results in Assignor, or any third-party buyer of Assignor’s
interest in the Oil and Gas Leases and Orders which cover the lands and wells described on Exhibit "A-1" and Exhibit
“B”, receiving less than a 75.0% net revenue interest in any of the Oil and Gas Leases and Orders which cover the
lands and wells described on Exhibit "A-1" and Exhibit “B”, the Overriding Royalty Interest shall apply
to such oil and gas lease(s) assigned only to the extent necessary for Assignor or any third-party buyer of Assignor’s interest
to receive no less than a 75.0% net revenue interest in any of the Oil and Gas Leases and Orders.

 

If
(i) the Oil and Gas Leases described on Exhibit "A-1" or the wells described on Exhibit “B” cover less than
the entire mineral interest, and/or (ii) the interest of Assignor in the Oil and Gas Leases described on Exhibit "A-1"
or the wells described on Exhibit “B” cover less than the entire leasehold interest, the overriding royalty interest
shall be proportionately reduced.

 

This
Assignment is made without warranty of title, either express or implied. Provided, however, Assignor makes a special limited warranty
to Assignee that the interests assigned herein are not subject to any Agreement which has not been disclosed to Assignee which
would adversely affect the interests assigned herein. ANY AND ALL IMPLIED COVENANTS RELATING TO THE OVERRIDING ROYALTY INTEREST
ASSIGNED HEREBY ARE EXPRESSLY WAIVED BY ASSIGNEE.

 

All
of the terms, provisions, covenants and agreements herein contained shall extend to and be binding upon the parties hereto, their
respective successors and assigns.

 

    	 	 	 

     

    

 

Executed
this 26th day of September, and effective August 1, 2018.

 

 

	 	Assignor:
	 	CE
OPERATING, LLC
	 	 
	 	By: Camber Energy, Inc., a Nevada corporation, it’s manager
	 	 
	 	/s/ Louis Schott	 
	 	By: Louis Schott, Interim Chief Executive Officer
	 	 

    

	STATE
OF	TEXAS	§	 
	 	 	§	 
	COUNTY
OF	BEXAR	§	 

 

  

Before
me, the undersigned, a Notary Public, in and for said County and State on this 26th day of September, 2018,
personally appeared Louis Schott, Interim Chief Executive Officer of Camber Energy, Inc., in its capacity as Manager of CE Operating,
LLC, an Oklahoma limited liability company, to me known to be the identical person who subscribed the name of the maker thereof
to the within and foregoing instrument, and acknowledged to me that he/she executed the same as his/her free and voluntary act
and deed, and the free and voluntary act and deed of such limited liability company for the uses and purposes therein set forth.

 

IN
WITNESS WHEREOF, I have hereunto set my official signature and affixed my official seal the day and year first above written.

 

	 	/s/ Delia Sandoval	 
	Notary Public, State of	Texas	 
	Commission No.:	373053-7	 
	My Commission expires on:	11-27-2020	 
	 	 
	(SEAL)Camber Energy, Inc. 8-K

 

Exhibit 10.4

 

ASSIGNMENT
OF OVERRIDING ROYALTY INTEREST

 

 

 

	STATE
OF OKLAHOMA	§	 
	 	§	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY
OF LINCOLN	§	 

 

That
N & B Energy, LLC, a Texas limited liability company, having a mailing address at 4040 Broadway, Suite 425, San Antonio,
Texas 78209 (hereinafter "Assignor"), for and in consideration of one dollar ($1.00) and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, does hereby assign, transfer, sell and convey unto Camber Royalties,
LLC having a mailing address at 4040 Broadway Street, Suite 425, San Antonio, Texas 78209 (hereinafter "Assignee”)
an Overriding Royalty Interest equal to the difference between existing burdens and eighteen and eight hundred seventy-five
one thousands percent (18.875%) (the “Overriding Royalty Interest”) in and to those Oil and Gas Leases and Orders
which cover the lands and wells described on Exhibit "A-1" and Exhibit “B” in Lincoln County, State of Oklahoma.

 

The
Overriding Royalty Interest assigned herein applies to all oil, gas, casinghead gas or other hydrocarbon substances which may
be produced, saved and marketed from the lands under the terms of the Oil and Gas Leases described on Exhibit "A-1"
or the Wells described on Exhibit “B”, if, as and when produced, saved, sold and marketed, but not otherwise, insofar
and only insofar as the Oil and Gas Leases cover the lands specifically described on Exhibit "A-1" and the Wells on
Exhibit “B”, and subject to the provisions and conditions herein set forth. The Overriding Royalty Interest herein
shall bear all costs borne under the oil and gas leases constituting the Oil and Gas Leases described on Exhibit "A-1",
including without limitation, taxes and treating, transportation, and marketing costs of the minerals produced thereunder and
pay currently its proportionate share of gross production, severance, pipeline taxes and other taxes which may be assessed or
levied against said Overriding Royalty Interest or the production attributable thereto. The Overriding Royalty Interest assigned
herein shall not impose upon Assignor herein, or Assignor's successors and assigns, any duty or obligation to develop or operate
the lands covered by the Oil and Gas Leases which cover the lands described on Exhibit "A-1" for oil, gas or other hydrocarbons
other than as required by the provisions of the Oil and Gas Leases nor to maintain the Oil and Gas Leases in effect by the payment
of delay rentals.

 

In
the event the Oil and Gas Leases cover less than the entire interest in the oil, gas and other hydrocarbons in the lands covered
thereby, the Overriding Royalty Interest assigned herein shall be reduced proportionately and shall be payable to Assignee in
the proportion which the interests in the oil, gas and other hydrocarbons in the lands covered by the Oil and Gas Leases bear
to the entire estate in the oil, gas and other hydrocarbons in and under said lands described on Exhibit "A-1".

 

In
accordance with Section 2.7(b) of that certain Asset Purchase Agreement dated July 10, 2018, between Camber Energy, Inc. and N&B
Energy, LLC (the “APA”), and provided the Closing (as defined in the APA) of such APA occurs and Assignee fails to
pay any Unpaid Bills (as defined in the APA), N&B Energy, LLC may be entitled to pay such expenses and deduct the amount of
such expenses from any sums payable to Assignee hereunder.

 

    	 	 	 

     

    

 

This
Overriding Royalty Interest shall attach and apply to all extensions and renewals of the Oil and Gas Leases including any new
leases covering any of the wells described on Exhibit “B” as well as any leases under existing. Furthermore, this
overriding royalty interest assigned hereby shall apply to all extensions, renewals, ratifications, and amendments. 

 

If
the assignment of the Overriding Royalty Interest herein conveyed results in Assignor, or any third-party buyer of Assignor’s
interest in the Oil and Gas Leases and Orders which cover the lands and wells described on Exhibit "A-1" and Exhibit
“B”, receiving less than an 81.125% net revenue interest in any of the Oil and Gas Leases and Orders which cover the
lands and wells described on Exhibit "A-1" and Exhibit “B”, the Overriding Royalty Interest shall apply
to such oil and gas lease(s) assigned only to the extent necessary for Assignor or any third-party buyer of Assignor’s interest
to receive no less than an 81.125% net revenue interest in any of the Oil and Gas Leases and Orders.

 

If
(i) the Oil and Gas Leases described on Exhibit "A-1" or the wells described on Exhibit “B” cover less than
the entire mineral interest, and/or (ii) the interest of Assignor in the Oil and Gas Leases described on Exhibit "A-1"
or the wells described on Exhibit “B” cover less than the entire leasehold interest, the overriding royalty interest
shall be proportionately reduced.

 

This
Assignment is made without warranty of title, either express or implied. Provided, however, Assignor makes a special limited warranty
to Assignee that the interests assigned herein are not subject to any Agreement which has not been disclosed to Assignee which
would adversely affect the interests assigned herein.

 

All
of the terms, provisions, covenants and agreements herein contained shall extend to and be binding upon the parties hereto, their
respective successors and assigns.

 

Executed
this 26th day of September, but effective August 1, 2018.

 

 

Assignor:

 

 

N
& B ENERGY, LLC, A TEXAS LIMITED LIABILITY COMPANY

 

 

	BY:	/s/ RICHARD N. AZAR, II	 	 
	 	RICHARD N. AZAR, II, MANAGER	 

 

 

    	 	 	 

     

    

 

ACKNOWLEDGEMENT 

 

	STATE
OF	TEXAS	§	 
	 	 		 
	COUNTY
OF	BEXAR	§	 

 

This
instrument was acknowledged before me on the 26th day of September, 2018 by RICHARD N. AZAR, II, MANAGER OF
N & B ENERGY, LLC, A TEXAS LIMITED LIABILITY COMPANY, on behalf of said company.

 

Given
under my hand and seal of office this 26th day of September, 2018.

 

 

 

		/s/ Delia Sandoval	 
	Notary Public, State of Texas	 
	My
Commission expires on	11-27-2020

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