Document:

EXHIBIT 10-A

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS, AND NEITHER THIS NOTE NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED
UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF THIS NOTE, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY
TO THE COMPANY, THAT THIS NOTE MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

 

BITZIO
INC.

Promissory
Note

 

	$94,500.00	January
    29, 2014
		Los
    Angeles, California

 

BITZIO,
INC., a Nevada corporation (the “Company”), for value received, hereby promises to pay to The Victor Vinco
Family Trust dated September 6, 2002, Troy Capell, Trustee, a trust with an address at 501 IS Reino Road, Apt. 115, Newbury Park,
CA 91320 or registered assigns (the “Holder”), the principal amount of NINETY FOUR THOUSAND FIVE HUNDRED United
States Dollars (US$94,500) on the Maturity Date (as defined below), and to pay interest on the unpaid principal balance hereof
at the rate (calculated on the basis of a 360-day year consisting of twelve 30-day months) of 0.0% per annum from the date hereof
until the Maturity Date or the earlier repayment of this Note. Upon the execution hereof, the Holder shall fund $70,000 to the
Company. The difference between $70,000 and the principal amount of shall be reported by the Company as original issue discount.

 

Accrued
interest on the unpaid principal balance hereof shall be payable on the Maturity Date or upon the earlier repayment of this Note.
In no event shall any interest to be paid hereunder exceed the maximum rate permitted by law. In any such event, this Note shall
automatically be deemed amended to permit interest charges at an amount equal to, but no greater than, the maximum rate permitted
by law.

 

1. Payments.

 

(a) Upon
the execution hereof (such date, the “Issue Date”), the Holder shall fund $70,000 which shall be used for production
financing of E-Motion Apparel, and corporate expenses of the Company. The entire unpaid principal amount of this Note shall be
paid in U.S. Dollars on the Maturity Date. Upon the payment in full of this Note, including, without limitation, the principal
amount hereof, and all accrued and unpaid interest hereon, and any other amounts owing hereunder, the Holder shall surrender this
Note to the Company for cancellation. The “Maturity Date” shall be June 15, 2014.

 

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(b) Subject
to Section 1(d) hereof, interest on this Note, during the period from the Issue Date through the Maturity Date, shall accrue
on the principal amount of this Note, at a rate equal to 0.0% per annum (“Initial Interest Rate”) and, subject
to Section 1(d) hereof, shall be payable in arrears on the Maturity Date. Interest shall be computed on the basis of a
360-day year applied to actual days elapsed. Notwithstanding the foregoing any anything in this Note to the contrary, upon the
occurrence, and during the continuation, of an Event of Default, the Initial Interest Rate shall be increased by 18% per annum
to 18% per annum and shall be payable to the Holder on demand.

 

(c) If
the Maturity Date falls on a day that is not a Business Day (as defined below), the payment due on the Maturity Date will be made
on the next succeeding Business Day with the same force and effect as if made on the Maturity Date. “Business Day”
means any day which is not a Saturday or Sunday and is not a day on which banking institutions are generally authorized or obligated
to close in the City of Los Angeles, California.

 

(d) (i) The
Company may, at its option, prepay all or any part of the principal of this Note, without payment of any premium or penalty.

 

 (ii) Notwithstanding
anything herein to the contrary, the Company shall be required to pay to the Holder by the 15th Calendar Day following
the end of each calendar month beginning on February 15, 2014 an amount equal to $18,900 by check to be applied to the balance
due under this Note.

 

 (iii) Notwithstanding
anything herein to the contrary, the Company shall repay this Note in its entirety upon the receipt a minimum of three hundred
thousand dollars ($300,000) from any equity or equity derivative securities, exclusive of any existing committed fundings.

 

 (iv) Notwithstanding
anything herein to the contrary, in the event payments under this Section 1(d) in the aggregate total no less than $90,000 on
or prior to April 15, 2014, the remaining principal balance shall be forgiven and this Note shall be considered paid in full.

 

 (v) All
payments on this Note shall be applied first to accrued interest hereon and the balance to the payment of principal hereof.

 

(e) Payments
of principal of, and interest on, this Note shall be made by check sent to the Holder’s address set forth above or to such
other address as the Holder may designate for such purpose from time to time by written notice to the Company, in such coin or
currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private
debts. Alternatively, payment of principal of, and interest on, this Note may be made by electronic wire transfer in accordance
with instructions provided by the Holder to the Company with at least ten Business Days’ prior notice.

 

(f) The
obligations to make the payments provided for in this Note are absolute and unconditional and not subject to any defense, set-off,
counterclaim, rescission, recoupment, or adjustment whatsoever. The Company hereby expressly waives demand and presentment for
payment, notice of non-payment, notice of dishonor, protest, notice of protest, bringing of suit, and diligence in taking any
action to collect any amount called for hereunder, and shall be directly and primarily liable for the payment of all sums owing
and to be owing hereon, regardless of and without any notice, diligence, act, or omission with respect to the collection of any
amount called for hereunder.

 

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2. Ranking
of Note.

 

This
Note constitutes unsecured indebtedness of the Company. Holder acknowledges the senior lien position from 112359 Factor Fund LLC
as reported in the Company’s filings.

 

3. Covenants.

 

The
Company covenants and agrees with the Holder that, so long as any amount remains unpaid on the Note, unless the consent of the
Holder is obtained or except as otherwise provided herein, the Company:

 

(a)
 Shall not pay any dividend or make any distribution on, or purchase, redeem, or retire, any shares of its capital stock or
any warrants, options, or other rights to reacquire any such shares, except that the Company may pay dividends payable solely
in shares of its capital stock.

 

(b) Shall
deliver to the Holder:

 

(i) as
soon as available, and in any event within 45 days after the end of each quarter of each fiscal year of the Company, consolidated
statements of income and cash flow of the Company, for such period and for the period from the beginning of the respective fiscal
year to the end of such period, the related consolidated balance sheet of the Company and its subsidiaries as at the end of such
period, and an inventory listing as of the end of such period;

 

(ii) as
soon as available and in any event within 90 days after the end of each fiscal year of the Company, consolidated statements of
income and cash flow of the Company for such fiscal year, and the related consolidated balance sheet of the Company and its subsidiaries
as at the end of such fiscal year;

 

(iii) promptly
after the Company shall obtain knowledge of such, written notice of all legal or arbitral proceedings, and of all proceedings
by or before any governmental or regulatory authority or agency, and each material development in respect of such legal or other
proceedings, affecting the Company and its subsidiaries, except proceedings which, if adversely determined, would not have a material
adverse effect on the Company and its subsidiaries taken as a whole; and

 

(iv) promptly
after the Company shall obtain knowledge of the occurrence of any Event of Default (as hereinafter defined) or any event which
with notice or lapse of time or both would become an Event of Default (an Event of Default or such other event being a “Default”),
a notice specifying that such notice is a “Notice of Default” and describing such Default in reasonable detail,
and, in such Notice of Default or as soon thereafter as practicable, a description of the action the Company has taken or proposes
to take with respect thereto.

 

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 (c) The
Company shall utilize the proceeds of the loan evidenced by this Note for production financing and for working capital purposes
related to corporate activities.

 

4.
 Events of Default.

 

The
occurrence of any of the following events shall constitute an event of default (each, an “Event of Default”):

 

(a) A
default in the payment of the principal amount of the Note, when and as the same shall become due and payable.

 

(b) A
default in the payment of any accrued and unpaid interest on the Note, when and as the same shall become due and payable, which
default shall continue for two business days after the date fixed for the making of such interest payment.

 

(c) A
default in the performance, or a breach, of any of the covenants of the Company contained in Sections 1 or 3 of
this Note.

 

(d) A
default in the performance, or a breach, of any other covenant or agreement of the Company in this Note and continuance of such
default or breach for a period of 30 days after receipt of notice from the Holder as to such default or breach or after the Company
had or should have had knowledge of such default or breach.

 

(e) Any
representation, warranty, or certification made by the Company in or pursuant to this Note shall prove to have been false or misleading
as of the date made in any material respect.

 

(f) A
final judgment or judgments for the payment of money in excess of $100,000 in the aggregate shall be rendered by one or more courts,
administrative or arbitral tribunals or other bodies having jurisdiction against the Company and the same shall not be discharged
(or provision shall not be made for such discharge), or a stay of execution thereof shall not be procured, within 60 days from
the date of entry thereof, and the Company shall not, within such 60-day period, or such longer period during which execution
of the same shall have been stayed, appeal therefrom and cause the execution thereof to be stayed during such appeal.

 

(g) The
entry of a decree or order by a court having jurisdiction adjudging the Company bankrupt or insolvent, or approving a petition
seeking reorganization, arrangement, adjustment, or composition of or in respect of the Company, under federal bankruptcy law,
as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency, or other similar law, and the
continuance of any such decree or order unstayed and in effect for a period of 60 days; or the commencement by the Company of
a voluntary case under federal bankruptcy law, as now or hereafter constituted, or any other applicable federal or state bankruptcy,
insolvency, or other similar law, or the consent by it to the institution of bankruptcy or insolvency proceedings against it,
or the filing by it of a petition or answer or consent seeking reorganization or relief under federal bankruptcy law or any other
applicable federal or state law, or the consent by it to the filing of such petition or to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator, or similar official of the Company or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally
as they become due, or the taking of corporate action by the Company in furtherance of any such action.

 

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5. Remedies
Upon Default.

 

(a) Upon
the occurrence of an Event of Default referred to in Section 4(a), (b), (c), (d), (e) or (f), the Holder, by notice
in writing given to the Company, may declare the entire principal amount then outstanding of, and the accrued interest on, this
Note to be due and payable immediately, and upon any such declaration the same shall become and be due and payable immediately,
without presentation, demand, protest, or other formalities of any kind, all of which are expressly waived by the Company.

 

Upon
the occurrence of an Event of Default referred to in Section 4(g), the principal amount then outstanding of, and the accrued
interest on, this Note shall automatically become immediately due and payable without presentment, demand, protest, or other formalities
of any kind, all of which are hereby expressly waived by the Company.

 

(b) The
Holder may institute such actions or proceedings in law or equity as it shall deem expedient for the protection of its rights
and may prosecute and enforce its claims against all assets of the Company, and in connection with any such action or proceeding
shall be entitled to receive from the Company payment of the principal amount of this Note plus accrued interest to the date of
payment plus reasonable expenses of collection, including, without limitation, attorneys’ fees and expenses.

 

6.
Transfer.

 

(a) Any
Notes issued upon the transfer of this Note shall be numbered and shall be registered in a note register as they are issued. The
Company shall be entitled to treat the registered holder of the Note on the note register as the owner in fact thereof for all
purposes and shall not be bound to recognize any equitable or other claim to or interest in such Note on the part of any other
person, and shall not be liable for any registration or transfer of Notes which are registered or to be registered in the name
of a fiduciary or the nominee of a fiduciary unless made with the actual knowledge that a fiduciary or nominee is committing a
breach of trust in requesting such registration or transfer, or with the knowledge of such facts that its participation therein
amounts to bad faith. This Note shall be transferable only on the books of the Company upon delivery thereof duly endorsed by
the Holder or by his duly authorized attorney or representative, or accompanied by proper evidence of succession, assignment,
or authority to transfer. In all cases of transfer by an attorney, executor, administrator, guardian, or other legal representative,
duly authenticated evidence of his or its authority shall be produced. Upon any registration of transfer, the Company shall deliver
a new Note or Notes to the person entitled thereto. This Note may be exchanged, at the option of the Holder thereof, for another
Note, or other Notes of different denominations, of like tenor and representing in the aggregate a like principal amount, upon
surrender to the Company or its duly authorized agent. Notwithstanding the foregoing, the Company shall have no obligation to
cause Notes to be transferred on its books to any person if, in the opinion of counsel to the Company, such transfer does not
comply with the provisions of the Securities Act and the rules and regulations thereunder.

 

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(b) The
Holder acknowledges that he has been advised by the Company that this Note has not been registered under the Securities Act, that
this Note is being issued on the basis of the statutory exemption provided by Section 4(2) of the Securities Act or Regulation
D promulgated thereunder, or both, relating to transactions by an issuer not involving any public offering. The Holder acknowledges
that it has been informed by the Company of, or is otherwise familiar with, the nature of the limitations imposed by the Securities
Act and the rules and regulations thereunder on the transfer of securities. In particular, the Holder agrees that no sale, assignment
or transfer of this Note shall be valid or effective, and the Company shall not be required to give any effect to any such sale,
assignment or transfer, unless (i) the sale, assignment, or transfer of this Note is registered under the Securities Act, it being
understood that this Note is not currently registered for sale and that the Company has no obligation or intention to so register
the Note, or (ii) this Note is sold, assigned, or transferred in accordance with all the requirements and limitations of Rule
144 under the Securities Act, it being understood that Rule 144 is not available at the time of the original issuance of this
Note for the sale of this Note and that there can be no assurance that Rule 144 sales will be available at any subsequent time,
or (iii) such sale, assignment, or transfer is otherwise exempt from registration under the Securities Act.

 

7. Miscellaneous.

 

 (a) Any
notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified
mail, return receipt requested, or by FedEx, Express Mail or similar overnight delivery or courier service or delivered (in person
or by telecopy or similar telecommunications equipment) against receipt to the party to whom it is to be given, (i) if to the
Company, at its address, BITZIO, INC., 20152 S. Gilmore Street, Winnetka, CA, 91306 Attention: Gordon McDougall, (ii) if to the
Holder, at its address set forth on the first page hereof, or (iii) in either case, to such other address as the party shall have
furnished in writing in accordance with the provisions of this Section 7(a). Notice to the estate of any party shall be
sufficient if addressed to the party as provided in this Section 7(a). Any notice or other communication given by certified
mail shall be deemed given at the time of certification thereof, except for a notice changing a party’s address, which shall
be deemed given at the time of receipt thereof. Any notice given by other means permitted by this Section 7(a) shall be
deemed given at the time of receipt thereof.

 

(b) Upon
receipt of evidence satisfactory to the Company of the loss, theft, destruction, or mutilation of this Note (and upon surrender
of this Note if mutilated), the Company shall execute and deliver to the Holder a new Note of like date, tenor, and denomination.

 

(c) No
course of dealing and no delay or omission on the part of the Holder in exercising any right or remedy shall operate as a waiver
thereof or otherwise prejudice the Holder’s rights, powers or remedies. No right, power, or remedy conferred by this Note
upon the Holder shall be exclusive of any other right, power, or remedy referred to herein or now or hereafter available at law,
in equity, by statute or otherwise, and all such remedies may be exercised singly or concurrently.

 

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(d) This
Note may be amended only by a written instrument executed by the Company and the Holder hereof. Any amendment shall be endorsed
upon this Note, and all future Holders shall be bound thereby.

 

(e) (i) This
Note has been negotiated and consummated in the State of New York and shall be governed by, and construed in accordance with,
the laws of the State of New York, without giving effect to principles governing conflicts of law.

 

 (ii) THE
COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA AND OF THE
FEDERAL COURTS SITTING IN THE STATE OF CALIFORNIA. THE COMPANY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING
TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY MUST BE LITIGATED EXCLUSIVELY IN ANY SUCH STATE OR FEDERAL COURT THAT SITS
IN THE CITY OF LOS ANGELES, AND ACCORDINGLY, THE COMPANY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF THE VENUE OF ANY SUCH LITIGATION IN ANY SUCH COURT.

 

(iii) THE
COMPANY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE. THE COMPANY (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE HOLDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE HOLDER WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE HOLDER HAS BEEN INDUCED TO ENTER
INTO THIS NOTE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7(e)(iii).

 

(iv) In
the event that any suit or action is instituted to enforce any provision in this Note, the prevailing party in such dispute shall
be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under
or with respect to this Note, including without limitation, such reasonable fees and expenses of attorneys and accountants, which
shall include, without limitation, all fees, costs and expenses of appeals.

 

*
* * * *

 

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IN
WITNESS WHEREOF, the Company has caused this Note to be executed and dated the day and year first above written.

  

	 	BITZIO,
    INC.
	 	 	 
	 	By:	/s/
    Gordon McDougall
	 	Name:	Gordon
    McDougall
	 	Title:	Chief Executive
    Officer

 

    	-8-WORKING
INTEREST PURCHASE AND SALE AGREEMENT

 

 

 

February
11,2014

 

By and between:

 

HD Special
Situations, LP

 

a Limited
Partnership

duly formed
and existing

under the
laws of the State of Delaware

 

AND

 

CARDINAL ENERGY GROUP, INC.

A company
duly

incorporated
and existing

under the
laws of the State of Nevada

 

 

 

    	 

    	 

    

 

RECITALS

 

WHEREAS,
Seller is a private company which owns a 100% working interests and a 80% net revenue interest in certain Oil and Gas leases
and wellbores in Eastland County, Texas, in addition to other property and assets as set forth in the Subject Leases, more fully
described in “Exhibit A” attached hereto); and

 

WHEREAS,
Buyer (as defined below) is an SEC reporting and operating public energy company which desires to acquire from the Seller
100% of its working interest in the Subject Property (as defined below), which represents 100% of all of the working interests,
and 76% (Stroebel) and 78% (Broyles) of the NRI in the Subject Property (hereinafter, “Working Interest”); and

 

WHEREAS,
Subject only to the limitations and exclusions contained in this Agreement (as defined below), and on the terms and conditions
set forth herein, Seller desires to sell to the Buyer, and the Buyer desires to buy from the Seller, the Subject Property.

 

NOW,
THEREFORE, in consideration of their mutual promises contained herein, Buyer and Seller agree to the purchase and sale
of the Subject Property, in accordance with the following terms and conditions:

 

ARTICLE I

 

GENERAL

 

1. This Working Interest Purchase and Sale Agreement (hereinafter referred to as, the “Agreement”) is made and entered into as of this 29th day of January, 2014, by and between HD Special Situations, LP, a Delaware Limited Partnership, having its principal place of business located at One Maritime Plaza, Suite 825, San Francisco, CA 94111, (hereinafter referred to as, “Hunting Bog” or, the “Seller”) and Cardinal Energy Group, Inc., a Nevada corporation, having its principal place of business located at: 6037 Frantz Rd.( Suite 103, Dublin Ohio 43017 (hereinafter referred to as, “Cardinal” or, the “Buyer’’). Buyer and Seller may be referred to herein collectively as the “Parties” and individually as a “Party.”

 

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ARTICLE II

 

PARTIES

 

2. The Parties to this Agreement shall be as follows:

 

	Seller:	HD Special Situations, LP
	 	 
	Party’s registered location:	State of Delaware
	 	 
	Party’s registered address:	One Maritime Plaza, Suite 825
	 	San Francisco, CA 94111
	 	 
	Party’s legal representative;	Mr. Chris Allick
	 	 
	Title:	Managing Partner
	 	 
	Buyer:	Cardinal Energy Group, Inc.
	 	 
	Party’s registered location:	State of Nevada
	 	 
	Party’s registered address:	6037 Frantz Rd.
	 	Suite 103
	 	Dublin Ohio 43017
	 	 
	Party’s legal representative:	Mr. Timothy W. Crawford
	 	 
	Title:	CEO

 

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ARTICLE III

 

PURCHASE
AND SALE

 

3. Property Being
Sold. Subject to the terms and conditions set forth in this Agreement, Seller agrees to sell and convey, and Buyer agrees to
purchase and accept, the Subject Property for the Purchase Price as set forth in Article IV, below. The term “Subject Property”
shall mean;

 

a.
Stroebel-Broyles Leases. All of Seller’s rights, title and interest in and to any and all oil and gas leaseholds and working
interests, in and to the oil, gas and mineral leases which are described in “Exhibit A” attached hereto and
made a part hereof for all purposes, collectively, the “Leases”;

 

b. Rights in Production. All of Seller’s rights, title and interest in and to all reversionary interests, “back-in” interests, overriding royalties, production payments, net profits interests, mineral and royalty interests in production of oil, gas or other minerals relating to the Leases;

 

c. Wells. All of Seller’s rights, title and interest in and to producing, non-producing, shut-in oil and gas wells and any and all injection or disposal wells located on the Leases (hereinafter, the “Wells”);

 

d. Contract Rights. All of Seller’s rights, title and interest (if any) in or derived from any unit agreements, orders and decisions of regulatory authorities establishing or relating to units, unit operating agreements, drilling units, spacing units, operating agreements, gas purchase agreements, oil purchase agreements, gathering agreements, transportation agreements, compression agreements, processing or treating agreements, seismic agreements, geophysical agreements, exploration agreements, area of mutual interest agreements and any other agreements that relate to any of the Leases or Wells to the extent such contracts are assignable (the “Contracts”).

 

e. Easements. All of Seller’s rights, title and interest (if any) in and to all rights-of-way, easements, licenses, and servitudes appurtenant to or used in connection with the Leases and Wells (hereinafter, the “Easements”);

 

f. Permits. All of Seller’s rights, title and interest in and to all permits and licenses of any nature owned, held or operated in connection with operations for the exploration and production of oil, gas or other minerals (if any) to the extent the same are used or obtained in connection with any of the Leases, Contracts, Easements or Wells (hereinafter, the “Permits”);

 

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g. Equipment. All of Seller’s rights, title and interest in and to all personal property, fixtures, surface equipment, storage tanks, down-hole equipment, casing, tubing other tubulars, pumps, pumpjacks, compressors, metering facilities, pipelines, valves, drips, separators, dehydration equipment, treatment facilities, electrical equipment and any other devises used in connection with the Leases, Wells, Easements or Permits (hereinafter, the “Equipment”);

 

h. Hydrocarbons, All oil, gas, casinghead gas, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all other products refined or extracted therefrom, together with all minerals produced in association with these substances (hereinafter collectively, the “Hydrocarbons”) in and under and which may be produced and saved from or attributable to the Leases or Wells from and after the Effective Date (as defined below) and all rents, issues, profits, proceeds, products, revenues and other income from or attributable thereto; and

 

i. Data. Any and all documents and records (whether in written or other form) of any kind presently in or in the future coming into the care, custody, or control of the Seller relating to the Subject Property including, but not limited to, the following (if any): land records, property title documents and records, division orders, operations and production-related records and reports, well information, hereafter, the “Data”.

 

ARTICLE IV

 

PURCHASE
PRICE

 

4. Purchase
Price. Buyer agrees to pay to Seller the sum of Seventy-five Thousand Dollars (US $75,000) (hereinafter, the “Purchase
Price”) for the Subject Property. The Purchase Price shall be payable via certified check delivered to Seller at the Closing,
or via wire-transfer of immediately available funds, at the election of the Seller.

 

ARTICLE V

 

EFFECTIVE
DATE AND CLOSING DATE

 

5. Effective
Date and Closing Date. Seller’s conveyance of the Subject Property to Buyer shall be effective as of February 28, 2014,
at 9:00 a.m. CST (the “Effective Date”), with title being deemed delivered to the Buyer as of that date. The Closing
shall take place on or before March 5, 2014 (the “Closing Date”) unless extended by agreement of the Parties. The
Closing may take place either in person at the offices of the Buyer or electronically, if mutually agreed to by the Parties.

 

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ARTICLE VI

 

REPRESENTATIONS AND WARRANTIES
OF THE SELLER

 

6. Representations
and Warranties of Seller. Seller hereby represents and warrants to Buyer with respect to Seller’s interests in the
Subject Property as of the date hereof and as of the Closing, as follows:

 

a.
Organization and Standing. Seller is duly organized, validly existing and in good standing under the laws of the State
of Delaware, its state of organization, and in such
other jurisdictions necessary for the consummation of this Agreement

 

b.
Valid Agreement. At the Closing, all instruments required hereunder to be executed and delivered by Seller shall be duly
executed and delivered to Buyer and shall constitute legal, valid and binding obligations of Seller. The execution and delivery
by Seller of this Agreement, the consummation of the transactions set forth herein and the performance by Seller of Seller’s
obligations hereunder have been duly and validly authorized and will not violate, conflict with or result in any violation or
breach of any provision of (i) any agreement, contract, mortgage, lease, license or other instrument to which Seller or the Subject
Property is a party, or by which Seller or the Subject Property is bound; (ii) any governmental franchise, license, permit or
authorization or any judgment or order of judicial or governmental body applicable to Seller or Subject Property or (iii) to the
knowledge of Seller, any law, statute, decree, rule or regulation of any jurisdiction in the United States to which Seller
or the Subject Property is subject.

 

c. Authorization.
This Agreement has been duly authorized, executed and delivered by Seller. All instruments required to be delivered by Seller at
the Closing shall be duly authorized, executed and delivered by Seller. This Agreement and all documents executed by Seller
in connection with this Agreement shall constitute legal, valid and binding obligations of Seller, enforceable against Seller in
accordance with their terms, subject to the effects of bankruptcy, insolvency reorganization, moratorium and similar laws from
time to time in effect, as well as general principles of equity.

 

d. Liens.
On the Closing Date, Seller shall deliver the Subject Property free and clear of any and all liens, mortgages, deeds of trusts
or other encumbrances created by, through or under Seller.

 

e. No
Third Party Options. There are no agreements, options, or commitments with, of or to any person to acquire the Subject Property
that were created during Seller’s period of ownership. To Seller’s knowledge, there are no agreements, options or commitments
with, of or to any person to acquire the Subject Property that were created prior to Seller’s period of ownership that would
continue to be in effect on or after the Effective Date.

 

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f.
Preferential Rights. The Subject Property are not subject to any preferential rights to purchase that were created during
Seller’s period of ownership. To Seller’s knowledge, the Subject Property is not subject to any preferential rights
to purchase that were created prior to Seller’s period of ownership that would continue to be in
effect on or after the Effective Date

 

g. Contracts.
All Contracts relating to the Subject Property (if any) have been provided to the Buyer a minimum of five (5) days prior to the
Closing Date. With respect to each Contract, to the knowledge of Seller, (i) such Contract is in full force and effect, (ii) there
are no material violations or breaches thereof and (iii}, there are no other Contracts relating to the Subject Property other than
the Contracts identified on “Exhibit B” attached hereto and made a part hereof for all purposes.

 

h. No
Other Representations and Warranties. The express representations and warranties of the Seller contained in paragraphs 6(a)
- 6(g) above are the only representations of the Seller herein. Seller makes no other representations or warranties, whether express,
implied, or statutory, except to the extent required by applicable law.

 

ARTICLE VII

 

REPRESENTATIONS
AND WARRANTIES OF THE BUYER

 

7.
Representations and Warranties of Buyer. Buyer represents and warrants to Seller as of the date hereof and at the Closing,
as follows:

 

a. Corporate
Authority. Buyer is a corporation organized and in good standing under the laws of the State of Nevada, is duly qualified and
in good standing to carry on its business in the state where the Subject Property is located and has all the requisite power and
authority to enter into and perform this Agreement and carry out the transactions contemplated under this Agreement.

 

b. Valid
Agreement. This Agreement constitutes the legal, valid and binding Agreement of Buyer. At the Closing, all instruments required
hereunder to be executed and delivered by Buyer shall be duly executed and delivered to Buyer and shall constitute legal, valid
and binding obligations of Buyer. The execution and delivery by Buyer of this Agreement, the consummation of the transactions set
forth herein and the performance by Buyer of Buyer’s obligations hereunder have been duly and validly authorized by all requisite
corporate action on the part of Buyer and will not conflict with or result in any violation of any provision of (i) any agreement,
contract mortgage, lease, license or other instrument to which Buyer is a party or by which Buyer is bound; (ii) any governmental
franchise, license, permit or authorization or any judgment or order of judicial or governmental body applicable to Buyer, or (iii)
any law, statute, decree, rule or regulation of any jurisdiction in the United States to which Buyer is subject.

 

    	7

    	 

    

 

c.
Governmental Approvals. Buyer shall obtain all required local, state, federal governmental and/or agency permissions, approvals,
permits, bonds and consents, as may be required to assume Seller’s obligations and responsibilities attributable to the Subject
Property.

 

d. Independent
Evaluation. Buyer is experienced and knowledgeable in the oil and gas business. Buyer has been advised by and has relied solely
on its own expertise and legal, tax, accounting, marketing, land, engineering, environmental and other professional counsel concerning
this transaction, the Subject Property and value thereof. Buyer is acquiring Subject Property in “as is” condition
without warranty as to merchantability or fitness for a particular purpose.

 

e.
Brokers, Buyer has incurred no obligation or liability, contingent or otherwise, for brokers’ or finders’ fees
with respect to this transaction for which Buyer shall have any obligation or liability,

 

ARTICLE VIII

 

COVENANTS

 

B. Covenants.

 

a.
Seller’s Negative Covenants. Seller shall not do any of the following with regard to the Subject Property without
first obtaining the prior, written consent of Buyer;

 

	 	i)	Create a lien, security interest or other encumbrance on the Subject Property other
than an encumbrance permitted by the Buyer;
	 	 	 
	 	ii)	Enter into any new contracts which affect the Subject Property; or
	 	 	 
	 	iii)	Take any action which would materially affect value, ownership or operation of the
Subject Property.

 

ARTICLE IX

 

CLOSING
CONDITIONS

 

9. Closing Conditions.

 

a.
Seller’s Closing Conditions. The obligation of Seller to consummate the transactions contemplated hereby is subject,
at the option of Seller, to the satisfaction on or prior to the Closing Date of all of the following conditions:

 

    	8

    	 

    

 

	 	i)	Representations. Warranties and Covenants. The (A) representations and warranties
of Buyer contained in this Agreement shall be true and correct in all material respects on and as of the Closing Date, and (B)
covenants and agreements of Buyer to be performed on or before the Closing Date in accordance with this Agreement shall have been
duly performed in all material respects.
	 	 	 
	 	ii)	Payment of Purchase Price, Buyer shall, at the request of the Seller, provide
Seller with Proof of Funds in the amount of the full Purchase Price.
	 	 	 
	 	iii)	No Action. On the Closing Date, no suit, action or other proceeding shall be
pending or threatened against Buyer before any governmental authority of competent jurisdiction seeking to enjoin or restrain
the consummation of this Agreement or recover damages from Seller resulting therefrom.

 

b. Buyer’s
Closing Conditions. The obligation of the Buyer to consummate the transaction contemplated hereby is subject, at the option
of the Buyer, to the satisfaction on or prior to the Closing Date of all of the following conditions:

 

	 	i)	Representations. Warranties and Covenants. The (A) representations and warranties
of Seller contained in this Agreement shall be true and correct in all material respects on and as of the Closing Date, and (B)
covenants and agreements of Seller to be performed on or before the Closing Date in accordance with this Agreement shall have
been duly performed in all material respects.
	 	 	 
	 	ii)	No Action. On the Closing Date, no suit, action or other proceeding (excluding
any such matter initiated by Buyer or any of its affiliates) shall be pending or threatened against Seller or the Subject Property
before any governmental authority of competent jurisdiction seeking to enjoin or restrain the consummation of this Agreement or
recover damages from Buyer resulting therefrom.
	 	 	 
	 	iii)	No Material Adverse Change. From the Effective Date to the Closing Date, there
shall not have been any material adverse change of the Subject Property equal to 5 percent (5%) or greater of the value, when
taken as a whole.

 

    	9

    	 

    

 

c.
Right to Terminate. Seller shall have the right to terminate this Agreement, without liability to Buyer, if the conditions
to Closing set forth in Section 9[a) are not satisfied. Likewise, Buyer shall have the right to terminate this Agreement, without
liability to Seller, if the conditions to Closing set forth in Section 9(b) are not satisfied.

 

ARTICLE X

 

CLOSING

 

10. Closing.
The Closing shall be held at the offices of the Buyer, or such other place or by such other method as the Parties shall
mutually agree, including electronically. At the Closing, the following shall occur;

 

a. Execution
and Delivery of Documents and instruments. The Seller shall execute, acknowledge and deliver to the Buyer an Assignment of
the Subject Leases in the form of “Exhibit A’ attached hereto.

 

b. Payment
of Purchase Price. Buyer shall deliver the Purchase Price to Seller by certified check or wire transfer of immediately available
funds, at the election of the Seller.

 

c. Fees
and Taxes. Each Party to this transaction shall be responsible for paying its own fees and taxes, if any.

 

d. Delivery
of Data. Seller shall deliver the Data (as defined above) to Buyer at Closing or within forty-eight (48) hours thereafter.
To the extent transferable, the Seller shall transfer possession of all Data (as located by Seller) to the Buyer on the Closing
Date.

 

e. Delivery
of Possession. Seller shall deliver exclusive possession of the Subject Property to Buyer.

 

f. Recording. Buyer
shall record and file the Assignment and other instruments. Any sales, use or transfer tax relative to such recording shall be
the responsibility of the Buyer,

 

ARTICLE XI

 

POST-CLOSING
COVENANTS

 

11. Post-Closing Covenants.

 

a.
Hydrocarbons. All Hydrocarbons produced from the Subject Property prior to the Closing Date and oil stock balances held
in the tanks as of the Effective Date, and all proceeds from the sale thereof shall be the property of the Buyer. All Hydrocarbons
produced on, or after the Closing Date shall be the property of Buyer.

 

    	10

    	 

    

 

b.
Invoices. Buyer expressly agrees that the Seller is not obligated to make any payments to Buyer in connection with any
outstanding invoices.

 

ARTICLE XII

 

OWNER
RATIFICATION

 

12. Owner Ratification.
Any provision contained in this Agreement to the contrary notwithstanding, should the approval by ratification of the owners of
either or both the Seller and Buyer be applicable to the transaction contemplated hereby the Closing described in Article X hereof
shall be deferred until any such ratification shall have occurred.

 

ARTICLE XIII

 

GOVERNING
LAW AND RESOLUTION OF DISPUTES

 

13. Any
and all disputes arising out of, relating to, or in connection with this Agreement, its formation, or any performance required
under this Agreement, shall be resolved by the Parties through amicable consultation. If any dispute is not resolved within thirty
(30) days, then any and all disputed arising out of, relating to or in connection with this Agreement shall be resolved
through binding arbitration. The Parties expressly acknowledge and agree that they are bound by any decision made by
a duly appointed arbitrator and have no right to file a civil lawsuit, other than to enforce an award made by an arbitrator.
Any such arbitration shall be conducted through the American Arbitration Association, before a single arbitrator. The parties
expressly agree that the arbitrator shall have the right to award penalties, punitive damages and attorney’s fees. The execution,
validity, nullification, interpretation, performance and resolution of dispute shall be governed by the laws of the State of Texas.

 

ARTICLE XIV

 

GENERAL
PROVISIONS

 

14. General Provisions.

 

a. Further
Assurances. Seller agrees to execute any and all documents which it has the authority to execute, whether before or after the
Closing, to aid Buyer in clearing or perfecting title and ownership to the Subject Property and to facilitate the receipt of the
proceeds of the sale of the production therefrom and attributable thereto. Buyer shall make any request for execution of such document
in writing and shall provide Seller with a copy of the document.

 

    	11

    	 

    

 

b. Entire Agreement
This Agreement, together with all Exhibits attached hereto, shall constitute the complete agreement between the Parties hereto
and shall supersede any and all prior agreements, whether written or oral, and any representations or conversations with respect
to the Subject Property.

 

c.
Confidentiality. If
the Closing does not occur, Seller will keep all the
information furnished by Buyer to Seller hereunder, or in contemplation hereof, strictly confidential including without limit
the Purchase Price and other terms of this Agreement, and will not use any of such information to Seller’s advantage or
in competition with Buyer, except to the extent such information: (i) was already in the public domain, not as a result of disclosure
by Seller, (ii) was already known to Seller, (iii) is developed by Seller independently from the information supplied by the Buyer,
or (iv) is furnished to Seller by a third parry independently of Seller’s investigation pursuant to the transaction contemplated
by this agreement

 

d. Notices.
All communications required or permitted under this Agreement shall be in writing and may be sent by e-mail and/or facsimile. Such
communication shall be deemed made when actually received, or if mailed by registered or certified mail, postage prepaid, addressed
as set forth below, shall be deemed made three (3) days after such mailing. Faxes and e-mails will be deemed to be received when
reflected in the fax confirmation sheet or by e-mail confirmation obtained by the sender. Either Party may by written notice to
the other, change the address for mailing such notices.

 

	 	Notices to Seller;
	 	 
	 	Chris Allick
	 	Managing Member
	 	Hunting Dog Capital LLC

 One Maritime Plaza,
    Suite 825
	 	San Francisco, CA 94111
	 	Direct Dial: 415-277-2292
	 	Facsimile: 415-236-6023
	 	chris@hdcap.com
	 	 
	 	with copies to
	 	 
	 	David S. Hamilton

 5739 Kanan Road, #251

 Agoura
    Hills, CA 91301

 Tel: (818) 735-0050
	 	Fax; (818) 879-5449

    dshatty@aol.com

 

    	12

    	 

    

 

	 	Notices to Buyer:
	 	 
	 	Cardinal Energy Group, Inc
	 	Timothy W. Crawford,
	 	Chief Operating Officer
	 	6037 Frantz Rd,Ste 103
	 	Dublin, OH 43017

 Direct Dial: 614-459-4959

    Facsimile: 614-389-6643

 tcrawford@cegx.us
	 	 
	 	with copies to
	 	 
	 	John J, Maalouf, Esq.
	 	Senior Partner
	 	Maalouf Ashford & Talbot, LLP
	 	500 Fifth Avenue, 14th FL
	 	New York, New York 10110
	 	Direct Dial: 212-789-8709
	 	Telephone: 212-789-8717
	 	Facsimile: 212-789-8718
	 	john.maalouf@maaloufashford.com

 

e. Binding Effect This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto, and their successors and assigns; provided, no assignment or delegation by either Party shall be made without the express consent of the other Party and if such consent is granted, no assignment or delegation shall relieve such Party of any of its obligations hereunder.

 

f. Incorporation of Exhibits. All exhibits and schedules referred to herein are expressly incorporated into and made a part of this Agreement

 

    	13

    	 

    

 

g. Headings, The headings of the articles and sections of this agreement are for guidance and convenience of reference only and shall not limit or otherwise affect any of the terms and provisions of this Agreement.

 

h. Expenses, All fees, costs and expenses incurred by the Parties in negotiating this Agreement and in consummating the transactions contemplated by this Agreement shall be paid by the Party that incurred such fees, costs and expenses.

 

i. Amendment and Waiver, This Agreement may be altered, amended or waived only by a written agreement executed by the Party to be charged. No waiver of any provision of this Agreement shall be construed as a continuing waiver of the provision.

 

j. Announcements. Buyer may, at its sole discretion, publicly disclose the contents and execution of this Agreement and the transactions contemplated hereby.

 

k. Third-Party Beneficiaries. Unless expressly stated to the contrary, no third party is intended to have any rights, benefits or remedies under this Agreement.

 

1.
Severance. If any provision of this Agreement is found to be illegal or unenforceable, the other terms of this Agreement
shall remain in effect
and this Agreement shall be construed as if the illegal or unenforceable provision had not been included.

 

m. Counterparts. This Agreement may be signed in any number of counterparts and each such counterpart shall be considered any original and an enforceable agreement.

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed below by their duly authorized representatives.

 

	CARDINAL ENERGY GROUP, INC.	 	HD SPECIAL SITUATIONS
	 	 	 	BY:	HUNTING DOG CAPITAL, LLC
	 	 	 	ITS:	GENERAL PARTNER
	 	 	 	 	 
	By:	/s/ Timothy W. Crawford	 	By:	/s/
    Chris Allick
	Name:	Timothy W. Crawford	 	Name:	Chris Allick
	Title:	CEO	 	Title:	Managing Partner

 

    	14

    	 

    

 

EXHIBIT
A

 

[Insert copy of Subject Property Description]

 

    	15

    	 

    

 

EXHIBIT
B

 

[Insert List of Contract to be Added]

 

    	16

    	 

    

 

EXHIBIT
C

 

[Insert copy of Assignment of Lease]

 

    	17

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