Document:

Exhibit 10.1

 

WORKING INTEREST PURCHASE AGREEMENT

 

This Working Interest
Purchase Agreement (the “Agreement”) entered into this ___ day of ________ 2013 by and between HLA Interests, LLC,
a Texas limited liability company (the “Seller”) and Cardinal Energy Group, Inc., a Nevada corporation (the “Purchaser”).

 

RECITALS

 

		A.	Purchaser is an SEC reporting and operating public energy company that desires to acquire certain
oil and gas assets.

 

		B.	Seller is an Oil and Gas Management Company that owns, controls, and has an 85% working interests/75%
NRI (the “Working Interests”) in, certain Oil and Gas leases, wells, and other property and assets located in the Conway-Dawson
Leases as more specifically describe in Exhibit “A” hereto (the “Conway-Dawson Property”).

 

		C.	Purchaser desires to acquire from Seller 100% of its Working Interest in the Conway-Dawson Property,
which Working Interest represents 85% of all of the working interests and 75% of the NRI in the Conway-Dawson Property.

 

		D.	Purchaser has agreed that all rights, titles, interests and privileges granted herein unto Purchaser
and all rights and obligations attributable thereto after the Closing Date hereof shall be owned and borne by Purchaser in the
percentage set forth in this agreement.

 

NOW THEREFORE, in
consideration of good and valuable consideration, Buyer and Seller hereby agree as follows:

 

1.    Purchase and
Sale.

 

1.1. Purchase and Purchase
Price. Seller shall sell to Purchaser and Purchaser shall purchase from Seller (the “Purchase”) the Working Interests
for a purchase price of $400,000 (the “Purchase Price”).

 

1.2. Terms of Purchase.
The Purchase Price shall be paid pursuant to a balloon Secured Promissory Note (the “Note”) with an annual interest
rate of six percent (6%) with the full payment of remaining outstanding principal and accrued interest due twenty-four (24) months
from the date hereof. The Note shall be in the form of Exhibit “B” attached hereto. In addition,

 

1.2.1. If the Purchaser
tenders to Seller full repayment of the principal amount of the Note and accrued interest within 90 days from the date hereof,
the outstanding principal amount of the note and accrued interest shall be deemed to be 90% of the original amount, the payment
of which by Purchaser to Seller shall be full satisfaction of the debt evidenced by the Note.

 

1.2.2. 40% of the Monthly
Proceeds after the Lease Operating Expenses are deducted will be paid directly to the Seller to reduce the debt under the Note,
with the first such payments applied to the reduction of principal and the balance to accrued but unpaid interest.

 

1.2.3. No prepayment
penalty on the Note.

 

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2.    Security.
As collateral security for the payment of the Note, the Buyer shall deliver to the Seller a security agreement in the form of Exhibit
“C” attached hereto (the “Security Agreement”). Purchaser shall further execute all documents and perform
all action necessary to perfect Seller’s security interests herein in accordance with the Uniform Commercial Code. The Security
Agreement shall grant the Seller a security interest in the following:

 

2.1. All rights, titles,
interests and estates now owned or hereafter acquired by the Purchaser in and to the Conway-Dawson Property and

 

2.2. any other instrument
and collateral that Seller deems necessary to protect its interests under the Note, Security Agreement and this Agreement.

 

3.    Closing.

 

3.1. Timing. Subject to
the satisfaction or waiver of each of all pre closing conditions, the Closing shall take place and be effective on  ,
2013 at the offices of   located at ______________ or on such other date and at such other location and time as may be
mutually agreed upon (the “Closing Date”).

 

3.2. Purchaser’s
Deliverables. At the Closing, Purchaser shall deliver to Seller the: (a) Note and (b) Security Agreement;

 

3.3. Seller’s Deliverables.
At the Closing, Seller shall deliver to Purchaser an Assignment of Oil and Gas Leases in the form of Exhibit “D”
attached hereto, which assignment shall represent the Conway-Dawson Property and shall duly transfer to the Purchaser legal title
to the Working Interests and the Conway-Dawson Property.

 

4.    Purchaser’s
Representations. Purchaser hereby represents and warrants to the Seller that Purchaser has full legal right, power and authority
to enter into this agreement and to consummate or cause to be consummated the obligations contemplated in this Agreement.

 

5.    Sellers’
Representations. Seller hereby represents and warrants to Purchaser that: (a) Seller is the owner of the Working Interests
and the Conway-Dawson Property, free and clear of any direct or indirect claims, liens, security interests, charges, pledges or
encumbrances of any nature whatsoever and (b) Seller has full legal right, power and authority to enter into this agreement and
to consummate or cause to be consummated the obligations contemplated in this agreement.

 

6.    Conditions To
The Obligations Of Purchaser. The obligations of Purchaser under this Agreement are subject to, at the option of Purchaser,
the satisfaction or waiver of the following conditions prior to or on the Closing Date: all the terms, covenants, agreements and
conditions of this Agreement to be complied with and performed by Seller on or prior to the Closing Date shall have been fully
complied with and performed; the representations and warranties made by Seller in this Agreement shall be true and correct in all
material respects.

 

7.    Conditions To
The Obligations Of Seller. The obligations of Seller under this Agreement are subject to, at the option of Seller, the satisfaction
or waiver of the following conditions prior to or on the Closing Date: all the terms, covenants, agreements and conditions of this
Agreement to be complied with and performed by Purchaser on or prior to the Closing Date shall have been fully complied with and
performed; the representations and warranties made by Purchaser shall be true and correct in all material respects.

 

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8.    Other Agreements.

 

8.1. Inspection of Records.
At all times prior to the full payment of the Purchase Price, Purchaser and its designated officers, employees, attorneys, accountants
and other authorized representatives shall (i) have all reasonable access during normal business hours to the offices and properties
of Seller in order that Purchaser may have full opportunity to make such reasonable legal, business or other reviews or investigations
of the business, it being understood that such access shall not cause any unreasonable burden on or interruption to the normal
operations of Seller and Purchaser shall give Seller reasonable notice of any such inspections, (ii) receive from Seller such additional
information as to the Conway-Dawson Property, properties, operations and prospects of the business as Purchaser shall from time
to time reasonably request, and (iii) receive Seller’s cooperation in permitting appropriate and applicable investigation
of the business and properties of Seller.

 

8.2. Maintenance. At all
times prior to the full payment of the Promissory Note, Purchaser shall maintain in full force and effect (and renew, when required)
all licenses, permits, consents and authorizations which are material to the business as a whole and prosecute diligently any pending
applications with respect thereto, perform all obligations imposed upon it by law and to retain and maintain all the property used
in the operation of the business.

 

8.3. Confidential Information.
Seller and Purchaser hereby agree that neither one will, at any time from and after the Closing Date, directly or indirectly, without
the prior written consent of the other, disclose (other than to its designated officers, employees, attorneys, accountants, assignees
and other authorized representatives), the terms or conditions of the transaction contemplated herein, and the records, information,
trade secrets, and other information obtained by Purchaser in its inspection and due diligence concerning the Seller’s records
of the Conway-Dawson Property, business and properties.

 

8.4. Preservation of Business
Organization. Except as otherwise contemplated by this Agreement, at all times prior to the Closing Date and Purchaser taking possession
of the Conway-Dawson Property , (A) Seller shall (i) cause its business to be managed in accordance with the best interests of
the business and substantially as heretofore managed and conducted, and (ii) use its best efforts, to the extent that it is in
the best interests of the business, to keep available to Purchaser the services of its present employees and to preserve the present
relationships of the suppliers and others having business relations with Seller; and (B) without limiting the generality of the
foregoing, Seller shall not, without prior written consent of Purchaser, (i) dispose of any of its assets or properties or incur
any obligation or liability other than as required in connection with this Agreement, or in “arms-length” transactions
in the usual and ordinary course of business consistent with the business practices heretofore followed by Seller; (ii) take or
suffer any action which may adversely affect the normal conduct of its business; (iii) increase salaries of any employees or engage
any new employee; (iv) make or commit to make any capital expenditures; (v) fail to keep its assets and properties in good repair,
order and condition, reasonable wear and tear excepted, or to maintain its existing insurance in effect; or (vi) incur any material
obligations or liabilities or enter into any material transaction except in the ordinary course of business consistent with past
practices. During the period from the date hereof to the Closing Date, Seller shall consult with one or more designated representatives
of Purchaser as to material operational matters and the general status of ongoing operations. Seller shall notify Purchaser of
any emergency or unanticipated change in the normal course of the business which is or may be material thereto and shall keep Purchaser
fully informed of such events and permit Purchaser’s representatives to participate in all discussions relating thereto.

 

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9.    Miscellaneous.

 

9.1. Expenses.
Each Party shall bear its own legal expenses and costs in connection herewith.

 

9.2. Attorneys Fees.
In the event either Party shall be required to retain the services of an attorney to enforce any of its rights hereunder, the prevailing
Party shall be entitled to receive from the other Party, all costs and expenses including, but not limited to, court costs and
attorney’s fees (whether in a court of original jurisdiction or one or more courts of appellate jurisdiction) incurred by
it in connection therewith.

 

9.3. Applicable Law.
This agree men shall be governed by the laws of the state of Texas. 

 

9.4. Further Assurances.
Following the Closing Date, each party shall, from time to time, execute and deliver such additional instruments, documents, conveyances
or assurances and take such other actions as shall be necessary, or otherwise reasonably be requested by any other party, to confirm
and assure the rights and obligations provided for in this Agreement and render effective the consummation of the purchase and
sale contemplated hereby, or otherwise to carry out the intent and purposes of this Agreement.

 

The Parties have executed this Agreement on
the day first above written.

 

HLA Interests, LLC:

  

	By: 	 	 
	Name: 	 	 
	Title: 	 	 

  

Cardinal Energy Group, Inc.:

  

	By: 	 	 
	Name: 	 	 
	Title: 	 	 

  

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Exhibit “A”

 

Conway-Dawson Property

 

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Exhibit “B”

 

Secured Promissory Note

 

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Exhibit “C”

 

Security Agreement

 

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Exhibit “D”

 

Assignment of Oil and Gas Leases

 

    	8Exhibit 10.2

 

SECURED PROMISSORY NOTE

 

	US$ 400,000.00 	July __, 2013

 

FOR VALUE RECEIVED, Cardinal
Energy Group, Inc., a Nevada corporation (“Maker”), hereby promises to pay to the order of HLA Interests, LLC, a Texas
limited liability company whose address is 769 Kneese Road, Fredericksburg, Texas 78624 (“Payee”), in accordance with
the terms hereinafter provided, the principal amount of Four Hundred Thousand U.S. Dollars (US$400,000.00), together with accrued
but unpaid interest thereon, all as provided in this Secured Promissory Note (as the same may be supplemented, modified, amended
or restated from time to time in the manner provided herein, this “Note”). This Note was executed and entered into
in connection with that certain Working Interest Purchase Agreement between the parties hereto as of the date hereof (the “Purchase
Agreement”).

 

1. This Note shall
bear interest at the rate of six percent (6 %) per annum. Interest shall be computed on the basis of a 360-day year of twelve 30-day
months and shall accrue and be payable on the Payment Date (as defined below). Upon the occurrence of an Event of Default (as defined
below), the interest rate on the outstanding principal balance of this Note shall increase to twenty-one percent (21%) per annum.

 

2. Unless paid earlier,
payments of outstanding principal, together with accrued and unpaid interest thereon, shall be due 24 months following the date
hereof (the “Payment Date”).

 

(a) If the Maker
tenders to Payee full repayment of the principal amount of the Note and accrued interest within 90 days from the date hereof, the
outstanding principal amount of the note and accrued interest shall be deemed to be 90% of the original amount, the payment of
which by Maker to Payee within said 90 day period shall be full satisfaction of the debt evidenced by the Note. That is, the Maker
can fully satisfy this Note by payment of $360,000 plus accrued interest within 90 days of the date hereof.

 

(b) To the extent
that monthly Net Revenues generated by the working interests on the Conway-Dawson Property described in the Purchase Agreement
exceed that lease operating costs on the Conway-Dawson Property then forty percent (40%) of that excess shall be paid to the Payee
as partial or full, as the case may be, repayment of the obligation under the Note herein.

 

3. Payments due under
this Note shall be in lawful money of the United States and in immediately available funds in accordance with the written instructions
of Payee. In the absence of such instructions, Maker shall make the payment by check timely delivered to Payee.

 

4. This principal
amount of this Note and all accrued by unpaid interest thereon may be prepaid, in whole or in part, at any time by Maker without
penalty or premium. Prepayments shall be applied first to accrued and unpaid interest and then to principal.

 

5. The obligations
of Maker hereunder are secured by a security interest in certain assets of Maker pursuant to that Security Agreement of even date
herewith executed by Maker in favor of Payee.

 

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6. Maker waives demand,
presentment, protest and notice of any kind and consents to the extension of time for payments or other indulgence with respect
to this Note, all without notice.

 

7. If an Event of
Default (as defined below) occurs and is continuing, Payee may, by written notice given to Maker, declare the principal of and
accrued interest on this Note to be due and payable immediately. In the event any action is commenced by Payee to enforce his rights
under this Note and Payee prevails in such action, Maker shall reimburse Payee for Payee’s reasonable legal fees incurred
in connection therewith.

 

8. For the purposes
of this Note, an “Event of Default” means the occurrence of any of the following: (a) Maker shall fail to make any
payment of principal or interest on the Payment Date, and such failure shall continue unremedied for a period of (10) days after
written notice from Payee, or (b) Maker fails to comply with any of its other obligations under this Note and such default shall
continue unremedied for a period of thirty (30) days after written notice from Payee, or (c) Maker fails to comply with any of
its obligations under the Security Agreement and such default shall continue unremedied for a period of thirty (30) days after
written notice from Payee or (d) Maker, pursuant to or within the meaning of any Bankruptcy Law (as hereinafter defined): (i) commences
a voluntary case; (ii) becomes subject to an involuntary case which is not withdrawn, discharged or stayed within sixty (60) days
after the commencement thereof; (iii) consents to the appointment of a Custodian (as hereinafter defined) for Maker or for all
or substantially all of Maker’s property; (iv) becomes subject to the appointment of a Custodian for Maker or for all or
substantially all of Maker’s property which appointment is not withdrawn, discharged or stayed within sixty (60) days after
the appointment thereof; or (v) makes a general assignment for the benefit of Maker’s creditors. As used in this Note, the
term “Bankruptcy Law” means Title 7, Title 11 or Title 13 of the United States Code or any similar federal or state
law for the relief of debtors, and the term “Custodian” means any receiver, trustee, assignee, liquidator or similar
official under any Bankruptcy Law.

 

9. In no event whatsoever
shall the amount of interest paid or agreed to be paid to Payee exceed the maximum amount permissible under applicable law. If
Payee shall receive as interest, an amount which would exceed the highest lawful rate, the amount which would be excessive interest
shall be applied to the reduction of the principal amount outstanding under this Note (without prepayment premium or penalty).

 

10. This Note may
be assigned, transferred, sold or pledged by Payee without the prior written consent of Maker. This Note shall be binding upon
Maker and its successors and inure to the benefit of Payee and Payee’s heirs, executors, administrators and permitted assigns.
If any term of this Note shall be held invalid, illegal or unenforceable, the validity of all other terms and provisions hereof
shall in no way be affected thereby. This Note may not be changed, modified or terminated orally, but only by an agreement in writing,
signed by the party to be charged therewith. No delay, failure or omission by the Payee or any subsequent holder in respect of
the exercise of any right or remedy granted hereunder or allowed by law to the Payee or other holder shall constitute a waiver
of the right to exercise the same at any future time or in the same or other circumstances.

 

11. This Note shall
be governed by and construed in accordance with the laws of the State of Texas without giving effect to the principles of conflicts
of law.

 

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12. Any notice, request
or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given if personally
delivered or mailed by registered or certified mail, postage prepaid, or delivered by facsimile transmission, to such party at
its address or telecopier number set forth below, or such other address or telecopier number as such party may hereinafter specify
by notice to each other party thereto:

 

 

If to Maker, to:

 

Cardinal Energy Group, Inc.

6037 Franz Road, Suite 103

Dublin, Ohio 43017

 

If to Payee:

 

HLA Interests, LLC

769 Kneese Road,

Fredericksburg, Texas 78624

 

13. If one or more
provisions of this Note are held to be unenforceable under applicable law, such provisions shall be excluded from this Note, and
the balance of this Note shall be interpreted as if such provisions were so excluded and shall be enforceable in accordance with
its terms.

 

IN WITNESS WHEREOF, the undersigned Maker has
executed this Secured Promissory Note as of the date first written above.

 

Cardinal Energy Group, Inc.

 

	By: 	 	 
	Name: 	 	 
	Title: 	 	 

  

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