Document:

ex10-15.htm

 

Exhibit 10.15

$100,000 Note

Dated as of: 04/19/12

Maturity:  60 days

Amount: $100,000.00

FOR VALUE RECEIVED, Worthington Energy, Inc., a Nevada corporation (“Maker”) hereby promises to pay to the order of What Happened LLC, a California Limited Liability Company and/or his assignees (“Holder”), in lawful money of the United States of America, the principal amount of One Hundred Twenty-Five Thousand Dollars & No Cents ($125,000.00) (the “Principal Amount”) upon the terms set forth in this note
(this “Note”).

1.           Advance of Funds; Payment of Principal. Holder agrees to advance, and Maker agrees to accept, an amount of One Hundred Twenty-Five Thousand Dollars & No Cents ($125,000.00). All unpaid principal together with unpaid and accrued interest on the Principal Amount, shall be due and payable sixty (60) days from the date of funds delivered via wire transfer. The indebtedness evidenced by this Note is secured by a Deed of Trust dated of even date herewith, executed by Maker, as Grantor, to Jennifer D. Hamer, as Trustee, in favor of Holder, covering Maker’s
interest in the so-called Alvey Lease, recorded in Callahan County, Texas, in Volume 240, Page 014 (the “Alvey Lease”).  It is expressly understood and agreed that this Note requires a payment of One Hundred Twenty-Five Thousand Dollars & No Cents ($125,000.00) on the Maturity Date (the “Maturity Amount”).  Holder is under no obligation whatsoever to refinance this Note at maturity.  The Maker may prepay the Note at any time prior to the Maturity Date; however, in the case of such prepayment, Maker shall be obligated to pay the full Maturity Amount.

2.           Interest Rate.

(a)           Interest shall accrue from the Maturity Date on the Maturity Amount at a rate of 11% per annum (“Interest Rate”).  Maker and Holder specifically intend and agree to limit contractually the amount of interest payable under this Note and all other instruments and agreements related hereto to the maximum amount of interest lawfully permitted to be charged under applicable law.  “Applicable law” as used in this paragraph means that law in effect from time to time which lawfully permits the charging and collection of the
highest permissible lawful, nonusurious rate of interest on the transactions herein contemplated, including laws of the State of Texas and of the United States of America; and “maximum rate” as used in this paragraph means, with respect to the indebtedness evidenced hereby, the maximum lawful, nonusurious rate of interest (if any) which under applicable law Holder is permitted to charge from time to time with respect to such indebtedness.

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(b)           Upon the occurrence and during the continuation of any event of default listed in this Note, which event of default is not cured to the satisfaction of Holder within 10 days from the date such event of default first occurred, the unpaid Maturity Amount outstanding shall bear interest at a per annum rate equal to 11%.

4.           Conversion Option.  In lieu of payment of the Maturity Amount, Holder has the option of converting the obligation represented by this Note into 7.00% carried working interest in the entire DBAR project and also the Redwater (the “Project”) or comparable project in the event Redwater or DBAR is not an acquired project (the “Carried Interest”), with such Carried Interest being calculated as 7.00% of the net revenue interest that Maker holds in the Project. Holder will advise Maker whether it intends to exercise this conversion
option by the Maturity Date, however if either Project is not acquired by the time of the Maturity Date the Maker shall have the option to receive payment in full and reserve the right to convert the carried working interest at time of Project close for $100,000.00 One-Hundred Thousand Dollars. This conversion shall be in addition to any other agreed to working interest already deemed agreed to by and between both parties.

5.           Events of Default.  If any of the following events of default shall occur, then (i) the entire sum remaining unpaid under this Note, including all accrued interest, shall immediately become due and payable on demand:

(a)           the Maker defaults for a period of more than 5 days in the payment of any interest accrued under this Note;

(b)           the Maker or any guarantor of any indebtedness of the Maker (“Guarantor”) defaults under any other indebtedness or liability for borrowed money;

(c)           the Maker or any Guarantor defaults under any other agreement with Holder or its assigns;

(d)           the Maker or any Guarantor becomes insolvent, adopts a plan of dissolution, commits an act of bankruptcy, makes a general assignment for the benefit of creditors, discontinues its business as a going concern or calls a meeting of creditors, files or has filed against it any petition under any bankruptcy law or act or for the appointment of a receiver, or commences or has commenced against it under any bankruptcy or insolvency law or act any proceeding for the relief of the Maker or any Guarantor;

(e)           any Guarantor, if an individual, dies; or

(f)           Holder or its assigns deems any amounts due under this Note insecure.

6.           Waivers by Maker.  Except as expressly otherwise provided herein, the Maker and any Guarantor waives presentment for payment, demand, notice of non-payment, notice of protest and protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default or enforcement of the payment of this Note, and agrees that its liability shall be unconditional without regard to the liability of any other party.  The Maker further agrees that it
shall not assert any right of set-off or counterclaim it might have against the Holder in connection with the enforcement by Holder of its rights hereunder. The Maker further waives any and all right to trial by jury in any controversy or suit relating to this Note.

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7.           Waivers by Holder.  The Holder shall not be deemed, by any act or omission, to have waived or relinquished any of the Holder's rights or remedies hereunder, unless such waiver or relinquishment is in writing and signed by the Holder and then only to the extent specifically set forth in such writing. A waiver or relinquishment of any right or remedy with respect to one event of default hereunder shall not be construed as continuing nor as a bar to or waiver or relinquishment of any right or remedy with respect to a subsequent event of default
hereunder.

8.           Governing Law.  This Note shall be deemed to have been made under, and the rights and obligations of the parties hereto shall be construed as to both validity and performance, and enforced in accordance with and governed by, the laws of the State of Texas, without giving effect to the conflicts of laws provisions thereof.

9.           Binding Effect.  This Note shall be binding upon, and inure to the benefit of, the Holder and its respective assigns and successors. This written Note represents the final agreement between the parties with respect to the contents hereof and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.  There are no unwritten oral agreements between the parties

10.           Enforcement of Note.  The Maker and any Guarantor shall pay on demand all expenses incurred or sustained by Holder and its assigns in connection with the enforcement or protection of their rights under this Note, including all costs of collection and the reasonable fees and disbursements of counsel.

11.           Severability.  Wherever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law. If, however, any provision of this Note shall be prohibited by or deemed invalid under applicable law, such provision shall, to the fullest extent permitted by law, be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Note.

12.           Assignment.  This Note is assignable by Holder in its sole discretion without notice to or the consent of Maker or any Guarantor.

13.           Personal Guarantee.  This Note is personally guaranteed by Samual Butero and Charles Volk of Worthington Energy.

[Signatures appear on next page]

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IN WITNESS WHEREOF, the Maker has caused this Note to be executed, on its behalf, by its duly authorized officer as of the day and year first above written.

 

	
MAKER:

 

Worthington Energy, Inc., a Nevada corporation

 

	 	
LENDER:

 

What Happened LLC, A California Corporation

 

	
By:

	 	
By:

	  
	
Name:

	 	
Name:

	  
	
Title:

	 	
Title:

	  
	  	 	  
	  	 	  

  

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5ex10-16.htm

 

Exhibit 10.16

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  LENDERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY
PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

WORTHINGTON ENERGY, INC.

PROMISSORY NOTE

	
$25,000.00

	
San Francisco, California

	  	
August 9, 2012

	
1.

	
Principal and Interest

FOR VALUE RECEIVED, Worthington Energy, Inc., a Nevada corporation (the "Company") hereby absolutely and unconditionally promises to pay to Ronald W. Moeckel  (the "Lender"), or order, the principal amount of Twenty Eight Thousand Seven Hundred Fifty dollars ($28,750) on or before November 9, 2012, which includes $3,750 of interest for the 90 day term.

2.                      Repayments and Prepayments.

 

	 	
a.

	All amounts due under this Note shall be due and payable on or prior to November 9, 2012.
	  	  	  
	  	
b.

	The Company may prepay this Note at any time, either in whole or in part, without premium or penalty and without the prior consent of the Lender.

 

3.                      Events of Default; Acceleration.

 

a.          The prin­cipal amount of this Note is subject to prepayment in whole or in part upon the occurrence and during the continuance of any of the following events (each, an “Event of Default”):  the initiation of any bankruptcy, insolvency, moratorium, receivership or reorganization by or against the Company, or a general assignment of assets by the Company for the benefit of creditors.  Upon the occur­rence of any Event of Default, the entire unpaid principal balance of this Note and all of the unpaid inter­est
accrued thereon shall be immediately due and payable.

 

  

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b.         No remedy herein conferred upon the Lender is intended to be exclusive of any other remedy and each and every remedy shall be cumulative and in addition to every other remedy hereunder, and under the Purchase Agreement, now or hereafter existing at law or in equity or otherwise.

4.                      Notices.

 

a.         All notices, reports and other communica­tions required or permitted hereunder shall be in writing and may be delivered in person, by telecopy with written confirmation, overnight delivery service or U.S. mail, in which event it may be mailed by first-class, certified or registered, postage prepaid, addressed (i) if to an Lender, at such Lender’s address as the Lender shall have furnished the Company in writing) and (ii) if to the Company at such address as the Company shall have fur­nished the Lenders in writing).

 

b.         Each such notice, report or other communication shall for all purposes under this Note be treated as effective or having been given when delivered if delivered personally or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or, if sent by telecopier with written confirmation, at the earlier of (i) 24 hours after confirmation of transmission by the sending telecopier machine or (ii) delivery of written confirmation.

5.                      Miscellaneous.

 

a.         Neither this Note nor any provisions hereof may be changed, waived, discharged or terminated orally, but only by a signed statement in writing.

 

b.         No failure or delay by the Lender to exercise any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other right, power or privilege.  The provisions of this Note are severable and if any one provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, such invalidity or unenforce­ability shall affect only such provision in such jurisdiction.  This Note expresses the entire understanding of the parties with respect to the
transac­tions contemplated hereby.  The Company and every endorser and guarantor of this Note regardless of the time, order or place of signing hereby waives presentment, demand, protest and notice of every kind, and assents to any extension or postponement of the time for payment or any other indulgence, to any substitution, exchange or release of collateral, and to the addition or release of any other party or person primarily or secondarily liable.

 

c.         If Lender retains an attorney for collection of this Note, or if any suit or proceeding is brought for the recovery of all, or any part of, or for protection of the indebtedness respected by this Note, then the Company agrees to pay all costs and expenses of the suit or proceeding, or any appeal thereof, incurred by the Lender, including without limitation, reasonable attorneys' fees.

 

  

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d.         This Note shall for all purposes be governed by, and construed in accordance with the laws of the State of Nevada (without reference to conflict of laws).

 

e.         This Note shall be binding upon the Company's successors and assigns, and shall inure to the benefit of the Lender's successors and assigns.

 

f.          In no event shall the interest rate and other charges under this Note exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem applicable hereto.  In the event that a court determines that Lender has received interest and other charges under this Note in excess of the highest permissible rate applicable hereto, such excess shall be deemed received on account of, and shall automatically be applied to reduce, the outstanding principal amount hereunder and the provisions thereof shall be deemed amended to provide for the highest permissible rate.  If
there is no outstanding principal amount under this Note, Lender shall refund such excess to the Company.

 

IN WITNESS WHEREOF, the Company has caused this Note to be executed by its duly authorized officer to take effect as of the date first hereinabove written.

	  	
WORTHINGTON ENERGY, INC.

	  	  
	  	  
	  	
By: _____________________________________________

	  	  
	  	
Title: ____________________________________________

 

 

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