Document:

Exhibit 10.2

     

    VOTING
AGREEMENT

     

    THIS VOTING AGREEMENT (this
“Agreement”) is
made as of June 1, 2010, by and among Sonic Solutions, a California corporation
(“Parent”),
DivX, Inc., a Delaware corporation (“Company”), and the
undersigned Stockholder (“Stockholder”) of
Parent.

     

    RECITALS

     

    WHEREAS, concurrently with the
execution of this Agreement, Parent, Siracusa Merger Corporation, a Delaware
corporation and a wholly owned subsidiary of Parent (“Merger Sub I”),
Siracusa Merger LLC, a Delaware limited liability company and a wholly owned
subsidiary of Parent (“Merger Sub II” and
together with Merger Sub I, the “Merger Subs”), and
Company are entering into an Agreement and Plan of Merger (as the same may be
amended from time to time, the “Merger Agreement”),
pursuant to which, among other matters,  Merger Sub I will merge with
and into Company and Company will merger into Merger Sub II (the “Merger”);

     

    WHEREAS, Stockholder is the
beneficial owner of, or otherwise has the power to vote or direct the vote of,
the Shares set forth on the signature page to this Agreement; and

     

    WHEREAS, as a condition to the
willingness of Company to enter into the Merger Agreement, and as a material
inducement and in consideration therefor, Stockholder has agreed to enter into
this Agreement.

     

    NOW, THEREFORE, in
consideration of the foregoing and the representations, warranties, covenants
and promises contained herein, and for other good and valuable consideration,
the parties hereto agree as follows:

     

    ARTICLE
I

    DEFINITIONS

     

    1.1         Capitalized
Terms.  Capitalized terms used and not defined herein shall
have the respective meanings ascribed to them in the Merger
Agreement.

     

    1.2         Other
Definitions.  The following terms shall have the following
respective meanings:

     

    (a)          “Adverse Proposal”
means:  (i)  any action, proposal or transaction that would
reasonably be expected to result in a breach of any covenant, agreement,
representation or warranty or any other obligation of Parent set forth in the
Merger Agreement or of Stockholder contained in this Agreement; or (ii) any
other action, proposal or transaction that is intended, or could reasonably be
expected, to impede, interfere with, delay, postpone, or adversely affect the
Merger and the other transactions contemplated by this Agreement and the Merger
Agreement.

     

    (b)          “beneficial ownership”
shall have the meaning reflected in Rule 13d-3 promulgated under the
Securities Exchange Act of 1934, as amended.

    
      
         

      

      
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    (c)          “Constructive Sale”
means with respect to any security, a short sale with respect to such
security, entering into or acquiring an offsetting derivative
contract with respect to such security, entering into or acquiring a
futures or forward contract to deliver such security or entering into any other
hedging or other derivative transaction that has the effect of either directly
or indirectly materially changing the economic benefits and risks of
ownership.

     

    (d)          “Permitted Transfer”
means a Transfer of Shares by Stockholder: (a) if Stockholder is an individual:
(i) made pursuant to, and in compliance with, a written plan that meets the
requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as
amended, established prior to the date hereof; (ii) to any member of
Stockholder’s immediate family; or to a trust for the benefit of Stockholder or
any member of Stockholder’s immediate family; or (iii) upon the death of
Stockholder; or (b) if Stockholder is a partnership or limited liability
company, to one or more partners or members of Stockholder or to an affiliated
corporation under common control with Stockholder; provided, however, that other
than in the case of a Permitted Transfer effected pursuant to subsection (a)(ii)
above, a Permitted Transfer shall be permitted only if, as a precondition to
such Permitted Transfer, the transferee agrees in a writing, reasonably
satisfactory in form and substance to Company, to be bound by all of the terms
of this Agreement.

     

    (e)          “Shares” means
(i) all shares of Parent capital stock that, as of the date of this
Agreement, are owned beneficially or of record by such Stockholder or for which
such Stockholder otherwise has the right to vote or direct the vote, and
(ii) all other shares of Parent capital stock of which such Stockholder
acquires beneficial or record ownership or the right to vote or direct the vote
prior to termination of the Voting Period; provided that Shares held by an
Affiliate of Stockholder for which Stockholder disclaims beneficial ownership
shall not constitute Shares for purposes of this Agreement.

     

    (f)           “Transfer” means with
respect to any security, the direct or indirect, sale, assignment, transfer,
tender, pledge, hypothecation, or the grant, creation or sufferance of any lien
or encumbrance in or upon, or the gift, placement in trust, or the Constructive
Sale or other disposition of such security (including transfers by testamentary
or intestate succession or otherwise by operation of law) or any right, title or
interest therein (including, but not limited to, any right or power to vote to
which the holder thereof may be entitled, whether such right or power is granted
by proxy or otherwise), or the record of beneficial ownership thereof, the offer
to make such a sale, transfer, Constructive Sale or other disposition, and each
agreement, arrangement or understanding, whether or not in writing, to effect
any of the foregoing.

     

    (g)          “Voting Period” means
the period from and including the date of this Agreement through and including
the date of the earlier to occur of (i) the Effective Time of the First
Merger,  (ii) the date on which the Merger Agreement is terminated by
Company pursuant to Section 7.1 thereof, and (iv) such date and time as any
amendment or change to the Merger Agreement is effected without Stockholder’s
consent that increases the Exchange Ratio or the Merger Cash Consideration above
the values set forth in the Merger Agreement as of the date hereof.

     

    
      
        
        

      

      
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    ARTICLE
II

    VOTING
AGREEMENT AND PROXY

     

    2.1         Agreement to Retain
Shares.  Prior to the termination of the Voting Period,
Stockholder shall not, and shall not permit any Person to, directly or
indirectly, other than in the case of a Permitted Transfer:

     

    (a)          Transfer
any Shares or discuss, negotiate, make an offer or enter into an agreement,
commitment or other arrangement, whether or not in writing, with respect to any
Transfer of the Shares; provided, that nothing in
this Agreement shall be deemed to restrict the ability of Stockholder to
exercise any Parent Options or Parent Restricted Stock Units during the Voting
Period;

     

    (b)          deposit
any Shares into a voting trust, grant a proxy that is inconsistent with this
Agreement or enter into an agreement of any kind with respect to the voting of
any Shares; or

     

    (c)          take
any other action that could restrict or otherwise adversely affect Stockholder’s
legal power, authority and right to comply with its obligations under this
Agreement.

     

    2.2         Agreement to Vote
Shares.  During the Voting Period, at every meeting of the
stockholders of Parent called with respect to any of the following, and at every
postponement or adjournment thereof, and on every action or approval by written
consent or resolution of the stockholders of Parent with respect to any of the
following, Stockholder shall vote or cause to be voted (including by written
consent, if applicable), to the extent not voted by the Person(s) appointed
under the proxy granted pursuant to Section 2.5, all Shares outstanding as
of the applicable record date:

     

    (a)          in
favor of (i) approval and adoption of the Merger and the Merger Agreement
(including the Share Issuance) and (ii) any other transactions contemplated
by the Merger Agreement or other matters that could reasonably be expected to
facilitate the Merger; and

     

    (b)         against
the adoption of any Adverse Proposal.

     

    Stockholder
may vote the Shares on all other matters not referred in this Agreement, and the
attorneys and proxies named herein may not exercise the proxy rights described
in Section 2.5 with respect to such other matters.

     

    2.3         Manner of
Voting.  Stockholder shall cast its votes or execute consents
required to be cast or executed pursuant to this Agreement in accordance with
the applicable procedures relating thereto so as to ensure that such votes or
consents are duly counted for purposes of determining that a quorum is present
(if applicable) and for purposes of recording the results of such votes or
consents.  Upon request of Company, Stockholder shall promptly (and in
any event at least five (5) Business Days prior to any applicable stockholder
meeting) provide evidence of its compliance with the provisions of
Section 2.2 and this Section 2.3.

     

    2.4         Capacity as
Stockholder.  No person executing this Agreement who is or
becomes an officer or director of Parent makes any agreement or understanding
herein in his or her capacity as such officer or
director.  Stockholder signs solely in its capacity as the beneficial
owner of its Shares.  Nothing herein shall limit or affect any actions
taken by Stockholder or any officer, director, employee or representative of
Stockholder in his or her capacity as an officer or director of
Parent.

    
      
         

      

      
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    2.5         Grant of Irrevocable
Proxy.

     

    (a)          Stockholder
hereby irrevocably appoints Company and any designee of Company, and each of
them individually, as Stockholder’s proxy and attorney-in-fact, with full power
of substitution and resubstitution, to vote or execute consents during the
Voting Period, with respect to the Shares, in accordance with
Section 2.2.  This proxy is given to secure the performance of
the duties of Stockholder under this Agreement.  Stockholder shall
promptly cause a copy of this Agreement to be deposited with Parent at its
principal place of business.  Stockholder shall take any further
action and execute any other instruments as may be necessary to effectuate the
intent of this proxy.

     

    (b)          The
proxy and power of attorney granted pursuant to this Section 2.5 shall be
irrevocable during the Voting Period to the fullest extent permitted by
applicable law, shall be deemed to be coupled with an interest sufficient at law
to support an irrevocable proxy and shall revoke any and all prior proxies
granted by Stockholder.  Stockholder acknowledges that such proxy
constitutes an inducement for Company to enter into the Merger
Agreement.  The power of attorney granted by Stockholder is a durable
power of attorney and shall survive the dissolution, bankruptcy, death or
incapacity of Stockholder.  The proxy and power of attorney granted
hereunder shall terminate only upon the termination of the Voting
Period.

     

    ARTICLE
III

    ADDITIONAL
COVENANTS

     

    3.1         HSR Requirements.
Stockholder shall cooperate with Company in connection with the making of the
filings required to be made by Company under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 or any antitrust and competition laws of any other
applicable jurisdiction and any other applicable law.

     

    3.2         Appraisal
Rights.  Stockholder hereby waives any rights of appraisal or
rights to dissent from the Merger or the adoption of the Merger Agreement that
it may have under applicable law and shall not permit any such rights of
appraisal or rights of dissent to be exercised with respect to any
Shares.

     

    3.3         Legending of
Shares.  If so requested by Company, Stockholder hereby agrees
that the Shares shall bear a legend stating that they are subject to this
Agreement and to an irrevocable proxy.

     

    3.4           Cooperation.  Stockholder
shall cooperate fully with Company and, without limitation of the foregoing,
shall execute and deliver such further documents, certificates, agreements and
instruments and take such further actions as may be reasonably requested by
Company to evidence or reflect the transactions contemplated by this Agreement
and carry out the intent of this Agreement.  Stockholder shall not
take, or cause to be taken, any action inconsistent with or that interferes with
the consummation of the Merger and the transactions contemplated by the Merger
Agreement.

    
      
         

      

      
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    ARTICLE
IV

    REPRESENTATIONS,
WARRANTIES AND COVENANTS OF STOCKHOLDER

     

    Stockholder
hereby represents, warrants and covenants to Company as follows:

     

    4.1         Ownership.  Stockholder
has good and marketable title to, and is the sole legal and beneficial owner of,
all the Shares set forth on the signature page hereto, in each case free and
clear of all liabilities, claims, liens, options, proxies, charges, and
encumbrances of any kind or character whatsoever, including rights of first
refusal or preemptive rights of any kind.  Stockholder has sole voting
power and sole power of disposition with respect to all the Shares, with no
restrictions on its voting rights or rights of disposition pertaining
thereto.  No proceedings are pending which, if adversely determined,
will have a material adverse effect on any ability to vote or dispose of any of
the Shares.  No other Person has a beneficial interest in or a right
to acquire all or any portion of the Shares.  The Shares set forth on
the signature page hereto constitute Stockholder’s entire direct and indirect
interest in the outstanding capital stock of
Parent.    Stockholder’s principal residence or place of
business is set forth on Stockholder’s signature page hereto.

     

    4.2         Authorization.  Stockholder
has all requisite capacity, power and authority to execute and deliver this
Agreement and to perform its obligations hereunder.  Stockholder has
duly executed and delivered this Agreement and this Agreement constitutes the
legal, valid and binding agreements of Stockholder, enforceable against
Stockholder in accordance with its terms, subject to: (a) laws of general
application relating to bankruptcy, insolvency and the relief of debtors; and
(b) rules of law governing specific performance, injunctive relief and other
equitable remedies.

     

    4.3         No
Violation.  None of the execution, delivery and performance of
this Agreement by Stockholder will (a) require Stockholder to file or
register with, or obtain any material permit, authorization, consent or approval
of, any governmental agency, authority, administrative or regulatory body, court
or other tribunal, foreign or domestic, or any other entity; (b) violate,
or cause a breach of or default (or an event which with notice or the lapse of
time or both would become a default) under, any contract, agreement or
understanding, any statute or law, or any judgment, decree, order, regulation or
rule of any governmental agency, authority, administrative or regulatory body,
court or other tribunal, foreign or domestic, or any other entity or any
arbitration award binding upon Stockholder; or (c) cause the acceleration
of any obligation under or give to others any right of termination, amendment,
acceleration or cancellation of, or result in the creation of a lien or other
encumbrances on any property or asset of Stockholder pursuant to any provision
of any indenture, mortgage, lien, lease, agreement, contract, instrument, order,
judgment, ordinance, regulation or decree to which Stockholder is subject or by
which Stockholder or any of the Shares are bound.

    
      
         

      

      
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    4.4         Acknowledgement.  Stockholder
acknowledges and agrees that neither Company nor Company’s successors, assigns,
subsidiaries, divisions, employees, officers, directors, Stockholder, agents and
Affiliates shall owe any duty, whether in law or otherwise, or incur any
liability of any kind whatsoever, including without limitation with respect to
any and all claims, losses, demands, causes of action, costs, expenses
(including reasonable attorney’s fees) and compensation of any kind or nature
whatsoever, to Stockholder in connection with or as a result of any voting (or
failure to vote) by Company of the Shares at any annual, special or other
meeting or action or the execution of any consent of the Stockholder of
Parent.  The parties acknowledge that, pursuant to the authority
hereby granted, Company may vote the Shares in furtherance of its own interests,
and Company is not acting as a fiduciary for Stockholder.

     

    4.5         Compliance.  Stockholder
will comply with the Securities Act of 1933 and the rules and regulations
thereunder, as now in effect and as from time to time amended, including those
hereafter enacted or promulgated, in connection with any Transfer of all or any
portion of the Shares.

     

    4.6         Consent and
Waiver.  Stockholder hereby gives any consents or waivers that
are reasonably required for the consummation of the Merger(including the Share
Issuance) under the terms of any agreement to which Stockholder is a party or
pursuant to any rights Stockholder may have.

     

    4.7         Reliance by
Company.  Stockholder acknowledges that Company is entering
into the Merger Agreement in reliance upon the execution and delivery of this
Agreement by Stockholder.

     

    ARTICLE
V

    TERMINATION

     

    5.1         Termination.  Unless
earlier terminated by the written consent of Company (in its sole and absolute
discretion), this Agreement shall terminate on the expiration of the Voting
Period.  Upon the termination of this Agreement, neither Parent,
Company nor Stockholder shall have any rights or obligations hereunder and this
Agreement shall become null and void and have no effect; provided, that
termination of this Agreement shall not prevent any party from seeking any
remedies (at law or in equity) against any other party for that party’s breach
of any of the terms of this Agreement.

     

    5.2         Survival.  Notwithstanding
anything to the contrary contained in this Agreement, Article VI of this
Agreement shall survive the termination of this Agreement.

     

    ARTICLE
VI

    MISCELLANEOUS

     

    6.1         Publication.  Stockholder
hereby permits Parent, Merger Subs and/or Company to publish and disclose in
press releases, Schedule 13D filings and the Form S-4 Registration
Statement or Proxy Statement (including all documents and schedules filed with
the SEC) and any other disclosures or filings required by applicable law its
identity and ownership of shares of Parent Common Stock, the nature of its
commitments, arrangements and understandings pursuant to this Agreement and/or
the text of this Agreement.

    
      
         

      

      
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    6.2         Specific Performance;
Injunctive Relief.  The parties hereto acknowledge that Company
would be irreparably harmed and that there will be no adequate remedy at law for
a violation of any of the covenants or agreements of Stockholder set forth
herein.  Therefore, it is agreed that, in addition to any other
remedies that may be available to Company upon any such violation, Company shall
have the right to enforce such covenants and agreements by specific performance,
injunctive relief or by any other means available to Company at law or in equity
and Stockholder and Parent hereby waive any and all defenses which could exist
in their favor in connection with such enforcement and waive any requirement for
the security or posting of any bond in connection with such
enforcement.

     

    6.3         Amendments and
Waivers.  No amendment, modification, or waiver in respect of
this Agreement shall be effective against any party unless it shall be in
writing signed by Parent, Company and Stockholder.  The waiver by any
party of a breach of any provision hereunder shall not operate or be construed
as a waiver of any prior or subsequent breach of the same or any other provision
hereunder.

     

    6.4         Successors and
Assigns.  The provisions of this Agreement shall be binding
upon the successors in interest, heirs and assigns to any of the
Shares.  Nothing in this Agreement, express or implied, is intended to
confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under
or by reason of this Agreement, except as expressly provided in this
Agreement.

     

    6.5         Governing Law; Consent to
Jurisdiction; Venue.

     

    (a)          This
Agreement is to be construed in accordance with and governed by the internal
laws of the State of Delaware without giving effect to any choice of law rule
that would cause the application of the laws of any jurisdiction other than the
internal laws of the State of Delaware to the rights and duties of the
parties.

     

    (b)          All
disputes and controversies arising out of or in connection with this Agreement
shall be resolved exclusively by Delaware Court of Chancery and any state
appellate court therefrom within the State of Delaware, and each party hereto
irrevocably and unconditionally consents to and submits to the exclusive
jurisdiction of said courts and agrees that venue shall lie exclusively with
such courts.

     

    6.6         WAIVER OF JURY
TRIAL.  EACH OF PARENT, STOCKHOLDER AND COMPANY HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT,
TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREBY.

     

    6.7         Mutual Drafting. Each party has
participated in the drafting of this Agreement, which each party acknowledges is
the result of extensive negotiations between the parties.  This
Agreement shall not be deemed to have been prepared or drafted by any one party
or another or any party’s attorneys.

     

    6.8         Titles and
Subtitles.  The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

    
      
         

      

      
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    6.9         Notices.  All
notices shall be delivered in accordance with Section 8.2 of the Merger
Agreement. Notices to Stockholder shall be delivered to the address set forth on
the signature page hereto unless otherwise designated in writing by
Stockholder.

     

    6.10       Fees and
Expenses. Except as otherwise
expressly set forth in this Agreement, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be
paid by the party incurring the cost or expense whether or not the Merger is
consummated.  If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to reasonable attorneys’ fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

     

    6.11       Severability.  The
parties hereto agree that each provision of this Agreement shall be interpreted
in such a manner as to be effective and valid under applicable
law.  If any provision of this Agreement shall nevertheless be held to
be prohibited by or invalid under applicable law, (a) such provision shall
be effective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement, and (b) the parties shall, to the extent permissible by
applicable law, amend this Agreement, or enter into a voting trust agreement
under which the Shares shall be transferred to the voting trust created thereby,
so as to make effective and enforceable the intent of this
Agreement.

     

    6.12       Entire
Agreement.  This Agreement and the documents referred to herein
constitute the entire agreement among the parties with respect to the subject
matter hereof, supersede all other prior agreements and understandings, both
written and oral, among, between and by any of the parties with respect to the
subject matter hereof and no party shall be liable or bound to any other party
in any manner by any warranties, representations or covenants except as
specifically set forth herein or therein.

     

    6.13       Counterparts.  This
Agreement may be delivered by telefacsimile and executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

    

    [Signature
Page Follows]

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            PARENT:

                                          	 
      
	 
      	 
      
	 	 	 
	
                                            By:

                                          	 
      	 
      
	
                                            Name:

                                          	 
      
	
                                            Title:

                                          	 
      
	 
      	 
      	 
      
	
                                            COMPANY

                                          	 
      
	 	 
	 
      	 
      	 
      
	
                                            By:

                                          	 
      	 
      
	
                                            Name:

                                          	 
      
	
                                            Title:

                                          	 
      
	 
      	 
      
	
                                            STOCKHOLDER:

                                          	 
      
	 	 
	 	 
	 
      	 
      	 
      
	 	 	 
	
                                            Address:
      ______________________________

                                          	 
      
	
                                            ______________________________________

                                          	 
      
	 
      	 
      	 
      
	
                                            Number
      of Shares: ______________________Unassociated Document

    PURCHASE
AGREEMENT

     

    This
agreement is entered into this the 6th day of
May, 2010, between CHARLIE HEATER, d/b/a H 5 PRODUCERS, a sole proprietorship,
herein Seller and GRYPHON PRODUCTION CO., LLC, herein Buyer, the terms of which
are as follows:

     

    1.           Seller
agrees to sell and Buyer agrees to buy, subject to the contingencies hereinafter
set forth, all of Seller's right, title and ownership interest in and unto each
of the oil, gas and/or casinghead gas leasehold estates as owned by Seller more
fully described in Exhibit "A" attached as located in Hutchinson County, Texas
together with all wells, casing, tubing, tanks (both metal and fiberglass),
rods, pumps, flow lines, water lines, pump jacks, heater treaters and all other
equipment, structures and personal property now located upon said lands as
described in Exhibit "A" attached as used in connection with Seller's oil and
gas operations thereon except only those as may hereinafter be reserved by
Seller.

     

    2.           The
sale by Seller of the oil and gas leasehold estates as set out in Exhibit "A"
attached shall also include all oil, gas and casinghead gas and associated
hydrocarbons attributable to said lands, or any lands pooled therewith,
effective as of date of closing.

     

    3.           Purchase
price to be paid buy Buyer to Seller at closing is $150,000.00 of which Buyer
agrees to deposit with Robert L. Finney Trust Account, as escrow agent, the full
purchase price sum on or before the expiration of seven (7) days from the date
of the signing of this agreement by the Buyer by wire transfer into account No.
400-73354-7 at
FirstBank Southwest, Pampa, Texas (routing No. 111308057).

     

    4.           Seller
warrants that all ad valorem property taxes due on said Exhibit "A" properties
have been paid to and including the year 2009 without exception and that 2010 ad
valorem property taxes on each lease shall be prorated to date of
closing.

     

    5.           Seller
covenants and agrees on date of closing that each of the Exhibit "A" properties
shall be free and clear of all mortgages, liens, mechanic's liens, debts or
other encumbrances applicable to the oil, gas and casinghead gas leasehold
estates and equipment located thereon as owned by Seller. Seller shall provide
Buyer at closing an Affidavit of no unrecorded liens or encumbrances as created
by Seller covering the Exhibit "A" properties.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    6.            Buyer's
purchase of the leasehold estates described in Exhibit "A" attached is
specifically CONTINGENT UPON each of the following matters:

     

    a.            Approval
of said purchase and purchase price by CHANCELLOR GROUP, INC., a Nevada
Corporation, being the owner of Buyer herein on or before May 4,
2010.

     

    b.            Completion
by Buyer, within 21 days from the execution of this agreement, of its due
diligence necessary to satisfy itself as to Buyer's clear title to the working
interest in each of the Exhibit "A" properties as being free and clear of all
liens, mortgages, environmental defects and/or other encumbrances, provided
counsel for Buyer receives Seller's complete lease file records on or before May
4, 2010 at 4:00 p.m.

     

    C.              Buyer's
due diligence to verify the Seller's compliance with all rules and regulations
promulgated by the State of Texas and the Texas Railroad Commission or any other
entity having regulatory authority over the Exhibit "A" properties.

     

    d.              Net
revenue working interest to be acquired by Buyer shall be at least the
percentage hereinafter shown on each respective lease, or more:

     

    
      	(1) T D LEWIS "A"
      LEASE:	81.25% of
      8/8
	 	 
	(2) MOORE
      LEASE:	81.25% of
      8/8
	 	 
	(3) TIMMS
      LEASE:	81.25% of
      8/8

    

     

    7.            Closing
of this sale shall occur on or before the 24th day
of May, 2010 in the office of Robert L. Finney, P. C., 309 West Foster, Pampa,
Texas 79065
or such other time or place as the parties may be able to mutually agree.
At closing Seller shall prepare, execute and deliver to Buyer an Assignment of
Interest and Bill of Sale on the form set out in Exhibit "B" attached, but with
all personal property and equipment to be conveyed "AS IS", "WHERE IS" with no
warranties expressed, implied or otherwise.

     

    
      
         

      

      
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    8.            At
closing, Seller shall execute all necessary documents and change of operator
forms as may be required or necessary to appoint Buyer, and/or its designated
agent, as sole operator of each of the leases in Exhibit "A"
attached.

     

    9.           On
or before May 4, 2010 at 4:00 p.m., Seller shall provide to Buyer, for
examination purposes Seller's complete lease file and all information in
Seller's possession as to name and address of first purchasers of oil, gas
and/or casinghead gas. In the event Seller is receiving or is entitled to
receive 100% of production for distribution purposes, Seller shall also furnish
to Buyer, at closing, a listing of all royalty, overriding royalty and other
third party payees that Sellers have in their possession on each lease entitled
to proceeds from production other than due Seller and the percentage of proceeds
ownership due each.

     

    10.           If
any of the contingencies set out in paragraph 6 above should occur, this
agreement, at the sole option of Buyer, shall be null and void and escrow agent
shall be authorized to return to Buyer the escrow deposit required of Buyer by
this agreement.

     

    11.           Buyer
agrees to pay Seller, for the use and benefit of JMR GAS, LLC., Pampa, Texas at
the posted price in the Texas Panhandle on date of sale, for 97.44 total barrels
of crude petroleum (representing seven feet (7') of tank oil), less production
taxes, in addition to the $150,000.00 purchase price required to be paid to
Seller under paragraph 3 of this agreement. Such payment shall be timely paid to
Seller from proceeds received by the Buyer from its sale of the first load of
oil from any of the properties described in Exhibit "A" attached. Upon receipt
of such payment Seller agrees to indemnify and hold harmless Buyer and all of
Buyer's properties from any and all claims for such proceeds due to JMR GAS,
LLC., by Seller herein and shall timely furnish to Buyer a receipt and
recordable release from JMR GAS, LLC. for such payment.

     

    DATED
this the 6th day
of May, 2010, but effective as of 7:00 a.m. on May 1, 2010.

    
    

     

    
      	 	      
              SELLER:

               

              CHARLIE HEATER, d/b/a H S
      PRODUCERS, a sole proprietorship 

              P. 0. Box 375

              Stinnett, TX, 79083-0395

               

              MISTY
      HEATER

              BUYER:

               

              GRYPHON
      PRODUCTION CO., LLC

               

              By:

              MAXWELL
      GRANT, Manager

              P.
      0. Box 742

              Pampa,
      Texas 79066-0742

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    EXHIBIT "A"

     

     T.
D. LEWIS "A" LEASE:

     

    The
Northwest Quarter of the Northeast Quarter (NW/4 of NE/4) of Section Six (6), in
Block Twenty-Three (23), BS&F Railway Co., Survey, Hutchinson County,
Texas.

     

    MOORE
LEASE:

     

    The
Northwest Eighty (NW/80) acres of Section Twenty-One (21), Block M-2 1, TC
Railway Co., Survey, Hutchinson County, Texas.

     

    TIMMS
LEASE:

     

    The West
Half of the Northeast Quarter (W/2 of NE/4) of Section Five (5), Block 231 BS&F
Railway Co., Survey, Hutchinson County, Texas.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    EXHIBIT "B"

     

    NOTICE
OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE
ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR
RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S
LICENSE NUMBER.

    

    ASSIGNMENT
OF OIL AND GAS LEASES

    
    

     

    
      	      
              ASSIGNOR:

            	      
              CHARLIE
      HEATER, d/b/a H 5 PRODUCERS,

            	 
	 	      
              a
      sole proprietorship

            	 
	 	 	 
	 	 	 
	 	 	 
	      
              ASSIGNEE:
      

            	GRYPON PRODUCTION
      CO., LLC	 
	 	P. O. Box
    742	 
	 	Pampa, Texas
      79066-0742	 

    

     

    For and in consideration of Ten Dollars
($10.00) and other good and valuable consideration, paid to Assignor by
Assignee, the receipt and sufficiency of which is hereby acknowledged, Assignor
does hereby BARGAIN, GRANT,
SELL, CONVEY, TRANSFER, ASSIGN, SET OVER and DELIVER unto the said Assignee
all of Assignor's right, title and interest in and to the following described
properties situated in Hutchinson County, Texas:

    

    A.  The
oil and gas leases affecting lands in Hutchinson County, Texas, described on
Exhibit "A" attached hereto and made a part hereof, and the leasehold estates
evidenced thereby;

    

    B.  All
wells, casing, tubing, derricks, tanks, tank batteries, separators, rods, pumps,
flow lines, water lines, gas lines, equipment, structures and other personal
property and fixtures located upon the lands described on Exhibit "A" or used in
connection with oil and gas operations thereon, except as hereinafter excepted
and reserved to Assignor;

    

    C.  All
of the interest of Assignor in all permits, licenses, franchises, easements,
servitudes and rights-of-way of every character which are useful or appropriate
in exploring for, developing, operating, producing, gathering, treating, storing
or transporting oil, gas and other minerals on or off the lands described on
Exhibit "A";

    

    D.  All
of the interest of Assignor in, to and under all hydrocarbon sales agreements,
and other instruments, contracts and agreements of every character, except as
hereinafter excepted and reserved, insofar as they cover or affect the
properties described on Exhibit "A" or the production and marketing of oil, gas
and other hydrocarbons from the lands described on Exhibit "A"; and

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    E.  All
of the interest of Assignor in and to all of the abstracts of title, records,
well logs, and all other instruments and files pertaining to the above described
oil and gas leases.

    all of
the foregoing being hereinafter sometimes called the "Conveyed
Properties".

     

    TO HAVE AND TO HOLD the
Conveyed Properties, together with all and singular all rights, privileges,
hereditaments and appurtenances thereto in anywise belonging unto said Assignee,
its successors and assigns forever, subject, however, to the terms, provisions,
conditions, exceptions, reservations, covenants and agreements herein set
forth:

     

    1.  This Assignment is
subject to all terms and conditions of the Leases covering said land (express
and implied) which terms and conditions Assignee accepts and agrees to perform
insofar as they relate to that portion of the Leases assigned
hereby.

     

    2.  This Assignment is
subject to all terms and conditions of all prior Assignments which appear of
record in the office of the County Clerk of Hutchinson County, Texas, affecting
the lands above described.

     

    3.  This Assignment is made
subject to all outstanding Overriding Royalty Interests of record in the office
of the County Clerk of Hutchinson County, Texas, affecting the lands above
described.

     

    4.  Assignor agrees to timely
execute and deliver to Assignee, upon request, all necessary transfer orders,
and all such other and additional instruments as may be necessary to correctly
or to more fully describe and identify the properties and interests herein
intended to be conveyed.

     

    5.  Assignee has inspected
the Conveyed Properties for the purpose of detecting the presence or
concentration of naturally occurring radium, thorium and other such materials
("NORM") and satisfied itself as to their physical and environmental condition,
both surface and subsurface, and Assignee accepts all of the same in their "AS
IS, WHERE IS" condition.  Assignor disclaims any liability to Assignee
arising with the presence of NORM on the Conveyed Properties.

     

    6.  Assignor covenants and
represents to Assignee herein that all ad valorem taxes for the year 2009 and
prior years have been paid.  In connection with the ad valorem taxes
to become due on the Conveyed Properties for the year 2010, such taxes are to be
prorated between the Assignor and Assignee in the manner so that the Assignor
shall timely pay 5/12th thereof and the Assignee shall timely pay 7/12th
thereof.

     

    7.  The assignments and
conveyances made by this Assignment are made without warranty of title, express,
implied or statutory, and without recourse, even as to the return of the
purchase price or other consideration, but with full substitution and
subrogation of Assignee, and all persons claiming by, through or under Assignee,
to the extent assignable, in and to all covenants and warranties by Assignor's
predecessors in title and with full subrogation of all rights accruing under the
statutes of limitation or prescription under the laws of the State of Texas and
all rights or actions of warranty against all former owners of the Conveyed
Properties.  Any covenant or warranties implied by statute or law by
the use of the words "grant", "assign" or "convey" or other similar words in
this Assignment are hereby expressly disclaimed, waived and
negated.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    8.  Assignor and Assignee
agree that, to the extent required by applicable law to be operative, the
disclaimers of certain warranties contained herein are "conspicuous" disclaimers
for the purposes of any applicable law, rule or order.  The Conveyed
Properties are assigned to Assignee without recourse (even as to the return of
the purchase price or other consideration), covenant or warranty of any kind,
express, implied or statutory.  WITHOUT LIMITATION OF THE GENERALITY
OF THE FOREGOING, ASSIGNOR HEREBY EXPRESSLY DISCLAIMS AND NEGATES ANY
REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT COMMON LAW, BY STATUTE, OR
OTHERWISE RELATING TO THE CONDITION OF THE CONVEYED PROPERTIES (INCLUDING
WITHOUT LIMITATION, ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, OR
FITNESS FOR A PARTICULAR PURPOSE, OR OF CONFORMITY TO MODELS OR SAMPLES OF
MATERIALS).

     

    9.  All the terms,
provisions, covenants and agreements herein contained shall extend to and be
binding upon the parties hereto and their respective successors and
assigns.  All references herein to the Assignor and Assignee shall
include their respective successors and assigns.

     

    10.  This Assignment has been
executed in a number of identical counterparts, each of which, for all purposes,
shall be deemed to be an original.

     

    11.  The effective date of
this Assignment shall be May 1, 2010, at 7:00 A.M. (CST).

     

    EXECUTED by Assignor and
Assignee on the dates of our respective acknowledgments.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    ASSIGNOR:

    

    __________________________________________

    CHARLIE HEATER, d/b/aH5
PRODUCERS

    

    AGREED
TO AND ACCEPTED BY:

    ASSIGNEE:

    

    GRYPON PRODUCTION CO.,
LLC

    

    

    By:           __________________________________________

    MAXWELL GRANT,
Manager

    
    

     

    
      	THE STATE OF
      TEXAS  	§	 
	 	§	 
	COUNTY OF
      _____________	§	 

    

    

    This instrument was acknowledged before
me on the ____ day of ____________, 2010, by CHARLIE HEATER, d/b/a H 5
PRODUCERS.

    

    

    __________________________________________

    Notary Public, State of
Texas

    

    
      	THE STATE OF
      TEXAS  	§	 
	 	§	 
	COUNTY OF
      HUTCHINSON 	§	 

    

     

    This instrument was acknowledged before
me on the ____ day of ___________, 2010, by MAXWELL GRANT, Manager
of GRYPON PRODUCTION
CO., LLC, a limited liability company, on behalf of said
company.

    

    

    __________________________________________

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