SEC Contract Filing

Filing Date: 2023-08-30

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>5
<FILENAME>ea184364ex10-2_hnracq.htm
<DESCRIPTION>FORM OF OPTION AGREEMENT BY AND BETWEEN OPCO AND POGO ROYALTY
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OPTION AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS OPTION AGREEMENT (this
&ldquo;<B><I>Agreement</I></B>&rdquo;) is made as of this [&bull;], 2023 (the &ldquo;<B><I>Effective Date</I></B>&rdquo;), by and between
<B>POGO ROYALTY, LLC</B>, a Texas limited liability company, with offices at 4809 Cole Avenue, Suite 200, Dallas, Texas 75205 (&ldquo;<B><I>Pogo
Royalty</I></B>&rdquo;), <B>HNRA UPSTREAM, LLC </B>a Delaware limited liability company with offices at 3730 Kirby Drive, Suite 1200 Houston,
Texas 77098 (&ldquo;<B><I>HNRA Upstream</I></B>&rdquo;), and, solely with respect to <U>Section 1.2</U>, <B>HNR ACQUISITION CORP</B>,
a Delaware corporation with offices at 3730 Kirby Drive, Suite 1200 Houston, Texas 77098 (&ldquo;<B><I>SPAC</I></B>&rdquo;). Pogo Royalty
and HNRA Upstream may hereafter be referred to each as a &ldquo;<B><I>Party</I></B>&rdquo; and together as &ldquo;<B><I>Parties</I></B>&rdquo;.
Capitalized terms shall have the meanings set forth on <U>Exhibit A</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, Pogo Royalty owns
certain overriding royalty interests in certain oil and gas assets owned by Pogo Resources, LLC (the &ldquo;<B><I>ORR Interest</I></B>&rdquo;)
in oil, gas, and mineral leases covering lands in Eddy County, New Mexico as identified and described in that certain Conveyance of Overriding
Royalty Interest from Pogo Resources, LLC and LH Operating, LLC to Pogo Royalty, LLC dated effective July 1, 2023, which assigned an undivided
royalty interest equal in amount to ten percent (10%) of Pogo Resources, LLC&rsquo;s and LH Operating, LLC&rsquo;s interest all oil, gas
and minerals in, under and produced from each lease described therein;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, SPAC and HNRA Upstream,
SPAC&rsquo;s wholly-owned subsidiary, have entered into that certain Amended and Restated Membership Interest Purchase Agreement (the
&ldquo;<B><I>MIPA</I></B>&rdquo;), dated as of August 28, 2023, pursuant to which HNRA Upstream and its subsidiary Affiliate have agreed
to acquire 100% of the membership interests of Pogo Resources, LLC;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, in connection with the closing of the
transactions contemplated by the MIPA, Pogo Royalty desires to grant to HNRA Upstream, and HNRA Upstream desires to accept from Pogo Royalty,
an option to purchase the ORR Interest pursuant to the terms and conditions of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW THEREFORE, in consideration
of the foregoing and the mutual covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, Pogo Royalty
and HNRA Upstream, intending to be legally bound, hereby agree as follows:</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: uppercase">Article
I</FONT><BR>
GRANT OF OPTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.1 <B><U>The Option;
Expiration Date</U></B><U>.</U> Pogo Royalty hereby grants HNRA Upstream an irrevocable and exclusive option (the &ldquo;<B><I>Option</I></B>&rdquo;)
to purchase, in one or more series of related transactions, all (but not less than all unless otherwise agreed) of the ORR Interest from
Pogo Royalty for the Option Price (as defined below) at any time prior to the date that is twelve (12) months following the Effective
Date (the &ldquo;<B><I>Expiration Date</I></B>&rdquo;) by giving Pogo Royalty written notice thereof from time to time (a &ldquo;<B><I>Option
Notice</I></B>&rdquo;). Notwithstanding anything to the contrary contained herein, HNRA Upstream shall not have the right to exercise
the Option at any time prior to the date that the Promissory Note (as defined in the MIPA) has been paid in full and satisfied. At no
time prior to the Expiration Date shall Pogo Royalty convey, transfer, sell, or otherwise dispose of all or any portion of the ORR Interest
to an unaffiliated third-party without the prior written consent of HNRA Upstream.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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