ASSIGNMENT SETTLEMENT AGREEMENT
THIS
ASSIGNMENT SETTLEMENT AGREEMENT dated for reference the 16th day of
June, 2010.
BETWEEN:
LEXARIA CORP., a corporation
duly incorporated under the laws of the Province of British Columbia and having
its registered and records office at Suite 950 – 1130 Xxxx Xxxxxx Xxxxxx,
Xxxxxxxxx, XX, X0X 0X0 Ph 000-000-0000 FAX
000-000-0000
(the
“Assignor”)
OF THE
FIRST PART
AND:
AMERICAN EAGLE ENERGY INC. of
00 Xxxxx 00xx Xxxxxx,
Xxxxx 00-X, Xxxxxxxx XX 00000 Ph 310 706 4009
(the
“Assignee”)
OF
THE SECOND PART
WHEREAS:
A. The
Assignor and the Assignee entered into an Assignment Agreement on or about
August 28, 2009 wherein the Assignee agreed to pay 15.4033% of certain costs in
order to earn an 11.55248% revenue interest in an oil well known as Belmont Lake
PP F-12-4 to be drilled in Mississippi; and
B. The
Belmont Lake PP F-12-4 oil well (the “Oil Well”) has not yet been drilled due to
localized flooding conditions; and
C. Certain
expenses have been incurred as an attempt to drill the well was initially made;
and
D. The
Assignor and the Assignee wish to terminate the Assignment Agreement as detailed
in this Assignment Settlement Agreement.
NOW
THEREFORE WITNESSETH that in consideration of the premises and of the covenants
and agreements set out herein, the parties hereto covenant and agree as
follows:
1. ACKNOWLEDGMENT
OF RELATIONSHIP
1.1 The
parties mutually acknowledge that the Assignor has received US$150,000 from the
Assignee as payment for the revenue interest in the contemplated drilling of the
Oil Well; that the Assignee agreed within the Assignment Agreement to pay
15.4033% of the costs of drilling the Oil Well; and that a total of $38,540.71
in expenses have been validly incurred by the Operator as it attempted to drill
the Oil Well in 2009.
2. TERMINATION
OF ASSIGNMENT AGREEMENT
2.1 The
Assignor and the Assignee mutually agree to terminate the Assignment Agreement
by the Assignor refunding the $150,000 less the Assignee’s share of incurred
expenses, that amount being 15.4033% of $38,540.71, or $5,936.54; thus an amount
of $144,063.46 shall be refunded; and
2.2 The
Assignee and its directors, officers, employees, agents, affiliates and
representatives agree to now and forever release, indemnify and hold harmless
the Assignor and its directors, officers, employees, agents, affiliates and
representatives against any present or future claims including but not limited
to claims of cash flows; ownership interest; future rights; or any other claim
of any kind related to the Oil Well or to the Assignment Agreement.
2.3 The
Assignor and its directors, officers, employees, agents, affiliates and
representatives agree to now and forever release, indemnify and hold harmless
the Assignee and its directors, officers, employees, agents,
affiliates and representatives against any present or future claims including
but not limited to claims of economic obligations related to the Oil
Well or to the Assignment Agreement.
3. GENERAL
PROVISIONS
3.1 Time
shall be of the essence of this Agreement.
3.2 The
provisions herein contained constitute the entire agreement between the parties
and supersede all previous understandings, communications, representations and
agreements, whether written or verbal, between the parties with respect to the
subject matter of this Assignment Settlement Agreement.
3.3 This
Assignment Settlement Agreement shall be governed by and construed in accordance
with the laws of the United States.
3.4 All
dollar amounts referred to in this Assignment Settlement Agreement have been
expressed in United States currency, unless otherwise indicated.
3.5 This
Assignment Settlement Agreement shall enure to the benefit of and be binding
upon each of the parties and their respective heirs, executors, administrators,
successors and assigns, as the case may be.
IN
WITNESS WHEREOF the parties hereto have executed these present on the day and
year first above written.
/s/ Xxxxx
Bunka______________
Xxxxx
Xxxxx, President
Lexaria
Corp
/s/ Xxxxxxx
Findley___________
Xxxxxxx
Xxxxxxx, President & CEO
American
Eagle Energy Inc
