AGREEMENT FOR THE PURCHASE OF PARTIAL LEASEHOLDS
This
Agreement for the Purchase of Partial Leaseholds ("Agreement") made and
effective this December 1st, 2010,
by and between Geronimo Holding Corporation ("Seller") and American Standard
Energy, Corp. ("Buyer").
Seller
desires to sell to Buyer, and Buyer desires to purchase from Seller, certain
mineral rights leaseholds held on properties as described in EXHIBIT A: Summarized Well
names below;
|
· Kandiyohi
2-20H
|
· Allie
31X-24
|
|
· Xxxx
Xxxxx 15-22H
|
· Clearwater
010-03H
|
|
· RS-Xxxxx-157-91-2223H-1
|
· Xxxxxxxx
00-00 #0X
|
|
· Xxxxx
00-00X
|
· Xxxxxxx
#1-22H
|
|
· Xxxxx
00-0X
|
· Xxxxxxxx
0000 24-22H
|
|
· Clearwater
100-19H
|
· Xxxxxxx
21-18H
|
|
· Lazy
DE #24-7H
|
· Orf
#1-20H
|
|
· Xxxx
XX #00-0X
|
· Xxxxxx
#00-00XXX
|
|
· Xxxx
11X-23
|
· Clearwater
8-0506
|
|
· Xxxxxxx
11-14H
|
· Clearwater
102-0506H
|
|
· Xxxxxxxx
31X-04
|
· Sidonia
17-1324H
|
|
· Van
Hook 7-23H
|
· Lansing
1-25H
|
|
· Xxxxxxxx
14-11 #1H
|
· Xxxxxxxxxx
15-23H
|
NOW,
THEREFORE, in consideration of the mutual promises herein contained, the parties
hereto agree as follows:
1. Sale.
Seller
agrees to sell, transfer and convey to Buyer, and Buyer agrees to purchase the
aforementioned partial leaseholds/Xxxxx (the "Property"): See EXHIBIT
A.
2. Price.
Buyer
shall pay Seller for the Property the sum of FIVE HUNDRED THOUSAND DOLLARS
($500,000) cash and ONE MILLION TWO HUNDRED THOUSAND (1,200,000) shares of
American Standard Energy Corp. stock (OTCBB: ASEN).
3. Transfer of
Title.
Title to
and ownership of all rights to the Property shall pass from Seller to Buyer upon
close of escrow date within two weeks of the date of this
Agreement.
4. Representations and
Warranties of Seller.
(a) Seller
warrants that the title to the Property shall be of marketable title free of
undisclosed liens, mortgages, leases, or other rights in the
Property.
(b) Authority; Capacity to
Sell. The Seller has all requisite power and authority to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this
Agreement has been duly authorized by all necessary action on the part of the
Seller, and constitutes a legal, valid and binding obligation of the Seller,
enforceable against the Seller in accordance with its terms, except as such
enforceability may be limited by: (i) applicable bankruptcy, insolvency,
reorganization, moratorium or other similar Laws affecting the enforcement of
creditors' rights generally; and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).
(c) No Violation of Law or
Agreement. The execution, delivery and performance by Seller
of this Agreement, and the consummation of the transactions contemplated hereby,
do not and will not: (a) conflict with or result in a violation or breach of, or
default under, any provision of the certificate of incorporation, by-laws or
other organizational documents of Seller; (b) conflict with or result in a
violation or breach of any provision of any Law or governmental order applicable
to Seller; (c) require the consent, notice or other action by any person under,
conflict with, result in a violation or breach of, constitute a default or an
event that, with or without notice or lapse of time or both, would constitute a
default under, result in the acceleration of or create in any party the right to
accelerate, terminate, modify or cancel any contract to which the Seller is a
party or by which the Seller is bound or to which any of their respective
properties and assets are subject or any permit affecting the properties, assets
or business of the Seller; or (d) result in the creation or imposition of any
encumbrance on any properties or assets of the Company. No consent, approval,
permit, governmental order, declaration or filing with, or notice to, any
governmental authority is required by or with respect to the Seller in
connection with the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby. For purposes hereof,
“Law” means any statute, law, ordinance, regulation, rule, code, order,
constitution, treaty, common law, judgment, decree, other requirement or rule of
law of any Governmental Authority.
(d) Consents. All
consents, approvals or authorizations of, or registrations, filings or
declarations with, any governmental authority or any other person, if any,
required in connection with the execution, delivery and performance by the
Sellers of this Agreement or the transactions contemplated hereby have been or
at the closing of this Agreement will have been obtained by the Seller and will
be in full force and effect.
(e) Full
Disclosure. No representation or warranty by Seller in this
Agreement or any certificate or other document furnished or to be furnished to
Buyer pursuant to this Agreement contains any untrue statement of a material
fact, or omits to state a material fact necessary to make the statements
contained therein, in light of the circumstances in which they are made, not
misleading.
(f) Contingencies. Seller
shall provide completed Title Report to Buyer. Sales price shall be
adjusted accordingly should the results of the Title Report indicate anything
contrary to this Agreement.
5. Representations and
Warranties of Buyer.
(a) Authority; Capacity to
Purchase. Buyer is duly organized, validly existing and in
good standing under the Laws of its jurisdiction of organization and has all
requisite power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby. The execution,
delivery and performance of this Agreement has been duly authorized by all
necessary action on the part of the Buyer, and constitutes a legal, valid and
binding obligation of such Buyer, enforceable against the Buyer in accordance
with its terms, except as such enforceability may be limited by:
(i) applicable bankruptcy, insolvency, reorganization, moratorium or other
similar Laws affecting the enforcement of creditors' rights generally; and
(ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at
law).
(b) No Conflicts’
Consents. The execution, delivery and performance by Buyer of
this Agreement and the consummation of the transactions contemplated hereby, do
not and will not: (a) conflict with or result in a violation or breach of, or
default under, any provision of the certificate of incorporation, by-laws or
other organizational documents of Buyer; (b) conflict with or result in a
violation or breach of any provision of any Law or governmental order applicable
to Buyer; or (c) require the consent, notice or other action by any person under
any contract to which Buyer is a party. No consent, approval, permit,
governmental order, declaration or filing with, or notice to, any governmental
authority is required by or with respect to Buyer in connection with the
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby.
6. Limitation of
Liability.
In no
event shall Seller be liable for any special, indirect, incidental or
consequential damages arising out of or connected with this Agreement or the
Property, regardless of whether a claim is based on contract, tort, strict
liability or otherwise, nor shall Buyer's damages exceed the amount of the
purchase price of the Property.
7. Notices.
Any
notice required by this Agreement or given in connection with it, shall be in
writing and shall be given to the appropriate party by personal delivery or by
certified mail, postage prepaid, or recognized overnight delivery
services.
If to
Seller:
Geronimo
Holding Corporation
X.X. Xxx
000
Xxxxxxx,
XX 00000
If to
Buyer:
American
Standard Energy, Corp.
00 Xxxx
Xxx Xxxxxx Xxxxxxx
Xxxxx
000
Xxxxx, XX
00000
8. Governing
Law.
This
Agreement shall be construed and enforced in accordance with the laws of the
state of Nevada.
9. Final
Agreement.
This
Agreement terminates and supersedes all prior understandings or agreements on
the subject matter hereof. This Agreement may be modified only by a
further writing that is duly executed by both parties.
10. Severability.
If any
term of this Agreement is held by a court of competent jurisdiction to be
invalid or unenforceable, then this Agreement, including all of the remaining
terms, will remain in full force and effect as if such invalid or unenforceable
term had never been included.
11. Headings.
Headings
used in this Agreement are provided for convenience only and shall not be used
to construe meaning or intent.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as
of the date first above written.
|
Geronimo
Holding Corporation
|
American
Standard Energy, Corp.
|
||||
|
By:
|
/s/Xxxxxxx Xxxxx
|
By:
|
/s/Xxxxx Xxxxxxxxxx
|
||
| Xxxxxxx Xxxxx |
Xxxxx
Xxxxxxxxxx
|
||||
| President |
Chief
Executive Officer
|
||||
EXHIBIT
A
|
Well Name
|
Status
|
NDIC
File #
|
Location
|
Target Frm.
|
AFE
Amt.
|
Spud
Dt.
|
Comp.
Dt.
|
Last
Mo. Oil
|
Cum.
Oil
|
Oil
IP
|
Last
Mo. Gas
|
Cum
Gas
|
Spacing
|
XOG
WI
|
NRI
|
Net
Acres
|
Operator
|
||||||||||||||||||||||||||||||||
|
1
|
Kandiyohi
2-20H
|
Producing
|
18554 | 20-159-90 |
Xxxxxx
|
$ | 4,890,705.00 |
1/21/2010
|
3422 | 16281 | 640 | 1.71875 | % | 0.78000 | 11.00001 |
XXX
Xxxxxxxxx
|
|||||||||||||||||||||||||||||||||
|
0
|
Xxxx
Xxxxx #00-00X
|
Xxxxxxxxx
|
00000 | 15-156-96 |
Xxxxxx
|
$ | 6,347,000.00 |
4/11/2010
|
4963 | 24610 | 608 | 8231 | 14567 | 1280 | 0.17578 | % | 0.75000 | 2.25003 |
Murex
Petr.
|
||||||||||||||||||||||||||||||
|
3
|
RS-Xxxxx-157-91-2223H-1
|
Producing
|
17497 | 22-157-91 |
Xxxxxx
|
$ | 6,192,879.67 |
9/17/2008
|
11/6/2008
|
1539 | 60108 | 194 | 0 | 30618 | 1280 | 0.66707 | % | 0.81000 | 8.53847 |
Xxxx
Corporation
|
|||||||||||||||||||||||||||||
|
4
|
Xxxxx
17-23H
|
Producing
|
17949 | 23-155-90 |
Xxxxxx
|
$ | 5,197,900.00 |
2/22/2009
|
7/17/2009
|
1001 | 20967 | 80 | 287 | 5425 | 640 | 7.99805 | % | 0.76000 | 51.18750 |
XXX
Xxxxxxxxx
|
|||||||||||||||||||||||||||||
|
0
|
Xxxxx
00-0X
|
Xxxxxxxxx
|
00000 | 7-155-90 |
Xxxxxx
|
$ | 4,802,787.00 |
9/9/2009
|
11/21/2009
|
6458 | 84219 | 676 | 2851 | 32265 | 640 | 2.25457 | % | 0.78000 | 14.42922 |
EOG
Resources
|
|||||||||||||||||||||||||||||
|
6
|
Clearwater
100-19H
|
Producing
|
18329 | 19-157-90 |
Xxxxxx
|
$ | 4,935,075.00 |
11/1/2009
|
1/12/2010
|
2830 | 36626 | 249 | 1197 | 14925 | 640 | 0.23597 | % | 0.82000 | 1.51019 |
XXX
Xxxxxxxxx
|
|||||||||||||||||||||||||||||
|
0
|
Xxxx
XX #00-0X
|
Xxxxxxxxx
|
00000 | 7-146-93 |
Xxxxxx
|
$ | 5,756,180.00 |
5/23/2009
|
7/31/2009
|
3636 | 47316 | 499 |
2075
|
22005 | 1280 | 4.19761 | % | 0.77000 | 53.72941 |
Marathon
|
|||||||||||||||||||||||||||||
|
8
|
Xxxx
XX #00-0X
|
Xxxxxxxxx
|
00000 | 7-146-93 |
Xxxxxx
|
$ | 5,204,480.00 |
2/18/2010
|
6/9/2010
|
1356 | 11348 | 267 | 210 | 3154 | 1280 | 4.19759 | % | 0.77000 | 53.72910 |
Marathon
|
|||||||||||||||||||||||||||||
|
9
|
Xxxx
11X-23
|
Producing
|
18510 | 23-154-95 |
Xxxxxx
|
$ | 5,856,000.00 |
1/30/2010
|
4/19/2010
|
10020 | 71324 | 1462 | 62 | 204 | 1280 | 1.32540 | % | 0.78000 | 16.96513 |
XTO
Energy Inc.
|
|||||||||||||||||||||||||||||
|
10
|
Xxxxxxx
11-14H
|
Producing
|
18528 | 11-156-90 |
Xxxxxx
|
$ | 6,032,000.00 |
3/20/2010
|
5/31/2010
|
10491 | 55313 | 1274 | 4750 | 20650 | 1280 | 0.02930 | % | 0.79000 | 0.37500 |
Xxxx
Oil Company
|
|||||||||||||||||||||||||||||
|
11
|
Xxxxxxxx
31X-04
|
Producing
|
18667 | 4-155-96 |
Three
Forks
|
$ | 5,404,000.00 |
3/12/2010
|
5/14/2010
|
4168 | 29205 | 642 | 7849 | 45143 | 1280 | 1.56210 | % | 0.75000 | 19.99493 |
XTO
Energy Inc.
|
|||||||||||||||||||||||||||||
|
12
|
Van
Hook 7-23H
|
Producing
|
18504 | 23-152-91 |
Xxxxxx
|
$ | 4,242,360.00 |
3/10/2010
|
22109 | 129475 | 11867 | 48679 | 640 | 1.07344 | % | 0.74000 | 6.87000 |
EOG
Resources
|
|||||||||||||||||||||||||||||||
|
13
|
Allie
31X-24
|
Producing
|
18494 | 24-155-95 |
Xxxxxx
|
$ | 5,518,000.00 |
3/21/2010
|
5/21/2010
|
4314 | 27094 | 5824 | 23419 | 1280 | 1.35228 | % | 0.75000 | 17.30916 |
XTO
Energy Inc.
|
||||||||||||||||||||||||||||||
|
14
|
Clearwater
010-03H
|
Producing
|
17786 | 3-157-90 |
4/19/2010
|
10047 | 27845 | 640 | 1.04056 | % | 0.78000 | 6.65959 |
EOG
Resources
|
||||||||||||||||||||||||||||||||||||
|
15
|
Xxxxxxxx
20-17 #1H
|
Drilling
|
19513 | 20-155-92 |
Xxxxxx
|
$ | 7,732,500.00 |
9/20/2010
|
1280 | 0.44271 | % | 0.78000 | 5.66670 |
Xxxxxxx
Oil and Gas
|
|||||||||||||||||||||||||||||||||||
|
16
|
Xxxxxxx
#1-22H
|
Completing
|
18904 | 22-160-96 |
Xxxxxx
|
$ | 5,225,760.00 |
9/24/2010
|
1280 | 0.25391 | % | 0.78000 | 3.25000 |
Continental
Resources
|
|||||||||||||||||||||||||||||||||||
|
17
|
Kjorstad
5300 24-22H
|
Completing
|
19030 | 22-153-100 |
Xxxxxx
|
$ | 7,148,450.00 |
7/24/2010
|
1280 | 0.41250 | % | 0.78000 | 5.28000 |
Oasis
Petroleum
|
|||||||||||||||||||||||||||||||||||
|
18
|
Xxxxxxx
21-18H
|
Completing
|
19088 | 18-141-95 |
Xxxxxx
|
$ | 7,139,145.00 |
7/9/2010
|
1280 | 0.78106 | % | 0.78000 | 9.99750 |
Anschutz
Exploration Corp.
|
|||||||||||||||||||||||||||||||||||
|
19
|
Orf
#1-20H
|
Completing
|
19161 | 17-146-98 |
Xxxxxx
|
$ | 5,678,000.00 |
8/1/2010
|
1280 | 0.58594 | % | 0.78000 | 7.50000 |
Continental
Resources
|
|||||||||||||||||||||||||||||||||||
|
20
|
Xxxxxx
#11-27TFH
|
Completing
|
19084 | 27-145-104 |
Three
Forks
|
$ | 7,425,500.00 |
8/20/2010
|
1280 | 1.56250 | % | 0.78000 | 20.00000 |
Xxxxxxx
Petroleum
|
|||||||||||||||||||||||||||||||||||
|
21
|
Clearwater
8-0506
|
Completing
|
18539 | 5-157-90 |
Xxxxxx
|
$ | 7,302,000.00 |
9/16/2010
|
1280 | 0.52421 | % | 0.78000 | 6.70984 |
EOG
Resources
|
|||||||||||||||||||||||||||||||||||
|
22
|
Clearwater
102-0506H
|
Producing
|
19336 | 5-157-90 |
Three
Forks
|
$ | 7,302,000.00 |
8/23/2010
|
3138
(11 days)
|
1280 | 0.52421 | % | 0.78000 | 6.70984 |
EOG
Resources
|
||||||||||||||||||||||||||||||||||
|
23
|
Sidonia
17-1324H
|
Completing
|
18479 | 24-158-90 |
Xxxxxx
|
$ | 6,799,400.00 |
8/15/2010
|
1280 | 1.87500 | % | 0.78000 | 24.00000 |
EOG
Resources
|
|||||||||||||||||||||||||||||||||||
|
24
|
Lansing
1-25H
|
Completing
|
19126 | 25-152-99 |
Xxxxxx
|
$ | 5,917,000.00 |
6/16/2010
|
1280 | 0.46094 | % | 0.78000 | 5.90000 |
Continental
Resources
|
|||||||||||||||||||||||||||||||||||
|
25
|
Xxxxxxxxxx
15-23H
|
Completing
|
19318 | 23-157-98 |
Xxxxxx
|
$ | 8,432,152.00 |
8/20/2010
|
1280 | 0.31250 | % | 0.78000 | 4.00000 |
American
Oil and Gas
|
|||||||||||||||||||||||||||||||||||
|
26
|
Xxxxxxxx
14-11 #1H
|
Completing
|
19406 | 14-154-100 |
Xxxxxx
|
$ | 7,800,000.00 |
9/17/2010
|
1280 | 0.29605 | % | 0.78000 | 3.78948 |
Xxxxxxx
Oil and Gas
|
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| 367.35110 | |||||||||||||||||||||||||||||||||||||||||||||||||
