EXHIBIT 10.18
OPTION AGREEMENT BETWEEN XXX XXXX, LLC AND DOLPHIN ENERGY
CORPORATION DATED OCTOBER 10, 2003
OPTION AGREEMENT
THIS OPTION AGREEMENT is made and entered into this day by and between
XXX XXXX, LLC, a Wyoming limited liability company, whose address is in care of
D. Xxxxx Xxxxx, 0000 Xxxxx Xxxxxx, Xxxxxxxx, Xxxxxxx 00000 ("Xxx Xxxx") and
DOLPHIN ENERGY CORPORATION, whose address is c/o Xxxxxxx Xxxxxxx, 503 University
Tower, 0000 Xxxxx Xxxxxxx Xxxxxxxxxx, Xxxxxx, Xxxxx 00000 ("Dolphin").
WITNESSETH, that:
WHEREAS, Xxx Xxxx is the owner of those certain Oil and Gas Leases that
are identified on Exhibit "A", attached hereto; and
WHEREAS, Xxx Xxxx wishes to grant and Dolphin wishes to receive an
option to purchase the Oil and Gas Leases described on Exhibit "A", attached
hereto.
NOW, THEREFORE, in consideration of the premises and of the mutual
promises and covenants contained herein, it is agreed as follows:
1. GRANT OF OPTION. Xxx Xxxx grants to Dolphin the option to purchase
the Oil and Gas Leases described on Exhibit "A", attached hereto;
provided, however, that Dolphin pays to Xxx Xxxx the sum of $5,000 per
month beginning on October 15, 2003, and on November 14, 2003, and on
December 15, 2003, and provided further that if Dolphin makes the
subject payments, Dolphin shall have until and including January 15,
2004 within which to exercise the option to purchase the Oil and Gas
Leases described on Exhibit "A", attached.
2. EXERCISE OF OPTION. Dolphin may exercise the option granted herein
by delivery of a cashier's check to Xxx Xxxx in the sum of $396,000 on
or before January 15, 2004, and only if Dolphin has timely made the
option payments described in Paragraph 1, above.
3. ASSIGNMENT AND OPERATING AGREEMENT. In the event that Dolphin
exercises the option granted herein, Pioneer shall make an assignment
of the Oil and Gas Leases described on Exhibit "A", attached, reserving
a fifteen percent (15%) net profits interest in the form marked Exhibit
"B", attached. The parties shall also enter into an Operating Agreement
in the form marked Exhibit "C", attached.
4. TIME. Time is of the essence of this Agreement between the parties.
In the event that Dolphin does not make any of the option payments
described in Paragraph 1 or pay the purchase price described in
Paragraph 2, above, Dolphin's rights shall expire.
5. COUNTERPART EXECUTION. This Agreement may be executed in counterpart
originals.
DATED this 10th day of October, 2003.
XXX XXXX, LLC
By:
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Managing Member
DOLPHIN ENERGY CORPORATION
By: /S/ XXXX XXXXXX
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Authorized Officer
