Recording Requested By And When Recorded Return To: O & G Energy Partners, LLC
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Exhibit 10.24 |
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Recording Requested By And |
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When Recorded Return To: |
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O & G Energy Partners, LLC |
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0000 Xxxxxxxxxx Xxxx, Xxxxx X-000 |
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Xxxxxx, XX 00000 |
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DOCUMENTARY TRANSFER TAX $______ |
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Computed on full value of property conveyed |
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or computed on full value less liens and |
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encumbrances remaining at time of sale |
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By |
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SPACE ABOVE THIS LINE FOR RECORDER USE |
PARTIAL RELEASE OF PRODUCTION PAYMENT
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STATE OF CALIFORNIA |
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KNOW ALL MEN BY THESE PRESENTS: |
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COUNTY OF XXXX |
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This Partial Release of Production Payment makes reference to that certain Exchange Option Agreement dated May 1, 2009, between O & G Energy Partners, LLC (“O & G”), and San Xxxxxxx Investments, Inc. (“San Xxxxxxx”), as buyers, and Daybreak Oil and Gas, Inc. (“Daybreak”), as Seller, concerning the acquisition of certain interest of Seller by Buyers in the East Slopes Project, San Xxxxxxx Basin, Xxxx County, California (the “Exchange Option”).
Pursuant to the terms of the Exchange Option, O & G and San Xxxxxxx executed and delivered to Daybreak that certain Assignment of Production Payment, in which each became obligated to pay Daybreak a portion of the net profits attributable to the oil and gas interests assigned to O & G and San Xxxxxxx pursuant to the Exchange Option until the total sum of $700,000 had been paid; and
WHEREAS, under the Assignment of Production Payment, (the “Assignment”), O & G Energy Partners, LLC was severely and not jointly liable for 50% of the production payment amount payable pursuant thereto; and
WHEREAS, O & G, has assigned a portion of its interest in the oil and gas properties which were the subject of the Exchange Option West Coast Partners, LLC (“West Coast”), which has become obligated for a portion of the net profits payable by O & G to Daybreak under the Assignment; and
WHEREAS, O & G, West Coast and Daybreak have reached an agreement by which the production payment obligation of O & G (and, consequently, West Coast) to Daybreak will be discharged in cash;
NOW, THEREFOR, for a valuable consideration, the receipt and sufficiency of which are hereby acknowledged, DAYBREAK OIL AND GAS, INC., does hereby RELEASE, REMISE and SURRENDER unto O & G ENERGY PARTNERS, LLC and WEST COAST PARTNERS, LLC, whose address is 0000 Xxxxxxxxxx Xxxx, Xxxxx X-000, Xxxxxx, Xxxxx 00000, their successors and
assigns all obligations originally accruing to O & G under the terms of the Assignment, and declare all such obligations satisfied and discharged.
This is a partial release, only, and shall not affect or impair the obligations s or responsibilities of San Xxxxxxx Investments, Inc., under the terms of the Assignment.
IN WITNESS WHEREOF, this Partial Release of Production Payment is EXECUTED this 25th day of September, 2009.
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BUYER: |
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DAYBREAK OIL AND GAS, INC. |
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By: |
/s/XXXXX X. XXXXXXXXXXXX |
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Xxxxx X. Xxxxxxxxxxxx, President |
STATE OF TEXAS
COUNTY OF GALVESTON
On this 25th day of September 2009, before me, Xxxxxxx X Xxxxxxx, a notary Public, personally appeared Xxxxx Xxxxxxxxxxxx, President of DAYBREAK OIL AND GAS, INC., a Washington corporation, who proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as president on behalf of the corporation therein and acknowledged to me that such corporation executed the same.
WITNESS my hand and official seal.
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/s/Xxxxxxx Xxxxxxx Xxxxxxx |
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Notary Public, State of Texas |
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My Commission expires: 10/ 31/11 |
