XXXXXXXX LEASE OPTION AGREEMENT
State: Kansas
County: Xxxxx
Optionor: Verde Oil Company, a Texas corporation
0000 Xxxxxxxxx, Xxxxx 000
Xxx Xxxxxxx, XX 00000-0000
Optionee: Infinity Inc., a Colorado corporation
000 Xxxx 00xx Xxxxxx
Xxxxxxx, XX 00000
Effective Date: December 1, 1999
Lands: The Southeast Quarter (SE-1/4) of Section 29, excluding
the water supply well and water disposal well and the
equipment associated with these xxxxx, Township 26
South, Range 20 East, Xxxxx County, Kansas
Optionor, named above, owns of the working interest in the Lands
described above. Optionor desires to grant Optionee, named above, an option
to acquire a working interest participation interest ("Participation
Interest") in the Lands.
For valuable consideration, the receipt and sufficiency of which Optionor
acknowledges, Optionor grants Optionee until March 1, 2001 (the "Option
Exercise Date"), the exclusive right and option, but not the obligation, to
earn the Participation Interest in Lands on the terms and conditions as set
forth in the Operating Agreement attached hereto ("Operating Agreement").
Optionor agrees not to enter into any other agreements which would prevent
Optionee from exercising this option on the Lands until after the Option
Exercise Date. Should Optionee elect to exercise its option to acquire the
Participation Interest within the Option Period, Optionee shall notify
Optionor in writing of that election by depositing the notice of election into
any U. S. Post Office receptacle with sufficient postage, addressed to
Optionor, and tender to Optionor, in the form of a check, payable to Optionor,
the amount of $300,000 (the "Option Payment"). The written notice and tender
must take place prior to midnight on the Option Exercise Date for this Option
to be deemed to have been timely exercised.
In the event Optionee does not tender the Option Payment on or before the
Option Exercise Date, this option shall terminate and the Xxxxxxxx Lease
Option Agreement and the Operating Agreement shall be null and void and of no
further force and effect.
Upon execution of this Option, Optionor shall make available to Optionee
all information regarding the Lands including, without limitation, all leases,
title opinions, certificates of title, abstracts of title, title data, seismic
data, geologic data files, contracts, environmental reports or any other
information relating to the Lands
Upon exercise of the Option, Optionor shall have executed and deliver to
Optionee, the Assignment of Oil and Gas Lease attached hereto as Exhibit "B".
This option is personal to the Optionee and Optionor and may not be
assigned. Any purported assignment will be void, will terminate the Optionee's
and Optionor's rights in the option.
Optionor shall file a Memorandum of Option Agreement to protect
Optionee's rights under this Option Agreement.
This Option Agreement is executed by Optionor as of the date of
Optionor's signature, but shall be deemed effective for all purposes as of the
Effective Date stated above.
Optionor:
Verde Oil Company
Date:
December 15, 1999 /s/ Xxxxxxx X. Xxxxxxxxxx
Xxxxxxx X. Xxxxxxxxxx
President
Optionee:
Infinity, Inc.
Date:
December 20, 1999 /s/ Xxxxxxx X. Xxxx
Xxxxxxx X. Xxxx
President
XXXXXX-XXXXXX SR. LEASES OPTON AGREEMENT
State: Kansas
County: Xxxxx
Optionor: Verde Oil Company, a Texas corporation
0000 Xxxxxxxxx, Xxxxx 000
Xxx Xxxxxxx, XX 00000-0000
Optionee: Infinity Inc., a Colorado corporation
000 Xxxx 00xx Xxxxxx
Xxxxxxx, XX 00000
Effective Date: December 1, 1999
Lands: Xxxxxx Lease
The West Half of the Southwest Quarter (W-1/2 SW-1/4) and
Lot Six (6), less ten acres thereof, Xxxxxxx 00,
Xxxxxxxx 00 Xxxxx, Xxxxx 20 East of the Sixth P.M.,
Xxxxx County, Kansas.
Xxxxxx Sr. Lease
The North Half of the Northwest Quarter (N-1/2 NW-1/4)
of Section 32, Township 26, Range 20, Xxxxx County, Kansas
Optionor, named above, owns a working interest in the Lands described
above. Optionor desires to grant Optionee, named above, an option to acquire
a working interest participation interest ("Participation Interest") in the
Lands, described above.
For valuable consideration, the receipt and sufficiency of which Optionor
acknowledges, Optionor grants Optionee until March 1, 2002 (the "Option
Exercise Date"), the exclusive right and option, but not the obligation, to
earn the Participation Interest in Lands on the terms and conditions as set
forth in the Operating Agreement attached hereto ("Operating Agreement").
Optionor agrees not to enter into any other agreements which would prevent
Optionee from exercising this option on the Lands until after the Option
Exercise Date.
This option may be exercised by the Optionee, prior to midnight on the
Option Exercise Date, by mailing, Faxing, telegraphing, or delivering in
person a written notice of exercise of the option to the Optionor.
In the event Optionee does not tender the written notice of exercise of
the Option on or before the Option Exercise Date, or if Optionor is unable to
acquire a working interest in the Lands, this option shall terminate and the
Jordan Lease Option Agreement and the Operating Agreement shall be null and
void and of no further force and effect.
Prior to the Option Exercise Date, Optionor shall make available to
Optionee all information regarding the Lands including, without limitation,
all leases, title opinions, certificates of title, abstracts of title, title
data, seismic data, geologic data files, contracts, environmental reports or
any other information relating to the Lands
Upon exercise of the Option, Optionor shall have executed and deliver to
Optionee, the Assignment of Oil and Gas Leases attached hereto as Exhibit "B".
This option is personal to the Optionee and Optionor and may not be
assigned. Any purported assignment will be void, will terminate the Optionee's
and Optionor's rights in the option.
Optionor shall file a Memorandum of Option Agreement to protect
Optionee's rights under this Option Agreement.
This Option Agreement is executed by Optionor as of the date of
Optionor's signature, but shall be deemed effective for all purposes as of the
Effective Date stated above.
Optionor:
Verde Oil Company
Date:
December 15, 1999 /s/ Xxxxxxx X. Xxxxxxxxxx
Xxxxxxx X. Xxxxxxxxxx
President
Optionee:
Infinity, Inc.
Date:
December 20, 1999 /s/ Xxxxxxx X. Xxxx
Xxxxxxx X. Xxxx
President
JORDAN LEASE OPTION AGREEMENT
State: Kansas
County: Xxxxx
Optionor: Verde Oil Company, a Texas corporation
0000 Xxxxxxxxx, Xxxxx 000
Xxx Xxxxxxx, XX 00000-0000
Optionee: Infinity Inc., a Colorado corporation
000 Xxxx 00xx Xxxxxx
Xxxxxxx, XX 00000
Effective Date: December 1, 1999
Lands: Xxxx 0, X-0/0 of 2, 3, & 4 in the Northeast Quarter
(NE-1/4 ) and Xxxx 0, 0, & 0 xx xxx Xxxxxxxxx Xxxxxxx
(XX-0/0) of Section 00, Xxxxxxxx 00 Xxxxx, Xxxxx 20
East, Xxxxx County, Kansas
Optionor, named above, is attempting to acquire a working interest in the
Lands described above. Optionor desires to grant Optionee, named above, an
option to acquire a working interest participation interest ("Participation
Interest") in the Lands, described above.
For valuable consideration, the receipt and sufficiency of which Optionor
acknowledges, Optionor grants Optionee until March 1, 2002 (the "Option
Exercise Date"), the exclusive right and option, but not the obligation, to
earn the Participation Interest in Lands on the terms and conditions as set
forth in the Operating Agreement attached hereto ("Operating Agreement").
Optionor agrees not to enter into any other agreements which would prevent
Optionee from exercising this option on the Lands until after the Option
Exercise Date.
This option may be exercised by the Optionee, prior to midnight on the
Option Exercise Date, by mailing, Faxing, telegraphing, or delivering in
person a written notice of exercise of the option to the Optionor.
In the event Optionee does not tender the written notice of the exercise
of this option on or before the Option Exercise Date, or if Optionor is unable
to acquire a working interest in the Lands, this option shall terminate and
the Jordan Lease Option Agreement and the Operating Agreement shall be null
and void and of no further force and effect.
Prior to the Option Exercise Date, Optionor shall make available to
Optionee all information regarding the Lands including, without limitation,
all leases, title opinions, certificates of title, abstracts of title, title
data, seismic data, geologic data files, contracts, environmental reports or
any other information relating to the Lands
Upon exercise of the Option, Optionor shall have executed and deliver to
Optionee, an Assignment of Oil and Gas Leases granting all of Optionee's
rights under the Operating Agreement and any leases it has acquired covering
the Lands.
This option is personal to the Optionee and Optionor and may not be
assigned. Any purported assignment will be void, will terminate the Optionee's
and Optionor's rights in the option.
Optionor shall file a Memorandum of Option Agreement to protect
Optionee's rights under this Option Agreement.
This Option Agreement is executed by Optionor as of the date of
Optionor's signature, but shall be deemed effective for all purposes as of the
Effective Date stated above.
Optionor:
Verde Oil Company
Date:
December 15, 1999 /s/ Xxxxxxx X. Xxxxxxxxxx
President
Optionee:
Infinity, Inc.
Date:
December 20, 1999 /s/ Xxxxxxx X. Xxxx
President
