Exhibit
10.2
LLC MEMBERSHIP INTERESTS SALE
AGREEMENT
LLC MEMBERSHIP INTERESTS SALE AGREEMENT (this
“ Agreement ”), dated as of March 17, 2011 (the
“ Closing Date ”), between Gordon R. Haworth
(“ Seller ”), American Energy Fields Inc., a
Delaware corporation (“ AEFI ”) and ND Energy
Inc., a Delaware corporation (“ Buyer ”) (Buyer,
AEFI and Seller each a “ Party ” and
collectively the “ Parties ”).
WHEREAS, Seller is the owner of 24.32225% of the
membership interests of the Secure Energy LLC, a North Dakota
limited liability company (the “ Company ”), as
calculated and set forth in Schedule 1; and
WHEREAS, Buyer is a wholly-owned subsidiary of
AEFI; and
WHEREAS, Seller desires to sell to Buyer, and
Buyer desires to purchase from Seller, such membership interests
(the membership interests in the Company to be sold by Seller being
referred to hereinafter as the “ Interests ”),
upon the terms and subject to the conditions set forth
herein;
NOW, THEREFORE, in consideration of the
foregoing premises and the mutual covenants and agreements
contained herein, the parties hereto hereby agree as
follows:
1. Sale and
Purchase of Interests . Seller hereby sells and
transfers to Buyer, and Buyer hereby purchases from Seller, all of
Seller’s right, title and interests in its membership
interests in the Company, being 100% of the Interests, in exchange
for aggregate consideration in the form of 975,000 (Nine Hundred
Seventy Five Thousand) common stock shares (the “
Shares ”) of AEFI.
2. Stock
Certificate . Simultaneously herewith Buyer is
delivering to Seller a Stock Certificate representing the Shares
duly issued by AEFI as set forth above. The Shares shall
be issued in the name of Haworth Family Trust UTD
06/08/1995.
(a) Seller hereby
agrees, that without the prior written consent of AEFI during the
period beginning on December 3, 2010 (the “ Lockup
Date ”) and ending 24 months after such date (the “
Lockup Period ”), Seller will not, directly or
indirectly, (i) offer, sell, offer to sell, contract to sell,
hedge, pledge, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant
to purchase or sell (or announce any offer, sale, offer of sale,
contract of sale, hedge, pledge, sale of any option or contract to
purchase, purchase of any option or contract of sale, grant of any
option, right or warrant to purchase or other sale or disposition),
or otherwise transfer or dispose of (or enter into any transaction
or device that is designed to, or could be expected to, result in
the disposition by any person at any time in the future), any
Shares, beneficially owned, within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended (the “
Exchange Act ”), by Seller on the date hereof or (ii)
enter into any swap or other agreement or any transaction that
transfers, in whole or in part, directly or indirectly, the
economic consequence of ownership of any Shares, whether any such
swap or transaction described in clause (i) or (ii) above is to be
settled by delivery of any Shares (each of the foregoing, a “
Prohibited Sale ”).
(b) Notwithstanding
the foregoing, Seller (and any transferee of Seller) may transfer
any Shares (i) as a bona fide gift or gifts, provided that prior to
such transfer the donee or donees thereof agree in writing to be
bound by the restrictions set forth herein, (ii) to any trust,
partnership, corporation or other entity formed for the direct or
indirect benefit of the undersigned or the immediate family of the
undersigned, provided that prior to such transfer a duly authorized
officer, representative or trustee of such transferee agrees in
writing to be bound by the restrictions set forth herein, and
provided further that any such transfer shall not involve a
disposition for value, (iii) to non-profit organizations qualified
as charitable organizations under Section 501(c)(3) of the Internal
Revenue Code of 1986, as amended, (iv) to its shareholders as a
distribution of corporate assets, special dividend or return of
capital, or (v) if such transfer occurs by operation of law, such
as rules of descent and distribution, statutes governing the
effects of a merger or a qualified domestic order, provided that
prior to such transfer the transferee executes an agreement stating
that the transferee is receiving and holding any Shares subject to
the provisions of this Agreement. For purposes hereof, “
immediate family ” shall mean any relationship by
blood, marriage or adoption, not more remote than first
cousin. In addition, the foregoing shall not prohibit
privately negotiated transactions, provided the transferees agree,
in writing, to be bound to the terms of these lockup provisions in
this Section 4 for the balance of the Lockup Period.
(c) Notwithstanding
anything to the contrary contained in this Agreement, (i) the
lockup provisions contained in this Section 4 will terminate and
shall be null and void after 24 months from the Lockup Date or upon
a Change of Control of AEFI and Buyer or either of them; (ii) prior
to the termination of these lockup provisions Seller may sell or
transfer up to 121,875 Shares per calendar quarter; and (iii) on
any day prior to the termination of these lockup provisions, if the
trading volume on the principal market on which AEFI’s common
stock is then trading is greater than 100,000 shares and
AEFI’s common stock is then trading at a price of not less
than $1.00 per share, Seller may sell up to an additional 3.29% of
the trading volume on the principal market, as reported immediately
prior to the sale of the Shares on such day of
sale. Upon request, Seller agrees to permit inspection
of all account and transfer records by AEFI associated with the
foregoing covenant.
5. “ Change
of Control ” means the occurrence of any of the following
transactions or series of transactions at any time: (a) the
acquisition, direct or indirect, by any Person or
“group” (within the meaning of Section 13(d) or 14(d)
of the Exchange Act) of the legal, beneficial or equitable
ownership of (i) at least fifty percent (50%) of the aggregate
voting interests in AEFI and Buyer or either of them, or (ii)
equity interests having the right to at least fifty percent (50%)
of the profits of AEFI and Buyer or either of them; (b) the sale,
lease, conveyance or other disposition to any Person of all or
substantially all of the assets of AEFI and Buyer or either of
them; (c) the consolidation of AEFI and Buyer or either of them
with, or merger into, any Person; (d) the adoption of any plan
relating to the liquidation or dissolution of AEFI and Buyer or
either of them; (e) the acquisition of the right, whether direct or
indirect, by any Person to appoint a majority of the board of
directors of AEFI and Buyer or either of them; or (f) the
acquisition of the right, whether direct or indirect, by any Person
to Control the management of AEFI or Buyer or either of
them.
6. Seller’s
Representations and Warranties . Seller warrants and
represents with respect to its sale of its membership interests in
the Company to Buyer as follows:
(a) To the best of
Seller’s knowledge, the attached Schedule A is a true,
correct and complete listing of the assets and liabilities,
contingent or otherwise, of the Company. The Company is
a North Dakota Limited Liability Company, ID number 22672400, and
is active and in good standing in the state of North
Dakota. The Company’s current operating agreement
is that Joint Venture Agreement executed by the members of the
Company November 16, 2006 and attached hereto as Schedule B (the
“ JV Agreement ”). To the best of
Seller’s knowledge there are currently no unsettled or
ongoing disputes or litigation that are or could be material to the
Company’s business prospects, operations or
assets.
(b) Seller has good,
valid and marketable title to the membership interests, as set
forth in Schedule 1, free and clear of any and all liens, equities,
claims, charges or other encumbrances or rights of any third
parties of any nature (including, but not limited to, options,
rights of first refusal or similar rights, contingent or
otherwise). Seller is conveying to Buyer good, valid and
marketable title thereto, free and clear of any and all liens,
equities, claims, charges or other encumbrances or rights of any
third parties. The attached Schedule 1 is a true,
correct and accurate representation of the Seller’s
membership interests.
(c) Seller has all
requisite legal power to enter into and to perform his obligations
under this Agreement. This Agreement and the membership
interests or certificate or powers being delivered concurrently
herewith have been duly executed and delivered by
Seller. This Agreement constitutes the legal, valid and
binding obligation of Seller, enforceable against Seller in
accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, reorganization, rehabilitation,
insolvency, moratorium or other similar laws affecting
creditors’ rights generally and by general principles of
equity.
(d) Neither the
execution and delivery of this Agreement nor the consummation by
Seller of the transactions contemplated hereby will conflict with,
result in a breach of or constitute a default under or violation of
any term of any agreement, contract or instrument to which he is a
party or any applicable law, rule, regulation, order or judgment of
any court or governmental authority.
(e) No consent,
approval, authorization, or order of, registration or filing with,
or notice to, any domestic or foreign governmental authority,
regulatory body or court is required for the execution or delivery
of, or the performance by Seller of his obligations under, or
compliance by Seller with, this Agreement or the transactions
contemplated hereunder.
(f) Seller has
obtained all consents, approvals and waivers of third parties that
may be required in connection with the execution and delivery of
this Agreement and the consummation of the transactions
contemplated hereby. Notwithstanding anything to the
contrary contained herein, Seller has not obtained any consent from
other holders of LLC membership interests in the Company as set
forth in section 2.05 of the JV Agreement, which provides that
members of the Company may not unreasonably withhold consent to a
transfer of LLC membership interests in the Company to a third
party, to (1) the sale of the Interests pursuant to this Agreement
or (2) Haworth’s acquisition of those membership interests in
the Company originally owned by Donbara Group LLC, a California
limited liability company, the sole member of which was
Haworth.
7. Information on
AEFI . Seller has been furnished with or has had
access to such information and materials concerning AEFI as have
been requested by Seller. In addition, Seller may have
received in writing from AEFI such other information concerning its
operations, financial condition prospects and other matters as
Seller has requested in writing (such other information is
collectively the “ Other Written Information ”)
and considered all factors Seller deems material in deciding on the
advisability of acquiring the Shares.
8. Information on
Seller . Seller is an “accredited
investor”, as such term is defined in Rule 501of Regulation D
promulgated by the Securities and Exchange Commission (the “
Commission ”) under the Securities Act of 1933 Act
(the “ 1933 Act ”), is experienced in
investments and business matters, has made investments of a
speculative nature and has purchased securities of United States
publicly-owned companies in private placements in the past and,
with its representatives, has such knowledge and experience in
financial, tax and other business matters as to enable Seller to
utilize the information made available by AEFI to evaluate the
merits and risks of and to make an informed investment decision
with respect to the proposed acquisition of shares of AEFI, which
represents a speculative investment. Seller has the
authority and is duly and legally qualified to purchase and own its
Shares. Seller is able to bear the risk of such
investment for an indefinite period and to afford a complete loss
thereof.
9. Acquisition of
Shares . Seller will acquire its Shares as principal
for its own account for investment only and not with a view toward,
or for resale in connection with, the public sale or any
distribution thereof; provided however , that nothing in
this Section 9 negates or impairs Seller’s rights under
Section 4 and applicable law.
10. Compliance with
Securities Act . Seller understands and agrees that
its Shares have not been registered under the 1933 Act or any
applicable state securities laws, by reason of their issuance in a
transaction that does not require registration under the 1933 Act
(based in part on the accuracy of the representations and
warranties of Seller contained herein), and that such Shares must
be held indefinitely unless a subsequent disposition is registered
under the 1933 Act or any applicable state securities laws or is
exempt from such registration as contemplated by Section
4.
(a) The initial
certificate evidencing the Shares shall bear the following or
similar legend:
“THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, NOR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE
SELECTED BY AEFI), IN A G
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