GUGGENHEIM CORPORATE FUNDING, LLC 135 E. 57th Street, 6th Floor New York, New York 10022 Consent Letter

Contract Categories: Business Finance - Funding Agreements
EX-10.5 11 d406707dex105.htm CONSENT LETTER AGREEMENT Consent Letter Agreement

Exhibit 10.5

GUGGENHEIM CORPORATE FUNDING, LLC

135 E. 57th Street, 6th Floor

New York, New York 10022

Consent Letter

September 4, 2012

Energy & Exploration Partners, LLC

100 Throckmorton, Suite 1700

Fort Worth, TX 76102

Attn: Hunt Pettit

 

Re: Credit Agreement dated as of June 26, 2012, by and among Energy & Exploration Partners, LLC (“Borrower”), Guggenheim Corporate Funding, LLC, as Administrative Agent (“Administrative Agent”) for the lenders from time to time party thereto (the “Lenders”), and the Lenders (as such Credit Agreement is from time to time amended, supplemented, restated or otherwise modified, the “Credit Agreement”; capitalized terms used but not defined herein shall have the meaning given such terms in the Credit Agreement).

Dear Mr. Pettit:

You have advised us that Borrower requests that Administrative Agent and the Lenders consent to Borrower, in connection with the Equity Transaction, (a) assigning an overriding royalty interest in the Niobrara Assets to the holders of net profit interests in the Niobrara Assets pursuant to the Assignment of Overriding Royalty attached hereto as Exhibit A and the Assignment of Overriding Royalty attached hereto as Exhibit B and (b) assigning an overriding royalty interest to the Shale Fund Investors pursuant to the Assignment of Overriding Royalty attached hereto as Exhibit C, the Assignment of Overriding Royalty attached hereto as Exhibit D, and the Assignment of Overriding Royalty attached hereto as Exhibit E (collectively, the “Requested ORI Conveyances”).

As evidenced by this Consent Letter (this “Letter”), Administrative Agent and the Lenders hereby consent to the Requested ORI Conveyances (the “Specified Consent”). Borrower represents and warrants that after giving effect to the Requested ORI Conveyances, Borrower will own (i) not less than 75% of the net revenue interest (proportionately reduced) attributable to the working interest owned by Borrower in the Permian Base Area Oil and Gas Properties and (ii) not less than 80% of the net revenue interest (proportionately reduced) attributable to the working interest owned by Borrower in the DJ Basin Area Oil and Gas Properties.

Except as specifically consented to herein, all of the terms and conditions of the Credit Agreement and the other Loan Documents are, and remain, in full force and effect in accordance with their respective terms.

This Letter does not imply any obligation on the part of Administrative Agent or the Lenders, and neither Administrative Agent nor the Lenders shall be obligated, at any time, to grant further amendments, modifications, consents, or waivers.

The consent contained in this Letter is expressly limited to the Specified Consent, as further limited herein. Neither this Letter, nor any other actions taken by, or any inaction on the part of, Administrative Agent or the Lenders, shall be deemed to be (i) a waiver of any Default or Event of Default which exists or may exist hereafter, except as expressly provided herein, or (ii) a waiver of (or an agreement to forbear from exercising) any rights or remedies that Administrative Agent or the Lenders have pursuant to the Credit Agreement and applicable law by reason of any Default or Event of Default.

 

 

 

Page 1


This Letter may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of a copy of this Letter by electronic mail in “portable document format” (“.pdf”) form, or by any other electronic means intended to preserve the original graphic and pictorial appearance hereof, will have the same effect as physical delivery of this Letter bearing the original signature.

THIS LETTER, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

Please confirm that the foregoing is in accordance with your understanding by signing and returning to us the enclosed copy of this Letter, which shall become a binding agreement upon our receipt.

[Signature pages follow]

 

 

 

Page 2


Sincerely,
ADMINISTRATIVE AGENT:
GUGGENHEIM CORPORATE FUNDING, LLC,
as Administrative Agent
By:   /s/ William Hagner
Name:   William Hagner
Title:   Senior Managing Director
THE LENDERS:
GUGGENHEIM ENERGY OPPORTUNITIES FUND, LP,
By: GUGGENHEIM PARTNERS INVESTMENT MANAGEMENT, LLC,
its Investment Manager
By:   /s/ Michael Damaso
Name:   Michael Damaso
Title:   Senior Managing Director
NZC GUGGENHEIM FUND LLC,
By: GUGGENHEIM PARTNERS INVESTMENT MANAGEMENT, LLC,
its Manager
By:   /s/ Michael Damaso
Name:   Michael Damaso
Title:   Senior Managing Director
SBC FUNDING, LLC,
By: GUGGENHEIM PARTNERS INVESTMENT MANAGEMENT, LLC,
its Manager
By:   /s/ Michael Damaso
Name:   Michael Damaso
Title:   Senior Managing Director

 

 

 

Signature Page to Consent Letter


GUGGENHEIM LIFE AND ANNUITY COMPANY,
By: GUGGENHEIM PARTNERS INVESTMENT MANAGEMENT, LLC,
its Manager
By:   /s/ Michael Damaso
Name:   Michael Damaso
Title:   Senior Managing Director

 

 

 

Signature Page to Consent Letter


AGREED TO AND ACCEPTED BY:
BORROWER:
ENERGY & EXPLORATION PARTNERS, LLC,
a Delaware limited liability company
By:   /s/ Hunt Pettit
  Hunt Pettit
  President, Secretary and Treasurer

 

 

 

Signature Page to Consent Letter


Exhibit A

See attached.

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

ASSIGNMENT OF OVERRIDING ROYALTY

(Multiple Assignees)

 

THE STATE OF COLORADO   §   
  §   
  §    KNOW ALL MEN BY THESE PRESENTS:
  §   
COUNTY OF WELD   §   
  §   

Energy & Exploration Partners, LLC whose address is P.O. Box 471428, Fort Worth, Texas 76147-1376, hereinafter called “Assignor”, for and inconsideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by Assignor, does by these presents, GRANT, ASSIGN, TRANSFER and CONVEY unto the parties set forth below, hereinafter called the “Assignees”:

Janice Boswell-Wueste, an individual, whose address is 2845 Manorwood Trl., Fort Worth, TX 76109;

Edward A. Wueste, an individual, whose address is 2845 Manorwood Trl., Fort Worth, TX 76109;

Matthew Ledbetter, an individual, whose address is 5309 Judalon Ln., Houston, TX 77056;

Amber Boswell, an individual, whose address is 2721 Manorwood Trl., Fort Worth, TX 76109; and

Jason Roberts, an individual, whose address is 3005 Amherst Ave., Dallas, TX 75225.

an overriding royalty interest (the “Overriding Royalty”), as described in Exhibit “A” attached hereto and made a part hereof for all purposes, in all oil, gas and other hydrocarbons produced, save and sold under the terms of the Oil and Gas Leases described in Exhibit “A” (the “Lease(s)”) covering the lands described therein located in Weld County, Colorado.

 

 

1


The assignment of Overriding Royalty made herein is subject to the following terms, conditions and provisions:

 

  1. For the purposes of calculating royalty payments, expenses and deductions, the Overriding Royalty shall be subject to the exact terms, conditions and provisions as those found in the Leases, on a lease by lease basis. In other words, should the underlying or referenced lease provide for cost free royalty then the Overriding Royalty shall also be free and clear of all cost and expenses of exploration, production, transportation and marketing, but shall bear its proportionate share of all gross production, severance, ad valorem and similar taxes. However, should the underlying referenced lease, on a lease by lease basis, be subject to deductions for transportation, dehydration and marketing then the Overriding Royalty shall also be subject to the same deductions and proportionate share of all gross production, severance, ad valorem and similar taxes.

 

  2. If any of the Leases cover less than the full (100% of 8/8ths) interest in oil, gas and other minerals in all or any part of the lands and depths described therein, the Overriding Royalty shall be proportionately reduced and paid to Assignee in the proportion that the interest covered by said Lease bears to the entire mineral estate;

 

  3. Assignor may, without the joinder of Assignee, pool and combine Assignee’s Overriding Royalty with other leases and lands in compliance with terms and conditions of the Leases.

 

  4. The Overriding Royalty shall attach to any extension or renewals of the Leases and shall be calculated and paid in the same manner as the original reservation set forth herein. Any lease acquired by Assignor, or its successors or assigns, within one (1) year of the termination of the Leases shall be deemed an extension or renewal lease for the purposes of this provision insofar as the renewal or extension lease covers acreage transferred hereunder.

TO HAVE AND TO HOLD the above described overriding royalty, together with all and singular the rights and appurtenances thereunto in anywise belonging unto Assignee, its successors and assigns forever; and Assignor does by these presents bind itself and its successors and assigns to warrant and forever defend all and singular, the Leases unto Assignee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Assignor, but not otherwise.

[Signature page follows.]

 

2


IN WITNESS WHEREOF, the parties have executed this instrument as of the dates set forth in the acknowledgement certificates below, but it is effective as of the date of each Lease.

 

ASSIGNOR

ENERGY & EXPLORATION PARTNERS, LLC,

a Delaware limited liability company

By:    
  Hunt Pettit, President

~ACKNOWLEDGEMENT~

STATE OF TEXAS

COUNTY OF TARRANT

The foregoing instrument was acknowledged before me on this          of August, 2012 by Hunt Pettit, President of Energy & Exploration Partners, LLC, a Delaware limited liability company, on behalf of said company.

       
      Notary Public in and for the State of Texas

[Remainder of page intentionally left blank]

 

3


EXHIBIT A

 

                                   Assignee ORRI  

STATE

   COUNTY   

LESSOR

   LESSEE (1)    RECORDING DATE    VOLUME
(Reception#)
   PAGE    Janice Boswell     Edward A. Wueste     Matthew F.
Ledbetter
    Amber Boswell     Jason Roberts  
CO    Weld    Leslie H. Brumley    ENEXP    6/24/2011    Reception #
3775990
   NA      0.008971     0.001794     0.008971     0.038039     0.026914
CO    Weld    Ila Mae Daniels    ENEXP    6/24/2011    Reception #
3775991
   NA      0.008971     0.001794     0.008971     0.038039     0.026914
CO    Weld    Jeannine Brumley/Duane Schwartz    ENEXP    6/24/2011    Reception #
3775989
   NA      0.008971     0.001794     0.008971     0.038039     0.026914
CO    Weld    Alice Brewster    ENEXP    6/24/2011    Reception #
3775988
   NA      0.008971     0.001794     0.008971     0.038039     0.026914
CO    Weld    Daniel Varra (Truste)e and Carolyn Varra    ENEXP          NA      0.010253     0.002051     0.010253     0.043473     0.030759
CO    Weld    Norman & Patricia Freeman    ENEXP    8/9/2011    Reception #
3784900
   NA      0.003589     0.000718     0.003589     0.015216     0.010766
CO    Weld    Raymond and Gloria Winder Family Trust    ENEXP    7/6/2011    Reception #
3778008
   NA      0.002243     0.000449     0.002243     0.009510     0.006729
CO    Weld    Breniman Farms LLC    ENEXP    12/8/2011    Reception
#3810605
   NA      0.010253     0.002051     0.010253     0.043473     0.030759
CO    Weld    Sharon L. Gray    ENEXP    7/18/2011    Reception #
3780411
   NA      0.010253     0.002051     0.010253     0.043473     0.030759
CO    Weld    Norman & Patricia Freeman Trust    ENEXP    5/2/2011    Reception
#3765901
   NA      0.003589     0.000718     0.003589     0.015216     0.010766
CO    Weld    Gale A. Nelson    ENEXP    8/8/2011    Reception #
3784899
   NA      0.001794     0.000359     0.001794     0.007608     0.005383


Exhibit B

See attached.

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

ASSIGNMENT OF OVERRIDING ROYALTY

(Multiple Assignees)

 

THE STATE OF WYOMING    §   
   §   
   §    KNOW ALL MEN BY THESE PRESENTS:
   §   
COUNTIES OF LARAMIE AND GOSHEN    §   
   §   

Energy & Exploration Partners, LLC whose address is P.O. Box 471428, Fort Worth, Texas 76147-1376, hereinafter called “Assignor”, for and inconsideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by Assignor, does by these presents, GRANT, ASSIGN, TRANSFER and CONVEY unto the parties set forth below, hereinafter called the “Assignees”:

Janice Boswell-Wueste, an individual, whose address is 2845 Manorwood Trl., Fort Worth, TX 76109;

Edward A. Wueste, an individual, whose address is 2845 Manorwood Trl., Fort Worth, TX 76109;

Matthew Ledbetter, an individual, whose address is 5309 Judalon Ln., Houston, TX 77056;

Amber Boswell, an individual, whose address is 2721 Manorwood Trl., Fort Worth, TX 76109; and

Jason Roberts, an individual, whose address is 3005 Amherst Ave., Dallas, TX 75225.

an overriding royalty interest (the “Overriding Royalty”), as described in Exhibit “A” attached hereto and made a part hereof for all purposes, in all oil, gas and other hydrocarbons produced, save and sold under the terms of the Oil and Gas Leases described in Exhibit “A” (the “Lease(s)”) covering the lands described therein located in Laramie and Goshen Counties, Wyoming.

 

1


The assignment of Overriding Royalty made herein is subject to the following terms, conditions and provisions:

 

  1. For the purposes of calculating royalty payments, expenses and deductions, the Overriding Royalty shall be subject to the exact terms, conditions and provisions as those found in the Leases, on a lease by lease basis. In other words, should the underlying or referenced lease provide for cost free royalty then the Overriding Royalty shall also be free and clear of all cost and expenses of exploration, production, transportation and marketing, but shall bear its proportionate share of all gross production, severance, ad valorem and similar taxes. However, should the underlying referenced lease, on a lease by lease basis, be subject to deductions for transportation, dehydration and marketing then the Overriding Royalty shall also be subject to the same deductions and proportionate share of all gross production, severance, ad valorem and similar taxes.

 

  2. If any of the Leases cover less than the full (100% of 8/8ths) interest in oil, gas and other minerals in all or any part of the lands and depths described therein, the Overriding Royalty shall be proportionately reduced and paid to Assignee in the proportion that the interest covered by said Lease bears to the entire mineral estate;

 

  3. Assignor may, without the joinder of Assignee, pool and combine Assignee’s Overriding Royalty with other leases and lands in compliance with terms and conditions of the Leases.

 

  4. The Overriding Royalty shall attach to any extension or renewals of the Leases and shall be calculated and paid in the same manner as the original reservation set forth herein. Any lease acquired by Assignor, or its successors or assigns, within one (1) year of the termination of the Leases shall be deemed an extension or renewal lease for the purposes of this provision insofar as the renewal or extension lease covers acreage transferred hereunder.

TO HAVE AND TO HOLD the above described overriding royalty, together with all and singular the rights and appurtenances thereunto in anywise belonging unto Assignee, its successors and assigns forever; and Assignor does by these presents bind itself and its successors and assigns to warrant and forever defend all and singular, the Leases unto Assignee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Assignor, but not otherwise.

[Signature page follows.]

 

2


IN WITNESS WHEREOF, the parties have executed this instrument as of the dates set forth in the acknowledgement certificates below, but it is effective as of the date of each Lease.

 

ASSIGNOR
ENERGY & EXPLORATION PARTNERS, LLC, a Delaware limited liability company
By:    
  Hunt Pettit, President

~ACKNOWLEDGEMENT~

STATE OF TEXAS

COUNTY OF TARRANT

The foregoing instrument was acknowledged before me on this          of August, 2012 by Hunt Pettit, President of Energy & Exploration Partners, LLC, a Delaware limited liability company, on behalf of said company.

 

       
      Notary Public in and for the State of Texas

[Remainder of page intentionally left blank]

 

3


EXHIBIT A

 

                                   Assignee ORRI  

STATE

  

COUNTY

  

LESSOR

  

LESSEE (1)

  

RECORDING DATE

  

VOLUME
(Reception#)

  

PAGE

   Janice Boswell     Edward A. Wueste     Matthew  F.
Ledbetter
    Amber Boswell     Jason Roberts  

WY

   Goshen    Ronald L. & Helga E. Cook    ENEXP    1/31/2011    810    16      0.008971     0.001794     0.008971     0.038039     0.026914

WY

   Goshen    TNT Farms, Inc. c/o Debra Wilson    ENEXP    1/31/2011    810    15      0.008971     0.001794     0.008971     0.038039     0.026914

WY

   Goshen    Robert S. & Christi L. Shields    ENEXP    3/31/2011    813    114      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Timothy Rex & Kathleen Trumball    ENEXP    2/22/2011    811    117      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Donald L. & Barbara R. Hill    ENEXP    6/20/2011    818    142      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Susan K. Bryant    ENEXP    3/29/2011    813    93      0.008971     0.001794     0.008971     0.038039     0.026914

WY

   Goshen    Patricia Cooper    ENEXP    3/29/2011    813    92      0.008971     0.001794     0.008971     0.038039     0.026914

WY

   Goshen    Elizabeth Jane Newell    ENEXP    3/29/2011    813    94      0.008971     0.001794     0.008971     0.038039     0.026914

WY

   Goshen    Rachel M. Schreiner Trust    ENEXP    6/20/2011    818    143      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    State of Wyoming #10-00728    ENEXP    3/29/2011    813    91      0.005981     0.001196     0.005981     0.025359     0.017943

WY

   Goshen    Bureau of Land Management #179686    ENEXP    3/29/2011    813    88      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Bureau of Land Management #179691    ENEXP    3/29/2011    813    89      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Bureau of Land Management #179692    ENEXP    3/29/2011    813    90      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Bureau of Land Management #179694    ENEXP    6/22/2011    818    158      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Gene & Karen Wolfe    ENEXP    2/22/2011    811    114      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Rodney & Robbin Nipper    ENEXP    2/22/2011    811    115      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Richard & Laura Young    ENEXP    2/22/2011    811    116      0.004486     0.000897     0.004486     0.019019     0.013457

WY

   Goshen    Bob and Mary Sue Van Newkirk    ENEXP    3/31/2011    813    113      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Brent and Cindy Medford    ENEXP    4/13/2011    814    122      0.005981     0.001196     0.005981     0.025359     0.017943

WY

   Goshen    Terry & Julianne Rogers    ENEXP    10/24/2011    824    66      0.007177     0.001435     0.007177     0.030431     0.021531

WY

   Goshen    Joel & Marilyn Miskimins    ENEXP    3/31/2011    813    112      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    Gwendolyn B. Miskimins    ENEXP    3/31/2011    813    111      0.002243     0.000449     0.002243     0.009510     0.006729

 

Page 1 of 3


EXHIBIT A

 

 

STATE

  

COUNTY

  

LESSOR

  

LESSEE (1)

  

RECORDING DATE

  

VOLUME
(Reception#)

  

PAGE

   Janice Boswell     Edward A. Wueste     Matthew  F.
Ledbetter
    Amber Boswell     Jason Roberts  

WY

   Goshen    Susan L. Sorrick    ENEXP    3/29/2011    813    95      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    Joan F. Beien    ENEXP    3/21/2011    812    199      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Roland I. Schwindt    ENEXP    5/20/2011    816    204      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    Theodore & Georgia Whitaker    ENEXP    9/20/2011    822    195      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Rodney & Lori Weyrich    ENEXP    5/17/2011    816    165      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    James Allan Johnston    ENEXP    7/5/2011    819    65      0.010766     0.002153     0.010766     0.045647     0.032297

WY

   Goshen    St. Joseph’s Childrens Home    ENEXP    5/2/2011    815    160      0.005981     0.001196     0.005981     0.025359     0.017943

WY

   Goshen    Dudley D. Hatterman    ENEXP    4/20/2011    815    76      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    Tom A. & Verna R. Scott    ENEXP    7/5/2011    819    66      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    Steven N. Smith & Marion N. Smith, Trustee’s    ENEXP    6/20/2011    818    141      0.005981     0.001196     0.005981     0.025359     0.017943

WY

   Goshen    Steven G. Shaddock    ENEXP    6/21/2011    818    147      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    George G. Vaught, Jr.    ENEXP    6/21/2011    818    148      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    McCulliss Resources Co.    ENEXP    6/21/2011    818    149      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Brent C. Kaufman    ENEXP    11/8/2011    825    97      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    John L. & Donna R. Bath    ENEXP    12/9/2011    826    149      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    Fred L. & Delores Reichert    ENEXP    7/18/2011    819    188      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Larry L. & Deidre Anderson    ENEXP    6/20/2011    818    140      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Travis Evans    ENEXP    7/11/2011    819    134      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    John D. Somsen, Jr.    ENEXP    6/1/2011    817    129      0.005981     0.001196     0.005981     0.025359     0.017943

WY

   Goshen    John W. & Rosanna Harris    ENEXP    8/8/2011    820    169      0.002243     0.000449     0.002243     0.009510     0.006729

WY

   Goshen    Gary L. Sims, Iris K. Sims    ENEXP    8/16/2011    821    69      0.002243     0.000449     0.002243     0.009510     0.006729

 

Page 2 of 3


EXHIBIT A

 

 

STATE

  

COUNTY

  

LESSOR

  

LESSEE (1)

  

RECORDING DATE

  

VOLUME
(Reception#)

  

PAGE

   Janice Boswell     Edward A. Wueste     Matthew  F.
Ledbetter
    Amber Boswell     Jason Roberts  

WY

   Goshen    Gerald A. Stephenson and Mary Ann Stephenson Family Living Trust, Gerald A. Stephenson, Trustee    ENEXP    6/27/2011    819    6      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Mary Ann Stephenson    ENEXP    6/27/2011    819    5      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Goshen    Town of Yoder    ENEXP    1/4/2012    828    61      0.007177     0.001435     0.007177     0.030431     0.021531

WY

   Laramie    Dale & Darlene Bowman    ENEXP    1/10/2011    2202    1122      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Laramie    Robert T & Genevieve G. Scott    ENEXP    12/14/2010    2198    635      0.003589     0.000718     0.003589     0.015216     0.010766

WY

   Laramie    State of Wyoming #10-00725    ENEXP    5/11/2011    2219    1132      0.005981     0.001196     0.005981     0.025359     0.017943

WY

   Laramie    State of Wyoming #10-00726    ENEXP    5/11/2011    2219    1136      0.005981     0.001196     0.005981     0.025359     0.017943

WY

   Laramie    State of Wyoming #10-00727    ENEXP    5/11/2011    2219    1134      0.005981     0.001196     0.005981     0.025359     0.017943

WY

   Laramie    Bureau of Land Management #179752    ENEXP    5/11/2011    2219    1128      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Laramie    B. Clinton & Shari L. Farrar    ENEXP    2/3/2011    2206    913      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Laramie    Marilyn E. Luman and Merril J. Luman    ENEXP    2/23/2011    2208    1504      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Laramie    Butler Farms    ENEXP    5/27/2011    2221    1134      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Laramie    Jody Lynn Clark (aka Jody Lynn Cole)(Add’l per Laycock Duhig)    ENEXP    6/1/2011    2222    162      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Laramie    Janet Stahla    ENEXP    TBD    TBD    TBD      0.013457     0.002691     0.013457     0.057058     0.040371

WY

   Laramie    Bonnie J. Kester    ENEXP    11/21/2011    2246    470      0.002243     0.000449     0.002243     0.009510     0.006729

 

Page 3 of 3


Exhibit C

See attached.

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

ASSIGNMENT OF OVERRIDING ROYALTY

(Multiple Assignees)

 

THE STATE OF COLORADO   §    
  §    
  §   KNOW ALL MEN BY THESE PRESENTS:  
  §    
COUNTY OF WELD   §    
  §    

Energy & Exploration Partners, LLC whose address is P.O. Box 471428, Fort Worth, Texas 76147-1376, hereinafter called “Assignor”, for and inconsideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by Assignor, does by these presents, GRANT, ASSIGN, TRANSFER and CONVEY unto the parties set forth below, hereinafter called the “Assignees”:

Oso+Toro Multistrategy Fund Series Interest of the SALI Multiseries Fund II 3(C1) LP, whose address is 6836 Austin Center Boulevard, Suite 320, Austin, Texas 78731;

Oso+Toro Multistrategy Fund (Tax Exempt) Segregated Portfolio of the SALI Multiseries Fund SPC Ltd, whose address is 6836 Austin Center Boulevard, Suite 320, Austin, Texas 78731;

Carl Lasner, an individual, whose address is 1225 Red Hawk Rd., Wimberley, TX 78678;

Zachary Burk Lowe, an individual, whose address is 4154 Santa Barbara Dr., Dallas, Texas 75214;

Jason Roberts, an individual, whose address is 3005 Amherst Ave., Dallas, TX 75225.

an overriding royalty interest (the “Overriding Royalty”), as described in Exhibit “A” attached hereto and made a part hereof for all purposes, in all oil, gas and other hydrocarbons produced, save and sold under the terms of the Oil and Gas Leases described in Exhibit “A” (the “Lease(s)”) covering the lands described therein located in Weld County, Colorado.

 

 

1


The assignment of Overriding Royalty made herein is subject to the following terms, conditions and provisions:

 

  1. For the purposes of calculating royalty payments, expenses and deductions, the Overriding Royalty shall be subject to the exact terms, conditions and provisions as those found in the Leases, on a lease by lease basis. In other words, should the underlying or referenced lease provide for cost free royalty then the Overriding Royalty shall also be free and clear of all cost and expenses of exploration, production, transportation and marketing, but shall bear its proportionate share of all gross production, severance, ad valorem and similar taxes. However, should the underlying referenced lease, on a lease by lease basis, be subject to deductions for transportation, dehydration and marketing then the Overriding Royalty shall also be subject to the same deductions and proportionate share of all gross production, severance, ad valorem and similar taxes.

 

  2. If any of the Leases cover less than the full (100% of 8/8ths) interest in oil, gas and other minerals in all or any part of the lands and depths described therein, the Overriding Royalty shall be proportionately reduced and paid to Assignee in the proportion that the interest covered by said Lease bears to the entire mineral estate;

 

  3. Assignor may, without the joinder of Assignee, pool and combine Assignee’s Overriding Royalty with other leases and lands in compliance with terms and conditions of the Leases.

 

  4. The Overriding Royalty shall attach to any extension or renewals of the Leases and shall be calculated and paid in the same manner as the original reservation set forth herein. Any lease acquired by Assignor, or its successors or assigns, within one (1) year of the termination of the Leases shall be deemed an extension or renewal lease for the purposes of this provision insofar as the renewal or extension lease covers acreage transferred hereunder.

TO HAVE AND TO HOLD the above described overriding royalty, together with all and singular the rights and appurtenances thereunto in anywise belonging unto Assignee, its successors and assigns forever; and Assignor does by these presents bind itself and its successors and assigns to warrant and forever defend all and singular, the Leases unto Assignee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Assignor, but not otherwise.

[Signature page follows.]

 

2


IN WITNESS WHEREOF, the parties have executed this instrument as of the dates set forth in the acknowledgement certificates below, but it is effective as of the date of each Lease.

 

ASSIGNOR
ENERGY & EXPLORATION PARTNERS, LLC, a Delaware limited liability company
By:     
  Hunt Pettit, President

~ACKNOWLEDGEMENT~

STATE OF TEXAS

COUNTY OF TARRANT

The foregoing instrument was acknowledged before me on this          of August, 2012 by Hunt Pettit, President of Energy & Exploration Partners, LLC, a Delaware limited liability company, on behalf of said company.

 

       
      Notary Public in and for the State of Texas

[Remainder of page intentionally left blank]

 

3


EXHIBIT A

 

                                  Assignee ORRI (2)  
STATE    COUNTY   

LESSOR

   LESSEE (1)    RECORDING DATE    VOLUME
(Reception#)
  PAGE    OSO1     OSO2     Carl Lasner     Jason Roberts     LOWE  
CO    Weld    Leslie H. Brumley    ENEXP    6/24/2011    Reception #  ###-###-####   NA      0.566040     0.377360     0.009430     0.023590     0.023580
CO    Weld    Ila Mae Daniels    ENEXP    6/24/2011    Reception #  ###-###-####   NA      0.566040     0.377360     0.009430     0.023590     0.023580
CO    Weld    Jeannine Brumley/Duane Schwartz    ENEXP    6/24/2011    Reception #  ###-###-####   NA      0.566040     0.377360     0.009430     0.023590     0.023580
CO    Weld    Alice Brewster    ENEXP    6/24/2011    Reception #  ###-###-####   NA      0.566040     0.377360     0.009430     0.023590     0.023580
CO    Weld    Daniel Varra (Truste)e and Carolyn Varra    ENEXP         NA      0.646903     0.431269     0.010777     0.026960     0.026949
CO    Weld    Norman & Patricia Freeman    ENEXP    8/9/2011    Reception #  ###-###-####   NA      0.226416     0.150944     0.003772     0.009436     0.009432
CO    Weld    Raymond and Gloria Winder Family Trust    ENEXP    7/6/2011    Reception #  ###-###-####   NA      0.141510     0.094340     0.002357     0.005897     0.005895
CO    Weld    Breniman Farms LLC    ENEXP    12/8/2011    Reception #3810605   NA      0.646903     0.431269     0.010777     0.026960     0.026949
CO    Weld    Sharon L. Gray    ENEXP    7/18/2011    Reception #  ###-###-####   NA      0.646903     0.431269     0.010777     0.026960     0.026949
CO    Weld    Norman & Patricia Freeman Trust    ENEXP    5/2/2011    Reception #3765901   NA      0.226416     0.150944     0.003772     0.009436     0.009432
CO    Weld    Gale A. Nelson    ENEXP    8/8/2011    Reception #  ###-###-####   NA      0.113208     0.075472     0.001886     0.004718     0.004716

 

Page 1 of 1


Exhibit D

See attached.

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

ASSIGNMENT OF OVERRIDING ROYALTY

(Multiple Assignees)

 

THE STATE OF WYOMING    §   
   §   
   §        KNOW ALL MEN BY THESE PRESENTS:
   §   
COUNTIES OF LARAMIE AND GOSHEN    §   
   §   

Energy & Exploration Partners, LLC whose address is P.O. Box 471428, Fort Worth, Texas 76147-1376, hereinafter called “Assignor”, for and inconsideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by Assignor, does by these presents, GRANT, ASSIGN, TRANSFER and CONVEY unto the parties set forth below, hereinafter called the “Assignees”:

Oso+Toro Multistrategy Fund Series Interest of the SALI Multiseries Fund II 3(C1) LP, whose address is 6836 Austin Center Boulevard, Suite 320, Austin, Texas 78731;

Oso+Toro Multistrategy Fund (Tax Exempt) Segregated Portfolio of the SALI Multiseries Fund SPC Ltd, whose address is 6836 Austin Center Boulevard, Suite 320, Austin, Texas 78731;

Carl Lasner, an individual, whose address is 1225 Red Hawk Rd., Wimberley, TX 78678;

Zachary Burk Lowe, an individual, whose address is 4154 Santa Barbara Dr., Dallas, Texas 75214;

Jason Roberts, an individual, whose address is 3005 Amherst Ave., Dallas, TX 75225.

an overriding royalty interest (the “Overriding Royalty”), as described in Exhibit “A” attached hereto and made a part hereof for all purposes, in all oil, gas and other hydrocarbons produced, save and sold under the terms of the Oil and Gas Leases described in Exhibit “A” (the “Lease(s)”) covering the lands described therein located in Laramie and Goshen Counties, Wyoming.

 

 

1


The assignment of Overriding Royalty made herein is subject to the following terms, conditions and provisions:

 

  1. For the purposes of calculating royalty payments, expenses and deductions, the Overriding Royalty shall be subject to the exact terms, conditions and provisions as those found in the Leases, on a lease by lease basis. In other words, should the underlying or referenced lease provide for cost free royalty then the Overriding Royalty shall also be free and clear of all cost and expenses of exploration, production, transportation and marketing, but shall bear its proportionate share of all gross production, severance, ad valorem and similar taxes. However, should the underlying referenced lease, on a lease by lease basis, be subject to deductions for transportation, dehydration and marketing then the Overriding Royalty shall also be subject to the same deductions and proportionate share of all gross production, severance, ad valorem and similar taxes.

 

  2. If any of the Leases cover less than the full (100% of 8/8ths) interest in oil, gas and other minerals in all or any part of the lands and depths described therein, the Overriding Royalty shall be proportionately reduced and paid to Assignee in the proportion that the interest covered by said Lease bears to the entire mineral estate;

 

  3. Assignor may, without the joinder of Assignee, pool and combine Assignee’s Overriding Royalty with other leases and lands in compliance with terms and conditions of the Leases.

 

  4. The Overriding Royalty shall attach to any extension or renewals of the Leases and shall be calculated and paid in the same manner as the original reservation set forth herein. Any lease acquired by Assignor, or its successors or assigns, within one (1) year of the termination of the Leases shall be deemed an extension or renewal lease for the purposes of this provision insofar as the renewal or extension lease covers acreage transferred hereunder.

TO HAVE AND TO HOLD the above described overriding royalty, together with all and singular the rights and appurtenances thereunto in anywise belonging unto Assignee, its successors and assigns forever; and Assignor does by these presents bind itself and its successors and assigns to warrant and forever defend all and singular, the Leases unto Assignee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Assignor, but not otherwise.

[Signature page follows.]

 

2


IN WITNESS WHEREOF, the parties have executed this instrument as of the dates set forth in the acknowledgement certificates below, but it is effective as of the date of each Lease.

 

ASSIGNOR

 

ENERGY & EXPLORATION PARTNERS, LLC,

a Delaware limited liability company

By:    
  Hunt Pettit, President

~ACKNOWLEDGEMENT~

STATE OF TEXAS

COUNTY OF TARRANT

The foregoing instrument was acknowledged before me on this          of August, 2012 by Hunt Pettit, President of Energy & Exploration Partners, LLC, a Delaware limited liability company, on behalf of said company.

 

       
      Notary Public in and for the State of Texas

[Remainder of page intentionally left blank]

 

3


EXHIBIT A

 

                                   Assignee ORRI (2)  

STATE

   COUNTY   

LESSOR

   LESSEE (1)    RECORDING
DATE
   VOLUME
(Reception#)
   PAGE    OSO1     OSO2     Carl
Lasner
    Jason Roberts     LOWE  
WY    Goshen    Ronald L. & Helga E. Cook    ENEXP    1/31/2011    810    16      0.566040     0.377360     0.009430     0.023590     0.023580
WY    Goshen    TNT Farms, Inc. c/o Debra Wilson    ENEXP    1/31/2011    810    15      0.566040     0.377360     0.009430     0.023590     0.023580
WY    Goshen    Robert S. & Christi L. Shields    ENEXP    3/31/2011    813    114      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Timothy Rex & Kathleen Trumball    ENEXP    2/22/2011    811    117      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Donald L. & Barbara R. Hill    ENEXP    6/20/2011    818    142      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Susan K. Bryant    ENEXP    3/29/2011    813    93      0.566040     0.377360     0.009430     0.023590     0.023580
WY    Goshen    Patricia Cooper    ENEXP    3/29/2011    813    92      0.566040     0.377360     0.009430     0.023590     0.023580
WY    Goshen    Elizabeth Jane Newell    ENEXP    3/29/2011    813    94      0.566040     0.377360     0.009430     0.023590     0.023580
WY    Goshen    Rachel M. Schreiner Trust    ENEXP    6/20/2011    818    143      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    State of Wyoming #10-00728    ENEXP    3/29/2011    813    91      0.377360     0.251573     0.006287     0.015727     0.015720
WY    Goshen    Bureau of Land Management #179686    ENEXP    3/29/2011    813    88      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Bureau of Land Management #179691    ENEXP    3/29/2011    813    89      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Bureau of Land Management #179692    ENEXP    3/29/2011    813    90      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Bureau of Land Management #179694    ENEXP    6/22/2011    818    158      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Gene & Karen Wolfe    ENEXP    2/22/2011    811    114      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Rodney & Robbin Nipper    ENEXP    2/22/2011    811    115      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Richard & Laura Young    ENEXP    2/22/2011    811    116      0.283020     0.188680     0.004715     0.011795     0.011790
WY    Goshen    Bob and Mary Sue Van Newkirk    ENEXP    3/31/2011    813    113      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Brent and Cindy Medford    ENEXP    4/13/2011    814    122      0.377360     0.251573     0.006287     0.015727     0.015720
WY    Goshen    Terry & Julianne Rogers    ENEXP    10/24/2011    824    66      0.452832     0.301888     0.007544     0.018872     0.018864

 

Page 1 of 3


EXHIBIT A

 

STATE

   COUNTY   

LESSOR

   LESSEE (1)    RECORDING
DATE
   VOLUME
(Reception#)
   PAGE    OSO1     OSO2     Carl
Lasner
    Jason Roberts     LOWE  
WY    Goshen    Joel & Marilyn Miskimins    ENEXP    3/31/2011    813    112      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Gwendolyn B. Miskimins    ENEXP    3/31/2011    813    111      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Susan L. Sorrick    ENEXP    3/29/2011    813    95      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Joan F. Beien    ENEXP    3/21/2011    812    199      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Roland I. Schwindt    ENEXP    5/20/2011    816    204      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Theodore & Georgia Whitaker    ENEXP    9/20/2011    822    195      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Rodney & Lori Weyrich    ENEXP    5/17/2011    816    165      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    James Allan Johnston    ENEXP    7/5/2011    819    65      0.679248     0.452832     0.011316     0.028308     0.028296
WY    Goshen    St. Joseph’s Childrens Home    ENEXP    5/2/2011    815    160      0.377360     0.251573     0.006287     0.015727     0.015720
WY    Goshen    Dudley D. Hatterman    ENEXP    4/20/2011    815    76      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Tom A. & Verna R. Scott    ENEXP    7/5/2011    819    66      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Steven N. Smith & Marion N. Smith, Trustee’s    ENEXP    6/20/2011    818    141      0.377360     0.251573     0.006287     0.015727     0.015720
WY    Goshen    Steven G. Shaddock    ENEXP    6/21/2011    818    147      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    George G. Vaught, Jr.    ENEXP    6/21/2011    818    148      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    McCulliss Resources Co.    ENEXP    6/21/2011    818    149      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Brent C. Kaufman    ENEXP    11/8/2011    825    97      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    John L. & Donna R. Bath    ENEXP    12/9/2011    826    149      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Fred L. & Delores Reichert    ENEXP    7/18/2011    819    188      0.849060     0.566040     0.014145     0.035385     0.035370

 

Page 2 of 3


EXHIBIT A

 

STATE

   COUNTY   

LESSOR

   LESSEE (1)    RECORDING
DATE
   VOLUME
(Reception#)
   PAGE    OSO1     OSO2     Carl
Lasner
    Jason Roberts     LOWE  
WY    Goshen    Larry L. & Deidre Anderson    ENEXP    6/20/2011    818    140      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Travis Evans    ENEXP    7/11/2011    819    134      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    John D. Somsen, Jr.    ENEXP    6/1/2011    817    129      0.377360     0.251573     0.006287     0.015727     0.015720
WY    Goshen    John W. & Rosanna Harris    ENEXP    8/8/2011    820    169      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Gary L. Sims, Iris K. Sims    ENEXP    8/16/2011    821    69      0.141510     0.094340     0.002357     0.005897     0.005895
WY    Goshen    Gerald A. Stephenson and Mary Ann Stephenson Family Living Trust, Gerald A. Stephenson, Trustee    ENEXP    6/27/2011    819    6      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Mary Ann Stephenson    ENEXP    6/27/2011    819    5      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Goshen    Town of Yoder    ENEXP    1/4/2012    828    61      0.452832     0.301888     0.007544     0.018872     0.018864
WY    Laramie    Dale & Darlene Bowman    ENEXP    1/10/2011    2202    1122      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Laramie    Robert T & Genevieve G. Scott    ENEXP    12/14/2010    2198    635      0.226416     0.150944     0.003772     0.009436     0.009432
WY    Laramie    State of Wyoming #10-00725    ENEXP    5/11/2011    2219    1132      0.377360     0.251573     0.006287     0.015727     0.015720
WY    Laramie    State of Wyoming #10-00726    ENEXP    5/11/2011    2219    1136      0.377360     0.251573     0.006287     0.015727     0.015720
WY    Laramie    State of Wyoming #10-00727    ENEXP    5/11/2011    2219    1134      0.377360     0.251573     0.006287     0.015727     0.015720
WY    Laramie    Bureau of Land Management #179752    ENEXP    5/11/2011    2219    1128      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Laramie    B. Clinton & Shari L. Farrar    ENEXP    2/3/2011    2206    913      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Laramie    Marilyn E. Luman and Merril J. Luman    ENEXP    2/23/2011    2208    1504      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Laramie    Butler Farms    ENEXP    5/27/2011    2221    1134      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Laramie    Jody Lynn Clark (aka Jody Lynn Cole)(Add’l per Laycock Duhig)    ENEXP    6/1/2011    2222    162      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Laramie    Janet Stahla    ENEXP    TBD    TBD    TBD      0.849060     0.566040     0.014145     0.035385     0.035370
WY    Laramie    Bonnie J. Kester    ENEXP    11/21/2011    2246    470      0.141510     0.094340     0.002357     0.005897     0.005895

 

Page 3 of 3


Exhibit E

See attached.

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

ASSIGNMENT OF OVERRIDING ROYALTY

(Multiple Assignees)

 

THE STATE OF TEXAS    §      
   §      
   §    KNOW ALL MEN BY THESE PRESENTS:
   §      
COUNTY OF LYNN    §      
   §      

Energy & Exploration Partners, LLC whose address is P.O. Box 471428, Fort Worth, Texas 76147-1376, hereinafter called “Assignor”, for and inconsideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by Assignor, does by these presents, GRANT, ASSIGN, TRANSFER and CONVEY unto the parties set forth below, hereinafter called the “Assignees”:

Oso+Toro Multistrategy Fund Series Interest of the SALI Multiseries Fund II 3(C1) LP, whose address is 6836 Austin Center Boulevard, Suite 320, Austin, Texas 78731;

Oso+Toro Multistrategy Fund (Tax Exempt) Segregated Portfolio of the SALI Multiseries Fund SPC Ltd, whose address is 6836 Austin Center Boulevard, Suite 320, Austin, Texas 78731;

Carl Lasner, an individual, whose address is 1225 Red Hawk Rd., Wimberley, TX 78678;

Zachary Burk Lowe, an individual, whose address is 4154 Santa Barbara Dr., Dallas, Texas 75214;

Jason Roberts, an individual, whose address is 3005 Amherst Ave., Dallas, TX 75225.

an overriding royalty interest (the “Overriding Royalty”), as described in Exhibit “A” attached hereto and made a part hereof for all purposes, in all oil, gas and other hydrocarbons produced, save and sold under the terms of the Oil and Gas Leases described in Exhibit “A” (the “Lease(s)”) covering the lands described therein located in Lynn County, Texas.

 


The assignment of Overriding Royalty made herein is subject to the following terms, conditions and provisions:

 

  1. For the purposes of calculating royalty payments, expenses and deductions, the Overriding Royalty shall be subject to the exact terms, conditions and provisions as those found in the Leases, on a lease by lease basis. In other words, should the underlying or referenced lease provide for cost free royalty then the Overriding Royalty shall also be free and clear of all cost and expenses of exploration, production, transportation and marketing, but shall bear its proportionate share of all gross production, severance, ad valorem and similar taxes. However, should the underlying referenced lease, on a lease by lease basis, be subject to deductions for transportation, dehydration and marketing then the Overriding Royalty shall also be subject to the same deductions and proportionate share of all gross production, severance, ad valorem and similar taxes.

 

  2. If any of the Leases cover less than the full (100% of 8/8ths) interest in oil, gas and other minerals in all or any part of the lands and depths described therein, the Overriding Royalty shall be proportionately reduced and paid to Assignee in the proportion that the interest covered by said Lease bears to the entire mineral estate;

 

  3. Assignor may, without the joinder of Assignee, pool and combine Assignee’s Overriding Royalty with other leases and lands in compliance with terms and conditions of the Leases.

 

  4. The Overriding Royalty shall attach to any extension or renewals of the Leases and shall be calculated and paid in the same manner as the original reservation set forth herein. Any lease acquired by Assignor, or its successors or assigns, within one (1) year of the termination of the Leases shall be deemed an extension or renewal lease for the purposes of this provision insofar as the renewal or extension lease covers acreage transferred hereunder.

TO HAVE AND TO HOLD the above described overriding royalty, together with all and singular the rights and appurtenances thereunto in anywise belonging unto Assignee, its successors and assigns forever; and Assignor does by these presents bind itself and its successors and assigns to warrant and forever defend all and singular, the Leases unto Assignee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Assignor, but not otherwise.

[Signature page follows.]


IN WITNESS WHEREOF, the parties have executed this instrument as of the dates set forth in the acknowledgement certificates below, but it is effective as of the date of each Lease.

ASSIGNOR

ENERGY & EXPLORATION PARTNERS, LLC, a Delaware limited liability company

By:    
  Hunt Pettit, President

~ACKNOWLEDGEMENT~

STATE OF TEXAS

COUNTY OF TARRANT

The foregoing instrument was acknowledged before me on this          of August, 2012 by Hunt Pettit, President of Energy & Exploration Partners, LLC, a Delaware limited liability company, on behalf of said company.

 

      
      Notary Public in and for the State of Texas

[Remainder of page intentionally left blank]


EXHIBIT A

 

                         ASSIGNEE ORRI (2)  

LESSOR

   LESSEE (1)    LEASE DATE    VOLUME    PAGE    OSO1     OSO2     Carl Lasner     Jason Roberts     LOWE  

Tom and Janice Hoskins

   ENEXP    3/7/2011    407    618      0.566040     0.377360     0.009430     0.023590     0.023580

Luke Speckman and Caress Inman

   ENEXP    4/4/2011    409    622      0.226416     0.150944     0.003772     0.009436     0.009432

Dell and Susan Cannon

   ENEXP    4/19/2011    407    680      0.226416     0.150944     0.003772     0.009436     0.009432

Edwards - Sleeper-Harris Land Company

   ENEXP    6/6/2011    407    677      0.226416     0.150944     0.003772     0.009436     0.009432

Duward D. Hancock, aka Donald D. Hancock aka D.D. Hancock, and wife Joyce Hancock, aka Wanda Joyce Hancock

   ENEXP    6/9/2011    412    121      0.226416     0.150944     0.003772     0.009436     0.009432

Dahlen K. Hancock and wife, Jody E. Hancock

   ENEXP    6/9/2011    412    125      0.226416     0.150944     0.003772     0.009436     0.009432

Gid R. Moore, dealing in his sole and separate property

   ENEXP    6/9/2011    412    129      0.226416     0.150944     0.003772     0.009436     0.009432

Ruby Lee Moore, aka Lee More, aka Ruby Lee Hancock, dealing in her sole and separate property

   ENEXP    6/9/2011    412    131      0.226416     0.150944     0.003772     0.009436     0.009432


EXHIBIT A

 

LESSOR

   LESSEE (1)    LEASE DATE    VOLUME    PAGE    OSO1     OSO2     Carl Lasner     Jason Roberts     LOWE  

Durward D. Hancock, aka Donald D. Hancock aka D.D. Hancock, dealing in his sole and separate property, joined pro forma by his wife, Joyce Hancock, aka Wanda Joyce Hancock, Lessor(s)

   ENEXP    6/9/2011    412    123      0.226416     0.150944     0.003772     0.009436     0.009432

Lit H. Moore, aka L. H. Moore, aka L.H. Moore, Jr., and wife, Ruby Lee Moore, aka Lee Moore

   ENEXP    6/9/2011    412    127      0.226416     0.150944     0.003772     0.009436     0.009432

Alan Mitchell West and Amy Leanne West

   ENEXP    5/26/2011    407 & 411    626 & 95      0.226416     0.150944     0.003772     0.009436     0.009432

Laura L. Harris

   ENEXP    6/13/2011    408    601      0.226416     0.150944     0.003772     0.009436     0.009432

Kimberly Ann Groux

   ENEXP    6/13/2011    408    842      0.226416     0.150944     0.003772     0.009436     0.009432

W. Page Harris III

   ENEXP    6/13/2011    408    603      0.226416     0.150944     0.003772     0.009436     0.009432

Muriel Joy Smith

   ENEXP    5/13/2011    410    901      0.226416     0.150944     0.003772     0.009436     0.009432

Charles A. Smith

   ENEXP    5/13/2011    410    65      0.226416     0.150944     0.003772     0.009436     0.009432

Shirley A. Smith

   ENEXP    5/13/2011    410    61      0.226416     0.150944     0.003772     0.009436     0.009432

Daniel Taylor and Linda Taylor

   ENEXP    5/13/2011    412    119      0.226416     0.150944     0.003772     0.009436     0.009432

 


EXHIBIT A

 

LESSOR

   LESSEE (1)    LEASE DATE    VOLUME    PAGE    OSO1     OSO2     Carl Lasner     Jason Roberts     LOWE  

Beulah Faye Nieman Trust, Charles A. Smith Trustee, UWO Charles Clyde Smith, deceased

   ENEXP    5/13/2011    410    63      0.226416     0.150944     0.003772     0.009436     0.009432

Yvonne Nettles McClung

   ENEXP    6/21/2011    414    794      0.226416     0.150944     0.003772     0.009436     0.009432

The Briley By-Pass Trust, Margaret Elizabeth Wills Briley, Trustee

   ENEXP    6/30/2011    413    592      0.226416     0.150944     0.003772     0.009436     0.009432

Kay Halamicek Lewis

   ENEXP    6/30/2011    410    53      0.226416     0.150944     0.003772     0.009436     0.009432

Lynn Carl Halamicek

   ENEXP    6/30/2011    410    57      0.226416     0.150944     0.003772     0.009436     0.009432

Raye Halamicek

   ENEXP    6/30/2011    410    59      0.226416     0.150944     0.003772     0.009436     0.009432

David Kinsey

   ENEXP    6/30/2011    410    55      0.226416     0.150944     0.003772     0.009436     0.009432

Wayland Baptist University

   ENEXP    6/27/2012    424    459      0.566040     0.377360     0.009430     0.023590     0.023580

Buckner Foundation, fromerly known as Buckner International

   ENEXP    6/26/2012    424    65      0.283020     0.188680     0.004715     0.011795     0.011790

Janet Collier Oldham and Cecil Dwight Oldham, husband and wife

   ENEXP    5/15/2009    422    678      0.566040     0.377360     0.009430     0.023590     0.023580

Jack Collier and Jerelyn Collier, husband and wife

   ENEXP    5/15/2009    422    676      0.566040     0.377360     0.009430     0.023590     0.023580

Ann King Spilger

   ENEXP    6/15/2012    424    461      0.566040     0.377360     0.009430     0.023590     0.023580