OPTION AGREEMENT TO PURCHASE

OIL, NATURAL GAS AND ALL OTHERRELATED HYDROCARBONS

This Option Agreement (“Agreement”) is made this ____ day of September, 2015 (the “Effective Date”). ______, ______, with an address of ______

______(hereinafter referred to as “Optionor”) hereby agrees to grant to Sovereign Natural Resources, Inc., an IndianaCorporation with an address of P.O. Box 521031 Tulsa, OK 74152(“Optionee”) or to its assignee or nominee, an option (the “Option”) to purchase all of the oil, gas, and related and associated hydrocarbon rights and interests (together and collectively hereinafter referred to as the “Minerals”) in, on and underlying the property located in ______County, ______, as more particularly described on Exhibit “A”(the “Property”) attached hereto and made a part hereof, pursuant to the following terms and conditions.

NOW, THEREFORE,for good and valuable consideration, the receipt of sufficiency of which are hereby acknowledged, intending to be legally bound, the parties hereby agree as follows:

TERMS

  1. Term, Consideration and Purchase Price. For the consideration ofa non-refundable payment to Optionorin the amount ofOne Dollar ($1.00), payment and receipt of which is hereby acknowledged, Optionor hereby grants toOptionee, or its assigns, the exclusive option for a period ofNinety (90) days from the date hereof (the “Option Period”) to purchase any or all of the Minerals located in, on and under, and that may be produced from any strata or formation underlying the Property according to the purchase terms specifically described and set forth in Exhibit “B”, attached hereto and incorporated by reference into this Agreement. It is understood and acknowledged by Optionor that the rights hereby granted are an option and Optionee shall have no duty or obligation whatsoever to exercise said Option.
  2. Mineral Search. During the Option Period, Optionee may, at its discretion, perform or cause to be performed a title search of the Minerals and may further obtain a title opinion to determineOptionor’slegal right, title and interest in and to the Minerals (the “Mineral Search”). In the event that Optioneeelects to perform a Mineral Search, Optionor agrees to cooperate with Optionee and provide any and all information it may have readily available to help Optionee carry out its Mineral Search.
  3. Proportionate Reduction. If it is determined that Optionor owns an interest in the Minerals less thanthe entire andundivided fee simple therein, then the consideration provided for inExhibit “B” shall be paid to Optionor only in the proportion to which such interest bears to the whole and undivided fee simple.
  4. Exercise of Option, Payment, Closing and Possession. In the event Optionee exercises this Option to purchase the Minerals, or any part thereof, the sale and purchase of the Minerals (the “Closing”) shall occur no later than thirty (30) days from the date Seller has received Notice or such other time as the parties shall mutually agree in writing. The Closing shall take place at a location mutually agreeable to Optionee and Optionor. At the Closing, Seller shall execute and deliver a deed conveying any and all right, title and interest in and to the Minerals to Optionee, or its assigns, and Optionee shall deliver to Optionor the balance of the Purchase Price in cash, cashier's check, bank wire,or any other form of immediately available funds which shall be accepted by Optionor as full and adequate consideration for the sale and purchase of the Minerals.
  1. Representations and Warranties. In addition to any other representations and warranties set forth in this Agreement, Optionor makes the following additional representations and warranties to Optionee:

(A)There are no oil and gas leases in existence for the Minerals that have not otherwise been disclosed to Optionee.

(B)Optionor is not in bankruptcy, nor has there been any petition or insolvency proceedings filed by Optionor.

(C)There are no rights, options or other agreements of any kind to sell, convey or transfer any rights or interests in the Minerals.

(D)Optionor will not enter into any agreement during the Option Period with any other party concerning the Minerals other than pursuant to this Agreement.

  1. No Recording of Agreement. This Agreement shall not be recorded in any public office.
  1. Legal Representation. Optionor understands that by executing this Agreement, it is conveying legal rights to its Minerals, as the case may be, subject to the terms and conditions of this Agreement, and Optionor acknowledges and agrees that the opportunity to seek and obtain legal counsel prior to executing this Agreement has been afforded.
  2. Validity; Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, administrators, executors, legal representatives,successors and assigns.
  3. Assignment. Optionee shall have the right to assign and transfer this Agreement in whole or in part, and Optionor waives notice of any assignment or transfer. Optionor agrees that when and if this Agreement is assigned, Optionee shall have no further obligations or liabilities hereunder, as to those rights so assigned or transferred. The Optionor further grants to the Optionee, their successors or assigns, for the protection ofOptionee’s interest hereunder, the right to pay and satisfy any claim or lien against the Optionor’s interest in the Property and/or Minerals, and thereupon to become subrogated to the rights of such claimant or lien holder, and the right to direct the consideration, or any part thereof, set forth on Exhibit “B” to apply on the payment of any liens on the Property or Minerals.
  4. Applicable Law. This Agreement shall be interpreted and construed in accordance with the laws of the State of Oklahoma.
  5. Modifications. This Agreement shall only be modified or amended in writing, signed by both Optionee and Optionor. In no event shall any verbal or oral agreements or modifications with respect to the terms and conditions of this Agreement be valid or enforceable.
  6. Entire Agreement. This Agreement and Exhibit “A”and Exhibit “B” attached hereto and made a part of this Agreement contain the entire understanding between the parties with respect to the subject matter hereof and there are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise of any kind whatsoever concerning the transaction contemplated hereby.

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IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this Option Agreement as of the date and year first above written.

Optionor hereby approves the above Option Agreement and terms and provisions set forth on Exhibit “A” and Exhibit “B” on the date and year first written above.

WITNESSOPTIONOR:

______

______

Optionee approves the above Option Agreement and terms and provisions set forth on Exhibit “A” and Exhibit “B” on the date and year first written above.

ATTESTOPTIONEE:: Sovereign Natural Resources, Inc.

By:______

Name:______

Title: Member

Schedule of Attachments:

Exhibit A:Description of Property; Description of Minerals

Exhibit B:Purchase and Sale Terms

EXHIBIT A

Description of Property:

The description of the Property containing the Minerals subject to this Option Agreement is as follows:

Names(s) of Record on Deed:

Acreage:

Tax Parcel Identification Number(s):

Description of Minerals:

The description of the Minerals subject to purchase pursuant to the Agreement is as follows:

All right, title and interest owned by Seller in and to all of

the oil, gas (including, but not limited to: methane, gob gas,

occluded methane/natural gas and all associated natural gas) and

their liquid or gaseous constituents, whether hydrocarbon or non-

hydrocarbon (but excluding all coal and coalbed methane), located

on, in, or under, and that may be produced from, the Property.

ACKNOWLEDGEMENT BY SELLER

We, ______, the individuals identified as the Seller in this Agreement acknowledge to having reviewed the Description of Property and Description of Minerals contained in this Exhibit “A”and hereby confirm that they are a true and correct description of Property and Minerals that are the subject of the Agreement.

CONFIDENTIAL INFORMATION

EXHIBIT B

PURCHASE TERMS

The purchase price payable by Sovereign Natural Resources, Inc. to Seller for purchase of Said Minerals will be $______, per net mineral acre.If Grantor owns an interest in the oil, gas, or other hydrocarbons in or under the Subject Property less than the entire fee simple estate, then the Purchase Price shall be reduced proportionately.

Total acres of minerals being sold by seller:

ACKNOWLEDGEMENT BY OPTIONOR

We, ______,the individuals identified as the Optionor in this Option Agreement acknowledge to having reviewed the Purchase and Sale Terms contained in this Exhibit “B” and hereby confirm that they are a true and correct.