Exhibit 10.1
LEASE AGREEMENT
This Agreement made and entered into this 19th day of April, 2007, by and
between Sovereign Oil, Inc. ("Sovereign Oil"), a Nevada corporation, and North
American Refining Co. ("North American Refining") (hereinafter referred to
collectively as "parties").
IT IS HEREBY AGREED:
1. TERM: The term of this Agreement shall be for a period of a ninety day trial
period ("Lease Period") commencing from the date of the execution of this
Agreement by both parties.
2. TERMS OF PAYMENT/LEASE VALUE AND CONSIDERATION: Sovereign Oil shall pay North
American Refining the following:
Lease payment: $10.00 per year and
Blending and Drying fees: Blending fees at $0.15 per gallon and drying fees at
$0.15 per gallon. No minimum fees required under this Agreement.
in consideration for use of the following located at 0000 Xxxx 00xx Xxxxxx,
XxXxxx, Xxxxxxxx 00000: a) the "blending building" and associated equipment b)
associated loading dock, and c) use of up to twenty (20) storage tanks for the
blending based on availability of oils and d) equipment associated with the
items above based on availability. It is agreed that Sovereign Oil will also
retain the right to use other incidentals associated with its business, such as
occasional use of the truck scale for weighting of loaded trucks, associated
pumps for storage tanks, and entry to the site for loading or unloading of
materials, entry/exit of work force, and /or servicing of equipment.
Sovereign Oil payment terms are cash or good Company Check, with the Lease
Payment being due upon the execution of this agreement to cover the ninety day
trial period and blending and drying fees are due and payable monthly on the
tenth day following the last day of each month for the previous month's
activity.
All blending and drying fees shall remain at the set price during the duration
of this Agreement, unless otherwise agreed upon by both parties in writing,
and/or in the event that Sovereign Oil requests additional storage, or site
usage above and beyond that specified within said Agreement. Should Sovereign
Oil request additional site space, North American Refining has agreed to make
every effort possible to provide additional space within reason.
3. LICENSES: Both parties shall maintain all licenses and permits as required
for their separate businesses.
4. WARRANTIES/RETENTION OF OWNERSHIP: Sovereign Oil represents and warrants that
it shall comply with applicable laws and regulations regarding any business
conducted at the North American Refining facility, and North American Refining
represents and warrants that the ownership of all equipment and/or product kept
at the North American Refining facility by Sovereign Oil shall be retained by
Sovereign Oil. Sovereign Oil is responsible for all product loading and
unloading in an environmentally sound and safe manner.
5. TERMINATION OF AGREEMENT: North American Refining shall have the right to
terminate this Agreement with 15 days written notice.
6. FORCE MAJEURE: Neither Sovereign Oil nor North American Refining shall be
construed to be in default of this Agreement to the extent either party fails to
perform its obligations or duties due to forces beyond its control, including
but not limited to, acts of nature, floods, fire, explosions, strikes or other
labor disturbances, failure in, or inability to obtain on reasonable terms raw
materials, finished products, transportation, storage and/or manufacturing
facilities, breakage or malfunction, governmental, or interruptions of
operations caused by acts of war or other government restraint, law or
regulation.
Should Sovereign Oil or North American Refining believe that a Force Majeure
conditions exists, the other party shall be notified within 5-business days of
such event. If such condition(s) arise that causes work stoppage, and/or reduced
site use, and cannot be remedied within forty-five (45) days from the date of
notice, the other party may terminate this Agreement by providing written notice
of termination.
7. LIABILITY. Each party acknowledges that it shall be responsible for any loss,
cost, damage, claim, or other charge that arises out of or is caused by the
actions of that Party or its employees, servants or agents. No Party shall be
liable for any loss, cost, damage, claim, or other charge that arises out of or
is caused by the actions of any other Party or its employees or agents. Joint
and several liability will not attach to the Parties; no Party is responsible
for the actions of any other Party, but is only responsible for their own
actions.
8. INDEMNIFICATION: Sovereign Oil hereby releases and agrees to defend,
indemnify and hold North American Refining including, but not limited to, its
officers, directors, partners, employees, servants, agents or other
representatives, harmless from any and all liabilities, damages, costs, expenses
(including without limitation, attorney's fees), losses, claims, demands, suits,
actions, judgments, fines or payments for or on account of any person or
Sovereign Oil itself, including its officers, directors, partners, employees,
servants, agents or other representatives arising out of or resulting from any
act or omission of Sovereign Oil, its officers, directors, partners, employees,
servants, agents or other representatives, in connection with this agreement
including personal injury (death or bodily injurty) to any person or damage to
any property including property of Sovereign Oil and/or North American Refining
and/or other parties, or violation of any law agency ruling, or regulations
arising out of or in any way connected with Sovereign Oil's operations under
this Agreement and any claim by Soveriegn Oil's customers.
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North American Refining hereby releases and agrees to defend, indemnify and hold
Sovereign Oil including, but not limited to, its officers, directors, partners,
employees, servants, agents or other representatives, harmless from any and all
liabilities, damages, costs, expenses (including without limitation, attorney's
fees), losses, claims, demands, suits, actions, judgments, fines or payments for
or on account of any person or North American Refining itself, including its
officers, directors, partners, employees, servants, agents or other
representatives arising out of or resulting from any act or omission of North
American Refining, its officers, directors, partners, employees, servants,
agents or other representatives, in connection with this agreement including
personal injury (death or bodily injury) to any person or damage to any property
including property of Sovereign Oil and/or North American Refining and/or other
parties, or violation of any law agency ruling, or regulations arising out of or
in any way connected with North American's operations under this Agreement or
operations at the facility located at 0000 Xxxx 00xx Xxxxxx, XxXxxx, Xxxxxxxx
00000 and any claim by North American's customers.
9. GENERAL:
a) The right of either party to require strict performance by the other party
hereunder shall not be affected by any previous waiver, forbearance or course of
dealing. All understandings and agreements relating to the subject matter
hereof, either oral or written, except insofar as incorporated in this
Agreement, are hereby cancelled and withdrawn. This Agreement constitutes the
entire agreement of the parties in respect to the subject matter hereof and may
be altered only in writing and signed by the parties hereto.
b) No employees, agents and/or representatives of the respective parties shall
be deemed to be the employees, agents and/or representatives of the other party.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
date first above written.
North American Refining Co.:
By: /s/ Xxxxx X. Xxxxxxxxx
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Name: Xxxxx X. Xxxxxxxxx
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Title: President
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Sovereign Oil Inc.:
By: /s/ Xxxxxxxxx X. XxXxxx
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Name: Xxxxxxxxx X. XxXxxx
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Title: President
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