EX-10.1 3 polar101.htm LETTER OF INTENT BY AND AMONGST POLAR PETROLEUM, (AK) CORP., AND DANIEL DONKEL AND SAM CADE DATED MAY 20, 2013. polar101.htm


Exhibit 10.1
 
Polar Petroleum Corp.
 
May 20th, 2013

DANIEL K. DONKEL
3000 N. Atlantic Ave. 6th Floor.
Daytona Beach, FL  32114
 
Re:  Letter of Intent

Dear Mr. Donkel and Mr. Cade:

This letter outlines certain basic, key business points of the proposed business transaction between the Seller of said property and Polar Petroleum Corp. (Purchaser), pursuant to which Seller will sell to Purchaser and Purchaser will purchase from Seller the property described herein.
 
 Seller: Daniel K. Donkel and Samuel H. Cade
   
 Purchaser: Polar Petroleum Corp.
   
 Property: North Point Thomson Leases (See Exhibit “A” for Lease  Descriptions)
   
 Use: To acquire lease acreage, drill and develop named leases & increase profit on all assets.
   
 Purchase Price:
The total purchase price is $1,100,000, together with retention by Donkel/Cadeof an aggregate 4.00% ORRI in each of the Point Thomson Leases. The$1,100,000 purchase price would be paid $100,000 in cash at closing, and the remaining $1,000,000 would be evidenced by a promissory note which provides for eight (8) quarterly payments of $125,000 plus interest at the rate of 0.30% per annum. There would be a grace period of 10 days for each installment payment before default in payment occurs, with a default interest rate of twelve percent (12%) per annum.
 
 
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 Earnest Money: Purchaser and Seller agree that no earnest monies are due on this sale.
   
 Closing:
Closing shall be at such time as agreed to by the parties hereto, but in no event later than 06/14/2013.
   
 Commission: Purchaser and Seller agree that no commissions are due on this sale.
   
 Contract:
Purchaser and Seller agree to use best efforts to negotiate a full contract containing all terms and conditions within fifteen (15) days from the date of this letter of intent or as soon thereafter as possible, but in no event later than the Closing .  This contract shall govern the sale/purchase described herein and as such must be acceptable to all parties.
 
 
Sincerely,
 

By: /s/ Daniel Walker                                                      
 
Polar Petroleum Corp.
 
 
 
The above terms are acceptable to the undersigned:
 
 
By:  /s/ Daniel K. Donkel                                                                                &           By:  /s/ Samuel H. Cade                                                      
 
            Daniel K. Donkel                                                                                                                      Samuel H. Cade
 

 
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Exhibit “A”
 
Project Descriptions

 
This document summarizes pertinent information with respect to the various Alaska Oil and Gas Leases owned by Daniel K. Donkel and Samuel H. Cade which they have designated the North Point Thomson Leases:
 
A.           NORTH POINT THOMSON (6 Leases)
 
    Lease Dates      
    ADL #  Tract #      Effective  Expiration     Acres  Royalty Rate  
             
 392123  85   01/01/13  12/31/22    1,625.06    12.50%  
             
 392127   102  01/01/13  12/31/22   1,431.02   12.50%    
             
 392128  103  01/01/13  12/31/22   2,047.61    12.50%  
             
 392132  113  01/01/13  12/31/22   2,151.93     12.50%  
             
 392133  114  01/01/13  12/31/22   2,378.83  12.50%  
             
 392134   115  01/01/13  12/31/22   2,556.45    12.50%  
             
 Total:        12,190.90       
 
B.           NORTH POINT THOMSON (6 Leases)   
 
    Lease Dates      
 ADL #  Tract #    Effective  Expiration  Acres  Royalty Rate  
             
 392124   88  03/01/13   02/28/23   911.60  16.67%  
             
 392125  94  03/01/13   02/28/23   1,373.25  12.50%  
             
 392126  95  03/01/13   02/28/23   1,313.02  16.67%  
             
 392129  104  03/01/13   02/28/23   1,321.26   16.67%  
             
 392130  105  03/01/13   02/28/23   1,300.29   16.67%  
             
 392131  106  03/01/13   02/28/23   1,252.00    16.67%  
             
 Total:         7,471.42     
             
             
 
 
 
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