STATE OF ALABAMA
THIS AGREEMENT, entered into this the 29th day of May, 1999, by and between JOHN D. LANDOWNER and wife, MARY O. LANDOWNER, whose address is 234 Bottomland Place, Cottonview, Alabama 36701 (hereinafter called "Grantor" whether one or more) and DEEP POCKETS OIL COMPANY, whose address is 1133 Skyview Tower, Houston, Texas 77044 (hereinafter called "Grantee").
WHEREAS, Grantor represents that Grantor has the legal right to execute an Oil, Gas and Mineral Lease on the following described land in Dallas County, Alabama, to-wit:
AND WHEREAS, Grantee, under the terms and provisions hereinafter set out, desires to secure an exclusive option to acquire an Oil, Gas and Mineral lease on all or any portion of said lands;
Grantor, for the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, does hereby grant and convey unto Grantee, for a period of one (1) year from the date first above mentioned, the exclusive right and privilege of acquiring an Oil, Gas and Mineral Lease on the lands above described, together with all rights and privileges necessary, useful, and/or convenient in connection therewith. Said lease shall be in the same form as the lease attached hereto as Exhibit A. This option may be exercised, at Grantee's discretion, at any time prior to the expiration of this agreement, by giving written notice to Grantor designating the specific acreage to be included in said lease. Said lease shall become effective on the date Grantee elects to exercise this option.
Upon receipt of notice and selection of acreage, Grantor shall execute and deliver unto Grantee an Oil, Gas and Mineral lease of identical terms and conditions to the form attached hereto as Exhibit A. Upon approval of title as hereinafter provided, Grantee shall pay to Grantor a cash bonus of TEN DOLLARS ($10.00) and other valuable consideration, subject to the terms and conditions of said lease as stated therein. Grantee shall have thirty (30) days from the date the lease option is exercised to have its agents examine title. Grantor's title and leasing rights shall be subject to approval by Grantee's agents and the bonus consideration shall be due and payable on or before the end of such thirty (30) day period, subject to approval of title. In the event Grantor owns an abstract of title, Grantor agrees to supply Grantee a copy of the said abstract.
Any notice given to either party must be in writing and sent to the above address of each party. The rights and estate of any party hereto may be assigned from time to time in whole or in part. All of the covenants, obligations, and considerations of this OPTION TO EXERCISE OIL, GAS AND MINERAL LEASE shall extend to and be binding upon the parties hereto, their heirs, successors, assigns, and successive assigns. Upon assignment of this instrument, Grantee is released from all responsibilities and Grantee's successor or assigns shall assume all liabilities.
IN WITNESS WHEREOF, this instrument is executed on the date first above written.