Laredo Oil Signs Agreements with SORC
SORC is a wholly owned subsidiary of Alleghany Corporation.
As consideration for the licenses to SORC, Laredo Oil will receive an interest in SORC net profits as defined in the agreement which will range from 17.25 percent to 19.99 percent.
Laredo has agreed that a portion of the Royalty equal to at least 2.25 percent of the net profits shall be used to fund a long term incentive plan for the benefit of Laredo employees, as determined by Laredo Oil's board of directors.
The agreements stipulate that Laredo Oil and Mark See, Laredo Chairman and CEO, will provide management and expertise through exclusive, perpetual license agreements and a management services agreement (MSA) with SORC.
Mark See, chairman and CEO of Laredo Oil, said: â€œThis transaction with Alleghany is the next milestone in our overall strategy and is indicative of the potential of our Underground Gravity Drainage business model. It will provide us with the funding necessary to immediately acquire and fully develop targeted oil reservoirs using the UGD recovery method.â€
Mr Mark See will act as the CEO of SORC pursuant to the MSA; he and other members of management will spend substantially all of their time and effort in fulfilling the terms of the MSA whereby they use their best efforts to evaluate, acquire, develop and recover crude oil from fields conducive to the UGD oil recovery method.
The terms of the MSA stipulate that Laredo will provide the services of key employees, including Mark See, in exchange for monthly and quarterly service fees.
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