JOINT VENTURE AGREEMENT

Contract Categories: Mergers & Acquisitions - Joint Venture Agreements
EX-10.2 3 fofu8k20110330ex10-2.htm JOINT VENTURE AGREEMENT fofu8k20110330ex10-2.htm

JOINT VENTURE AGREEMENT

This Agreement is made and entered into by and between Force Fuels, Inc., a Nevada Corporation, or a wholly owned subsidiary and PEMCO LLC, an Oklahoma Limited Liability Company, sometimes referred to as the parties.

RECITALS:

 WHEREAS, both parties agree to work together in the development of oil and gas leases located in Kansas and Oklahoma under the following terms;

AND WHEREAS, Force Fuels, inc. will use its best efforts to raise funds for the agreed to future development plans:

AND WHEREAS, PEMCO LLC, will use its best efforts to execute the agreed to future development plans,

NOW THEREFORE, each party hereby acknowledges and agrees as follows;

 
1.
Force Fuels, Inc. and PEMCO LLC each own 50% of the working interest in the four leases known as the Mann, Mann AB, Bayless, and Doe Brook described in Exhibit “A”.

 
2.
That the oil and gas production revenue generated from the four existing jointly owned leases will be divided equally between the two parties after operating expenses.

 
3.
That any new development to the four jointly owned leases will be funded by Forces Fuels, Inc. and the execution plan will be performed by PEMCO LLC.

 
4.
That revenue generated from the new development plan will be divided 75% to Force Fuels, Inc and 25% to PEMCO LLC. after the terms of the financing have been satisfied.

 
5.
That both parties will use their best efforts to develop the additional oil and gas leases currently in the Joint Venture plan listed as Ball, East Ball, Kelso, Moore, Smith, Bain, Clark, Thorne, and Pendleton.

 
6.
  That revenue generated from the new development plan for the nine additional leases will be divided 75% to Force Fuels, Inc and 25% to PEMCO LLC. after the terms of the financing have been satisfied.

 
7.
That both parties agree to further expand the development plans into Oklahoma under the general structure described in this agreement.
 
 
 
 

In witness whereof, the parties have executed this agreement the day and year set forth opposite their respective signatures below.



 
PEMCO, LLC
   
Dated: __________________, 2011
By:                   /s/                       
 
Rick Coody, Member
   
   
 
Force Fuels, Inc.
   
Dated: __________________, 2011
By:                   /s/                       
 
Thomas Hemingway, CEO and President/CEO









 
 
 

EXHIBIT “A”

LESSOR:
Dennis L. Bayless and Debora C. Bayless, husband and wife
LESSEE:
Pemco, LLC
DATE:
April 26, 2010
DESCRIPTION:
SW/4 SE/4 of Sec. 35, T33S, R13; N/2 NE/4 a/k/a Lots 1 & 2; SE/4 NE/4 of Sec. 2, T34S, R13E, all in Montgomery County, Kansas
RECORDED:
Book 590, Page 97
   
LESSOR:
Dennis L. Bayless and Debora C. Bayless, husband and wife
LESSEE:
Pemco, LLC
DATE:
April 26, 2010
DESCRIPTION:
NW/4 NW/4 a/k/a Lot 4, Sec. 1, T34S, R13E, Montgomery County, Kansas
RECORDED:
Book 590, Page 98
   
LESSOR:
Dennis L. Bayless and Debora C. Bayless, husband and wife
LESSEE:
Pemco, LLC
DATE:
April 26, 2010
DESCRIPTION:
S/2 SW/4 of Sec. 35, T33S, R13E, Montgomery County, Kansas
RECORDED:
Book 590, Page 99
   
LESSOR:
Dennis L. Bayless and Debora C. Bayless, husband and wife
LESSEE:
Pemco, LLC
DATE:
April 26, 2010
DESCRIPTION:
NW/4 of Sec. 2, T34S, R13E, Montgomery County, Kansas
RECORDED:
Book 590, Page 100