LEEXUS OIL L.L.C. PARTICIPATION AGREEMENT
EXHIBIT
10.2
LEEXUS
OIL L.L.C.
NAME & ADDRESS OF
PARTICIPANT
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TEL/FAX NUMBER
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Enthoes
Technologies, Inc.
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(000)
000-0000
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Bankers
Hall West Tower
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(000)
000-0000
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Xxxxx
0000, 000 Xxxxx Xxxxxx XX
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Xxxxxxx,
XX X0X 0X0
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RE:
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Xxxxx
Xxx #1 Well
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XXX
COUNTY, TEXAS
Dear
Sir:
This will
confirm the agreement made and entered into this 9th ,
day, of September, 2008, by
and between the undersigned, LEEXUS OIL L.L.C., hereinafter called (“LEEXUS
OIL”), and you, hereinafter called (“PARTICIPANT (Non-Operator”), relating to
the captioned xxxxx and respective oil and gas leases, hereinafter called
(“XXXXX”).
LEEXUS
OIL represents that it is a working interest owner in the XXXXX, situated in XXX
County, Texas, and more specifically described on Exhibit “A” attached hereto
and by this reference made a part hereof.
PARTICIPANT
(NON-OPERATOR) desires to purchase from LEEXUS OIL a percentage working interest
in and to the XXXXX as subscribed herein.
That for
and in consideration of the mutual covenants herein contained, LEEXUS OIL and
PARTICIPANT (NON-OPERATOR) do hereby covenant and agree as follows:
1.
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INTEREST:
PARTICIPANT (NON-OPERATOR) WILL DESIGNATE THE PERCENTAGE WORKING INTEREST
BELOW THAT THEY ARE ACQUIRING IN AND TO THE
XXXXX.
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2.
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PAYMENT: Upon
acceptance of this agreement by PARTICIPANT, PARTICIPANT (NON-OPERATOR)
will remit payment representing consideration for the interest being
acquired by PARTICIPANT (NON-OPERATOR) to LEEXUS OIL in the AFE pro-rata
amount of $27,000.00 plus a prospect fee of $7,000.00 for a total amount
of $34,000.00.
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3.
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ASSIGNMENT:
Upon receipt of payment from PARTICIPANT (NON-OPERATOR) for the interest
being acquired herein, LEEXUS OIL will execute an ASSIGNMENT AND XXXX OF
SALE conveying said interest to PARTICIPANT. It is understood
and agreed by all parties hereto that the interests to be assigned in and
to the XXXXX shall be made on an “as-is, where-is” basis and LEEXUS OIL
expressly disclaims any warranty of any kind. LEEXUS OIL will
provide PARTICIPANT (NON-OPERATOR) a copy of the ASSIGNMENT AND XXXX OF
SALE for their review and consideration upon LEEXUS OIL prior to execution
of this Letter Agreement. Acceptance and execution of this
Letter Agreement by PARTICIPANT (NON-OPERATOR) shall be deemed acceptance
of the previously referenced ASSIGNMENT AND XXXX OF SALE
form.
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E-1
4.
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JOINT OPERATING
AGREEMENT: LEEXUS OIL and PARTICIPANT (NON-OPERATOR) agree to add,
amend, ratify the current Master Joint Operating Agreement (“Master JOA”)
with XXXXX Joint Accounting Procedure, originally signed and dated
September 9, 2008, and contemporaneously herewith, designating LEEXUS OIL
L.L.C. as Operator of the XXXXX. PARTICIPANT (NON-OPERATOR)
will be responsible and liable for paying their proportionate share of any
and all monthly operating costs, rework costs or any and all other costs
as may be incurred as a result of conducting operations in accordance with
the Master JOA as of the effective date and thereafter. In the
event of any conflict between the provisions of the Joint Operating and
this Letter Agreement, both parties agree the terms of this Letter
Agreement shall control.
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5.
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SECURITIES
DISCLAIMER: THE PARTIES UNDERSTAND AND AGREE THAT THE PROPOSED
VENTURE IS A HIGHLY SPECULATIVE ONE AND THAT NO REPRESENTATIONS ARE MADE
TO PARTICIPANT(S) AS TO THE SUCCESS OF THE VENTURE OR FINANCIAL GAIN.
PARTICIPANT (NON-OPERATOR) REPRESENTS AND WARRANTS THAT THEY ARE A
SOPHISTICATED OIL AND GAS INVESTOR. THE PARTIES AGREE AND
UNDERSTAND THIS IS NOT A REGISTERED SECURITIES
AGREEMENT.
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6.
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TAX STATUS: It
is understood that LEEXUS OIL and PARTICIPANT (NON-OPERATOR) are not
partners and each of them elects, under the authority of Section 761(a) of
the Internal Revenue Code of 1954, to be excluded from the application of
all the provisions of Subchapter K of Chapter 1 of Subtitle A
thereof.
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7.
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ENTIRE
AGREEMENT: This Participation Agreement, the Master JOA, and the
XXXXX Joint Accounting Procedure hereby incorporated by reference,
constitute the entire agreement by and between LEEXUS OIL and PARTICIPANT
(NON-OPERATOR) and may not be altered or amended except in writing signed
by both parties.
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8.
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GOVERNING LAW:
This Agreement shall be governed by the laws of the State of
Texas.
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9.
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WARRANTY
DISCLAIMER: LEEXUS OIL makes no warranty of title, express or
implied, with respect to the XXXXX or any leasehold or other right(s)
acquired hereunder. PARTICIPANT’S interest in and to the XXXXX
will be acquired on an “as-is, where-is”
basis.
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If the
terms and provisions of this agreement are in accordance with your
understanding, please signify your approval by executing and returning both
copies of this agreement with your check, and we will execute and return one
copy to you.
E-2
I have
read and fully understand this agreement, acknowledge this agreement is not a
registered security, and AGREE TO, ACCEPT AND APPROVE this agreement this __________ day of
____________________,
2008.
EFFECTIVE
DATE OF
ASSIGNMENT
AND XXXX OF SALE:
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8/8THS
WORKING
INTEREST:
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NET
REVENUE
INTEREST:
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September 9, 2008
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20%
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15%
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75%
- Net Revenue Basis
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ENTHEOS
TECHNOLOGIES, INC.
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WITNESS:
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By:
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Xxxxx
Xxxxxx, President
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Social
Security Number or tax Identification Number:
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LEEXUS
OIL L.L.C.
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WITNESS:
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By:
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Xxxx
Xxxxxx, Gen. Partner
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E-3
Exhibit
"A"
Attached
hereto and made a part of that certain Participation Agreement with LEEXUS
OIL/Xxxx Xxxxxx
FORM
P-12
Certificate
of Pooling Authority (attached hereto)
PLAT
80
acre plat (attached hereto)
E-4