EXHIBIT 10.7
AGREEMENT
This Agreement made and entered into this 12th day of July, 2004 by and
between Lexington Oil & Gas Ltd., Co., an Oklahoma LLC corporation, hereinafter
referred to as LOG and Lexington Resources, Inc. a publicly traded incorporate
company in the State of Nevada hereinafter referred to as LRI and Xxxxxxx X.
Xxxxxxxxx, hereinafter referred to as DH.
Whereas LOG is a legal corporation within the state of Oklahoma
primarily functioning as an oil and gas exploration and development corporation.
Whereas DH is an experienced oil and gas professional with more than 25
years in the oil and gas business putting together business deals and overseeing
actual drilling operations and the completion and management of xxxxx.
Whereas LOG needs the assistance of a seasoned oil and gas professional
and DH is willing to help LOG in the management and growth of its assets.
NOW THEREFORE, for and in consideration of the mutual covenants
hereinafter set forth, the parties hereto agree as follows:
1. That the hereinabove mentioned recitals shall be considered as part
of the covenants of this Agreement.
2. That DH will continue to assist LOG in its efforts to acquire and
its lawful interest in all properties and projects undertaken by LOG. In
addition, DH will oversee the drilling operations of all xxxxx to which LOG is
named as the operator and, if applicable, any completion and daily operations
management of the producing xxxxx. Included in such oversight shall be producing
and filing all the necessary paperwork with all applicable governmental
oversight agencies.
3. That LOG has acquired and continues to acquire additional oil and
gas leases and/or producing xxxxx to which DH will assist in the timely
development, either through turning the deals for a profit or assisting in the
drilling exploration for oil and gas or enhancement and management of the
producing xxxxx.
4. That DH is given the authority to sign all necessary paperwork to
accomplish the goals of the covenants. However, no expenditures or encumbrances
are permitted without the express authorization of a corporate officer of LOG.
5. That DH shall be compensated for such services pursuant to the
following terms:
a.) Monthly compensation will be $7,500 per month plus reasonable
expenses to carry out his duties effective April, 2004.
b.) DH will be granted a 10% (ten percent) carried working interest
in all xxxxx drilled Lexington Oil & Gas Ltd. Co., and further,
will have the right to purchase an additional 5% (five percent)
working interest in all xxxxx drilled by Lexington Oil & Gas Ltd.
Co. Funds for this participation are to be paid prior to the
commencement of drilling said xxxxx.
c.) In addition, to options currently held by DH in Lexington
Resources, Inc.(50,000 options at $0.50 per share), a further
200,000 options will be granted at $3.00 per share.
6. That this agreement shall be in force and effect until terminated by
ninety days written notice by either party for any reason.
In witness whereof, the parties have hereunto set their hands this 12th
day of July, 2004.
LEXINGTON OIL & GAS LTD., CO XXXXXXX X. XXXXXXXXX
/s/ XXXXXXX X. XXXXXXXXX
________________________
LEXINGTON RESOURCES, INC.
/s/ XXXXX XXXXXX
_________________
Xxxxx Xxxxxx
President
