BUSINESS PARTNERSHIP TERM SHEET By and among, Petrol Oil & gas, inc., JOHN HAAS, MARK HAAS, and
BUSINESS PARTNERSHIP TERM SHEET
By and among,
Petrol Oil & gas, inc.,
XXXX XXXX,
XXXX XXXX, and
X.X. XXXXXXXX
WHEREAS, Petrol Oil & Gas, Inc., a Nevada corporation ("Petrol"), is an oil and gas exploration and development company. Its primary business objective is to produce economic quantities of natural gas from buried coal seams, denoted as coal-bed methane (CBM);
WHEREAS, Xxxx Xxxx, Xxxx Xxxx and X.X. Xxxxxxxx, all individuals, each have certain experience and expertise in the oil and gas exploration and development fields;
WHEREAS, Xxxx Xxxx, Xxxx Xxxx and X.X. Xxxxxxxx, individually or jointly, control approximately 10,000 acres of leased mineral rights in Xxxxxx and Xxxxxxx Counties, Kansas:
WHEREAS, Petrol desires access to the approximate 10,000 acres of leased mineral rights to evaluate and explore for CBM gas production;
WHEREAS, Xxxx Xxxx, Xxxx Xxxx and X.X. Xxxxxxxx have agreed to grant Petrol access to the 10,000 acres of leased mineral rights in the manner and upon the terms and conditions hereinafter set forth.
NOW THEREFORE, in consideration of the above recitals and the conditions hereinafter set forth, the parties agree as follows:
A. PETROL RECEIVES:
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6 month access to the 10,000 acres of leased mineral rights in Xxxxxx and Xxxxxxx Counties, Kansas for the purpose of evaluating and exploring for CBM gas production. The access will be subject to renewal by mutual agreement between the parties every 6 months.
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Xxxx Xxxx shall agree to join the board of directors of Petrol and provide his experience of drilling over a thousand xxxxx in Kansas and Oklahoma to Petrol.
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Xxxx Xxxx will become a project manager and consultant for Petrol on the evaluation and exploration of the 10,000 acres, as well as for Xxxxxx's other exploration and development projects.
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X.X. Xxxxxxxx will provide consulting support to Xxxxxx's lease/land acquisition projects in coordination with other Petrol consultants.
X. Xxxx Xxxx, Xxxx Xxxx and X.X. Xxxxxxxx RECEIVE:
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As full and complete consideration for granting the access to the 10,000 acres and providing consultation services to Petrol, as described herein, each of Xxxx Xxxx, Xxxx Xxxx and X.X. Xxxxxxxx shall be issued warrants to purchase restricted shares of Petrol's common stock as follows:
600,000 restricted shares at $1.20 per share for a period of 2.5 years (for a collective total of 1,800,000 shares)
400,000 restricted shares at $1.50 per share for a period of 2.5 years (for a collective total of 1,200,000 shares)
300,000 restricted shares at $2.00 per share for a period of 3 years (for a collective total of 900,000 shares)
THIS TERM SHEET IS THE ENTIRE AGREEMENT BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND IS INTENDED TO BE BINDING ON BOTH PARTIES UNTIL A LONG-FORM AGREEMENT IS ENTERED INTO BY THE PARTIES.
Dated January 15, 2004.
PETROL OIL & GAS, INC.
By: /s/ Xxxx Xxxxxxxx
Xxxx Xxxxxxxx, President
Xxxx xxxx
/s/ Xxxx Xxxx
Xxxx Xxxx
/s/ Xxxx Xxxx
X.X. Xxxxxxxx
/s/ X.X. Xxxxxxxx
