EXHIBIT 10.3
ADMINISTRATIVE SERVICES AGREEMENT
Synergy Resources Inc. ("Synergy") and Petroleum Management, LLC
("Petromanagement") agree as follows:
1. Petromanagement will provide the following to Synergy:
A. Office space and equipment yard at 00000 Xxxxxxx 00, Xxxxxxxxxxx,
Xxxxxxxx 00000, Colorado for $10,000 per month.
B. Secretarial service, word processing, answering service, office
equipment, telephone, fax, email and office supplies for $10,000 per
month. Postage and courier charges will be billed separately at cost.
C. Additional employees as may be needed in-house such as a landmen,
accountants and operations personnel, whose salary, compensation and
benefits shall be charged to Synergy at cost.
D. Geologists, engineers, landmen and other independent contractor oil
and gas professionals on an as needed basis. The charge for providing
the services of such professionals will be the actual cost billed by
such professionals to Petromanagement or billed to Synergy.
2. All amounts payable to Petromanagement by Synergy will be due within 30
days of invoicing by Petromanagement.
3. Either party may terminate this Agreement on 30 days notice to the other
party. If this Agreement is terminated by Synergy prior to June 30, 2008
and for reasons other than the breach of any provisions of this Agreement
by Petromanagement, then Synergy will pay Petromanagement a termination fee
equal to that paid pursuant to Section 1 of this Agreement for the prior 60
days.
4. Any dispute relating to this Agreement will be settled through binding
arbitration in Denver, Colorado in accordance with the commercial
arbitration rules of the American Arbitration Association.
DATED: June 11, 2008
AGREED TO AND ACCEPTED:
SYNERGY RESOURCES, INC.
By /s/ Xx Xxxxxxxx
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Xx Xxxxxxxx, President
PETROLEUM MANAGEMENT, LLC
By /s/ Xxxxxxx X. Xxxxx, Xx.
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Authorized Officer
