10-Baggas Factory 10

[Diversified]

$DKGR ready for drilling OIL $$$$

"Conditions of Sale. As a condition of sale with respect to the Glover lease, seller must
receive in consideration a total of $500,000 by the end of a two year period in addition to
any additional funds invested by seller. The Seller shall receive all revenues generated
from the property until the acquisition price has been paid or an alternative agreement
has been reached. The $500,000 owed to the seller will not be paid by funds obtained
from the working interest that the seller is otherwise entitled to. Buyer shall then receive
a 100% working interest and have title to the lease. Seller agrees that full amount of
monies that were previously invested in the wells on the Glover lease by Drake will be
forwarded to the operator and be used towards the development of another lease once
seller liquidates the oil held in the storage tanks.
With respect to all the other leases with the Glover lease being the exception, once the
leases, in which the buyer has invested into, pays seller out a working interest dollar
amount based on the formula below, Buyer will be entitled to 100% working interest and
a full title transfer. However, seller will be entitled to 12.5 % of the gross revenues that
shall be registered in PA with the refinery which will directly pay the seller from
the purchase value of oil over a three-year period from the date that seller is
completely paid out based on the formula below for existing wells. In addition, seller will
receive 12.5% of gross revenues that shall be registered in PA with the refinery
which will directly pay the seller from the purchase value of oil over a three-year
period on all new wells drilled.
Formula:
$250k multiplied by n/281 wells
281 wells are the total wells not including the ones on the Glover lease
"n" represents the number of wells on each lease.
As an example, with regards to the Myers lease, once Seller receives $10,676 in
working interest, Buyer will be entitled to a 100% working interest and title to the
lease with the NRI obligations discussed above."