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AGREEMENT TERMINATING
ASSET PURCHASE AGREEMENT

Agreement made and entered into by and between Force Fuels, Inc. and Pemco, LLC.

RECITALS:

WHEREAS, Force Fuels, Inc. and Pemco, LLC entered into that certain ASSET
PURCHASE AGREEMENT dated April 23, 2010 (hereafter the “Agreement”);

AND WHEREAS the Agreement has been partially preformed; Force Fuels, Inc. paid
to Pemco, LLC the sum of $100,000.00, and has also paid $45,000.00 on the
balance due to Pemco, LLC of $900,000.00, the balance due being secured through
a collateralized non-interest bearing Promissory Note payable in equal monthly
installments of $100,000.00 beginning May 23, 2010; Pemco, LLC has assigned four
(4) oil and gas leases described in Exhibit “A” attached hereto (hereafter
collectively referred to as the “leases”) to Force Fuels, Inc.; Pemco, LLC  has
also advanced funds on behalf of Force Fuels, Inc. arising from and relating to
the operation of the leases; Pemco, LLC has also provided services to Force
Fuels, Inc. in connection with the operation of the leases;

AND WHEREAS, the Agreement also provided at Section 2.2.5 that Force Fuels, Inc.
would enter into a separate Agreement with Energy Recovery Systems (“ERS”) to
pay it the sum of $500,000.00, but the separate Agreement between Force Fuels,
Inc. and ERS has not been finalized and is deemed null and void;

AND WHEREAS Force Fuels, Inc. and Pemco, LLC desire to terminate the Agreement,
and to make alternate provisions with respect to the operation and development
of the leases;

 
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NOW THEREFORE, in consideration of the mutual agreements, covenants, releases
and other provisions hereafter set forth, the sufficiency of which is by each
party hereby acknowledged, it is agreed as follows:

1.          Termination of Prior Agreement.  The parties hereby mutually
agree  that the Agreement dated April 23, 2010 is hereby terminated and shall be
of no further force and effect, subject only to the provisions hereafter set
forth.

2.           Assignment of Interest in Existing Leases.  Force Fuels, Inc.
hereby agrees to assign to Pemco, LLC one-half (½) of the entire working
interest which Force Fuels, Inc. currently owns in the leases, being a 50%
working or operating interest, and a net revenue interest of .40625.

3.           Release of Debt.  Pemco, LLC does hereby release any and
all  Remaining debt owed to it by Force Fuels, Inc. in exchange for the 50%
working interest in the leases above set forth.

4.           Joint Operating Agreement.  The parties hereto agree that the
leases shall be operated pursuant to the terms of a mutually acceptable
operating agreement between Force Fuels, Inc. and Pemco, LLC, collectively the
owners, and Pemco, LLC, or its designee, as the operator.

For a period of thirty (30) days after execution of this agreement, each party
agrees:

 
A.
That it will not assign, mortgage, encumber or otherwise transfer, directly or
indirectly, its interest in the leases to any other party;

 
B.
That it will not initiate any action in partition or other judicial proceeding
to compel sale or purchase of the other parties’ interest.

 
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In the event the parties are unable to negotiate a mutually satisfactory
operating agreement within a reasonable time, not exceeding thirty (30) days
from the date hereof, the provisions of this Agreement shall expire and be of no
further force and effect.

5.           Effective Time.  The assignment of the leases to Pemco, LLC shall
be effective as 12:01 a.m. on March 31, 2011.  At or as soon as practical after
the effective time, the parties shall determine the amount of oil in storage
tanks (above the pipeline connections), and the volumes of gas produced by Force
Fuels, Inc. prior to the effective time.  Force Fuels, Inc. shall be entitled to
receive the proceeds of sale of oil and gas produced prior to the effective
time; the proceeds of sale of oil or gas produced after the effective time shall
be divided between the parties hereto based upon their respective ownership
interests; and proration of proceeds shall be established on this basis.

6.           Taxes and Liabilities.  All taxes, including ad valorem personal
property  Tax shall be prorated between Force Fuels, Inc. and Pemco, LLC as of
the effective  time.

7.           Liabilities and Operating Expenses.  Force Fuels, Inc. shall pay,
perform, fulfill and discharge all claims, costs, expenses, liabilities and
obligations relating to its ownership and operation of the leases prior to the
effective time.

8.           Agreement with ERS.  Pemco, LLC will hold Force Fuels, Inc.
harmless and indemnify Force Fuels, Inc. from and against any liabilities of
ERS.

9.           Mutual Release.  Except as specifically set forth above, Force
Fuels, Inc.  and Pemco, LLC do hereby mutually release the other from all
remaining terms and provisions of the Agreement previously entered into.

 
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In witness whereof, the parties have executed this agreement the day and year
set forth opposite their respective signatures below.

 
Pemco, LLC
       
Dated:                       , 2011
By:       /s/                              
   
Rick Coody, Member
         
Force Fuels, Inc.
       
Dated:                       , 2011
By:       /s/                           
 
 
Thomas Hemingway, CEO and President
       

 
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EXHIBIT “A”

LESSOR:
Dennis L. Bayless and Debora C. Bayless, husband and wife
LESSEE:
Pemco, LLC
DATE:
April 26, 2010
DESCRIPTION:
SW/4 SE/4 of Sec. 35, T33S, R13; N/2 NE/4 a/k/a Lots 1 & 2; SE/4 NE/4 of Sec. 2,
T34S, R13E, all in Montgomery County, Kansas
RECORDED:
Book 590, Page 97
   
LESSOR:
Dennis L. Bayless and Debora C. Bayless, husband and wife
LESSEE:
Pemco, LLC
DATE:
April 26, 2010
DESCRIPTION:
NW/4 NW/4 a/k/a Lot 4, Sec. 1, T34S, R13E, Montgomery County, Kansas
RECORDED:
Book 590, Page 98
   
LESSOR:
Dennis L. Bayless and Debora C. Bayless, husband and wife
LESSEE:
Pemco, LLC
DATE:
April 26, 2010
DESCRIPTION:
S/2 SW/4 of Sec. 35, T33S, R13E, Montgomery County, Kansas
RECORDED:
Book 590, Page 99
   
LESSOR:
Dennis L. Bayless and Debora C. Bayless, husband and wife
LESSEE:
Pemco, LLC
DATE:
April 26, 2010
DESCRIPTION:
NW/4 of Sec. 2, T34S, R13E, Montgomery County, Kansas
RECORDED:
Book 590, Page 100
   

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