Exhibit 10.16



 





Exhibit 10.16




JOINT SERVICES AGREEMENT




THIS AGREEMENT made effective as of the 1st day of January, 2006




BETWEEN:


JMG EXPLORATION, INC., a corporation

having an office in Calgary, Alberta (“JMG”)




OF THE FIRST PART



- and -



JED OIL INC., a corporation having an

office in Calgary, Alberta (“JED”)




OF THE SECOND PART



WHEREAS the parties desire to enter into this Agreement to provide for any services provided by one
party to the other party;



NOW THEREFORE for consideration of $10.00 paid by each party to the other party and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
agree as follows:




1. Services



Either party hereto may request the other party to provide services to it on a temporary basis
which the requesting party does not have the current staff or equipment to provide itself, and the
party so requested may agree to provide such services. The details for the provision of services
hereunder, including the timing and duration, and the personnel and equipment required, shall be
mutually agreed upon between the party requesting the services and the party agreeing to provide
the services.




2. Consideration



The consideration payable for services provided hereunder shall be the actual grossed-up cost of
the personnel and equipment provided, for the period provided, as determined by the Chief Financial
Officer of the party providing the services, acting reasonably.




3. Term and Termination



This Agreement shall commence effective January 1, 2006 and may be terminated by either party at
any time, without notice with respect to any future request for services, and, with respect to
services actually being provided at the date of termination, with notice of 30 days or such lesser
time as any outstanding services are actually completed.




4. Amendments



Any amendments to this Agreement shall be in writing and executed by both parties hereto.




5. Assignment






 









 







This Agreement and the rights and obligations of the parties hereunder is personal to such
parties and neither party may assign its interest in this Agreement or any portion thereof without
the prior written consent of the other party, which consent may be arbitrarily withheld.




6. Arbitration



The parties may mutually agree with respect to disputes hereunder to submit to either binding or
non-binding arbitration in such jurisdiction and pursuant to such terms and conditions as the
parties may agree.




7. Jurisdiction



This Agreement shall be governed by and construed in accordance with the laws of the Province of
Alberta and, subject to clause 6, the parties irrevocably attorn to the jurisdiction of the courts
of the Province of Alberta with respect to disputes arising hereunder.




8. Enurement



This Agreement shall enure to the benefit of and be binding upon the parties hereto, their
respective successors at law and permitted assigns.



IN WITNESS WHEREOF the parties have executed and delivered this Agreement effective as of the date
first written above.




	 	 	 	 	 	 	 
	 

	 	JMG EXPLORATION, INC.
	 	 	 	JED OIL INC.
	 
	Per:

	 	/s/ Herman S. Hartley
	 	Per:	 	/s/
Thomas J. Jacobsen 
	 

	 	Herman S. Hartley, President/CEO
	 	 	 	Thomas J. Jacobsen, CEO
	 
	Per:

	 	/s/ Joanne R. Finnerty
	 	Per:	 	/s/
Bruce Stewart

	 

	 	Joanne R. Finnerty, Secretary/CFO
	 	 	 	Bruce Stewart, CFO