Chancellor Group Inc. (OTCBB:CHAG) signed a term sheet to acquire 51% stake in Fuelist, LLC from Matthew Hamilton, Eric Maas and Thomas Rand-Nash for $0.43 million in cash and stock on August 15, 2013. As per the deal, Chancellor Group Inc will issue 2 million shares and pay $0.27 million in cash payable in 12 monthly installments of $0.02 million, beginning in August 2013. Under the terms of the term sheet, Matthew Hamilton, Eric Maas and Thomas Rand-Nash, the founders of Fuelist, will be entitled to additional cash and stock consideration in the event that Fuelist is sold for $50 million or more at any time during the next two years.

If Fuelist is sold with six months then Matthew Hamilton, Eric Maas and Thomas Rand-Nash will receive a bonus of 7.5 % of the full purchase price on closing of the sale plus an extra 1 million shares of Chancellor common stock, if within 12 months, a bonus of 5% and 500,000 shares, if within 18 months, 2.5% and 250,000 shares, if within 2 years, 2% and 150,000 shares. At the end of 2 years, all bonus payments are extinguished. The Board shall be comprised of four Directors, three of whom will be Matthew Hamilton, Eric Maas and Thomas Rand-Nash.

The fourth Director will be appointed by Chancellor.