**Exhibit      10.2**

**ROYALTY      AGREEMENT**

**MIKWEC      ENERGY CANADA LTD.,**

**NEARSHORE      PETROLEUM CORPORATION,**

**WHEREAS**

**WHEREAS**

**AND      WHEREAS**

**NOW      THEREFORE THIS AGREEMENT WITNESSETH**

| **1.**                                                                                                                                                                                                                                | **DEFINITIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| In                this Agreement, including the recitals and the Schedules, unless                the                context otherwise requires, the following words shall have the meanings                ascribed thereto, namely: |
|                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (a)                                                                                                                                                                                                                                   | “Assignment                Procedure”shall                mean the 1993 CAPL Assignment Procedure attached hereto as Schedule                “B”;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (b)                                                                                                                                                                                                                                   | “Current                Market Value”shall                mean the price received by the Grantor at the point of measurement                for its                share of Petroleum Substances produced and marketed from or pursuant                to a                scheme of pooling or unitization allocated to the said Lands which                price                shall not be less than that which the Grantor would have received                at the                wellhead if acting as a reasonably prudent operator having regard                to the                current market prices, availability to market and economic conditions                of                the petroleum industry generally; |
|                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (c)                                                                                                                                                                                                                                   | “Effective                Date”shall                mean December 12, 2003;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| (d)                                                                                                                                                                                                                                   | “Grantor”shall                mean Mikwec Energy Canada Ltd.;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| (e)                                                                                                                                                                                      | “Gross                Overriding Royalty and/or Royalties”shall                mean a non-convertible gross overriding royalty of Six and One Half                Percent (6.5%) to Nearshore Petroleum Corporation of all Petroleum                Substances produced, saved and marketed from below the Surface from                the                said Lands;                                                                                                                                                      |
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|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (f)                                                                                                                                                                                      | “Lands”shall                mean any lands comprising the Petroleum and Natural Gas Licence(s),                Oil                Sands Leases, Petroleum and Natural Gas Lease(s)and any Oil Sands                Licence(s), which may be selected therefrom as described in the attached                Schedule “A”;                                                                                                                                                                                       |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (g)                                                                                                                                                                                      | “Lease(s)”                shall mean any Petroleum and/or Natural Gas Lease(s), Oil Sands Leases,                or                other title document(s) in or acquired in the area set forth in Schedule                “A” and any renewal or extensions thereof or substitution                therefore;                                                                                                                                                                                                 |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (h)                                                                                                                                                                                      | “Petroleum                Substances”shall                mean all petroleum, natural gas, heavy oil, related hydrocarbons,                sulphur                and every other substance an interest in which is granted under the                said                Lease(s) below the Surface;                                                                                                                                                                                                                       |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (i)                                                                                                                                                                                      | “Point                of Measurement”shall                mean the production tankage, in the case of crude oil, shall mean                the                point of delivery in the case of natural gas and shall mean the point                of                delivery for all other Petroleum Substances;                                                                                                                                                                                                          |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (j)                                                                                                                                                                                      | “Royalty                Owner”shall                mean Nearshore Petroleum Corporation;                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| **2.**                                                                                                                                                                                   | **GROSS                OVERRIDING ROYALTY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| (a)                                                                                                                                                                                      | Grantor                hereby grants and assigns Grantee a 6.5% gross overriding royalty                on the                leased substances on the interest which Grantor holds in the Lease(s).                It                is understood that the gross overriding royalty applies not only                against                the initial working interest of Grantor, but also to the interest                of any                third party which derives its interest from or through the                Grantor. |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (b)                                                                                                                                                                                      | The                gross overriding royalty shall be paid to Grantee during the term                of the                Lease(s) and any renewal or extension thereof.                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **3.**                                                                                                                                                                                   | **DEDUCTIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| The                said Royalty shall be paid on the current market value of the Petroleum                Substances without any deductions except the following,                namely: |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (a)                                                                                                                                                                                      | With                respect to crude oil, the said Royalty will bear its proportionate                share                of the actual costs of transportation to market connection, where                sales                are not made f.o.b. the tanks serving the said Lease(s), provided                that the                costs shall not exceed those permitted by the Crown in right of the                Province of Alberta.                                                                                      |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (b)                                                                                                                                                                                      | With                respect to natural gas, the cost of gathering, processing and transporting                the said Royalty share of the natural gas may be deducted from the                current                market value of the natural gas, provided:                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (i)                                                                                                                                                                                      | the                deduction of gathering, processing, and transportation costs shall                not                exceed those permitted by the Crown in right of the Province of Alberta                in                the calculation of Crown Royalty; and                                                                                                                                                                                                                                                                 |
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| (ii)                                                                                                                                                                                     | such                costs may only be deducted to the extent that they are actually incurred                and are reasonable and shall never be reduced below fifty (50%) percent                of                current market value.                                                                                                                                                                                                                                                                                             |
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| If                any Petroleum Substances are sold at less than current market value                in any                transactions (including those transactions which are not at arm’s-length                or any transactions involving any arrangement from which the Grantor                obtains a collateral advantage in consideration of the reduced price),                the                gross proceeds of the sale of such Petroleum Substances shall, for                the                purposes of calculating the said Royalty, not be less than the current                market value of those Petroleum Substances when produced from the                said                Lands as defined by clause 1(b)                hereof. |
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| Notwithstanding                anything to the contrary herein contained, the Grantor shall be entitled                to use, and as a consequence thereof the Grantor shall be free from                the                obligation of payment or delivery of the Grantee’s Royalty, such part of                the Petroleum Substances as is reasonably required for and used by                the                Grantor in its operations upon the Lands, including treating and                preparing                Petroleum Substances therefrom for market, but not including injection                thereof in connection with any secondary recovery                operations.                                                                                                                                                                                                                                                                                    |
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| **4.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **TAKING                IN KIND** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | The                Royalty Owner shall have the right to take in kind the Royalty Owner’s                share of Petroleum Substances. Such right may be exercised separately                with                respect to crude oil, condensate, liquefied petroleum gases and marketable                gas. In the case of crude oil condensate, such right shall only be                exercised on a minimum of sixty (60) days notice to the Grantor.                In the                case of liquefied petroleum gases such rights shall only be exercised                on                six (6) months notice to the Grantor. If the Royalty Owner, however,                signified in writing its consent to the sale of any of the Royalty                Owner’s                share of Petroleum Substances under a contract made by the Grantor                providing for a minimum term in excess of the said respective notice                periods, the Royalty Owner’s right to take in kind any petroleum substance                subject to such contract shall be suspended during the term of such                contract. The Royalty Owner may cease to take in kind any Petroleum                Substances upon giving the Grantor the same minimum notice as required                in                order to permit the Royalty Owner to take such Petroleum Substances                in                kind as aforesaid. The right to take in kind or to cease to take                in kind                may be exercised from time to time subject only to the provisions                of this                clause 4. |
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| (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | When                the Royalty Owner is taking in kind any of the Royalty Owner’s share of                the Petroleum Substances, the Royalty Owner shall have the right                to use                free of charge a proportionate share of the Grantor’s lease tankage and                storage facilities to store a maximum of ten (10) days production                of the                Royalty Owner’s share of crude oil and condensate and five (5) days                production of the Royalty Owner’s share of marketable gas which will be                delivered by the Grantor at the point of delivery downstream from                the                plant and to the purchase designated by the Royalty Owner, for the                Royalty                Owner’s account. |
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| **5.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **OPERATIONS                ON THE LANDS** |
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| No                royalty shall be payable on Petroleum Substances reasonably used                in                operations on the said Lands for the production, treating, processing                and                storing of Petroleum Substances on which the said Royalty is payable                to                the Royalty Owner hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| Any                overriding royalty exemption shall be restricted only to that portion                of                the production from a test well used as fuel for heaters, treaters,                compressors, separators, instruments and similar equipment required                to                produce Petroleum Substances from the test well spacing unit. Grantor                shall not be granted any overriding royalty exemption from production                of                Petroleum Substances used for reservoir injection or pressure maintenance,                secondary and heavy oil recoveries or upgrading schemes, or fuel                and/or                feedstock for any gas plant, refinery, satellite or                battery.                                                                                                                                                                                                      |
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| **6.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **RIGHT                TO POOL OR UNITIZE** |
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| Grantor                is hereby given the right and authority, at any time and from time                to                time, to pool the said Lands, or any portion thereof to form a production                spacing unit or unitize the said Lands or any portion thereof, or                any zone                or formation underlying the same, on such terms and conditions as                the                Grantor may determine from time to time. In the event of such pooling                or                unitization, Grantee’s gross overriding royalty shall be determined on                that portion of the production of the leased substances from the                area so                pooled or unitized which is allocated to that portion of the said                Lands                which is contributed to the pooled or unitized area pursuant to the                pooling or unitization Agreement                concerned. |

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| **7.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **RIGHT                TO COMMINGLE**              |
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| The                Grantor shall have the right to commingle Petroleum Substances produced                from the said Lands with Petroleum Substances produced from other                lands                provided methods acceptable to the Royalty Owner are used to determine                the                proper measurement of individual well production.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| Where                governmental regulations or orders require segregated production                tests of                individual wells at intervals not greater than two months, such tests                will                be deemed acceptable to the Royalty Owner under this clause and no                further                tests will be required.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| **8.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **DEVELOPMENT                OF LANDS**            |
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| Notwithstanding                any provision herein contained, the Grantor shall be under no obligation                to Grantee to develop the said Lands or any part thereof to produce                the                leased substances which may be within, upon or under the said                Lands.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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| **9.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **RENTALS,                RENEWALS AND ROYALTIES** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |
| Grantor                shall during the term of this Agreement make timely payment of all                rentals, renewals or extension fees, payment in lieu of actual production                and royalties becoming due or due in respect of the Lease(s), the                Lands or                the Petroleum Substances.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| **10.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **TAXES**                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |
| Each                party hereto shall be liable for its proportionate share of taxes                and                other charges levied or assessed against the Petroleum Substances,                and in                lieu of payment by the Grantee of its share thereof, Grantor may                make such                payment and deduct the amount thereof from any money payable by it                to the                Grantee.                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| **11.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **RIGHT                TO AUDIT**                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |
| Grantee,                upon notice in writing to Grantor, shall have the right to audit                the                Grantor’s accounts and records relating to the accounting hereunder for                any calendar year within the twelve (12) month period next following                the                end of such calendar year. Any payment made or statement rendered                by the                Grantor hereunder which is not disputed by the Royalty Owner on or                before                the last day of the twenty-fourth month following the month for which                such                statement or payment was rendered shall be deemed to have been correct.                Any cost to conduct such audit as granted herein shall be at the                sole                cost, risk and expense of the Royalty Owner. |
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| **12.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **ASSIGNMENT                OF ROYALTY**           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |
| Royalty                Owner may convey or assign any portion of its interest in the gross                overriding royalty payable under the Agreement but the Grantor shall                not                become liable to make payments in respect of the gross overriding                royalty                to more than one person. If the interest of Royalty Owner hereunder                is at                any time owned by more than one person, such persons shall nominate                one                person to act as a common trustee for receipt of monies payable hereunder                and to deal with the Grantor in respect of the said interests. In                such                event, Grantor shall thereafter make payments to and deal solely                with such                common trustee in respect of the said interest.  |
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| **13.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **ASSIGNMENT                OF WORKING INTEREST**  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |
| Grantor                may at any time, sell or otherwise dispose of all or any of its interest                in the said Lands but Grantor covenants that it shall cause any Assignee                or successor of the Grantor to deliver to Grantee a written and                enforceable undertaking to assume the obligations of Grantor under                this                Agreement insofar as they relate to such interest and the obligations                which accrue pursuant to the terms of this Agreement, whereupon the                Grantor shall be relieved of the obligation so assumed.                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |
| **14.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **BOOKS                AND ACCOUNTS**              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |
| Grantor                shall maintain complete and accurate records of the leased substances                produced, saved and marketed from the said Lands and of the monies                received from the sale thereof and shall furnish to Grantee with                each                payment of the gross overriding royalty hereunder a statement giving                sufficient detail for Grantee to ascertain the accuracy of the payment                of                the gross overriding royalty made                therewith.                                                                                                                                                                                                                                                                                                                                      |

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| **15.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **SALE                OF LEASED SUBSTANCES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| Any                sale of leased substances by Grantor shall include the gross overriding                royalty, which shall be sold at a price not less than that for which                Grantor is selling its share of production. Not later than the last                day of                each calendar month, Grantor shall pay to Grantee the proceeds of                the sale                of the gross overriding royalty during the preceding calendar month.                Grantee’s gross overriding royalty share of production shall bear its                proportionate share of the costs of any transportation services that                are                provided with respect thereto prior to the sale                thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| **16.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **FORCE                MAJEURE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| The                obligation of the parties, other than the obligations of the Grantor                to                the Lessor of the Lease(s), its successors and assigns, shall be                suspended                and there shall be no liability for damages during the time and to                the                extent that either party is prevented from complying with its obligations                under this Agreement in part or in whole by strikes, lockouts, acts                of God                or the Queen’s enemies, war, blockades, riots, laws, orders or regulations                of governmental bodies or agencies, unavoidable accidents, delays                in                transportation, inability to obtain necessary materials in the open                market, or any other cause, except financial, whether similar or                dissimilar to those specifically enumerated, beyond the reasonable                control                of the party affected. The party whose obligations under this Agreement                are suspended shall give notice, including reasonably full particulars,                of                the cause for such suspension, in writing or by telegraph to the                other                parties within a reasonable time after the occurrence thereof. The                performance of such obligations shall begin or be resumed within                a                reasonable time after such cause has been removed. |
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| **17.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **CONFIDENTIAL                INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Except                as provided herein, all data and information of whatsoever nature                acquired                by the parties from any operations pursuant to this Royalty Agreement                or                supplied by one party to the other pursuant hereto shall be for the                sole                and exclusive use and benefit of the parties hereto unless the parties                agree to the dissemination of such information or unless a party                thereto                is required to give such information to any governmental department,                body                or agency, or any recognized association within the petroleum industry,                of                which it is a member, that engages in the exchange of factual information                relating to the type of operations contemplated by this Royalty Agreement.                In no event shall information of any type of character relating to                wells                drilled on a confidential basis to the parties be                disclosed. |
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| (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | The                provisions of this clause shall not apply to disclosures to Affiliates                provided that such Affiliate agree to be bound by the terms of this                clause.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **18.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **DURATION                OF AGREEMENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| This                Agreement shall remain in full force and effect for so long as any                interest hereunder is retained by the parties or any assignees                thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **19.**                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **NOTICES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Whether                or not so stipulated herein, all notices, communications and statements                (hereinafter called “notices”) required or permitted hereunder shall be in                writing. Notices may be served:                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                          | personally,                by leaving them with the party on whom they are to be served at the                party’s address hereinafter given. Personally served notices shall be                deemed received by the addressees when actually delivered provided                such                delivery shall be during normal business hours; or                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                     | by                telegraph (or any other like method by which a written and recorded                message may be sent) directed to the party on whom they are to be                served                at that party’s address hereinafter given. Notices so served shall be                deemed received by the addressees thereof eight hours after the time                of                transmission or at the commencement of the next ensuing normal business                day, whichever is the later; or |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                          | by                mailing them first class registered post, postage prepaid to the                party on                whom they are to be served. Notices so served shall be deemed to                be                received by the addressees on the second day (excluding as the second                day,                Saturdays, Sundays and statutory holidays) following the mailing                thereof                in Canada.                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| The                addresses of each of the respective parties hereto shall be as                follows:                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Mikwec                Energy Canada Ltd.**                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **Suite                100, 10187 - 104th Street**                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Edmonton,                Alberta**                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **T5J                0Z9**                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Attn:                President**                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Nearshore                Petroleum Corporation**                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Suite                3175, 246 Stewart Green S. W.**                                                                                                                                                                                                                                                                                                                                                                                                       |
| **Calgary,                Alberta**                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **T3H                3C8**                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Attn:                President**                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Any                party hereto may change its said address by notice served as                aforesaid.                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **20.**                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **FURTHER                ASSURANCES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Each                of the parties hereto shall, from time to time, and at all times,                do such                further acts and deliver all such further assurances, deeds and documents                as shall be reasonably required in order to fully perform and carry                out                the terms of this Agreement.                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **21.**                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **ENTIRE                AGREEMENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| The                terms of this Agreement express and constitute the entire agreement                between the parties with respect to the matters herein addressed,                this                Agreement hereby wholly supersedes and replaces all prior agreements                and                representations, whether oral or in writing, between the Parties,                with                respect to the subject matter hereof. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **22.**                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **TIME                OF ESSENCE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Time                is of the essence of this                Agreement.                                                                                                                                                                                                                                                                                                                                                                                      |

----

| **23.**                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **WAIVER**                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                              |
| No                waiver by any party of any breach of any of the covenants, conditions                and                provisions herein contained shall be effective or be binding upon                any of                the parties unless the same shall be expressed in writing. Any waiver                so                expressed shall not limit or affect its right with respect to any                other or                future breach. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                              |
| **24.**                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **NO                AMENDMENT EXCEPT IN WRITING** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                              |
| No                amendment or variation of the provisions of this Agreement shall                be                binding upon any party unless it is evident in writing and executed                by all                parties.                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                              |
| **25.**                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **BINDS                SUCCESSORS AND ASSIGNS**   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                              |
| This                Agreement shall enure to the benefit of and be binding upon the parties                hereto, their successors and permitted assigns.                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                              |
| **26.**                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **COUNTERPART                EXECUTION**          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                              |
| This                Agreement may be executed in counterparts and when each such party                has                executed a counterpart, all counterparts taken together shall constitute                one agreement.                                                                                                                                                                                                                                 |

**IN      WITNESS WHEREOF**

|         |                                       |                               |
|--------------|--------------------------------------------|------------------------------------|
|         | **MIKWEC              ENERGY CANADA LTD.** |
|    |                                  |                          |
|         | By:                              | /s/ Victor              Davis |
|         |                                            |
|         | **Victor              Davis, President**   |
|         |                                             |                              |
|--------------|--------------------------------------------------|-----------------------------------|
|         | **NEARSHORE              PETROLEUM CORPORATION** |
|    |                                        |                         |
|         | By:                                    | /s/ Steve              Gawne |
|         |                                                  |
|         | **Steve              Gawne, President**          |

----

**SCHEDULE      ‘A’**

**INCLUSION      LANDS - RIGHTS**

----

**ASSIGNMENT      PROCEDURE**

**Attached      to and forming part of the Agreement dated the **
**day      of**
**A.D.**

**ARTICLE      1**

**DEFINITIONS**

| 1.01 | In                this Assignment Procedure, the following terms, when capitalized,                shall                have the meaning assigned to each                below: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | “Affiliate”                - for the purposes of this Assignment Procedure, means a corporation                or                partnership that is affiliated with the party in respect of which                the                expression is being applied, and, for the purpose of this definition                a                corporation or partnership is affiliated with another corporation                or                partnership if it directly or indirectly controls or is controlled                by that                other corporation or partnership, and for the purpose of determining                whether a corporation or partnership is so controlled, it shall be                deemed                that: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a                corporation is directly controlled by another corporation or partnership                if the shares of the corporation to which are attached more than                50% of                the votes that may be cast to elect directors of the corporation                are                beneficially owned by that other corporation or partnership and the                votes                attached to those shares are sufficient, if exercised, to elect a                majority                of the directors of the                corporation; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | a                partnership is directly controlled by a corporation or other partnership                it that corporation or partnership beneficially owns more than a                50%                interest in the partnership; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | a                corporation or partnership is indirectly controlled by another corporation                or partnership if control, as defined above, is exercised through                one or                more other corporations or                partnerships. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | “Agreement”                - means the agreement to which this Assignment Procedure is attached                and                made a part. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | “Assigned                Interest” - means the interest in the Agreement which is the subject of an                assignment and which is specified in a Notice of Assignment, but                shall not                include rights of the Assignor as                operator. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | “Assignee”                - means the entity named in a Notice of Assignment as the                Assignee. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (e) | “Assignment                and Novation Agreement” - means an agreement by all parties to the                Agreement and a party to whom an interest in the Agreement has been                assigned where: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                assignee assumes the duties and obligations of the assignor for the                Assigned Interest; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                assignor is released from its duties for the Assigned Interest;                and |
|--------|------|-------------------------------------------------------------------------------------------------------|

|   | (iii) | the                assignee is substituted as a party to the Agreement in the place                of the                assignor to the extent of the Assigned                Interest. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | “Assignor”                - means the party to the Agreement named in a Notice of Assignment                as the                Assignor. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | “Binding                Date” - means the first day of the second calendar month following the                month in which the Notice of Assignment is served in accordance with                Article IV below. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | “Notice                of Assignment” - means a notice in the form entitled Notice of Assignment                attached hereto as Appendix A. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | “Third                Party” - means the parties to the Agreement who are not the                Assignor. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (j) | “Transfer                Date” - means the effective date of the transfer of the Assigned Interest,                as specified in the Notice of                Assignment. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.02 | In                this Assignment Procedure, when a numbered clause or Article is referred                to, that clause or Article is of this Assignment                Procedure. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE        II**

**APPLICATION,      CONDITIONS AND FORM OF NOTICE**

| 2.01 | (a) | A                Notice of Assignment issued in accordance with this Assignment Procedure                shall be used in place of an Assignment and Novation Agreement for                assignments where the Agreement: |
|------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | requires                parties to use; or |
|--------|-----|--------------------------------------------|

|   | (ii) | entitles                parties to request; or |
|--------|------|------------------------------------------------|

|   | (iii) | is                silent as to the right of any party to                request; |
|--------|-------|----------------------------------------------------------------------------------|

|   | (b) | The                Notice of Assignment shall be in the form indicated in Appendix A                and                shall be executed by the Assignor and the                Assignee. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.02 | If                there is a conflict between the Assignment Procedure and the provisions                of                the Agreement, the Assignment Procedure shall                prevail. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.03 | If                the Agreement requires each Third Party’s consent to an assignment but                does not specify a time within which each Third Party shall respond                or                shall be deemed to have responded, then consent of each Third Party                to an                assignment shall be deemed if it fails to reply within 20 days of                receipt                of a written request for consent. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.04 | (a) | If                the Agreement is silent regarding rights of first refusal or consent                from                Third Party which relates to an Assigned Interest, then Assignor                shall, by                notice pursuant to Article IV: |
|------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | advise                Third Party of: |
|--------|-----|---------------------------------------|

|   | (ii) | request                Third Party’s written consent to such disposition, which consent shall not                be unreasonably withheld. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Clause                2.04 (a) shall not apply in the following instances,                namely: |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (i) | an                assignment made by way of security for present or future indebtedness,                or                liabilities (whether contingent, direct or indirect and whether financial                or otherwise), the issuance of the bonds or debentures of a corporation,                or the performance of the obligations of a guarantor under a guarantee,                provided that in the event the security is enforced by a sale or                foreclosure, Clause 2.04 (a) shall apply;                or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | an                assignment to an Affiliate, or in consequence of a merger or amalgamation                with another corporation or pursuant to an assignment made by a party                of                its entire interest in the Agreement to a corporation in return for                shares                in that corporation or to a registered partnership in return for                an                interest in that partnership; or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | an                assignment is required within the terms of the Agreement (such as,                but not                limited to, abandonment, forfeiture or                surrender). |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.05 | An                assignment of an Assigned Interest shall (subject to Clause 2.06)                be                effective against Third Party on the Binding Date                if: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all                prohibitions, limitations or conditions (such as, but not limited                to, a                right of first refusal or a requirement for prior consent from Third                Party) applying to the Assigned Interest have been complied with                and                satisfied pursuant to the Agreement, or waived by Third Party, including,                if applicable, compliance with Clauses 2.03 and 2.04;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | following                compliance with Clause 2.05(a), a Notice of Assignment is served                on Third                Party in accordance with Article                IV. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.06 | (a) | A                Third Party who objects to the Notice of Assignment on the basis                of a                failure to comply with Clause 2.05 may, prior to the Binding Date,                notify                (pursuant to Article IV) Assignor and Third Party of its                objections. |
|------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If                a notice of objection is served pursuant to Clause 2.06(a), the Notice                of                Assignment to which the notice of objection relates will be of no                effect. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If                a Third Party does not object pursuant to Clause 2.06(a), the Notice                of                Assignment will be effective for purposes of Article Ill, but each                Third                Party will retain all other rights or remedies arising as a consequence                of                the failure of Assignor to comply with Clause 2.05, including (without                limitation), rights to seek damages for breach of the Agreement and                rights                to seek specific performance of a right of first                refusal. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      III**

**ASSIGNMENT,      ASSUMPTION AND DISCHARGE BY NOTICE**

| 3.01 | If                a Notice of Assignment has become effective in accordance with Clauses                2.05 or 2.06, then Assignor, Assignee and Third Party shall have                agreed                that: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Subject                to Clause 3.01(d), Assignor and Assignee shall have acknowledged                and                represented that the Assignor has transferred, assigned and conveyed                the                Assigned Interest to Assignee as of the Transfer                Date. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Subject                to Clause 3.01(d), Assignee shall replace Assignor as a party to                the                Agreement with respect to the Assigned Interest on and after the                Transfer                Date. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Only                insofar as Third Party is concerned, notwithstanding the terms and                provisions in the “Transfer Agreement” referenced in the Notice of                Assignment: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Subject                to Clause 3.01(d), Assignee shall assume and be bound by, observe                and                perform all terms, obligations and provisions in the Agreement with                regard                to the Assigned Interest at all times on or after the Transfer Date;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Assignor                shall retain and be entitled to all rights, benefits and privileges                under                the Agreement with respect to the Assigned Interest at all times                prior to                the Transfer Date; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Subject                to Clause 3.01(d), Assignee shall assume and be entitled to all rights,                benefits and privileges under the Agreement with respect to the Assigned                Interest at all times on and after the Transfer                Date. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | In                all matters relating to the Assigned Interest subsequent to the Transfer                Date and prior to the Binding Date, Assignor acts as trustee for                and duly                authorized agent of Assignee, and Assignee, for the benefit of Third                Party, ratifies, adopts and confirms all acts or omissions of the                Assignor                in such capacity as trustee and agent. Third Party agrees to recognize                and                accept Assignor as trustee and agent for                Assignee. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | On                and after the Transfer Date, Third                Party: |
|--------|-----|----------------------------------------------------------------------------|

|   | (i) | releases                and discharges Assignor from the observance and performance of all                terms                and covenants of the Agreement and all obligations and liabilities                which                arise or occur on or after the Transfer Data under the Agreement                with                respect to the Assigned Interest;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | does                not release and discharge Assignor from any obligation or liability                which                had arisen or accrued prior to the Transfer Data or which does not                relate                to the Assigned Interest. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Subject                to the terms and provisions of the “Transfer Agreement” referenced in the                Notice of Assignment, Assignee on and after the Transfer                Date: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | releases                and discharges Assignor from the observance and performance of all                terms                and covenants of the Agreement and all obligations and liabilities                which                arise or occur on or after the Transfer Date under the Agreement                with                respect to the Assigned Interest;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | does                not release and discharge Assignor from any obligation or liability                which                had arisen or accrued prior to the Transfer Date or which does not                relate                to the Assigned Interest. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | The                address of Assignee for the purposes of the Agreement and the serving                of                notices under it shall be the address stated for Assignee in the                Notice of                Assignment. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | The                Agreement shall continue in full force and effect from and after                the                Transfer Date with Assignee made a party thereto to the extent of                the                Assigned Interest, subject to Clause 3.01(d). The Agreement is amended                as                necessary to give effect to the Notice of Assignment and, as so amended,                is ratified and confirmed by each                party. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.02 | In                no event shall errors, inaccuracies or misdescriptions in a Notice                of                Assignment have any effect on the Third Party or the interests of                Third                Party in the Agreement, even if Third Party has knowledge of an error,                inaccuracy or misdescription. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.03 | Assignor                and Assignee shall be solely responsible for any adjustment between                themselves with respect to the Assigned Interest as to revenues,                benefits,                costs, obligations or indemnities which accrue prior to Binding                Date. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      IV**

**SERVICE      OF NOTICES**

| 4.01 | All                notices and Notices of Assignment (herein called “notices”) required or                permitted by the terms of this Assignment Procedure shall be in writing,                subject to the provisions of this Article. This Article applies only                to                notices served pursuant to this Assignment Procedure. Any notice                to be                given under this Assignment Procedure shall be deemed to be served                properly if served in any of the following                modes: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | personally,                by delivering the notice to the party on whom it is to be served                at that                party’s address for service. Personally served notices shall be deemed                received by the addressee when actually delivered as aforesaid, if                such                delivery is during normal business hours, on any day other than a                Saturday, Sunday or statutory holiday. If a notice is not delivered                during                normal business hours, such notice shall be deemed to have been received                by such party at the commencement of the day next following the date                of                delivery, other than a Saturday, Sunday or statutory holiday;                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | by                telecopier or telex (or by any other like method by which a written                and                recorded message may be sent) directed to the party on whom it is                to be                served at that party’s address for service (however, an original executed                copy of a Notice of Assignment shall subsequently be provided to                all                addressees without delay). A notice so served shall be deemed received                by                the respective addressees: (i) when actually received by them, if                received                within the normal business hours on any day other than a Saturday,                Sunday                or statutory holiday; or (ii) at the commencement of the next ensuing                business day following transmission thereof if such notice is not                received                during such normal business hours;                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | by                mailing it first class (air mail if to or from a location outside                of                Canada) registered post, postage prepaid, directed to the party on                whom it                is to be served at that party’s address for service. Notices so served                shall be deemed to be received by the addressees at noon, local time,                on                the earlier of the actual date of receipt or the fourth (4th) day                (excluding Saturdays, Sundays and statutory holidays) following mailing.                However, if postal service is interrupted or operating with unusual                or                imminent delay, notice shall not be served by such means during such                interruption or period of delay. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.02  | The                addresses for service of a notice pursuant to this Assignment Procedure                shall be as set out (and amended from time to time) in the                Agreement. |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1. | Assignor                (specify proportions if more than one                Assignor): |
|----|-----------------------------------------------------------------------------------------|

| 2. | Assignee                (specify proportions if more than one Assignee and include address                for                service of notice pursuant to Master                Agreement): |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | Current                  Third Party to Master Agreement: |
|----|-----------------------------------------------------------|

| 4. | Assigned                  Interest: (Check A or B below): |
|----|-----------------------------------------------------------|

| 5. | Subject to Clause 7 of this Notice of Assignment,                Assignor and Assignee, in accordance with the terms of the Transfer                Agreement, acknowledge that: |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Assignor                has transferred and conveyed the Assigned Interest to the Assignee                as of                the Transfer Date; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Assignee                agrees to replace Assignor, on and after the Transfer Date, as a                party to                the Master Agreement with respect to the Assigned Interest;                and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Assignee                agrees to be bound by and observe all terms, obligations and provisions                in                the Master Agreement with respect to the Assigned Interest on and                after                the Transfer Date. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | Subject                to the terms and provisions of the Transfer Agreement, Assignee on                and                after the Transfer Date: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | discharges                and releases the Assignor from the observance and performance of                all terms                and covenants in the Master Agreement and any obligations and liabilities                which arise or occur under the Master Agreement with respect to the                Assigned Interest, and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | does                not release and discharge the Assignor from any obligation or liability                which had arisen or accrued prior to the Transfer Date or which does                not                relate to the Assigned Interest. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Assignee                and Assignor agree that in all matters relating to the Master Agreement                with respect to the Assigned Interest, subsequent to the Transfer                Date and                prior to the Binding Date, Assignor acts as trustee for and duly                authorized agent of the Assignee and Assignee, for the benefit of                the                Third Party, ratifies, adopts and confirms all acts or omissions                of the                Assignor in such capacity as trustee and                agent. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | This                Notice of Assignment shall become binding on all parties to the Master                Agreement on the first day of the second calendar month following                the                month this notice is served on Third Party in accordance with the                terms of                the Master Agreement (“Binding Date”). In addition, Assignor and Assignee                agree that they shall be solely responsible for any adjustment between                themselves with respect to the Assigned Interest as to revenues,                benefits,                costs, obligations or indemnities which accrue prior to the Binding                Date. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Assignor                represents and certifies that this Notice of Assignment and its service                are in compliance with all the terms and provisions of the Master                Agreement. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Assignor |   | Assignee |
|----------|--------|----------|
|     |   |     |   |   |
| Per:     |   |     | Per: |   |
|     |   |     |   |   |
| Per:     |   |     | Per: |   |
|     |   |     |   |   |
|     |   |     |   |   |
| Date:    |   |     | Date: |   |
|     |   |     |   |   |
|     |   |     |   |   |