**Exhibit      10.7**

***JOINT      OPERATING AGREEMENT***

***SAWN      LAKE AREA, ALBERTA***

| 1.     | INTERPRETATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| (a)    | In                  this Agreement, unless the context otherwise requires, the definitions                  contained in clause 101 of the Operating Procedure shall apply,                  and:                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | “Assignment                  Procedure” means the 1993 CAPL Assignment Procedure as completed and                  attached as Schedule “C”; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | “Effective                  Date” means December 9, 2004; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | “Joint                  Lands” means the lands described in Schedule “A” hereto, including where                  the context requires the petroleum substances within, upon or under                  such                  lands, or any interest or interests in such lands from time to                  time                  remaining subject to this Agreement; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | “Operating                  Procedure” means the Operating Procedure as completed and attached as                  Schedule “B”, together with the Accounting Procedure as completed and                  annexed thereto as Exhibit “A” |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | (v)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | “Operator”                  initially means Deep Well Oil & Gas, Inc., appointed as such in Clause                  5 of this Agreement; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | (vi)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | “Participating                  Interest” means the percentage interest of a party set forth in Clause 4                  of this Agreement; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | (vii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | “Title                  Document” means the document of title set forth and described in Schedule                  “A” hereto and any renewal, extension or replacement thereof, including                  any leases selected from a license or reservation, insofar as they                  relate                  in each case to the Joint Lands; and |
| (b)    | The                  headings of the clauses of this Agreement and the Schedules are                  inserted                  for convenience of reference only and shall not affect the meaning                  or                  construction thereof.                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| (c)    | Whenever                  the singular or masculine or neuter is used in this Agreement or                  the                  Schedules, the same shall be construed as meaning plural or feminine                  or                  body politic or corporate and vice versa as the context                  requires.                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| (d)    | In                  the event of any conflict or inconsistency between the provisions                  of this                  Agreement and those of any Schedule, the provisions of this Agreement                  shall prevail. If any term or condition of this Agreement conflicts                  with a                  term or condition of any Title Document, then such term or condition                  of                  such Title Document shall prevail and this Agreement shall be deemed                  to be                  amended accordingly with respect to such Title                  Document. |

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| 2.     | SCHEDULES                                                                                                                                                                          |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                               |   |
|   | The                  following Schedules are attached to and are incorporated into this                  Agreement:                                                                |
|   |                                                                                                                                                                               |   |
| (a)    | Schedule                  “A” which sets forth and describes the Joint Lands and the Title                  Document;                                                  |
|   |                                                                                                                                                                               |   |
| (b)    | Schedule                  “B” which is the Operating Procedure together with the Accounting                  Procedure annexed thereto as Exhibit “A”; and |
|   |                                                                                                                                                                               |   |
| (c)    | Schedule                  “C” which is the Assignment                  Procedure.                                                                                      |

| 3.     | TITLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   | No                  party warrants title to its Participating Interest in the Title                  Document                  or the Joint Lands but each party covenants that it has complied                  with the                  terms of the Title Document to the extent necessary to keep it                  in full                  force and effect, has good right, full power and authority to enter                  into                  this Agreement and represents that it has not as of the Effective                  Date of                  this Agreement received any notice of default in respect of any                  Title                  Document. |

| 4.     | PARTICIPATING                  INTERESTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | Except                  as otherwise provided in the Operating Procedure, the parties shall                  bear                  all costs and expenses paid or incurred under this Agreement and                  the                  Operating Procedure and shall own the Title Document the Joint                  Lands, all                  wells thereon and information obtained therefrom and the equipment                  pertaining thereto and the petroleum substances produced therefrom                  in                  accordance with the following respective Participating                  Interests: |

| Deep                    Well Oil & Gas, Inc. | 80% |
|--------------------------------------------------|-----|
| 1132559                    Alberta Ltd.          | 10% |
| Maxen                    Petroleum Inc.          | 10% |

| 5.     | APPOINTMENT                  OF OPERATOR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   | Deep                  Well Oil & Gas, Inc. is hereby appointed initial Operator and shall be                  responsible for the operation and development of the Joint Lands                  for the                  joint account and, subject to the terms and provisions of this                  Agreement                  and the Operating Procedure, shall have the sole and exclusive                  control and                  management of all operations conducted pursuant to this Agreement.                  Deep                  Well Oil & Gas, Inc. hereby accepts such appointment as Operator. The                  Operator shall account for the Goods and Services Tax (Canada),                  pursuant                  to Subsection 273 (1) of the Excise Tax Act, on all purchases and                  sales                  occurring on the Joint Lands. |

| 6.     | OPERATING                  PROCEDURE                                                                                                                                                                                                                                                                                                                                                               |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   | The                  parties agree that the Operating Procedure as amended by this Agreement                  governs the relationship of the parties hereto and applies to all                  operations conducted in respect of the exploration, development                  and                  maintenance of the Joint Lands for the production of petroleum                  substances. |

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| 7.     | INFORMATION                  TO JOINT-OPERATOR                                                                                                                                                                                                                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   | In                  addition to the information and data required to be provided to                  the                  Joint-Operator by the Operator pursuant to the Operating Procedure,                  the                  Operator, upon any well reaching total depth, shall supply the                  Joint-Operator with two (2) copies of a geological (factual) report                  containing: |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| (a)    | final                  summary of survey log formation tops;                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| (b)    | detailed                  drillstem test data, if applicable;                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| (c)    | lithologic                  core and sample report, if applicable; and                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| (d)    | core,                  water, gas or oil analyses, if                  applicable.                                                                                                                                                                                                                                                                                                                                   |

| 8.     | ENCUMBRANCES                  ON INTEREST                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|   | If                  the interest of any party in the Joint Lands is now or hereafter                  shall                  become encumbered by any security interest or by any royalty, production                  payment or other charge of a similar nature, other than the royalties                  set                  forth under the terms of the Title Document covering such lands                  or any                  compensatory royalty payments, then such security interest, additional                  royalty, production payment or charge shall be charged to and paid                  entirely by the party whose interest is or becomes thus encumbered.                  Any                  such encumbrance hereafter made or granted by a party shall be                  expressly                  made subject to the rights of the other parties hereunder. In no                  event                  shall a party hereto acquiring an interest in such lands by virtue                  of the                  operation of any provision of the body of this Agreement of the                  Operating                  Procedure (except Article XXIV of the Operating Procedure, where                  applicable) ever be required to assume any part of such interest,                  royalty,                  payment or charge. |

| 9.     | NEW                  ROYALTY APPLICATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | If                  any well on the Joint Lands is completed for the taking of production                  the                  Operator shall be responsible for making timely application, on                  behalf of                  the parties, pursuant to the Regulations, for new royalty status                  on any                  petroleum substances and for any royalty holiday or abatement that                  may be                  applicable to operations hereunder. |

| 10.    | INCENTIVE                  ASSISTANCE PROGRAM                                                                                                                                                                                                                       |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                |   |
|   | Incentives                  of any kind which are generated by operations on the Joint Lands                  by the                  parties shall be allocated and shared in accordance with each party’s                  participation in such operation. |

| 11.    | CONFIDENTIAL                  INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   | Notwithstanding                  the Operating Procedure, a party may release information obtained                  in the                  course of or as a result of operations on the Joint Lands to an                  industry                  scouting association in which the party is a participant, or to                  a lawful                  governmental authority to the extent required by law, or to a stock                  exchange on which a party’s shares are listed or traded to the extent                  required by the rules of such                  exchange. |

| 12.    | TERM                  OF AGREEMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|   | This                  Agreement is effective from the Effective Date and shall continue                  for the                  life of any Title Document in which the parties hold their interest                  as                  provided herein and any extensions or renewals of such Title                  Document whether by production or otherwise and until final settlement                  of                  accounts has been made among the                  parties. |

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| 13.    | ENTIRE                  AGREEMENT                                                                                                                                                                                                                                                                                     |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                  |   |
|   | The                  terms of this Agreement express and constitute the entire Agreement                  among                  the parties. No implied covenant or liability is created or shall                  arise by                  reason of this Agreement or anything herein                  contained. |

| 14.    | COVENANTS                  RUN WITH THE LAND                                                                                                                                              |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                      |   |
|   | All                  terms and provisions of this Agreement shall run with and be binding                  upon                  the Joint Lands during the term                  hereof. |

| 15.    | ENUREMENT                                                                                                                                                                                            |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                 |   |
|   | This                  Agreement shall be binding upon and enure to the benefit of the                  parties                  hereto and their respective successors and                  assigns. |

| 16.    | LAWS                  OF ALBERTA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | The                  Parties agree that this Agreement shall for all purposes be construed                  and                  interpreted according to the laws of the Province of Alberta, and                  that the                  courts having jurisdiction with respect to matters relating to                  this                  Agreement shall be the courts of said Province, to the jurisdiction                  of                  which courts the parties by their execution of this Agreement do                  hereby                  submit. |

| 17.    | COUNTERPART                  EXECUTION                                                                                                                                                                                                                            |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                              |   |
|   | This                  Agreement may be executed by the parties in counterpart and when                  each                  party has executed a counterpart, all counterparts taken together                  shall                  constitute one agreement. |

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|         |                                                      |                               |
|--------------|-----------------------------------------------------------|------------------------------------|
|         | DEEP                WELL OIL & GAS, INC.              |
|    |                                                 |                          |
|         | By:                                             | /s/ Steven              Gawne |
|         |                                                           |
|         | Per:Steven                Gawne, Director, President, CEO |

|         |                                             |                                |
|--------------|--------------------------------------------------|-------------------------------------|
|         | 1132559                ALBERTA LTD.              |
|    |                                        |                           |
|         | By:                                    | /s/ William              Tighe |
|         |                                                  |
|         | Per:Wm                Tighe, Director, President |

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* *

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| CLAUSE                  311 - Insurance Election:    | A___                 | B                  x   |
|------------------------------------------------------|----------------------|------------------------|
|                                                 |                 |                   |
| CLAUSE                  604 - Marketing Fee:         | A                  x | B                  ___ |
|                                                 |                 |                   |
| CLAUSE                  903 - Casing Point Election: | A                  x | B                  ___ |

| CLAUSE                  2401 - Disposition of Interests:   | A                  x | B                  ___ |
|------------------------------------------------------------|----------------------|------------------------|
|                                                       |                 |                   |
| CLAUSE                  2404 - Recognition upon Assignment | A                  x | B                  ___ |

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*The      Operator shall maintain detailed asset records of Controllable Material and      other tangible assets as it may deem necessary to prevent the potential loss      or      under utilization of assets.*

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| 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, it exercised, to elect                  a majority                  of the directors of the corporation; |
|                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|                                                                                                                                                                                                                                                               | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | a                  partnership is directly controlled by a corporation or other partnership                  if 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. |
|                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| Where                  two or more corporations or partnerships are affiliated at the                  same time                  with the same corporation or partnership, they shall be deemed                  to be                  Affiliates of each other. |
|                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| (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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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

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

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

| an                  Assignment and Novation Agreement.                                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                          |   |   |   |
| (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: |
|                                                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                          |   | a. | its                  intention to make the disposition; |
|                                                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                          |   | b. | a                  description of the Assigned Interest; and |
|                                                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                          |   | c. | the                  identity of the proposed Assignee, and |
|                                                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                          | (ii) | request                  Third Party’s written consent to such disposition, which consent shall not                  be unreasonably withheld. |
|                                                                                                                                                                                          |   |   |   |
| Consent                  of each Third Party shall be deemed if it fails to reply to Assignor                  within 20 days of receipt of the written                  request for consent. |
|                                                                                                                                                                                          |   |   |   |
| (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.                    of 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 11\, 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. |

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| 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 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. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| (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                                                                                                                                                                                                                                                                                                              |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                         |
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| 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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| 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): |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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. |

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

|   | (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: |   |
|     |   |     |   |   |
|     |   |     |   |   |

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