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Exhibit 10.21
 EMPLOYMENT AGREEMENT
 BETWEEN
 TETON ENERGY CORPORATION
 And
 Dominic J. Bazile II
(Executive)
 THIS EMPLOYMENT AGREEMENT
 W I T N E S S E T H:




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DEFINITIONS
 Definitions.
 of
               POSITION & DUTIES
 Employment.
 Title




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Term.
 Duties and Responsibilities
 Performance of Duties
      Representations and Warranties of the Executive with Respect to Conflicts, Past
Employers and Corporate Opportunities




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provided, further
 Activities and Interests with Companies Doing Business with the Company Schedule A
 Other Business Opportunities
 Reporting Location
 Other
  COMPENSATION
 Compensation




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Base Salary
 Cash Bonus
 Equity-Based Compensation
   Participation In Benefit Plans.
 Retirement Plans.
 Taxes.
 Life Insurance
 Employee Benefit Plans and Insurance




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Vacation.
   Paid Holidays
 Reimbursement of Expenses
 Relocation Expenses
 Housing and Temporary Lodging
 Severance Benefit




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Payroll Procedures and Policies
  TERMINATION OF EMPLOYMENT
 Death
 Disability th provided, that
 Termination by Company.




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Termination by Executive




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Termination without Prejudice
 Notice of Termination provided,
however
 Date of Termination provided, however
 Obligations of the Company upon Termination.
 Good Reason or During the Window Period; Other Than for
Cause, Death or Disability




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sum
of and
      Death
 Disability
 Cause; Other than for Good Reason or During
the Window Period




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Continuation of Payments During Disputes
   The Wall Street Journal Exhibit A
  INDEMNIFICATION
 Indemnification Exhibit A
  CONFIDENTIALITY
 Confidentially; Non-Competition; and Non-Solicitation.
 Confidentiality




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Non-Competition provided, however
 Non-Solicitation
  CHANGE OF CONTROL
 Certain
Definitions




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Change of Control Effective Date
 Change of Control Period provided, however
 Change of Control
 provided,
however
 provided, however




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MISCELLANEOUS
 Miscellaneous.
 Benefit
 Governing Law provided, however
 Counterparts
 Headings
 Severability
 Construction
 Equitable Remedies




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Attorneys Fees.
 No Waiver
 Remedies Cumulative
 Amendment
 Entire Contract
 Survival
 Savings Clause Exhibit A
 Modifications and Waivers Exhibit A
 Notices.




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If to Executive
 
  th
  No Limitation
 Non-Binding Mediation
 IN
WITNESS WHEREOF
 Teton Energy Corporation
    

    EXECUTIVEBy:
/s/ Karl F. Arleth
    
By:
    /s/ Dominic J.Bazile IIName: Karl F. Arleth
    

    Name: Dominic J. Bazile IITitle: President & CEO




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Schedule A
 Outside Activities
Dominic J. Bazile II
 Date Hiredor
    
    
    
    
    
    
    
    
    
    
    Annual TimeCompany or
    
    Nature of
    
    
    Commenced
    
    
    
    
    
    
    
    
    
    
    Commitment, (timeProject Name
    
    Business
    
    
    Involvement
    
    
    Position
    
    
    Compensation
    
    
    away from office)
 February 1, 2007
 Initials: Executive:
    
    
    
    Company:
 [Executive and Company agree that there are no outside activities]




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Exhibit A
Indemnification Agreement




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Exhibit B
 Form of Restricted Stock Agreement