Document:

Exhibit 10.2

    Exhibit
      10.2

     

    Project
      I - Rig 17

    

    CONSULTING
      AGREEMENT

    

    

    THIS
      CONSULTING AGREEMENT ("Agreement") is made as of this 25th day of August, 2006,
      between Second Bridge LLC (hereinafter referred to as the "Consulting Firm"),
      and Blast Energy Services, Inc. (hereinafter
      referred to as the "Company"). The Consulting Firm and the Company previously
      executed a Consulting Agreement for the transition services provided therein.
      This Agreement is a separate consulting service agreement for the services
      as
      set forth herein.

    

    1. Consulting.
      

    The
      Company hereby employs Consulting Firm, and Consulting Firm hereby accepts
      engagement with the Company upon the terms and conditions herein set forth.
      This
      Agreement contains the entirety of the terms and conditions of Consulting Firm's
      engagement with the Company for the construction of Rig 17, as defined herein.
      Except as specifically provided for herein, no other document, handbook, manual
      or oral agreements or promises shall constitute this engagement contract between
      Consulting Firm and the Company.

    

    2. Term.
      

    The
      term
      of this Agreement shall begin on or before September 1, 2006 and shall continue
      until terminated as hereinafter provided. Unless earlier terminated as provided
      in this Agreement, this Agreement continues for a maximum period of six (6)
      months from the Notice Date, defined below. 

    

    3.
       Employee
      Benefit Plans and Compensation.

    

    (a)
      The
      Company shall have no obligation to the Consulting Firm regarding employee
      benefit plans of any kind. 

    

    (b)
      As
      compensation for said Consulting Services, Consulting Firm shall receive Total
      Compensation defined as follows: 

    

    The
      Total Compensation under this Agreement shall be nine-hundred thousand (900,000)
      shares of Common Stock in the Company restricted only for purposes of
      registration by the company as provided in Exhibit A. The share certificate
      shall be delivered on or before September 1, 2006.

    

    
      	 	
              1.

            	
              The
                Total Compensation provisions set forth in Section 3 of this Agreement
                shall survive the termination of this Agreement until completely
                fulfilled
                by the Company and subject to Section 4,
                below.

            

    

    

    (c)
      Right
      of First Refusal: As
      incentive to the Company to provide this Agreement, the Consulting Firm hereby
      grants to the Company a right of first refusal to enter into an agreement with
      the Consulting Firm to purchase any rotary land drilling rig it may construct
      or
      own, for the period of time between August 16, 2006 and August 16, 2008. The
      Consulting Firm will send Notice to the Company in writing that the Consulting
      Firm is offering one or more rotary land

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    drilling
      rig(s) for sale and the price the Company shall pay. The Company shall have
      five
      (5) days to decide to accept the Consulting Firm’s offer and to notify the
      Consulting Firm in writing delivered by facsimile with an original sent to
      the
      Consulting Firm in hard copy that it accepts the offer of the Consulting Firm
      to
      sell such rotary land drilling rig(s). In the event the Company does elect
      to
      purchase such rig(s) as set forth in the Consulting Firm’s Notice, described
      above, the Company shall immediately pay to the Consulting Firm one-half of
      the
      Purchase Price as set forth in the Notice which shall be non-refundable upon
      receipt by the Consulting Firm and the Company shall have thirty (30) days
      to
      close such purchase or it shall have no further rights under this right of
      first
      refusal and shall forfeit the one-half of the Purchase Price paid to the
      Consulting Firm.

    

    4. Termination.
      

    After
      delivery of the Total Compensation, all compensation received by the Consulting
      Firm prior to termination as defined in Section 2, shall be retained by the
      Consulting Firm without regard to any claims by the Company and the Company
      retains no rights to off-set or withhold any amounts due to the Consulting
      Firm
      under this Agreement. 

    

    5.
       NO
      WARRANTY OF CONSULTING FIRM AND THE RESPONSIBLILITES OF THE
      COMPANY

    

    Consulting
      Firm makes no warranty or guarantee of any kind,
      as it
      is only providing consulting services under this Agreement, the construction
      of
      Rig 17 remains in complete ownership and control of the Company at all times
      including through the time the Total Compensation is received by the Consulting
      Firm and this Agreement terminates. The Consulting Firm makes no implied
      warranty of any kind and the Consulting Firm does not intend to perform any
      construction services nor be obligated in any manner to provide the materials
      and labor required for the construction of Rig 17. The Company shall bear all
      responsibility and warrants that it has acquired and maintains the proper
      authority from all federal, state and local governmental agencies which require
      any such authority; and that the Company is qualified to do business in the
      State of Oklahoma; and that it has obtained all permits, licenses and other
      necessary documents to perform it’s obligations and to perform under the terms
      of this Agreement. The Company shall remain completely and totally responsible
      for the Company’s employees and that they are in compliance with and are
      eligible to be employed under all federal, state and local employment statutes
      and regulations, and the Company agrees that The Company is solely responsible
      for ensuring such compliance and eligibility. 

    

    7. Project
      Specifications. The
      Company intends to use market conditions and contracting capabilities to
      determine final Rig 17 specifications, which are subject to change based upon
      contracting capabilities and customer requests.

    

    8.
       Indemnification.
      The
      Company hereby extends to the Consulting Firm indemnification regarding all
      of
      its work for the Company. The Consulting Firm’s Members, officers, employees,
      and agents shall be entitled to be indemnified by the Company to the fullest
      extent provided under the law, and shall be entitled to advance of expenses,
      including attorney fees, in the defense or prosecution of a claim against the
      Consulting Firm or such person in such person’s

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    capacity
      as member, officer, employee, or agent of the Consulting Firm from any claim
      arising from, or related in any manner to, its work for the Company under this
      Agreement. Indemnification offered hereunder shall survive the termination
      of
      this Agreement for two (2) years after the date of termination.

    

    9. Insurance.
      The
      Company shall, during the Term, have and maintain in force the following
      insurance coverage:

    

    
      	 	
              (a)

            	
              Worker’s
                Compensation Insurance, including with a minimum limit sufficient
                to cover
                the statutory requirements of such country, state or territory. Such
                insurance must name Consulting Firm as an additional insured with
                respect
                to its legal liability arising from the Company’s acts or
                omissions

            

    

    

    
      	 	
              (b)

            	
              Commercial
                General Liability Insurance, including Contractual Liability, Products,
                Completed Operations Liability and Personal Injury, and Broad Form
                Property Damage Liability coverage for damages to any property with
                a
                minimum combined single limit of $1,000,000 per occurrence and $5,000,000
                umbrella excess liability. Such insurance must name Consulting Firm
                as an
                additional insured with respect to its legal liability arising from
                the
                Company’s acts or omissions.

            

    

    

    
      	 	
              (c)

            	
              “All
                Risk” Property insurance covering not less than the full replacement cost
                of the Company’s personal property while on or at the Company’s work
                location.

            

    

    

    The
      foregoing insurance coverage shall be primary and non-contributing with respect
      to any other insurance or self-insurance which may be maintained by the
      Consulting Firm. When requested, The Company shall cause its insurers to issue
      certificates of insurance evidencing that the coverage required under this
      Agreement are maintained in force and that not less than thirty (30) calendar
      days written notice shall be given to the Consulting Firm prior to any
      materially adverse modification, cancellation or non-renewal of the policies.
      

    

    10. Notice.
      

    Unless
      otherwise provided in this Agreement, any notice, direction or other advice
      or
      communication required or permitted to be given hereunder shall, except as
      provided herein, be in writing and shall be delivered, personally, by facsimile
      or mailed by registered or certified mail, return receipt requested, addressed
      to the Company and Consulting Firm at the addresses set forth below, or at
      such
      other address as such party may designate to the other in writing.

    

    If
      to
      Company: David M. Adams President and Co-CEO

    14550
      Torrey Chase Blvd, Suite 330

    Houston,
      Texas, 77014

    Facsimile:
      281-453-2899

     

    If
      to
      Consulting Firm: Dirk
      O’Hara, Manager

    1126
      Rambling Oaks Drive

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Norman,
      Oklahoma 73072.

    Facsimile:
      405-447-9351

    

    Either
      party may designate a different address or facsimile number by written notice
      to
      the other. 

    

    11. Waiver
      or Breach.
      

    The
      waiver of either the Company or Consulting Firm of a breach of any provision
      of
      this Agreement shall not operate or be construed as a waiver of any subsequent
      breach by either Consulting Firm or the Company. This Agreement sets forth
      the
      entire understanding of the parties with respect to the subject matter
      herein.

    

    12. Binding
      Effect.
      

    This
      Agreement shall be binding upon and shall inure to the benefit of both the
      Company and the Consulting Firm and their respective successors, heirs and
      legal
      representatives, but neither this Agreement nor any rights hereunder may be
      assigned by Consulting Firm or the Company without the consent in writing of
      the
      other Party with such consent not unreasonably withheld.

    

    13. Amendments.
      

    Except
      as
      provided specifically above, no amendments, modifications or variations of
      the
      terms and conditions of this Agreement shall be valid unless in writing and
      signed by all of the parties. 

    

    14. Choice
      of Law.
      

    This
      Agreement shall be governed by and construed under the laws of the State of
      Oklahoma. In the event of any breach or threatened breach of this Agreement,
      Consulting Firm and the Company irrevocably submit and consent to the
      jurisdiction of a court of competent jurisdiction in Cleveland County, Oklahoma,
      and irrevocably agree that venue for any action or proceeding shall be in the
      County of Cleveland, State of Oklahoma and any higher courts within the State
      of
      Oklahoma. Both parties waive any objection, including, but not limited to,
      Federal diversity jurisdiction, to the jurisdiction of these courts or to venue
      in Cleveland County, State of Oklahoma.

    

    15. Severability.
      

    If
      any
      provision of this Agreement shall be held, declared or pronounced void,
      voidable, invalid, unenforceable or inoperative for any reason, by any court
      of
      competent jurisdiction, government authority or otherwise, such holding,
      declaration or pronouncement, shall not adversely affect any other provision
      of
      this Agreement, but shall otherwise remain in full force and effect.
      Notwithstanding the foregoing sentence, the provisions of this Agreement that
      specifically state set forth their survival of the termination of this Agreement
      may not be severed or waived by any act of a person, court, or termination
      of
      this Agreement as those provisions are independently negotiated and fully agreed
      to by the Parties hereto.

    

    16. No
      Third Party Benefit.
      

    None
      of
      the provisions of this Agreement shall be for the benefit of or enforceable
      by
      any creditors of the Company or the Consulting Firm. Furthermore, this Agreement
      is made solely and specifically for the benefit of the parties hereto, their
      respective successors and assigns subject to the express provisions hereof
      relating to successors and assigns, and no other person,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    individual
      or entity, governmental body, taxation authority, or their heirs, executors,
      administrators, legal representatives, successors, and assigns shall have any
      rights, interests, or claims hereunder or be entitled to any benefits under
      or
      on account of this agreement as a third-party beneficiary or
      otherwise.

    

    17. Assignment.
      

    The
      Parties may assign this Agreement or the proceeds due hereunder with notice
      and
      the written consent of the other Party which consent shall not be unreasonably
      withheld.

    

    

    18. Entire
      Agreement.
      

    This
      Agreement sets forth the entire agreement of the parties hereto, and all prior
      discussions, oral or written and any such agreements are merged
      herein.

    

    19. Counterparts.
      This
      Agreement may be executed in any number of counterparts and each of such
      counterparts shall for all proposes be deemed to be an original, and such
      counterparts shall together constitute one and the same instrument.

    (Rest
      of Page Intentionally Blank)

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first set forth above.

    

    Blast
      Energy Services, Inc., a California Corporation (The Company
      herein)

    

    
      	
              By:

            	
              /s/
                David M. Adams

            	 

    

    Its:
      President and Co-CEO, David M. Adams

    

    Second
      Bridge LLC (The Consulting Firm herein):

    

     

    

    
      	 	
              /s/
                Dirk O’Hara, Managing Member

            	 

    

    By:
      Dirk
      O’Hara, Managing Member

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      A

    

    

    REGISTRATION
      OF COMMON STOCK

    

    

    
      	 	
              I.

            	
              The
                Company shall not be required to issue fractional shares of capital
                stock
                upon the delivery of Certificates which would evidence fractional
                shares
                of capital stock. In the event that a fraction of a share would,
                except
                for the provisions of this Section I, be issuable upon the Notice
                from the
                Consulting Firm, The Company shall pay to the Consulting Firm within
                five
                (5) days of receipt of its Notice an amount in cash equal to such
                fraction
                multiplied by the market value of a Share as calculated under this
                Agreement.

            

    

    

    II.     Market
      Value:  For
      use
      in calculation of the Total Compensation as provided in this Agreement if the
      Company Common Stock shares are listed or traded on a national securities
      exchange or in the NASDAQ Reporting System, the closing price on the principal
      national securities exchange on which they are so listed or traded or in the
      NASDAQ Reporting System, as the case may be, on the last business day prior
      to
      the date of the Notice of the Consulting Firm. The closing price referred to
      in
      this clause shall be the last reported sales price or, in case no such reported
      sale takes place on such day, the average of the reported closing bid and asked
      prices, in either case on the national securities exchange on which the Company
      Common Stock shares are then listed on in the NASDAQ Reporting System; or in
      the
      event no such closing price or closing bid and asked prices are available,
      as
      determined in any reasonable manner as may be prescribed by The Company Board
      of
      Directors.

    

    
      	 	
              III.

            	
              Subject
                to the terms and conditions of this Agreement, promptly upon the
                Consulting Firm’s Notice in accordance with this Section, Consulting Firm
                shall be entitled to receive a stock certificate evidencing ownership
                of
                the Common Stock chares. The Certificate(s) shall be registered in
                the
                name of the Consulting Firm and shall be delivered, as provided above,
                to
                or upon the written Notice. 

            

    

    

    
      	 	
              IV.

            	
              In
                case any that the Certificates shall be mutilated, lost, stolen or
                destroyed, The Company shall issue and deliver, in exchange and
                substitution for and upon cancellation of the mutilated Certificate,
                or in
                lieu of and in substitution for the Certificate lost, stolen or destroyed,
                a new Certificate of like tenor and representing an equivalent right
                or
                interest.

            

    

    

    
      	 	
              V.

            	
              The
                Company will at all times reserve and keep available, free from preemptive
                rights, out of the aggregate of its authorized but unissued Shares
                or its
                authorized and issued Shares held in its treasury for the purpose
                of
                enabling it to satisfy its obligation under this Agreement to issue
                Shares
                upon Notice by the Consulting Firm, the full number of Shares deliverable
                as calculated by this Agreement.

            

    

    

    
      	 	
              VI.

            	
              The
                Company covenants that all Shares which may be issued pursuant to
                this
                Agreement will be validly issued, fully paid and non-assessable
                outstanding Shares of The
                Company.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    VII. Until
      registered with the Securities and Exchange Commission as provided for in this
      Agreement, the Certificates issued to the Consulting Firm in relation to its
      Notice may
      bear the
      following legend by which the Consulting Firm shall be bound:

    

    "THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933. THE SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
      OF SUCH REGISTRATION OR AN OPINION OF COUNSEL THAT AN EXEMPTION FROM
      REGISTRATION UNDER SUCH ACT IS AVAILABLE."

    

    Certificates
      without such legend shall be issued if such shares are sold pursuant to an
      effective registration statement under the Securities Act of 1933 (the “Act”) or
      if The Company has received an opinion from Consulting Firm’s counsel reasonably
      satisfactory to counsel for The Company, that such legend is no longer required
      under the Act.

    

    
      	 	
              VIII.

            	
              Registration
                Rights.
                The Company is obligated to register the shares of Common Stock provided
                for under this Agreement in any subsequent registration statement
                filed by
                The Company for its own account or the account of any other shareholder
                or
                the Consulting Firm with the SEC, so that Consulting Firm as the
                holder of
                such Common Stock shall be entitled to sell the same simultaneously
                with
                and upon the terms and conditions as the securities sold for the
                account
                of The Company or any other shareholders are being sold pursuant
                to any
                such registration statement, subject to reasonable and customary
                lock-up
                provisions as may be proposed by the underwriter of said registration
                statement and agreed to by the investors ("Piggyback Registration
                Right").
                In
                Addition, upon the receipt by The Company of a written Notice from
                Consulting Firm as provided in the Agreement, the Company shall
                immediately act for the registration of all or any portion of the
                Shares
                of Common Stock comprising the Total Compensation, at any time that
                is
                within at least 30 days after the date of the Notice. The Company
                shall
                prepare and file, within 30 days after the date of such Notice of
                the
                Consulting Firm, a registration statement under the Act covering
                the
                Shares which are subject to such Notice and comprise the entire Total
                Compensation and shall use its best commercial efforts to cause such
                registration statement to become effective within 90 days following
                the
                Notice from the Consulting Firm (a “Demand Registration”). In connection
                with any Registration hereunder, The Company shall indemnify, defend
                and
                hold harmless the Consulting Firm, any underwriter, dealer or broker
                for
                Consulting Firm, and their respective affiliates, directors, officers,
                partners, employees, agents and representatives from and against
                any and
                all losses, claims, damages, liabilities, costs and expenses arising
                out
                of or based upon any untrue or alleged untrue statement of any material
                fact contained in a registration statement filed with the SEC pursuant
                thereto, any prospectus contained therein, or any amendment or supplement
                thereto, or arise out of or are based upon the omission or alleged
                omission of a material fact required to be stated therein or necessary
                to
                make the statements therein, in light of the circumstances in which
                they
                were made, not misleading. 

            

    

    

    
      	 	
              IX.

            	
              Adjustment
                of Number of Shares and Class of Capital Stock Purchasable.
                The Number of Shares and Class of Capital Stock to be delivered under
                this
                Agreement are subject to adjustment from time to time as set forth
                in this
                Section.

            

    

    

    (a) Adjustment
      for Change in Capital Stock.
      If The
      Company:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              (i)

            	
              pays
                a dividend or makes a distribution on its Common Stock, in each case,
                in
                shares of its Common Stock;

            

    

    

    
      	 	
              (ii)

            	
              subdivides
                its outstanding shares of Common Stock into a greater number of
                shares;

            

    

    

    
      	 	
              (iii)

            	
              combines
                its outstanding shares of Common Stock into a smaller number of
                shares;

            

    

    

    
      	 	
              (iv)

            	
              makes
                a distribution on its Common Stock in shares of its capital stock
                other
                than Common; or

            

    

    

    
      	 	
              (v)

            	
              issues
                by reclassification, conversion or recapitalization of its shares
                of
                Common Stock any shares of its capital stock or of subscription rights,
                options, warrants, or exchangeable or convertible securities containing
                the right to subscribe for or purchase shares of any class of equity
                securities of The Company;

            

    

    

    then
      the
      number and classes of shares purchasable in effect immediately prior to such
      action shall be adjusted so that the Consulting Firm may receive the number
      and
      classes of shares of capital stock of The Company which such Consulting Firm
      would have owned immediately following such action if such Consulting Firm
      had
      given Notice immediately prior to such action. For a dividend or distribution
      the adjustment shall become effective immediately after the record date for
      the
      dividend or distribution. For a subdivision, combination or reclassification,
      the adjustment shall become effective immediately after the effective date
      of
      the subdivision, combination or reclassification.

    

    (b)
      Consolidation, Merger or Sale of The Company. If The Company is a party to
      a
      consolidation, merger, reorganization or transfer of assets which reclassifies
      or changes its outstanding Common Stock, the successor corporation (or
      corporation controlling the successor corporation to The Company, as the case
      may be) shall by operation of law assume The Company's obligations under this
      Agreement. As a condition to the consummation of such transaction, The Company
      shall arrange for the person or entity obligated to issue securities or deliver
      cash or other assets upon Notice by the Consulting Firm to, concurrently with
      the consummation of such transaction, assume The Company's obligations hereunder
      by executing an instrument so providing and further providing for adjustments
      which shall be as nearly equivalent as may be practical to the adjustments
      provided for in this Section IX.

    

    
      	 	
              (c)

            	
              Notice
                of Adjustments. If The Company shall propose to take any action specified
                above that would result in an adjustment of the number of Shares,
                then in
                each such case The Company shall give at least 10 days prior written
                notice to the Consulting Firm of such proposed action,
                which

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    shall
      specify the record date for such event and the date of participation therein
      by
      the Consulting Firms of Common Stock, if any such date has been fixed, and
      shall
      also set forth such facts with respect thereto as shall be reasonably necessary
      to indicate the effect of such action on the Common Stock. In addition, if
      the
      number of Shares the Company must deliver or the Price per Share is adjusted,
      The Company shall thereafter promptly deliver to Consulting Firm a certificate
      signed by its chief financial officer setting forth, in reasonable detail,
      (a)
      the event requiring the adjustment, (b) the method by which the adjustment
      was
      calculated, and (b) the number of Shares the Company must then deliver after
      giving effect to such adjustment.

    

    
      	 	
              X.

            	
              Successors.
                All the covenants and provisions of this Agreement by or for the
                benefit
                of The Company or Consulting Firm shall bind and inure to the benefit
                of
                their respective successor(s) and assigns
                hereunder.

            

    

    End
      of Exhibit A.Exhibit 10.3

    Exhibit
      10.3

    EMPLOYMENT
      AGREEMENT

    

    This
      Employment Agreement (the “Agreement”) is effective as of August 24, 2006 (the
      Effective Date”) by and between Richard D. Thornton and Blast Energy Services,
      Inc., and its subsidiaries, a California corporation (the
“Company”).

    

    
      	
              1.

            	
              Duties
                and Scope of Employment.

            

    

    

    
      	 	
              (a)

            	
              Position.
                For the term of his employment under this Agreement (the “Employment”),
                the Company agrees to employ the Executive in the position of Vice
                President of Eagle Domestic Drilling Operations LLC. The duties and
                responsibilities of Executive shall include the duties and
                responsibilities for the Executive’s corporate office and position as set
                forth in the Company’s bylaws and such other duties and responsibilities
                as the Company’s Chief Executive Officer and/or Board of Directors may
                from time to time reasonably assign to the
                Executive.

            

    

    

    
      	 	
              (b)

            	
              Obligations
                to the Company.
                During his Employment, the Executive shall devote his primary focus
                and
                primary business efforts and time to the Company, The Executive maintains
                other business interests and prior obligations outside of the Company
                which he currently pursues and which he shall continue during his
                employment with the Company. Nothing shall not preclude Executive
                from
                engaging in appropriate civic, charitable or religious activities
                or from
                devoting a reasonable amount of time to private investments or from
                serving on the boards of directors of companies, including closely
                held
                companies which are controlled by Executive as long as these activities
                or
                services do not materially interfere or conflict with Executive’s
                responsibilities to, or ability to perform his duties of employment
                by,
                the Company under this Agreement. The Executive shall comply with
                the
                Company’s policies and rules as they may be in effect from time to time
                during his Employment.

            

    

    

    
      	 	
              (c)

            	
              No
                Conflicting Obligations.
                The Executive represents and warrants to the Company that he is under
                no
                obligations or commitments, whether contractual or otherwise, that
                are
                inconsistent with his obligations under this Agreement. The Executive
                represents and warrants that he will not use or disclose, in connection
                with his employment by the Company, any trade secrets or other proprietary
                information or intellectual property in which the Executive or any
                other
                person has any right, title or interest and that his employment by
                the
                Company as contemplated by this Agreement will not infringe or violate
                the
                rights of any other person. The Executive represents and warrants
                to the
                Company that he has returned all property and confidential information
                belonging to any prior employer.

            

    

    

    

    
      	
              2.

            	
              Cash
                and Incentive
                Compensation.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              (a)

            	
              Salary.
                The Company shall pay the Executive as compensation for his services
                a
                base salary at a gross annual rate of not less than $150,000.00.
                Such
                salary shall be reviewed annually in December with any adjustment
                (but in
                no event a reduction in salary) to be effective January 1 of the
                following
                year and payable in accordance with the Company’s standard payroll
                procedures. (The annual compensation specified in the Subsection
                (a),
                together with any increases in such compensation that the Company
                may
                grant from time to time, is referred to in this Agreement as “Base
                Compensation.”)

            

    

    

    
      	 	
              (b)

            	
              Bonus.
                The Executive shall be eligible to participate in bonus programs
                established by the Board of Directors for management employees. During
                the
                Employment Period, Executive will be entitled to participate in an
                annual
                incentive compensation plan of the Company. The Executive’s potential
                annual bonus will be up to fifty percent (50%) of his Base Salary
                as in
                effect for such year, such bonus to be based upon mutually agreeable
                milestones determined by the Chief Executive
                Officer.

            

    

    

    
      	 	
              (c)

            	
              Stock
                Award:
                Executive will received 1 million shares of restricted stock at the
                close
                of the acquisition of Eagle Domestic Drilling Operations, LLC. The
                restrictions on the 1 million shares will be removed after twelve
                (12)
                months from the day of closing.

            

    

    

    
      	 	
              (d)

            	
              Options.
                Executive shall be eligible to be considered for stock option grants
                under
                the Company’s annual stock option award program as administered by, and at
                the discretion of, the Compensation Committee of the Board of Directors.
                

            

    

    

    
      	 	
              (e)

            	
              410
                (k) Benefit.
                Executive shall be eligible to participate in the Company’s 401 (k) Plan
                and enjoy the benefits thereof.

            

    

    

    
      	 	
              (f)

            	
              Insurance
                Coverage Reimbursement.
                The Executive will be eligible to participate in Company-sponsored
                benefit
                plans, including the Company’s medical plan, in the same manner as Company
                and any third-party benefit provider make such opportunities available
                to
                Company’s regular full-time employees, subject to any such third-party
                benefit provider’s determination that Executive is eligible to participate
                in such plan.

            

    

    

    
      	 	
              (g)

            	
              Vacation.
                During the term of this Agreement, Executive shall be entitled to
                vacation
                each year in accordance with the Company’s policies in effect from time to
                time, but in no event less than three
                (3)
                weeks paid vacation per calendar
                year.

            

    

    

    

    

    
      	
              3.

            	
              Business
                Expenses.
                During his Employment, the Executive shall be authorized to incur
                necessary and reasonable travel, entertainment and other business
                expenses
                in connection with his duties hereunder. The Company shall reimburse
                the
                Executive for such expenses

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    upon
      presentation of an itemized account and appropriate supporting documentation,
      all in accordance with the Company’s generally applicable policies. The
      Executive shall have a car allowance of $1,000.00 per month during the term
      of
      this Agreement.

    

    

    
      	
              4.

            	
              Term
                of Employment.

            

    

    

    
      	 	
              (a)

            	
              Term.
                This Agreement shall expire on the third anniversary of the Effective
                Date, unless otherwise extended by the mutual agreement of Executive
                and
                the Company; provided,
                that this Agreement shall automatically be renewed for additional
                one (1)
                year terms, after the initial three year term, and shall automatically
                be
                continued effective as of the subsequent anniversary date of the
                Agreement
                (a “Renewal Date”) unless the Company or Executive has delivered written
                notice of non-renewal to the other party at least thirty (30) days
                prior
                to the relevant Renewal Date.

            

    

    

    
      	 	
              (b)

            	
              Basic
                Rule.
                The Executive’s Employment with the Company shall be “at will,” meaning
                that either the Executive or the Company shall be entitled to terminate
                the Executive’s Employment at any time and for any reason, with or without
                Cause (in the case of the Company) or Constructive Termination (in
                the
                case of Executive). Any contrary representations that may have been
                made
                to the Executive shall be superseded by this Agreement. This Agreement
                shall constitute the full and complete agreement between the Executive
                and
                the Company on the “at will nature of the Executive’s Employment, which
                may only be changed in an express written agreement signed by the
                Executive and a duly authorized officer of the
                Company.

            

    

    

    
      	 	
              (c)

            	
              Termination.
                The Company or the Executive may terminate the Executive’s Employment at
                any time and for any reason (or no reason), and with or without Cause
                (in
                the case of the Company) or Constructive Termination (in the case
                of
                Executive), by giving the other party notice in writing. The Executive’s
                Employment shall terminate automatically in the event of his
                death.

            

    

    

    
      	 	
              (d)

            	
              Rights
                Upon Termination.
                Except as expressly provided in Section 5, upon the termination of
                the
                Executive’s Employment pursuant to this Section 4, the Executive shall
                only be entitled to the compensation, benefits and reimbursements
                described in Sections 2 and 3 preceding the effective date of the
                termination.

            

    

    

    

    

    

    
      	
              5.

            	
              Termination
                Benefits.

            

    

    

    
      	 	
              (a)

            	
              General
                Release.
                Any other provision of this Agreement notwithstanding, Subsections
                (b),
                (c), and (d) below shall not apply unless the Employee (i) has executed
                a
                general release (in a form reasonably prescribed by the Company)
                of

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    all
      known
      and unknown claims that he may then have against the Company or persons
      affiliated with the Company, and (ii) has agreed not to prosecute any legal
      action or other proceeding based upon any of such claims.

    

    
      	 	
              (b)

            	
              Severance
                Pay.
                If, during the term of this Agreement, the Company terminates the
                Executive’s Employment for any reason other than Cause, or if the
                Executive voluntarily resigns from the Company, (collectively, a
                “Termination Event”), then the Company shall pay the Executive his Base
                Compensation for the remaining period of the then-current term of
                this
                Agreement, but not in excess of twelve (12) months.
                

            

    

    

    
      	 	
              (c)

            	
              Disability
                or Death.
                If
                the Executive’s employment is terminated by the Company by reason of the
                Executive’s Disability or death, the Executive shall be entitled to a
                prompt cash payment of a prorated portion of the payments set forth
                in
                Sections 2(a) and (b) above for the year in which such termination
                occurs.
                Executive and his eligible dependents shall be entitled to continued
                participation so long as he is disabled and is not eligible for coverage
                under a successor employer’s plans through the month in which the
                Executive attains age 65 in all medical, dental, vision and
                hospitalization insurance coverage, and in all other employee welfare
                benefit plans, programs and arrangements in which he was participating
                on
                the date of termination of his employment for Disability on terms
                and
                conditions that are no less favorable than those applicable, from
                time to
                time, to senior executives of the Company. For purposes of this Agreement,
                “Disability” means the Executive’s inability, due to physical or mental
                incapacity, to substantially perform his duties and responsibilities
                contemplated by this Agreement. In the event of a dispute as to whether
                the Executive is disabled, the determination shall be made by a licensed
                medical doctor selected by the Company and agreed to by the Executive.
                If
                the parties cannot agree on a medical doctor, each party shall select
                a
                medical doctor and the two doctors shall select a third who shall
                be the
                approved medical doctor for this purpose. The Executive agrees to
                submit
                to such tests and examinations as such medical doctor shall deem
                appropriate.

            

    

    

    
      	 	
              (d)

            	
              Definition
                of “Cause.”
                For all purposes under this Agreement, “Cause” shall
                mean:

            

    

    

    
      	 	
              (i)

            	
              Any
                breach of the Invention, Confidential Information and Non-Competition
                Agreement referenced in Section 6 hereof between the Executive and
                the
                Company, as determined by the Board of Directors of the
                Company;

            

    

    

    
      	 	
              (ii)

            	
              Conviction
                of, or a plea of “guilty” or “no contest” to, a felony, or a plea of
                “guilty” or “no contest” to a lesser included offense in exchange for
                withdrawal of a felony indictment of felony charge by indictment,
                in each
                case whether arising under the laws of the United States or any state
                thereof;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              (iii)

            	
              Any
                act or acts of material fraud;

            

    

    

    
      	 	
              (iv)

            	
              Violations
                of applicable laws, rules or regulations that expose the Company
                to
                material damages or material
                liability

            

    

    

    
      	 	
              (v)

            	
              Material
                breach by the employee of any material provision of the Employment
                Agreement that remains uncorrected for 30 days following written
                notice of
                such breach to the employee by the
                company.

            

    

    

    
      	 	
              (e)

            	
              Definition
                of “Constructive Termination.”
                For all purposes under this Agreement, Constructive Termination shall
                mean
                the voluntary resignation of the Executive within 60 days
                following;

            

    

    

    
      	 	
              (i)

            	
              The
                failure of the Executive to be elected or reelected to any of the
                positions described in Section 1(a) or his removal from any such
                position
                without his written consent.

            

    

    

    
      	 	
              (ii)

            	
              A
                material diminution in the Executive’s duties or the assignment of him of
                any duties inconsistent with the Executive’s position and status as Vice
                President of the Company.

            

    

    

    
      	 	
              (iii)

            	
              A
                change in the Executive’s reporting
                relationship.

            

    

    

    
      	 	
              (iv)

            	
              A
                reduction in the Executive’s Base Compensation without his
                consent;

            

    

    

    
      	 	
              (v)

            	
              Receipt
                of notice from Company that the Executive’s principal workplace will be
                relocated by more than 50 miles without his written
                consent;

            

    

    

    
      	 	
              (vi)

            	
              A
                breach by the Company of any of its material obligations to the Executive
                under this Agreement; or

            

    

    

    
      	 	
              (vii)

            	
              The
                failure of the Company to obtain a satisfactory agreement from any
                successor to all or substantially all of the assets or business of
                the
                Company to assume and agree to perform this Agreement within 15 days
                after
                a merger, consolidation, sale or similar
                transaction.

            

    

    

    

    
      	
              6.

            	
              Invention,
                Confidential Information and Non-Competition
                Agreement.
                The Executive has entered into an Invention, Confidential Information
                and
                Non-Competition Agreement with the Company, in the form attached
                hereto as
                Exhibit A, which is incorporated herein by
                reference.

            

    

    

    
      	
              7.

            	
              Successors.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a) Company’s
      Successors.
      This
      Agreement shall be binding upon any successor (whether direct or indirect and
      whether by purchase, lease, merger, consolidation, liquidation or otherwise)
      to
      all or substantially all of the Company’s business and/or assets. For all
      purposes under this Agreement, the term “Company” shall include any successor to
      the Company’s business and/or assets which becomes bound by this
      Agreement.

    

    
      	 	
              (b)

            	
              Executives
                Successors.
                This Agreement and all rights of the Executive hereunder shall inure
                to
                the benefit of, and be enforceable by, the Executive’s personal or legal
                representatives, executors, administrators, successors, heirs,
                distributees, devisees and
                legatees.

            

    

    

    
      	
              8.

            	
              Miscellaneous
                Provisions.

            

    

    

    
      	 	
              (a)

            	
              Notice.
                Notices and all other communications contemplated by this Agreement
                shall
                be in writing and shall be deemed to have been duly given when personally
                delivered or when mailed by U.S. registered or certified mail, return
                receipt requested and postage prepaid. In the case of the Executive,
                mailed notices shall be addressed to him at the home address which
                he most
                recently communicated to the Company in writing. In the case of the
                Company, mailed notices shall be addressed to its corporate headquarters,
                and all notices shall be directed to the attention of its
                Secretary.

            

    

    

    
      	 	
              (b)

            	
              Modifications
                and Waivers.
                No
                provision of this Agreement shall be modified, waived or discharged
                unless
                the modification, waiver or discharge is agreed to in writing and
                signed
                by the Executive and by an authorized officer of the Company (other
                than
                the Executive). No waiver by either party of any breach of, or of
                compliance with, any condition or provision of this Agreement by
                the other
                party shall be considered a waiver of any other condition or provision
                or
                of the same condition or provision at another
                time.

            

    

    

    
      	 	
              (c)

            	
              Indemnification.
                To
                the fullest extent permitted by the indemnification provisions of
                the
                Articles of Incorporation and Bylaws of the Company in effect as
                of the
                date of this Agreement, and indemnification provision of the laws
                of the
                jurisdiction of the Company’s incorporation in effect from time to time,
                the Company and any of its successors or assigns shall indemnify
                the
                Executive as a director, senior officer or employee of the Company
                against
                all liabilities and reasonable expenses that may be incurred in any
                threatened, pending or completed action, suit or proceeding, and
                shall pay
                for the reasonable expenses incurred by the Executive in the defense
                of or
                participation in any proceeding to which the Executive is a party
                because
                of his service to the Company. The rights of the Executive under
                this
                indemnification provision shall survive the termination of employment
                and
                the Company shall procure the same in the event it is acquired or
                for any
                reason there become a successor to its obligations under this
                Agreement.

            

    

    

    
      	 	
              (d)

            	
              Whole
                Agreement.
                This Agreement and the Invention, Confidential Information and
                Non-Competition Agreement between the Company and Executive
                contain

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the
      entire understanding of the parties with respect to the subject matter hereof.
      No other agreements, representations or understandings (whether oral or written
      and whether express or implied) which are not expressly set forth in such
      agreements have been made or entered into by either party with respect to the
      subject matter hereof.

    

    
      	 	
              (e)

            	
              Withholding
                Taxes.
                All payments made under this Agreement shall be subject to reduction
                to
                reflect taxes or other charges required to be withheld by
                law.

            

    

    

    
      	 	
              (f)

            	
              Choice
                of Law and Severability.
                This Agreement is executed by the parties in the State of Texas and
                shall
                be interpreted in accordance with the laws of such State (except
                their
                provisions governing the choice of law). If any provision of this
                Agreement becomes or is deemed invalid, illegal or unenforceable
                in any
                jurisdiction by reason of the scope, extent or duration of its coverage,
                then such provision shall be deemed amended to the extent necessary
                to
                conform to applicable law so as to be valid and enforceable or, if
                such
                provision cannot be so amended without materially altering the intention
                of the parties, then such provision shall be stricken and the remainder
                of
                this Agreement shall continue in full force and effect. Should there
                ever
                occur any conflict between any provision contained in this Agreement
                and
                any present or future statue, law, ordinance or regulation contrary
                to
                which the parties have no legal right to contract, then the latter
                shall
                prevail but the provision of this Agreement affected thereby shall
                be
                curtailed and limited only to the extent necessary to bring it into
                compliance with applicable law. All the other terms and provisions
                of this
                Agreement shall continue in full force and effect without impairment
                or
                limitation.

            

    

    

    
      	 	
              (g)

            	
              Arbitration.
                Any controversy or claim arising out of or relating to this Agreement
                or
                the breach thereof, or the Executive’s Employment or the termination
                thereof, shall be settled in Houston, Texas, by arbitration in accordance
                with the National Rules for the Resolution of Employment Disputes
                of the
                American Arbitration Association. The decision of the arbitrator
                shall be
                final and binding on the parties, and judgment on the award rendered
                by
                the arbitrator may be entered in any court having jurisdiction thereof.
                The parties hereby agree that the arbitrator shall be empowered to
                enter
                an equitable decree mandating specific enforcement of the terms of
                this
                Agreement. The Company and the Executive shall share equally all
                fees and
                expenses of the arbitrator. The Executive hereby consents to personal
                jurisdiction of the state and federal courts located in the State
                of Texas
                for any action or proceeding arising from or relating to this Agreement
                or
                relating to any arbitration in which the parties are
                participants.

            

    

    

    
      	 	
              (h)

            	
              No
                Assignment.
                This Agreement and all rights and obligations of the Executive hereunder
                are personal to the Executive and may not be transferred or assigned
                by
                the Executive at any time. The Company may assign its rights under
                this
                Agreement to any entity that assumes the Company’s obligations hereunder
                in

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    connection
      with any sale or transfer of all or substantial portion of the Company’s assets
      to such entity.

    

    
      	 	
              (i)

            	
              Counterparts.
                This Agreement may be executed in two or more counterparts, each
                of which
                shall be deemed an original, but all of which together shall constitute
                one and the same instrument.

            

    

    

    IN
      WITNESS WHEREOF,
      each of
      the parties has executed this Agreement, in the case of the Company by its
      duly
      authorized officer, as of the day and year first above written.

    

    

    

    
      	 	
              /s/
                Richard D. Thornton Jr.

            
	 	
              RICHARD
                D. THORNTON, Jr.

            
	 	 
	 	 
	 	
              BLAST
                ENERGY SERVICES, INC.

            
	 	 
	 	
              By:
                /s/ David M. Adams

            
	 	
              Name:
                David M. Adams

            
	 	
              Title:
                President and Co-CEO

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    Invention,
      Confidential Information and Non-Competition Agreement

    

    

    CONFIDENTIALITY
      AGREEMENT

    

    THIS
      AGREEMENT, entered into this 25th
      day of
      August, 2006, by and between Blast
      Energy Services, Inc.
      a
      corporation organized and existing under the laws of the State of California.,
      ("Disclosing Party"), and Richard
      D. Thornton, Jr.,
      ("Receiving Party"). Disclosing Party and Receiving Party are sometimes herein
      individually called a “Party” and collectively called the
“Parties”.

    

    1. Disclosure
      of Confidential Information.
      The
      Disclosing Party is willing, in accordance with the terms and conditions of
      this
      Agreement, to disclose to the Receiving Party certain confidential information,
      which is proprietary, relating to the abrasive fluid jetting and other technical
      information, (“Technology”), which may be in tangible, intangible or electronic
      form, together with any notes, memoranda, analyses, evaluations, charts,
      drawings or summaries derived therefrom. The foregoing is herein referred to,
      individually or collectively as the context may require, as the "Confidential
      Information". The
      obligation of Disclosing Party to disclose Confidential Information to Receiving
      Party is subject to applicable provisions of agreements that Disclosing Party
      has with third parties. 

    

    2. Confidentiality
      Obligation and Non-Competition.
      In
      consideration of the disclosure of Confidential Information referred to in
      Paragraph 1 hereof, the Receiving Party agrees that the Confidential Information
      shall be kept strictly confidential and shall not be sold, traded, published
      or
      otherwise disclosed to anyone in any manner whatsoever, including by means
      of
      photocopy or reproduction, without the Disclosing Party's prior written consent,
      except as provided in Paragraphs 3, 4 and 5 below.

    

    3. Confidentiality
      Exceptions.
      The
      Receiving Party may disclose the Confidential Information without the Disclosing
      Party's prior written consent only to the extent such information:

    

    
      	 	
              (A)

            	
              is
                already known to the Receiving Party as of the date of disclosure
                hereunder;

            

    

    

    
      	 	
              (B)

            	
              is
                already in possession of the public or becomes available to the public
                other than through the act or omission of the Receiving
                Party;

            

    

    

    
      	 	
              (C)

            	
              is
                required to be disclosed under applicable law or by a governmental
                order,
                decree, regulation or rule (provided that the Receiving Party shall
                give
                written notice to the Disclosing Party prior to such disclosure);
                or

            

    

    

    
      	 	
              (D)

            	
              is
                acquired independently from a third party that represents that it
                has the
                right to disclose such information at the time it is acquired by
                the
                Receiving Party.

            

    

    

    4. Disclosure
      to Affiliated Companies.
      The
      Receiving Party may disclose the Confidential Information without the Disclosing
      Party's prior written consent to an Affiliated Company (as hereinafter defined),
      provided that the Receiving Party guarantees the adherence of such Affiliated
      Company to the terms of this Agreement. "Affiliated
      Company"
      shall
      mean any company or legal entity which (a) controls either directly or
      indirectly a Party, or (b) which is controlled directly or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    indirectly
      by such Party, or (c) is directly or indirectly controlled by a company or
      entity that directly or indirectly controls such Party. "Control"
      means
      the right to exercise more than 50% or more of the voting rights of such
      company.

    

    5. Other
      Permitted Disclosures.
      The
      Receiving Party shall be entitled to disclose the Confidential Information
      without the Disclosing Party's prior written consent to such of the following
      persons who have a clear need to know in order to evaluate the Area of
      Operations:

    

    (A) employees,
      officers and directors of the Receiving Party;

    

    (B) employees,
      officers and directors of an Affiliated Company;

    

    
      	 	
              (C)

            	
              any
                professional consultant or agent retained by the Receiving Party
                for the
                purpose of evaluating the Confidential Information;
                or

            

    

    

    
      	 	
              (D)

            	
              any
                bank, financial institution or person that finances the participation
                by
                Receiving Party or an Affiliate of Receiving Party of the Technology,
                including any professional consultant retained by such entity for
                the
                purpose of evaluating the Confidential
                Information.

            

    

    

    Prior
      to
      making any such disclosures to persons under subparagraphs (C) and (D) above,
      however, the Receiving Party shall obtain from each such person an undertaking
      of confidentiality, with substantially the same content as this
      Agreement.

    6. Use
      of Confidential Information by Receiving Party.
      The
      Receiving Party and its Affiliated Companies, if any, shall use or permit the
      use of the Confidential Information disclosed under Paragraphs 4 or 5 above
      to
      evaluate the Area of Operations and determine whether to enter into a
      participation with Disclosing Party or one of its Affiliates for evaluation
      of
      the Technology.

    

    7. Responsibility
      to Ensure Confidentiality.
      The
      Receiving Party shall be responsible for ensuring that all persons to whom
      the
      Confidential Information is disclosed under this Agreement shall keep such
      information confidential and shall not disclose or divulge the same to any
      unauthorized person. Neither Party shall be liable in an action initiated by
      one
      against the other for special, indirect or consequential damages resulting
      from
      or arising out of this Agreement, including, without limitation, loss of profit
      or business interruptions, however it may be caused.

    

    8. Ownership
      of Confidential Information.
      The
      Confidential Information shall remain the property of the Disclosing Party,
      and
      the Disclosing Party may demand the return thereof at any time upon giving
      written notice to the Receiving Party. Within 10 days of receipt of such notice,
      the Receiving Party shall return all of the original Confidential Information
      and shall destroy all copies and reproductions (both written and electronic)
      in
      its possession and in the possession of persons to whom it was disclosed
      pursuant to Paragraphs 4 and 5 hereof. .

    

    9. Further
      Agreements.
      If the
      Parties agree to participate in further agreements, which include
      confidentiality provisions, then this Agreement shall terminate automatically
      on
      the date the Receiving Party enters into a further agreement with Disclosing
      Party or one of its Affiliates that contains provisions covering the
      confidentiality of data for the Technology. Unless earlier

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    terminated
      under the preceding sentence, the confidentiality obligations set forth in
      this
      Agreement shall terminate two (2) years after the date of this
      Agreement.

    

    10. Right
      to Disclose Confidential Information.
      The
      Disclosing Party hereby represents and warrants that it has the right and
      authority to disclose the Confidential Information to the Receiving Party,
      subject to the terms of agreements of Disclosing Party with third parties
      relating to the Confidential Information. The Disclosing Party, however, makes
      no representations or warranties, express or implied, as to the quality,
      accuracy and completeness of the Confidential Information disclosed hereunder,
      and the Receiving Party expressly acknowledges the inherent risk of error in
      the
      acquisition, processing and interpretation of geological and geophysical data.
      The Disclosing Party, its Affiliated Companies, their officers, directors and
      employees shall have no liability whatsoever with respect to the use of or
      reliance upon the Confidential Information by the Receiving Party.

    

    11 General
      Provisions. 

    

    (A) Governing
      Law.
      This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of Texas, without regard to principles of conflicts of law that would
      refer the matter to the laws of another jurisdiction.

    

    (A) Dispute
      Resolution.
      Any
      dispute arising out of or relating to this Agreement, including any question
      regarding its existence, validity or termination, which cannot be amicably
      resolved by the Parties, shall be settled by arbitration before three
      arbitrators, one to be appointed by each Party and the two so appointed shall
      appoint the third arbitrator, in accordance with the Arbitration Rules of the
      American Arbitration Association as amended from time to time. Arbitration
      shall
      be held in Houston, Texas, and judgment upon the award rendered by the
      arbitrators may be entered in any court having jurisdiction thereof. A dispute
      shall be deemed to have arisen when either Party notifies the other Party in
      writing to that effect. Each Party shall share equally in the costs of any
      arbitration, however, each Party shall pay its own costs and attorney fees
      irrespective of which Party prevails in the arbitration.

    

    (C)
      Approval
      of Offers. Unless
      otherwise expressly stated in writing, any prior or future proposals or offers
      made in the course of the Parties’ discussions are implicitly subject to all
      necessary management and government approvals and may be withdrawn by either
      Party at any time. Nothing contained herein is intended to confer upon Receiving
      Party any right whatsoever to Disclosing Party’s interests. Receiving Party
      agrees with Disclosing Party that neither the review of Confidential Information
      nor the granting of access thereto creates any obligation on Receiving Party
      or
      Disclosing Party to acquire or dispose of, respectively, any interest in their
      operations.

    

    (D). Further
      Agreements.
      Unless
      otherwise expressly stated in writing, any prior or future proposals or offers
      made in the course of the Parties' discussions are implicitly subject to all
      necessary management and other approvals and may be withdrawn by either Party
      at
      any time. Nothing contained herein is intended to confer upon the Receiving
      Party any right whatsoever to the Disclosing Party's interest in their
      operations.

    

    (E). Amendments
      to Agreement.
      No
      amendments, changes or modifications to this Agreement shall be valid except
      if
      the same are in writing and signed by a duly authorized representative of each
      of the Parties hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (E) Entire
      Agreement.
      This
      Agreement comprises the full and complete agreement of the Parties hereto with
      respect to the disclosure of the Confidential Information and supersedes and
      cancels all prior communications, understandings and agreements between the
      Parties hereto, whether written or oral, expressed or implied. 

    

    (F) Notices.
      Any
      notice given hereunder by either Party shall be given in writing and shall
      be
      delivered in person, or sent by facsimile, or mailed by first class or
      registered mail, postage prepaid, and shall be considered to have been well
      and
      sufficiently given when received by the Party to whom it is addressed as
      follows. Each Party shall have the right to change its address at any time
      and/or designate that copies of all notices be directed to another person at
      another address, by giving written notice thereof to the other
      Party.

    

     

    

    IN
      WITNESS WHEREOF,
      the
      duly authorized representatives of the Parties have caused this Agreement to
      be
      executed on the date first written above.

    

    

    BLAST
      ENERGY SERVICES, INC.

    

    

    By:
      /s/
      David M. Adams       

    

    

    RECEIVING
      PARTY

    

    

    By:
      /s/
      Richard D. Thornton Jr.

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EMPLOYEE
      CONFIDENTIALITY AND NON-COMPETITION AGREEMENT

    

    In
      consideration of my employment or continued employment by Blast Energy Services
      (the "Company"), together with its affiliates and subsidiaries, and any
      subsidiaries or affiliates which hereafter may be formed or acquired, and in
      recognition of the fact that as an employee of Blast Energy Services I will
      have
      access to Blast Energy Services’ customers and to confidential and valuable
      business information of Blast Energy Services and its parent company, if
      applicable, together with its affiliates and subsidiaries, and any subsidiaries
      or affiliates which hereafter may be formed or acquired, I hereby agree as
      follows:

    

    1.
      Blast
      Energy Services’ Business. Blast Energy Services’ Business is providing drilling
      and communications services to the oil and gas industry. Blast Energy Services
      is committed to quality and service in every aspect of its business. I
      understand that Blast Energy Services looks to and expects from its employees
      a
      high level of competence, cooperation, loyalty, integrity, initiative, and
      resourcefulness. I understand that as an employee of Blast Energy Services,
      I
      will have substantial contact with Blast Energy Services’ customers and
      potential customers.

    

    I
      further
      understand that all business and fees, including consulting, risk management
      and
      other services produced or transacted through my efforts, shall be the sole
      property of Blast Energy Services, and that I shall have no right to share
      in
      any commission or fee resulting from the conduct of such business other than
      as
      compensation referred to in the paragraph entitled "Compensation and Benefits"
      hereof. All checks or bank drafts received by me from any customer or account
      shall be made payable to Blast Energy Services, and all premiums, commissions,
      or fees that I may collect shall be in the name of and on behalf of Blast Energy
      Services.

    

    2.
      Duties
      of Employee. I shall comply with all Company rules, procedures, and standards
      governing the conduct of employees and their access to and use of Blast Energy
      Services’ property, equipment, and facilities. I understand that Blast Energy
      Services will make reasonable efforts to inform me of the rules, standards,
      and
      procedures which are in effect from time to time and which apply to
      me.

    

    3.
      Compensation and Benefits. I shall receive the compensation as is mutually
      agreed upon, which may be adjusted from time to time, as full compensation
      for
      services performed under this Agreement. In addition, I may participate in
      such
      employee benefit plans and receive such other fringe benefits, subject to the
      same eligibility requirements, as are afforded other Company employees in my
      job
      classification. I understand that these employee benefit plans and fringe
      benefits may be amended, enlarged, or diminished by Blast Energy Services from
      time to time, at its discretion.

    

    4.
      Management of Blast Energy Services. Blast Energy Services may manage and direct
      its business affairs as it sees fit, including, without limitation, the
      assignment of duties and responsibilities, the assignment of sales territories,
      notwithstanding any employee's individual interest in or expectation regarding
      a
      particular business location or customer account.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.
      Termination of Employment. My employment may be terminated by Blast Energy
      Services or me at any time, with or without notice or cause. Upon termination
      of
      my employment, I shall be entitled to receive incentive payments in accordance
      with the provisions of Blast Energy Services’ Incentive Plan, as it may be
      modified by Blast Energy Services from time to time, less any adjustments for
      amounts owed by me to Blast Energy Services. I understand that I may also
      receive additional compensation at the discretion of Blast Energy Services
      and
      in accordance with the published Company Personnel Policy on Termination
      Pay.

    

    6.
      Agreement Not to Compete with Blast Energy Services.

    

    A.
      As
      long as I am employed by Blast Energy Services, I shall not participate directly
      or indirectly, in any capacity, in any business or activity that is in
      competition with Blast Energy Services.

    

    B.
      In
      consideration of my employment rights under this Agreement and in recognition
      of
      the fact that I will have access to the confidential information of Blast Energy
      Services and that Blast Energy Services’ relationships with its customers and
      potential customers constitute a substantial part of its goodwill, I agree
      that
      for One (1) year from and after termination of my employment, for any reason,
      unless acting with Blast Energy Services’ express prior written consent, I shall
      not, directly or indirectly, in any capacity, solicit or accept business from,
      provide consulting services of any kind to, or perform any of the services
      offered by Blast Energy Services, for any of Blast Energy Services’ customers or
      prospects with whom I had business dealings in the year next preceding the
      termination of my employment.

    

    C.
      I
      agree not to go into business as a direct competitor of Company within the
      United States of America for a period of twelve (12) months following the
      expiration or termination of this agreement or following termination of
      employment and notwithstanding the cause or reason for termination.

    

    7.
      Unauthorized Disclosure of Confidential Information. While employed by Blast
      Energy Services and thereafter, I shall not, directly or indirectly, disclose
      to
      anyone outside of Blast Energy Services any Confidential Information or use
      any
      Confidential Information (as hereinafter defined) other than pursuant to my
      employment by and for the benefit of Blast Energy Services.

    

    The
      term
      "Confidential Information" as used throughout this Agreement means any and
      all
      trade secrets and any and all data or information not generally known outside
      of
      Blast Energy Services whether prepared or developed by or for Blast Energy
      Services or received by Blast Energy Services from any outside source. Without
      limiting the scope of this definition, Confidential Information includes: any
      customer files, customer lists, any business, marketing, financial or sales
      record, data, plan, or survey; and any other record or information relating
      to
      the present or future business, product, or service of Blast Energy Services.
      All Confidential Information and copies thereof are the sole property of Blast
      Energy Services.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding
      the foregoing, the term Confidential Information shall not apply to information
      that Blast Energy Services has voluntarily disclosed to the public without
      restriction, or which has otherwise lawfully entered the public
      domain.

    

    8.
      Prior
      Obligations. I have informed Blast Energy Services in writing of any and all
      continuing obligations that require me to withhold or not disclose any
      information or that limits my opportunity or capacity to compete with any
      previous employer.

    

    9.
      Employee's Obligation to Cooperate. At any time upon request of Blast Energy
      Services, at Blast Energy Services’ expense, I shall execute all documents and
      perform all lawful acts Blast Energy Services considers necessary or advisable
      to secure its rights hereunder and to carry out the intent of this
      agreement.

    

    10.
      Return of Property. At any time upon request of Blast Energy Services, and
      upon
      termination of my employment, I shall return promptly to Blast Energy Services,
      all copies of all Confidential Information or Developments, and all records,
      files, blanks, forms, materials, supplies, and any other materials furnished,
      used, or generated by me during the course of my employment, and any copies
      of
      the foregoing, all of which I recognize to be the sole property of Blast Energy
      Services.

    

    11.
      Special Remedies. I recognize that money damages alone would not adequately
      compensate Blast Energy Services in the event of a breach by me of this
      Agreement, and I therefore agree that, in addition to all other remedies
      available to Blast Energy Services at law or in equity, Blast Energy Services
      shall be entitled to injunctive relief for the enforcement hereof. Failure
      by
      Blast Energy Services to insist upon strict compliance with any of the terms,
      covenants, or conditions hereof shall not be deemed a waiver of such terms,
      covenants, or conditions.

    

    12.
      Miscellaneous Provisions. (Check appropriate paragraph. Have employee
      initial)

    

    [
      ]
      This
      Agreement contains the entire and only agreement between me and Blast Energy
      Services respecting the subject matter hereof and supersedes all prior
      agreements and understandings between us as to the subject matter hereof; and
      no
      modification shall be binding upon me or Blast Energy Services unless made
      in
      writing and signed by me and an authorized officer of Blast Energy Services.
      Initials:
      ____________

    

    [
      X ]
      I
      acknowledge that there may be more than one agreement between me and Blast
      Energy Services respecting the subject matter hereof. In this event, this
      Agreement will be treated as an integral part of the sum of these agreements.
      In
      the case of duplication, respecting the subject matter hereof, my obligations
      shall consist of the sum of my obligations within said agreements. I am fully
      responsible for notifying Blast Energy Services of any conflict between said
      agreements immediately upon my discovery of such. No modifications shall be
      binding upon Blast Energy Services or me unless made in writing and signed
      by me
      and an authorized officer of Blast Energy Services.

    Initials:
      RT 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    My
      obligations under this Agreement shall survive the termination of my employment
      with Blast Energy Services regardless of the manner of or reasons for such
      termination, and regardless of whether such termination constitutes a breach
      of
      this Agreement or of any other agreement I may have with Blast Energy Services.
      If any provisions of this Agreement are held or deemed unenforceable or too
      broad to permit enforcement of such provision to its full extent, then such
      provision shall be enforced to the maximum extent permitted by law. If any
      of
      the provisions of this Agreement shall be construed to be illegal or invalid,
      the validity of any other provision hereof shall not be affected
      thereby.

    

    This
      Agreement shall be governed and construed according to the laws of the State
      of
      California and shall be deemed to be effective as of the first day of my
      employment by Blast Energy Services.

    

    BY
      SIGNING THIS AGREEMENT, I ACKNOWLEDGE THAT I HAVE READ AND UNDERSTOOD ALL OF
      ITS
      PROVISIONS AND THAT I AGREE TO BE FULLY BOUND BY THE SAME.

    

    

    Employee:
      /s/
      Richard D. Thornton, Jr.      Date:
      8/24/06

     

    Accepted
      by: /s/
      David M. Adams    President
      & Co-CEO Date:
      8/24/06

    (Name
      of
      Officer)     Title

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