Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Park Place Energy Inc. - Exhibit 10.1

 

 

PARK PLACE ENERGY INC.

 

 and 

 

ST ONLINE CORP. 

 

and

 

 0794403 B.C. LTD. 

 

 

 

 

 

 

	 
	 
	BUSINESS COMBINATION AGREEMENT 
	 
	June 22, 2007 
	 
	 

TABLE OF CONTENTS 

		ARTICLE 1 

      INTERPRETATION	 
	 	  	  
	Section 1.1 	Definitions 	1
      
	Section 1.2 	Singular, Plural, etc. 	6
      
	Section 1.3 	Deemed Currency 	6
      
	Section 1.4 	Headings, etc. 	6
      
	Section 1.5 	Date for any Action 	6
      
	Section 1.6 	Governing Law 	6
      
	Section 1.7 	Attornment 	6
      
	 	  	  
	 	ARTICLE 2 

      THE BUSINESS COMBINATION 	 
	 	  	  
	Section 2.1 	Business Combination Steps 	6
      
	Section 2.2 	Implementation Covenants 	8
      
	Section 2.3 	Board of Directors 	8
      
	 	  	  
	 	ARTICLE 3 

      PUBLICITY 	 
	 	  	  
	Section 3.1 	Publicity 	9
      
	 	  	  
	 	ARTICLE 4 

      REPRESENTATIONS AND WARRANTIES	 
	 	  	  
	Section 4.1 	Representations and Warranties of Park Place 	9
      
	Section 4.2 	Representations and Warranties of ST and Subco 	12
      
	Section 4.3 	Survival 	16
      
	 	  	  
	 	ARTICLE 5 

      CONDUCT OF BUSINESS 	 
	 	  	  
	Section 5.1 	Conduct of Business by the Parties 	16
      
	 	  	  
	 	ARTICLE 6 

      COVENANTS 	 
	 	  	  
	Section 6.1 	Recommendation of Amalgamation by Park Place 	18
      
	Section 6.2 	Waiver of Notice of Subco Shareholder Meeting and Resolution
      in Lieu of Meeting by ST 	18
      
	Section 6.3 	Representations and Warranties 	18
      
	Section 6.4 	Notice of Material Change 	18
      
	Section 6.5 	Non-Solicitation 	19
      
	Section 6.6 	Other Covenants 	19
      
	 	  	  
	 	ARTICLE 7 

      MUTUAL COVENANTS 	 
	 	  	  
	Section 7.1 	Other Filings 	20
      
	Section 7.2 	Additional Agreements 	20
      

	

      	ARTICLE 8 

      CONDITIONS 	 
	 	  	  
	Section 8.1
      	Mutual Conditions Precedent
      	20 
	Section 8.2 	Additional Conditions Precedent to the Obligations
      of Park Place 	21 
	Section 8.3
      	Additional Conditions Precedent
      to the Obligations of ST and Subco 	22 
	 	  	  
	

      	ARTICLE 9 

      TERMINATION AND AMENDMENT 	 
	 	  	  
	Section 9.1
      	Termination 	23 
	Section 9.2 	Effect of Termination 	23 
	Section 9.3
      	Fees and Expenses 	23 
	Section 9.4 	Amendment 	23 
	Section 9.5
      	Waiver 	24 
	 	  	  
	

      	ARTICLE 10 

      GENERAL	 
	 	  	  
	Section 10.1
      	Notices 	24 
	Section 10.2 	Assignment 	24 
	Section 10.3
      	Complete Agreement 	24 
	Section 10.4 	Further Assurances 	25 
	Section 10.5
      	Severability 	25 
	Section 10.6 	Counterpart Execution 	25 
	Section 10.7
      	Investigation by Parties 	25 
	 	  	  
	 	ADDENDA 	 
	 	  	  
	SCHEDULE “A”
      AMALGAMATION AGREEMENT 	 

BUSINESS COMBINATION AGREEMENT 

               
      THIS AGREEMENT is made as of June 15, 2007,
among Park Place Energy Inc. (“Park Place”), a corporation
incorporated under the laws of the Province of Alberta, ST Online Corp.
(“ST”), a corporation incorporated under the laws of the State of Nevada
and 0794403 B.C. Ltd. (“Subco”), a corporation incorporated under the
laws of the Province of British Columbia (each a “Party” and
collectively, the “Parties”). 

WHEREAS: 

A.                   
Park Place is a private company incorporated under the laws of the
Province of Alberta; 

B.                   
ST is a company listed on the OTCBB incorporated under the laws of the
State of Nevada; 

C.                    
Subco is a corporation wholly owned by ST incorporated under the laws
of the Province of BC; 

D.                   
Park Place and ST propose to combine the business and assets of Park
Place with those of ST; and 

E.                    
the Parties intend to carry out the proposed business combination by
way of a statutory amalgamation under the provisions of the Act and related
transaction steps; 

                     
NOW THEREFORE in consideration of the mutual covenants and agreements herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each of the Parties, the Parties
covenant and agree as follows: 

ARTICLE 1 
INTERPRETATION 

Section 1.1 Definitions 

                     
In this Agreement, unless there is something in the subject matter or
context inconsistent therewith, the following terms shall have the following
meanings, respectively: 

	 	(a) 	
      “1934 Act” means the United States Securities
      Exchange Act of 1934;

	 	 	 
	 	(b) 	
      “Act” means the Business Corporations Act
      (British Columbia) as the same has been and may hereafter from time to
      time be amended;

	 	 	 
	 	(c) 	
      “Affiliate” has the meaning ascribed thereto in
      the Act;

	 	 	 
	 	(d) 	
      “Agreement”, “this Agreement”,
      “herein”, “hereto”, and “hereof” and similar
      expressions refer to this Agreement, as the same may be amended or
      supplemented from time to time;

	 	 	 
	 	(e) 	
      “Park Place” means Park Place Energy Inc., a
      corporation amalgamated under the laws of the Province of British
      Columbia;

- 2 - 

	 	(f) 	
      “Park Place Financial Statements” has the meaning
      ascribed thereto in Section 4.1(j) hereof;

	 	 	 
	 	(g) 	
      “Park Place Meetings” means the special meeting of
      the shareholders of Park Place to be held on July 9, 2007 and July 30,
      2007;

	 	 	 
	 	(h) 	
      “Park Place Meetings Dates” means the date on
      which the Park Place Meetings occur;

	 	 	 
	 	(i) 	
      “Park Place Shares” means common shares in the
      capital of Park Place;

	 	 	 
	 	(j) 	
      “Park Place Shareholder” means a registered holder
      of Park Place Shares, from time to time, and “Park Place
      Shareholders” means all such holders;

	 	 	 
	 	(k) 	
      “Park Place Options” means the outstanding,
      incentive stock options of Park Place;

	 	 	 
	 	(l) 	
      “Amalco” means the amalgamated corporation
      resulting from the Amalgamation;

	 	 	 
	 	(m) 	
      “Amalco Shares” means the common shares in the
      share capital of Amalco, all of which will be beneficially owned by
    ST;

	 	 	 
	 	(n) 	
      “Amalgamation” means the amalgamation of Park
      Place and Subco pursuant to the applicable provisions of the
Act;

	 	 	 
	 	(o) 	
      “Amalgamation Agreement” means the agreement among
      Park Place, ST and Subco in respect of the Amalgamation, to be
      substantially in the form attached as Schedule “A” to this
    Agreement;

	 	 	 
	 	(p) 	
      “Articles” means the articles of Amalco;

	 	 	 
	 	(q) 	
      “Amalgamation Application” means the amalgamation
      application as contemplated by the Act;

	 	 	 
	 	(r) 	
      “Business Day” means any day excepting a Saturday
      or Sunday or a day recognized as a holiday;

	 	 	 
	 	(s) 	
      “Business Combination” means the series of
      transactions, as detailed in this Agreement, through which the businesses
      of Park Place and ST will be combined, including the
  Amalgamation;

	 	 	 
	 	(t) 	
      “Completion Deadline” means August 10, 2007 or
      such later date as may be agreed between the Parties in writing;

	 	 	 
	 	(u) 	
      “Debt Instrument” has the meaning ascribed thereto
      in Section 4.1(u) hereof;

	 	 	 
	 	(v) 	
      “Documents” means collectively, this Agreement and
      the Amalgamation Agreement;

	 	 	 
	 	(w) 	
      “Effective Date” means the date of the filing of
      the Amalgamation Application with the Registrar;

	 	 	 
	 	(x) 	
      “Effective Time” means 12:01 a.m. (Vancouver time)
      on the Effective Date;

	 	 	 
	 	(y) 	
      “Exchange Ratio” has the meaning given to such
      term in Section 2.1(e) hereof;

- 3 - 

	 	(z) 	
      “GAAP” means generally accepted accounting
      principles;

	 	 	 	 
	 	(aa) 	
      “Governing Documents” means, in respect of each
      Party, its certificate and articles of incorporation, as amended, and its
      by-laws or articles, as amended;

	 	 	 	 
	 	(bb) 	
      “Government Authority” means any foreign,
      national, provincial, local or state government, any political subdivision
      or any governmental, judicial, public or statutory instrumentality, court,
      tribunal, agency (including those pertaining to health, safety or the
      environment), authority, body or entity, or other regulatory bureau,
      authority, body or entity having legal jurisdiction over the activity or
      Person in question;

	 	 	 	 
	 	(cc) 	
      “Intellectual Property” means intellectual
      property of every nature, whether registered or unregistered, including,
      without limitation:

	 	 	 	 
	 		(i) 	
      all trade-marks, service marks, trade-mark and service
      mark registrations, trade- mark and service mark applications, rights
      under registered user agreements, logos, trade names and other trade-mark
      and service mark rights,

	 	 	 	 
	 		(ii) 	
      all copyrights and applications therefor, including all
      computer programs and software (in both source and object code
      formats);

	 	 	 	 
	 		(iii) 	
      related documentation to the intellectual property
      described in (ii) above, including that which documents the design and
      execution of computer programs and software, and rights to any of the
      foregoing,

	 	 	 	 
	 		(iv) 	
      all inventions, patents, patent applications, patent
      rights (including any patents issuing on such applications or rights),
      innovation patents and neighbouring rights,

	 	 	 	 
	 		(v) 	
      all licenses, sub-licenses and franchises,

	 	 	 	 
	 		(vi) 	
      all trade secrets and proprietary and confidential
      information,

	 	 	 	 
	 		(vii) 	
      all industrial designs and registrations thereof and
      applications therefor, and

	 	 	 	 
	 		(viii) 	
      all patterns, plans, designs, research data, other
      proprietary know-how, processes, drawings, technology, inventions,
      formulae, specifications, performance data, quality control information,
      unpatented blue prints, flow sheets, equipment and parts lists,
      instructions, manuals, records and procedures including testing and
      inspection techniques and procedures, and all licenses and other contracts
      relating to any of the foregoing;

	 	 	 	 
	 	(dd) 	
      “in writing” means written information including
      documents, files, software, records and books made available, delivered or
      produced to one Party by or on behalf of the other Party;

	 	 	 	 
	 	(ee) 	
      “Laws” means all laws, statutes, codes,
      ordinances, decrees, rules, regulations, by laws, statutory rules,
      principles of law, published policies and guidelines, judicial or arbitral
      or administrative or ministerial or departmental or regulatory judgments,
      orders, decisions, rulings or awards, including general principles of
      common and civil law, and terms and conditions of any grant of approval,
      permission, authority or license of any
Government

- 4 - 

	 		
      Authority, statutory body (including the TSXV) or self
      regulatory authority, and the term “applicable” with respect to
      such Laws and in the context that refers to one or more Persons, means
      that such Laws apply to such Person or Persons or its or their business,
      undertaking, property or securities and emanate from a Government
      Authority (or any other Person) having jurisdiction over the aforesaid
      Person or Persons or its or their business, undertaking, property or
      securities;

	 	 	 	 
	 	(ff) 	
      “LOI” means that letter of intent entered into
      between ST and Park Place dated for reference June 7, 2007;

	 	 	 	 
	 	(gg) 	
      “Material Adverse Change” means any change in the
      financial condition, operations, assets, liabilities, or business of a
      Party and its Subsidiaries, considered as a whole, which is materially
      adverse to the business of such Party and its Subsidiaries, considered as
      a whole, other than a change:

	 	 	 	 
	 		(i) 	
      which arises out of or in connection with a matter that
      has been publicly disclosed by such Party;

	 	 	 	 
	 		(ii) 	
      resulting from conditions affecting the mining and
      exploration industry as a whole; or

	 	 	 	 
	 		(iii) 	
      resulting from general economic, financial, currency
      exchange, securities or commodity market conditions in Canada, the United
      States or elsewhere;

	 	 	 	 
	 	(hh) 	
      “Material Adverse Effect” means any event, change
      or effect that is or would reasonably be expected to be materially adverse
      to the financial condition, operations, assets, liabilities, or business
      of a Party and its Subsidiaries, considered as a whole, provided, however,
      that a Material Adverse Effect shall not include an adverse effect
      resulting from a change:

	 	 	 	 
	 		(i) 	
      which arises out of or in connection with a matter that
      has been publicly disclosed by such Party;

	 	 	 	 
	 		(ii) 	
      resulting from conditions affecting the forestry industry
      as a whole; or

	 	 	 	 
	 		(iii) 	
      resulting from general economic, financial, currency
      exchange, securities or commodity market conditions in Canada, the United
      States or elsewhere;

	 	 	 	 
	 	(ii) 	
      “material fact” has the meaning ascribed thereto
      in the Securities Act (British Columbia) as the same has been and
      may hereafter from time to time be modified;

	 	 	 	 
	 	(jj) 	
      “Party” means each of Park Place, ST and
    Subco;

	 	 	 	 
	 	(kk) 	
      “Person” includes any individual, firm,
      partnership, joint venture, venture capital fund, association, trust,
      trustee, executor, administrator, legal personal representative, estate,
      group, body corporate, corporation, unincorporated association or
      organization, Government Authority, syndicate or other entity, whether or
      not having legal status;

	 	 	 	 
	 	(ll) 	
      “Personnel Obligations” means any obligations or
      liabilities of a Party or any of its Subsidiaries to pay any amount to its
      or their officers, directors, employees and consultants, other than for
      salary, bonuses under its or their existing bonus
  arrangements

- 5 - 

and directors’ fees in the ordinary
course, in each case in amounts consistent with historic practices and
obligations or liabilities in respect of insurance or indemnification
contemplated by this Agreement or arising in the ordinary and usual course of
business and, without limiting the generality of the foregoing, Personnel
Obligations shall include the obligations of such Party or any of its
Subsidiaries to directors, officers, employees and consultants: 

	 	(i) 	
      for payments on or in connection with any change in
      control of such Party pursuant to any change in control agreements,
      policies or arrangements, including the payments specified herein;
    and

	 	 	 
	 	(ii) 	
      for any special incentive bonus payments and
      commitments;

	 	(mm) 	
      “Registrar” means the registrar appointed under
      Section 111 of the Act;

	 	 	 
	 	(nn) 	
      “Regulatory Approval” means any approval, consent,
      waiver, permit, order or exemption from any Government Authority having
      jurisdiction or authority over any Party or the Subsidiary of any Party
      which is required or advisable to be obtained in order to permit the
      Business Combination to be effected and “Regulatory Approvals”
      means all such approvals, consents, waivers, permits, orders or
      exemptions;

	 	 	 
	 	(oo) 	
      “Resulting Issuer” means ST upon completion of the
      Business Combination;

	 	 	 
	 	(pp) 	
      “Resulting Issuer Share” has the meaning ascribed
      in Section 2.1(e)(ii) hereof;

	 	 	 
	 	(qq) 	
      “Securities Authorities” means the Securities
      regulatory authorities having jurisdiction over ST;

	 	 	 
	 	(rr) 	
      “Subco”, means 0794403 B.C. Ltd. a corporation
      incorporated under the laws of the Province of British Columbia;

	 	 	 
	 	(ss) 	
      “Subco Shares” means the common shares in the
      capital of Subco;

	 	 	 
	 	(tt) 	
      “Subsidiary” has the meaning ascribed thereto in
      the Act;

	 	 	 
	 	(uu) 	
      “ST” means ST Online Corp., a corporation
      incorporated under the laws of the State of Nevada;

	 	 	 
	 	(vv) 	
      “ST Financial Statements” has the meaning ascribed
      thereto in subsection Section 4.2(n) hereof;

	 	 	 
	 	(ww) 	
      “ST Shareholder” means a registered holder of ST
      Shares, from time to time, and “ST Shareholders” means all of such
      holders;

	 	 	 
	 	(xx) 	
      “ST Shares” means the common shares in the capital
      of ST;

	 	 	 
	 	(yy) 	
      “Taxes” has the meaning ascribed hereto in
      subsection Section 4.1(l) hereof; and

	 	 	 
	 	(zz) 	
      “OTCBB” means the OTC Bulletin
  Board.

- 6 - 

Section 1.2 Singular, Plural, etc. 

                     
Words importing the singular number include the plural and vice versa
and words importing gender include the masculine, feminine and neuter genders.

Section 1.3 Deemed Currency 

                     
In the absence of a specific designation of any currency any
undescribed dollar amount herein shall be deemed to refer to Canadian
dollars.

Section 1.4 Headings, etc.

                     
The division of this Agreement into Articles and Sections, the
provision of a table of contents hereto and the insertion of the recitals and
headings are for convenience of reference only and shall not affect the
construction or interpretation of this Agreement and, unless otherwise stated,
all references in this Agreement to Articles and Sections refer to Articles and
Sections of and to this Agreement in which such reference is made. 

Section 1.5 Date for any Action

                     
In the event that any date on which any action is required to be taken
hereunder by any of the Parties hereunder is not a Business Day, such action
shall be required to be taken on the next succeeding day that is a Business Day.

Section 1.6 Governing Law

                     
This Agreement shall be governed by and interpreted in accordance with
the Laws of the Province of British Columbia and the Laws of Canada applicable
therein. 

Section 1.7 Attornment 

                     
The Parties hereby irrevocably and unconditionally consent to and
submit to the courts of the Province of British Columbia for any actions, suits
or proceedings arising out of or relating to this Agreement or the matters
contemplated hereby (and agree not to commence any action, suit or proceeding
relating thereto except in such courts) and further agree that service of any
process, summons, notice or document by single registered mail to the addresses
of the Parties set forth in this Agreement shall be effective service of process
for any action, suit or proceeding brought against either Party in such court.
The Parties hereby irrevocably and unconditionally waive any objection to the
laying of venue of any action, suit or proceeding arising out of this Agreement
or the matters contemplated hereby in the courts of the Province of British
Columbia and hereby further irrevocably and unconditionally waive and agree not
to plead or claim in any such court that any such action, suit or proceeding so
brought has been brought in an inconvenient forum. 

ARTICLE 2 
THE BUSINESS COMBINATION 

Section 2.1 Business Combination Steps

                     
Park Place and ST agree to effect the combination of their respective
businesses and assets by way of a “three-cornered amalgamation” between a
wholly-owned subsidiary of ST (“Subco”) and Park Place (the
“Amalgamation”). When completed, ST will become the “Resulting
Issuer” with 

- 7 - 

the name “Park Place Energy Corp.” or such other similar name
as may be accepted by the relevant regulatory authorities and approved by the
board of directors of ST. Each Party hereby agrees that as soon as reasonably
practicable after the date hereof or at such other time as is specifically
indicated below in this Section 2.1, and subject to the terms and conditions of
this Agreement, it shall take the following steps indicated for it: 

	 	(a) 	
      ST shall take such steps as shall be necessary in advance
      of the Amalgamation to subdivide its issued and outstanding shares on an
      8:1 basis and to change its name to Park Place Energy Corp.

	 	 	 	 
	 	(b) 	
      ST shall take such steps as shall be necessary
  to

	 	 	 	 
	 		(i) 	
      cause Scott Pedersen to agree to transfer the shares of
      ST held by him to ST in consideration of the sum of $10,000 and the
      transfer of all of ST’s right, title and interest to the “Simple Tennis”
      website and related intellectual property and in connection therewith to
      provide a release to ST;

	 	 	 	 
	 		(ii) 	
      cause Elena Avdasseva to sell the shares of ST held by
      her to David Stadnyk or his nominee for $10,000, it being acknowledged
      that 90% of such shares will then be surrendered for cancellation. In
      connection with such sale ST shall cause Elena Avdasseva to provide
      release to ST; and

	 	 	 	 
	 		(iii) 	
      cause Oxana Avdasseva to resign as a director and officer
      of ST and in connection therewith provide a release to ST.

	 	 	 	 
	 	(c) 	
      Park Place shall call and convene the Park Place Meetings
      for the purpose of considering and approving the continuation of Park
      Place for Alberta to British Columbia and the Amalgamation described in
      this Agreement and the Amalgamation Agreement (together, the
      “Documents”);

	 	 	 	 
	 	(d) 	
      Park Place and Subco hereby agree to amalgamate by way of
      statutory amalgamation under the Act on the terms and subject to the
      conditions contained in this Agreement and the Amalgamation Agreement, and
      ST hereby covenants and agrees to issue the ST Shares required to be
      issued in connection with the Amalgamation;

	 	 	 	 
	 	(e) 	
      The Parties shall cause the Amalgamation Application to
      be filed to effect the Amalgamation. Under the Amalgamation:

	 	 	 	 
	 		(i) 	
      Park Place and Subco will amalgamate under the provisions
      of the Act and continue as “Park Place Energy Inc.”
    (“Amalco”);

	 	 	 	 
	 		(ii) 	
      Holders of outstanding Park Place Shares shall receive
      one (1) ST Share for each two (2) Shares held (such ratio being the
      “Exchange Ratio”), and each such ST Share, after giving
      completion of the Business Combination, is herein called a “Resulting
      Issuer Share”;

	 	 	 	 
	 		(iii) 	
      Each outstanding Subco Share will be exchanged for one
      (1) Amalco Share;

	 	 	 	 
	 		(iv) 	
      Outstanding Park Place Options will entitle the holders
      thereof to acquire Resulting Issuer Shares in accordance with the Exchange
      Ratio;

- 8 - 

	 	(v) 	
      As consideration for the issuance of the ST Shares to
      effect the Amalgamation, Amalco will issue to ST one (1) Amalco Share for
      each ST Share so issued;

	 	 	 
	 	(vi) 	
      All of the property and assets of each of Park Place and
      Subco will be the property and assets of Amalco and Amalco will be liable
      for all of the liabilities and obligations of each of Park Place and
      Subco; and

	 	 	 
	 	(vii) 	
      Amalco will be a wholly-owned subsidiary of
  ST;

	 	(f) 	
      As soon as practicable after the Effective Date, in
      accordance with normal commercial practice, the Resulting Issuer shall
      issue certificates representing the appropriate number of the Resulting
      Issuer Shares to the former Park Place Shareholders. No fractional
      Resulting Issuer Shares will be delivered to any Park Place Shareholder
      otherwise entitled thereto; and

	 	 	 
	 	(g) 	
      The Parties shall take any other action and do anything,
      including the execution of any other agreements, documents or instruments
      that are necessary or useful to give effect to the Business
      Combination.

Section 2.2 Implementation Covenants 

	 	(a) 	
      ST Share Subdivision. ST shall take such steps as
      shall be necessary including securing the requisite Shareholder approval
      so as to effect the subdivision of its outstanding shares on an 8:1 basis
      and the change of its name to Park Place Energy Inc.

	 	 	 
	 	(b) 	
      Preparation of Meeting Documentation. Park Place
      and ST shall each prepare documentation required in connection with the
      Park Place Meetings , and deliver such documentation to Park Place
      Shareholders (and Park Place).

	 	 	 
	 	(c) 	
      Preparation of Filings. Park Place and ST shall
      cooperate in the preparation of any application for the orders and the
      preparation of any other documents and taking of all actions reasonably
      deemed by Park Place or ST to be necessary to discharge their respective
      obligations under applicable Laws in connection with the Business
      Combination and all other matters contemplated in the Documents.

	 	 	 
	 	(d) 	
      Amalgamation Agreement, etc. The Parties hereby
      acknowledge that the Amalgamation Agreement shall be substantially in the
      form attached as Schedule “A”. Subco shall, subject to the terms and
      conditions of this Agreement and subject to and following the receipt of
      all Regulatory Approvals, deliver to Park Place the duly executed
      Amalgamation Application and related documents which will be filed by Park
      Place with the Registrar.

Section 2.3 Board of Directors 

                     
Each of the Parties hereby agrees that upon completion of the Business
Combination, the board of directors of the Resulting Issuer shall consist of the
following persons: David Stadnyk and Eric Leslie 

- 9 - 

ARTICLE 3 
PUBLICITY 

Section 3.1 Publicity 

                     
Each of the Parties agrees that, other than as may be required by
applicable Laws, all press releases or other written public or private
statements to the press issued in connection with the Business Combination shall
be mutual press releases or other written public or private statements to the
press of the Parties. 

ARTICLE 4 
REPRESENTATIONS AND WARRANTIES 

Section 4.1 Representations and Warranties of
Park Place 

                     
Park Place hereby represents and warrants to ST and
Subco, and acknowledges that ST and Subco are relying upon such representations
and warranties, as follows: 

	 	(a) 	
      Park Place has been duly incorporated and is validly
      existing under the laws of the Province of Alberta and is current and
      up-to-date with all filings required to be made by it in such
      jurisdiction;

	 	 	 
	 	(b) 	
      Park Place has full corporate power, capacity and
      authority to undertake all steps of the Business Combination contemplated
      in the Documents and to carry out its obligations under this
    Agreement;

	 	 	 
	 	(c) 	
      The authorized share capital of Park Place consists of an
      unlimited number of common shares of which 17,991,244 are issued and
      outstanding;

	 	 	 
	 	(d) 	
      Park Place is not party to and has not granted any
      agreement, warrant, option or right or privilege capable of becoming an
      agreement, for the purchase, subscription or issuance of any Park Place
      Shares or securities convertible into or exchangeable for Park Place
      Shares, other than 2,000,000 Park Place Options;

	 	 	 
	 	(e) 	
      Park Place has no associates (as defined in the
      Securities Act (British Columbia) and is not a partner, co-tenant,
      joint venturer or otherwise a participant in any partnership, joint
      venture, co-tenancy or other similarly joint owned business;

	 	 	 
	 	(f) 	
      Park Place has all requisite corporate capacity, power
      and authority, and possesses all material certificates, authority, permits
      and licenses issued by the appropriate state, provincial, municipal or
      federal regulatory agencies or bodies necessary to conduct the business as
      now conducted by it, and to own its assets and is in compliance in all
      material respects with such certificates, authorities, permits or
      licenses. None of Park Place or its Subsidiaries has received any notice
      of proceedings relating to the revocation or modification of any such
      certificate, authority, permit or license which, singly or in the
      aggregate, if the subject of an unfavourable decision, order, finding or
      ruling, would materially and adversely affect the conduct of the business,
      operations, financial condition, income or future prospects of Park Place
      and its Subsidiaries taken as a whole;

	 	 	 
	 	(g) 	
      Each of the Documents has been or at the Effective Time
      will be, duly authorized, and with respect to this Agreement, executed and
      delivered by Park Place;

- 10 - 

	 	(h) 	
      The entering into and the performance by Park Place of
      the Business Combination contemplated in the Documents:

	 	 	 	 
	 		(i) 	
      do not require any consent, approval, authorization or
      order of any court or governmental agency, body or Governmental Authority,
      other than the Regulatory Approvals and except that which may be required
      under applicable securities and corporate legislation;

	 	 	 	 
	 		(ii) 	
      will not contravene any statute or regulation of any
      Governmental Authority which is binding on Park Place where such
      contravention would have a Material Adverse Effect; and

	 	 	 	 
	 		(iii) 	
      will not result in the breach of, or be in conflict with,
      or constitute a default under, or create a state of facts which, after
      notice or lapse of time, or both, would constitute a default under any
      term or provision of the constating documents, by-laws or resolutions of
      Park Place or any mortgage, note, indenture, contract or agreement
      instrument, lease or other document to which Park Place is a party, or any
      judgment, decree or order or any term or provision thereof, which breach,
      conflict or default would have a Material Adverse Effect;

	 	 	 	 
	 	(i) 	
      There are no legal or governmental proceedings pending
      or, to the knowledge of Park Place, contemplated or threatened, to which
      Park Place is a party or to which the property of Park Place is
      subject;

	 	 	 	 
	 	(j) 	
      The audited financial statements of Park Place for the
      period ended December 31, 2007 and the notes thereto and the unaudited
      interim financial statements of Park Place for the period ended March 31,
      2007 (collectively, the “Park Place Financial Statements”) have
      been prepared in accordance with Canadian GAAP, present fairly, in all
      material respects, the financial position of Park Place as at such date,
      and do not omit to state any material fact that is required by Canadian
      GAAP or by applicable Laws to be stated or reflected therein or which is
      necessary to make the statements contained therein not
  misleading;

	 	 	 	 
	 	(k) 	
      There are no material liabilities of Park Place whether
      direct, indirect, absolute, contingent or otherwise which are not
      disclosed or reflected in the Park Place Financial Statements except those
      incurred in the ordinary course of business as of the date hereof, which
      amount to less than $765,925.00;

	 	 	 	 
	 	(l) 	
      All taxes (including income tax, capital tax, payroll
      taxes, employer health tax, workers’ compensation payments, property
      taxes, sales, use, goods and services taxes, value-added taxes, custom and
      land transfer taxes), duties, royalties, levies, imposts, assessments,
      deductions, charges or withholdings and all liabilities with respect
      thereto including any penalty and interest payable with respect thereto
      (collectively, “Taxes”) due and payable by Park Place have been
      paid. All tax returns, declarations, remittances and filings required to
      be filed by Park Place have been filed with all appropriate governmental
      authorities and all such returns, declarations, remittances and filings
      are complete and accurate and no material fact or facts have been omitted
      therefrom which would make any of them misleading. No examination of any
      tax return of Park Place is currently in progress and there are no issues
      or disputes outstanding with any governmental authority respecting any
      Taxes that have been paid, or may be payable, by Park Place and any of
      its

- 11 - 

	 		
      subsidiaries. There are no agreements with any taxation
      authority providing for an extension of time for any assessment or
      reassessment of Taxes with respect to Park Place;

	 	 	 
	 	(m) 	
      Other than as disclosed to ST in writing, there is no
      Person, firm or company acting or purporting to act at the request of Park
      Place, who is entitled to any brokerage or finder’s fee in connection with
      the transactions contemplated herein;

	 	 	 
	 	(n) 	
      To the knowledge of Park Place, after due inquiry, all
      activities of Park Place have been, up to and including the date hereof,
      conducted in compliance, in all material respects, with any and all
      applicable Laws;

	 	 	 
	 	(o) 	
      To the knowledge of Park Place, any and all material
      agreements pursuant to which Park Place holds any of its material assets
      are valid and subsisting agreements in full force and effect, enforceable
      in accordance with their respective terms, Park Place is not in default of
      any of the material provisions of any such agreements, nor has any such
      default been alleged, Park Place is not aware of any material disputes
      with respect thereto and such assets are in good standing under the
      applicable statutes and regulations of the jurisdictions in which they are
      situated, all patent leases and licenses pursuant to which Park Place
      derives its interest in such material assets are in good standing and
      there has been no material default under any such patents, leases or
      licenses and all real or other property taxes required to be paid with
      respect to such assets to the date hereof have been paid;

	 	 	 
	 	(p) 	
      No right in and to any Intellectual Property of Park
      Place that is material to its business as currently conducted has been
      transferred, conveyed or otherwise assigned;

	 	 	 
	 	(q) 	
      Park Place is not bound by or a party to any employment
      contracts other than as disclosed to ST. No current or former director,
      officer, shareholder, employee or independent contractor of Park Place or
      any person not dealing at arm’s length within the meaning of the Income
      Tax Act (Canada) with any such person is indebted to Park Place. To
      the knowledge of Park Place, there are no outstanding labour disputes,
      (whether filed or lodged with Park Place or any other person or
      organization), pending labour disruptions or pending unionization with
      respect to Park Place;

	 	 	 
	 	(r) 	
      Park Place is not bound by or a party to any collective
      bargaining agreement;

	 	 	 
	 	(s) 	
      Since the date of its incorporation, Park Place has not,
      directly or indirectly, declared or paid any dividend or declared or made
      any other distribution on any of its shares or securities of any class,
      or, directly or indirectly, redeemed, purchased or otherwise acquired any
      of its shares or securities or agreed to do any of the
foregoing;

	 	 	 
	 	(t) 	
      There is not, in the constating documents or in any
      agreement, mortgage, note, debenture, indenture or other instrument or
      document to which Park Place is a party any restriction upon or impediment
      to, the declaration or payment of dividends by the directors of Park Place
      or the payment of dividends by Park Place to the holders of its
      securities;

	 	 	 
	 	(u) 	
      Park Place is not party to any loan, bond, debenture,
      promissory note or other instrument evidencing indebtedness (demand or
      otherwise) for borrowed money or any other liability (“Debt
      Instrument”) or any agreement contract or commitment to create, assume
      or issue any Debt Instrument other than the ST Loan (as hereinafter
      defined);

- 12 - 

	 	(v) 	
      Park Place is not a party to or bound or affected by any
      commitment, agreement or document containing any covenant which expressly
      limits the freedom of Park Place to compete in any line of business, or to
      transfer or move any of its assets or operations or which materially or
      adversely affects the business practices, operations or condition of Park
      Place or which would prohibit or restrict Park Place from entering into
      and completing the Business Combination;

	 	 	 
	 	(w) 	
      Park Place is not a party to any agreement nor is Park
      Place aware of any agreement, which in any manner affects the voting
      control of any of the Park Place Shares or other securities of Park
      Place;

	 	 	 
	 	(x) 	
      Park Place is not aware of any pending or contemplated
      change to any applicable Law or governmental position that would
      materially affect the business of Park Place taken as a whole or the legal
      environments under which Park Place operates;

	 	 	 
	 	(y) 	
      Park Place does not have any loan or other indebtedness
      outstanding which has been made to any of its shareholders, officers,
      directors or employees, past or present, or any person not dealing at
      “arm’s length” (as such term is defined in the Income Tax Act
      (Canada)); and

	 	 	 
	 	(z) 	
      No representation, warranty or statement of Park Place in
      this Agreement contains or will contain at the Effective Time any untrue
      statement of a material fact or omits or will omit to state any material
      fact necessary to make the statements contained herein or therein, in
      light of the circumstances under which made, not
  misleading.

Section 4.2 Representations and Warranties of
ST and Subco 

                     
Each of ST and Subco hereby represents and warrants to Park Place, and
acknowledge that Park Place is relying upon these representations and
warranties in connection with the entering into of this Agreement, as
follows:

	 	(a) 	
      ST has been duly incorporated and is validly existing
      under the laws of the State of Nevada and is current and up-to-date with
      all filings required to be made by it in such jurisdiction;

	 	 	 
	 	(b) 	
      Subco has been duly incorporated and is validly existing
      under the laws of the Province of British Columbia and is current and
      up-to-date with all filings required to be made by it in such
      jurisdiction;

	 	 	 
	 	(c) 	
      Each of ST and Subco has full corporate power, capacity
      and authority to undertake all steps of the Business Combination
      contemplated in the Documents and to carry out its obligations under this
      Agreement;

	 	 	 
	 	(d) 	
      The authorized capital of ST consists of 100,000,000
      common shares of which 5,120,150 are issued and outstanding as of the date
      hereof;

	 	 	 
	 	(e) 	
      The authorized capital of Subco consists of an unlimited
      number of common shares, of which one (1) common share is issued and
      outstanding;

	 	 	 
	 	(f) 	
      ST is the registered and beneficial owner of the only
      issued and outstanding common share of Subco and neither ST nor Subco is a
      party or has granted any agreement,

- 13 - 

	 		
      warrant, option or right or privilege capable of becoming
      an agreement, for the purchase, subscription or issuance of any securities
      of Subco or securities convertible into or exchangeable for any securities
      of Subco;

	 	 	 	 
	 	(g) 	
      ST is not party to and has not granted any agreement,
      warrant, option or right or privilege capable of becoming an agreement,
      for the purchase, subscription or issuance of any ST Shares or securities
      convertible into or exchangeable for ST Shares;

	 	 	 	 
	 	(h) 	
      ST is a reporting company under 1934 Act and has timely
      filed all documents required to be filed under the 1934 Act and all such
      filings as of the date of filing compiled in all material respects with
      the requirements of the 1934 Act;

	 	 	 	 
	 	(i) 	
      ST has no associates (as defined in the Securities Act
      (British Columbia)) other than Subco and is not a partner, co-tenant,
      joint venturer or otherwise a participant in any partnership, joint
      venture, co-tenancy or other similarly joint owned business;

	 	 	 	 
	 	(j) 	
      Each of ST and Subco has all requisite corporate
      capacity, power and authority, and possesses all material certificates,
      authority, permits and licenses issued by the appropriate state, or
      federal regulatory agencies or bodies necessary to conduct the business as
      now conducted by it and to own its assets and is in compliance in all
      material respects with such certificates, authorities, permits or
      licenses. None of ST or Subco has received any notice of proceedings
      relating to the revocation or modification of any such certificate,
      authority, permit or license which, singly or in the aggregate, if the
      subject of an unfavourable decision, order, finding or ruling, would
      materially and adversely affect the conduct of the business, operations,
      financial condition, income or future prospects of ST and Subco taken as a
      whole;

	 	 	 	 
	 	(k) 	
      Each of the Documents has been, or at the Effective Time
      will be, duly authorized and, with respect to this Agreement, executed and
      delivered by ST and Subco;

	 	 	 	 
	 	(l) 	
      The entering into and the performance by ST and Subco of
      the transactions contemplated in the Documents:

	 	 	 	 
	 		(i) 	
      do not require any consent, approval, authorization or
      order of any court or governmental agency or body, other than the
      Regulatory Approvals and except that which may be required under
      applicable securities and corporate legislation;

	 	 	 	 
	 		(ii) 	
      will not contravene any statute or regulation of any
      governmental authority which is binding on ST or Subco where such
      contravention would have a Material Adverse Effect; and

	 	 	 	 
	 		(iii) 	
      will not result in the breach of, or be in conflict with,
      or constitute a default under, or create a state of facts which, after
      notice or lapse of time, or both, would constitute a default under any
      term or provision of the constating documents, by-laws or resolutions of
      ST or Subco or any mortgage, note, indenture, contract or agreement,
      instrument, lease or other document to which ST or Subco is a party, or
      any judgment, decree or order or any term or provision thereof, which
      breach, conflict or default would have a Material Adverse
  Effect;

- 14 - 

	 	(m) 	
      There are no legal or governmental proceedings pending
      or, to the knowledge of ST, contemplated or threatened, to which ST or
      Subco is a party or to which the property of ST or Subco is
  subject;

	 	 	 
	 	(n) 	
      The audited financial statements of ST as at September
      30, 2006 and the notes thereto, and the unaudited interim financial
      statements of ST as at March 31, 2007 (collectively, the “ST Financial
      Statements”) have been prepared in accordance with US GAAP, present
      fairly, in all material respects, the financial position of ST as at such
      date, and do not omit to state any material fact that is required by US
      GAAP or by applicable law to be stated or reflected therein or which is
      necessary to make the statements contained therein not
  misleading;

	 	 	 
	 	(o) 	
      ST has outstanding material liabilities, whether direct,
      indirect, absolute or contingent, which amount to less than $25,000, as of
      the date hereof;

	 	 	 
	 	(p) 	
      All Taxes due and payable by ST and Subco have been paid
      or provision made therefor in the financial statements of ST except for
      where the failure to pay such Taxes would not result in a Material Adverse
      Effect for ST and Subco. All tax returns, declarations, remittances
      and filings required to be filed by ST and Subco have been filed with all
      appropriate governmental authorities and all such returns, declarations,
      remittances and filings are complete and accurate and no material fact or
      facts have been omitted therefrom which would make any of them misleading.
      To the knowledge of ST, no examination of any tax return of ST or Subco is
      currently in progress and there are no issues or disputes outstanding with
      any governmental authority respecting any Taxes that have been paid, or
      may be payable, by ST or any of its subsidiaries. There are no agreements
      with any taxation authority providing for an extension of time for any
      assessment or reassessment of Taxes with respect to ST or Subco;

	 	 	 
	 	(q) 	
      There is no person, firm or company acting or purporting
      to act at the request of ST who is entitled to any brokerage or finder’s
      fee in connection with the transactions contemplated in the
    Documents;

	 	 	 
	 	(r) 	
      Each of ST and Subco has conducted and is conducting its
      business in compliance in all material respects with all applicable Laws
      of each jurisdiction in which it carries on business and with all Laws
      material to its operation and neither ST nor Subco has received any notice
      of the revocation or cancellation of, or any intention to revoke or
      cancel, any concessions, licenses, leases or other instruments conferring
      rights to ST or Subco;

	 	 	 
	 	(s) 	
      To the knowledge of ST, after due inquiry, all activities
      of ST and Subco have been, up to and including the date hereof, conducted
      in compliance, in all material respects, with any and all applicable
      Laws;

	 	 	 
	 	(t) 	
      To the knowledge of ST, any and all material agreements
      pursuant to which each of ST and Subco holds any of its material assets
      are valid and subsisting agreements in full force and effect, enforceable
      in accordance with their respective terms, neither ST nor Subco is not in
      default of any of the material provisions of any such agreements including
      without limitation failure to fulfil any payment or work obligation
      thereunder nor has any such default been alleged, ST is not aware of any
      material disputes with respect thereto and such assets are in good
      standing under the applicable statutes and regulations of the
      jurisdictions in which they are situated, all leases, licenses and
      concessions pursuant to

- 15 - 

	 		
      which ST or Subco derives its interest in such material
      assets are in good standing and there has been no material default under
      any such leases, licenses and concessions and all real or other property
      taxes required to be paid with respect to such assets to the date hereof
      have been paid;

	 	 	 
	 	(u) 	
      Neither ST nor Subco is bound by or a party to any
      employment contracts. No current or former director, officer, shareholder,
      employee or independent contractor of ST or Subco or any person not
      dealing at arm’s length within the meaning of the Income Tax Act
      (Canada) with any such person is indebted to ST or Subco, as
      applicable. To the knowledge of ST, there are no outstanding labour
      disputes, (whether filed or lodged with ST or any other person or
      organization), pending labour disruptions or pending unionization with
      respect to ST or Subco;

	 	 	 
	 	(v) 	
      Neither ST nor Subco is bound by or a party to any
      collective bargaining agreement;

	 	 	 
	 	(w) 	
      Since the date of its incorporation ST has not, directly
      or indirectly, declared or paid any dividend or declared or made any other
      distribution on ST Shares or securities of any class, or, directly or
      indirectly, redeemed, purchased or otherwise acquired any ST Shares or
      securities or agreed to do any of the foregoing;

	 	 	 
	 	(x) 	
      There is not, in the constating documents or in any
      agreement, mortgage, note, debenture, indenture or other instrument or
      document to which ST or Subco is a party any restriction upon or
      impediment to, the declaration or payment of dividends by the directors of
      ST or Subco or the payment of dividends by ST or Subco to the holders of
      their respective securities;

	 	 	 
	 	(y) 	
      Neither ST nor Subco is a party to any Debt Instrument or
      any agreement, contract or commitment to create, assume or issue any Debt
      Instrument;

	 	 	 
	 	(z) 	
      Neither ST nor Subco is a party to or bound or affected
      by any commitment, agreement or document containing any covenant which
      expressly limits the freedom of ST or Subco to compete in any line of
      business, or to transfer or move any of its assets or operations or which
      materially or adversely affects the business practices, operations or
      condition of ST and Subco taken as a whole or which would prohibit or
      restrict ST or Subco from entering into and completing the Business
      Combination;

	 	 	 
	 	(aa) 	
      Neither ST nor Subco is a party to any agreement nor is
      ST aware of any agreement, which in any manner affects the voting control
      of any of the securities of ST or Subco;

	 	 	 
	 	(bb) 	
      ST is not aware of any pending or contemplated change to
      any applicable Law or governmental position that would materially affect
      the business of ST and Subco taken as a whole or the legal environments
      under which ST and Subco operate; and

	 	 	 
	 	(cc) 	
      No representation, warranty or statement of ST or Subco
      in the Documents contains or will contain at the Effective Time any untrue
      statement of a material fact or omits or will omit to state any material
      fact necessary to make the statements contained herein or therein, in
      light of the circumstances under which made, not
  misleading.

- 16 - 

Section 4.3 Survival 

                     
For greater certainty, the representations and warranties of each of
Park Place, ST and Subco contained herein shall survive the execution and
delivery of this Agreement and shall terminate and be extinguished on the
earlier of the termination of this Agreement in accordance with its terms and
the Effective Time. 

ARTICLE 5 
CONDUCT OF BUSINESS 

Section 5.1 Conduct of Business by the Parties

                     
Except as required by Law or is otherwise expressly permitted or
specifically contemplated by this Agreement, each of the Parties covenants and
agrees that, during the period from the date of this Agreement until the earlier
of either the Effective Time or the time that this Agreement is terminated by
its terms, unless each of the other Parties shall otherwise agree in writing:

	 	(a) 	
      it shall, and shall cause its Subsidiaries to conduct
      business in, and not take any action except in, the usual and ordinary
      course of business and consistent with past practice, and it shall and
      shall cause its Subsidiaries to use all commercially reasonable efforts to
      maintain and preserve its business organization, assets, employees and
      advantageous business relationships;

	 	 	 	 
	 	(b) 	
      other than as contemplated by this Agreement, it shall
      not directly or indirectly do or permit to occur any of the
    following:

	 	 	 	 
	 		(i) 	
      amend its Governing Documents;

	 	 	 	 
	 		(ii) 	
      declare, set aside or pay any dividend or other
      distribution or payment (whether in cash, shares or property) in respect
      of its shares owned by any Person other than the inter-corporate loans and
      advances;

	 	 	 	 
	 		(iii) 	
      issue, grant, sell or pledge or agree to issue, grant,
      sell or pledge any shares, or securities convertible into or exchangeable
      or exercisable for, or otherwise evidencing a right to acquire shares
      other than as required under the Documents;

	 	 	 	 
	 		(iv) 	
      redeem, purchase or otherwise acquire any of its
      outstanding shares or other securities including, without limitation,
      under an issuer bid;

	 	 	 	 
	 		(v) 	
      split, combine or reclassify any of its shares other than
      as contemplated herein;

	 	 	 	 
	 		(vi) 	
      adopt a plan of liquidation or resolutions providing for
      the liquidation, dissolution, merger, consolidation or reorganization of
      itself or any of its Subsidiaries;

	 	 	 	 
	 		(vii) 	
      reduce its stated capital; or

	 	 	 	 
	 		(viii) 	
      enter into or modify any contract, agreement, commitment
      or arrangement with respect to any of the foregoing, except as permitted
      above;

- 17 - 

	 	(c) 	
      it and its Subsidiaries shall not, other than in the
      ordinary course of business and consistent with past practice, or as
      required or contemplated by this Agreement, without prior consultation
      with and the consent of the other Parties, directly or indirectly do any
      of the following:

	 	 	 	 
	 		(i) 	
      sell, pledge, dispose of or encumber any assets other
      than as contemplated herein;

	 	 	 	 
	 		(ii) 	
      acquire (by merger, amalgamation, consolidation or
      acquisition of shares or assets) any corporation, partnership or other
      business organization or division thereof, or make any investment either
      by purchase of shares or securities, contributions of capital or property
      transfer;

	 	 	 	 
	 		(iii) 	
      acquire any material assets;

	 	 	 	 
	 		(iv) 	
      incur any indebtedness for borrowed money other than
      pursuant to existing facilities other than as contemplated by this
      Agreement, or any other material liability or obligation or issue any debt
      securities or assume, guarantee, endorse or otherwise as an accommodation
      become responsible for, the obligations of any other individual or entity,
      or make any loans or advances, other than the Personnel Obligations and
      fees payable to legal and accounting advisors in the ordinary course and
      fees payable to legal, accounting, engineering and financial advisors in
      connection with the matters and the Business Combination contemplated by
      this Agreement;

	 	 	 	 
	 		(v) 	
      authorize, recommend or propose any release or
      relinquishment of any material contractual right;

	 	 	 	 
	 		(vi) 	
      waive, release, grant or transfer any material rights of
      value or modify or change in any material respect any existing material
      license, lease, contract, production sharing agreement, government land
      concession or other material document;

	 	 	 	 
	 		(vii) 	
      enter into or terminate any hedges, swaps or other
      similar financial instruments or business combination;

	 	 	 	 
	 		(viii) 	
      enter into any agreements with its directors or officers
      or their respective Affiliates other than as shall be approved by the
      other parties hereto; or

	 	 	 	 
	 		(ix) 	
      authorize or propose any of the foregoing, or enter into
      or modify any contract, agreement, commitment or arrangement to do any of
      the foregoing;

	 	 	 	 
	 	(d) 	
      from the date hereof, it will not, without prior
      consultation with and the consent of the other Parties, enter into new
      commitments of a capital expenditure nature or incur any new contingent
      liabilities other than (i) ordinary course expenditures, (ii) expenditures
      required by Law, (iii) expenditures made in connection with the Business
      Combination contemplated in this Agreement, and (iv) capital expenditures
      required to prevent the occurrence of a Material Adverse Effect;

	 	 	 	 
	 	(e) 	
      notwithstanding, for greater certainty, Section 5.1(c),
      in no case shall it or any its Subsidiaries create any new Personnel
      Obligations and, except for payment of the existing Personnel Obligations
      (from which the applicable Party shall make appropriate withholdings as
      required by applicable tax Laws), no Party nor any Party’s
    Subsidiaries

- 18 - 

	 		
      shall grant to any officer or director an increase in
      compensation in any form, grant any general salary increase other than in
      accordance with the requirements of any existing collective bargaining or
      union contracts, grant to any other employee any increase in compensation
      in any form other than routine increases in the ordinary course of
      business consistent with past practices, make any loan to any officer or
      director, or take any action with respect to the grant of any severance or
      termination pay arising from the Business Combination or a change of any
      Party or the entering into of any employment agreement with, any senior
      officer or director, or with respect to any increase of benefits payable
      under its current severance or termination pay policies; and

	 	 	 
	 	(f) 	
      neither it nor any of its Subsidiaries shall adopt or
      amend or make any contribution to any bonus, profit sharing, option,
      deferred compensation, insurance, incentive compensation, other
      compensation or other similar plan, agreement, trust, fund or arrangements
      for the benefit of employees, except as is necessary to comply with the
      Law or with respect to existing provisions of any such plans, programs,
      arrangements or agreements without the consent of the other
  Parties.

ARTICLE 6 
COVENANTS 

Section 6.1 Recommendation of Amalgamation by
Park Place 

                     
The board of directors of Park Place shall recommend to the Park Place
Shareholders the approval of the continuation from Alberta to British Columbia
and Amalgamation and shall not withdraw, modify or qualify (or propose to
withdraw, modify or qualify) in any manner adverse to ST such recommendation or
take any action or make any statement in connection with the Park Place Meetings
or the obtaining of Park Place Shareholder approval that is inconsistent with
such recommendation. 

Section 6.2 Waiver of Notice of Subco
Shareholder Meeting and Resolution in Lieu of Meeting by ST 

                     
ST, as sole shareholder of Subco, shall waive notice of and its
attendance at a meeting of the shareholders of Subco to approve the Amalgamation
and shall sign a resolution in writing of the sole shareholder of Subco
approving the Amalgamation. 

Section 6.3 Representations and Warranties

	 	(a) 	
      Park Place covenants and agrees that from the date hereof
      until the termination of this Agreement it shall not take any action, or
      fail to take any action, which would or may reasonably be expected to
      result in the representations and warranties set out in Section 4.1 being
      untrue in any material respect.

	 	 	 
	 	(b) 	
      Each of ST and Subco covenants and agrees that, from the
      date hereof until the termination of this Agreement it shall not take any
      action, or fail to take any action, which would or may reasonably be
      expected to result in the representations and warranties set out in
      Section 4.2 being untrue in any material respect.

Section 6.4 Notice of Material Change 

	 	(a) 	
      From the date hereof until the termination of this
      Agreement, each Party shall promptly notify the other Parties in writing
      of:

- 19 - 

	 	(i) 	
      any material change (actual, anticipated, contemplated
      or, to the knowledge of such Party or any of its Subsidiaries, threatened,
      financial or otherwise) in the business, affairs, operations, assets,
      liabilities (contingent or otherwise) or capital of such Party and its
      Subsidiaries, taken as whole;

	 	 	 
	 	(ii) 	
      any change in the facts relating to any representation or
      warranty set out in Section 4.1 or Section 4.2 hereof, as applicable,
      which change is or may be of such a nature as to render any such
      representation or warranty misleading or untrue in a material respect;
      or

	 	 	 
	 	(iii) 	
      any material fact which arises and which would have been
      required to be stated herein had the fact arisen on or prior to the date
      of this Agreement.

	 	(b) 	
      Each of the Parties shall in good faith discuss with the
      other any change in circumstances (actual, anticipated, contemplated or,
      to its knowledge threatened, financial or otherwise) which is of such a
      nature that there may be a reasonable question as to whether notice need
      to be given to the other pursuant to this section.

Section 6.5 Non-Solicitation 

                     
None of the Parties shall solicit any offers to purchase its shares or
assets and neither of ST nor Park Place will initiate or encourage any
discussions or negotiations with any third party with respect to such a
transaction or amalgamation, merger, take-over, plan of arrangement or similar
transaction during the period commencing on the date hereof and ending on the
termination of this Agreement. The Parties shall immediately cease and cause to
be terminated any existing discussions or negotiations with any other party
related to any of the foregoing. In the event any of the Parties is approached
in respect of any such transaction, it shall immediately notify the other. 

Section 6.6 Other Covenants 

                     
Each of the Parties covenants and agrees that it shall: 

	 	(a) 	
      use all commercially reasonable efforts to consummate the
      Business Combination and all matters described herein, subject only to the
      terms and conditions hereof and thereof;

	 	 	 
	 	(b) 	
      use all commercially reasonable efforts to obtain all
      appropriate Regulatory Approvals;

	 	 	 
	 	(c) 	
      not take any action or permit any of its Subsidiaries to
      take any action that would render, or may reasonably be expected to
      render, any representation or warranty made by it in this Agreement untrue
      in any material respect at any time prior to the Effective Date or
      termination of this Agreement, whichever is first;

	 	 	 
	 	(d) 	
      not split, consolidate or reclassify any of its
      outstanding securities, nor declare, set aside or pay any dividends on or
      make any other distributions on or in respect of its outstanding
      securities; and

	 	 	 
	 	(e) 	
      not, other than in connection with the Business
      Combination, reorganize, amalgamate or merge with any other person, nor
      acquire by amalgamating, merging or consolidating with, purchasing a
      majority of the voting securities or substantially all of the assets of or
      otherwise, any business or Person which acquisition or other transaction
      would

- 20 - 

reasonably be expected to prevent or
materially delay the Business Combination contemplated hereby. 

ARTICLE 7 
MUTUAL COVENANTS 

Section 7.1 Other Filings 

                     
The Parties shall, as promptly as practicable hereafter, prepare and
file all filings required under any securities Laws, or any other applicable
Laws relating to the Business Combination contemplated hereby. 

Section 7.2 Additional Agreements 

                     
Subject to the terms and conditions of this Agreement and subject to
fiduciary obligations under applicable Laws, each of the Parties hereto agrees
to use all commercially reasonable efforts to take, or cause to be taken, all
action and to do, or cause to be done, all things necessary, proper or advisable
to consummate and make effective as promptly as practicable the Business
Combination contemplated by this Agreement and to cooperate with each other in
connection with the foregoing, including using commercially reasonable efforts:

	 	(a) 	
      to obtain all necessary waivers, consents and approvals
      from other Parties to material agreements, leases and other contracts or
      agreements;

	 	 	 
	 	(b) 	
      to defend all lawsuits or other legal proceedings
      challenging this Agreement or the consummation of the Business Combination
      contemplated hereby;

	 	 	 
	 	(c) 	
      to cause to be lifted or rescinded any injunction or
      restraining order or other order adversely affecting the ability of the
      Parties to consummate the Business Combination contemplated
  hereby;

	 	 	 
	 	(d) 	
      to effect all necessary registrations and other
      filings;

	 	 	 
	 	(e) 	
      to effect all necessary registrations and other filings
      and submissions of information requested by Governmental Authorities;
      and

	 	 	 
	 	(f) 	
      to fulfill all conditions and satisfy all provisions of
      this Agreement.

                     
For purposes of the foregoing, the obligation to use “commercially
reasonable efforts” to obtain waivers, consents and approvals to loan
agreements, leases and other contracts shall not include any obligation to agree
to a materially adverse modification of the terms of such documents or to prepay
or incur additional material obligations to such other Parties. 

ARTICLE 8 
CONDITIONS 

Section 8.1 Mutual Conditions Precedent

                     
The respective obligations of the Parties hereto to complete each step
of the Business Combination contemplated by this Agreement shall be subject to
the satisfaction, on or before the 

- 21 - 

Effective Date, of the following conditions precedent, each of
which may be waived only by the mutual consent of the Parties: 

	 	(a) 	
      each Party being satisfied with the results of a complete
      due diligence review of the other Parties by June 30, 2007, following
      which, in the absence of notice of termination, such condition is deemed
      to be satisfied;

	 	 	 
	 	(b) 	
      there shall not be in force any order or decree
      restraining or enjoining the consummation of the Business
    Combination;

	 	 	 
	 	(c) 	
      this Agreement shall not have been terminated pursuant to
      Article 9;

	 	 	 
	 	(d) 	
      all Regulatory Approvals and corporate approvals shall
      have been obtained;

	 	 	 
	 	(e) 	
      each Party shall not have entered into any transaction or
      contract which would have a material effect on the financial and
      operational condition, or the assets of each Party, excluding those
      transactions or contracts undertaken in the ordinary course of business,
      without first discussing and obtaining the approval of the other
      Parties;

	 	 	 
	 	(f) 	
      the board and the shareholders of Park Place shall have
      adopted all necessary resolutions and all other necessary corporate
      actions shall have been taken by Park Place to permit the consummation of
      the Business Combination; and

	 	 	 
	 	(g) 	
      the ST and Subco boards shall have adopted all necessary
      resolutions and all other necessary corporate actions shall have been
      taken by ST and Subco to permit the consummation of the Business
      Combination;

                     
If any of the above conditions shall not have been complied with or
waived by the Parties on or before the Completion Deadline or, if earlier, the
date required for the performance thereof, then a Party may terminate this
Agreement in circumstances where the failure to satisfy any such condition is
not the result, directly or indirectly, of a breach of this Agreement by the
Party terminating the Agreement. In the event that the failure to satisfy any
one or more of the above conditions precedent results from a material default by
a Party of its obligations under this Agreement and if such condition(s)
precedent would have been satisfied but for such default, such defaulting Party
shall not rely on such failure (to satisfy one or more of the above conditions)
as a basis for its own non-compliance with its obligations under this Agreement.

Section 8.2 Additional Conditions Precedent to
the Obligations of Park Place 

                     
The obligations of Park Place to complete the Business
Combination contemplated by this Agreement shall also be subject to the
satisfaction, on or before the Effective Date, to each of the following
conditions precedent (each of which is for the exclusive benefit of Park
Place and may be waived by Park Place and any one or more of
which, if not satisfied or waived, will relieve Park Place of any
obligation under this Agreement): 

	 	(a) 	
      no Material Adverse Change with respect to ST and Subco
      shall have occurred between the date hereof and the Effective
  Date;

	 	 	 
	 	(b) 	
      ST and Subco shall not have breached, or failed to comply
      with, in any material respect, any of its covenants or other obligations
      under this Agreement, and all representations and warranties of ST and
      Subco contained in this Agreement shall have been true
  and

- 22 - 

	 		
      correct in all material respects as of the date of this
      Agreement and shall not have ceased to be true and correct in any material
      respect thereafter (provided, however, that if the breaching Party has
      been given written notice by Park Place specifying in reasonable detail
      any such misrepresentation, breach or non-performance, the breaching Party
      shall have had three days to cure such misrepresentation, breach or
      non-performance); the president of ST or another officer satisfactory to
      Park Place shall so certify immediately prior to the Effective Date, as
      well as certifying that Subco meets the requirements set out in Section
      178 of the Act in respect of the Amalgamation;

	 	 	 
	 	(c) 	
      the conditions set forth in section 2.1 (a) and (b) shall
      have been satisfied or waived by Park Place; and

	 	 	 
	 	(d) 	
      Park Place shall have a commitment from a group
      acceptable to Park Place to effect an equity financing of ST so as to
      raise a minimum of $2,000,000 at a minimum price of $0.50 per warrant with
      a full warrant having a minimum exercise price of $0.75 per
  share.

                   
If any of the above conditions shall not have been complied with or
waived by the Parties on or before the Completion Deadline or, if earlier, the
date required for the performance thereof, then, subject to the cure provision
provided for in Section 8.2(b), Park Place may terminate this Agreement in
circumstances where the failure to satisfy any such condition is not the result,
directly or indirectly, of a breach of this Agreement by Park Place. In the
event that the failure to satisfy any one or more of the above conditions
precedent results from a material default by Park Place of its obligations under
this Agreement and if such condition(s) precedent would have been satisfied but
for such default, Park Place shall not rely on such failure (to satisfy one or
more of the above conditions) as a basis for its own non-compliance with its
obligations under this Agreement. 

Section 8.3 Additional Conditions Precedent to
the Obligations of ST and Subco

                   
The obligations of ST and Subco to complete each step of the Business
Combination contemplated by this Agreement shall also be subject to the
satisfaction, on or before the Effective Date, of each of the following
conditions precedent (each of which is for the exclusive benefit of ST and Subco
and may be waived by ST and Subco and any one or more of which, if not satisfied
or waived, will relieve ST and Subco of any obligation under this Agreement):

	 	(a) 	
      no Material Adverse Change with respect to Park Place
      shall have occurred between the date hereof and the Effective
  Date;

	 	 	 
	 	(b) 	
      Park Place shall not have breached, or failed to comply
      with, in any material respect, any of its covenants or other obligations
      under this Agreement, and all representations and warranties of Park Place
      contained in this Agreement shall have been true and correct in all
      material respects as of the date of this Agreement and shall not have
      ceased to be true and correct in any material respect thereafter
      (provided, however, that if Park Place has been given written notice by ST
      specifying in reasonable detail any such misrepresentation, breach or
      non-performance, Park Place shall have had three days to cure such
      misrepresentation, breach or non-performance); the president of Park Place
      or another officer satisfactory to ST shall so certify immediately prior
      to the Effective Date, as well as certifying that Park Place meets the
      requirements set out in Section 178 of the Act in respect of the
      Amalgamation; and

- 23 - 

	 	(c) 	
      David Stadnyk or his assignee shall have agreed to
      convert all of the right, title and interest in and to a promissory note
      issued by Park Place in the principal amount of $400,000 into the private
      placement contemplated by Section 8.2(d) herein.

                   
If any of the above conditions shall not have been complied with or
waived by the Parties on or before the Completion Deadline or, if earlier, the
date required for the performance thereof, then, subject to the cure provision
provided for in Section 8.3(b), ST and Subco may terminate this Agreement in
circumstances where the failure to satisfy any such condition is not the result,
directly or indirectly, of a breach of this Agreement by ST or Subco. In
the event that the failure to satisfy any one or more of the above conditions
precedent results from a material default by ST or Subco of its obligations
under this Agreement and if such condition(s) precedent would have been
satisfied but for such default, either Party shall rely on such failure (to
satisfy one or more of the above conditions) as a basis for its own
non-compliance with its obligations under this Agreement. 

ARTICLE 9 
TERMINATION AND AMENDMENT 

Section 9.1 Termination 

                   
This Agreement may be terminated by written notice promptly given to
the other Party hereto, at any time prior to the Effective Date: 

	 	(a) 	
      by mutual agreement in writing by the Parties;

	 	 	 
	 	(b) 	
      if the Effective Date has not occurred by the Completion
      Deadline; or

	 	 	 
	 	(c) 	
      as set forth in Section 8.1, Section 8.2 and Section 8.3
      of this Agreement.

Section 9.2 Effect of Termination 

                   
In the event of the termination of this Agreement as provided in
Section 9.1 hereof, this Agreement shall forthwith have no further force or
effect and there shall be no obligation on the part of ST or Park Place
hereunder except as set forth in Section 9.3 hereof and this Section 9.2, which
provisions shall survive the termination of this Agreement. Nothing herein shall
relieve any Party from liability for any breach of this Agreement. 

Section 9.3 Fees and Expenses 

                   
The Parties hereto shall be responsible for the payment of their own
professional fees (including but not limited to legal and accounting fees) and
other expenses incurred by them in connection with this Agreement. 

Section 9.4 Amendment 

                   
This Agreement may, at any time on or before the Effective Date be
amended by mutual agreement between the Parties hereto. This Agreement may not
be amended except by an instrument in writing signed by the appropriate officers
on behalf of each of the Parties hereto. 

- 24 - 

Section 9.5 Waiver 

                   
A Party may (i) extend the time for the performance of any of the
obligations or other acts of the other Party, (ii) waive compliance with any of
the other Party’s agreements or the fulfillment of any of its conditions
contained herein or (iii) waive inaccuracies in another Party’s representations
or warranties contained herein or in any document delivered by the other Party
hereto; provided, however, that any such extension or waiver shall be valid only
if set forth in an instrument in writing signed on behalf of such Party. 

ARTICLE 10 
GENERAL 

Section 10.1 Notices 

                   
All notices and other communications given or made pursuant hereto
shall be in writing and shall be deemed to have been duly given or made as of
the date delivered or sent if delivered personally or sent by facsimile or
electronic mail or sent by prepaid overnight courier to the Parties at the
following addresses (or at such other addresses as shall be specified by the
Parties by like notice): 

                   
if to Park Place: 

Park Place Energy Inc.

#1200 – 666 Burrard Street 
Vancouver, BC V6C 2X8 

Attention:          
David Stadnyk 

if to ST or Subco: 

ST Online Corp.

359-240th Street 
Langley, BC V3A 6H5

Attention:          
Scott Pedersen 

Section 10.2 Assignment 

                   
Except as expressly permitted by the terms hereof, neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by either of the Parties hereto without the prior written consent of
the other Party. 

Section 10.3 Complete Agreement 

                   
This Agreement sets forth the entire understanding between the Parties
hereto and supersedes all prior agreements, arrangements and communications,
whether oral or written, with respect to the subject matter hereof, including
but not limited to, the Letter of Intent dated June 7, 2007, as extended,
between Park Place and ST. No other agreements, representations, warranties or
other matters, whether oral or written, shall be deemed to bind the Parties
hereto with respect to the subject matter hereof. 

- 25 - 

Section 10.4 Further Assurances 

                   
Each Party hereto shall, from time to time, and at all times hereafter,
at the request of the other Party hereto, but without further consideration, do
all such further acts and execute and deliver all such further documents and
instruments as shall be reasonably required in order to fully perform and carry
out the terms and intent hereof. 

Section 10.5 Severability 

                   
Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable Law.
Any provision of this Agreement that is invalid or unenforceable in any
jurisdiction shall be ineffective to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining
provisions hereof, and any such invalidity or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. 

Section 10.6 Counterpart Execution 

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

Section 10.7 Investigation by Parties 

                   
No investigations made by or on behalf of either Party or any of their
respective authorized agents at any time shall have the effect of waiving,
diminishing the scope of or otherwise affecting any representation, warranty or
covenant made by the other Party in or pursuant to this Agreement. 

                   
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed as of the date first written above by their respective officers
thereunto duly authorized. 

	 	PARK PLACE ENERGY INC. 
	 	  	  
	 	By: 	/s/ David Stadnyk 
	 	 	Name: David Stadnyk  
	 	  	Title: President & CEO 

- 26 - 

	 	ST ONLINE CORP. 
	 	  	
	 	By: 	/s/ Scott Pedersen 
	 	  	Name: Scott Pedersen 
	 	 	Title: President 
	 	  	
	 	  	
	 	  	
	 	0794403 B.C. LTD. 
	 	  	
	 	By: 	/s/ Scott Pedersen 
	 	  	Name: Scott Pedersen 
	 	 	Title: Director 

SCHEDULE “A” 
AMALGAMATION AGREEMENT

(Attached) 

AMALGAMATION AGREEMENT 

 

This Amalgamation Agreement dated ________________, 2007. 

AMONG: 

  
    
      
        PARK PLACE ENERGY INC., a company continued
          under the BCBCA (as defined below) 

        (“Park Place”) 

      

    

  

AND 

  
    
      
        0794403 B.C. LTD., a company incorporated under
          the BCBCA 

        (“Subco”) 

      

    

  

AND 

  
    
      
        ST ONLINE CORP., a company incorporated under
          the laws of the State of Nevada 

        (“ST”) 

      

    

  

WHEREAS: 

A.                 
Park Place, Subco and ST have entered into a Business Combination
Agreement (as defined below) pursuant to which the business and assets of Park
Place will be combined with those of ST; 

B.                
The authorized share capital of Park Place consists of an unlimited
number of common shares, of which, 16,511,244 Park Place Shares are issued and
outstanding at the date hereof as fully paid and non-assessable; 

C.                
The authorized share capital of Subco consists of an unlimited number
of common shares, of which one (1) Subco Share (as defined below) is issued and
outstanding at the date hereof as fully paid and non-assessable, and is held by
ST; 

D.                
The authorized share capital of ST consists of 100,000,000 common
shares, of which 5,120,650 common shares are issued and outstanding at the date
hereof as fully paid and non-assessable; 

E.                
ST shall issue to each registered holder of Park Place Shares one-half
(1⁄2) a ST Share (as defined below) for each Park Place Share held; 

F.                 
Subco and Park Place, acting under the authority contained in the
BCBCA, have agreed to amalgamate upon the terms and conditions hereinafter set
out as of the date shown on the Certificate of Amalgamation (as defined
below);

- 2 - 

G.        
        It is desirable that the
Amalgamation (as defined below) should be effected. 

         
NOW THEREFORE in consideration of the mutual covenants and agreements
contained herein and other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged) the parties agree as follows:

1.                    
Interpretation 
                                       
In this Agreement, including the recitals: 

(a)          
“Agreement” means this amalgamation agreement, its recitals and schedules, and
any amendment made to this Agreement; 

(b)          
“Park Place Shareholder” means a registered holder of Park Place
Shares, from time to time, and “Park Place Shareholders” means all of such
holders; 

(c)          
“Park Place Shares” means the common shares in the capital of Park Place;

(d)          
“Amalco” means the corporation resulting from the Amalgamation and continuing
the corporate existence of the Amalgamating Corporations (as defined below)
under the name “Park Place Energy Inc.”; 

(e)          
“Amalco Shareholder” means a registered holder of Amalco Shares, from
time to time, and “Amalco Shareholders” means all of such holders; 

(f)          
“Amalco Shares” means the common shares in the capital of Amalco;

(g)          
“Amalgamating Corporation” means each of Subco and Park Place and “Amalgamating
Corporations” means both of them; 

(h)          
“Amalgamation” means the amalgamation of the Amalgamating Corporations pursuant
to the provisions of the BCBCA in the manner contemplated in and pursuant to
this Agreement; 

(i)          
“Amalgamation Application” means the amalgamation application giving effect to
the Amalgamation to be filed with the Registrar appointed under the BCBCA
pursuant to this Agreement; 

(j)          
“BCBCA” means the Business Corporations Act (British Columbia), as
amended; 

(k)          
“Business Combination” means the series of transactions, as detailed in the
Business Combination Agreement, through which the businesses of ST and Park
Place will be combined, including the Amalgamation; 

(l)          
“Business Combination Agreement” means the business combination agreement dated
June 10, 2007 among Park Place, Subco and ST; 

(m )         
  “Certificate of Amalgamation” means the certificate of amalgamation
  to be issued by the Registrar appointed under the BCBCA in respect of the Amalgamation;

- 3 - 

(n)          
“Effective Date” means the date the Amalgamation Application is filed with the
Registrar appointed under the BCBCA give effect to the Amalgamation; 

(o)          
“Parties” means Park Place, Subco, ST and any other Person who may become a
party to this Agreement; 

(p)          
“Person” means a natural person, partnership, limited liability partnership,
corporation, joint stock company, trust, unincorporated association, joint
venture or other entity, and pronouns have a similarly extended meaning; 

(q)          
“Subco Shares” means the common shares in the capital of Subco; and

(r)          
“ST Shares” means the common shares in the capital of ST subsequent to the
subdivision of such shares on a 8:1 basis; 

(s)          
“ST Shareholder” means a registered holder of ST Shares, from time to time, and
“ST Shareholders” means all of such holders; 

(t)          
“Transfer Agent” means Pacific Stock Transfer Company. 

2.                 Paramountcy 
                             
In the event of any conflict between the provisions of this Agreement
and the provisions of the Business Combination Agreement, the provisions of the
Business Combination Agreement shall prevail. 

3.                 Agreement
to
Amalgamate 
                             
Each of the Parties hereby agrees to the Amalgamation such that the
Amalgamating Corporations shall continue as one corporation under the BCBCA, on
the terms and conditions set out in this Agreement. 

4.                 Amalgamation
Events 
                             
Upon the Amalgamation on the Effective Date: 

(a)          
holders of outstanding Park Place Shares shall receive one-half (1⁄2) of
a ST Share for each Park Place Share held; 

(b)          
each outstanding Subco Share will be exchanged for one (1) Amalco
Share; 

(c)          
as consideration for the issuance of ST Shares to effect the Business
Combination, Amalco will issue to ST one (1) Amalco Share for each ST Share so
issued; 

(d)          
all of the property and assets of each of Park Place and Subco will become the
property and assets of Amalco and Amalco will be liable for all of the
liabilities and obligations of each of Park Place and Subco; and 

(e)          
Amalco will be a wholly-owned subsidiary of ST. 

- 4 - 

5.                 Delivery
of Securities Following
Amalgamation 
                             
As soon as practicable following the completion of the Amalgamation, ST
shall cause the Transfer Agent to send to each Park Place Shareholder, upon
receipt of physical share certificates evidencing their respective Park Place
Shares, where applicable, by ordinary first class mail, certificates evidencing
the ST Shares to which such holder shall have become entitled in accordance with
paragraph 4(a) hereof. 

6.                 Fractional
Shares 
                             
No fractional ST Shares will be issued or delivered to any Park Place
Shareholder otherwise entitled thereto, if any. Instead, the number of ST Shares
issued to each exchanging holder of ST Shares will be rounded down to the
nearest whole number. 

7.                 Name
of
Amalco 
                             
The name of Amalco shall be Park Place Energy Inc. 

8.                 Registered
Office 
                             
Until changed in accordance with the BCBCA, the registered office of
Amalco shall be at PO Box 11117, 1500 Royal Centre, 1055 West Georgia Street,
Vancouver, B.C., V6E 4N7. 

9.                 Business
and
Powers
                             
There shall be no restrictions on the business that Amalco may carry on
or on the powers that Amalco may exercise. 

10.               Authorized
Capital 
                   
The authorized capital of Amalco shall be an unlimited number of common
shares. 

11.               Transfer
Restrictions. 
                             
The right to transfer securities of Amalco shall be restricted.
Securities of Amalco, other than non-convertible debt securities, may not be
transferred unless: 

(a)          
(i)          
the consent of the directors of Amalco is obtained; or

                (ii)          the
  consent of Amalco Shareholders holding not less than 50% of the shares entitled
  to vote at such time is obtained; or

(b)          
in the case of securities, other than shares, which are subject to restrictions
on transfer contained in a security holders’ agreement, such restrictions on
transfer are complied with. 

                   
The consent of the directors or the shareholders in this paragraph is
evidenced by a resolution of the directors or shareholders, as the case may be,
or by an instrument or instruments in writing signed by all of the directors, or
shareholders holding not less than 50% of the shares entitled to vote at such
time, as the case may be. 

- 5 - 

12.              
Stated
Capital 
                             
The stated capital account in the records of Amalco for Amalco Shares
shall be equal to the stated capital attributed to the shares of the
Amalgamating Corporations. 

13.              
Number of
Directors 
                             
The board of directors of Amalco shall consist of not less than one (1)
and not more than fifteen (15) directors, until changed in accordance with the
BCBCA. Until changed by the shareholders of Amalco, or by the directors of
Amalco if authorized by the shareholders of Amalco, the number of directors of
Amalco shall be one (1). 

14.             
 Initial
Directors 
                             
The first director of Amalco shall be the person whose name and
residential address appears below: 

	Name 	Residence 
	  	 
	David Stadnyk 	#1220-666 Burrard Street
  
	  	Vancouver, BC V6C 2X8
  

                             
The first director named above shall hold office from the Effective
Date until the later of the close of the first annual meeting of shareholders of
Amalco and the date on which a successor is elected or appointed. 

15.              
Articles 
                             
The articles of Amalco shall be, to the extent not inconsistent with
this Agreement, the articles of Subco, unless and until repealed or amended.
Prior to the Effective Date, a copy of such articles may be examined at the
offices of Lang Michener LLP, 1500 Royal Centre, 1055 West Georgia Street,
Vancouver, B.C., V6E 4N7. 

16.              
Filing of
Articles 
                             
Following the approval of this Agreement by the shareholders of the
Amalgamating Corporations in accordance with the BCBCA and with the terms of the
Business Combination Agreement, and subject to the satisfaction or waiver of all
conditions precedent set forth in the Business Combination Agreement, ST and
Subco shall file the Articles of Amalgamation with the Director appointed under
the BCBCA, as provided under the BCBCA. 

17.              
Effect of
Amalgamation 
                             
Upon the Effective Date: 

(a)          
the Amalgamating Corporations are amalgamated and continue as Amalco as
contemplated by this Agreement; 

(b)          
Amalco possesses all the property, rights, privileges and franchises
and is subject to all liabilities, including civil, criminal and quasi criminal,
and all contracts, disabilities and debts of each of the Amalgamating
Corporations; 

- 6 - 

(c)          
a conviction against, or ruling, order or judgment in favour or against
an Amalgamating Corporation may be enforced by or against Amalco; and 

(d)          
Amalco shall be deemed to be the party plaintiff or the party
defendant, as the case may be, in any civil action commenced by or against an
Amalgamating Corporation before the Effective Date. 

18.              
Termination 
                             
This Agreement may be terminated by the board of directors of each of
the Amalgamating Corporations, notwithstanding the approval of this Agreement by
the shareholders of the Amalgamating Corporations, at any time prior to the
issuance of the Certificate of Amalgamation and following the termination of the
Business Combination Agreement, without, except as provided in the Business
Combination Agreement, any recourse by any Party hereto or any of their
shareholders or other Persons. 

19.             
 Governing
Law 
                             
This Agreement shall be governed by, and construed in accordance with,
the laws of the Province of British Columbia and the federal laws of Canada
applicable therein. Each Party hereby irrevocably attorns to the jurisdiction of
the courts of the Province of British Columbia in respect of all matters arising
under or in relation to this Agreement. 

20.             
 Further
Assurances 
                             
Each of the Parties agrees to execute and deliver such further
instruments and to do such further reasonable acts and things as may be
necessary or appropriate to carry out the intent of this Agreement. 

21.              
Time of the
Essence 
                             
Time shall be of the essence of this Agreement. 

22.             
 Amendments 
                             
This Agreement may only be amended or otherwise modified by written
agreement executed by the Parties. 

23.              
Counterparts 
                             
This Agreement may be signed in counterparts (including counterparts by
facsimile), and all such signed counterparts, when taken together, shall
constitute one and the same agreement, effective on this date. 

                   
IN WITNESS WHEREOF the Parties have executed this Agreement. 

- 7 - 

	 	PARK PLACE ENERGY INC. 
	 	 	  
	 	 	  
	 	By:	 
	 	 	Name: David Stadnyk 
	 	 	Title: President & CEO 
	 	 	  
	 	 	  
	 	ST ONLINE CORP. 
	 	 	  
	 	 	  
	 	By:	 
	 	 	Name: Scott Pedersen 
	 	 	Title: President 
	 	 	  
	 	 	  
	 	0794403 B.C. LTD. 
	 	 	  
	 	 	  
	 	By:	 
	 	 	Name: Scott Pedersen 
	 	 	Title: DirectorFiled by Automated Filing Services Inc. (604) 609-0244 - Alternet Systems, Inc. - Exhibit 4.1

Exhibit 4.1 

ALTERNET SYSTEMS, INC. 
2007 B RETAINER STOCK 
PLAN FOR
EMPLOYEES, 
DIRECTORS AND CONSULTANTS 

1.      INTRODUCTION. 

This plan shall be known as the "Alternet Systems, Inc. 2007 B
Retainer Stock Plan for Employees, Directors and Consultants" and is hereinafter
referred to as the "Plan". The purpose of the Plan is to enable Alternet
Systems, Inc., a Nevada corporation (the "Company"), to promote the interests of
the Company and its shareholders by (a) attracting and retaining employees
capable of furthering the future success of the Company, providing incentives
for outstanding performance and rewards for such performance; and (b) attracting
and retaining Directors and Consultants capable of furthering the future success
of the Company, and aligning their economic interests more closely with those of
the Company's shareholders, by paying their retainer fees in the form of shares
of the Company's common stock (the "Common Stock") on the terms and conditions
to be agreed between the Company and these persons. 

2.      DEFINITIONS 

The following terms shall have the meanings set forth below:

"BOARD" means the Board of Directors of the Company. 

"CHANGE OF CONTROL" has the meaning set forth in Section 12(d).

"CODE" means the Internal Revenue Code of 1986, as amended, and
the rules and regulations thereunder. References to any provision of the Code or
rule or regulation thereunder shall be deemed to include any amended or
successor provision, rule or regulation. 

"COMMITTEE" means the committee that administers the Plan, as
more fully defined in Section 13. 

"COMMON STOCK" has the meaning set forth in Section 1. 

"COMPANY" has the meaning set forth in Section 1. 

"CONSULTANT" means a person who is contractually obligated as
an independent contractor to provide services to the Company. 

"DEFERRAL ELECTION" has the meaning set forth in Section 6.

"DEFERRED STOCK ACCOUNT" means a bookkeeping account maintained
by the Company for a Participant representing the Participant's interest in the
shares credited to such Deferred Stock Account pursuant to Section 7. 

"DELIVERY DATE" has the meaning set forth in Section 6. 

"DIRECTOR" means a natural person who is a member of the Board
of Directors of the Company. 

"DIVIDEND EQUIVALENT" for a given dividend or other
distribution means a number of shares of Common Stock having a Fair Market
Value, as of the record date for such dividend or distribution, equal to the
amount of cash, plus the fair market value on the date of distribution of any
property, that is distributed with respect to one share of Common Stock pursuant
to such dividend or distribution; such fair market value to be determined by the
Committee in good faith. 

"EFFECTIVE DATE" has the meaning set forth in Section 3. 

1

"EMPLOYEE" means a natural person who is an employee of the
Company, or its subsidiaries. 

"EXCHANGE ACT" has the meaning set forth in Section 13(b). 

"FAIR MARKET VALUE" means the mean between the highest and
lowest reported sales prices of the Company's Common Stock on the last trading
day prior to the date with respect to which the Fair Market Value is to be
determined or such other value as the Company's Board of Directors may, in its
sole discretion, determine. 

"PARTICIPANT" means an individual who is an Employee, Director
or Consultant on the Effective Date or who becomes an Employee, Director or
Consultant thereafter during the term of the Plan. 

"PAYMENT TIME" means the time when a Granted Stock is payable
to a Participant pursuant to Section 5 (without regard to the effect of any
Deferral Election). 

"GRANTED STOCK" has the meaning set forth in Section 5. 

"THIRD ANNIVERSARY" has the meaning set forth in Section 6.

3.      EFFECTIVE DATE OF THE PLAN.

The Plan shall be effective as of June 28, 2007 ("Effective
Date"), provided that it is approved by the Board and the Plan shall terminate
on June 27, 2012 (being a term of five years). 

4.      ELIGIBILITY. 

Each Participant is eligible to participate in the Plan. Each
credit of shares of Common Stock pursuant to the Plan shall be evidenced by a
written agreement duly executed and delivered by or on behalf of the Company and
a Participant, if such an agreement is required by the Company to assure
compliance with all applicable laws and regulations. 

5.      GRANT OF SHARES. 

Commencing on the Effective Date, the Committee may in its
absolute discretion grant such shares of the Common Stock pursuant to this Plan
as the Committee may in its absolute discretion deem appropriate to (a) reward
and incentive Employees; or (b) pay consideration to Directors or Consultants
for their services ("Granted Stock"). 

6.      DEFERRAL OPTION. 

From and after the Effective Date, a Participant may make an
election (a "Deferral Election") on an annual basis to defer delivery of the
Granted Stock so that it is to be delivered: (a) on the date which is three
years after the Effective Date for which it was originally payable ("Third
Anniversary"), (b) on the date upon which the Participant ceases to qualify as a
Participant hereunder for any reason ("Departure Date"), (c) in five equal
annual installments commencing on the Departure Date ("Third Anniversary" and
"Departure Date" each being referred to herein as a "Delivery Date") or in such
other manner as the Participant and the Company may agree. Such Deferral
Election shall remain in effect for each Subsequent Year unless changed,
provided that, any Deferral Election with respect to a particular Subsequent
Year may not be changed less than six (6) months prior to the beginning of such
Subsequent Year and provided, further, that no more than one Deferral Election
or change thereof may be made in any Subsequent Year. 

Any Deferral Election and any change or revocation thereof
shall be made by delivering written notice thereof to the Committee no later
than six (6) months prior to the beginning of the Subsequent Year in which it is
to be effected; provided that, with respect to the Subsequent Year beginning on
the Effective Date, any Deferral Election or revocation thereof must be
delivered no later than the close of business on the thirtieth (30th) day after
the Effective Date. 

2

7.      DEFERRED STOCK ACCOUNTS.

The Company shall maintain a Deferred Stock Account for each
Participant who makes a Deferral Election to which shall be credited, as of the
applicable Payment Time, the number of shares of Common Stock payable pursuant
to the Granted Stock to which the Deferral Election relates. So long as any
amounts in such Deferred Stock Account have not been delivered to the
Participant then on the payment date for any dividend paid or other distribution
made with respect to the Common Stock the Deferred Stock Account shall be
credited, with a number of shares of Common Stock equal to (a) the number of
shares of Common Stock shown in such Deferred Stock Account on the record date
for such dividend or distribution multiplied by (b) the Dividend Equivalent for
such dividend or distribution. 

8.      DELIVERY OF SHARES. 

(a) The shares of Common Stock in a Participant's Deferred
Stock Account with respect to any Granted Stock for which a Deferral Election
has been made (together with dividends attributable to such shares credited to
such Deferred Stock Account) shall be delivered in accordance with this Section
8 as soon as practicable after the applicable Delivery Date. Except with respect
to a Deferral Election pursuant to Section 6(c), or other agreement between the
parties, such shares shall be delivered at one time; provided that, if the
number of shares so delivered includes a fractional share, such number shall be
rounded to the nearest whole number of shares. If the Participant has in effect
a Deferral Election pursuant to Section 6(c), then such shares shall be
delivered in five equal annual installments (together with dividends
attributable to such shares credited to such Deferred Stock Account), with the
first such installment being delivered on the first anniversary of the Delivery
Date. References to a Participant in this Plan shall be deemed to refer to the
Participant's estate or legal guardian, where appropriate. 

(b) The Company may, but shall not be required to, create a
grantor trust or utilize an existing grantor trust (in either case, "Trust") to
assist it in accumulating the shares of Common Stock needed to fulfill its
obligations under this Section 8. However, Participants shall have no beneficial
or other interest in the Trust and the assets thereof, and their rights under
the Plan shall be as general creditors of the Company, unaffected by the
existence or nonexistence of the Trust, except that deliveries of Granted Stocks
to Participants from the Trust shall, to the extent thereof, be treated as
satisfying the Company's obligations under this Section 8. 

9.      SHARE CERTIFICATES;
VOTING AND OTHER RIGHTS. 

The certificates for shares delivered to a Participant pursuant
to Section 8 above shall be issued in the name of the Participant, and from and
after the date of such issuance the Participant shall be entitled to all rights
of a shareholder with respect to Common Stock for all such shares, and the
Participant shall receive all dividends and other distributions paid or made
with respect thereto. 

10.     GENERAL RESTRICTIONS. 

(a) Notwithstanding any other provision of the Plan or
agreements made pursuant thereto, the Company shall not be required to issue or
deliver any certificate or certificates for shares of Common Stock under the
Plan prior to fulfillment of all of the following conditions: 

(i) any registration or other qualification of such shares
under any state, provincial or federal law or regulation, or the maintaining in
effect of any such registration or other qualification which the Committee
shall, upon the advice of counsel, deem necessary or advisable; and 

(ii) obtaining any other consent, approval, or permit from any
state, provincial or federal governmental agency which the Committee shall,
after receiving the advice of counsel, determine to be necessary or advisable.

(b) Nothing contained in the Plan shall prevent the Company
from adopting other or additional compensation arrangements for the
Participants. 

3

11.     SHARES AVAILABLE. 

Subject to Section 12 below, the maximum number of shares of
Common Stock which may in the aggregate be paid as Granted Stocks pursuant to
the Plan is five million (5,000,000). Shares of Common Stock issuable under the
Plan may be taken from treasury shares of the Company or purchased on the open
market. 

12.     ADJUSTMENTS; CHANGE OF CONTROL.

(a) In the event that there is, at any time after the Board
adopts the Plan, any change in corporate capitalization, such as a stock split,
combination of shares, exchange of shares, warrants or rights of offering to
purchase Common Stock at a price below its fair market value, reclassification,
or recapitalization, or a corporate transaction, such as any merger,
consolidation, separation, including a spinoff, or other extraordinary
distribution of stock or property of the Company, any reorganization or any
partial or complete liquidation of the Company (each of the foregoing a
"Transaction"), in each case other than any such Transaction which constitutes a
Change of Control (as defined below), (i) the Deferred Stock Accounts shall be
credited with the amount and kind of shares or other property which would have
been received by a holder of the number of shares of Common Stock held in such
Deferred Stock Account had such shares of Common Stock been outstanding as of
the effectiveness of any such Transaction, (ii) the number and kind of shares or
other property subject to the Plan shall likewise be appropriately adjusted to
reflect the effectiveness of any such Transaction and (iii) the Committee shall
appropriately adjust any other relevant provisions of the Plan and any such
modifications by the Committee shall be binding and conclusive on all persons.

(b) If the shares of Common Stock credited to the Deferred
Stock Accounts are converted pursuant to Section 12(a) into another form of
property, references in the Plan to the Common Stock shall be deemed, where
appropriate, to refer to such other form of property, with such other
modifications as may be required for the Plan to operate in accordance with its
purposes. Without limiting the generality of the foregoing, references to
delivery of certificates for shares of Common Stock shall be deemed to refer to
delivery of cash and the incidents of ownership of any other property held in
the Deferred Stock Accounts. 

(c) In lieu of the adjustment contemplated by Section 12(a), in
the event of a Change of Control, the following shall occur on the date of the
Change of Control: (i) the shares of Common Stock held in each Participant's
Deferred Stock Account shall be deemed to be issued and outstanding as of the
Change of Control; (ii) the Company shall forthwith deliver to each Participant
who has a Deferred Stock Account all of the shares of Common Stock or any other
property held in such Participant's Deferred Stock or any other property held in
such Participant's Deferred Stock Account; and (iii) the Plan shall be
terminated. 

(d) For purposes of this Plan, Change of Control shall mean any
of the following events: 

(i) The acquisition by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act")) (a "Person") of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or
more of either (a) the then outstanding shares of common stock of the Company or
(b) the combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors. 

(ii) Individuals who, as of the date hereof, constitute the
Board of the Company cease for any reason to constitute at least a majority of
the Board of Directors of the Company. 

(iii) Approval by the shareholders of the Company of (a) a
complete liquidation or dissolution of the Company or (b) the sale or other
disposition of all or substantially all of the assets of the Company. 

13.     ADMINISTRATION; AMENDMENT AND
TERMINATION 

4

(a) The Plan shall be administered by a committee consisting of
all persons who are current directors of the Company ("Committee"), which shall
have full authority to construe and interpret the Plan, to establish, amend and
rescind rules and regulations relating to the Plan, and to take all such actions
and make all such determinations in connection with the plan as it may deem
necessary or desirable. 

(b) The Board may from time to time make such amendments to the
Plan, including to preserve or come within exemption from liability under
Section 16(b) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), as it may deem proper and in the best interest of the Company provided,
that, if and to the extent required for the Plan to comply with Rule 16b-3
promulgated under the Exchange Act, no amendment to the Plan shall be made more
than once in any six (6) month period that would change the amount, price or
timing of the grants of Common Stock hereunder other than to conform with
changes in the Internal Revenue Code of 1986, as amended, the Employee
Retirement Income Security Act of 174, as amended, or the regulations
thereunder. 

(c) The Board may terminate the Plan at any time by a vote of a
majority of the members thereof but shall terminate on February 28, 2008 at the
latest and no grants made be made pursuant to the Plan after that date. The
provisions of the Plan governing Deferred Stock Accounts shall survive the
termination of the Plan. 

14.     MISCELLANEOUS 

(a) Nothing in the Plan shall be deemed to create any
obligation on the part of the Board to nominate any Director for re-election by
the Company's shareholders or to limit the rights of the shareholders to remove
any Director. 

(b) The Company shall have the right to require, prior to the
issuance or delivery of any share of Common Stock pursuant to the Plan, that a
Participant make arrangements satisfactory to the Committee for the withholding
of any taxes required by law to be withheld with respect to the issuance or
delivery of such shares, including without limitation by the withholding of
shares that would otherwise be so issued or delivered, by withholding from any
other payment due to the Participant, or by a cash payment to the Company by the
Participant. 

15.     GOVERNING LAW 

The Plan and all actions taken thereunder shall be governed by
and construed in accordance with the laws of the State of Nevada. 

ALTERNET SYSTEMS, INC. 

 

By: /s/ Patrick
Fitzsimmons                              
Patrick
Fitzsimmons 
President and Director 

5

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