Document:

EXHIBIT 10.207

                      FORBEARANCE AND AMENDATORY AGREEMENT

         THIS FORBEARANCE AND AMENDATORY AGREEMENT ("Forbearance and Amendatory
Agreement") is made and entered into as of May 15, 2001, by and among CATALINA
LIGHTING, INC., a Florida corporation ("Domestic Borrower"), CATALINA
INTERNATIONAL PLC, a limited company organized under the laws of England and
Wales (Registered in England No. 03949382) ("Holdings Borrower"), and RING
LIMITED (formerly known as Ring PLC), a limited company organized under the laws
of England and Wales (Registered in England No. 29796) ("Sterling Borrower";
Domestic Borrower, Holdings Borrower and Sterling Borrower are collectively
referred to herein as the "Borrowers" and individually as a "Borrower"),
SUNTRUST BANK, a Georgia banking corporation ("SunTrust"), and the other banks
and lending institutions that are signatories to this Amendment (SunTrust and
such other banks and lending institutions, collectively, the "Lenders"),
SUNTRUST BANK, in its capacities as Administrative Agent for the Lenders (the
"Administrative Agent"), as Domestic Issuing Bank (the "Domestic Issuing Bank")
and as Domestic Swingline Lender (the "Domestic Swingline Lender"), and LASALLE
BANK NATIONAL ASSOCIATION, as successor in interest to SunTrust as the UK
Issuing Bank (the "UK Issuing Bank") and as successor in interest to SunTrust as
the UK Swingline Lender (the "UK Swingline Lender").

                               W I T N E S S E T H:
                               - - - - - - - - - -

         WHEREAS, the Borrowers, the Lenders, the Administrative Agent, the
Domestic Swingline Lender, the Domestic Issuing Bank, SunTrust in its capacity
as UK Swingline Lender and SunTrust in its capacity as UK Issuing Bank entered
into that certain Amended and Restated Revolving Credit and Term Loan Agreement,
dated as of September 22, 2000, (as amended by that certain First Amendment to
Amended and Restated Revolving Credit and Term Loan Agreement, dated as of
December 22, 2000, as further amended by that certain Second Amendment to
Amended and Restated Revolving Credit and Term Loan Agreement, dated as of
February 9, 2001, as further amended by that certain Third Amendment to Amended
and Restated Revolving Credit and Term Loan Agreement, dated as of February 9,
2001, as further amended by that certain Fourth Amendment to Amended and
Restated Revolving Credit and Term Loan Agreement, dated as of March 30, 2001,
as further amended, restated, supplemented, or otherwise modified from time to
time, the "Credit Agreement");

         WHEREAS, the Borrowers have acknowledged that an Event of Default has
occurred and is continuing under Section 10.02 of the Credit Agreement as a
result of the Borrowers' failure to maintain pursuant to Section 8.08(a) of the
Credit Agreement a Leverage Ratio of no greater than 6.75:1.00 for the Fiscal
Quarter ending as of March 31, 2001, (the "Existing Event of Default");

<PAGE>

         WHEREAS, the Borrowers have requested and the Administrative Agent and
the Required Lenders have agreed to extend the deadline to complete the
Whitewash Procedure until June 15, 2001;

         NOW, THEREFORE, in consideration of the foregoing premises and the
agreements and undertakings contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:

         1.       Definitions. Unless otherwise specifically defined herein,
each term used herein which is defined in the Credit Agreement shall have the
meaning assigned to such term in the Credit Agreement. Each reference to
"hereof", "hereunder", "herein" and "hereby" and each other similar reference
and each reference to "this Agreement" and each other similar reference
contained in the Credit Agreement shall from and after the date hereof refer to
the Credit Agreement as amended hereby.

         2.       Acknowledgments by Borrowers. Borrowers acknowledge and agree
as follows:

                  (a)      Acknowledgment of Default. Prior to the date hereof:
(i) the Existing Event of Default existed under the Credit Agreement; (ii)
timely, adequate and proper notice of the occurrence of such Existing Event of
Default under the Credit Agreement has been received by Borrowers from Lenders
(and Borrowers waive any requirement that any such notice be in writing); (iii)
all grace periods, if any, applicable to the cure of such Existing Event of
Default after receipt of such notice have expired; (iv) said Existing Event of
Default was continuing without timely cure by Borrowers; and (v) Lenders had not
waived in any respect any or all of such Existing Event of Default or their
respective rights and remedies with respect thereto;

                  (b)      Acknowledgment of Lenders' Right to Accelerate. That
(i) on and as of the date hereof, the Lenders have the right upon termination of
the Forbearance Period (as hereinafter defined) to accelerate and declare the
Obligations under the Credit Agreement to be immediately due and payable and to
make demand upon Borrowers for the payment in full of all such indebtedness;
(ii) such acceleration and demand for payment, if made, would be in all respects
adequate and proper; and (iii) Borrowers waive any and all further notice,
presentment, notice of dishonor or demand with respect to the Obligations under
the Credit Agreement;

                  (c)      Acknowledgment of Indebtedness. That on and as of the
date hereof, (i) Borrowers are indebted to the Lenders in the principal amount
of $53,165,640.19; (ii) all such amounts remain outstanding and unpaid; (iii)
all such amounts are owing and payable in full, without offset, deduction or
counterclaim of any kind or character whatsoever, but are subject to increase,
decrease or other adjustment as a result of any and all interest, fees and other
charges including, without limitation, attorneys' fees and costs of collection,
which are payable to the Lenders under the Credit Documents; and

                  (d)      Acknowledgment that Liabilities Continue in Full
Force and Effect. That the Obligations under the Credit Agreement and all other
respective liabilities and obligations of

<PAGE>

Borrowers to the Lenders under the Credit Documents shall, except as expressly
modified herein, remain in full force and effect, and shall not be released,
impaired, diminished or in any other way modified or amended as a result of the
execution and delivery of this Agreement or by the agreements and undertakings
of the parties contained herein.

                  (e)      Acknowledgment of Perfection of Security Interests.
That on and as of the date hereof, the security interests and liens granted to
SunTrust Bank, as Administrative Agent under the Credit Agreement and the Loan
Documents to secure the Obligations are in full force and effect, are properly
perfected and are enforceable in accordance with the terms of the Credit
Agreement.

         3.       Forbearance by Lenders.

                  (a)      Forbearance Period. At the request of Borrowers,
Lenders agree to waive the Existing Event of Default, as of 12:00 noon,
prevailing Atlanta, Georgia time on May 15, 2001 until the earliest to occur of
the following times: (i) 12:00 noon, prevailing Atlanta, Georgia time on June
15, 2001; (ii) the time at which Borrowers fail to comply in any respect with
their respective covenants to Lenders set forth in Section 8 of the Credit
Agreement; or (iii) the occurrence of any Event of Default under any of the
Credit Documents (the period beginning at 12:00 noon, prevailing Atlanta,
Georgia time on May 15, 2001 and terminating on the earliest of such dates being
hereinafter referred to as the "Forbearance Period"); and

                  (b)      Termination of Forbearance Period. Upon the
termination of the Forbearance Period pursuant to any of clauses (i) through
(iii) of paragraph (a) above, all waivers, deferrals and indulgences granted by
Lenders in paragraph (a) above shall automatically terminate, and Lenders shall
thereupon have, and shall be entitled to exercise, any and all rights and
remedies which either may have upon the occurrence of an Event of Default,
including, without limitation, the Existing Event of Default, and the
Obligations under the Credit Agreement shall become immediately due and payable,
without further notice of any kind.

         4.       Amendment to the Credit Agreement.

                  (a)      Section 8.09(c) of the Credit Agreement is hereby
amended so as to read as follows:

                           (c) The Borrowers (other than the Sterling Borrower)
                  shall use all reasonable endeavors to procure that:

                           (i) the Sterling Borrower delists, converts to a
                  private limited company, completes the Whitewash Procedure,
                  executes the Sterling Borrower Guaranty and the UK Security
                  Amendment Agreement as soon as reasonably and legally
                  practicable and in any event no later than June 15, 2001; and

<PAGE>

                  (ii) each member of the Sterling Borrower Group (other than
                  dormant companies) and any other member of the Sterling
                  Borrower Group which is or becomes a Material Foreign
                  Subsidiary after the date hereof, delists where necessary,
                  converts to a private company, completes the Whitewash
                  Procedures and executes a UK Subsidiary Guaranty Accession
                  Agreement and a UK Security Accession Agreement as soon as
                  reasonably and legally practicable and in any event no later
                  than June 15, 2001 (or in the case of any subsequent Material
                  Foreign Subsidiary within the later of June 15, 2001 or two
                  months of its becoming a Material Foreign Subsidiary).

         5.       Expenses. The Borrowers shall pay, at the time all other
indebtedness owing to Administrative Agent and the Lenders, the legal fees and
other expenses of the Administrative Agent, including, without limitation, legal
fees and other expenses paid or owed to King & Spalding and incurred with
respect to the creation and implementation of this Forbearance and Amendatory
Agreement and the other documents contemplated hereby. Nothing herein shall
limit the provisions relating to expenses of the Credit Agreement or other
Credit Documents.

         6.       Estoppel. Borrowers hereby represent and warrant that there
are no claims, causes of action, suits, debts, liens, obligations, liabilities,
demands, losses, costs and expenses (including attorneys' fees) of any kind,
character or nature whatsoever, known or unknown, fixed or contingent, which
Borrowers may have or claim to have against the Administrative Agent or the
Lenders, which might arise out of or be connected with any act of commission or
omission of the Administrative Agent or the Lenders existing or occurring on or
prior to the date of this Forbearance and Amendatory Agreement, including,
without limitation, any claims, liabilities or obligations arising with respect
to the Credit Agreement and the other Credit Documents.

         7.       Reservation of Rights. The Borrowers acknowledge and agree
that the Administrative Agent and the Lenders (i) have not acquiesced to any
noncompliance by the Borrowers with the exact terms of the Credit Agreement
relating to any Event of Default (other than the temporary waiver of the
Existing Event of Default granted herein), (ii) intend to strictly enforce the
terms of the Credit Agreement and the Credit Documents, in the exercise of their
sole and absolute discretion, and (iii) hereby reserve all rights, powers and
remedies under the Credit Agreement and the other Credit Documents with respect
to the Existing Event of Default (upon termination of the Forbearance Period)
and any other noncompliance with the terms of the Credit Agreement or any of the
other Credit Documents. In no event shall the Lenders' honoring of any requests
or making of any Revolving Loans, be deemed a permanent waiver of any Existing
Event of Default or any other noncompliance with the terms of the Credit
Agreement or any of the other Credit Documents that hereafter may occur.

         8.       Restatement of Representations and Warranties. The Borrowers
hereby restate and renew each and every representation and warranty heretofore
made by it in the Credit Agreement and the other Credit Documents as fully as if
made on the date hereof and with specific reference to this Agreement and all
other loan documents executed and/or delivered in connection herewith, but
excluding therefrom the effect of the Existing Event of Default.

<PAGE>

         9.       Ratification. The Borrowers hereby restate, ratify and
reaffirm each and every term, covenant and condition set forth in the Credit
Agreement and the other Credit Documents effective as of the date hereof.

         10.      Release. Borrowers hereby release, acquit, and forever
discharge each of the Lenders, and each and every past and present subsidiary,
affiliate, stockholder, officer, director, agent, servant, employee,
representative, and attorney of the Lenders, from any and all claims, causes of
action, suits, debts, liens, obligations, liabilities, demands, losses, costs
and expenses (including attorneys' fees) of any kind, character, or nature
whatsoever, known or unknown, fixed or contingent, which the Borrowers may have
or claim to have now or which may hereafter arise out of or connected with any
act of commission or omission of the Lenders existing or occurring prior to the
date of this Agreement or any instrument executed prior to the date of this
Agreement including, without limitation, any claims, liabilities or obligations
arising with respect to the Credit Agreement or the other of the Credit
Documents. The provisions of this Section 11 shall be binding upon the Borrowers
and shall inure to the benefit of the Lenders, and their respective heirs,
executors, administrators, successors and assigns.

         11.      Receipt and Application of Payments. Borrowers acknowledge and
agree that the Administrative Agent shall be entitled during the term of this
Agreement to accept such payments and proceeds as are remitted to it pursuant to
any provision of the Credit Documents or this Agreement, that Administrative
Agent shall be entitled to apply any and all such proceeds and payments against
the liabilities and obligations owned by Borrowers to Lenders in such order of
application as Administrative Agent in its sole and absolute discretion shall
determine proper, and that the acceptance by Administrative Agent of any such
proceeds and payments as are remitted to it pursuant to the Credit Documents or
this Agreement or otherwise shall in no way affect or impair the status of the
indebtedness owed to the Lenders by the Borrowers or be deemed to be a waiver of
any Events of Default or any acquiescence therein.

         12.      Conditions Precedent. This Agreement shall become effective
when and only when the Administrative Agent shall have received executed
originals of this Agreement and upon receipt of all outstanding fees and
expenses owed by the Borrowers.

         13.      Miscellaneous.

                  (a)      Entire Agreement. This Agreement reflects the entire
understanding of the parties with respect to the subject matter herein contained
and supersedes any prior agreements, whether written or oral, in regard thereto.

                  (b)      Full Force and Effect. Except as expressly modified
herein during the Forbearance Period, all terms of the Credit Agreement and the
Credit Documents shall be and shall remain in full force and effect and shall
constitute the legal, valid, binding and enforceable obligations of Borrowers.

<PAGE>

                  (c)      No Waiver. This Agreement is not intended to operate
as, and shall not be construed as, a waiver of any Event of Default, whether
known to the Lenders or unknown, as to which all rights of Lenders shall remain
reserved.

                  (d)      Governing Law. This Agreement shall be governed by,
and shall be construed in accordance with, the laws of the State of Georgia and
all applicable laws of the United States of America.

                  (e)      WAIVER OF RIGHT TO JURY TRIAL. EACH BORROWER WAIVES
TRIAL BY JURY AND CONSENT TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS
IS DEEMED APPROPRIATE A JUDGE OF A THE COURT OF COMPETENT JURISDICTION.

                  (f)      Counterparts. This Agreement may be executed in
multiple counterparts, each of which shall be an original and all of which,
taken together, shall constitute but one and the same agreement among the
parties.

                  (g)      Binding Nature. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns.

                  (h)      Captions. The captions to the Sections and paragraphs
of the Agreement are for the convenience of the parties only, and are not a part
of this Forbearance and Amendatory Agreement.

                  (i)      Time of the Essence. Time is of the essence under
this Forbearance and Amendatory Agreement.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Forbearance and
Amendatory Agreement to be executed and delivered by their respective officers
thereunto duly authorized, all as of the date first above written.

                                         CATALINA LIGHTING, INC.,
                                         as a Borrower

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                         CATALINA INTERNATIONAL PLC,
                                               as a Borrower

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                         RING LIMITED (formerly known as
                                         Ring PLC), as a Borrower

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:

<PAGE>

                                         SUNTRUST BANK,
                                         as Administrative Agent, as Domestic
                                         Issuing Bank, as Domestic Swingline
                                         Lender, UK Swingline Lender, UK Issuing
                                         Bank and as a Lender

                                         By:
                                            ------------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

<PAGE>

                                                 REPUBLIC BANK, as a Lender

                                                 ------------------------------
                                                 By:
                                                 Name:

                                                 BANK UNITED FSB, as a Lender

                                                 ------------------------------
                                                 By:
                                                 Name:

                                                 DRESDNER BANK
                                                 LATEINAMERIKA, AG, MIAMI
                                                 AGENCY, as a Lender

                                                 ------------------------------
                                                 By:
                                                 Name:

                                                 HAMILTON BANK, N.A. as a
                                                 Lender

                                                 ------------------------------
                                                 By:
                                                 Name:

                                                 LASALLE BANK NATIONAL
                                                 ASSOCIATION, as a Lender

                                                 ------------------------------
                                                 By:
                                                 Name:

<PAGE>

                                                 UNION PLANTERS BANK, N.A.,
                                                 as a Lender

                                                 ------------------------------
                                                 By:
                                                 Name:

<PAGE>

                           ACKNOWLEDGMENT AND CONSENT
                                PARENT GUARANTOR

         The undersigned hereby acknowledges receipt of a copy of the foregoing
Forbearance and Amendatory Agreement (the "Amendment"; capitalized terms used
herein and not defined herein shall have the meanings given to them in the
Amendment), consents to the terms and provisions set forth therein, and agrees
that the Parent Guaranty, dated as of July 18, 2000, as amended and supplemented
through the date hereof (the "Parent Guaranty") made by the undersigned, in
favor of the Lenders, the Administrative Agent, the Domestic Issuing Bank, the
Domestic Swingline Lender, the U.K. Issuing Bank and the U.K. Swingline Lender,
will continue in full force and effect without diminution or impairment
notwithstanding the execution and delivery of the foregoing Amendment. The
undersigned further acknowledges and agrees that, upon effectiveness of the
foregoing Amendment and from and after the date thereof, each reference in the
Credit Agreement and all of the Credit Documents shall mean and be a reference
to the Credit Agreement and all other Credit Documents as amended by the
Amendment.

                                            CATALINA LIGHTING, INC., as
                                             Parent Guarantor

                                            By:
                                               ---------------------------------
                                            Name:
                                            Title:Exhibit 10.4

                       MOFFAT RANCH EXPLORATION AGREEMENT
           between Northwest PetroLenm, Inc., and Hadro Resources, Inc
                              Dated April 24, 2001

WHEREAS, Hadro Resources, Inc., a Nevada corporation, ("URF") located at 435
Martin Street, Suite 2000, Blame, WA 9S230 desires to enter into an Exploration
Agreement ("this Agreement") with Northwest Petroleum, Inc., a California
Corporation, ("Northwest") located at 1830 Truxtun Avenue, Suite 218,
Bakersfield, California 93301 ("Northwest") regarding the Moffat Ranch Gas Field
and seismic oil and gas lease options; and

WHEREAS, Northwest is the Lessee of approximately 760 acres of oil and gas lease
mineral interests of the Moffat Ranch Gas Field in Madera County, California and
Northwest is the owner of oil, gas and seismic lease options comprising of
approximately 4522.75 acres and excluding the NW 1/4 of the NW 1/4 of Section 3
and the NE 1/4 of the NE 1/4 of Section 4 that is 320 acres more or less of the
Moffat Ranch Gas Field in Madera County, California more specifically described
in Exhibit "A" known here and throughout as "Moffatt Ranch Leases"; and

WHEREAS Canadian Metals Exploration Limited ("CME") has already entered into an
agreement with Northwest in which CME agreed to acquire interests in the Moffat
Ranch Leases; and

                                       1.
<PAGE>

WHEREAS Northwest is the Oil and Gas Field Operator of the lands described in
Exhibit "A"; and

WHEREAS Northwest has submitted to HR1 geologic data to HRI for their
geologist's review; and

WHEREAS HR1 desires to earn a Working Interest and a Net Revenue Interest in the
Moffat Ranch Leases

NOW THEREFORE, HRI and Northwest agree to the following tenxis and conditions.

     1.   HRI agrees that Northwest shall be the oil and gas fleld operator of
          the Moffat Ranch Leases.

     2.   HRI agrees that Northwest shall be the operator for the Northwest
          Moffat #1 and Northwest Moffat #2 wells under a Model Form 610
          Operating Agreement, COPAS accounting agreement and participation
          agreement dated March 12, 2001 known here and throughout as "Operating
          Agreement" and agrees to sign the Operating Agreement upon payment of
          the wells. In the event of a conflict between the Operating Agreement
          and this Agreement, it is agreed that the provisions of the Operating
          Agreement shall control.

     3.   HRI will earn 37.5% Net Revenue Interest carrying 50% Working Interest
          "cost interest" to the gas sales production point. Then HRI will have
          32.81% Net Revenue Interest carrying 43.75% Working Interest and
          Northwest will be entItled to 4.68% Net Revenue Interest carrying
          6.25% Working Interest Before Payout. After Payout occurs when HRI
          recovers all of its costs of seismic, drilling and completion
          Northwest will revert in for 9.37% Net Revenue Interest carrying
          12.5% Working Interest.

                                       2.

<PAGE>

     4.   HRI agrees to pay Northwest for Land and Leasing according with the
          schedule below and all lease rentals for the Moffat Ranch Leases, if
          not held by production, will be paid by the Working Interest owners
          per their pro rata share of their Working Interest.

     5.   HRI agrees to fund a 3-D Seismic Survey Program over the Moffat Ranch
          Leases on or before July 2, 2001 for $280,000.

     6.   HRI agrees to sign Operating Agreements for the Northwest Moffat #1
          well and the Northwest Moffat #2 well, and provide the drilling
          funds of $500,000 on or before August 15, 2001 subject to the
          independent interpretation of the 3-D Seismic Survey. If HRI elects
          not to drill there is no fault or penalty except that Northwest will
          retain all rights to the Moffat Ranch Leases. The consideration HRI
          agrees to pay Northwest herein shall be in U.S. dollars and is to be
          paid to Northwest by bank wire to Northwest Petroleum, Inc. Account
          #0903 604940, Routing #122000248, Wells Fargo Bank, 5401 California
          Avenue, Bakersfield, CA 93309; Phone (661) 861-6262.

     AMOUNT                   PAYMENT DATES             FOR

     (a) $2,500               April 27, 2001             Upon Signing

     (b) $50,000              May 9, 2001                2-D Seismic and

                                                         Land & Leasing

     (c) $81,500              June 5, 2001               Land and Leasing

     (d) $280,000             July 2, 2001               3-D Seismic Survey

     (e) $500,000             August 15, 2001            Drilling 2 wells

                                       3.

<PAGE>

Should HRI fail to make a payment on any of the above payment dates Northwest
shall send HRI a default notice to pay and HRI will have Five (5) days to cure
the default by making the payment to Northwest's bank account per the above bank
wire instructions, if payment is not received HRI will be in default of this
contract and it will terminate.

     7.   It is agreed between the parties that the estimated drilling and
          completion costs for the above wells, as detailed within an
          Authorization for Expenditure, can be revised 30 days before the
          anticipated spud date to more accurately reflect the current drilling
          and completion costs.

     8.   Northwest agrees to provide HRI with the following:

          (a)  Northwest will provide HRI and its representatives with full and
               continuing access to the Moffat Ranch Leases in accordance with
               the lease terms and all data and information reasonably requested
               by HRI for the purpose of carrying out its Research and
               Development and due diligence investigations hereunder, and will
               endeavor to make available to HRI such of its employees and
               officers as HRI may reasonably request for this purpose, at
               reasonable times.

          (b)  Title documents for the Lands described in Exhibit "A," including
               a schedule of lease rentals payments and dates for the payments
               of the rentals on or before June 1, 2001.

          (c)  Interpreted copies of 2D seismic lines and intepretations within
               Northwest's possession which cover the Lands described ILl
               Exhibit "A".

                                       4.

<PAGE>

          (d)  Geologic information within Northwest's possession which cover
               the Lands described in Exhibit "A."

          (e)  During the progrcss of the drilling of the wells and regardless
               of the depth, HRI shall have access to the well and to all cores,
               cutting, depth, logs, and all other information relative thereto.
               HRI is to be notified immediately in the event any oil or gas
               shows are encountered in drilling the Northwest Moffat #1 well
               and Northwest agrees to provide reasonable notice to HRI prior to
               the running of electric logs, coring or testing to allow HRI to
               have a representative at the well for such operations.

     9.   No Partnership: It is understood that this Agreement shall not create
          the relationship of an association, partnership between the parties
          hereto, and that no act done by any party pursuant to the provisions
          hereto, shall operate to create such relationship, nor shall the
          provisions of the Agreement be construed as creating such
          relationship. Both of the parties hereto further agree that this
          Agreement shall not constitute a partnership as defined in the
          Internal Revenue Code of 1986.

     10.  Conflicts of Interest: Northwest being in the oil and gas exploration
          and development land and leasing business has provided similar
          services for other entities in the area and has future obligations
          under contract to those entities. HRI understands that there may be
          conflicts of interest and agrees to hold Northwest harmless for any
          conflicts of interest. In the event Northwest becomes aware of an
          actual conflict of interest, Northwest agrees to notify HRI of such
          conflict of interest.

                                       5.

<PAGE>

     11.  Notices: All notices authorized or required by the terms of this
          Agreement shall be given in writing by telecopy "Fax", mail or
          telegram, postage or charges prepaid and addressed to the address
          below. The originating notice to be given under any provision hereof
          shall be deemed given only when received by the party to whom such
          notice is directed and the time for such party to give any notice in
          response thereto shall run from date originating notice is received.
          The second or any responsive notice shall be deemed given when
          deposited in the mail or with the delivery of telegraph company, with
          postage or charges prepaid.

     12.  Force Majeure: In the event any party hereof is prevented from
          complying with any of the obligations imposed upon it hereunder, or
          from exercising any of the rights granted to it hereunder, as a result
          if an act of God, government, agency or any other cause, whether
          similar or dissimilar, reasonably proved to be completely beyond the
          control of such party, the time within which said party may perform
          such obligations or exercise such rights shall be extended for a
          period equal to the time during which said party was prevented from
          the performance of such obligations, or the exercise of such rights.
          The party having the difficulty shall take all reasonable steps to
          remedy such condition as rapidly as possible.

     13.  Attorney Fees: Should any party bring any action in a court of
          competent jurisdiction to enforce the terms and provisions of this
          Agreement, the Losing party in such action shall pay the prevailing
          party, in addition to any relief ordered by the court, the prevailing
          party's costs and expenses in connection with the

                                       6.

<PAGE>

          litigation, including reasonable attorney's fees, and such costs
          incurred in connection with any appellate review.

     14.  Governing Law: The governing law of this Agreement shaLl be that of
          the State of California. Venue and jurisdiction to be in the Kern
          County Superior Court, State of California.

     15.  Entire Agreement: The parties acknowledge this Agreement contains the
          entire agreement among the parties and that it supersedes all prior
          understandings or agreements with respect to its subject matter. There
          are no implied covenants in this Agreement nor is there any liability
          of any kind arising from any alleged breach of any implied covenant or
          implied obligation. Any modification to this Agreement must be in
          writing and approved and executed by all parties thereto.

     16.  This Agreement may be executed in counterpart and by fax.

     17.  Subject to the conditions outlined in the Operating Agreement, and
          upon the written consent of the other party hereto to any assignment
          of this Agreement, this Agreement shall ensure to the benefit of and
          be binding on the parties hereto and their respective assigns and
          successors.

                                       7.

<PAGE>

Hadro Resources, Inc. ("HRI")

By:
   --------------------------------------
   Grant Atkins, President

ACKNOWLEDGED AND AGREES THIS 25th DAY OF

APRIL 2001 BY:

Northwest Petroleum, Inc. ("Northwest")

By:  /s/  Michael Anaradian  (MA)
     -------------------------------------
          Michael Anaradian, President

                                       8.

<PAGE>

                                   EXHIBIT "A"

Attached to and made a part of that certain Moffatt Ranch Exploration Agreement
dated April 24, 2001, by and between Northwest Petroleum, Inc., and Hadro
Resources, Inc.

Deseription~

All those certain sections, blocks or tracts of land located in the County of
Madera, State of California, more particularly described as follows:

     BEGINNING at the Northeast corner of Section 6, Township 12 South, Range 15
East,  M.D.B.&M.  thence  South 0 (degrees)  16-1/2'  East  5147.20  feet to the
Southeast corner of Section 6, thence South 0 (degrees) 20-1/2 West 5268.55 feet
to the  Southeast  corner of Section 7, thence  South 89 (degree)  09-1/2'  West
5289.95 feet to the  Southwest  corner of Section 7, thence South  0(degree) 08'
East 5289 feet to the Southeast  corner of Section 13, Township 12 South,  Range
14 East,  M.D.B.&M,  thence  South  89(degree)  38-l/2' West 4695.02 feet to the
center line of Lone Willow  Slough,  thence along the center line of Lone Willow
Slough North 72(degree) 58' West 146.52 feet, South 73(degree) 25' West.  333.72
feet North 47 (degree) 25' West 72.59 feet,  thence  leaving Lone Willow  Slough
South  89(degree)  38-1/2 West 54.84 feet to the Southwest corner of Section 13,
thence North 0 (degree) 04' West 5284.0 feet to the Northwest  corner of Section
13, thence South  89(degree) 36' West 4183.0 feet to a point (said point bearing
North  89(degree) 36' East 1074.30 feet to the Southwest  corner of Section 11),
thence along a fence North 53 (degree) 40' West 4650.75 feet,  North  26(degree)
43' West  2905.23  feet to a point on the North line of  Section 10 (said  point
bearing South 89(degree)  56-1/2 'East 1370.84 feet from the Northwest corner of
Section 10),  thence  continuing  along fence North 26 (degree) 43' West 3130.57
feet to a point  on the West  line of  Section  3 (said  point  bearing  North 0
(degree) 45-1/2' West 2796.60 feet from the Southwest corner of said Section 3),
thence  continuing  along fence North  26(degree)  43' West  2628.55 feet thence
leaving fence North 89(degree)  45-1/2 East 1150.95 feet to the Northeast corner
of Section 4 thence North 89(degree)  52-1/2' East 5277.90 feet to the Northeast
corner of  Section 3,  thence  North  89(degree)  50' East  5277.70  feet to the
Northeast  corner of Section 2, thence North 89(degree) 50' East 5277.60 feet to
the Northeast corner of Section 1, Township 12 South, Range 14 East, M.D.B.& M.,
thence North  89(degree)  47-1/2'  East 5395.65 feet to the point of  beginning,
containing 5282.75 acres, more or less.

EXCLUDING the NW 1/4 of the NW 1/4 of Section 3 and Excluding the NE 1/4 of the
NE1/4 of Section 4 Township 12 South, Range 14 East, MDB&M Excluding all wells
drilled before April 24, 2001.

<PAGE>

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