Document:

Exhibit 10.7

Exhibit 10.7

    SETTLEMENT
      AGREEMENT AND RELEASE

    

    This
      Settlement Agreement and Release (“Agreement”) is entered into between the
      following “Parties:”

    
      	 	
              1.

            	
              Darren
                Hayes (“Hayes”); and

            

    

    
      	 	
              2.

            	
              Quest
                Oil Corporation, a Nevada corporation
                (“Quest”).

            

    

    

    1. RECITALS.

    

    a. RELATIONSHIP.
      The Parties have established a past and present “Consulting Relationship” in
      regard to the operations of Quest.

    

    b. RELEASED
      CLAIMS. The purpose, desire and intention of this Agreement is to fully settle
      and forever resolve any and all: past, present and future claims the Parties
      may
      have against each other for, but not limited to: reimbursement of commissions,
      and/or damages for monetary damages, and/or personal or emotional injury
      (hereinafter collectively referred to as “Claims”) arising from and/or relating
      directly or indirectly to the Consulting Relationship.

    

    2. SETTLEMENT. In
      consideration of the Agreement, Quest agrees to pay to Hayes a total of 225,000
      shares of Quest’s common stock which has been registered for resale on Form S-8.
      Hayes hereby acknowledges his outstanding debt to Quest in the amount of
      32,460.95. 

    

    a. PAYMENT
      SCHEDULE. The settlement payment described herein shall be paid in three
      installments as set forth below. However, at the sole option of Quest,
      additional and/or full payment of the entire amount may be made prior to the
      scheduled payment dates. Any payment made in excess of the amount due in
      accordance with the installment schedule below shall be credited towards the
      next payment(s) and the next payment(s) shall be reduced in an amount equal
      to
      the amount credited. Hayes shall not be entitled to any payments other than
      specifically set forth in this Agreement.

    

    1st
      payment
      of 75,000 shares is due May 1, 2006;

    2nd
      payment
      of 75,000 shares is due June 1, 2006; and

    3rd
      payment
      of 75,000 shares is due on July 1, 2006.

    

    3. RELEASE.
      In consideration of the promises, covenants, representations and warranties
      set
      forth in this Agreement, Hayes on behalf of himself and on behalf of his heirs,
      beneficiaries, predecessors, successors, successors in interest, assigns,
      insurers, and representatives, and all persons, firms, associations and/or
      corporations connected with them, hereby releases and forever discharges Quest,
      including each Quest’s predecessors, successors, assigns, partners, consultants,
      architects, employees, subcontractors, parents, subsidiaries, officers,
      directors, principals, agents, representatives, and all persons, firms,
      associations and/or corporations connected with it, including, without
      limitation, their insurers, sureties, and attorneys, who are, or may ever
      become, liable to Hayes, of and from any and all claims (including claims for
      bodily and/or emotional injury), demands, causes of action, obligations,
      damages, losses, costs, fees, and expenses of every kind and nature whatsoever,
      known or unknown, fixed or contingent, arising from, or in any way related
      to
      the Claims set forth herein.

    

    4. WAIVER
      OF
      SECTION 1542. In signing this Agreement, the Hayes has been advised of,
      understand and knowingly waive his rights under California Civil Code Section
      1542 which provides as follows: A
      GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW
      OR
      SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
      KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
      DEBTOR.

    

    5. NO
      FURTHER CLAIMS. Hayes covenants and agrees never to commence against Quest,
      any
      legal action or proceeding based in whole or in part upon the Claims, demands,
      allegations, and/or injuries released in this Agreement.

    

    6. NO
      ADMISSION. This Agreement shall not be considered as an admission of liability
      by Hayes and by entering into this Agreement, Hayes has not admitted the
      validity of any Claims herein released or at issue.

    

    7. BINDING
      EFFECT. This Agreement shall be binding upon each Party’s past and present
      heirs, beneficiaries, successors, successors in interest, assigns, and
      agents.

    

    8. GOVERNING
      LAW. This Agreement shall be interpreted in accordance with and governed in
      all
      respects by the law of the State of Nevada. Venue for any legal action or
      arbitration shall be San Diego County, State of California.

    

    9. CONFIDENTIALLY. The
      Parties agree that the terms of this Agreement shall be held in confidence
      and
      that no publicity or statement shall be made at any time with regard to the
      settlement, payment, release or other issues involved herein.

    

    10. ENTIRE
      AGREEMENT. This Agreement and Release contains the entire understanding between
      the PARTIES with regard to the matters herein set forth.

    

    11. INDEPENDENT
      INVESTIGATION. The Parties represent and declare that they have carefully read
      this Agreement, know the contents thereof and have signed the Agreement freely
      and voluntarily. Each Party has made such investigation of all the facts
      pertaining to this Agreement and all of the matters pertaining thereto, as
      the
      Party deems necessary and each Party has received independent legal advice
      from
      their attorneys with respect to the advisability of making the settlement
      provided for herein, and with respect to the advisability of executing this
      Agreement and Release.

    

    12. NO
      REPRESENTATIONS. No person, nor officer, agent, partner, employee,
      representative, trustee, or attorney of either Party has made any statement
      or
      representation to the other Party regarding any fact relied upon in entering
      into this Agreement and neither Party relies upon any statement, representation
      or promise of the other Party in executing this Agreement or in making the
      settlement provided for herein, except as stated herein.

    

    14. MUTUAL
      DRAFTING. Each Party warrants and represents that any statute or rule of
      construction (that ambiguities are to be resolved against the drafting party)
      shall not be employed in interpretation of this Agreement.

    

    15. FUTURE
      COOPERATION. The Parties agree that each Party will execute all such further
      and
      additional documents as shall be reasonable, convenient, necessary, or desirable
      to carry out the provisions of this Agreement.

    

    16. SEVERANCE.
      Should any provision of this Agreement be held by a court of competent
      jurisdiction to be invalid, void or unenforceable for whatever reason, the
      remaining provisions not so declared shall, nevertheless, continue in full
      force
      and effect, without being impaired in any manner whatsoever.

    

    17. COUNTERPARTS.
      This Agreement and Release may be executed in several counterparts, in one
      or
      more separate documents, all of which together shall constitute one of the
      same
      instrument, with the same force and effect as though all the Parties had
      executed the same document.

    

    18. CAPTIONS.
      Paragraph titles or captions contained herein are inserted only as a matter
      of
      convenience and for reference, and in no way define, limit, extend, or describe
      the scope of this Agreement

    

    19. COSTS.
      This Agreement shall include any and all claims any Party may have for costs
      and/or attorney fees relating to this Agreement and the Claims released
      herein.

    

    SO
      AGREED
      BY:

    

      

      QUEST
        OIL
        CORPORATION

      

      

      ________________________________________

      By: Joseph
        F.
        Wallen

      Its: Chief
        Financial Officer

      

       

      

      ________________________________________

      Darren
        HayesExhibit 10.8

Exhibit 10.8

     

    

    

    CONSULTING
      AGREEMENT

    

    This
      Consulting Agreement (the “Agreement”), is made on April 24, 2006 and is
      effective as of May 1, 2006 (the “Effective Date”) between Quest Oil
      Corporation, a Nevada corporation, (hereinafter referred to as the “Company”)
      and Luis Leung (the “Consultant”).

    

    WHEREAS,
      the
      Company requires the Services (as defined herein) and as set forth herein;
      

    

    WHEREAS,
      Consultant is qualified to provide the Company with the Services and is desirous
      to perform such Services for the Company; and

    

    WHEREAS,
      the
      Company wishes to induce Consultant to provide the Services and wishes to
      contract with the Consultant regarding the same and compensate Consultant in
      accordance with the terms herein;

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants hereinafter stated, it is agreed as
      follows:

    

    1. APPOINTMENT.

    

    The
      Company hereby engages Consultant and appoints Consultant to the Company’s Board
      of Advisors and Consultant agrees to render the Services to the Company as
      a
      consultant upon the terms and conditions hereinafter set forth.

    

    2. TERM.

    

    Subject
      to Section 8(a), the term of this Consulting Agreement shall begin as of the
      date of the Effective Date, and shall terminate 6 months thereafter
      (hereinafter, the "Term"). 

    

    3. SERVICES.

    

    During
      the term of this Agreement, Consultant shall provide the Company with the
      following “Services.” Services shall be limited to making recommendations and
      offering advice to the Company’s Officers, Directors and other key Company
      personnel. 

    

    a. During
      the term of this Agreement, Consultant shall provide the Company with the
      following “Services”: 

    

    
      	1)  	
              Advise
                internal management with particular focus on deploying and managing
                information technology with the ultimate goal of enabling the Company
                to
                run its business efficiently and
                timely.

            

    

    

    
      	2)  	
              Perform
                Business Requirement analysis with the objective of implementing
                systems
                that will automate and improve Company’s business
                processes.

            

    

    

    
      	3)  	
              Assist
                the Company in the process of Software Selection and Procurement;
                Assist
                the Company in the selection and management of technology service
                providers, including:

            

    

    

    
      	a.  	
              Selection
                and implementation of an Oil & Gas software
                package

            

    

    
      	b.  	
              Integration
                of the Oil & Gas software package with Microsoft Dynamics
                GP

            

    

    
      	c.  	
              Selection
                of service providers that will deliver turn-key solutions for telemetry
                of
                field data (from wells and tanks)

            

    

    
      	d.  	
              Design
                of a solution to control oil tanks with the objective of reducing
                shrinkage and providing a mechanism to reconcile product delivered
                against
                payments received.

            

    

    
      	e.  	
              Integration
                of telemetry system with central accounting data
                repository.

            

    

    
      	f.  	
              Establish
                relationship with expert that will validate the methodology and findings
                from parties that provide seismic data analysis services for exploration
                and valuation purposes.

            

    

    

    
      	4)  	
              Management
                of Company’s infrastructure (hardware and software) and implementation of
                a disaster recovery plan.

            

    

    

    
      	5)  	
              Develop
                management reporting tools that will provide management with timely,
                accurate information. 

            

    

    

    
      	6)  	
              Assist
                the Company in converting its accounting to a single platform and
                bringing
                all its systems (including web site, and Geophysical analysis tools
                and
                others) and information under a centralized management. During the
                course
                of our Engagement, we will deliver the
                following:

            

    

    

    
      	a.  	
              Conversion
                of accounting data from of from Sage Simply Accounting Pro to Microsoft
                Dynamics GP

            

    

    
      	b.  	
              Conversion
                of accounting Petrostar data from Quickbooks to Microsoft Dynamics
                GP

            

    

    
      	c.  	
              Provide
                tools for accountants to analyze and audit past accounting data.
                

            

    

    
      	d.  	
              Implementation
                of Microsoft Dynamics GP, including training of staff to run the
                system

            

    

    
      	e.  	
              Integration
                of accounting system with electronic
                banking.

            

    

    
      	f.  	
              Implementation
                of FRx consolidated financial
                statements.

            

    

    
      	g.  	
              Deployment
                of a Time & Expense web entry solution that includes a timesheet
                approval process and a mechanism to associate costs to specific projects
                and tasks.

            

    

    
      	h.  	
              Deployment
                of technology to allow users to remotely and securely connect to
                its
                systems, enabling staff and management to run the company and obtain
                information from anywhere in the
                world.

            

    

    
      	i.  	
              Transfer
                the Company’s website from a hosted environment to an internal platform;
                allowing more control over its data, contents and
                functionality.

            

    

    
      	j.  	
              Enhance
                the functionality of the Company’s website, enabling it to have staff post
                approved content more easily, not requiring assistance from technical
                personnel.

            

    

    

    
      	7)  	
              Provide
                training and support to Company’s staff on operation of all
                systems.

            

    

    

    
      	8)  	
              Work
                with the Company to develop a long-term technology structure that
                will
                support the company’s growth.

            

    

    

    b. Consultant
      agrees to provide the Services on a timely basis via: meetings with Company
      representatives which may include other professionals; conferences calls with
      Company representatives and other professionals; and/or written correspondence
      and documentation. Consultant cannot guarantee the results on behalf of the
      Company, but shall pursue all avenues that it deems reasonable through its
      network of contacts.

    

    4. COMPENSATION. In
      connection with this Agreement, the foregoing shall be referred to as
“Compensation.” All Compensation due to be delivered and/or paid to Consultant
      pursuant to this Agreement shall be deemed completely earned, due, payable
      and
      non-assessable as of the date the Compensation is due to or vested in
      Consultant. Compensation shall consist of the following:

    

    a. 250,000
      shares of the Company’s common stock registered on Form S-8.

    

    b. “Cashless”
      Common stock purchase warrants, in the form attached hereto as Exhibit A, to
      purchase 250,000 shares of the Company’s common stock at an exercise price equal
      to 110% of the closing market price of the Company’s common stock as of April
      24, 2006. The warrants shall have a term of 5 years and shall vest as of the
      Effective Date.

    

    5. REPRESENTATIONS
      AND WARRANTIES OF COMPANY.

    

      The
      Company hereby represents, warrants and agrees as follows:

      

    a. This
      Agreement has been authorized, executed and delivered by the Company and, when
      executed by the Consultant will constitute the valid and binding agreement
      of
      the Company enforceable against the Company in accordance with its terms, except
      as enforcement thereof may be limited by bankruptcy, insolvency or
      reorganization, moratorium or other similar laws relating to or affecting
      creditors’ rights generally or by general equitable principles. 

      

    b. The
      financial statements, audited and unaudited (including the notes thereto)
      provided to Consultant, (the “Financial Statements”), will present fairly the
      financial position of the Company as of the dates indicated and the results
      of
      operations and cash flows of the Company for the periods specified. Such
      Financial Statements will be prepared in conformity with generally accepted
      accounting principles applied on a consistent basis throughout the periods
      involved except as otherwise stated therein. 

    

    c. The
      Company is validly organized, existing and with active status under the laws
      the
      State of Nevada.

    

    d. The
      securities to be issued to Consultant, if any, have all been authorized for
      issuance and when issued, delivered and tendered to the Consultant by the
      Company will be validly issued, fully paid and non-assessable.

      

    e. Since
      date of the most recent of the Financial Statements, there has not been any
      (A)
      material adverse change in the business, properties, assets, rights, operations,
      condition (financial or otherwise) or prospects of the Company, (B) transaction
      that is material to the Company, except transactions in the ordinary course
      of
      business, (C) obligation that is material to the Company, direct or contingent,
      incurred by the Company, except obligations incurred in the ordinary course
      of
      business, (D) change that is material to the Company or in the common shares
      or
      outstanding indebtedness of the Company, or (E) dividend or distribution of
      any
      kind declared, paid, or made in respect of the common shares. 

    

    f. The
      Company shall be deemed to have been made a continuing representation of the
      accuracy of any and all facts, material information and data which it supplies
      to Consultant and acknowledges its awareness that Consultant will rely on such
      continuing representation in disseminating such information and otherwise
      performing its advisory functions. Consultant in the absence of notice in
      writing from the Company, will rely on the continuing accuracy of material,
      information and data supplied by the Company. Consultant represents that he
      has
      knowledge of and is experienced in providing the aforementioned
      services.

    

    6. INDEMNIFICATION. 
      The
      Company agrees to indemnify the Consultant and hold it harmless against any
      losses, claims, damages or liabilities incurred by the Consultant, in connection
      with, or relating in any manner, directly or indirectly, to the Consultant
      rendering the Services in accordance with the Agreement, unless it is determined
      by a court of competent jurisdiction that such losses, claims, damages or
      liabilities arose out of the Consultant’s breach of this Agreement, sole
      negligence, gross negligence, willful misconduct, dishonesty, fraud or violation
      of any applicable law. Additionally, the Company agrees to reimburse the
      Consultant immediately for any and all expenses, including, without limitation,
      attorney fees, incurred by the Consultant in connection with investigating,
      preparing to defend or defending, or otherwise being involved in, any lawsuits,
      claims or other proceedings arising out of or in connection with or relating
      in
      any manner, directly or indirectly, to the rendering of any Services by the
      Consultant in accordance with the Agreement (as defendant, nonparty, or in
      any
      other capacity other than as a plaintiff, including, without limitation, as
      a
      party in an interpleader action). The Company further agrees that the
      indemnification and reimbursement commitments set forth in this paragraph shall
      extend to any controlling person, strategic alliance, partner, member,
      shareholder, director, officer, employee, agent or subcontractor of the
      Consultant and their heirs, legal representatives, successors and assigns.
      The
      provisions set forth in this Section shall survive any termination of this
      Agreement.

    

    7. COMPLIANCE
      WITH SECURITIES LAWS.
      The
      Company understands that any and all compensation outlined in this Agreement
      shall be paid solely and exclusively as consideration for the aforementioned
      consulting efforts made by Consultant on behalf of the Company as an independent
      contractor. The Parties to be performing the services outlined in this Agreement
      are natural persons. Consultant has been engaged to provide the Company with
      traditional “public company” business, technical and related business services.
      Consultant’s engagement does not involve the marketing of any Company securities
      nor is Consultant being hired to raise money for the Company.

    

    8. MISCELLANEOUS.

    

    a. Termination:
      This
      Agreement may be terminated by either Party for any reason at any time
      (hereinafter referred to as a “Termination”). 

    

    b. Modification:
      This
      Agreement sets forth the entire understanding of the Parties with respect to
      the
      subject matter hereof. This Agreement may be amended only in writing signed
      by
      both Parties.

    

    c. Notices:
      Any
      notice required or permitted to be given hereunder shall be in writing and
      shall
      be mailed or otherwise delivered in person to the Parties at the addresses
      set
      forth above.

    

    d. Waiver:
      Any
      waiver by either party of a breach of any provision of this Agreement shall
      not
      operate as or be construed to be a waiver of any other breach of that provision
      or of any breach of any other provision of this Agreement. The failure of a
      party to insist upon strict adherence to any term of this Consulting Agreement
      on one or more occasions will not be considered a waiver or deprive that party
      of the right thereafter to insist upon adherence to that term of any other
      term
      of this Consulting Agreement.

    

    e. Severability:
      If any
      provision of this Agreement is invalid, illegal, or unenforceable, the balance
      of this Consulting Agreement shall remain in effect. If any provision is
      inapplicable to any person or circumstance, it shall nevertheless remain
      applicable to all other persons and circumstances. If any compensation provision
      is deemed unenforceable or illegal, then in the case of the delivery of common
      stock to the Consultant, Consultant shall be entitled to receive a cash benefit
      equal to the value of the common stock that would have been tendered had such
      a
      provision not been illegal or unenforceable.

    

    f. Arbitration:
      Any
      dispute or other disagreement arising from or out of this Agreement shall be
      submitted to arbitration under the rules of the American Arbitration Association
      and the decision of the arbiter(s) shall be enforceable in any court having
      jurisdiction thereof. Arbitration shall occur only in San Diego County, CA.
      The
      interpretation and the enforcement of this Agreement shall be governed by
      California Law as applied to residents of the State of California relating
      to
      contracts executed in and to be performed solely within the State of California.
      

    

    g. Governing
      Law:
      The
      subject matter of this Agreement shall be governed by and construed in
      accordance with the laws of the State of Nevada (without reference to its choice
      of law principles), and to the exclusion of the law of any other forum, without
      regard to the jurisdiction in which any action or special proceeding may be
      instituted. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL JURISDICTION
      AND
      VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN THE COUNTY OF SAN DIEGO,
      CALIFORNIA FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN CONNECTION WITH,
      OR
      BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND ENFORCEMENT OF THIS
      AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE THEREIN THAT SUCH COURTS
      CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT,
      EACH PARTY SPECIFICALLY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY ISSUES SO
      TRIABLE. If it becomes necessary for any party to institute legal action to
      enforce the terms and conditions of this Agreement, the prevailing party shall
      be awarded reasonable attorneys fees, expenses and costs.

    

    h. Specific
      Performance:
      The
      Company and the Consultant shall have the right to demand specific performance
      of the terms, and each of them, of this Agreement.

    

    i. Execution
      of the Agreement:
      The
      Company, the party executing this Agreement on behalf of the Company, and the
      Consultant, have the requisite corporate power and authority to enter into
      and
      carry out the terms and conditions of this Agreement, as well as all
      transactions contemplated hereunder. All corporate proceedings have been taken
      and all corporate authorizations and approvals have been secured which are
      necessary to authorize the execution, delivery and performance by the Company
      and the Consultant of this Agreement. This Agreement has been duly and validly
      executed and delivered by the Company and the Consultant and constitutes a
      valid
      and binding obligation, enforceable in accordance with the respective terms
      herein. Upon delivery of this Agreement, this
      Agreement, and the other agreements and exhibits referred to herein, will
      constitute the valid and binding obligations of Company,
      and
      will be enforceable in accordance with their respective terms. Delivery may
      take
      place via facsimile transmission.

    

    j. Joint
      Drafting and Reliance on Independent Counsel.
      This
      Agreement shall be deemed to have been drafted jointly by the Parties hereto,
      and no inference or interpretation against any one party shall be made solely
      by
      virtue of such party allegedly having been the draftsperson of this Agreement.
      The Parties have each conducted sufficient and appropriate due diligence with
      respect to the facts and circumstances surrounding and related to this
      Agreement. The Parties expressly disclaim all reliance upon, and prospectively
      waive any fraud, misrepresentation, negligence or other claim based on
      information supplied by the other Party, in any way relating to the subject
      matter of this Agreement. 

    

    k. Acknowledgments
      and Assent.
      The
      Parties acknowledge that they have been given at least ten (10) days to consider
      this Agreement and that they were advised to consult with an independent
      attorney prior to signing this Agreement and that they have in fact consulted
      with counsel of their own choosing prior to executing this Agreement. The
      Parties may revoke this Agreement for a period of three (3) days after signing
      this Agreement, and the Agreement shall not be effective or enforceable until
      the expiration of this three (3) day revocation period. The Parties agree that
      they have read this Agreement and understand the content herein, and freely
      and
      voluntarily assent to all of the terms herein.

    

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    

    IN
      WITNESS WHEREOF, this Agreement has been executed by the Parties as of the
      date
      first above written.

    

    

    
      	
              QUEST
                OIL CORPORATION, INC.

               

               

               

              _________________________________

              By:
                Joe Wallen

              Its:
                Chief Financial Officer

            	
               

               

               

               

              ___________________________________

              By:
                Luis Leung

            

    

    

    A
      FACSIMILE COPY OF THIS AGREEMENT SHALL HAVE THE SAME LEGAL EFFECT AS AN ORIGINAL
      OF THE SAME.

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