Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Sun Cal Energy, Inc. - Exhibit 10.1

SHARE EXCHANGE AGREEMENT

THIS AGREEMENT is made effective as of the 31st day of
January, 2007.

AMONG:

SUN CAL ENERGY, INC., a Nevada
corporation 

(“Pubco”) 

AND: 

SUN CAL ENERGY, CORP., a Nevada
corporation 

(“Priveco”) 

AND:

THE UNDERSIGNED SHAREHOLDERS OF
PRIVECO AS LISTED ON SCHEDULE 1 ATTACHED HERETO

(the “Selling
Shareholders”)

AND:

SUN CAL ENERGY CANADA CORP., a
British Columbia corporation with a registered office at Suite 800, 885 West
Georgia Street, Vancouver, British Columbia V6C 3H1

(“SUN CAL CANADA”)

WHEREAS:

A.                      Sun
Cal Canada is party to a letter agreement with Western Energy Capital LLC dated
for reference on 4th day of October, 2006 (the “Western Energy Agreement”);

B.                      Sun
Cal Canada is also party to a letter agreement with TriMar Energy Partners, Inc.
dated for reference on 18th day of October, 2006 (the “TriMar Energy
Agreement”); 

C.                      Sun
Cal Canada is a wholly-owned subsidiary of Priveco; 

D.                      The
parties hereto wish to enter this Share Exchange Agreement whereby Pubco will
issue 26,925,000 shares of common stock in the capital of Pubco for all of the
issued and outstanding shares of Priveco to the shareholders of Priveco on the
basis of one share of Pubco for every one share of Priveco; and

E.                      Upon
the terms and subject to the conditions set forth in this Agreement, the Selling
Shareholders have agreed to sell all of the issued and outstanding common shares
of Priveco held by the Selling Shareholders to Pubco in exchange for common
shares of Pubco.

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NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of covenants and agreements set forth herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree each with the other as follows:

1. DEFINITIONS

1.1                      Definitions.
The following terms have the following meanings, unless the context indicates
otherwise:

	 	(a) 	
      “Agreement” shall mean this Agreement, and all the
      exhibits, schedules and other documents attached to or referred to in this
      Agreement, and all amendments and supplements, if any, to this
      Agreement;

	 	 	 
	 	(b) 	
      “Closing” shall mean the completion of the
      Transaction, in accordance with Section 8 hereof, at which time the
      Closing Documents shall be exchanged by the parties, except for those
      documents or other items specifically required to be exchanged at a later
      time;

	 	 	 
	 	(c) 	
      “Closing Date” shall mean March 12, 2007, or a
      date mutually agreed upon by the parties hereto in writing and in
      accordance with Section 8 following the satisfaction or waiver by Pubco
      and Priveco of the conditions precedent set out in Sections 6.1 and 6.2
      respectively; but in no event will the Closing Date be later than March
      25, 2007, without the written consent of both Pubco and Priveco;

	 	 	 
	 	(d) 	
      “Closing Documents” shall mean the papers,
      instruments and documents required to be executed and delivered at the
      Closing pursuant to this Agreement;

	 	 	 
	 	(e) 	
      “Exchange Act” shall mean the United States
      Securities Exchange Act of 1934, as amended;

	 	 	 
	 	(f) 	
      “Priveco” shall have the meaning ascribed to it in
      the preamble to this Agreement;

	 	 	 
	 	(g) 	
      “Priveco Common Stock” shall have the meaning
      ascribed to it in Section 3.3;

	 	 	 
	 	(h) 	
      “Priveco Shares” shall mean the 26,925,000 shares
      of Priveco Common Stock held by the Selling Shareholders, being all of the
      issued and outstanding common shares of Priveco beneficially held, either
      directly or indirectly, by the Selling Shareholders;

	 	 	 
	 	(i) 	
      “Pubco” shall have the meaning ascribed to it in
      the preamble to this Agreement;

	 	 	 
	 	(j) 	
      “Pubco Shares” shall mean those 26,925,000 fully
      paid and non-assessable common shares of Pubco to be issued to the Selling
      Shareholders by Pubco on the Closing Date;

	 	 	 
	 	(k) 	
      “SEC” shall mean the United States Securities and
      Exchange Commission;

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	 	(l) 	
      “Selling Shareholders” shall have the meaning
      ascribed to it in the preamble to this Agreement;

	 	 	 
	 	(m) 	
      “Sun Cal Canada” shall have the meaning ascribed
      to it in the preamble to this Agreement;

	 	 	 
	 	(n) 	
      “Taxes” shall include international, federal,
      state, provincial and local income taxes, capital gains tax, value-added
      taxes, franchise, personal property and real property taxes, levies,
      assessments, tariffs, duties (including any customs duty), business
      license or other fees, sales, use and any other taxes relating to the
      assets of the designated party or the business of the designated party for
      all periods up to and including the Closing Date, together with any
      related charge or amount, including interest, fines, penalties and
      additions to tax, if any, arising out of tax assessments; and

	 	 	 
	 	(o) 	
      “Transaction” shall mean the purchase of the
      Priveco Shares by Pubco from the Selling Shareholders in consideration for
      the issuance of the Pubco Shares.

	 	 	 
	 	(p) 	
      “TriMar Energy Agreement” shall have the meaning
      ascribed to it in Recital B;

	 	 	 
	 	(q) 	
      “Western Energy Agreement” shall have the meaning
      ascribed to it in Recital A;

1.2                      Schedules.
The following schedules are attached to and form part of this Agreement:

	 	Schedule 1 	- 	List of Selling
      Shareholders 
	 	Schedule 2 	- 	Certificate of Canadian or
      Non-U.S. Selling Shareholders 
	 	Schedule 3 	- 	Accredited
      Investor Questionnaire for U.S. Selling Shareholders 
	 	Schedule 4 	- 	Directors and Officers of Priveco
      and Sun Cal Canada 
	 	Schedule 5 	- 	Directors and
      Officers of Pubco 
	 	Schedule 6 	- 	Priveco and Sun Cal Canada
      Leases, Subleases, Claims, Capital Expenditures, Taxes and Other Property
      Interests 
	 	Schedule 7 	- 	Priveco and Sun
      Cal Canada Material Contracts 
	 	Schedule 8 	- 	Intentionally Omitted 
	 	Schedule 9 	- 	Pubco Bank
      Account Information 
	 	Schedule 10 	- 	Pubco Undisclosed Liabilities
  

1.3                      Currency.
All dollar amounts referred to in this Agreement are in United States funds,
unless expressly stated otherwise.

2. AGREEMENT OF PURCHASE AND SALE OF SHARES

2.1                      Agreement
of Purchase and Sale of Shares. Subject to the terms and conditions of this
Agreement, the Selling Shareholders hereby covenant and agree to sell, assign
and transfer to Pubco, and Pubco hereby covenants and agrees to purchase from
the Selling Shareholders all of the Priveco Shares held by the Selling
Shareholders.

2.2                      Consideration.
As consideration for the sale of the Priveco Shares by the Selling Shareholders,
Pubco shall allot and issue the Pubco Shares to the Selling Shareholders in the

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amount set out opposite each Selling Shareholder’s name in
Schedule 1 on the basis of one Pubco Share for each one Priveco Share held by
each Selling Shareholder. The Selling Shareholders acknowledge and agree that
the Pubco Shares are being issued pursuant to a safe harbor from the prospectus
and registration requirements of the United States Securities Act of 1933 (the
“1933 Act”). The Selling Shareholders agree to abide by all applicable
resale restrictions and hold periods imposed by all applicable securities
legislation. All certificates representing the Pubco Shares issued on Closing
will be endorsed with the following legend pursuant to the 1933 Act in order to
reflect the fact that the Pubco Shares are restricted securities and will be
issued to the Selling Shareholders pursuant to a safe harbor from the
registration requirements of the 1933 Act:

  
    “NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN
      REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS
      SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE
      UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE
      WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
      FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
      OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES
      MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED
      STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S
      UNDER THE 1933 ACT.”

  

Each Selling Shareholder who is a Canadian resident agrees to
fill in and execute a Schedule 2 “Certificate of Canadian and Other Non-U.S.
Shareholder” and each Selling Shareholder who is a U.S. resident agrees to fill
in and execute a Schedule 3 “Accredited Investor Questionnaire”. Each Selling
Shareholder agrees that the representations set out in such schedules as
executed by the Selling Shareholders will be true and correct as of the Closing
Date.

2.3                      Share
Exchange Procedure. On Closing, each Selling Shareholder will exchange his,
her or its certificate representing the Priveco Shares by delivering such
certificate to Pubco (by execution of this Agreement, each Selling Shareholder
irrevocably appoints the President of Priveco as his, her or its attorney in
fact to endorse his, her or its certificate representing the Priveco Shares for
transfer to effect the transaction contemplated in this Agreement), in each case
in proper form for transfer, with signatures guaranteed, and, if applicable,
with all stock transfer and any other required documentary stamps affixed
thereto and with appropriate instructions to allow the transfer agent to issue
certificates for the Pubco Shares to the holder thereof together with a filled
in and executed Schedule 2 or Schedule 3, as the case may be.

2.4                     
Restricted Shares. The Selling Shareholders acknowledge that the Pubco
Shares issued pursuant to the terms and conditions set forth in this Agreement
will have such hold periods as are required under applicable securities laws and
as a result may not be sold, transferred or otherwise disposed, except pursuant
to an effective registration statement under the 

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1933 Act, or pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the 1933 Act and in each case
only in accordance with all applicable securities laws. Each Selling Shareholder
agrees that he/she/it has been given an opportunity to seek and obtain
independent legal advice as to the resale restrictions applicable in their
jurisdiction of residence, and under U.S. securities laws generally. Pubco has
not undertaken, and will have no obligation, to register any of the Pubco Shares
under the 1933 Act; provided, however, that Pubco will assist in providing legal
opinions to the Selling Shareholders at the Selling Shareholders’ cost when the
Selling Shareholders may resell their shares under Rule 144 promulgated under
the 1933 Act. 

2.5                      Exemptions.
The Selling Shareholders acknowledge that Pubco has advised such Selling
Shareholders that Pubco is relying on an exemption from the prospectus and
registration requirements of applicable securities legislation in all
jurisdictions (the “Applicable Securities Legislation”) relevant to the
issuance of the Pubco Shares to each of the Selling Shareholders, and, as a
consequence, the Selling Shareholders will not be entitled to certain
protections, rights and remedies available under Applicable Securities
Legislation, including statutory rights of rescission or damages, and the
Selling Shareholders will not receive information that would otherwise be
required to be provided to the Selling Shareholders pursuant to applicable
securities legislation.

2.6                      Canadian
Resale Restrictions. The Selling Shareholders acknowledge that Pubco is not
a reporting issuer in any province or territory of Canada and accordingly, any
applicable hold periods under the Applicable Securities Legislation may never
expire, and the Pubco Shares may be subject to resale restrictions for an
indefinite period of time. Additionally, the Selling Shareholders acknowledge
that resale of any of the Pubco Shares by the Selling Shareholders resident in
Canada is restricted except pursuant to an exemption from the Applicable
Securities Legislation.

2.7                     
Exchange of Warrants. On Closing, the Selling Shareholders holding
warrants to purchase shares of Priveco Common Stock at the price of $1.50 per
share shall have their warrants exchanged into warrants to purchase shares of
Pubco Common Stock at the price of $1.50 per share.

3. REPRESENTATIONS AND WARRANTIES OF PRIVECO AND SUN CAL
CANADA

Priveco and Sun Cal Canada jointly and severally represent and
warrant to Pubco, and acknowledge that Pubco is relying upon such
representations and warranties, in connection with the execution, delivery and
performance of this Agreement, notwithstanding any investigation made by or on
behalf of Pubco, as follows:

3.1                     
Organization and Good Standing. Priveco is a corporation duly organized,
validly existing and in good standing under the laws of State of Nevada and has
the requisite corporate power and authority to own, lease and to carry on its
business as now being conducted. Sun Cal Canada is a corporation duly organized,
validly existing and in good standing under the laws of Province of British
Columbia and has the requisite corporate power and authority to own, lease and
to carry on its business as now being conducted.

3.2                      Authority.
Each of Priveco and Sun Cal Canada has all requisite corporate power and
authority to execute and deliver this Agreement and any other document
contemplated by this Agreement (collectively, the “Priveco and Sun Cal Canada
Documents”) to be signed by Priveco and Sun Cal Canada, as the case may be,
and to perform their respective obligations 

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hereunder and to consummate the transactions contemplated
hereby. The execution and delivery of each of the Priveco and Sun Cal Canada
Documents by Priveco or Sun Cal Canada, as the case may be, and the consummation
of the transactions contemplated hereby have been duly authorized by Priveco and
Sun Cal Canada’s respective boards of directors. No other corporate or
shareholder proceedings on the part of Priveco or Sun Cal Canada is necessary to
authorize such documents or to consummate the transactions contemplated hereby.
This Agreement has been, and the other Priveco and Sun Cal Canada Documents when
executed and delivered by Priveco or Sun Cal Canada, as the case may be, as
contemplated by this Agreement will be, duly executed and delivered by Priveco
or Sun Cal Canada, respectively, and this Agreement is, and the other Priveco
and Sun Cal Canada Documents when executed and delivered by Priveco and Sun Cal
Canada as contemplated hereby will be, valid and binding obligations of Priveco
and Sun Cal Canada enforceable in accordance with their respective terms
except:

	 	(a) 	
      as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, and other laws of general application
      affecting enforcement of creditors’ rights generally;

	 	 	 
	 	(b) 	
      as limited by laws relating to the availability of
      specific performance, injunctive relief, or other equitable remedies;
      and

	 	 	 
	 	(c) 	
      as limited by public policy.

3.3                      Capitalization
of Priveco. The entire authorized capital stock and other equity securities
of Priveco consist of 100,000,000 shares of common stock with a par value of
$0.001 per share (the “Priveco Common Stock”). There are 26,925,000
shares of Priveco Common Stock issued and outstanding as of the date of this
Agreement. All of the issued and outstanding shares of Priveco Common Stock have
been duly authorized, are validly issued, were not issued in violation of any
pre-emptive rights and are fully paid and non-assessable, are not subject to
pre-emptive rights and were issued in full compliance with the general corporate
laws of the State of Nevada and its articles and bylaws. Other than 1,125,000
warrants to purchase Priveco Common Stock at the price of $1.50 per share, there
are no agreements purporting to restrict the transfer of the Priveco Common
Stock, no voting agreements, shareholders’ agreements, voting trusts, or other
arrangements restricting or affecting the voting of the Priveco Common Stock.
The entire authorized capital stock and other equity securities of Sun Cal
Canada consist of an unlimited number of common shares. There are 100 common
shares of Sun Cal Canada issued and outstanding as of the date of this
Agreement. All of the issued and outstanding common shares of Sun Cal Canada
have been duly authorized, are validly issued, were not issued in violation of
any pre-emptive rights and are fully paid and non-assessable, are not subject to
preemptive rights and were issued in full compliance with the Business
Corporations Act (British Columbia) and its articles and bylaws. 

3.4                      Shareholders
of Priveco Common Stock. The shareholders listed in Schedule 1 to this
Agreement are the only registered and beneficial holders of the Priveco
Shares.

3.5                      Directors
and Officers of Priveco and Sun Cal Canada. The duly elected or appointed
directors and the duly appointed officers of Priveco and Sun Cal Canada
respectively are as set out in Schedule 4.

3.6                      Wholly-Owned
Subsidiary. Priveco has one wholly-owned subsidiary, being Sun Cal
Canada.

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3.7                     
Non-Contravention. Neither the execution, delivery and performance of
this Agreement, nor the consummation of the Transaction, will:

	 	(a) 	
      conflict with, result in a violation of, cause a default
      under (with or without notice, lapse of time or both) or give rise to a
      right of termination, amendment, cancellation or acceleration of any
      obligation contained in or the loss of any material benefit under, or
      result in the creation of any lien, security interest, charge or
      encumbrance upon any of the material properties or assets of Priveco or
      Sun Cal Canada under any term, condition or provision of any loan or
      credit agreement, note, debenture, bond, mortgage, indenture, lease or
      other agreement, instrument, permit, license, judgment, order, decree,
      statute, law, ordinance, rule or regulation applicable to Priveco or Sun
      Cal Canada, or any of its material property or assets;

	 	 	 
	 	(b) 	
      violate any provision of the articles or bylaws of
      Priveco or Sun Cal Canada; or

	 	 	 
	 	(c) 	
      violate any order, writ, injunction, decree, statute,
      rule, or regulation of any court or governmental or regulatory authority
      applicable to Priveco or Sun Cal Canada or any of its material property or
      assets.

3.8                      Actions
and Proceedings. To the best knowledge of Priveco and Sun Cal Canada, there
is no basis for and there is no action, suit, judgment, claim, demand or
proceeding outstanding or pending, or threatened against or affecting Priveco or
Sun Cal Canada or which involves any of the business, or the properties or
assets of Priveco or Sun Cal Canada that, if adversely resolved or determined,
would have a material adverse effect on the business, operations, assets,
properties, prospects, or conditions of Priveco or Sun Cal Canada taken as a
whole (a “Priveco or Sun Cal Canada Material Adverse Effect”). There is
no reasonable basis for any claim or action that, based upon the likelihood of
its being asserted and its success if asserted, would have such a Priveco or Sun
Cal Canada Material Adverse Effect.

3.9                      Compliance.

	 	(a) 	
      To the best knowledge of Priveco and Sun Cal Canada,
      Priveco and Sun Cal Canada are in compliance with, is not in default or
      violation in any material respect under, and has not been charged with or
      received any notice at any time of any material violation of any statute,
      law, ordinance, regulation, rule, decree or other applicable regulation to
      the business or operations of Priveco and Sun Cal Canada;

	 	 	 
	 	(b) 	
      To the best knowledge of Priveco and Sun Cal Canada,
      Priveco and Sun Cal Canada are not subject to any judgment, order or
      decree entered in any lawsuit or proceeding applicable to its business and
      operations that would constitute a Priveco or Sun Cal Canada Material
      Adverse Effect; and

	 	 	 
	 	(c) 	
      Each of Priveco and Sun Cal Canada has operated in
      material compliance with all laws, rules, statutes, ordinances, orders and
      regulations applicable to its business. Priveco and Sun Cal Canada have
      not received any notice of any violation thereof, nor is Priveco or Sun
      Cal Canada aware of any valid basis therefore.

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3.10                      Filings,
Consents and Approvals. To the best knowledge of Priveco and Sun Cal Canada,
no filing or registration with, no notice to and no permit, authorization,
consent, or approval of any public or governmental body or authority or other
person or entity is necessary for the consummation by Priveco and Sun Cal Canada
of the Transaction contemplated by this Agreement or to enable Priveco or Sun
Cal Canada to continue to conduct its business after the Closing Date in a
manner which is consistent with that in which the business is presently
conducted.

3.11                     
Absence of Undisclosed Liabilities. Except as disclosed in Schedules 6
and 7, Priveco and Sun Cal Canada do not have any liabilities or obligations
either direct or indirect, matured or unmatured, absolute, contingent or
otherwise that could in the aggregate exceed $5,000, which have not heretofore
been paid or discharged.

For purposes of this Agreement, the term “liabilities”
includes, any direct or indirect indebtedness, guaranty, endorsement, claim,
loss, damage, deficiency, cost, expense, obligation or responsibility, fixed or
unfixed, known or unknown, asserted choate or inchoate, liquidated or
unliquidated, secured or unsecured.

3.12                      Absence
of Changes. Since the date of incorporation of Priveco and Sun Cal Canada,
and except as modified or disclosed in Schedule 6 or Schedule 7, as applicable,
neither Priveco nor Sun Cal Canada has:

	 	(a) 	
      incurred any liabilities, other than liabilities incurred
      in the ordinary course of business consistent with past practice, or
      discharged or satisfied any lien or encumbrance, or paid any liabilities,
      other than in the ordinary course of business consistent with past
      practice, or failed to pay or discharge when due any liabilities of which
      the failure to pay or discharge has caused or will cause any material
      damage or risk of material loss to it or any of its assets or
      properties;

	 	 	 
	 	(b) 	
      sold, encumbered, assigned or transferred any material
      fixed assets or properties except for ordinary course business
      transactions consistent with past practice;

	 	 	 
	 	(c) 	
      created, incurred, assumed or guaranteed any indebtedness
      for money borrowed, or mortgaged, pledged or subjected any of the material
      assets or properties of Priveco or Sun Cal Canada to any mortgage, lien,
      pledge, security interest, conditional sales contract or other encumbrance
      of any nature whatsoever;

	 	 	 
	 	(d) 	
      made or suffered any amendment or termination of any
      material agreement, contract, commitment, lease or plan to which it is a
      party or by which it is bound, or cancelled, modified or waived any
      substantial debts or claims held by it or waived any rights of substantial
      value, other than in the ordinary course of business;

	 	 	 
	 	(e) 	
      declared, set aside or paid any dividend or made or
      agreed to make any other distribution or payment in respect of its capital
      shares or redeemed, purchased or otherwise acquired or agreed to redeem,
      purchase or acquire any of its capital shares or equity
  securities;

	 	 	 
	 	(f) 	
      suffered any damage, destruction or loss, whether or not
      covered by insurance, that materially and adversely effects its business,
      operations, assets, properties or prospects;

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	 	(g) 	
      suffered any material adverse change in its business,
      operations, assets, properties, prospects or condition (financial or
      otherwise);

	 	 	 
	 	(h) 	
      received notice or had knowledge of any actual or
      threatened labor trouble, termination, resignation, strike or other
      occurrence, event or condition of any similar character which has had or
      might have an adverse effect on its business, operations, assets,
      properties or prospects;

	 	 	 
	 	(i) 	
      made commitments or agreements for capital expenditures
      or capital additions or betterments exceeding in the aggregate $5,000,
      except such as may be involved in ordinary repair, maintenance or
      replacement of its assets;

	 	 	 
	 	(j) 	
      other than in the ordinary course of business, increase
      the salaries or other compensation of, or made any advance (excluding
      advances for ordinary and necessary business expenses) or loan to, any of
      its employees or directors or made any increase in, or any addition to,
      other benefits to which any of its employees or directors may be
      entitled;

	 	 	 
	 	(k) 	
      entered into any transaction other than in the ordinary
      course of business consistent with past practice; or

	 	 	 
	 	(l) 	
      agreed, whether in writing or orally, to do any of the
      foregoing.

3.13                      Personal
Property. Priveco and Sun Cal Canada possess, and have good and marketable
title of all property necessary for the continued operation of the business of
Priveco and Sun Cal Canada as presently conducted and as represented to Pubco
and Sun Cal Canada. All such property is used in the business of Priveco and Sun
Cal Canada. All such property is in reasonably good operating condition (normal
wear and tear excepted), and is reasonably fit for the purposes for which such
property is presently used. All material equipment, furniture, fixtures and
other tangible personal property and assets owned or leased by Priveco and Sun
Cal Canada are owned by Priveco or Sun Cal Canada free and clear of all liens,
security interests, charges, encumbrances, and other adverse claims, except as
disclosed in Schedule 6.

3.14                      Intellectual
Property. Priveco doe not have any intellectual property. 

3.15                      Employees
and Consultants. Priveco does not have any employees or consultants.

3.16                     
Real Property. Neither Priveco nor Sun Cal Canada owns any real property.
Each of the leases, subleases, claims or other real property interests
(collectively, the “Leases”) to which Priveco or Sun Cal Canada is a
party or is bound, as set out in Schedule 6, is legal, valid, binding,
enforceable and in full force and effect in all material respects. The Leases
will continue to be legal, valid, binding, enforceable and in full force and
effect on identical terms on the Closing Date. Neither Priveco nor Sun Cal
Canada has assigned, transferred, conveyed, mortgaged, deeded in trust, or
encumbered any interest in the Leases or the leasehold property pursuant
thereto.

3.17                      Material
Contracts and Transactions. Schedule 7 attached hereto lists each material
contract, agreement, license, permit, arrangement, commitment, instrument or
contract to which Priveco or Sun Cal Canada is a party, including the TriMar
Energy Agreement and the Western Energy Agreement (each, a “Contract”).
The continuation, validity, and effectiveness 

- 10 -

of each Contract will in no way be affected by the consummation
of the Transaction contemplated by this Agreement. There exists no actual or
threatened termination, cancellation, or limitation of, or any amendment,
modification, or change to any Contract.

3.18                      Certain
Transactions. Neither Priveco nor Sun Cal Canada is a guarantor or
indemnitor of any indebtedness of any third party, including any person, firm or
corporation.

3.19                      No
Brokers. Neither Priveco nor Sun Cal Canada has incurred any obligation or
liability to any party for any brokerage fees, agent’s commissions, or finder’s
fees in connection with the Transaction contemplated by this Agreement.

3.20                      Completeness
of Disclosure. No representation or warranty by Priveco or Sun Cal Canada in
this Agreement nor any certificate, schedule, statement, document or instrument
furnished or to be furnished to Pubco pursuant hereto contains or will contain
any untrue statement of a material fact or omits or will omit to state a
material fact required to be stated herein or therein or necessary to make any
statement herein or therein not materially misleading.

4. REPRESENTATIONS AND WARRANTIES OF SELLING
SHAREHOLDERS

Each of the Selling Shareholders jointly and severally
represents and warrants to Pubco, and acknowledges that Pubco is relying upon
such representations and warranties, in connection with the execution, delivery
and performance of this Agreement, notwithstanding any investigation made by or
on behalf of Pubco, as follows:

4.1                     
Each Selling Shareholder is the registered and beneficial owner of the number of
Priveco Shares listed next to his or her name in Column III of the Table set
forth in Schedule 1 to this Agreement and each Selling Shareholder has no
interest, legal or beneficial, direct or indirect, in any other shares of, or
the assets or business of Priveco or Sun Cal Canada.

4.2                      Schedule
1 to this Agreement contains a true and complete list of each Selling
Shareholder’s name and address.

4.3                     
Each Selling Shareholder has the power and capacity and good and sufficient
right and authority to enter into this Agreement on the terms and conditions
herein set forth and to transfer the beneficial title and ownership of the
Priveco Shares to Pubco.

4.4                      Each
Selling Shareholder who is a resident of the United States, by completing the
Accredited Investor Questionnaire in the form attached hereto under Schedule 3,
is representing and warranting that he or she is an “Accredited
Investor”, as the term is defined in Regulation D under the 1933 Act.

5. REPRESENTATIONS AND WARRANTIES OF PUBCO

Pubco represents and warrants to Priveco, Sun Cal Canada and
the Selling Shareholders and acknowledges that Priveco, Sun Cal Canada and the
Selling Shareholders are relying upon such representations and warranties in
connection with the execution, delivery and performance of this Agreement,
notwithstanding any investigation made by or on behalf of Priveco, Sun Cal
Canada or the Selling Shareholders, as follows:

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5.1                      Organization
and Good Standing. Pubco is duly incorporated, organized, validly existing
and in good standing under the laws of the State of Nevada, and has all
requisite corporate power and authority to own, lease and to carry on its
business as now being conducted. 

5.2                      Authority.
Pubco has all requisite corporate power and authority to execute and deliver
this Agreement and any other document contemplated by this Agreement
(collectively, the “Pubco Documents”) to be signed by Pubco and to
perform its obligations hereunder and to consummate the Transaction contemplated
hereby. The execution and delivery of each of the Pubco Documents by Pubco and
the consummation by Pubco of the Transaction contemplated hereby have been duly
authorized by its board of directors and no other corporate or shareholder
proceedings on the part of Pubco is necessary to authorize such documents or to
consummate the Transaction contemplated hereby. This Agreement has been, and the
other Pubco Documents when executed and delivered by Pubco as contemplated by
this Agreement will be, duly executed and delivered by Pubco and this Agreement
is, and the other Pubco Documents when executed and delivered by Pubco, as
contemplated hereby will be, valid and binding obligations of Pubco enforceable
in accordance with their respective terms, except:

	 	(a) 	
      as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, and other laws of general application
      affecting enforcement of creditors’ rights generally;

	 	 	 
	 	(b) 	
      as limited by laws relating to the availability of
      specific performance, injunctive relief, or other equitable remedies;
      and

	 	 	 
	 	(c) 	
      as limited by public policy.

5.3                     
Capitalization of Pubco. The entire authorized capital stock and other
equity securities of Pubco consist of 750,000,000 shares of common stock with a
par value of $0.001 (the “Pubco Common Stock”). As of the date of this
Agreement, there are 51,250,000 shares of Pubco Common Stock issued and
outstanding. On the Closing Date, Pubco will have issued and outstanding no more
than 51,250,000 shares of Pubco Common Stock immediately prior to the issuance
of the Pubco Shares as contemplated by this Agreement. All of the issued and
outstanding shares of Pubco Common Stock have been duly authorized, are validly
issued, were not issued in violation of any pre-emptive rights and are fully
paid and non-assessable, are not subject to pre-emptive rights and were issued
in full compliance with all federal, state, and local laws, rules and
regulations. There are no outstanding options, warrants, subscriptions, phantom
shares, conversion rights, or other rights, agreements, or commitments
obligating Pubco to issue any additional shares of Pubco Common Stock, or any
other securities convertible into, exchangeable for, or evidencing the right to
subscribe for or acquire from Pubco any shares of Pubco Common Stock as of the
date of this Agreement. There are no agreements purporting to restrict the
transfer of the Pubco Common Stock, no voting agreements, voting trusts, or
other arrangements restricting or affecting the voting of the Pubco Common Stock
other than those shares held by affiliates of Pubco.

5.4                      Directors
and Officers of Pubco. The duly elected or appointed directors and the duly
appointed officers of Pubco are as listed on Schedule 5.

5.5                      Corporate
Records of Pubco. The corporate records of Pubco, as required to be
maintained by it pursuant to the Nevada Corporations Code, are accurate,
complete and current in all material respects, and the minute book of Pubco is,
in all material respects, correct and contains all material records required by
the laws of the State of Nevada in regards to all 

- 12 -

proceedings, consents, actions and meetings of the shareholders
and the board of directors of Pubco.

5.6                      Non-Contravention.
Neither the execution, delivery and performance of this Agreement, nor the
consummation of this Transaction will:

	 	(a) 	
      conflict with, result in a violation of, cause a default
      under (with or without notice, lapse of time or both) or give rise to a
      right of termination, amendment, cancellation or acceleration of any
      obligation contained in or the loss of any material benefit under, or
      result in the creation of any lien, security interest, charge or
      encumbrance upon any of the material properties or assets of Pubco under
      any term, condition or provision of any loan or credit agreement, note,
      debenture, bond, mortgage, indenture, lease or other agreement,
      instrument, permit, license, judgment, order, decree, statute, law,
      ordinance, rule or regulation applicable to Pubco or any of its material
      property or assets;

	 	 	 
	 	(b) 	
      violate any provision of the applicable incorporation or
      charter documents of Pubco; or

	 	 	 
	 	(c) 	
      violate any order, writ, injunction, decree, statute,
      rule, or regulation of any court or governmental or regulatory authority
      applicable to Pubco or any of its material property or
  assets.

5.7                     
Validity of Pubco Common Stock Issuable upon the Transaction. The Pubco
Shares to be issued to the Selling Shareholders upon consummation of the
Transaction in accordance with this Agreement will, upon issuance, have been
duly and validly authorized and, when so issued in accordance with the terms of
this Agreement, will be duly and validly issued, fully paid and
non-assessable.

5.8                      Actions
and Proceedings. To the best knowledge of Pubco, there is no claim, charge,
arbitration, grievance, action, suit, investigation or proceeding by or before
any court, arbiter, administrative agency or other governmental authority now
pending or, to the best knowledge of Pubco, threatened against Pubco which
involves any of the business, or the properties or assets of Pubco that, if
adversely resolved or determined, would have a material adverse effect on the
business, operations, assets, properties, prospects or conditions of Pubco taken
as a whole (an “Pubco Material Adverse Effect”). There is no reasonable
basis for any claim or action that, based upon the likelihood of its being
asserted and its success if asserted, would have such an Pubco Material Adverse
Effect.

5.9                      Compliance.

	 	(a) 	
      To the best knowledge of Pubco, Pubco is in compliance
      with, is not in default or violation in any material respect under, and
      has not been charged with or received any notice at any time of any
      material violation of any statute, law, ordinance, regulation, rule,
      decree or other applicable regulation to the business or operations of
      Pubco;

	 	 	 
	 	(b) 	
      To the best knowledge of Pubco, Pubco is not subject to
      any judgment, order or decree entered in any lawsuit or proceeding
      applicable to its business and operations that would constitute an Pubco
      Material Adverse Effect;

- 13 -

	 	(c) 	
      Pubco has duly filed all reports and returns required to
      be filed by it with governmental authorities and has obtained all
      governmental permits and other governmental consents, except as may be
      required after the execution of this Agreement. All of such permits and
      consents are in full force and effect, and no proceedings for the
      suspension or cancellation of any of them, and no investigation relating
      to any of them, is pending or to the best knowledge of Pubco, threatened,
      and none of them will be affected in a material adverse manner by the
      consummation of the Transaction; and

	 	 	 
	 	(d) 	
      Pubco has operated in material compliance with all laws,
      rules, statutes, ordinances, orders and regulations applicable to its
      business. Pubco has not received any notice of any violation thereof, nor
      is Pubco aware of any valid basis therefore.

5.10                      Filings,
Consents and Approvals. No filing or registration with, no notice to and no
permit, authorization, consent, or approval of any public or governmental body
or authority or other person or entity is necessary for the consummation by
Pubco of the Transaction contemplated by this Agreement to continue to conduct
its business after the Closing Date in a manner which is consistent with that in
which it is presently conducted.

5.11                      SEC
Filings. Pubco has furnished or made available to Priveco and the Selling
Shareholders a true and complete copy of each report, schedule, registration
statement and proxy statement filed by Pubco with the SEC (collectively, and as
such documents have since the time of their filing been amended, the “Pubco
SEC Documents”). As of their respective dates, the Pubco SEC Documents
complied in all material respects with the requirements of the 1933 Act, or the
Exchange Act, as applicable, and the rules and regulations of the SEC thereunder
applicable to such Pubco SEC Documents.

5.12                      Absence
of Undisclosed Liabilities. Except as disclosed in Schedule 10, Pubco
does not have any material liabilities or obligations either direct or indirect,
matured or unmatured, absolute, contingent or otherwise that could in the
aggregate exceed $5,000, which have not heretofore been paid or discharged.

5.13                      Absence
of Certain Changes or Events. Since the Pubco Accounting Date, except as and
to the extent disclosed in the Pubco SEC Documents, there has not been:

	 	(a) 	
      a Pubco Material Adverse Effect; or

	 	 	 
	 	(b) 	
      any material change by Pubco in its accounting methods,
      principles or practices.

5.14                     
No Subsidiaries. Pubco does not have any subsidiaries or agreements of
any nature to acquire any subsidiary or to acquire or lease any other business
operations.

5.15                      Personal
Property. There are no material equipment, furniture, fixtures and other
tangible personal property and assets owned or leased by Pubco, except as
disclosed in the Pubco SEC Documents.

5.16                      Employees
and Consultants. Pubco does not have any employees or consultants, except as
disclosed in the Pubco SEC Documents.

- 14 -

5.17                     
Material Contracts and Transactions. There are no material contracts,
agreements, licenses, permits, arrangements, commitments, instruments,
understandings or contracts, whether written or oral, express or implied,
contingent, fixed or otherwise, to which Pubco is a party, except as disclosed
in the Pubco SEC Documents.

5.18                      No
Brokers. Pubco has not incurred any obligation or liability to any party for
any brokerage fees, agent’s commissions, or finder’s fees in connection with the
Transaction contemplated by this Agreement.

5.19                      Certain
Transactions. Pubco is not a guarantor or indemnitor of any indebtedness of
any third party, including any person, firm or corporation.

5.20                      Bank
Accounts. All of the bank accounts and safety deposit boxes of Pubco are
listed on Schedule 9.

5.21                      Completeness
of Disclosure. No representation or warranty by Pubco in this Agreement nor
any certificate, schedule, statement, document or instrument furnished or to be
furnished to Priveco pursuant hereto contains or will contain any untrue
statement of a material fact or omits or will omit to state a material fact
required to be stated herein or therein or necessary to make any statement
herein or therein not materially misleading.

6. CLOSING CONDITIONS

6.1                      Conditions
Precedent to Closing by Pubco. The obligation of Pubco to consummate the
Transaction is subject to the satisfaction or written waiver of the conditions
set forth below on or before the Closing Date or such earlier date as
hereinafter specified. The Closing of the Transaction contemplated by this
Agreement will be deemed to mean a waiver of all conditions to Closing. These
conditions of closing are for the benefit of Pubco and may be waived by Pubco in
its sole discretion.

	 	(a) 	
      Representations and Warranties. The representations and
      warranties of Priveco and Sun Cal Canada set forth in this Agreement will
      be true, correct and complete in all respects as of the Closing Date, as
      though made on and as of the Closing Date and each of Priveco and Sun Cal
      Canada will have delivered to Pubco a certificate dated as of the Closing
      Date, to the effect that the representations and warranties made by
      Priveco and Sun Cal Canada respectively in this Agreement are true and
      correct.

	 	 	 
	 	(b) 	
      Performance. All of the covenants and obligations that
      Priveco, Sun Cal Canada and the Selling Shareholders are required to
      perform or to comply with pursuant to this Agreement at or prior to the
      Closing must have been performed and complied with in all material
      respects.

	 	 	 
	 	(c) 	
      Transaction Documents. This Agreement, the Priveco
      Documents and all other documents necessary or reasonably required to
      consummate the Transaction, all in form and substance reasonably
      satisfactory to Pubco, will have been executed and delivered to
    Pubco.

	 	 	 
	 	(d) 	
      Secretary’s Certificate – Priveco and Sun Cal Canada.
      Pubco will have received a certificate from the Secretary of each of
      Priveco and Sun Cal Canada attaching:

- 15 -

	 	(i) 	
      a copy of Priveco and Sun Cal Canada’s respective
      articles, bylaws and all other incorporation documents, as amended through
      the Closing Date, and

	 	 	 
	 	(ii) 	
      copies of resolutions duly adopted by the board of
      directors of Priveco and Sun Cal Canada respectively approving the
      execution and delivery of this Agreement and the consummation of the
      transactions contemplated herein.

	 	(e) 	
      Third Party Consents. Pubco will have received duly
      executed copies of all third party consents and approvals contemplated by
      this Agreement, in form and substance reasonably satisfactory to
    Pubco.

	 	 	 	 
	 	(f) 	
      No Material Adverse Change. No Priveco or Sun Cal Canada
      Material Adverse Effect will have occurred since the date of this
      Agreement.

	 	 	 	 
	 	(g) 	
      No Action. No suit, action, or proceeding will be pending
      or threatened which would:

	 	 	 	 
	 		(i) 	
      prevent the consummation of any of the transactions
      contemplated by this Agreement, or

	 	 	 	 
	 		(ii) 	
      cause the Transaction to be rescinded following
      consummation.

	 	 	 	 
	 	(h) 	
      Outstanding Shares. Priveco will have no more than
      26,925,000 shares of Priveco Common Stock issued and outstanding on the
      Closing Date.

	 	 	 	 
	 	(i) 	
      Due Diligence. Pubco and its solicitors will be
      reasonably satisfied with their due diligence investigation of Priveco and
      Sun Cal Canada that is reasonable and customary in a transaction of a
      similar nature to that contemplated by the Transaction,
  including:

	 	 	 	 
	 		(i) 	
      materials, documents and information in the possession
      and control of Priveco, Sun Cal Canada and the Selling Shareholders which
      are reasonably germane to the Transaction,

	 	 	 	 
	 		(ii) 	
      a physical inspection of the assets of Priveco and Sun
      Cal Canada by Pubco or its representatives, and

	 	 	 	 
	 		(iii) 	
      title to the material assets of Priveco and Sun Cal
      Canada.

	 	 	 	 
	 	(j) 	
      Compliance with Securities Laws. Pubco will have received
      evidence satisfactory to Pubco that the Pubco Shares issuable in the
      Transaction will be issuable without registration pursuant to the 1933 Act
      and the Applicable Securities Legislation in reliance on a safe harbor
      from the registration requirements of the 1933 Act and the Applicable
      Securities Legislation.

6.2                      Conditions
Precedent to Closing by Priveco. The obligation of Priveco, Sun Cal Canada
and the Selling Shareholders to consummate the Transaction is subject to the
satisfaction or written waiver of the conditions set forth below on or before
the Closing Date or such earlier date as hereinafter specified. The Closing of
the Transaction will be deemed to mean 

- 16 -

a waiver of all conditions to Closing. These conditions
precedent are for the benefit of Priveco, Sun Cal Canada and the Selling
Shareholders and may be waived by Priveco, Sun Cal Canada and the Selling
Shareholders in their discretion.

	 	(a) 	
      Representations and Warranties. The representations and
      warranties of Pubco set forth in this Agreement will be true, correct and
      complete in all respects as of the Closing Date, as though made on and as
      of the Closing Date and Pubco will have delivered to Priveco a certificate
      dated the Closing Date, to the effect that the representations and
      warranties made by Pubco in this Agreement are true and correct.

	 	 	 	 
	 	(b) 	
      Performance. All of the covenants and obligations that
      Pubco is required to perform or to comply with pursuant to this Agreement
      at or prior to the Closing must have been performed and complied with in
      all material respects. Pubco must have delivered each of the documents
      required to be delivered by it pursuant to this Agreement.

	 	 	 	 
	 	(c) 	
      Transaction Documents. This Agreement, the Pubco
      Documents and all other documents necessary or reasonably required to
      consummate the Transaction, all in form and substance reasonably
      satisfactory to Priveco, will have been executed and delivered by
      Pubco.

	 	 	 	 
	 	(d) 	
      Secretary’s Certificate - Pubco. Priveco will have
      received a certificate from the Secretary of Pubco attaching:

	 	 	 	 
	 		(i) 	
      a copy of Pubco’s articles of incorporation and bylaws,
      as amended through the Closing Date, and

	 	 	 	 
	 		(ii) 	
      copies of resolutions duly adopted by the board of
      directors of Pubco approving the execution and delivery of this Agreement
      and the consummation of the transactions contemplated herein.

	 	 	 	 
	 	(e) 	
      No Material Adverse Change. No Pubco Material Adverse
      Effect will have occurred since the date of this Agreement.

	 	 	 	 
	 	(f) 	
      No Action. No suit, action, or proceeding will be pending
      or threatened before any governmental or regulatory authority wherein an
      unfavorable judgment, order, decree, stipulation, injunction or charge
      would:

	 	 	 	 
	 		(i) 	
      prevent the consummation of any of the transactions
      contemplated by this Agreement, or

	 	 	 	 
	 		(ii) 	
      cause the Transaction to be rescinded following
      consummation.

	 	 	 	 
	 	(g) 	
      Outstanding Shares. On the Closing Date, Pubco will have
      issued and outstanding no more than 78,175,000 shares of Pubco Common
      Stock immediately prior to the issuance of the Pubco Shares as
      contemplated by this Agreement.

- 17 -

	 	(h) 	
      Public Market. On the Closing Date, the shares of Pubco
      Common Stock will be quoted on the National Association of Securities
      Dealers, Inc.’s OTC Bulletin Board.

	 	 	 
	 	(i) 	
      Due Diligence Review of Financial Statements. Priveco and
      its accountants will be reasonably satisfied with their due diligence
      investigation and review of the Pubco SEC Documents, and the contents
      thereof, prepared in accordance with the United States generally accepted
      accounting principles applied in a manner consistent with prior
      periods.

	 	 	 
	 	(j) 	
      Pubco Debts. Pubco will have provided evidence that it
      has satisfied or will otherwise provide for payment of all material debt
      on its books and accounts payable.

7. ADDITIONAL COVENANTS OF THE PARTIES

7.1                      Notification
of Financial Liabilities. Priveco will immediately notify Pubco in
accordance with Section 11.6 hereof, if Priveco receives any advice or
notification from its independent certified public accounts that Priveco has
used any improper accounting practice that would have the effect of not
reflecting or incorrectly reflecting in the books, records, and accounts of
Priveco, any properties, assets, liabilities, revenues, or expenses.
Notwithstanding any statement to the contrary in this Agreement, this covenant
will survive Closing and continue in full force and effect.

7.2                      Access
and Investigation. Between the date of this Agreement and the Closing Date,
Priveco, on the one hand, and Pubco, on the other hand, will, and will cause
each of their respective representatives to:

	 	(a) 	
      afford the other and its representatives full and free
      access to its personnel, properties, assets, contracts, books and records,
      and other documents and data;

	 	 	 
	 	(b) 	
      furnish the other and its representatives with copies of
      all such contracts, books and records, and other existing documents and
      data as required by this Agreement and as the other may otherwise
      reasonably request; and

	 	 	 
	 	(c) 	
      furnish the other and its representatives with such
      additional financial, operating, and other data and information as the
      other may reasonably request.

All of such access, investigation and communication by a party
and its representatives will be conducted during normal business hours and in a
manner designed not to interfere unduly with the normal business operations of
the other party. Each party will instruct its auditors to cooperate with the
other party and its representatives in connection with such investigations.

7.3                      Confidentiality.
All information regarding the business of Priveco including, without limitation,
financial information that Priveco provided to Pubco during Pubco’s due
diligence investigation of Priveco will be kept in strict confidence by Pubco
and will not be used (except in connection with due diligence), dealt with,
exploited or commercialized by Pubco or disclosed to any third party (other than
Pubco’s professional accounting and legal advisors) without the prior written
consent of Priveco. If the Transaction contemplated by this Agreement does not
proceed for any reason, then upon receipt of a written request from Priveco,
Pubco will immediately return to Priveco (or as directed by Priveco) any
information received regarding 

- 18 -

Priveco’s business. Likewise, all information regarding the
business of Pubco including, without limitation, financial information that
Pubco provides to Priveco during its due diligence investigation of Pubco will
be kept in strict confidence by Priveco and will not be used (except in
connection with due diligence), dealt with, exploited or commercialized by
Priveco or disclosed to any third party (other than Priveco’s professional
accounting and legal advisors) without Pubco’s prior written consent. If the
Transaction contemplated by this Agreement does not proceed for any reason, then
upon receipt of a written request from Pubco, Priveco will immediately return to
Pubco (or as directed by Pubco) any information received regarding Pubco’s
business.

7.4                      Notification.
Between the date of this Agreement and the Closing Date, each of the parties to
this Agreement will promptly notify the other parties in writing if it becomes
aware of any fact or condition that causes or constitutes a material breach of
any of its representations and warranties as of the date of this Agreement, if
it becomes aware of the occurrence after the date of this Agreement of any fact
or condition that would cause or constitute a material breach of any such
representation or warranty had such representation or warranty been made as of
the time of occurrence or discovery of such fact or condition. Should any such
fact or condition require any change in the Schedules relating to such party,
such party will promptly deliver to the other parties a supplement to the
Schedules specifying such change. During the same period, each party will
promptly notify the other parties of the occurrence of any material breach of
any of its covenant in this Agreement or of the occurrence of any event that may
make the satisfaction of such conditions impossible or unlikely.

7.5                      Exclusivity.
Until such time, if any, as this Agreement is terminated pursuant to this
Agreement, Priveco and Pubco will not, directly or indirectly solicit, initiate,
entertain or accept any inquiries or proposals from, discuss or negotiate with,
provide any non-public information to, or consider the merits of any unsolicited
inquiries or proposals from, any person or entity relating to any transaction
involving the sale of the business or assets (other than in the ordinary course
of business), or any of the capital stock of Priveco or Pubco, as applicable, or
any merger, consolidation, business combination, or similar transaction other
than as contemplated by this Agreement.

7.6                      Conduct
of Priveco and Pubco Business Prior to Closing. Except as expressly
contemplated by this Agreement or for purposes in furtherance of this Agreement,
from the date of this Agreement to the Closing Date, and except to the extent
that Pubco otherwise consents in writing, Priveco and Sun Cal Canada will
operate their respective business substantially as presently operated and only
in the ordinary course and in compliance with all applicable laws, and use its
best efforts to preserve intact its good reputation and present business
organization and to preserve its relationships with persons having business
dealings with it. Likewise, from the date of this Agreement to the Closing Date,
and except to the extent that Priveco otherwise consents in writing, Pubco will
operate its business substantially as presently operated and only in the
ordinary course and in compliance with all applicable laws, and use its best
efforts to preserve intact its good reputation and present business organization
and to preserve its relationships with persons having business dealings with
it.

7.7                      Certain
Acts Prohibited – Priveco and Sun Cal Canada. Except as expressly
contemplated by this Agreement or for purposes in furtherance of this Agreement,
between the date of this Agreement and the Closing Date, neither Priveco nor Sun
Cal Canada will, without the prior written consent of Pubco:

	 	(a) 	
      amend its articles, bylaws or other incorporation
      documents;

- 19 -

	 	(b) 	
      incur any liability or obligation other than in the
      ordinary course of business or encumber or permit the encumbrance of any
      properties or assets of Priveco or Sun Cal Canada except in the ordinary
      course of business;

	 	 	 	 
	 	(c) 	
      dispose of or contract to dispose of any Priveco or Sun
      Cal Canada property or assets, except in the ordinary course of business
      consistent with past practice;

	 	 	 	 
	 	(d) 	
      issue, deliver, sell, pledge or otherwise encumber or
      subject to any lien any shares of the Priveco Common Stock, or any rights,
      warrants or options to acquire, any such shares, voting securities or
      convertible securities;

	 	 	 	 
	 	(e) 	
      not:

	 	 	 	 
	 		(i) 	
      declare, set aside or pay any dividends on, or make any
      other distributions in respect of the Priveco Common Stock, or

	 	 	 	 
	 		(ii) 	
      split, combine or reclassify any Priveco Common Stock or
      issue or authorize the issuance of any other securities in respect of, in
      lieu of or in substitution for shares of Priveco Common Stock;

	 	 	 	 
	 	(f) 	
      not materially increase benefits or compensation expenses
      of Priveco, other than as contemplated by the terms of any employment
      agreement in existence on the date of this Agreement, increase the cash
      compensation of any director, executive officer or other key employee or
      pay any benefit or amount not required by a plan or arrangement as in
      effect on the date of this Agreement to any such
person.

7.8                      Certain
Acts Prohibited - Pubco. Between the date of this Agreement and the Closing
Date, Pubco will not, without the prior written consent of Priveco:

	 	(a) 	
      incur any liability or obligation or encumber or permit
      the encumbrance of any properties or assets of Pubco except in the
      ordinary course of business consistent with past practice;

	 	 	 
	 	(b) 	
      dispose of or contract to dispose of any Pubco property
      or assets except in the ordinary course of business consistent with past
      practice; or

	 	 	 
	 	(c) 	
      materially increase benefits or compensation expenses of
      Pubco, increase the cash compensation of any director, executive officer
      or other key employee or pay any benefit or amount to any such
    person.

7.9                      Public
Announcements. Pubco and Priveco each agree that they will not release or
issue any reports or statements or make any public announcements relating to
this Agreement or the Transaction contemplated herein without the prior written
consent of the other party, except as may be required upon written advice of
counsel to comply with applicable laws or regulatory requirements after
consulting with the other party hereto and seeking their reasonable consent to
such announcement. Priveco acknowledges that Pubco must comply with securities
laws requiring full disclosure of material facts and agreements in which it is
involved, and will co-operate to assist Pubco in meeting its obligations. 

8. CLOSING

- 20 -

8.1                     
Closing. The Closing shall take place on the Closing Date at the offices
of the lawyers for Pubco or at such other location as agreed to by the parties.
Notwithstanding the location of the Closing, each party agrees that the Closing
may be completed by the exchange of undertakings between the respective legal
counsel for Priveco and Pubco, provided such undertakings are satisfactory to
each party’s respective legal counsel.

8.2                      Closing
  Deliveries of Priveco, Sun Cal Canada and the Selling Shareholders. At Closing,
  Priveco, Sun Cal Canada and the Selling Shareholders will deliver or cause to
  be delivered the following, fully executed and in the form and substance reasonably
  satisfactory to Pubco:

	 	(a) 	
      copies of all resolutions and/or consent actions adopted
      by or on behalf of the board of directors of Priveco and Sun Cal Canada
      evidencing approval of this Agreement and the Transaction;

	 	 	 	 
	 	(b) 	
      if any of the Selling Shareholders appoint any person, by
      power of attorney or equivalent, to execute this Agreement or any other
      agreement, document, instrument or certificate contemplated by this
      agreement, on behalf of the Selling Shareholder, a valid and binding power
      of attorney or equivalent from such Selling Shareholder;

	 	 	 	 
	 	(c) 	
      share certificates representing the Priveco Shares as
      required by Section 2.3 of this Agreement;

	 	 	 	 
	 	(d) 	
      warrant certificate(s) representing the outstanding
      warrants to purchase up to 1,125,000 shares of Priveco Common Stock at the
      price of US$1.50 per share.

	 	 	 	 
	 	(e) 	
      all certificates and other documents required by Section
      6.1 of this Agreement;

	 	 	 	 
	 	(f) 	
      a certificate of an officer of each of Priveco and Sun
      Cal Canada, dated as of Closing, certifying that:

	 	 	 	 
	 		(i) 	
      each respective covenant and obligation of Priveco and
      Sun Cal Canada has been complied with, and

	 	 	 	 
	 		(ii) 	
      each respective representation, warranty and covenant of
      Priveco and Sun Cal Canada is true and correct at the Closing as if made
      on and as of the Closing; and

	 	 	 	 
	 	(g) 	
      the Priveco and Sun Cal Canada Documents and any other
      necessary documents, each duly executed by Priveco, as required to give
      effect to the Transaction.

8.3                     
Closing Deliveries of Pubco. At Closing, Pubco will deliver or cause to
be delivered the following, fully executed and in the form and substance
reasonably satisfactory to Priveco:

	 	(a) 	
      copies of all resolutions and/or consent actions adopted
      by or on behalf of the board of directors of Pubco evidencing approval of
      this Agreement and the Transaction;

- 21 -

	 	(b) 	
      share certificates representing the Pubco Shares to the
      Selling Shareholders in the amounts as set out in Schedule 1;

	 	 	 	 
	 	(c) 	
      warrant certificates representing warrants to purchase
      1,125,000 Pubco Common Stock at the price of $1.50 per share;

	 	 	 	 
	 	(d) 	
      all certificates and other documents required by Section
      6.2 of this Agreement;

	 	 	 	 
	 	(e) 	
      a certificate of an officer of Pubco, dated as of
      Closing, certifying that:

	 	 	 	 
	 		(i) 	
      each covenant and obligation of Pubco has been complied
      with, and

	 	 	 	 
	 		(ii) 	
      each representation, warranty and covenant of Pubco is
      true and correct at the Closing as if made on and as of the Closing;
      and

	 	 	 	 
	 	(f) 	
      the Pubco Documents and any other necessary documents,
      each duly executed by Pubco, as required to give effect to the
      Transaction;

9. TERMINATION

9.1                      Termination.
This Agreement may be terminated at any time prior to the Closing Date
contemplated hereby by:

	 	(a) 	
      mutual agreement of Pubco and Priveco;

	 	 	 
	 	(b) 	
      Pubco, if there has been a material breach by Priveco,
      Sun Cal Canada or any of the Selling Shareholders of any material
      representation, warranty, covenant or agreement set forth in this
      Agreement on the part of Priveco, Sun Cal Canada or the Selling
      Shareholders that is not cured, to the reasonable satisfaction of Pubco,
      within ten business days after notice of such breach is given by Pubco
      (except that no cure period will be provided for a breach by Priveco, Sun
      Cal Canada or the Selling Shareholders that by its nature cannot be
      cured);

	 	 	 
	 	(c) 	
      Priveco, if there has been a material breach by Pubco of
      any material representation, warranty, covenant or agreement set forth in
      this Agreement on the part of Pubco that is not cured by the breaching
      party, to the reasonable satisfaction of Priveco, within ten business days
      after notice of such breach is given by Priveco (except that no cure
      period will be provided for a breach by Pubco that by its nature cannot be
      cured);

	 	 	 
	 	(d) 	
      Pubco or Priveco, if the Transaction contemplated by this
      Agreement has not been consummated prior to March 25, 2007, unless Pubco
      and Priveco agree to extend such date in writing; or

	 	 	 
	 	(e) 	
      Pubco or Priveco, if any injunction or other order of a
      governmental entity of competent authority prevents the consummation of
      the Transaction contemplated by this Agreement.

9.2                     
Effect of Termination. In the event of the termination of this Agreement
as provided in Section 9.1, this Agreement will be of no further force or
effect, provided, however, 

- 22 -

that no termination of this Agreement will relieve any party of
liability for any breaches of this Agreement that are based on a wrongful
refusal or failure to perform any obligations.

10. INDEMNIFICATION, REMEDIES, SURVIVAL

10.1                      Certain
Definitions. For the purposes of this Section 10, the terms “Loss”
and “Losses” mean any and all demands, claims, actions or causes of
action, assessments, losses, damages, liabilities, costs, and expenses,
including without limitation, interest, penalties, fines and reasonable
attorneys, accountants and other professional fees and expenses, but excluding
any indirect, consequential or punitive damages suffered by Pubco or Priveco
including damages for lost profits or lost business opportunities.

10.2                     
Priveco and Sun Cal Canada Indemnity. Priveco and Sun Cal Canada will
jointly and severally indemnify, defend, and hold harmless Pubco and its
shareholders from, against, and in respect of any and all Losses asserted
against, relating to, imposed upon, or incurred by Pubco and its shareholders by
reason of, resulting from, based upon or arising out of:

	 	(a) 	
      any misrepresentation, misstatement or breach of warranty
      of Priveco or Sun Cal Canada contained in or made pursuant to this
      Agreement, any Priveco and Sun Cal Canada Document or any certificate or
      other instrument delivered pursuant to this Agreement; and

	 	 	 
	 	(b) 	
      the breach or partial breach by Priveco or Sun Cal Canada
      of any covenant or agreement of Priveco or Sun Cal Canada made in or
      pursuant to this Agreement, any Priveco and Sun Cal Canada Document or any
      certificate or other instrument delivered pursuant to this
    Agreement.

10.3                      Selling
Shareholders Indemnity. The Selling Shareholders will and do hereby
indemnify, defend, and hold harmless Pubco and its shareholders from, against,
and in respect of any and all Losses asserted against, relating to, imposed
upon, or incurred by Pubco and its shareholders by reason of, resulting from,
based upon or arising out of:

	 	(a) 	
      any breach by the Selling Shareholders of Section 2.2 of
      this Agreement; or

	 	 	 
	 	(b) 	
      any misstatement, misrepresentation or breach of the
      representations and warranties made by the Selling Shareholders contained
      in or made pursuant to the certificate set out in Schedule 2, executed by
      each Selling Shareholder as part of the share exchange procedure detailed
      in Section 2.3 of this Agreement.

10.4                     
Pubco Indemnity. Pubco will indemnify, defend, and hold harmless Priveco,
Sun Cal Canada and the Selling Shareholders from, against, for, and in respect
of any and all Losses asserted against, relating to, imposed upon, or incurred
by Priveco, Sun Cal Canada and the Selling Shareholders by reason of, resulting
from, based upon or arising out of:

	 	(a) 	
      any misrepresentation, misstatement or breach of warranty
      of Pubco contained in or made pursuant to this Agreement, any Pubco
      Document or any certificate or other instrument delivered pursuant to this
      Agreement; or

	 	 	 
	 	(b) 	
      the breach or partial breach by Pubco of any covenant or
      agreement of Pubco made in or pursuant to this Agreement, any Pubco
      Document or any certificate or other instrument delivered pursuant to this
      Agreement.

- 23 -

10.5                      Survival
of Indemnification. Notwithstanding Section 11.1 hereof, the indemnification
provisions of this Section 10 will survive the Closing Date and will continue in
full force and effect until two (2) years after the Closing Date.

11. GENERAL

11.1                     
Effectiveness of Representations; Survival. Each party is entitled to
rely on the representations, warranties and agreements of each of the other
parties and all such representation, warranties and agreement will be effective
regardless of any investigation that any party has undertaken or failed to
undertake. The representations, warranties and agreements will survive the
Closing Date and continue in full force and effect until two (2) years after the
Closing Date.

11.2                      Further
Assurances and Provision of Information. Each of the parties hereto will
co-operate with the others and execute and deliver to the other parties hereto
such other instruments and documents and take such other actions as may be
reasonably requested from time to time by any other party hereto as necessary to
carry out, evidence, and confirm the intended purposes of this Agreement.
Additionally, Priveco and the Selling Shareholders acknowledge that under SEC
rules Pubco must provide registration level information regarding the business
of Priveco and agree to provide such information to Pubco in a timely manner
prior to closing, and allow Pubco and its representatives free access to all
books, records, and other information of Priveco and to its personnel and
advisors.

11.3                     
Amendment. This Agreement may not be amended except by an instrument in
writing signed by each of the parties.

11.4                      Expenses.
Each party to this Agreement will bear its respective expenses incurred in
connection with the preparation, execution, and performance of this Agreement
and the Transaction contemplated hereby, including all fees and expenses of
agents, representatives, counsel, and accountants.

11.5                     
Entire Agreement. This Agreement, the schedules attached hereto and the
other documents in connection with this transaction contain the entire agreement
between the parties with respect to the subject matter hereof and supersede all
prior arrangements and understandings, both written and oral, expressed or
implied, with respect thereto. Any preceding correspondence or offers are
expressly superseded and terminated by this Agreement.

11.6                     
Notices. All notices and other communications required or permitted under
to this Agreement must be in writing and will be deemed given if sent by
personal delivery, faxed with electronic confirmation of delivery,
internationally-recognized express courier or registered or certified mail
(return receipt requested), postage prepaid, to the parties at the addresses
listed on the first page of this Agreement (or at such other address for a party
as will be specified by like notice). All such notices and other communications
will be deemed to have been received:

	 	(a) 	
      in the case of personal delivery, on the date of such
      delivery;

	 	 	 
	 	(b) 	
      in the case of a fax, when the party sending such fax has
      received electronic confirmation of its
delivery;

- 24 -

	 	(c) 	
      in the case of delivery by internationally-recognized
      express courier, on the business day following dispatch; and

	 	 	 
	 	(d) 	
      in the case of mailing, on the fifth business day
      following mailing.

11.7                     
Headings. The headings contained in this Agreement are for convenience
purposes only and will not affect in any way the meaning or interpretation of
this Agreement.

11.8                     
Benefits. This Agreement is and will only be construed as for the benefit
of or enforceable by those persons party to this Agreement.

11.9                     
Assignment. This Agreement may not be assigned (except by operation of
law) by any party without the consent of the other parties.

11.10                     
Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the Province of British Columbia, Canada applicable
to contracts made and to be performed therein.

11.11                      Construction.
The language used in this Agreement will be deemed to be the language chosen by
the parties to express their mutual intent, and no rule of strict construction
will be applied against any party.

11.12                      Gender.
All references to any party will be read with such changes in number and
gender as the context or reference requires.

11.13                      Counterparts.
This Agreement may be executed in one or more counterparts, all of which will be
considered one and the same agreement and will become effective when one or more
counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same
counterpart.

11.14                     
Fax Execution. This Agreement may be executed by delivery of executed
signature pages by fax and such fax execution will be effective for all
purposes.

11.15                      Independent
Legal Advice. All Selling Shareholders confirm that they have been given an
opportunity to seek and obtain independent legal advice prior to execution of
this Agreement and cannot and do not rely on the representations of Pubco or its
advisors respecting the legal effects of this Agreement. 

11.16                      Schedules
and Exhibits. The schedules and exhibits are attached to this Agreement and
incorporated herein.

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

SUN CAL ENERGY, INC. (a Nevada corporation)

	Per: 	/s/ George Drazenovic 	 
	  	Authorized Signatory 	 
	  	Name: George Drazenovic 	 
	 	Title: President
	 

- 25 -

SUN CAL ENERGY, CORP. (a private Nevada corporation)

	Per: 	/s/ George Drazenovic 	 
	  	Authorized Signatory 	 
	  	Name: George Drazenovic 	 
	 	Title: President
	 

SUN CAL ENERGY CANADA CORP. (a private British Columbia
corporation)

	Per: 	/s/ George Drazenovic 	 
	  	Authorized Signatory 	 
	  	Name: George Drazenovic 	 
	 	Title: President<PAGE>

                                                                  EXHIBIT 10.7

                               KELLWOOD COMPANY

               CORPORATE DEVELOPMENT INCENTIVE PLAN, AS RESTATED

1.       PURPOSE

         A.       To cause the interests of key executives and stockholders to
                  coincide by basing certain of the executive long-term
                  incentives on the achievement of long range corporate goals.

         B.       To provide meaningful incentive to Participants to improve
                  the Company's long-term growth and profitability.

         C.       To encourage Participants to enhance the growth and
                  profitability of the entire Company rather than
                  concentrating efforts on only a specific segment of the
                  Company.

         D.       To encourage acceptance and continuation of employment.

2.       NAME OF PLAN

         The Plan shall be known as the Kellwood Company Corporate Development
         Incentive Plan, as restated.

3.       DEFINITIONS

         The following words and phrases, when used in this Plan, shall have
         the meanings indicated herein:

         (1)      Award:                     A number of Shares in Stock earned
                                             by a Participant under the Plan.

         (2)      Change in Control:         Change in Control of the Company
                                             shall be defined to have occurred
                                             when (i) any one person, or more
                                             than one person acting as a
                                             group, acquires ownership of
                                             stock of the Company that,
                                             together with stock held by such
                                             person or group, constitutes more
                                             than 50 percent of the total fair
                                             market value or total voting
                                             power of the stock of the
                                             Company, and such acquisition is
                                             deemed a "change in the ownership
                                             of a corporation" under Treasury
                                             regulation 1.409A-3(g)(5)(v); or
                                             (ii) either (1) any one person,
                                             or more than one person acting as
                                             a group, acquires (or has
                                             acquired during the 12-month
                                             period ending on the date of the
                                             most recent

                                    1                                Rev. 9/06

<PAGE>
<PAGE>

                                             acquisition by such person or
                                             persons) ownership of stock of
                                             the Company possessing 35 percent
                                             or more of the total voting power
                                             of the stock of the Company, or
                                             (2) a majority of members of the
                                             Company's board of directors is
                                             replaced during any 12-month
                                             period by directors whose
                                             appointment or election is not
                                             endorsed by a majority of the
                                             member's of the Company's board
                                             of directors prior to the date of
                                             the appointment or election, and
                                             in the case of subparagraph (1)
                                             or (2) there is a "change in the
                                             effective control of the
                                             corporation" under Treasury
                                             regulation 1.409A-3(g)(5)(vi); or
                                             (iii) any one person, or more
                                             than one person acting as a
                                             group, acquires (or has acquired
                                             during the 12-month period ending
                                             on the date of the most recent
                                             acquisition by such person or
                                             persons) assets from the
                                             Corporation that have a total
                                             gross fair market value equal to
                                             or more than 40 percent of the
                                             total gross fair market value of
                                             all of the assets of the Company
                                             immediately prior to such
                                             acquisition or acquisitions, and
                                             such acquisition or acquisitions
                                             constitute a "change in the
                                             ownership of a substantial
                                             portion of a corporation's
                                             assets" under Treasury regulation
                                             1.409A-3(g)(5)(vii).

          (3)     Committee:                 The Compensation and Stock Option
                                             Committee of the Company's Board
                                             of Directors, comprised of
                                             non-employee directors (within
                                             the meaning set forth in Rule
                                             16b-3 promulgated under the
                                             Exchange Act), none of whom shall
                                             be eligible to participate in
                                             this Plan.

         (4)      Company:                   Kellwood Company

         (5)      Disability:                A physical or mental condition,
                                             which in the judgment of the
                                             Committee, based on medical
                                             evidence acceptable to the
                                             Committee, would result in a
                                             Participant being totally and
                                             permanently disabled

                                    2                                Rev. 9/06

<PAGE>
<PAGE>

                                             under normal Company policy.

         (6)      Employer:                  Kellwood Company and each of its
                                             subsidiaries, affiliates and
                                             related companies to which the
                                             Plan has been extended by the
                                             Committee.

         (7)      Escrow Agent:              The Escrow Agent selected by the
                                             Committee to receive and hold
                                             Stock awarded under the Plan.

         (8)      Participant:               An employee of the Employer
                                             selected by the Committee to
                                             participate in the Plan. A
                                             Participant will be selected by
                                             the Committee in its sole
                                             discretion, based upon the
                                             Committee's judgment of the
                                             employee's ability to
                                             significantly affect major
                                             decisions and actions which
                                             influence the continued
                                             profitable growth and development
                                             of the Company, the value of the
                                             employee's continuing service and
                                             the probable detriment of his or
                                             her employment with competitors.

         (9)      Retirement:                The termination of a Participant's
                                             employment with all Employers
                                             upon or after the attainment of
                                             age 65 or upon or after the
                                             attainment of both 15 years of
                                             service and age 55.

         (10)     Shares or Stock:           Shares of the Company's common
                                             stock.

         (11)     Targeted Criterion:        The level of performance during a
                                             performance period designated by
                                             the Committee which must be met
                                             for the full amount of an Award
                                             to be earned by a Participant.
                                             The measures and objectives may
                                             be based on earnings per share,
                                             return on assets or equity, cash
                                             flow, revenue or income growth,
                                             earnings before income taxes but
                                             excluding any gain on the sale of
                                             assets, economic value added or
                                             on other criteria which the
                                             Committee establishes.

         (12)     Targeted Shares:           The number of Shares which a
                                             Participant can earn at 100% of
                                             the Targeted

                                    3                                Rev. 9/06

<PAGE>
<PAGE>

                                             Criterion.

4.       SHARES RESERVED FOR AWARDS

         The total number of Shares reserved for issuance under this Plan
         shall be 1,000,000 Shares plus the number of Shares remaining
         available for issuance under the Plan prior to its restatement. In
         the event Shares of Common Stock are retained by the Company pursuant
         to a Participant's election to satisfy his or her tax withholding
         obligation, the number of Shares retained shall be available for
         issuance under the Plan. The maximum number of Shares subject to an
         Award to any Participant in any fiscal year shall be 50,000 Shares.
         The number of Shares reserved for issuance hereunder and the maximum
         number of Shares subject to an Award to any Participant shall be
         subject to adjustment as provided in Section 9 hereof.

5.       AWARD PROCEDURE

         A.       The Committee, upon the recommendation of the Chief
                  Executive Officer, shall determine each Participant, each
                  Participant's Targeted Shares and shall make Awards to the
                  Participants in accordance with further provisions of the
                  Plan.

         B.       The Committee shall determine the following at the time of
                  setting the Targeted Criterion:

                  1.       The Targeted Criterion level for the performance
                           period necessary for a Participant to earn any
                           Award.

                  2.       The Targeted Criterion level for the performance
                           period necessary to earn the Target Shares.

                  3.       Any known or anticipated Board actions or changes
                           in tax laws or regulations which are to be
                           excluded, if any, from the Targeted Criterion
                           levels identified by the Committee.

         C.       The Committee shall determine the following at the time of
                  making each Award:

                  1.       The extent that the Targeted Criterion of the
                           Company have been met.

                  2.       The number of Shares earned.

6.       ADJUSTMENTS TO TARGETED CRITERION

         The Committee shall have the power, exercisable at its sole
         discretion, to adjust the Targeted Criterion to reflect any major
         alterations in the course of the business or to exclude the effects
         of any action by the Board or of any changes in the tax laws or
         regulations which impact significantly on the Targeted Criterion and
         which were not anticipated on the date a Participant's Targeted
         Shares were determined. However, the Committee may not exercise its
         discretion to increase the amount of any Award to a

                                    4                                Rev. 9/06

<PAGE>
<PAGE>

         Participant who is a "covered employee" under Section 162(m) of the
         Internal Revenue Code.

7.       PAYMENT

         A.       The payment of a Participant's Award shall be made in
                  Company Stock.

         B.       The Company shall place in escrow with the Escrow Agent, in
                  the name of the Participant or a trust established for the
                  Participant's benefit, 100% of the stock earned by the
                  Participant under this Plan. The restrictions on the Stock
                  placed in escrow shall lapse, and the Stock shall be
                  transferred to the Participant from the escrow at the rate
                  of 25% a year, with the first release on the date selected
                  by the Committee in the year of the award, and the remaining
                  75% in three equal installments commencing on the first
                  business day in March of the year following the calendar
                  year in which the award is earned and on each first business
                  day of each March thereafter.

         C.       In the event of the death, Disability or Retirement of a
                  Participant during the performance period, the Participant
                  or his beneficiary shall earn, at the conclusion of the
                  performance period, a pro rata portion of the Award which
                  would otherwise have been due to him had he remained an
                  Employee until the end of the performance period based on
                  the number of full months during which the Participant was
                  employed during the performance period.

         D.       In the event of Disability of the Participant, any stock
                  which was in escrow as of the date of the Participant's
                  Disability, or was added thereto at the end of the then
                  current performance period, shall be released from escrow in
                  accordance with the release dates at the same rate as if the
                  Participant continued as an Employee.

         E.       In the event of the death of a Participant, any Stock which
                  was in escrow as of the date of the Participant's death, or
                  was added thereto at the end of the then current performance
                  period, shall be released from escrow and delivered to such
                  one or more beneficiaries as the Participant may have
                  designated in writing and filed with the Secretary of the
                  Committee. Beneficiaries may be named contingently or
                  successively and may share in different portions, if so
                  designated by the Participant. If no beneficiary has been
                  designated, delivery shall be made to the estate of the
                  decedent.

         F.       In the event of Retirement of a Participant, any Stock which
                  was in escrow as of the date of the Participant's
                  Retirement, or was added thereto at the end of the then
                  current performance period, shall be released from escrow
                  and delivered to the Participant; provided that in the event
                  of Retirement of a Key Employee, no Stock shall be released
                  from escrow and delivered to the Participant prior to the
                  earlier of the date provided in Section 7B or the date that
                  is 6 months after the Participant's Retirement. A Key
                  Employee is an employee determined under Section 416(i) of
                  the Internal Revenue Code (without regard to Paragraph (5)
                  thereof), and includes (i) an officer of an Employer (but
                  not more than 50) having

                                    5                                Rev. 9/06

<PAGE>
<PAGE>

                  an annual compensation greater than $135,000 (as adjusted to
                  reflect cost-of-living increases); (ii) a 5-percent owner of
                  an Employer; or (iii) a 1-percent owner of an Employer
                  having annual compensation from the Employers of more than
                  $150,000.

8.       FORFEITURES

         Upon the termination of employment of a Participant from the services
         of all Employers due to any reason other than death, Disability, or
         Retirement, any Stock in escrow on the date of termination shall be
         forfeited by the Participant. Any Stock forfeited hereunder shall be
         available for further awards under the Plan.

9.       CHANGE IN CAPITALIZATION

         A.       In the event of any stock dividend, stock split,
                  reclassification or other changes in the Stock, the
                  Committee shall make such adjustments in the Targeted
                  Shares, Stock in escrow, reserved Shares and maximum Shares
                  awarded to any Participant as it deems equitable to
                  accomplish the purpose of the Plan. A Committee's
                  determination as to any adjustments shall be final and
                  conclusive.

         B.       Each participant who receives an Award of Stock under the
                  Plan shall be entitled to dividends on the Shares and to all
                  the rights of a stockholder with respect to the Stock from
                  the date Stock was issued and placed in escrow. Any Stock
                  received as a result of a stock dividend or stock split, or
                  otherwise in respect of any Stock in escrow, shall be
                  subject to the same restrictions as the original Stock and
                  placed in escrow.

10.      ADMINISTRATION AND INTERPRETATION OF THE PLAN

         The Committee shall have full responsibility for the administration
         of the Plan and may establish rules deemed by it to be appropriate to
         carry out the purposes of the Plan. The decision of the Committee
         with respect to selection of Participants, the amount of Targeted
         Shares and Awards, and the interpretation of the Plan shall be
         conclusive and binding on all parties.

11.      MISCELLANEOUS

         A.       By acceptance of any Award under this Plan, the Participant
                  agrees that the value of any Stock issued to him pursuant to
                  an Award is special compensation and that the value of the
                  Stock will not be taken into account in determining the
                  amount of any pension or other retirement benefits under any
                  Employer's retirement program, the amount of life insurance
                  coverage under any Employer's program, or be considered as
                  "income" in determining the gross monthly indemnity under
                  any Employer's long-term disability benefit program.

         B.       No interest of a Participant may be sold, donated, pledged,
                  or otherwise assigned or transferred in whole or in part,
                  except by will or the laws of descent and distribution.

                                    6                                Rev. 9/06

<PAGE>
<PAGE>

         C.       Participation in the Plan does not give a Participant any
                  right to be retained as an employee of any Employer.

         D.       The delivery of any Stock under the Plan to a Participant
                  may also be subject to such other provisions as the
                  Committee determines appropriate, including any which may be
                  considered necessary to comply with federal or state
                  securities laws, stock exchange requirements or tax
                  withholding requirements.

12.      ADOPTION OF AMENDMENTS OR TERMINATION OF THE PLAN

         The Committee shall have the right to amend or modify this Plan from
         time to time, or to terminate this Plan entirely or to suspend the
         establishment of Targeted Shares; provided, however, no amendment or
         modification of this Plan or its termination shall affect or impair
         the provisions of any Targeted Shares theretofore established or any
         Award theretofore earned without the written consent of each
         Participant whose Targeted Shares or Award would be affected or
         impaired by the amendment, modification or termination.

13.      IMMEDIATE RELEASE FROM ESCROW

         Notwithstanding the other provisions of this Plan, (i) upon a Change
         in Control of the Company, or (ii) pursuant to a resolution of the
         Committee passed after commencement of a tender offer or other
         acquisition plan or program by any person which, if consummated in
         accordance with its terms, would result in a Change in Control of the
         Company or its merger, consolidation, share exchange or sale of
         substantially all of its assets; then all restrictions on Stock in
         escrow shall immediately lapse, and the Stock shall be released from
         escrow and delivered to the Participants.

14.      WITHHOLDING

         When a participant is required to pay to the Company an amount to be
         withheld under applicable tax laws in connection with the release of
         Shares under the Plan, the Committee may, in its discretion and
         subject to such rules as it may adopt, permit the Participant to
         satisfy the obligation, in whole or in part, by electing to have the
         Company withhold Shares having a fair market value equal to the
         amount required to be withheld. The election must be irrevocable and
         made on or before the date that the amount of tax to be withheld is
         determined (the "Tax Date"). The fair market value of the shares to
         be withheld is the average of the high and low market price of the
         Common Stock on the New York Stock Exchange on the Tax Date. The fair
         market value of any fractional shares will be paid in cash.

                                    7                                Rev. 9/06

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