Document:

Crailar Technologies Inc.: Exhibit 10.27 - Filed by newsfilecorp.com

	DEMAND CONVERTIBLE PROMISSORY
      NOTE 

 

 

From: 

CRAILAR TECHNOLOGIES INC.

 

To: 

ROBERT EDMUNDS 

 

 

Crailar Technologies Inc. 
Suite 305,
4420 Chatterton Way, Victoria, British Columbia, Canada, V8X 5J2 
__________

DEMAND CONVERTIBLE PROMISSORY
NOTE 

Principal Sum of CAD$500,000.00

	Principal: 	CAD$500,000.00. 	Made at Victoria, B.C., Canada. 
	 	 	 
	Interest: 	20% per annum. 	  
	 	 	 
	Maturing: 	On demand. 	  

                       
THIS PROMISSORY NOTE is provided, dated and made
effective as of the 11th day of October, 2013 (the “Effective
Date”). 

FROM:

  
    CRAILAR TECHNOLOGIES INC., a company incorporated
      under the laws of the Province of British Columbia, Canada, and having an
      address for notice and delivery and executive offices located at Suite 305, 4420
      Chatterton Way, Victoria, British Columbia, Canada, V8X 5J2 

    (the
      “Borrower”); 

  

     OF THE FIRST PART

TO: 

  
    ROBERT EDMUNDS, businessperson, having an address
      for notice and delivery located at 23 Cambridge Road NW, Calgary, Alberta,
      Canada, T2K 1R1 

    (the “Lender”); 

  

OF THE SECOND PART

  
    (and the Borrower and the Lender being hereinafter singularly
      also referred to as a “Party” and collectively referred to as the
      “Parties” as the context so requires). 

  

Principal and Interest of the Loan

                       
FOR VALUABLE CONSIDERATION, receipt whereof is hereby
acknowledged, the undersigned, Borrower, hereby promises to pay to the Lender,
or the holder of this promissory note (the “Promissory Note”), in
accordance with the terms and conditions referenced herein, the aggregate
principal sum of five hundred thousand dollars (CAD$500,000.00) in lawful money
of Canada (hereinafter referred to as the “Principal Sum”) together with
simple interest accruing on the Principal Sum and commencing on the
above-referenced Effective Date of this Promissory Note at the rate of twenty
percent (20%) per annum, and not in advance, both before and after default,
maturity and judgment (herein the “Interest”); with any such outstanding
Interest to be payable in full to the Lender on repayment of the Principal Sum in the manner as set forth immediately
hereinbelow (and with the totality of the within Principal Sum advance by the
Lender to the Borrower being the “Loan” hereunder). 

- 2 - 

Repayment of the Loan

                       
The Principal Sum of this Loan, together with all outstanding Interest accrued
thereon as specified hereinabove (the “Loan Amount” from time to time),
is hereby irrevocably and unconditionally due and payable by the Borrower to the
order and direction of the Lender in Calgary, Alberta, Canada, at or before 5:00
p.m. (Calgary, Alberta, Canada, time) on the second business day after the
Lender provides the Borrower with written notice demanding the repayment thereof
(such date being the “Final Principal Sum Payment Date”).

                       
Subject at all times to the Lender’s Right of Election for Conversion as set
forth hereinbelow, the Borrower may prepay and redeem any portion of the
Principal Sum portion of the Loan, and its then related Interest, in whole or in
part at any time prior to the Final Principal Sum Payment Date (the “Right of
Redemption”) and in the manner as set forth immediately hereinbelow by
providing the Lender with no less than five calendar days’ prior written notice
(the “Redemption Notice”) of its Right of Redemption intention to redeem
and repay all or any portion of the Loan Amount which would be due and owing by
the Borrower to the Lender at the end of such five-day period (collectively, the
“Redemption Amount”) (such day at the end of such five-day period being
the “Redemption Date” and, for clarity, such Redemption Date would be the
date to which such Principal Sum and Interest would be calculated and due and
payable to the Lender at the close of business, in Calgary, Alberta, Canada, on
such Redemption Date). 

                       
In order to provide such Redemption Notice the Borrower will be required, at the
date of its delivery to the Lender of the Redemption Notice, to provide to the
Lender, a certified cheque or bank draft representing the entire Redemption
Amount and made payable to the Lender in Canadian funds, or funds by way of wire
transfer to such designation as may be directed by the Lender in its sole and
absolute discretion, in the amount of any such Redemption Amount. Thereupon, and
should the proposed Redemption Amount in fact represent all of the Loan Amount
which would be due and owing by the Borrower to the Lender under this Promissory
Note at the Redemption Date, then the Lender will be required to immediately
provide to the Borrower all such registerable discharges as may be necessary to
relieve the Borrower of any obligation to the Lender under this Promissory Note

Right of Conversion into Financing at any time

                       
Notwithstanding any other provision of this Promissory Note and including,
without limitation, the Borrower’s Right of Redemption as set forth hereinabove,
at any time prior to any Principal Sum Loan’s requisite Final Principal Sum
Payment Date or Redemption Date, as the case may (each such period in time for
each portion of the Principal Sum Loan being a “Conversion Term” herein),
the Lender will have, in addition to all of the rights specifically provided for
in this Promissory Note, the sole and exclusive right and option, in its sole
and absolute discretion, to elect (the “Right of Election”) to convert
any portion of the then Principal Sum Loan and Interest outstanding hereunder
into such identical securities as the Borrower may in the future determine to
issue by way of any equity and/or debt private placement or financing (each
being a “Financing”) while any portion of the Loan is outstanding under
this Promissory Note (in each instance being a “Conversion” herein) 

                       
In this regard, and for greater certainty, it is hereby acknowledged and agreed
by the Parties that the Right of Election will be exercisable by the Lender at
any time during the existence of any Principal Sum which may be outstanding under
this Promissory Note and, furthermore, whether the Company exercises its Right
of Redemption to prepay and redeem all or any portion of the Principal Sum
portion of the Loan at any time prior to the Final Principal Sum Payment Date
hereunder. In other words, and for even greater certainty, the Lender’s entire
Right of Election to convert any remaining Principal Sum outstanding hereunder
pursuant to a Conversion will continue to exist if any portion of the Principal
Sum Loan and Interest is outstanding at any such time during the particular
Conversion Term. 

- 3 - 

Conditions precedent to the within Loan

                       
The Parties acknowledge and agree that the following represent the conditions
precedent to the proposed advancement of the Principal Sum Loan monies
hereunder: 

	 	(a) 	
      the Borrower will use the proceeds of any future
      completed Financing to pay the entire Loan Amount outstanding at that
      time;

	 	 	 
	 	(b) 	
      the Borrower will establish, as soon as reasonably
      practicable after the completion of the next and all future Financings
      thereafter, an interest reserve account for the next scheduled interest
      payment on all of the Borrower’s current secured debenture
    instruments;

	 	 	 
	 	(c) 	
      until the next scheduled interest payment on all of the
      Borrower’s current secured debenture instruments the Borrower will provide
      the Lender with bi-monthly status updates on the Borrower’s current
      financial position;

	 	 	 
	 	(d) 	
      until such time as the within Loan Amount is fully repaid
      the Borrower must maintain its current and minimum contractual/financial
      commitments as they become due;

	 	 	 
	 	(e) 	
      the Borrower will do all that is necessary to appoint
      Lesley Hayes to the Board of Directors of the Borrower immediately
      following the Borrower’s upcoming annual general meeting for
  2013;

	 	 	 
	 	(f) 	
      once the Borrower has fully paid for, owns and has
      delivered into its possession (which is expected this December) that
      certain Wilson Knowles decortication line (reference #EN12074-6) which is
      currently being manufactured for the Borrower in England (the
      “Collateral”), the Borrower shall immediately provide the Lender
      with a registered fixed charge on such Collateral which will remain in
      effect and not be discharged until such time as the entire Loan Amount
      hereunder is repaid; and

	 	 	 
	 	(g) 	
      until such time as the within Loan Amount is fully
      repaid, and save and except for any other loans made to the Borrower
      contemporaneously with the within Loan which are being made for the
      purpose of assisting the Borrower in making its presently scheduled
      interest payment on its current secured debenture instruments; the
      Borrower will not enter any other debt instruments or obligations
      respecting the within Collateral without the Borrower’s prior written
      consent.

General provisions 

                       
The holder of this Promissory Note may, from time to time, grant written
indulgences with respect to certain payment amounts or periods but such
indulgences will not in any way affect the undersigned’s liability upon this Promissory
Note nor will such indulgences vary any other term to which indulgence has not
specifically been granted. No indulgence will be enforceable against the holder
unless granted in writing. 

- 4 - 

                       
If any provision of this Promissory Note is held to be invalid, illegal or
unenforceable, then such will not affect or impair the validity, legality or
enforceability of the remaining provisions. 

                       
WITNESS the hand of the authorized representative of the
undersigned Borrower given under seal as of the Effective Date determined
hereinabove. 

	The COMMON SEAL of 	) 	  
	CRAILAR TECHNOLOGIES INC., 	) 	  
	the Borrower herein, 	) 	  
	was hereunto affixed in the presence of: 	) 	(C/S) 
	  	) 	  
	  	) 	  
	/s/ Jason Finnis
    	) 	  
	Authorized Signatory 	) 	  

______________Park Place Energy Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

CONSULTING AGREEMENT 

THIS AGREEMENT is dated as of the 1st day of
November, 2013, but is effective as of the 1st day of September, 2013 (the
“Effective Date”). 

BETWEEN: 

PARK PLACE ENERGY CORP., a
corporation organized under the laws of the State of Nevada, USA, with its
address at 300, 400 – 5th Ave SW, Calgary, Alberta, Canada T2P 0L6 (the
"Company") 

AND: 

LARSEN ENERGY CONSULTING INC.,
a corporation organized under the laws of Texas, with its address at 3364
Blackburn St., Dallas, Texas 75204 ("LECI").

AND: 

SCOTT C. LARSEN, an individual
whose address is 3364 Blackburn St., Dallas, Texas 75204 ("Larsen").

(Larsen Energy Consulting Inc. and
Larsen are jointly referred to herein as “Consultant”; The Company, LECI
and Larsen are collectively referred to as the “Parties” and individually
as a “Party”) 

WHEREAS: 

A.          The Company desires to retain LECI to provide the Company
with management services in regards to the Company's management and operations
including Larsen acting as the President and Chief Executive Officer of the
Company; and 

B.           LECI has agreed to provide the Services to the Company on
the terms and conditions of this Agreement; and 

C.           Larsen has consented to serve in the positions set forth in
this Agreement. 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of
the mutual covenants and promises set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by each, the Parties hereto agree as follows: 

ARTICLE I 
APPOINTMENT AND AUTHORITY OF LECI

1.1          Appointment of LECI. The Company hereby appoints
LECI to perform the services for the benefit of the Company as hereinafter set
forth (hereafter called the “Services”) 

1 

and the Company hereby authorizes LECI to exercise such powers
as provided under this Agreement. LECI accepts such appointment on the terms and
conditions herein set forth. LECI shall be permitted to identify itself as a
representative of Company for the purpose of performing the Services.

1.2          Performance of Services. The Services hereunder have
been and shall continue to be provided on the basis of the following terms and
conditions: 

	 	(a) 	
      the Services shall include those services customarily
      provided by a President and Chief Executive Officer of public companies,
      including such other management advisory services as may be reasonably
      requested by the Company’s board of Directors from time to time.

	 	 	 
	 	(b) 	
      Larsen, as the individual appointed to the positions of
      President and Chief Executive Officer, shall report directly to the Board
      of Directors of the Company and all such actions of Larsen in such roles
      such be considered as fulfilling the Services hereunder;

	 	 	 
	 	(c) 	
      LECI shall faithfully, honestly and diligently serve the
      Company and cooperate with the Company and utilize reasonable professional
      skill and care commensurate with LECI’s experience and training to ensure
      that the Services rendered hereunder are to the satisfaction of the
      Company, acting reasonably, and LECI shall provide any other services not
      specifically mentioned herein, but which LECI believes necessary or
      appropriate to ensure that the best interests of the Company are
      maintained; and

	 	 	 
	 	(d) 	
      LECI, or Larsen as LECI’s appointed nominee, shall report
      the results of LECI's duties hereunder to the Company’s Board of Directors
      from time to time or to other parties at the direction of the Board of
      Directors and/or the Company from time to time.

1.4          Key Representative. It shall be a material term of
this Agreement that Larsen shall serve as LECI's representative in performing
the Services hereunder. LECI shall not be entitled to delegate any services
hereunder to a representative other than Larsen without the express prior
approval of the Company at its discretion.

1.5          Independent Contractor. In performing the Services,
Consultant shall be an independent contractor and not an employee or agent of
the Company, except that Consultant shall be the agent of the Company solely in
circumstances where Consultant must be the agent to carry out its obligations as
set forth in this Agreement. Nothing in this Agreement shall be deemed to
require Consultant to provide services exclusively to the Company. Consultant
hereby acknowledges that the Company is not required and shall not be required
to make any remittances and payments required of employers by statute on
Consultant's behalf and Consultant or any of its agents shall not be entitled to
the employee benefits provided by the Company to its employees. 

1.6          Appointment as Named Officer. Notwithstanding
anything to the contrary herein, the Parties agree that, although LECI shall
commence providing the Services hereunder as at the Effective Date, Larsen shall
be appointed as President and Chief Executive Officer at a date determined
mutually by the Board of Directors and LECI. Accordingly, until such time as
Larsen is appointed President and Chief Executive Officer, the Parties agree
that all Services to be provided under this Agreement by LECI shall be provided
under the supervision and authority of Company’s current Chief Executive Officer and Board of
Directors. 

2 

ARTICLE II 

LECI'S AGREEMENTS 

2.         1 Expense Statements. LECI may incur reasonable bona
fide expenses in the name of the Company provided that such expenses are
reasonable and relate primarily to the carrying out of the Services and are in
accordance with the Company’s policies which may be in effect from time to time.
LECI will forward all invoices for expenses incurred on behalf of and in the
name of the Company no later than 30 days after being incurred and the Company
agrees to pay said invoices directly on a timely basis. Such reasonable expense
shall include: cell phone, office supplies, Skype, reasonable travel expenses
and the like. “Reasonable” travel expenses includes, for illustrative purposes,
business class air travel (consistent with Company’s policy for executive
officers), accommodation and incidental costs within a hotel suitable for
business affairs, all meals and travel expenses while travelling on behalf of
the Company. 

2.2          Regulatory Compliance. Consultant agrees to use all
reasonable efforts to ensure the Company complies with applicable securities
legislation and regulatory policies in relation to providing the Services,
including but not limited to United States securities laws and the policies of
the United States Securities and Exchange Commission. Nothing in the forgoing
shall be construed to as to make Consultant responsible or liable for ensuring
regulatory compliance of the Company, its shareholders and or other third
parties. 

2.3          Prohibition Against Insider Trading. Consultant
hereby acknowledges that they are aware, and further agrees that Consultant will
reasonably advise those of its directors, officers, employees and agents who may
have access to Confidential Information, that United States securities laws
prohibit any person who has material, non-public information about a company
from purchasing or selling securities of such a company or from communicating
such information to any other person under circumstances in which it is
reasonably foreseeable that such person is likely to purchase or sell such
securities. Nothing in the forgoing shall be construed to as to make Consultant
responsible or liable for any insider trading by any third parties unless it is
done with the express knowledge and express consent of Consultant acting
recklessly in disregard to United States laws and regulations pertaining to
insider trading. 

ARTICLE III 
COMPANY'S AGREEMENTS 

3.1          Basic Compensation. In consideration of the
Services, LECI shall receive compensation for the Services as follows: 

	 	(a) 	
      For the period beginning on the Effective Date until
      completion of the month during which the Phase I Capital Raise (as defined
      below) is completed, US$13,000 per month, payable on the last business day
      of every month;

	 	 	 
	 	(b) 	
      For the period following the month during which the Phase
      I Capital Raise is completed, $18,000 per month payable on the last
      business day of every month;

In this Agreement “Phase I Capital Raise” shall mean a
cash financing by the Company of $10,000,000 in the aggregate that is completed
not later than one year following the Effective Date.

3 

	3.2 	
      Signing Bonus.

	 	 
		
      The Company shall issue to Larsen 400,000 stock options
      issuable under the Company’s 2013 Incentive Equity Plan with each option
      exercisable for a period of three (3) years from the date of issuance to
      purchase one common share of the Company at a price equal to the current
      market price on the date of grant (in USD).

	 	 
	3.3 	
      Performance Based
Compensation.

	 	(a) 	
      The Company undertakes to adopt a long term incentive
      compensation plan (the “LTIP”) which will include provisions for
      the issuance of Restricted Stock Units and Restricted Stock (hereinafter
      collectively called “RSUs”) no later than the Completion of the
      Phase I Capital Raise or at some other earlier date provided at the
      discretion of the Board of Directors of the Company. Provided the Phase I
      Capital Raise is completed within one year of the Effective Date, the
      Company shall issue to Larsen an award of 300,000 fully vested RSUs dated
      as of the date of the execution of final documents for the Phase I Capital
      Raise. The RSU shares issued to Larsen under this provision shall be
      subject to a minimum 2 year hold period during which Larsen shall not sell
      assign or short sell against any such RSU shares.

	 	 	 
	 	(b) 	
      Subject to the adoption of the LTIP, the Company shall
      issue to Larsen 100,000 fully vested RSUs upon each anniversary of this
      Agreement dated as of the date of the execution of final documents for the
      Phase I Capital Raise, so long as this Agreement remains in
  effect.

	 	 	 
	 	(c) 	
      If during the term of this Agreement the Company
      completes any additional cash financing of $10,000,000 or more in the
      aggregate in addition to the Phase I Capital Raise (a “Subsequent
      Capital Raise”), the Company shall issue to LECI 250,000 fully vested
      RSUs upon completion of the first Subsequent Capital Raise and 200,000
      upon completion of a second Subsequent Capital Raise.

	 	 	 
	 	(d) 	
      LECI or Larsen shall be entitled to receive such
      additional compensation awards at the discretion of the Board or, as
      applicable, the compensation committee, which awards shall be awarded from
      time to time for achieving milestones to be agreed upon.

	 	 	 
	 	(e) 	
      With respect to any RSU awards, Larsen shall have the
      right and option to require that the Company withhold up to one third of
      the RSU shares awarded to Larsen and, as to the RSU shares withheld, to
      pay to Larsen the cash equivalent to the Market Price of the shares on the
      date of vesting so as to provide sufficient funds to Larsen for the
      payment of taxes relating to the RSU award.

	3.3 	
      Benefits and Expenses.

	 	(a) 	
      In the month following completion of the documentation
      for Phase I Capital Raise, the Company shall provide (or shall provide an
      allowance for) basic health insurance coverage for Larsen which coverage
      shall remain effective during the Term of this Agreement or any successor
      agreement to this Agreement. The cost

4 

	 		
      of such basic health insurance coverage shall not exceed
      $1,200 per month (inflation adjusted annually at the anniversary date of
      this Agreement) and any such cost in excess of this amount, as may be
      adjusted from time to time for inflation, shall be borne by
    Consultant.

	 	 	 
	 	(b) 	
      During the Term of this Agreement, Larsen shall be
      eligible to participate in any employee benefit plan for employees
      resident in the United States which the Company may maintain from time to
      time.

	 	 	 
	 	(c) 	
      Consultant shall be solely responsible and liable for the
      payment of and compliance with all taxes and levies relating to the
      Compensation paid to LECI for the Services performed under this Agreement,
      including but not limited to, corporate income tax, personal income tax,
      withholding tax, social insurances and labour surcharges, value added tax,
      sales tax and indirect taxes.

	3.4 	
      Office. Subject to approval of the Board of
      Directors, the Company will re- locate its principal office to Dallas,
      Texas. The timing of the relocation shall be mutually agreed upon by the
      Parties.

	 	 
	3.5 	
      Indemnification. Given the extensive nature of the
      activities of the Company prior to the election of Larsen as CEO and
      President, without limiting any other indemnification that may exist under
      the Company's governing documents or under applicable law, the Company
      shall indemnify, protect and hold LECI and Larsen harmless from and
      against any and all liability, claims causes of action, costs and expenses
      of any kind or nature whatsoever arising out of or in any way related to
      any actions that were taken, or should have been taken, by or on behalf of
      the Company prior to the election of Larsen as CEO and President,
      including without limitation actions that were taken, or should have been
      taken, with respect to securities, regulatory and tax
  matters.

ARTICLE IV 
DURATION, TERMINATION AND DEFAULT

4.1          Effective Date. This Agreement shall become
effective as of September 1, 2013 (the "Effective Date"), and shall
continue for a period of 24 months thereafter (the "Term") or until earlier
terminated pursuant to the terms of this Agreement. The Term shall automatically
renew on a month to month basis thereafter unless earlier terminated pursuant to
the terms of this Agreement.

4.2          Termination by Company. Without prejudicing any
other rights that the Company may have hereunder or at law or in equity, the
Company may terminate this Agreement immediately upon delivery of written notice
to LECI if: 

	 	(a) 	
      LECI itself commits a serious breach of US Securities
      Laws which it does not rectify within 15 days upon being notified of such
      breach;

	 	 	 
	 	(b) 	
      LECI breaches any other material term of this Agreement
      and such breach is not cured to the reasonable satisfaction of the Company
      within thirty (30) days after written notice describing the breach in
      reasonable detail is delivered to LECI;

5 

	 	(c) 	
      LECI has violated the confidentiality of any material
      information as provided for in this Agreement;

	 	 	 
	 	(d) 	
      LECI is unable or unwilling to perform the Services under
      this Agreement,

	 	 	 
	 	(e) 	
      LECI commits fraud, gross negligence or willful
      misconduct in the discharge of the Services; or

	 	 	 
	 	(f) 	
      Larsen fails to consent to his appointment as President
      and Chief Executive Officer in a reasonable manner consistent with the
      terms of this agreement for his appointment.

Notwithstanding the foregoing, the Company may terminate this
Agreement without cause by providing not less than thirty (30) days written
notice to LECI.

4.3          Termination by LECI. Without prejudicing any other
rights that LECI may have hereunder or at law or in equity, the Company may
terminate this Agreement immediately upon delivery of written notice to LECI if
the Company breaches Section 3 of this Agreement and such breach continues
uncured for a period of thirty (30) days following delivery to Company of
written notice of said breach. Notwithstanding the foregoing, LECI may terminate
this Agreement without cause by providing not less than thirty (30) days written
notice to the Company.

4.4          Duties Upon Termination. Upon termination of this
Agreement for any reason, LECI shall, promptly deliver: 

	 	(a) 	
      a final accounting, reflecting the balance of expenses
      incurred on behalf of the Company as of the date of termination;
  and

	 	 	 
	 	(b) 	
      all documents pertaining to the Company or this
      Agreement, including but not limited to, all books of account,
      correspondence and contracts, provided that LECI shall be entitled
      thereafter to inspect, examine and copy all of the documents which it
      delivers in accordance with this provision at all reasonable times upon
      three (3) days' notice to the Company. LECI shall be entitled to retain
      copies of all books and records which may be required to enable LECI or
      Larsen to comply with any federal, state or local law or
  regulation.

	4.5 	
      Compensation of LECI on
  Termination.

	 	(a) 	
      Upon termination of this Agreement by the Company for
      cause, LECI shall be entitled to receive as its full and sole compensation
      in discharge of obligations of the Company to LECI under this Agreement
      all sums due and payable under this Agreement to the date of termination
      and LECI shall have no right to receive any further payments; provided,
      however, that the Company shall have the right to offset against any
      payment owing to LECI under this Agreement any damages, liabilities, costs
      or expenses suffered by the Company by reason of the fraud, gross
      negligence or willful act of LECI, to the extent such right has not been
      waived by the Company.

	 	 	 
	 	(b) 	
      Upon termination of this Agreement by the Company without
      cause before the completion of the Phase I Capital Raise, LECI shall be
      entitled to a severance

6 

		
      payment equivalent to one (1) month of the cash
      compensation fee specified in section 3.1(a). Any unvested options, shares
      or RSUs at the time of termination shall be cancelled and returned to
      treasury provided that Consultant shall have six (6) months from the date
      of termination to exercise any vested options. In addition to any hold
      periods or restrictions on the sale of RSU shares as required by
      applicable securities laws and regulations, the hold restriction on the
      sale of RSU shares issued to Larsen shall continue to apply with respect
      to 50% of the RSUs issued per grant; as to the other 50% of the RSUs
      issued per grant, the hold period shall be the lesser of one (1) year or
      the remaining period on the original two (2) year hold period.

	 	 
	(c) 	
      Upon termination of this Agreement by the Company without
      cause after the completion of the Phase I Capital Raise but prior to
      completion of the initial twenty-four (24) month Term, LECI shall be
      entitled to a severance payment equivalent to four (4) months of the cash
      compensation fee specified in section 3.1(b). Any options, shares or RSUs
      unvested at the time of termination shall be cancelled and returned to
      treasury provided that Larsen shall have six (6) months from the date of
      termination to exercise any vested options. In addition to any hold
      periods or restrictions on the sale of RSU shares as required by
      applicable securities laws and regulations, the hold restriction on the
      sale of RSU shares issued to Larsen shall continue to apply with respect
      to 50% of the RSUs issued per grant; as to the other 50% of the RSUs
      issued per grant, the hold period shall be the lesser of one (1) year or
      the remaining period on the original two (2) year hold period.

	 	 
	(d) 	
      Upon termination of this Agreement by LECI without cause
      prior to completion of the initial twenty four (24) month Term, LECI shall
      not be entitled to any severance payment. Any options, shares or RSUs
      unvested at the time of termination shall be cancelled and returned to
      treasury provided that Larsen shall have ninety (90) days from the date of
      termination to exercise any vested options. In addition to any hold
      periods or restrictions on the sale of RSU shares as required by
      applicable securities laws and regulations, the hold restriction on the
      sale of RSU shares issued to Larsen shall continue to apply with respect
      to 50% of the RSUs issued per grant; as to the other 50% of the RSUs
      issued per grant, the hold period shall be the lesser of one (1) year or
      the remaining period on the original two (2) year hold
  period.

ARTICLE V 
CONFIDENTIALITY AND NON-COMPETITION 

5.1          Maintenance of Confidential Information. Consultant
acknowledges that in the course of its appointment hereunder Consultant will,
either directly or indirectly, have access to and be entrusted with information
(whether oral, written or by inspection) relating to the Company or its
respective affiliates, associates or customers (the "Confidential Information").
For the purposes of this Agreement, "Confidential Information" includes, without
limitation, any and all knowledge, developments, methods, techniques, processes,
designs, documentation, data, specifications, technical reports, employee and
contractor information, certain financial information, plans and any other thing
or information. Consultant acknowledges that the Confidential Information
includes proprietary rights, trade secrets, information which may be cause harm
if publicly disclosed and information which disclosure is subject to securities
laws. Accordingly, Consultant covenants and agrees that during the Term and for
a period of twelve 

7 

(12) months following the termination, will keep in confidence
the Confidential Information and shall not, unless disclosure is reasonably
necessary in the carrying out the duties and responsibilities within in the best
interests of the Company contemplated herein or otherwise required by securities
law, disclose, use or otherwise disseminate the Confidential Information,
directly or indirectly, to any third party without prior written consent of the
Company in each instance. 

5.2          Exceptions. The general prohibition contained in
Section 5.1 against the unauthorized disclosure, use or dissemination of the
Confidential Information shall not apply in respect of any Confidential
Information that:

	 	(a) 	
      is available to the public generally in the form
      disclosed;

	 	 	 
	 	(b) 	
      becomes part of the public domain through no fault of
      LECI;

	 	 	 
	 	(c) 	
      was in the lawful possession of Consultant prior to
      commencing as a consultant for the Company; or

	 	 	 
	 	(d) 	
      is compelled by applicable law to be disclosed, provided
      that LECI gives the Company prompt written notice of such requirement
      prior to such disclosure and provides assistance in obtaining an order
      protecting the Confidential Information from public
  disclosure.

5.3          Conflict of Interest. Consultant shall not undertake
any work for third parties which would materially interfere with Consultant’s
obligations under this Agreement during the Term of this Agreement, provided,
however:

	 	(a) 	
      this shall not preclude LECI or Larsen from maintaining
      independent directorship in a third party company, where such company is
      not in conflict of interest with the Company, provided that LECI or Larsen
      shall disclose such directorship to the Company. It shall be a conflict of
      interest for LECI or Larsen to assume a directorship or a management role
      in any other project located in Bulgaria or in any coal bed methane plays
      in Europe; and

	 	 	 
	 	(b) 	
      it is hereby acknowledged that Larsen is and continues to
      serve as Managing Director of Casterly Energy Limited, formerly known as
      Moroccoil Ventures Limited and that it shall not be a conflict of interest
      for him to continue in such role, provided, Larsen undertakes to keep the
      Company informed of the activities of Casterly Energy to avoid any
      conflicts of interest. Currently, Casterly Energy is dormant and has no
      activities. Larsen will ensure that his involvement in Casterly Energy
      will not materially impair his ability to fulfill his obligations to Park
      Place during the term of this Agreement.

5.4          Non-Competition. During the term of this Agreement,
neither LECI nor Larsen shall accept any executive officer or key management
position with anyother companies, provided, LECI shall be permitted to accept
consulting engagements so long as such engagements do not conflict with the
Company or its activities or with the performance of LECI or Larsen under this
Agreement. LECI shall not provide any services of a similar nature or occupy any
senior executive position for any third parties who are or may be in competition
with the Company within a period of three (3) months after any termination of
this Agreement (or subsequent agreements or extensions between Consultant and
Company). 

8 

ARTICLE VI 
DEVOTION TO CONTRACT 

6.1          Devotion to Contract. Immediately following
completion of the Phase I Capital Raise, Larsen shall devote sufficient time,
attention, and ability to the business of the Company, and to any associated and
subsidiary company, as is reasonably necessary for the proper performance of the
Services pursuant to this Agreement. During the term of this Agreement,
Consultant shall: 

	 	(a) 	
      at all times perform the Services faithfully, diligently,
      to the best of its abilities and in the best interests of the
    Company;

	 	 	 
	 	(b) 	
      devote such of its time, labour and attention to the
      business of the Company as is necessary for the proper performance of the
      Services hereunder; and

	 	 	 
	 	(c) 	
      refrain from acting in any manner contrary to the best
      interests of the Company or contrary to the duties of LECI as contemplated
      herein.

6.2          Other Activities. LECI shall be precluded from
acting in a function similar to that contemplated under this Agreement for any
other person, firm or company unless expressly consented to by the Company.

ARTICLE VII 
MISCELLANEOUS 

7.1          Notices. All notices required or allowed to be given
under this Agreement shall be made either personally by delivery to or by
facsimile transmission to the address provided on the first page of this
Agreement, or to such other address as may be designated from time to time by
such party in writing. 

7.2          Change of Address. Any party may, from time to time,
change its address for service hereunder by written notice to the other party in
the manner aforesaid. 

7.3          Entire Agreement. As of from the date hereof, any
and all previous agreements, written or oral between the parties hereto or on
their behalf relating to the appointment of LECI by the Company are null and
void. The parties hereto agree that they have expressed herein their entire
understanding and agreement concerning the subject matter of this Agreement and
it is expressly agreed that no implied covenant, condition, term or reservation
or prior representation or warranty shall be read into this Agreement relating
to or concerning the subject matter hereof or any matter or operation provided
for herein. 

7.4          Further Assurances. Each party hereto will promptly
and duly execute and deliver to the other party such further documents and
assurances and take such further action as such other party may from time to
time reasonably request in order to more effectively carry out the intent and
purpose of this Agreement and to establish and protect the rights and remedies
created or intended to be created hereby. 

7.5          Waiver. No provision hereof shall be deemed waived
and no breach excused, unless such waiver or consent excusing the breach is made
in writing and signed by the party to be charged with such waiver or consent. A
waiver by a party of any provision of this Agreement shall not be construed as a
waiver of a further breach of the same provision. 

9 

7.6          Amendments in Writing. No amendment, modification or
rescission of this Agreement shall be effective unless set forth in writing and
signed by the parties hereto. 

7.7          Assignment. Except as herein expressly provided, the
respective rights and obligations of LECI and the Company under this Agreement
shall not be assignable by either party without the written consent of the other
party and shall, subject to the foregoing, enure to the benefit of and be
binding upon LECI and the Company and their permitted successors or assigns.
Nothing herein expressed or implied is intended to confer on any person other
than the parties hereto any rights, remedies, obligations or liabilities under
or by reason of this Agreement. 

7.8          Severability. In the event that any provision
contained in this Agreement shall be declared invalid, illegal or unenforceable
by a court or other lawful authority of competent jurisdiction, such provision
shall be deemed not to affect or impair the validity or enforceability of any
other provision of this Agreement, which shall continue to have full force and
effect. 

7.9          Headings. The headings in this Agreement are
inserted for convenience of reference only and shall not affect the construction
or interpretation of this Agreement. 

7.10         Enurement. This Agreement is intended to bind and
enure to the benefit of the Company, its successors and assigns, and LECI and
the personal legal representatives of LECI. 

7.11         Counterparts. This Agreement may be executed in
several counterparts, each of which will be deemed to be an original and all of
which will together constitute one and the same instrument. 

7.12         Currency. Unless otherwise provided, all dollar
amounts referred to in this Agreement are in lawful money of the United States
of America. 

7.13         Electronic Means. Delivery of an executed copy of
this Agreement by electronic facsimile transmission or other means of electronic
communication capable of producing a printed copy will be deemed to be execution
and delivery of this Agreement as of the effective date of this Agreement. 

7.14         Proper Law. This Agreement will be governed by and
construed in accordance with the law of the State of Nevada. The Parties hereby
agree to submit to the jurisdiction of the Courts in the State of Nevada.

10 

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

PARK PLACE ENERGY CORP. 

Per: /s/ Taisiia
Popova                       
 
Name: Taisiia Popova 
Position: Chief Financial Officer

LARSEN ENERGY CONSULTING, INC. 

Per: /s/ Scott C.
Larsen                        
 
Name: Scott C. Larsen 
Position: President 

/s/ Scott C.
Larsen                                
 
SCOTT C. LARSEN 

11

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