Document:

Unassociated Document

    EXHIBIT
      10.3

    

    SUPPLEMENTAL
      AGREEMENT

    

    

    This
      Supplemental Agreement (“Supplemental Agreement”) is dated and effective as of
      June 21, 2006 and is between TARH E&P Holdings, L.P. (“TARH”) and Foothills
      Texas, Inc. (“Foothills”). TARH and Foothills may hereinafter be referred to as
“Party” or collectively as “Parties.” 

    

    This
      Supplemental Agreement relates to (i) that certain Purchase and Sale Agreement
      dated as of June 21, 2006 relating to Foothills’ purchase of all of TARH’s
      right, title and interest in and to certain crude oil and natural gas
      properties, and associated assets, located in Goose Creek Field and East Goose
      Creek Field, Harris County, Texas (the “Harris County Assets”), which agreement
      shall hereinafter be referred to as the “Harris County Agreement”; and (ii) that
      certain Purchase and Sale Agreement dated as of June 21, 2006 relating to
      Foothills’ purchase of all of TARH’s right, title and interest in and to certain
      crude oil and natural gas properties, and associated assets, located in
      Cleveland Field, Liberty County, Texas and in Saratoga Field, Hardin County,
      Texas, (the “Cleveland and Saratoga Assets”), which agreement shall hereinafter
      be referred to as the “Cleveland and Saratoga Agreement.” 

    

    The
      Harris County Assets and the Cleveland and Saratoga Assets are sometimes
      hereinafter collectively referred to as the “Assets.” The Harris County
      Agreement and the Cleveland and Saratoga Agreement are sometimes hereinafter
      collectively referred to as the “Purchase Agreements.” 

    

    Terms
      not
      otherwise defined herein shall have the meanings set forth in the Purchase
      Agreements.

    

    In
      consideration of the mutual covenants and agreements contained herein and in
      the
      Purchase Agreements, the Parties hereby agree as follows:

    

    
      	 	
              1.

            	
              The
                transactions contemplated by each of the Purchase Agreements shall
                close
                simultaneously and it shall be a condition to closing under each
                Purchase
                Agreement that the Closing contemplated by such Purchase Agreement
                shall
                not occur unless it occurs simultaneously with the transaction
                contemplated by the other Purchase Agreement.

            

    

    

    
      	 	
              2.

            	
              Any
                occurrence of a default under the terms of Article 17 of either Purchase
                Agreement shall constitute an event of default under Article 17 of
                both
                Purchase Agreements and shall entitle the non-defaulting Party to
                the
                remedies set forth in Article 17 of both Purchase Agreements.
                

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              3.

            	
              For
                purposes of Article 8 of each Purchase Agreement, the Aggregate Title
                Defect Value shall be determined by including all Title Defects relating
                to both the Harris County Assets and the Cleveland and Saratoga Assets,
                subject to exclusion of all Minimal Title Defects relating to any
                of the
                Assets. For purposes of Article 8 of each Purchase Agreement, the
                determination whether or not the Aggregate Title Defect Value exceeds
                5%
                of the Purchase Price shall be determined by reference to the combined
                Purchase Price for the Assets under the terms of both Purchase
                Agreements.

            

    

    

    
      	 	
              4.

            	
              For
                purposes of Article 10 of each Purchase Agreement, the Aggregate
                Environmental Defect Value shall be determined by including all
                Environmental Defects relating to both the Harris County Assets and
                the
                Cleveland and Saratoga Assets, subject to the exclusion of all Minimal
                Environmental Defects relating to any of the Assets. For purposes
                of
                Article 10 of each Purchase Agreement, the determination whether
                or not
                the Aggregate Environmental Defect Value exceeds 5% of the Purchase
                Price
                shall be determined by reference to the combined Purchase Price for
                the
                Assets under the terms of both Purchase Agreements.
                

            

    

    

    
      	 	
              5.

            	
              For
                purposes of Article 16 of each Purchase Agreement, the determination
                of
                whether or not any Casualty Loss, as defined in the Purchase Agreements,
                exceeds 5% of the Purchase Price shall be determined by reference
                to the
                combined Purchase Price paid for the Assets under the terms of both
                Purchase Agreements. 

            

    

    

    
      	 	
              6.

            	
              For
                purposes of Article 3.3 of each Purchase Agreement, any adjustments
                to the
                Purchase Price shall be made to the stock portion of the combined
                Purchase
                Price paid for the Assets under the terms of both Purchase Agreements,
                and
                no adjustments shall be made to the cash portion of the combined
                Purchase
                Price paid for the Assets under the terms of both Purchase
                Agreements.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Parties have executed this Supplemental Agreement as of
      the
      date first written above, but effective the Effective Time.

    

     

    TARH
      E&P Holdings, L.P.

    

    

    By:
      /s/
      Troy Gieselman_______________

    Troy
      Gieselman

    Secretary

    

    

    

    

    FOOTHILLS
      TEXAS, INC.

    

    

    By:
      /s/
      Dennis B. Tower_______________

    Dennis
      B.
      Tower

    Chief
      Executive Officer

     

    

    
      
         

      

        3Exhibit
      10.1

    

    THIS
      SUBLEASE AGREEMENT
      (the
      "Sublease") is made this 17th
      day of
      May, 2006 by and between WINSONIC DIGITAL MEDIA GROUP AND ROGERS TELECOM
      INC.

    

    SUBLEASE
      AGREEMENT

    

    B
      E T W E E N:

    

    ROGERS
      TELECOM INC.

    ("Sublandlord")

    OF
      THE
      FIRST PART;

    -
      and
      -

    

    WINSONIC
      DIGITAL MEDIA GROUP

    ("Subtenant")

    OF
      THE
      SECOND PART;

    

    

    

    WHEREAS
      by
      lease
      dated the 1st
      day of
May,
      1997
      (the "Lease"), BANK BUILDING LIMITED PARTNERSHIP ("Landlord"), as Landlord,
      leased to MIDCOM COMMUNICATIONS, INC. ("Midcom"), as tenant, certain premises
      (the "Premises") located on the 16th
      floor of
      the lands municipally known as 55 Marietta Street, Atlanta, Georgia, 30303
      (the
      "Building");

    

    AND
      WHEREAS
      the
      Sublandlord is a successor in interest to Midcom;

    

    AND
      WHEREAS the
      Sublandlord and the Landlord are the current parties to the Lease;

    

    AND
      WHEREAS
      the
      Landlord has given its consent in writing to the Sublease Agreement in
      accordance with the terms and provisions of the Lease.

    

    AND
      WHEREAS the Sublandlord
      and Subtenant desire to enter into this Sublease, pursuant to the terms and
      conditions herein, whereby Subtenant will lease from Sublandlord and Sublandlord
      will lease to Subtenant the Premises,

    

    NOW
      THEREFORE,
      for and
      in consideration of Ten and No/100 ($10.00) Dollars and the mutual covenants
      and
      obligations set forth in this Sublease, Sublandlord and Subtenant do hereby
      agree as follows:

    

    1. Subleased
      Premises. 
      Sublandlord does hereby lease and rent to Subtenant, and Subtenant hereby leases
      and rents from Sublandlord, the Premises consisting of 5,927 rentable square
      feet as shown outlined on the floor plan attached hereto as Exhibit "A" and
      incorporated herein by this reference (the "Subleased Premises"). Subtenant
      agrees
      to
      accept the Subleased Premises in an "as is" condition, and agrees
      that Sublandlord has no obligation to make any improvements whatsoever with
      regard to the Subleased Premises.

    

    2. Term.
      The term
      of this Sublease (the "Sublease Term") shall begin on the 1st day of June,
      2006
      (the "Commencement Date") and shall expire at 11:59 PM on the 29th day of April,
      2007, which date is the day immediately preceding the date the Lease expires
      pursuant to its terms, unless sooner terminated as provided in the
      Lease.

    

    3. Rent.
      Subtenant shall pay to Sublandlord, without any deduction, abatement or set-off
      whatsoever, rent of Seventeen 00/l00 Dollars ($17.00) per rentable square foot
      of the Subleased Premises, which rent shall be One Hundred Thousand Seven
      Hundred and Fifty-Nine Dollars ($100,759.00) per annum (the "Base Rent"), and
      will not escalate throughout the term of the Lease. The Base Rent shall be
      paid
      by Subtenant in advance in monthly installments of Eight Thousand Three Hundred
      and Ninety-Six 58/100 Dollars ($8,396.58) each agree due payable on or before
      the first day of each month during the Sublease Term. In
      addition to the Base Rent, the Subtenant shall pay to the Sublandlord calculated
      in the manner and at the times and subject to the adjustments provided in the
      Lease, such share of the operating expenses, utilities, taxes and all other
      costs and expenses that relate to the Subleased Premises as required to be
      paid
      by the Sublandlord to the Landlord pursuant to the Lease ("Additional
      Rent").

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4. Security
      Deposit/Advance Rent.
      Advance
      rent equal to $8,396.58 will be required upon execution of the Lease and will
      be
      applied to the first month’s Base Rent. A security deposit of $8,396.58 (the
      "Deposit") shall be paid on or before the Commencement Date and will be held
      over the term of this Sublease and returned without interest after fulfillment
      of Subtenant’s covenants and obligations under this Sublease.
      If at
      any time during the Term, any of the Base Rent or Additional Rent herein
      reserved shall be overdue and unpaid or in the event of a failure of the
      Subtenant to keep and perform any of the terms, covenants and conditions of
      this
      Sublease, then the Sublandlord may, at its option, appropriate and apply any
      portion of the Deposit to the payment of any such overdue Base Rent or
      Additional Rent or any other sum on account of loss or damage suffered by it.
      Should the entire Deposit or any part thereof be appropriated and applied by
      the
      Sublandlord for the payment of any sum due and payable to the Sublandlord by
      the
      Subtenant hereunder, then the Subtenant shall upon the written demand of the
      Sublandlord forthwith remit to the Sublandlord a sufficient amount in cash
      to
      restore the Deposit to the original sum deposited and the Subtenant's failure
      to
      do so within five (5) days after receipt of such demand shall constitute a
      breach of this Sublease.

    

    5. Late
      Charges.  If
      payment of any Base Rent or Additional Rent shall not have been paid by the
      day
      after the date on which such amount was due and payable hereunder, a late charge
      of $0.10 per $1.00 due shall be added to the sum due and shall be deemed
      Additional Rent hereunder. If Subtenant shall issue a check to Sublandlord
      which
      is returned unpaid for any reason, Subtenant shall pay to Sublandlord an
      additional charge of $125.00 for Sublandlord's expenses in connection therewith.
      No acceptance of late charges by Sublandlord shall be deemed to extend or change
      the time for payment of Base Rent or Additional Rent.

    

    6. Interest.
      If
      any
      sums of money or charges required to be paid by Subtenant under this Sublease,
      including but not limited to Base Rent and Additional Rent payable by Subtenant
      hereunder, are not paid at the time provided in the Sublease, they shall
      nevertheless, if not paid when due, bear interest from the due date thereof
      to
      the date of payment at fifteen (15%) percent per annum
      in
      addition to the late chargees set out in Section 5 of this
      Sublease.

    

    7. Relationship
      to Lease.
      The
      Sublease and all of the subtenant’s rights hereunder are expressly subject to
      and subordinate to all of the terms of the Lease. Subtenant hereby acknowledges
      that it has received copies of the Lease and has read all of the terms and
      conditions thereof. Except for payment of the rental under the Lease, Subtenant
      hereby covenants to assume all obligations, duties and liabilities of
      Sublandlord, as Tenant under the Lease, with respect to the Subleased Premises
      and agrees to be bound by all of the terms of the Lease as fully to the same
      extent as if Subtenant were the Tenant under the Lease. Subtenant hereby
      acknowledges that Subtenant shall look solely to the Sublandlord for the
      performance of all of the Landlord's obligations under the Lease and that
      Landlord shall not be obligated to provide any services to Subtenant or
      otherwise perform any obligations in connection with this Sublease. Sublandlord
      agrees that Sublandlord shall, when necessary and when requested by Subtenant,
      endeavor to cause Landlord to perform its obligations under the Lease. Subtenant
      acknowledges that any termination of the Lease will result in termination of
      the
      Sublease.

    

    8. Performance
      of Sublandlord. It
      is
      expressly agreed by the parties hereto that Sublandlord shall have no
      obligations under this Sublease other than to pay Base Rent and Additional
      Rent
      required to be paid under the Lease provided, however, that Sublandlord shall
      have no obligation to Subtenant to make such payments in the event Subtenant
      is
      in default hereunder. Without limiting the generality of the foregoing,
      Subtenant acknowledges that Sublandord shall not be required to furnish, supply
      or install any services or utilities of any kind whatsoever under any provisions
      of the Lease, and Sublandlord shall not be obligated to make any repairs or
      restorations of any kind whatsoever in the Subleased Premises. Subtenant shall
      not have any rights in respect of the Subleased Premises greater than
      Sublandlord's rights under the Lease, and, notwithstanding any provision to
      the
      contrary, as to obligations contained in this Sublease by the incorporation
      by
      reference of the provisions of the Lease, Sublandlord shall not be required
      to
      make any payment or perform any obligation, and, except as may be otherwise
      expressly set forth above, Sublandlord shall have no liability to Subtenant
      for
      any matter whatsoever. Sublandlord shall not be responsible for any failure
      or
      interruption, for any reason whatsoever, of the services or facilities (if
      any)
      that may be appurtenant to or supplied at the Building of which the Subleased
      Premises are a part by the Landlord under the Lease or otherwise, including,
      without limitation, heat, ventilation, air-conditioning, electricity, water,
      elevator service and cleaning service, if any; and no failure to furnish, or
      interruption of, any such services or facilities shall give rise to any (a)
      abatement, diminution or reduction of Subtenant's obligations under this
      Sublease, (b) constructive eviction, whether in whole or in part, or (c)
      liability on the part of Sublandlord. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    9. Subtenant's
      General Covenants.
      The
      Subtenant covenants with the Sublandlord:

    

    
      	 	
              (a)

            	
              to
                pay rent in accordance with the terms of this
                Sublease;

            

    

    
      	
            	(b)	
              to
                keep the Subleased Premises clean and in good and rentable
                condition;

            

    

    
      	 	
              (c)

            	
              to
                repair the Subleased Premises reasonable wear and tear and damage
                by fire,
                lightning and tempest only
                excepted;

            

    

    
      	
            	(d)	
              to
                observe and perform all covenants and obligations of the Subtenant
                under
                this Sublease;

            

    

    
      	 	
              (e)

            	
              not
                to do or omit to do any act or thing upon the Subleased Premises
                which
                would cause a breach of any of the Sublandlord's obligations under
                the
                Lease; and

            

    

    
      	 	
              (f)

            	
              to
                perform or cause to be performed with respect to the Subleased Premises
                all of the covenants of the Sublandlord as Tenant under the Lease,
                including the performance of tenants' repairs therein but except
                as to
                rent and other monetary obligations of the Sublandlord as Tenant
                under the
                Lease.

            

    

    

    10. Environmental.
      The
      Subtenant shall be solely responsible for any contaminant, pollutant or toxic
      substance at any time affecting the premises resulting from any act or omission
      of the Subtenant or any other person on the premises or any activity or
      substance on the Subleased
      Premises
      during the term, and any period prior to the term during which the Subleased
      Premises
      were used or occupied by or under control of the Subtenant, and shall be solely
      responsible for the clean-up and removal of any of the same and any damages
      caused by the occurrence, clean up or removal thereof same, and the Subtenant
      shall indemnify the Sublandlord in respect to same. 

    

    11. No
      Privity of Estate. Nothing
      contained in this Sublease shall be construed to create privity of estate or
      of
      contract between Subtenant and the Landlord under the Lease.

    

    12. Use.
      Subtenant’s use of the Subleased Premises shall be strictly in accordance with
      the use provisions of the Lease.

    

    13. Default.
      Any act
      of omission by Subtenant that would constitute a default under the Lease shall
      be deemed a default by Sublandlord under this Sublease provided notice of any
      default by Subtenant under Lease is first provided by Landlord to Sublandlord.
      In addition, any failure by Tenant or Subtenant to perform any other obligations
      required under this Sublease, shall be deemed a default hereunder. Upon the
      occurrence of any such default hereunder, Sublandlord shall have all the rights
      and remedies against Subtenant as are provided by the Lease to Landlord against
      Sublandlord.

    

    14. Insurance
      and Indemnities.
      Subtenant hereby agrees to indemnify and hold Sublandlord and Landlord harmless,
      with regard to its leasing and use of the Subleased Premises, to the same extent
      that Sublandlord, as Tenant, is required to indemnify and hold Landlord harmless
      with respect to the Premises. Likewise, Subtenant hereby agrees to obtain and
      provide evidence satisfactory to Sublandlord, on or before the date of this
      Sublease, that Subtenant is carrying insurance in the same amounts and of the
      same types required to be carried by Sublandlord under the Lease with regard
      to
      the Premises.

    

    15. Subleasing
      and Assignment. Subtenant
      shall have no further right to Sublease or assign its rights under this Sublease
      or its rights with regard to the Subleased Premises.

    

    16. Condition
      of Subleased Premises.
      Upon the
      expiration of this Sublease, Subtenant shall return the Subleased Premises
      to
      Sublandlord in the condition required by the Lease, normal wear and tear damage
      by casualty or condemnation excepted.

    

    17. Right
      to Renew.
      There is
      no option or right to renew or extend the term of this Sublease.

    

    18. Waiver
      of Jury Trial and Right to Counterclaim. Sublandlord
      and Subtenant hereby waive all right to trial by jury in any summary or other
      action, proceeding or counterclaim arising out of or in any way connected with
      this Sublease, the relationship of Sublandlord and Subtenant, the Subleased
      Premises and the use and occupancy thereof, and any claim of injury or damages.
      Subtenant also hereby waives all right to assert or interpose any nonmandatory
      counterclaim(s) in any summary proceeding or other action or proceeding to
      recover or obtain possession of the Subleased Premises.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    19. Notices.
      Notices
      by Landlord, Sublandlord and Subtenant shall be given to each other at the
      following addresses in the same manner provided by the Lease:

    

    
      	
            	Sublandlord:	
              Rogers
                Telecom Inc.
                
                One
                  Mount Pleasant Road

                2nd
                  Floor

                Toronto,
                  Ontario M4Y 2Y5

                Attention:
                  Manager, Real Estate

              

            

    

    

    

    

    
      	
            	Subtenant:	
              Winsonic
                Digital Media Group
                
                101
                  Marietta Street, Suite 2600

                Atlanta,
                  Georgia 30303

                Attention:
                  Winston D. Johnson

              

            

    

    
 

    
      	
            	Landlord:	
              Bank
                Building Limited Partnership
                
                c/o
                  Ultima Holdings Ltd.

                2255
                  Cumberland Parkway, Building 700

                Atlanta,
                  GA 30339

              

            

    

    

    

    

    20.
       Successors
      and Assigns. Except
      as
      otherwise provided herein, all of the rights and obligations of a party hereto
      enure to the benefit of and are binding upon the successors and assigns of
      that
      party.

    

    21. Miscellaneous.
      This
      Sublease shall be governed by the laws of the State of Georgia. Time shall
      be of
      the essence with regard to the obligations under this Sublease. This Sublease
      supersedes all prior discussions and agreements between the parties and
      incorporates their entire agreement. Any term used in this Sublease which begins
      with the same initial capital letters and is not defined herein shall have
      the
      same meaning attributable to that term in the Lease. If
      any
      term of this Sublease is inconsistent with any term of the Lease, the terms
      of
      this Sublease shall prevail.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have hereunto set their hands and seals, this day and year first above
      written.

    

      
        	 	
                SUBLANDLORD:

              
	 	 
	 	
                ROGERS
                  TELECOM INC.

              
	 	 
	 	 
	 	
                By:/s/
                  Guy Knowles - VP Real
                  Estate                       

              
	 	 
	 	 
	 	
                By:/s/
                  Joe Catalano - VP
                  Operations                         
                  

              
	 	 
	 	 
	 	
                Date:
                  May
                  30,
                  2006                                                       
                  

              
	 	 
	 	 
	 	 
	 	 
	 	
                SUBTENANT:

              
	 	 
	
                Signed,
                  sealed and delivered

              	
                WINSONIC
                  DIGITAL MEDIA GROUP, LTD

              
	
                in
                  the presence of:

              	 
	
                 

              	 
	
                Felicia
                  Ruffin                                                  
                  

              	
                By:
                  /s/
                  Winston D.
                  Johnson                                      

              
	
                Witness

              	
                Title:
                  Chariman/CEO

              
	 	 
	
                /s/
                  Felicia
                  Ruffin                                            
                  

              	
                Date:
                  May
                  17,
                  2006                                                      
                  

              
	
                Notary
                  Public

              	 
	
                Commission
                  data:

              	 
	
                [NOTARIAL
                  SEAL]

              	
                [CORPORATE
                  SEAL]

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