Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.2

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement effective December 3, 2007, is between Allis-Chalmers
Energy Inc. and Theodore F. Pound III. Certain capitalized terms used herein are defined in
Section 1 below.

R E C I T A L S:

A. Executive is employed by the Company pursuant to an Employment Agreement (“2004 Employment
Agreement”) dated October 1, 2004 which terminated October 1, 2007;

B. Company wishes to employ Executive, and Executive desires to accept employment with
Company, by entering into a written agreement to specify the terms and conditions of Executive’s
continued employment with Company;

C. Executive is employed as General Counsel and Secretary and is an integral member of its
management team and Company considers the maintenance of a sound management team, including
Executive, essential to protecting and enhancing its best interests and those of its stockholders;

D. Company recognizes that the possibility of a change in control of Company may result in the
departure or distraction of management to the detriment of Company and its stockholders; and

E. Company has determined that appropriate steps should be taken to obtain and retain the
continued attention and dedication of selected members of Company’s management team to their
assigned duties without the distraction arising from the possibility of a change in control of
Company.

NOW, THEREFORE, in consideration of Executive’s past and future employment with Company and
other good and valuable consideration, the parties agree as follows:

Section 1. Definitions. As used in this Agreement, the following terms will have the
following meanings:

(a) Agreement refers to the Executive Employment Agreement represented by this
document.

(b) Cause has the meaning ascribed to it in Section 7(a)(ii).

(c) Change In Control means:

(i) The acquisition after the date hereof by any individual, entity or group,
or a Person (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
other than an Excluded Person, of ownership of more than 50% of either: (i) the then outstanding shares of Common Stock (“Outstanding Common
Stock”); or (ii) the combined voting power of the then outstanding voting securities
of the Company entitled to vote generally in the election of directors (“Outstanding
Voting Securities”);

Schedule A

 

 

 

(ii) Individuals who, as of the date hereof, constitute the Board of Directors
of the Company (“Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, as a member of the
Incumbent Board, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest (as such terms are used in
Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange Act of 1934)
or other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board;

(iii) Approval by the stockholders of the Company of a reorganization, merger
or consolidation, in each case, unless, following such reorganization, merger or
consolidation, (i) more than 50% of, respectively, the then outstanding shares of
common stock of the corporation resulting from such reorganization, merger or
consolidation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Common Stock and Outstanding Voting Securities
immediately prior to such reorganization, merger or consolidation, in substantially
the same proportions as their ownership, immediately prior to such reorganization,
merger or consolidation of the Outstanding Common Stock and Outstanding Voting
Securities, as the case may be, or at least a majority of the members of the board
of directors of the corporation resulting from such reorganization, merger or
consolidation were members of the Incumbent Board at the time of the execution of
the initial agreement providing for such reorganization, merger or consolidation; or

(iv) Approval by the stockholders of the Company of (i) a complete liquidation
or dissolution of the Company or (ii) the sale or other disposition of all or
substantially all of the assets of the Company, other than to a corporation, with
respect to which following such sale or other disposition, (1) more than 50% of,
respectively, the then outstanding shares of common stock of such corporation and
the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election for directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the

 

 

 

Outstanding Common Stock and Outstanding Voting Securities immediately prior to
such sale or other disposition in substantially the same proportion as their
ownership, immediately prior to such sale or other disposition, of the Outstanding
Common Stock and Outstanding Voting Securities, as the case may be; or (2) at least
a majority of the members of the board of directors of such corporation were members
of the Incumbent Board at the time of the execution of the initial agreement or
action of the Board providing for such sale or other disposition of assets of the
Company.

(d) Code means the Internal Revenue Code of 1986, as amended.

(e) Commencement Date has the meaning ascribed to it in Section 4.

(f) Company means Allis-Chalmers Energy Inc.

(g) Confidential Information has the meaning ascribed to it in Section 9(b).

(h) Constructively Terminated with respect to an Executive’s employment with Company
will be deemed to have occurred if Executive terminates his employment within six months
following the date on which Company:

(i) demotes Executive to a lesser position, either in title or responsibility,
than the highest position held by Executive with Company at any time during
Executive’s employment with Company after the date hereof unless the Company
reverses such demotion within 30 days after receiving written notice of such
demotion from Executive;

(ii) decreases Executive’s salary below the highest level in effect at any time
during Executive’s employment with Company or reduces Executive’s benefits and
perquisites below the highest levels in effect at any time during Executive’s
employment with Company (other than as a result of any amendment or termination of
any Executive or group or other executive benefit plan, which amendment or
termination is applicable to all executives of Company or any reduction in benefits
that Company cures within 30 days after receiving written notice of such reduction
from Executive);

(iii) requires Executive to relocate to a principal place of business more than
50 miles from the principal place of business occupied by Company on the date
hereof, unless the Company reverses such relocation within 30 days after receiving
written notice of Executive’s intention to terminate his employment in reliance on
this Section;

(iv) is subject to a Change In Control, unless Executive accepts employment
with a successor to Company; or

(v) breaches any other material term of this Agreement which is not cured by
Company within 30 days after receiving notice of such breach from Executive.

 

 

 

(i) Designated Industry has the meaning ascribed to it in Section 10(a)(i)(1).

(j) Determination has the meaning ascribed to such term in Section 1313(a) of the Code.

(k) Disability with respect to Executive shall be deemed to exist if he meets the
definition of disability under the terms of the Company’s current long-term disability
policy (or any replacement long-term disability policy). Any refusal by Executive to submit
to a reasonable medical examination to determine whether Executive is so disabled shall be
deemed conclusively to constitute evidence of Executive’s disability.

(l) Executive refers to Theodore F. Pound III.

(m) Excluded Person means any Person who beneficially owns more than 10% of the
outstanding shares of the Company’s Common Stock at any time prior to the date hereof.

(n) Company refers collectively to the Company and its subsidiaries and other
affiliates.

(o) Incentive Plan means the Allis-Chalmers Energy Inc. 2006 Incentive Plan, as amended
from time to time.

(p) Inventions has the meaning ascribed to it in Section 8(a).

(q) Salary has the meaning ascribed to it in Section 5(a).

(r) Separation Payment Period has the meaning ascribed to it in Section 7(b)(ii).

(s) Separation Payments has the meaning ascribed to it in Section 7(b)(ii).

Section 2. Employment. Company hereby employs Executive, and Executive hereby accepts
employment by Company, upon the terms and subject to the conditions hereinafter set forth.

Section 3. Duties. Executive shall be employed as the General Counsel and Secretary of the
Company. Executive agrees to devote substantially all of his business time as is necessary to
perform his duties attendant to his executive position with Company. Executive shall be allowed to
engage in other activities as an investor as well as participate in activities of charitable
organizations of his choice so long as they do not materially interfere with his duties for
Company.

Section 4. Term. The term of employment of Executive hereunder shall commence on the date of
this Agreement and terminate three years hence.

Section 5. Compensation and Benefits. In consideration for the services of Executive
hereunder, Company shall compensate Executive as follows (except as set forth herein, Executive acknowledges payment in full of all amounts due to him for services rendered prior
to the date hereof):

 

 

 

(a) Salary. Company shall pay Executive, semi-monthly in arrears with its normal
payroll procedures, a salary which is equivalent to an annual rate of $250,000 (the
“Salary”). The Salary may not be decreased at any time during the term of Executive’s
employment hereunder and shall be reviewed no less than annually by Company. Any increase
in the Salary shall be in the sole discretion of the Compensation Committee of the Board of
Directors of the Company.

(b) Management Incentive Bonus. Executive shall be entitled to receive a cash bonus
equal to 50% of his Salary on an annual basis. Such bonus shall be paid annually within 30
days after the completion of the Company’s audited financial statements for each year.
Executive shall also be eligible to receive from Company such additional annual management
incentive bonuses as may be provided in management incentive bonus plans adopted from time
to time by Company.

(c) Restricted Stock Awards. The Compensation Committee and Board of Directors has
approved and awarded Executive restricted stock in the amount of 15,000 shares of Common
Stock. The restricted stock will vest in accordance with the terms of the Restricted Stock
Agreement and certain performance objectives as described therein.

(d) Vacation. Executive shall be entitled to four (4) weeks paid vacation per year.
Unless otherwise approved by the Compensation Committee of the Board of Directors of the
Company, a maximum of ten days accrued vacation not taken in any calendar year shall be
carried forward and may be used in the next subsequent calendar year. Executive shall
schedule his paid vacation to be taken at times which are reasonably and mutually convenient
to both Company and Executive.

(e) Insurance Benefits. Company shall provide accident, health, dental, disability and
life insurance for Executive under the group accident, health, dental, disability and life
insurance plans as may be maintained by Company for its full-time, salaried Executives from
time to time.

(f) Office Space and Expenses. Company shall provide and pay the expenses of
maintaining an office for Executive during the term of this Agreement.

(g) Assistant Expenses. Company shall assume and pay all salary and benefits of an
Assistant to Executive.

(h) Car Allowance. The Executive will be paid a $1,000 per month car allowance during
the term of this Agreement.

Section 6. Expenses. The parties anticipate that in connection with the services to be
performed by Executive pursuant to the terms of this Agreement, Executive will be required to make
payments for travel, entertainment of business associates and similar expenses. Company shall
reimburse Executive for all reasonable expenses of types authorized by Company and incurred by
Executive in the performance of his duties hereunder, consistent with past practices.

 

 

 

Executive shall comply with such reporting requirements with respect to expenses as Company
may establish from time to time.

Section 7. Termination.

(a) General. Executive’s employment hereunder shall commence on the Commencement Date
and continue until the end of the term specified in Section 4, except that the employment of
Executive hereunder shall terminate prior to such time in accordance with the following:

(i) Death or Disability. Upon the death of Executive during the term of his
employment hereunder or, at the option of Company, in the event of Executive’s
Disability, upon 30 days’ notice to Executive.

(ii) For Cause. For “Cause” immediately upon written notice by Company to
Executive. A termination shall be for Cause if:

(1) Executive commits a criminal act involving dishonesty or moral
turpitude; or

(2) Executive commits a material breach of any of the covenants, terms
and provisions hereof or fails to obey written directions delivered to
Executive by the Company’s President or Chief Executive Officer which are
not inconsistent with Executive’s rights under this Agreement.

(iii) Without Cause. Without Cause upon notice by the Board of Directors to
Executive or upon notice by Executive to the Board if Executive has been
Constructively Terminated.

(b) Severance Pay.

(i) Termination Upon Death or Disability or For Cause. Executive shall not be
entitled to any severance pay or other compensation upon termination of his
employment pursuant to Section 7(a)(i) or (ii) except for his Salary earned but
unpaid as of the date of termination, unpaid expense reimbursements under Section 6
for expenses incurred in accordance with the terms hereof prior to termination, and
compensation for accrued, unused vacation as of the date of termination.

(ii) Termination Without Cause. In the event Executive’s employment hereunder
is terminated pursuant to Section 7(a)(iii), Company shall pay Executive Separation
Payments as Executive’s sole remedy in connection with such termination.
“Separation Payments” are payments made at the semi-monthly rate of Executive’s then
current salary in effect immediately preceding the date of termination. Separation
Payments shall be made for the lesser of one year following termination of
employment or the remaining term of this Agreement (the “Separation Payment
Period”), and shall be paid by Company in equal semi-monthly payments in arrears or
in accordance with its then-current normal payroll

 

 

 

procedure, provided that Company’s obligation to make Separation Payments shall
be reduced by any amounts earned by Executive for services during the Separation
Payment Period. Company shall also pay Executive his Salary earned but unpaid as of
the date of termination, unpaid expense reimbursements under Section 6 for expenses
incurred in accordance with the terms hereof prior to termination, and compensation
for accrued, unused vacation as of the date of termination.

Section 8. Inventions; Assignment.

(a) Inventions Defined. All rights to discoveries, inventions, improvements, designs
and innovations (including all data and records pertaining thereto) that relate to the
business of Company, whether or not patentable, copyrightable or reduced to writing, that
Executive may discover, invent or originate during the term of his employment hereunder, and
for a period of six months thereafter, either alone or with others and whether or not during
working hours or by the use of the facilities of Company (“Inventions”), shall be the
exclusive property of Company. Executive shall promptly disclose all Inventions to Company,
shall execute at the request of Company any assignments or other documents Company may deem
necessary to protect or perfect its rights therein, and shall assist Company, at Company’s
expense, in obtaining, defending and enforcing Company’s rights therein. Executive hereby
appoints Company as his attorney-in-fact to execute on his behalf any assignments or other
documents deemed necessary by Company to protect or perfect its rights to any Inventions.

(b) Covenant to Assign and Cooperate. Without limiting the generality of the
foregoing, Executive hereby assigns and transfers to Company the world-wide right, title and
interest of Executive in the Inventions. Executive agrees that Company may apply for and
receive patent rights (including Letters Patent in the United States) for the Inventions in
Company’s name in such countries as may be determined solely by Company. Executive shall
communicate to Company all facts known to Executive relating to the Inventions and shall
cooperate with Company’s reasonable requests in connection with vesting title to the
Inventions and related patents exclusively in Company and in connection with obtaining,
maintaining and protecting Company’s exclusive patent rights in the Inventions.

(c) Successors and Assigns. Executive’s obligations under this Section 8 shall inure
to the benefit of Company and its successors and assigns and shall survive the expiration of
the term of this Agreement for such time as may be necessary to protect the proprietary
rights of Company in the Inventions.

Section 9. Confidential Information.

(a) Acknowledgment of Proprietary Interest. Executive acknowledges the proprietary
interest of Company in all Confidential Information. Executive agrees that all Confidential
Information learned by Executive during his employment with Company or otherwise, whether
developed by Executive alone or in conjunction with others or otherwise, is and shall remain
the exclusive property of Company. Executive further acknowledges and agrees that his disclosure of any Confidential Information will result
in irreparable injury and damage to Company.

 

 

 

(b) Confidential Information Defined. “Confidential Information” means all
confidential and proprietary information of Company, including without limitation (i)
information derived from reports, investigations, experiments, research and work in
progress, (ii) methods of operation, (iii) market data, (iv) proprietary computer programs
and codes, (v) drawings, designs, plans and proposals, (vi) marketing and sales programs,
(vii) client lists, (viii) historical financial information and financial projections, (ix)
pricing formulae and policies, (x) all other concepts, ideas, materials and information
prepared or performed for or by Company and (xi) all information related to the business,
products, purchases or sales of Company or any of its suppliers and customers, other than
information that is publicly available.

(c) Covenant Not To Divulge Confidential Information. Company is entitled to prevent
the disclosure of Confidential Information. As a portion of the consideration for the
employment of Executive and for the compensation being paid to Executive by Company,
Executive agrees at all times during the term of his employment hereunder and thereafter to
hold in strict confidence and not to disclose or allow to be disclosed to any person, firm
or corporation, other than to his professional advisors (who have the obligation to maintain
the confidentiality of such information) and to persons engaged by Company to further the
business of Company, and not to use except in the pursuit of the business of Company, the
Confidential Information, without the prior written consent of Company.

(d) Return of Materials at Termination. In the event of any termination or cessation
of his employment with Company for any reason, Executive shall promptly deliver to Company
all documents, data and other information derived from or otherwise pertaining to
Confidential Information. Executive shall not take or retain any documents or other
information, or any reproduction or excerpt thereof, containing or pertaining to any
Confidential Information.

Section 10. Noncompetition.

(a) Until termination of Executive’s employment hereunder, Executive shall not do any
of the following:

(i) engage directly or indirectly, alone or as a shareholder, partner,
director, officer, Executive of or consultant to any other business organization, in
any business activities that:

(1) relate to the oil and gas drilling services industry (the
“Designated Industry”); or

(2) were either conducted by Company prior to the termination of
Executive’s employment hereunder or proposed to be conducted by Company at
the time of such termination;

 

 

 

(ii) approach any customer or supplier of Company in an attempt to divert it to
any competitor of Company in the Designated Industry; or

(iii) solicit or encourage any employee or Executive of Company to end his
relationship with Company or commence any such relationship with any competitor of
Company.

(b) Executive’s noncompetition obligations hereunder shall not preclude Executive from
owning less than five percent of the common stock of any publicly traded corporation
conducting business activities in the Designated Industry. If at any time the provisions of
this Section 10 are determined to be invalid or unenforceable by reason of being vague or
unreasonable as to area, duration or scope of activity, this Section 10 shall be considered
divisible and shall be immediately amended to only such area, duration and scope of activity
as shall be determined to be reasonable and enforceable by the court or other body having
jurisdiction over the matter, and Executive agrees that this Section 10 as so amended shall
be valid and binding as though any invalid or unenforceable provision had not been included
herein.

Section 11. General.

(a) Notices. All notices and other communications hereunder shall be in writing or by
written telecommunication, and shall be deemed to have been duly given upon delivery if
delivered personally or via written telecommunication, or five days after mailing if mailed
by certified mail, return receipt requested or by written telecommunication, to the relevant
address set forth below, or to such other address as the recipient of such notice or
communication shall have specified to the other party in accordance with this Section 11(a):

	 	 	 	 	 
	 

	 	If to Company, to:
	 	If to Executive:
	 
	 	 	 	 
	 

	 	Allis-Chalmers Energy Inc.
	 	Theodore F. Pound III
	 

	 	5075 Westheimer, Suite 890
	 	11711 Memorial, #288 
	 

	 	Houston, Texas 77056
	 	Houston, Texas 77024 
	 

	 	Attn: Chief Executive Officer	 	 

If to Executive, to the last address for Executive appearing on the Company’s records

(b) Withholding. All payments required to be made to Executive by Company under this
Agreement shall be subject to the withholding of such amounts, if any, relating to federal,
state and local taxes as may be required by law.

(c) Equitable Remedies. Each of the parties hereto acknowledges and agrees that upon
any breach by Executive or Company of his or its obligations hereunder, Company and
Executive shall have no adequate remedy at law and accordingly shall be entitled to specific
performance and other appropriate injunctive and equitable relief.

 

 

 

(d) Severability. If any provision of this Agreement is held to be illegal, invalid
or unenforceable, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision
never comprised a part hereof, and the remaining provisions hereof shall remain in full
force and effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid or
unenforceable provision, there shall be added automatically as part of this Agreement a
provision as similar in its terms to such illegal, invalid or unenforceable provision as may
be possible and be legal, valid and enforceable.

(e) Waivers. No delay or omission by either party in exercising any right, power or
privilege hereunder shall impair such right, power or privilege, nor shall any single or
partial exercise of any such right, power or privilege preclude any further exercise thereof
or the exercise of any other right, power or privilege.

(f) Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the
same instrument.

(g) Captions. The captions in this Agreement are for convenience of reference only
and shall not limit or otherwise affect any of the terms or provisions hereof.

(h) Reference to Agreement. Use of the words “herein,” “hereof,” “hereto,” “hereunder”
and the like in this Agreement refer to this Agreement only as a whole and not to any
particular section or subsection of this Agreement, unless otherwise noted.

(i) Binding Agreement. This Agreement shall be binding upon and inure to the benefit
of the parties and shall be enforceable by the personal representatives and heirs of
Executive and the successors and assigns of Company. This Agreement may be assigned by the
Company or any Company to any Company or, subject to Section 7(b)(iii), to any successor to
all or substantially all of the Company’s business as a result of a merger, consolidation,
sale of stock or assets, or similar transaction; provided that in the event of any such
assignment, the Company shall remain liable for all of its obligations hereunder and shall
be liable for all obligations of all such assignees hereunder. If Executive dies while any
amounts would still be payable to him hereunder, such amounts shall be paid to Executive’s
estate. This Agreement is not otherwise assignable by Executive.

(j) Entire Agreement. This Agreement contains the entire understanding of the
parties, supersedes all prior agreements and understandings relating to the subject matter
hereof and may not be amended except by a written instrument hereafter signed by each of the
parties hereto.

(k) Governing Law. This Agreement and the performance hereof shall be construed and
governed in accordance with the laws of the State of Texas, without regard to its choice of
law principles.

 

 

 

(l) Gender and Number. The masculine gender shall be deemed to denote the feminine or
neuter genders, the singular to denote the plural, and the plural to denote the singular,
where the context so permits.

Section 12. Section 409A.

(a) Section 409A Compliance. Executive and Company agree that this Agreement is
intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”) and that any ambiguous provision will be construed in a manner that will
result in treatment of the relevant portions of this Agreement as a nonqualified deferred
compensation plan that complies with or is exempt from Section 409A.

(b) Specified Employees. If Executive is a “specified employee,” as such term is
defined in Section 409A and determined as described below in this Section 13(b), any
payments of amounts which are deferred compensation subject to the provisions of Section
409A that are payable as a result of Executive’s termination (other than death) shall not be
payable before the earliest of (i) the date that is six months after Executive’s
termination, (ii) the date of Executive’s death, or (iii) the earliest date that otherwise
complies with the requirements of Section 409A. This Section 13(b) shall be applied by
accumulating all payments that otherwise would have been paid within six months of
Executive’s termination and paying such accumulated amounts at the earliest date which
complies with or is exempt from the application of the requirements of Section 409A.
Executive shall be a “specified employee” for the twelve-month period beginning on April 1
of a year if Executive is a “key employee” as defined in Section 416(i) of the Internal
Revenue Code (without regard to Section 416(i)(5)) as of December 31 of the preceding year
or using such specified employee identification dates as designated by the Compensation
Committee in accordance with Section 409A and in a manner that is consistent with respect to
all of Company’s nonqualified deferred compensation plans. For purposes of determining the
identity of specified employees, the Compensation Committee may establish procedures as it
deems appropriate in accordance with Section 409A.

EXECUTED effective as of December 3, 2007.

	 	 	 	 	 
	 

	 	 	 	ALLIS-CHALMERS ENERGY INC.
	 
	 	 	 	 
	 

	 	By	 	/s/ Munawar H. Hidayatallah
	 

	 	 	 	 
	 

	 	 	 	Munawar H. Hidayatallah, Chief Executive Officer
	 
	 	 	 	 
	 

	 	 	 	EXECUTIVE
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	/s/ Theodore F. Pound III
	 

	 	 	 	 
	 

	 	 	 	Theodore F. Pound IIIex10-1.htm

Exhibit 10.1

    SETTLEMENT
      AGREEMENT AND

    MUTUAL
      RELEASE

    

    This
      Settlement Agreement and Mutual
      Release (this “Agreement” or “Mutual Release”) entered into on November __,
      2007, is by and between Texhoma Energy, Inc., a Nevada Corporation (“Texhoma,”
and unless otherwise stated, the defined term Texhoma shall include any and
      all
      subsidiaries of Texhoma, including Texaurus Energy, Inc., a Delaware
      corporation) and Frank A. Jacobs, an individual (“Jacobs”) and Jacobs Oil &
Gas Limited, a British Columbia corporation (“JOGL,” and collectively with
      Jacobs, the “Jacobs Parties”), Clover Capital, (“Clover”), Capersia Pte. Ltd., a
      Singapore company (“Capersia”), Peter Wilson, an individual (“Wilson”), and
      Sterling Grant Capital, Inc. a BC corporation (“SGC”) (collectively, Clover,
      Capersia, Wilson and SGC, the “Non- Jacobs Parties,” and with the Jacobs Parties
      (the “Interested Parties”, and individually, an “Interested Party”), each
      sometimes referred to herein as a “Party,” and collectively referred to herein
      as the “Parties.”

    

    
      	
               

            	
              1.      Representations
                and Warranties of the Interested
                Parties:

            

    

    

    
      	
              1.1

            	
              Capersia
                entered into a Sale and Purchase Agreement with Texhoma on or about
                November 4, 2004, pursuant to which Texhoma purchased a 40% interest
                in
                Black Swan Petroleum Pty. Ltd., for 56,000,000 (post forward split)
                shares
                of Texhoma common stock, of which approximately 26,000,000 shares
                have
                been transferred and/or gifted to various parties, leaving an aggregate
                of
                30,000,000 shares held in the name of Capersia as of the date of
                this
                Agreement (the “Capersia Shares”).

            
	 	 
	
              1.2

            	
              Jacobs
                was previously employed by Texhoma as a Director of Texhoma from
                approximately January 24, 2005, to June 14, 2007; as Chief Executive
                Officer of Texhoma from approximately April 12, 2006, to June 5,
                2006, and
                from approximately May 17, 2007 to June 4, 2007; as Chief Financial
                Officer from approximately May 17, 2007 to June 14, 2007; and as
                Executive
                Chairman during the period from approximately January 24, 2005 to
                June 14,
                2007 (collectively the “Employment”).

            
	 	 
	
              1.3

            	
              On
                or about March 24, 2006, Jacobs subscribed and paid cash for 7,500,000
                shares of Texhoma’s common stock for aggregate consideration of $300,000
                (the “Jacobs Shares”).

            
	 	 
	
              1.4

            	
              On
                or about October 19, 2006, during which time Jacobs served as Executive
                Chairman, Texhoma issued a Promissory Note to JOGL, an entity controlled
                by Jacobs in the amount of $493,643.77, which amount purportedly
                represented funds advanced to the Company by Jacobs and management
                fees
                owed to Jacobs (the “Jacobs Note”), a copy of which is attached hereto as
                Exhibit A.

            
	 	 
	
              1.5

            	
              On
                or around October 19, 2006, in security for the repayment of the
                Jacobs
                Note, Texhoma entered into a Security Agreement with Jacobs, attached
                hereto as Exhibit B, under which Security Agreement, Texhoma transferred
                200,000 shares of the common stock of Morgan Creek Energy Corp. to
                Jacobs
                as security for the repayment of the Jacobs Note (the “Morgan Creek
                Shares”).

            
	 	 
	
              1.6

            	
              In
                April and May 2006, Texhoma issued an aggregate of 22,375,000 shares
                of
                its common stock to Lucayan Oil and Gas Investments, Ltd., a Bahamas
                corporation (the “LOGI Shares”).

            
	 	 
	
              1.7

            	
              On
                or about June 5, 2007, Texhoma entered into an Agreement with JOGL
                (the
                “Tolling Agreement,” attached hereto as Exhibit C, pursuant to which JOGL
                agreed that no interest would be due from Texhoma and/or accrue on
                the
                principal or accrued interest to date on the Jacobs Note for a period
                of
                one (1) year from the date of the Tolling Agreement and that JOGL
                would
                not try to collect the principal and/or accrued interest on such
                Jacobs
                Note for a period of one (1) year.

            
	 	 
	
              1.8

            	
              On
                or about June 5, 2007, several of Texhoma’s largest shareholders,
                including Capersia and Jacobs, entered into a Voting Agreement, whereby
                they agreed that until June 5, 2009, neither would vote any of the
                shares
                of common stock which they held for (i.e. in favor of) the removal
                of
                William M. Simmons or Daniel Vesco, Texhoma’s Directors, or for or against
                various other shareholder approvals as described in greater detail
                on the
                Voting Agreement, attached hereto as Exhibit D (the “Voting
                Agreement”).  

            
	 	 
	
              1.9

            	
              The
                issuances of the Jacobs Shares, the Capersia Shares and the LOGI
                Shares
                (collectively the “Shares”), were validly issued, with approval by
                Texhoma’s Directors, fully paid and non-assessable upon their
                issuance  and the legal opinions previously provided for the
                sale or transfer of any such Shares pursuant to Rule 144 under the
                Securities Act of 1933, as amended, were compliant with Rule
                144.

            
	 	 
	
              1.10

            	
              The
                Parties wish to enter into this Mutual Release to settle their
                disputes.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              2.      Settlement.

            

    

    

    
      	
              2.1

            	
              The Jacobs
                Parties agree that in consideration for Texhoma agreeing to the terms
                and
                conditions of Section 3.3 and Section 4.3, as well as the other terms
                and
                conditions contained herein (the “Jacobs Consideration”), that the Jacobs
                Parties agree to the terms and conditions of Section 3.1, Section
                4.1 and
                Section 5, below, as well as the other terms and conditions contained
                herein.

            
	 	 
	
              2.2

            	
              The
                Non-Jacobs Parties agree that in consideration for Texhoma agreeing
                to the
                terms and conditions of Section 3.3 and Section 4.3, as well as the
                other
                terms and conditions contained herein (the “Non-Jacobs Consideration”),
                that the Non-Jacobs Parties agree to the terms and conditions of
                Section
                3.2, Section 4.2 and Section 5, below, as well as the other terms
                and
                conditions contained herein.

            
	 	 
	
              2.3

            	
              Texhoma
                agrees that in consideration for the Interested Parties agreeing
                to the
                terms and conditions of Sections 3.1, 3.2, 4.1, 4.2 and Section 5,
                below,
                as well as the other terms and conditions contained herein (the “Texhoma
                Consideration”), that Texhoma agrees to the terms and conditions of
                Section 3.3 and 4.3, below, as well as the other terms and conditions
                contained herein.

            
	 	 
	
              2.4

            	
              The
                Jacobs Parties agree that they will receive valid consideration from
                the
                Jacobs Consideration.

            
	 	 
	
              2.5

            	
              The
                Non-Jacobs Parties agree that they will receive valid consideration
                from
                the Non-Jacobs Consideration.

            
	 	 
	
              2.6

            	
              Texhoma
                agrees that it will receive valid consideration from the Texhoma
                Consideration.

            

    

    

    
      	
               

            	
              3.      Settlement
                Terms.

            

    

    

    
      	
              3.1

            	
              In
                consideration of the agreements and covenants set forth herein above
                and
                below, the sufficiency of which is hereby acknowledged and confessed,
                the
                Jacobs Parties, for themselves, their agents, servants, attorneys,
                officers, directors, employees, successors and assigns, to the extent
                legally allowed, hereby covenant and agree as follows:

            
	 	 
	
              3.1.1

            	
              To
                return 5,000,000 of the Jacobs Shares to Texhoma for cancellation
                (and to
                provide Texhoma authority and consent and to execute any required
                documentation in connection with such authority and consent to affect
                such
                cancellation) promptly after the Parties entry into this Mutual Release
                (the “Jacobs Cancellation”), which will leave Jacobs with 2,500,000 shares
                of Texhoma’s common stock (the “Remaining Jacobs Shares”) and that neither
                of the Jacobs Parties shall have any claim to or interest in any
                of the
                Jacobs Shares, other than the Remaining Jacobs Shares, subsequent
                to such
                return and cancellation.

            
	 	 
	
              3.1.2

            	
              That
                in connection with the Parties entry into this Mutual Release, that
                any
                and all debt owed by Texhoma to the Jacobs Parties, which is known
                or
                unknown, accounted for or unaccounted for, will be forever discharged
                and
                forgiven, the result of which will be that following the Parties
                entry
                into this Mutual Release, Texhoma will owe no cash nor any other
                consideration to any of the Jacobs Parties, or to any of the Non-Jacobs
                Parties, including but not limited to Clover and
                Capersia.

            
	 	 
	
              3.1.3

            	
              That
                Texhoma shall owe Jacobs no rights to contribution and/or indemnification
                in connection with his service to Texhoma as an officer or Director
                and/or
                in connection with his service to Texaurus Energy, Inc.,
                as   an officer or Director of such companies, following
                the Parties entry into this Mutual Release, for any matters, claims,
                or
                actions whatsoever, in connection with any cause of action, lawsuit,
                or
                complaint of any kind brought by any current or former shareholder
                of
                Texhoma or Texaurus, and/or current officer or Director of Texhoma
                or any
                regulatory board or commission.

            
	 	 
	
              3.1.4

            	
              That
                Jacobs will certify the accuracy and correctness of Texhoma’s yet to be
                prepared annual and interim financial statements and periodic reports,
                relating to the time periods of the Employment, in a form substantially
                similar to the SEC’s required (i) Certification Of Chief Executive Officer
                and Chief Financial Officer Pursuant To Section 302 of The Sarbanes-Oxley
                Act Of 2002 and Certification of Chief Executive Officer; and (ii)
                Certification of Chief Financial Officer Pursuant To 18 U.S.C. Section
                1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act
                Of 2002
                (collectively the “Certifications”).

            
	 	 
	
              3.1.5

            	
              That
                Jacobs will certify the accuracy and correctness of Texhoma’s previously
                prepared and filed annual and interim financial statements and periodic
                reports, relating to the time period of the Employment, by executing
                the
                Certifications attached hereto as Exhibit E.

            
	 	 
	
              3.1.6

            	
              That
                neither of the Jacobs Parties has any interest in, claim to, or
                disagreement with the LOGI Shares, and neither of the Jacobs Parties
                will
                take any steps or actions to prevent the sale of or transfer of such
                LOGI
                Shares, inquire into the status of such shares and/or to purchase
                and/or
                finance such shares in the future, directly or
                indirectly.

            
	 	 
	
              3.1.7

            	
              Jacobs
                agrees to continue to assist Texhoma to the best of his ability and
                knowledge, as Texhoma may reasonably request in writing, with responses
                to
                any questions asked regarding Texhoma’s operations and/or financial
                statements.  Jacobs also agrees to use his best efforts to
                produce executed copies of any documents reasonably requested by
                Texhoma,
                concerning Texhoma’s prior operations, liabilities, financial statements
                or disclosure in its Securities and Exchange Commission filings,
                directly
                or indirectly.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	 
	
              3.1.8

            	
              Jacobs
                agrees that any and all stock options which were granted by Texhoma
                to
                Jacobs previously in connection with his Employment or otherwise
                have
                previously expired unexercised and that he holds no options or warrants
                in
                the common stock of Texhoma or Texaurus.

            
	 	 
	
              3.1.9

            	
              That
                the Voting Agreement shall remain in full affect and force following
                the
                Parties’ execution of this Mutual Release and be enforceable against
                Jacobs for and until the expiration of the term of such Voting
                Agreement.

            
	 	 
	
              3.1.10

            	
              Jacobs
                certifies that he does not control or have any participation, beneficial
                ownership in, and/or interest in any shares of Texhoma other than
                the
                Jacobs Shares.

            
	 	 
	
              3.1.11

            	
              That
                nothing in this Mutual Release shall be construed in any way to relate
                to
                the approval or validation of the consideration given for or the
                validity
                of the issuance of the Shares by Texhoma or its current officers
                and
                directors, and/or to the validity or approval of any legal opinions
                previously provided for the sale or transfer of any such Shares pursuant
                to Rule 144 under the Securities Act of 1933, as amended or otherwise,
                by
                Texhoma or its current officers and directors.

            
	 	 
	
              3.2

            	
              In
                consideration of the agreements and covenants set forth herein above
                and
                below, the sufficiency of which is hereby acknowledged and confessed,
                the
                Non-Jacobs Parties, for themselves, their agents, affiliates, servants,
                attorneys, officers, directors, employees, successors and assigns,
                to the
                extent legally allowed, hereby covenant and agree as
                follows:

            
	 	 
	
              3.2.1

            	
              That
                in connection with the Parties entry into this Mutual Release, that
                any
                and all debt owed by Texhoma to Clover or Capersia or any affiliated
                parties of Clover or Capersia, or any other of the Non-Jacobs Parties,
                which is known or unknown, accounted for or unaccounted for, will
                be
                forever discharged and forgiven, the result of which will be that
                following the Parties entry into this Mutual Release, Texhoma will
                owe no
                cash nor any other consideration to either Clover or Capersia, nor
                any
                other of the Non-Jacobs Parties.

            
	 	 
	
              3.2.2

            	
              That
                none of the Non-Jacobs Parties have any interest in, claim to, or
                disagreement with the
                LOGI Shares, and none  of the Non-Jacobs Parties will take any
                steps or actions to prevent the sale of or transfer of such LOGI
                Shares,
                inquire into the status of such shares and/or to purchase such shares,
                inquire into the status of such shares and/or to purchase and/or
                finance
                such shares in the future, directly or
                indirectly.

            
	 	 
	
              3.2.3

            	
              That
                the Voting Agreement shall remain in full affect and force and be
                enforceable against Capersia for and until the expiration of the
                term of
                such Voting Agreement.

            
	 	 
	
              3.2.4

            	
              Capersia
                agrees not to sell, gift or otherwise transfer an amount of the Capersia
                Shares in excess of 2% of Texhoma’s then outstanding shares of common
                stock, in any three (3) month period, until the second anniversary
                of the
                Parties entry into this Mutual Release, unless such transfer is
                pre-approved in writing by Texhoma in its sole discretion (the “Capersia
                Leak-Out”).  Capersia further agrees that Texhoma may require
                Capersia to have an additional restrictive legend placed on the Capersia
                Shares, evidencing and disclosing the terms of the Capersia Leak-Out,
                in
                Texhoma’s sole discretion and that Capersia will promptly comply with such
                additional legend requirement.

            
	 	 
	
              3.2.5

            	
               That
                nothing in this Mutual Release shall be construed in any way to relate
                to
                the approval or validation of the consideration given for or the
                validity
                of the issuance of the Shares by Texhoma or its current officers
                and
                directors, and/or to the validity or approval of any legal opinions
                previously provided for the sale or transfer of any such Shares pursuant
                to Rule 144 under the Securities Act of 1933, as amended or otherwise,
                by
                Texhoma or its current officers and directors.

            
	 	 
	
              3.3

            	
              In
                consideration of the agreements and covenants set forth herein above
                and
                below, the sufficiency of which is hereby acknowledged and confessed,
                Texhoma, for itself, its agents, servants, attorneys, officers, directors,
                employees, successors and assigns, to the extent legally allowed,
                hereby
                covenants and agrees as follows:

            
	 	 
	
              3.3.1

            	
              Jacobs
                will retain the Remaining Jacobs Shares, Capersia will retain the
                Capersia
                Shares, and any previous assigns or transferees of the Jacobs Shares
                or
                the Capersia Shares, will retain such transferred or assigned shares,
                free
                and clear of any and all claims to such shares by Texhoma, other
                than the
                Capersia Leak-Out, described above.

            
	 	 
	
              3.3.2

            	
              Texhoma
                will release any and all claims to the Morgan Creek Shares and/or
                any
                additional shares of Morgan Creek Energy Corp., which Texhoma may
                have
                been due and/or be due as a result of any splits or shares distributions
                relating to the Morgan Creek Shares, and agrees that such Morgan
                Creek
                Shares shall be the sole property of Jacobs following the Parties
                entry
                into this Mutual Release, which Morgan Creek Shares were previously
                held
                by Jacobs in trust as collateral for repayment of the Jacobs
                Note.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	 

    

    
      	
               

            	
              4.      Mutual
                Release.

            

    

    

    
      	
              4.1

            	
              In
                consideration of the agreements and covenants set forth herein above
                and
                below, the sufficiency of which is hereby acknowledged and confessed,
                each
                of the Jacobs Parties, for themselves, their officers, directors,
                agents,
                servants, representatives, successors, employees and assigns,
                hereby covenants and agrees as follows:

            
	 	 
	
              4.1.1

            	
              That
                each of the Jacobs Parties hereby releases, acquits and forever discharges
                Texhoma, its current and former agents, officers, directors, servants,
                attorneys, representatives, successors, employees and assigns (each
                a
                “Texhoma Party” and collectively the “Texhoma Parties”) from any and all
                rights, obligations, claims, demands and causes of action, whether
                in
                contract, tort, under state and/or federal law, or state and/or federal
                securities regulations, whether asserted or unasserted, whether known
                or
                unknown, suspected or unsuspected, which they ever had or now have,
                upon
                or by reason of any manner, cause, causes or thing whatsoever, including
                without limitation, any presently existing claim or defense, whether
                or
                not presently asserted, suspected, contemplated or anticipated, arising
                from or relating to any Texhoma Party, the operations of Texhoma,
                and/or
                Texhoma in general, for or by reason of any matter, cause or thing
                whatsoever, including all obligations arising therefrom, and omissions
                and/or conduct of Texhoma or the Texhoma Parties, relating directly
                or
                indirectly thereto.

            
	 	 
	
              4.2

            	
              In
                consideration of the agreements and covenants set forth herein above
                and
                below, the sufficiency of which is hereby acknowledged and confessed,
                the
                Non-Jacobs Parties for themselves, their officers, directors, affiliates,
                agents, servants, representatives, successors, employees and assigns,
                hereby covenant and agree as follows:

            
	 	 
	
              4.2.1

            	
              That
                the Non-Jacobs Parties hereby release, acquit and forever discharge
                Texhoma, its current and former agents, officers, directors, servants,
                attorneys, representatives, successors, employees and assigns from
                any and
                all rights, obligations, claims, demands and causes of action, whether
                in
                contract, tort, under state and/or federal law, or state and/or federal
                securities regulations, whether asserted or unasserted, whether known
                or
                unknown, suspected or unsuspected, , which they ever had or now have,
                upon
                or by reason of any manner, cause, causes or thing whatsoever, including
                without limitation, any presently existing claim or defense, whether
                or
                not presently asserted, suspected, contemplated or anticipated, arising
                from or relating to any Texhoma Party, the operations of Texhoma,
                and/or
                Texhoma in general, for or by reason of any matter, cause or thing
                whatsoever, including all obligations arising therefrom, and omissions
                and/or conduct of Texhoma or the Texhoma Parties, relating directly
                or
                indirectly thereto.

            
	 	 
	
              4.3

            	
              In
                consideration of the agreements and covenants set forth herein above
                and
                below, the sufficiency of which is hereby acknowledged and confessed,
                Texhoma, hereby covenants and agrees as follows:

            
	 	 
	
              4.3.1

            	
              That
                Texhoma hereby releases, acquits and forever discharges each of the
                Interested Parties, their current and former agents, officers, directors,
                servants, attorneys, representatives, successors, employees and assigns
                in
                their role with such entities limited only to such demonstrable capacities
                from any and all rights, obligations, claims, demands and causes
                of
                action, whether in contract, tort, under state and/or federal law,
                or
                state and/or federal securities regulations, whether asserted or
                unasserted, whether known or unknown, suspected or unsuspected, which
                they
                ever had or now have, upon or
                by reason of any manner, cause, causes or thing whatsoever, including
                without limitation, any presently existing claim or defense, whether
                or
                not presently asserted, suspected, contemplated or anticipated, arising
                from or relating to the Capersia Shares, the Employment, the Jacobs
                Note,
                the Jacobs Shares, the Morgan Creek Shares, and the LOGI Shares
                (“Disputes”), for or by reason of any matter, cause or thing whatsoever,
                including all obligations arising therefrom, and omissions and/or
                conduct
                of any of the Interested Parties and/or their former or current agents,
                attorneys, servants, representatives, successors, employees, directors,
                officers and assigns, relating directly thereto in their role with
                such
                entities limited only to such demonstrable capacities in connection
                with
                the Disputes.

            
	 	 
	
              4.4

            	
              The
                Parties understand, acknowledge and agree that the releases set forth
                above may be pleaded as a full and complete defense and may be used
                as a
                basis for an injunction against any action, suit or other proceeding
                which
                may be instituted, prosecuted or attempted in breach of the provisions
                of
                such releases.  Similarly, the Parties agree that no fact,
                event, circumstance, evidence or transaction which could now be asserted
                or which may hereafter be discovered relating to the subject matter
                discussed above, shall affect in any manner the final, absolute and
                unconditional nature of the release set forth
                above.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              5.      Confidentiality
                and Non-Disclosure.

            

    

    

    
      	
              5.1

            	
              Confidentiality.

            
	 	 
	 	
              The
                Interested Parties hereby agree that the existence of this Mutual
                Release
                is and shall remain confidential and that any public announcement
                thereof,
                or Securities Exchange Commission report filed in connection therewith,
                in
                whatever timing or manner, shall be at the sole discretion of
                Texhoma.  The Interested Parties hereby also agree that the
                terms of the settlement described in this Mutual Release, and as
                such may
                have been previously discussed among the Parties, are and shall,
                at the
                discretion of Texhoma, remain confidential and the Interested Parties
                agree that such terms shall not be disclosed by the Interested Parties
                to
                any other person; provided, however, that any of the Interested Parties
                may disclose the terms of this Mutual Release (i) to its attorneys,
                accountants, senior managers or other professionals retained by the
                disclosing party for the purpose of rendering advice to the disclosing
                party as necessary to for fulfilling their obligations hereunder
                or filing
                tax returns so long as such persons are informed by the disclosing
                party
                as to the confidential nature of such information and are directed
                by the
                disclosing party to treat such information confidentially and to
                use it
                only in connection with their representation of the disclosing party;
                and
                (ii) pursuant to any legal process requiring such
                disclosure.  In the event that one of the Interested Parties is
                required by lawful order or subpoena to disclose any of the terms
                of this
                Mutual Release, said party must notify Texhoma of such order or subpoena
                immediately and prior to making any disclosures and shall provide
                Texhoma
                with the opportunity and cooperation necessary to object to, contest,
                or
                seek a protective order or other remedy concerning such
                disclosure.

            
	 	 
	
              5.2

            	
              Nondisparagement.

            
	 	 
	
              5.2.1

            	
              The
                Interested Parties agree that they will not say, write or cause to
                be
                said, disseminated, published, issued, communicated or written, any
                statement that may be considered defamatory, derogatory, or disparaging
                of
                Texhoma or any of Texhoma’s past, present, or future parents,
                subsidiaries, affiliates, officers, directors, trustees, employees,
                attorneys, investors, and agents, and its and their heirs, successors,
                assigns, representatives, and predecessors, individually and in their
                official capacities, except to the extent the same is a privileged
                communication under applicable law.

            
	 	 
	
              5.2.2

            	
              The
                Interested Parties agree that they will not say, write or cause to
                be
                said, disseminated, published, issued, communicated or written, any
                statement whatsoever, relating to Texhoma or any of Texhoma’s past,
                present, or future parents, subsidiaries, affiliates, officers, directors,
                trustees, employees, attorneys, investors, and agents, and its and
                their
                heirs, successors, assigns, representatives, and predecessors,
                individually and in their official capacities, to Laurus Master Fund,
                Ltd., any current, former or future affiliates of Laurus Master Fund,
                Ltd., any other former, current or future officers and directors
                of
                Texhoma, and/or any other former, current or future business partners
                or
                parties to any agreements whatsoever with Texhoma, without the prior
                written consent of Texhoma.

            
	 	 
	
              5.3

            	
              Damages.

            
	 	 
	
              5.3.1

            	
              The
                Interested Parties agree that upon any breach of this Section 5,
                by any
                Interested Party, whether intentional or unintentional, deliberate
                or
                accidental, for any reason whatsoever, such Interested Party will
                pay
                Texhoma liquidated damages in the amount of $25,000, per breach,
                which
                amount shall not be a penalty, but which amount the Interested Parties
                agree is a good faith estimate of the actual damages that will be
                caused
                to Texhoma by such breach by any Interested Party (the “Interested Party
                Liquidated Damages”). Each Interested Party further agrees that such
                Interested Party Liquidated Damages are reasonable.  The
                recovery of the Liquidated Damages shall not limit Texhoma’s (nor any
                other of the Texhoma Parties’) ability to pursue any cause of action, or
                obtain any other judgment, injunction or remedy, whatsoever, against
                any
                of the Interested Parties in connection with any such breach of this
                Section 5, and, all Parties agree that such Liquidated Damages shall
                be in
                addition to any remedy in law or
                equity.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	 

    

    
      	
               

            	
              6.      Miscellaneous

            

    

    

    
      	
              6.1

            	
              No
                Other Cause of Action.  The Parties are not aware of
                any claims not being released herein against them.

            
	 	 
	
              6.2

            	
              Capacity
                and Authorization.  The Parties to this Mutual Release
                further represent that they have read it in full before its execution
                and
                that they fully understand the meaning, operation and effect of its
                terms.  Each individual signing this Mutual Release warrants and
                represents that he or she has the full authority and is duly authorized
                and empowered to execute this Mutual Release on behalf of the Party
                for
                which he or she signs.

            
	 	 
	
              6.3

            	
              Assignments.  The
                Interested Parties represent that they have not assigned, in whole
                or in
                part, any
                claims, demands and/or causes of action against Texhoma to any person
                or
                entity prior to their execution of this Mutual
                Release.

            
	 	 
	
              6.4

            	
              Section
                Headings. Section headings are for convenience only and shall not
                define or limit the provisions of this Agreement.

            
	 	 
	
              6.5

            	
              Waiver.
                No failure on the part of any Party to enforce any provisions of
                this
                Agreement will act as a waiver of the right to enforce that
                provision.

            
	 	 
	
              6.6

            	
              Binding
                Effect.  This Mutual Release shall be binding on and
                inure to the benefit of the Parties and their respective heirs,
                successors, assigns, directors, officers, agents, employees and personal
                representatives.

            
	 	 
	
              6.7

            	
              Modification.  No
                modification or amendment of this Mutual Release shall be effective
                unless
                such modification or amendment shall be in writing and signed by
                all
                Parties hereto.

            
	 	 
	
              6.8

            	
              Entire
                Agreement.  This Mutual Release constitutes the entire
                agreement between the Parties pertaining to the subject matter hereof
                and
                supersedes all prior and contemporaneous agreements, understandings,
                negotiations and discussions, whether oral or written, of the Parties
                in
                connection with the subject matter hereof.

            
	 	 
	
              6.9

            	
              Interpretation.  The
                interpretation, construction and performance of this Mutual Release
                shall
                be governed by the laws of the State of Texas.  Whenever used
                herein, the singular number shall include the plural, the plural
                shall
                include the singular and the use of any gender shall be applicable
                to all
                genders.

            
	 	 
	
              6.10

            	
              Faxed
                Signatures.  For purposes of this Mutual Release a
                faxed signature shall constitute an original signature.

            
	 	 
	
              6.11

            	
              Execution.  This
                Mutual Release may be executed in several counterparts, each of which
                shall be deemed an original, and such counterparts taken together
                shall
                constitute but one and the same Mutual Release.  A photocopy of
                this Mutual Release shall be effective as an original for all
                purposes.

            
	 	 

    

    

    

    

    

    

    [Remainder
      of page left intentionally blank. Signature page follows.]

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    IN
      WITNESS WHEREOF, intending to be legally bound, the Parties hereto have
      executed this Mutual Release as of the date first written above.

    
 

    Texhoma
      Energy,
      Inc.

    

    

    /s/
      Frank A.
      Jacobs                                                                             
/s/ Daniel Vesco

    Frank
      A.
      Jacobs                                                                                  Daniel
      Vesco

     CEO

    

    

    Jacobs
      Oil & Gas
      Limited                                                                
Texaurus Energy, Inc.

    By:
      Texhoma Energy, Inc.

    By:
      /s/ Frank A.
      Jacobs                                                                     Its:
      Sole Shareholder

    Its:
      President and
      CEO                                                                        /s/
      Daniel Vesco

    Printed
      Name: Frank A.
      Jacobs                                                         Daniel
      Vesco

     CEO

    

    

    Clover
      Capital                                                                                     
Capersia Pte. Ltd.

    

    By:
      /s/ Dr. Gerold
      Hoop                                                                      
By: /s/ Richard Wilson

    Its:
      Director                                                                                        Its:
      Directors Duly Authorized Signatory

    Printed
      Name: Dr. Gerold
      Hoop                 
                                      
Printed Name: Richard Wilson

    

    

    Sterling
      Grant Capital, Inc.

    

    By:
      /s/ Peter Wilson

    Its:
      President                                                                                         /s/
      Peter Wilson

    Printed
      Name: Peter
      Wilson                       
                                       
Peter Wilson

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      E

    CERTIFICATION
      OF FRANK A. JACOBS PURSUANT TO

    SECTIONS
      302 and 906 OF THE SARBANES-OXLEY ACT OF 2002

    

    I,
      Frank
      A. Jacobs, certify that:

    

    1.            I
      have reviewed Texhoma Energy, Inc.’s (the “Company’s”) Annual Report on Form
      10-KSB for the period ended September 30, 2005, which was filed with the
      Securities and Exchange Commission (the “SEC”) on August 21, 2007, and the
      Company’s Quarterly Report on Form 10-QSB for the period ending December 31,
      2005, filed with the SEC on September 11, 2007, the Company’s Quarterly Report
      on Form 10-QSB for the period ending March 31, 2006, filed with the SEC on
      October 2, 2007, and the Company’s Quarterly Report on Form 10-QSB for the
      period ending June 30, 2006, filed with the SEC on October 12, 2007
      (collectively, the “Report”)’

    

    2.
                  Based on
      my knowledge, the Reports do not contain any untrue statement of a material
      fact
      or omit to state a material fact necessary to make the statements made, in
      light
      of the circumstances under which such statements were made, not misleading
      with
      respect to the period covered by such Reports;

    

    3.
                  Based on
      my knowledge, the financial statements, and other financial information included
      in the Reports, fairly present in all material respects the financial condition,
      results of operations and cash flows of the Company as of, and for, the periods
      presented in such Reports;

    

    4.
                  I was
      responsible for establishing and maintaining disclosure controls and procedures
      (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company
      during the time periods of the Reports, and:

    

    a)
                  Designed
      such disclosure controls and procedures, or caused such disclosure controls
      and
      procedures to be designed, to ensure that material information relating to
      the
      Company, including its consolidated subsidiaries, was made known within those
      entities, particularly during the period in which the Reports were
      prepared;

    

    b)
                  Evaluated
      the effectiveness of the Company's disclosure controls and procedures and agree
      with the conclusions about the effectiveness of the disclosure controls and
      procedures, as of the end of the periods covered by the Reports, based on such
      evaluation; and

    

    c)
                  Agree
      with the disclosure in the Reports, regarding any change in the Company's
      internal control over financial reporting that occurred during the time periods
      covered by the Reports that have materially affected, or is reasonably likely
      to
      materially affect, the Company's internal control over financial reporting;
      and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.
                  I have
      disclosed, based on, my evaluation of internal control over financial reporting,
      to the Company:

     

    a)
                  All
      significant deficiencies and material weaknesses in the design or operation
      of
      internal control over financial reporting which are reasonably likely to
      adversely affect the Company's ability to record, process, summarize and report
      financial information, which are present or were present during the time periods
      of the Reports; and

    

    b)
                  Any
      fraud, whether or not material, that involves management or other employees
      who
      have a significant role in the Company's internal control over financial
      reporting.

    

    6.           
      I, Frank A. Jacobs, also certify, pursuant to 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Reports
      fully comply with the requirements of Section 13(a) or 15(d) of the Securities
      Exchange Act of 1934 and that information contained in such Reports fairly
      presents in all material respects the financial condition and results of
      operations of Texhoma Energy, Inc. as of the periods covered by the
      Reports.

    

    The
      Company, and its officers, Directors, agents and representatives may rely on
      this certification letter. I personally, will jointly and severally indemnify
      the Company and hold the Company harmless from and against any and all loss
      damage, claim, liability and expense arising out of or resulting from the breach
      of any warranty, certification, representation or covenant herein.

    

    

    ______________________

    Frank
      A.
      Jacobs

    

    

    Date:__________________

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