Document:

Exhibit 10.1

    Exhibit
      10.1

    
 

    ANADIGICS,
      INC.

    AMENDED
      AND RESTATED

    2005
      LONG TERM INCENTIVE AND SHARE AWARD PLAN

    

    

    
      	1.  	
              Purposes.

            

    

     

    The
      purposes of the 2005 Long Term Incentive and Share Award Plan are to advance
      the
      interests of ANADIGICS, Inc. and its shareholders by providing a means to
      attract, retain, and motivate employees, consultants and
      directors of the Company, its subsidiaries and affiliates, to provide for
      competitive compensation opportunities, to encourage long term service, to
      recognize individual contributions and reward achievement of performance goals,
      and to promote the creation of long term value for stockholders by aligning
      the
      interests of such persons with those of stockholders.

     

    
      	2.  	
              Definitions.

            

    

     

    For
      purposes of the Plan, the following terms shall be defined as set forth
      below:

     

    (a)  “Affiliate”
      means any entity other than the Company and its Subsidiaries that is designated
      by the Board or the Committee as a participating employer under the Plan;
provided,
      however,
      that
      the Company directly or indirectly owns at least 20% of the combined voting
      power of all classes of stock of such entity or at least 20% of the ownership
      interests in such entity.

     

    (b)  “Award”
      means any Option, SAR, Restricted Share, Restricted Share Unit, Performance
      Share, Performance Unit, Dividend Equivalent, or Other Share-Based Award granted
      to an Eligible Person under the Plan.

     

    (c)  “Award
      Agreement” means any written agreement, contract, or other instrument or
      document evidencing an Award.

     

    (d)  “Beneficiary”
      means the person, persons, trust or trusts which have been designated by an
      Eligible Person in his or her most recent written beneficiary designation filed
      with the Company to receive the benefits specified under this Plan upon the
      death of the Eligible Person, or, if there is no designated Beneficiary or
      surviving designated Beneficiary, then the person, persons, trust or trusts
      entitled by will or the laws of descent and distribution to receive such
      benefits.

     

    (e)  “Board”
      means the Board of Directors of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    (f)  “Code”
      means the Internal Revenue Code of 1986, as amended from time to time.
      References to any provision of the Code shall be deemed to include successor
      provisions thereto and regulations thereunder.

     

    (g)  “Committee”
      means the Compensation Committee of the Board, or such other Board committee
      (which may include the entire Board) as may be designated by the Board to
      administer the Plan; provided,
      however,
      that,
      unless otherwise determined by the Board, the Committee shall consist of two
      or
      more directors of the Company, each of whom is a “non-employee director” within
      the meaning of Rule 16b-3 under the Exchange Act, to the extent applicable,
      and
      each of whom is an “outside director” within the meaning of Section 162(m)
      of the Code, to the extent applicable; provided,
      further,
      that
      the mere fact that the Committee shall fail to qualify under either of the
      foregoing requirements shall not invalidate any Award made by the Committee
      which Award is otherwise validly made under the Plan.

     

    (h)  “Company”
      means ANADIGICS, Inc., a corporation organized under the laws of Delaware,
      or
      any successor corporation.

     

    (i)  “Director”
      means a member of the Board who is not an employee of the Company, a Subsidiary
      or an Affiliate.

     

    (j)  “Dividend
      Equivalent” means a right, granted under Section 5(g), to receive cash, Shares,
      or other property equal in value to dividends paid with respect to a specified
      number of Shares. Dividend Equivalents may be awarded on a free-standing basis
      or in connection with another Award, and may be paid currently or on a deferred
      basis.

     

    (k)  “Eligible
      Person” means (i) an employee or consultant of the Company, a Subsidiary or an
      Affiliate, including any director who is an employee, or (ii) a Director.
      Notwithstanding any provisions of this Plan to the contrary, an Award may be
      granted to an employee, consultant or Director, in connection with his or her
      hiring or retention prior to the date the employee, consultant or Director
      first
      performs services for the Company, a Subsidiary or an Affiliate; provided,
      however,
      that
      any such Award shall not become vested or exercisable prior to the date the
      employee, consultant or Director first performs such services.

     

    (l)  “Exchange
      Act” means the Securities Exchange Act of 1934, as amended from time to time.
      References to any provision of the Exchange Act shall be deemed to include
      successor provisions thereto and regulations thereunder.

     

    (m)  “Fair
      Market Value” means, with respect to Shares or other property, the fair market
      value of such Shares or other property determined by such methods or procedures
      as shall be established from time to time by the Committee. If the Shares are
      listed on any established stock exchange or a national market system, unless
      otherwise determined by the Committee in good faith, the Fair Market Value
      of
      Shares shall mean the mean between 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    the
      high
      and low selling prices per Share on the immediately preceding date (or, if
      the
      Shares were not traded on that day, the next preceding day that the Shares
      were
      traded) on the principal exchange or market system on which the Shares are
      traded, as such prices are officially quoted on such exchange.

     

    (n)  “ISO”
      means any Option intended to be and designated as an incentive stock option
      within the meaning of Section 422 of the Code.

     

    (o)  “NQSO”
      means any Option that is not an ISO.

     

    (p)  “Option”
      means a right, granted under Section 5(b), to purchase Shares.

     

    (q)  “Other
      Share-Based Award” means a right, granted under Section 5(h), that relates to or
      is valued by reference to Shares.

     

    (r)  “Participant”
      means an Eligible Person who has been granted an Award under the
      Plan.

     

    (s)  “Performance
      Share” means a performance share granted under Section 5(f).

     

    (t)  “Performance
      Unit” means a performance unit granted under Section 5(f).

     

    (u)  “Plan”
      means this 2005 Long Term Incentive and Share Award Plan.

     

    (v)  “Restricted
      Shares” means an Award of Shares under Section 5(d) that may be subject to
      certain restrictions and to a risk of forfeiture.

     

    (w)  “Restricted
      Share Unit” means a right, granted under Section 5(e), to receive Shares or cash
      at the end of a specified deferral period.

     

    (x)  “Rule
      16b-3” means Rule 16b-3, as from time to time in effect and applicable to the
      Plan and Participants, promulgated by the Securities and Exchange Commission
      under Section 16 of the Exchange Act.

     

    (y)  “SAR”
or
      “Share Appreciation Right” means the right, granted under Section 5(c), to be
      paid an amount measured by the difference between the exercise price of the
      right and the Fair Market Value of Shares on the date of exercise of the right,
      with payment to be made in cash, Shares, or property as specified in the Award
      or determined by the Committee.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    (z)  “Shares”
      means common stock, $0.01 par value per share, of the Company, and such other
      securities as may be substituted for Shares pursuant to Section 4(c)
      hereof.

     

    (aa)  “Subsidiary”
      means any corporation (other than the Company) in an unbroken chain of
      corporations beginning with the Company if each of the corporations (other
      than
      the last corporation in the unbroken chain) owns shares possessing 50% or more
      of the total combined voting power of all classes of stock in one of the other
      corporations in the chain.

     

    (bb)  “Termination
      of Service” means the termination of the Participant’s employment, consulting
      services or directorship with the Company, its Subsidiaries and its Affiliates,
      as the case may be. A Participant employed by a Subsidiary of the Company or
      one
      of its Affiliates shall also be deemed to incur a Termination of Service if
      the
      Subsidiary of the Company or Affiliate ceases to be such a Subsidiary or an
      Affiliate, as the case may be, and the Participant does not immediately
      thereafter become an employee or director of, or a consultant to, the Company,
      another Subsidiary of the Company or an Affiliate. Temporary absences from
      employment because of illness, vacation or leave of absence and transfers among
      the Company and its Subsidiaries and Affiliates shall not be considered a
      Termination of Service.

     

    
      	3.  	
              Administration.

            

    

     

    (a)  Authority
      of the Committee.
      The
      Plan shall be administered by the Committee, and the Committee shall have full
      and final authority to take the following actions, in each case subject to
      and
      consistent with the provisions of the Plan:

     

    (i)  to
      select
      Eligible Persons to whom Awards may be granted;

     

    (ii)  to
      designate Affiliates;

     

    (iii)  to
      determine the type or types of Awards to be granted to each Eligible
      Person;

     

    (iv)  to
      determine the type and number of Awards to be granted, the number of Shares
      to
      which an Award may relate, the terms and conditions of any Award granted under
      the Plan (including, but not limited to, any exercise price, grant price, or
      purchase price, any restriction or condition, any schedule for lapse of
      restrictions or conditions relating to transferability or forfeiture,
      exercisability, or settlement of an Award, and waiver or accelerations thereof,
      and waivers of performance conditions relating to an Award, based in each case
      on such considerations as the Committee shall determine), and all other matters
      to be determined in connection with an Award;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    (v)  to
      determine whether, to what extent, and under what circumstances an Award may
      be
      settled, or the exercise price of an Award may be paid, in cash, Shares, other
      Awards, or other property, or an Award may be canceled, forfeited, exchanged,
      or
      surrendered;

     

    (vi)  to
      determine whether, to what extent, and under what circumstances cash, Shares,
      other Awards, or other property payable with respect to an Award will be
      deferred either automatically, at the election of the Committee, or at the
      election of the Eligible Person;

     

    (vii)  to
      prescribe the form of each Award Agreement, which need not be identical for
      each
      Eligible Person;

     

    (viii)  to
      adopt,
      amend, suspend, waive, and rescind such rules and regulations and appoint such
      agents as the Committee may deem necessary or advisable to administer the
      Plan;

     

    (ix)  to
      correct any defect or supply any omission or reconcile any inconsistency in
      the
      Plan and to construe and interpret the Plan and any Award, rules and
      regulations, Award Agreement, or other instrument hereunder;

     

    (x)  to
      accelerate the exercisability or vesting of all or any portion of any Award
      or
      to extend the period during which an Award is exercisable; 

     

    (xi)  to
      determine whether uncertificated Shares may be used in satisfying Awards and
      otherwise in connection with the Plan; and

     

    (xii)  to
      make
      all other decisions and determinations as may be required under the terms of
      the
      Plan or as the Committee may deem necessary or advisable for the administration
      of the Plan.

     

    (b)  Manner
      of Exercise of Committee Authority.
      The
      Committee shall have sole discretion in exercising its authority under the
      Plan.
      Any action of the Committee with respect to the Plan shall be final, conclusive,
      and binding on all persons, including the Company, Subsidiaries, Affiliates,
      Eligible Persons, any person claiming any rights under the Plan from or through
      any Eligible Person, and shareholders. The express grant of any specific power
      to the Committee, and the taking of any action by the Committee, shall not
      be
      construed as limiting any power or authority of the Committee. The Committee
      may
      delegate to other members of the Board or officers or managers of the Company
      or
      any Subsidiary or Affiliate the authority, subject to such terms as the
      Committee shall determine, to perform administrative functions and, with respect
      to Awards granted to persons not subject to Section 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    16
      of the
      Exchange Act, to perform such other functions as the Committee may determine,
      to
      the extent permitted under Rule 16b-3 (if applicable) and applicable
      law.

     

    (c)  Limitation
      of Liability.
      Each
      member of the Committee shall be entitled to, in good faith, rely or act upon
      any report or other information furnished to him or her by any officer or other
      employee of the Company or any Subsidiary or Affiliate, the Company’s
      independent certified public accountants, or other professional retained by
      the
      Company to assist in the administration of the Plan. No member of the Committee,
      and no officer or employee of the Company acting on behalf of the Committee,
      shall be personally liable for any action, determination, or interpretation
      taken or made in good faith with respect to the Plan, and all members of the
      Committee and any officer or employee of the Company acting on their behalf
      shall, to the extent permitted by law, be fully indemnified and protected by
      the
      Company with respect to any such action, determination, or
      interpretation.

     

    (d)  Limitation
      on Committee’s Discretion.
      Anything in this Plan to the contrary notwithstanding, in the case of any Award
      which is intended to qualify as “performance-based compensation” within the
      meaning of Section 162(m)(4)(C) of the Code, if the Award Agreement so provides,
      the Committee shall have no discretion to increase the amount of compensation
      payable under the Award to the extent such an increase would cause the Award
      to
      lose its qualification as such performance-based compensation.

     

    (e)  No
      Option or SAR Repricing Without Shareholder Approval.
      Except
      as provided in the first sentence of Section 4(c) hereof relating to
      certain antidilution adjustments, unless the approval of shareholders of the
      Company is obtained, Options and SARs issued under the Plan shall not be amended
      to lower their exercise price and Options and SARs issued under the Plan will
      not be exchanged for other Options or SARs with lower exercise prices or for
      other awards the effect of which would be a repricing of the Options or
      SARs.

     

    (f)  Limitation
      on Committee’s Authority under 409A.
      Anything in this Plan to the contrary notwithstanding, the Committee’s authority
      to modify outstanding Awards shall be limited to the extent necessary so that
      the existence of such authority does not (i) cause an Award that is not
      otherwise deferred compensation subject to Section 409A of the Code to become
      deferred compensation subject to Section 409A of the Code or (ii) cause an
      Award
      that is otherwise deferred compensation subject to Section 409A of the Code
      to
      fail to meet the requirements prescribed by Section 409A of the
      Code.

     

    
      	4.  	
              Shares
                Subject to the Plan.

            

    

     

    (a)  Subject
      to adjustment as provided in Section 4(c) hereof, (i) the total number of Shares
      reserved for issuance in connection with Awards under the Plan shall be
      5,450,000, and (ii) the total number of Shares reserved for issuance in
      connection with 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    Awards
      other than Options (i.e.,
      SARs,
      Restricted Share, Restricted Unit, Performance Share, Performance Unit, Dividend
      Equivalents and Other Share-Based Awards) shall be 5,150,000. No Award may
      be
      granted if the number of Shares to which such Award relates, when added to
      the
      number of Shares previously issued under the Plan, exceeds the number of Shares
      reserved under the applicable provisions of the preceding sentence. If any
      Awards are forfeited, canceled, terminated, exchanged or surrendered or such
      Award is settled in cash or otherwise terminates without a distribution of
      Shares to the Participant, any Shares counted against the number of Shares
      reserved and available under the Plan with respect to such Award shall, to
      the
      extent of any such forfeiture, settlement, termination, cancellation, exchange
      or surrender, again be available for Awards under the Plan. Upon the exercise
      of
      any Award granted in tandem with any other Awards, such related Awards shall
      be
      canceled to the extent of the number of Shares as to which the Award is
      exercised. 

     

    (b)  Subject
      to adjustment as provided in Section 4(c) hereof, the maximum number of Shares
      (i) with respect to which Options or SARs may be granted during a calendar
      year to any Eligible Person under this Plan shall be 500,000 Shares, and
      (ii) with respect to Performance Shares, Performance Units, Restricted
      Shares or Restricted Share Units intended to qualify as performance-based
      compensation within the meaning of Section 162(m)(4)(C) of the Code shall
      be the equivalent of 500,000 Shares during a calendar year to any Eligible
      Person under this Plan.

     

    (c)  In
      the
      event that the Committee shall determine that any dividend in Shares,
      recapitalization, Share split, reverse split, reorganization, merger,
      consolidation, spin-off, combination, repurchase, share exchange, extraordinary
      distribution or other similar corporate transaction or event, affects the Shares
      such that an adjustment is appropriate in order to prevent dilution or
      enlargement of the rights of Eligible Persons under the Plan, then the Committee
      shall make such equitable changes or adjustments as it deems appropriate and,
      in
      such manner as it may deem equitable (i), adjust any or all of (x) the number
      and kind of shares which may thereafter be issued under the Plan, (y) the number
      and kind of shares, other securities or other consideration issued or issuable
      in respect of outstanding Awards, and (z) the exercise price, grant price,
      or
      purchase price relating to any Award, or (ii) provide for a distribution of
      cash
      or property in respect of any Award; provided,
      however,
      in each
      case that, with respect to ISOs, such adjustment shall be made in accordance
      with Section 424(a) of the Code, unless the Committee determines otherwise
      and
provided further,
      that no
      adjustment shall be made pursuant to this Section 4(c) that causes any
      Award that is not otherwise deferred compensation subject to Section 409A of
      the
      Code to become deferred compensation subject to Section 409A of the Code. In
      addition, the Committee is authorized to make adjustments in the terms and
      conditions of, and the criteria and performance objectives, if any, included
      in,
      Awards in recognition of unusual or non-recurring events (including, without
      limitation, events described in the preceding sentence) affecting the Company
      or
      any Subsidiary or Affiliate or the financial statements of the Company or any
      Subsidiary or Affiliate, or in 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    response
      to changes in applicable laws, regulations, or accounting principles;
provided,
      however,
      that,
      if an Award Agreement specifically so provides, the Committee shall not have
      discretion to increase the amount of compensation payable under the Award to
      the
      extent such an increase would cause the Award to lose its qualification as
      performance-based compensation for purposes of Section 162(m)(4)(C) of the
      Code
      and the regulations thereunder.

     

    (d)  Any
      Shares distributed pursuant to an Award may consist, in whole or in part, of
      authorized and unissued Shares or treasury Shares including Shares acquired
      by
      purchase in the open market or in private transactions.

     

    
      	5.  	
              Specific
                Terms of Awards.

            

    

     

    (a)  General.
      Awards
      may be granted on the terms and conditions set forth in this Section 5. In
      addition, the Committee may impose on any Award or the exercise thereof, at
      the
      date of grant or thereafter (subject to Section 8(d)), such additional terms
      and
      conditions, not inconsistent with the provisions of the Plan, as the Committee
      shall determine, including terms regarding forfeiture of Awards or continued
      exercisability of Awards in the event of Termination of Service by the Eligible
      Person.

     

    (b)  Options.
      The
      Committee is authorized to grant Options, which may be NQSOs or ISOs, to
      Eligible Persons on the following terms and conditions:

     

    (i)  Exercise
      Price.
      The
      exercise price per Share purchasable under an Option shall be determined by
      the
      Committee; provided,
      however,
      that
      the exercise price per Share of an Option shall not be less than the Fair Market
      Value of a Share on the date of grant of the Option. The Committee may, without
      limitation, set an exercise price that is based upon achievement of performance
      criteria if deemed appropriate by the Committee.

     

    (ii)  Option
      Term.
      The
      term of each Option shall be determined by the Committee; provided,
      however,
      that
      such term shall not be longer than ten years from the date of grant of the
      Option.

     

    (iii)  Time
      and Method of Exercise.
      The
      Committee shall determine at the date of grant or thereafter the time or times
      at which an Option may be exercised in whole or in part (including, without
      limitation, upon achievement of performance criteria if deemed appropriate
      by
      the Committee), the methods by which such exercise price may be paid or deemed
      to be paid (including, without limitation, broker-assisted exercise
      arrangements), the form of such payment (including, without limitation, cash,
      Shares, notes or other property), and the methods by which Shares will be
      delivered or deemed to be delivered to Eligible Persons; provided,
      however,
      that in
      no event may any portion of the exercise price be paid with Shares acquired
      either under an Award 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    granted
      pursuant to this Plan, upon exercise of a stock option granted under another
      Company plan or as a stock bonus or other stock award granted under another
      Company plan unless, in any such case, the Shares were acquired and vested
      more
      than six months in advance of the date of exercise.

     

    (iv)  ISOs.
      The
      terms of any ISO granted under the Plan shall comply in all respects with the
      provisions of Section 422 of the Code, including but not limited to the
      requirement that the ISO shall be granted within ten years from the earlier
      of
      the date of adoption or shareholder approval of the Plan. ISOs may only be
      granted to employees of the Company or a Subsidiary.

     

    (c)  SARs.
      The
      Committee is authorized to grant SARs (Share Appreciation Rights) to Eligible
      Persons on the following terms and conditions:

     

    (i)  Right
      to Payment.
      A SAR
      shall confer on the Eligible Person to whom it is granted a right to receive
      with respect to each Share subject thereto, upon exercise thereof, the excess
      of
      (1) the Fair Market Value of one Share on the date of exercise over (2) the
      exercise price per Share of the SAR as determined by the Committee as of the
      date of grant of the SAR (which shall not be less than the Fair Market Value
      per
      Share on the date of grant of the SAR and, in the case of a SAR granted in
      tandem with an Option, shall be equal to the exercise price of the underlying
      Option).

     

    (ii)  The
      Committee shall determine, at the time of grant, the time or times at which
      a
      SAR may be exercised in whole or in part (which shall not be more than ten
      years
      after the date of grant of the SAR), the method of exercise, method of
      settlement, form of consideration payable in settlement, method by which Shares
      will be delivered or deemed to be delivered to Eligible Persons, whether or
      not
      a SAR shall be in tandem with any other Award, and any other terms and
      conditions of any SAR. Unless the Committee determines otherwise, a SAR (1)
      granted in tandem with an NQSO may be granted at the time of grant of the
      related NQSO or at any time thereafter and (2) granted in tandem with an ISO
      may
      only be granted at the time of grant of the related ISO.

     

    (d)  Restricted
      Shares.
      The
      Committee is authorized to grant Restricted Shares to Eligible Persons on the
      following terms and conditions:

     

    (i)  Issuance
      and Restrictions.
      Restricted Shares shall be subject to such restrictions on transferability
      and
      other restrictions, if any, as the Committee may impose at the date of grant
      or
      thereafter, which restrictions may lapse separately or in combination at such
      times, under such circumstances (including, without limitation, upon achievement
      of performance criteria if deemed appropriate by the Committee), in such
      installments, or otherwise, as the Committee may determine. Except to the extent
      re

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -10-

      

    

    stricted
      under the Award Agreement relating to the Restricted Shares, an Eligible Person
      granted Restricted Shares shall have all of the rights of a shareholder
      including, without limitation, the right to vote Restricted Shares and the
      right
      to receive dividends thereon. 

     

    (ii)  Forfeiture.
      Except
      as otherwise determined by the Committee, at the date of grant or thereafter,
      upon Termination of Service during the applicable restriction period, Restricted
      Shares and any accrued but unpaid dividends or Dividend Equivalents that are
      at
      that time subject to restrictions shall be forfeited; provided,
      however,
      that
      the Committee may provide, by rule or regulation or in any Award Agreement,
      or
      may determine in any individual case, that restrictions or forfeiture conditions
      relating to Restricted Shares will be waived in whole or in part in the event
      of
      Termination of Service resulting from specified causes, and the Committee may
      in
      other cases waive in whole or in part the forfeiture of Restricted
      Shares.

     

    (iii)  Certificates
      for Shares.
      Restricted Shares granted under the Plan may be evidenced in such manner as
      the
      Committee shall determine. If certificates representing Restricted Shares are
      registered in the name of the Eligible Person, such certificates shall bear
      an
      appropriate legend referring to the terms, conditions, and restrictions
      applicable to such Restricted Shares and, unless otherwise determined by the
      Committee, the Company shall retain physical possession of the certificate
      and
      the Participant shall deliver a stock power to the Company, endorsed in blank,
      relating to the Restricted Shares.

     

    (iv)  Dividends.
      Dividends paid on Restricted Shares shall be either paid at the dividend payment
      date, or deferred for payment to such date as determined by the Committee,
      in
      cash or in restricted or unrestricted Shares having a Fair Market Value equal
      to
      the amount of such dividends. Unless otherwise determined by the Committee,
      Shares distributed in connection with a Share split or dividend in Shares,
      and
      other property distributed as a dividend, shall be subject to restrictions
      and a
      risk of forfeiture to the same extent as the Restricted Shares with respect
      to
      which such Shares or other property has been distributed.

     

    (e)  Restricted
      Share Units.
      The
      Committee is authorized to grant Restricted Share Units to Eligible Persons,
      subject to the following terms and conditions:

     

    (i)  Award
      and Restrictions.
      Delivery of Shares or cash, as the case may be, will occur upon expiration
      of
      the deferral period specified for Restricted Share Units by the Committee (or,
      if permitted by the Committee, as elected by the Eligible Person). In addition,
      Restricted Share Units shall be subject to such restrictions as the Committee
      may impose, if any (including, without limitation, the achievement of
      performance criteria if deemed appropriate by the Committee), at the date of
      grant or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -11-

      

    

    thereafter,
      which restrictions may lapse at the expiration of the deferral period or at
      earlier or later specified times, separately or in combination, in installments
      or otherwise, as the Committee may determine. 

     

    (ii)  Forfeiture.
      Except
      as otherwise determined by the Committee at the date of grant or thereafter,
      upon Termination of Service during the applicable deferral period or portion
      thereof to which forfeiture conditions apply (as provided in the Award Agreement
      evidencing the Restricted Share Units), or upon failure to satisfy any other
      conditions precedent to the delivery of Shares or cash to which such Restricted
      Share Units relate, all Restricted Share Units that are at that time subject
      to
      deferral or restriction shall be forfeited; provided,
      however,
      that
      the Committee may provide, by rule or regulation or in any Award Agreement,
      or
      may determine in any individual case, that restrictions or forfeiture conditions
      relating to Restricted Share Units will be waived in whole or in part in the
      event of Termination of Service resulting from specified causes, and the
      Committee may in other cases waive in whole or in part the forfeiture of
      Restricted Share Units.

     

    (iii)  Dividend
      Equivalents.
      Unless
      otherwise determined by the Committee at the date of grant, Dividend Equivalents
      on the specified number of Shares covered by a Restricted Share Unit shall
      be
      either (A) paid with respect to such Restricted Share Unit at the dividend
      payment date in cash or in restricted or unrestricted Shares having a Fair
      Market Value equal to the amount of such dividends, or (B) deferred with respect
      to such Restricted Share Unit and the amount or value thereof automatically
      deemed reinvested in additional Restricted Share Units or other Awards, as the
      Committee shall determine or permit the Participant to elect.

     

    (f)  Performance
      Shares and Performance Units.
      The
      Committee is authorized to grant Performance Shares or Performance Units or
      both
      to Eligible Persons on the following terms and conditions:

     

    (i)  Performance
      Period.
      The
      Committee shall determine a performance period (the “Performance Period”) of one
      or more years or other periods and shall determine the performance objectives
      for grants of Performance Shares and Performance Units. Performance objectives
      may vary from Eligible Person to Eligible Person and shall be based upon the
      performance criteria as the Committee may deem appropriate. The performance
      objectives may be determined by reference to the performance of the Company,
      or
      of a Subsidiary or Affiliate, or of a division or unit of any of the foregoing.
      Performance Periods may overlap and Eligible Persons may participate
      simultaneously with respect to Performance Shares and Performance Units for
      which different Performance Periods are prescribed.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -12-

      

    

    

     

    (ii)  Award
      Value.
      At the
      beginning of a Performance Period, the Committee shall determine for each
      Eligible Person or group of Eligible Persons with respect to that Performance
      Period the range of number of Shares, if any, in the case of Performance Shares,
      and the range of dollar values, if any, in the case of Performance Units, which
      may be fixed or may vary in accordance with such performance or other criteria
      specified by the Committee, which shall be paid to an Eligible Person as an
      Award if the relevant measure of Company performance for the Performance Period
      is met. 

     

    (iii)  Significant
      Events.
      If
      during the course of a Performance Period there shall occur significant events
      as determined by the Committee which the Committee expects to have a substantial
      effect on a performance objective during such period, the Committee may revise
      such objective; provided,
      however,
      that,
      if an Award Agreement so provides, the Committee shall not have any discretion
      to increase the amount of compensation payable under the Award to the extent
      such an increase would cause the Award to lose its qualification as
      performance-based compensation for purposes of Section 162(m)(4)(C) of the
      Code
      and the regulations thereunder.

     

    (iv)  Forfeiture.
      Except
      as otherwise determined by the Committee, at the date of grant or thereafter,
      upon Termination of Service during the applicable Performance Period,
      Performance Shares and Performance Units for which the Performance Period was
      prescribed shall be forfeited; provided,
      however,
      that
      the Committee may provide, by rule or regulation or in any Award Agreement,
      or
      may determine in an individual case, that restrictions or forfeiture conditions
      relating to Performance Shares and Performance Units will be waived in whole
      or
      in part in the event of Terminations of Service resulting from specified causes,
      and the Committee may in other cases waive in whole or in part the forfeiture
      of
      Performance Shares and Performance Units.

     

    (v)  Payment.
      Each
      Performance Share or Performance Unit may be paid in whole Shares, or cash,
      or a
      combination of Shares and cash either as a lump sum payment or in installments,
      all as the Committee shall determine, at the time of grant of the Performance
      Share or Performance Unit or otherwise, commencing as soon as practicable after
      the end of the relevant Performance Period. 

     

    (g)  Dividend
      Equivalents.
      The
      Committee is authorized to grant Dividend Equivalents to Eligible Persons.
      The
      Committee may provide, at the date of grant or thereafter, that Dividend
      Equivalents shall be paid or distributed when accrued or shall be deemed to
      have
      been reinvested in additional Shares, or other investment vehicles as the
      Committee may specify; provided,
      however,
      that
      Dividend Equivalents (other than freestanding Dividend Equivalents) shall be
      subject to all conditions and restrictions of any underlying Awards to which
      they relate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -13-

      

    

    

     

    (h)  Other
      Share-Based Awards.
      The
      Committee is authorized, subject to limitations under applicable law, to grant
      to Eligible Persons such other Awards that may be denominated or payable in,
      valued in whole or in part by reference to, or otherwise based on, or related
      to, Shares, as deemed by the Committee to be consistent with the purposes of
      the
      Plan, including, without limitation, unrestricted shares awarded purely as
      a
“bonus” and not subject to any restrictions or conditions, other rights
      convertible or exchangeable into Shares, purchase rights for Shares, Awards
      with
      value and payment contingent upon performance of the Company or any other
      factors designated by the Committee, and Awards valued by reference to the
      performance of specified Subsidiaries or Affiliates. The Committee shall
      determine the terms and conditions of such Awards at date of grant or
      thereafter. Shares delivered pursuant to an Award in the nature of a purchase
      right granted under this Section 5(h) shall be purchased for such consideration,
      paid for at such times, by such methods, and in such forms, including, without
      limitation, cash, Shares, notes or other property, as the Committee shall
      determine. Cash awards, as an element of or supplement to any other Award under
      the Plan, shall also be authorized pursuant to this Section 5(h).

     

    
      	6.  	
              Certain
                Provisions Applicable to Awards.

            

    

     

    (a)  Stand-Alone,
      Additional, Tandem and Substitute Awards.
      Awards
      granted under the Plan may, in the discretion of the Committee, be granted
      to
      Eligible Persons either alone or in addition to, in tandem with, or in exchange
      or substitution for, any other Award granted under the Plan or any award granted
      under any other plan or agreement of the Company, any Subsidiary or Affiliate,
      or any business entity to be acquired by the Company or a Subsidiary or
      Affiliate, or any other right of an Eligible Person to receive payment from
      the
      Company or any Subsidiary or Affiliate. Awards may be granted in addition to
      or
      in tandem with such other Awards or awards, and may be granted either as of
      the
      same time as or a different time from the grant of such other Awards or awards.
      Subject to the provisions of Section 3(e) hereof prohibiting Option and SAR
      repricing without shareholder approval, the per Share exercise price of any
      Option, or grant price of any SAR, which is granted, in connection with the
      substitution of awards granted under any other plan or agreement of the Company
      or any Subsidiary or Affiliate or any business entity to be acquired by the
      Company or any Subsidiary or Affiliate, shall be determined by the Committee,
      in
      its discretion.

     

    (b)  Term
      of Awards.
      The
      term of each Award granted to an Eligible Person shall be for such period as
      may
      be determined by the Committee; provided,
      however,
      that in
      no event shall the term of any Option or a SAR exceed a period of ten years
      from
      the date of its grant (or such shorter period as may be applicable under Section
      422 of the Code).

     

    (c)  Form
      of Payment Under Awards.
      Subject
      to the terms of the Plan and any applicable Award Agreement, payments to be
      made
      by the Company or a Subsidiary or Affiliate upon the grant, maturation, or
      exercise of an Award may be made in such forms as the Committee shall determine
      at the date of grant or thereafter, including, without limitation, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -14-

      

    

    cash,
      Shares, notes or other property, and may be made in a single payment or
      transfer, in installments, or on a deferred basis. The Committee may make rules
      relating to installment or deferred payments with respect to Awards, including
      the rate of interest to be credited with respect to such payments, and the
      Committee may require deferral of payment under an Award if, in the sole
      judgment of the Committee, it may be necessary in order to avoid
      nondeductibility of the payment under Section 162(m) of the
      Code.

     

    (d)  Nontransferability.
      Unless
      otherwise set forth by the Committee in an Award Agreement, Awards shall not
      be
      transferable by an Eligible Person except by will or the laws of descent and
      distribution (except pursuant to a Beneficiary designation) and shall be
      exercisable during the lifetime of an Eligible Person only by such Eligible
      Person or his guardian or legal representative. An Eligible Person’s rights
      under the Plan may not be pledged, mortgaged, hypothecated, or otherwise
      encumbered, and shall not be subject to claims of the Eligible Person’s
      creditors.

     

    (e)  Noncompetition.
      The
      Committee may, by way of the Award Agreements or otherwise, establish such
      other
      terms, conditions, restrictions and/or limitations, if any, of any Award,
      provided they are not inconsistent with the Plan, including, without limitation,
      the requirement that the Participant not engage in competition with, solicit
      customers or employees of, or disclose or use confidential information of,
      the
      Company or its Affiliates.

     

    
      	7.  	
              Performance
                Awards.

            

    

     

    (a)  Performance
      Awards Granted to Covered Employees.
      If the
      Committee determines that an Award (other than an Option or SAR) to be granted
      to an Eligible Person should qualify as “performance-based compensation” for
      purposes of Section 162(m) of the Code, the grant, vesting, exercise and/or
      settlement of such Award (each, a “Performance Award”) shall be contingent upon
      achievement of preestablished performance goals and other terms set forth in
      this Section 7(a).

     

    (i)  Performance
      Goals Generally.
      The
      performance goals for such Performance Awards shall consist of one or more
      business criteria and a targeted level or levels of performance with respect
      to
      each of such criteria, as specified by the Committee consistent with this
      Section 7(a). The performance goals shall be objective and shall otherwise
      meet
      the requirements of Section 162(m) of the Code and regulations thereunder
      (including Treasury Regulation 1.162-27 and successor regulations thereto),
      including the requirement that the level or levels of performance targeted
      by
      the Committee result in the achievement of performance goals being
“substantially uncertain.” The Committee may determine that such Performance
      Awards shall be granted, vested, exercised and/or settled upon achievement
      of
      any one performance goal or that two or more of the performance goals must
      be
      achieved as a condition to grant, vesting, exercise and/or settlement of such
      Performance Awards. Performance 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -15-

      

    

    goals
      may
      differ for Performance Awards granted to any one Participant or to different
      Participants.

     

    (ii)  Business
      Criteria.
      One or
      more of the following business criteria for the Company, on a consolidated
      basis, and/or for specified Subsidiaries or Affiliates or other business units
      or lines of business of the Company shall be used by the Committee in
      establishing performance goals for such Performance Awards: (1)
      earnings per share (basic or fully diluted); (2) revenues; (3)
      earnings, before or after taxes, from operations (generally or specified
      operations), or before or after interest expense, depreciation, amortization,
      incentives, or extraordinary or special items; (4)
      cash
      flow,
      free
      cash flow, cash flow return on investment (discounted or otherwise), net cash
      provided by operations, or cash flow in excess of cost of capital;
      (5)
      return on net assets, return on assets, return on investment, return on capital,
      return on equity; (6) economic value added; (7) operating margin or operating
      expense; (8) net income; (9) Share price or total stockholder return; and
(10)
      strategic business criteria, consisting of one or more objectives based on
      meeting specified market penetration, geographic business expansion goals,
      cost
      targets, customer satisfaction, supervision of litigation and information
      technology, and goals relating to acquisitions or divestitures of Subsidiaries,
      Affiliates or joint ventures. The targeted level or levels of performance with
      respect to such business criteria may be established at such levels and in
      such
      terms as the Committee may determine, in its discretion, including in absolute
      terms, as a goal relative to performance in prior periods, or as a goal compared
      to the performance of one or more comparable companies or an index covering
      multiple companies. 

     

    (iii)  Performance
      Period; Timing for Establishing Performance Goals; Per-Person
      Limit.
      Achievement of performance goals in respect of such Performance Awards shall
      be
      measured over a performance period, as specified by the Committee. A performance
      goal shall be established not later than the earlier of (A) 90 days after the
      beginning of any performance period applicable to such Performance Award or
      (B)
      the time 25% of such performance period has elapsed. In all cases, the maximum
      Performance Award of any Participant shall be subject to the limitation set
      forth in Section 4(b) or 7(a)(v), as applicable.

     

    (iv)  Settlement
      of Performance Awards; Other Terms.
      Settlement of such Performance Awards shall be in cash, Shares, other Awards
      or
      other property, in the discretion of the Committee. The Committee may, in its
      discretion, reduce the amount of a settlement otherwise to be made in connection
      with such Performance Awards, but may not exercise discretion to increase any
      such amount payable to the Participant in respect of a Performance Award subject
      to this Section 7(a). Any settlement which changes the form of payment from
      that
      originally specified shall be implemented in a manner such that the Performance
      Award and other related Awards do not, solely for 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -16-

      

    

    that
      reason, fail to qualify as “performance-based compensation” for purposes of
      Section 162(m) of the Code. The Committee shall specify the circum-stances
      in
      which such Performance Awards shall be paid or forfeited in the event of
      Termination of Service of the Participant or other event (including a Change
      of
      Control) prior to the end of a performance period or settlement of such
      Performance Awards.

     

    (v)  Maximum
      Annual Cash Award.
      The
      maximum amount payable upon settlement of a cash-settled Performance Unit (or
      other cash-settled Award) granted under this Plan for any calendar year to
      any
      Eligible Person that is intended to satisfy the requirements for
“performance-based compensation” under Section 162(m) of the Code shall not
      exceed $1,000,000.

     

    (b)  Written
      Determinations.
      Determinations by the Committee as to the establishment of performance goals,
      the amount potentially payable in respect of Performance Awards, the level
      of
      actual achievement of the specified performance goals relating to Performance
      Awards and the amount of any final Performance Award shall be recorded in
      writing in the case of Performance Awards intended to qualify under Section
      162(m) of the Code. Specifi-cally, the Committee shall certify in writing,
      in a
      manner conforming to applicable regulations under Section 162(m), prior to
      settlement of each such Award, that the performance objective relating to the
      Performance Award and other material terms of the Award upon which settlement
      of
      the Award was conditioned have been satisfied.

     

    
      	8.  	
              General
                Provisions.

            

    

     

    (a)  Compliance
      with Legal and Trading Requirements.
      The
      Plan, the granting and exercising of Awards thereunder, and the other
      obligations of the Company under the Plan and any Award Agreement, shall be
      subject to all applicable federal, state and foreign laws, rules and
      regulations, and to such approvals by any stock exchange, regulatory or
      governmental agency as may be required. The Company, in its discretion, may
      postpone the issuance or delivery of Shares under any Award until completion
      of
      such stock exchange or market system listing or registration or qualification
      of
      such Shares or any required action under any state, federal or foreign law,
      rule
      or regulation as the Company may consider appropriate, and may require any
      Participant to make such representations and furnish such information as it
      may
      consider appropriate in connection with the issuance or delivery of Shares
      in
      compliance with applicable laws, rules and regulations. No provisions of the
      Plan shall be interpreted or construed to obligate the Company to register
      any
      Shares under federal, state or foreign law. The Shares issued under the Plan
      may
      be subject to such other restrictions on transfer as determined by the
      Committee.

     

    (b)  No
      Right to Continued Employment or Service.
      Neither
      the Plan nor any action taken thereunder shall be construed as giving any
      employee, consultant or director the right to be retained in the employ or
      service of the Company or any of its Subsidiaries or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -17-

      

    

    Affiliates,
      nor shall it interfere in any way with the right of the Company or any of its
      Subsidiaries or Affiliates to terminate any employee’s, consultant’s or
      director’s employment or service at any time.

     

    (c)  Taxes.
      The
      Company or any Subsidiary or Affiliate is authorized to withhold from any Award
      granted, any payment relating to an Award under the Plan, including from a
      distribution of Shares, or any payroll or other payment to an Eligible Person,
      amounts of withholding and other taxes due in connection with any transaction
      involving an Award, and to take such other action as the Committee may deem
      advisable to enable the Company and Eligible Persons to satisfy obligations
      for
      the payment of withholding taxes and other tax obligations relating to any
      Award. This authority shall include authority to withhold or receive Shares
      or
      other property and to make cash payments in respect thereof in satisfaction
      of
      an Eligible Person’s tax obligations; provided,
      however,
      that
      the amount of tax withholding to be satisfied by withholding Shares shall be
      limited to the minimum amount of taxes, including employment taxes, required
      to
      be withheld under applicable Federal, state and local law.

     

    (d)  Changes
      to the Plan and Awards.
      The
      Board may amend, alter, suspend, discontinue, or terminate the Plan or the
      Committee’s authority to grant Awards under the Plan without the consent of
      shareholders of the Company or Participants, except that any such amendment
      or
      alteration shall be subject to the approval of the Company’s shareholders (i) to
      the extent such shareholder approval is required under the rules of any stock
      exchange or automated quotation system on which the Shares may then be listed
      or
      quoted, or (ii) as it applies to ISOs, to the extent such shareholder approval
      is required under Section 422 of the Code; provided,
      however,
      that,
      without the consent of an affected Participant, no amendment, alteration,
      suspension, discontinuation, or termination of the Plan may materially and
      adversely affect the rights of such Participant under any Award theretofore
      granted to him or her. The Committee may waive any conditions or rights under,
      amend any terms of, or amend, alter, suspend, discontinue or terminate, any
      Award theretofore granted, prospectively or retrospectively; provided,
      however,
      that,
      without the consent of a Participant, no amendment, alteration, suspension,
      discontinuation or termination of any Award may materially and adversely affect
      the rights of such Participant under any Award theretofore granted to him or
      her.

     

    (e)  No
      Rights to Awards; No Shareholder Rights.
      No
      Eligible Person or employee shall have any claim to be granted any Award under
      the Plan, and there is no obligation for uniformity of treatment of Eligible
      Persons and employees. No Award shall confer on any Eligible Person any of
      the
      rights of a shareholder of the Company unless and until Shares are duly issued
      or transferred to the Eligible Person in accordance with the terms of the
      Award.

     

     

    
      
         

      

      
         

        
          

        

      

      
        -18-

      

    

     

    (f)  Unfunded
      Status of Awards.
      The
      Plan is intended to constitute an “unfunded” plan for incentive compensation.
      With respect to any payments not yet made to a Participant
      pursuant to an Award, nothing contained in the Plan or any Award shall give
      any
      such Participant any rights that are greater than those of a general creditor
      of
      the Company; provided,
      however,
      that
      the Committee may authorize the creation of trusts or make other arrangements
      to
      meet the Company’s obligations under the Plan to deliver cash, Shares, other
      Awards, or other property pursuant to any Award, which trusts or other
      arrangements shall be consistent with the “unfunded” status of the Plan unless
      the Committee otherwise determines with the consent of each affected
      Participant.

     

    (g)  Nonexclusivity
      of the Plan.
      Neither
      the adoption of the Plan by the Board nor its submission to the shareholders
      of
      the Company for approval shall be construed as creating any limitations on
      the
      power of the Board to adopt such other incentive arrangements as it may deem
      desirable, including, without limitation, the granting of options and other
      awards otherwise than under the Plan, and such arrangements may be either
      applicable generally or only in specific cases.

     

    (h)  Not
      Compensation for Benefit Plans.
      No
      Award payable under this Plan shall be deemed salary or compensation for the
      purpose of computing benefits under any benefit plan or other arrangement of
      the
      Company for the benefit of its employees, consultants or directors unless the
      Company shall determine otherwise.

     

    (i)  No
      Fractional Shares.
      No
      fractional Shares shall be issued or delivered pursuant to the Plan or any
      Award. The Committee shall determine whether cash, other Awards, or other
      property shall be issued or paid in lieu of such fractional Shares or whether
      such fractional Shares or any rights thereto shall be forfeited or otherwise
      eliminated.

     

    (j)  Governing
      Law.
      The
      validity, construction, and effect of the Plan, any rules and regulations
      relating to the Plan, and any Award Agreement shall be determined in accordance
      with the laws of New York without giving effect to principles of conflict of
      laws thereof.

     

    (k)  Effective
      Date; Plan Termination.
      The
      Plan shall become effective as of April 6, 2005 (the “Effective Date”), subject
      to approval by the shareholders of the Company. The Plan shall terminate as
      to
      future awards on the date which is ten (10) years after the Effective
      Date.

     

    (l)  Section
      409A.
      It is
      intended that the Plan and Awards issued thereunder will comply with Section
      409A of the Code (and any regulations and guidelines issued thereunder) to
      the
      extent the Awards are subject thereto, and the Plan and such Awards shall be
      interpreted on a basis consistent with such intent. The Plan and any Award
      Agreements 

    
      
        
        

      

      
        
        

        
          

        

      

      
        -19-

      

    

     

    issued
      thereunder may be amended in any respect deemed
      by the Board or the Committee to be necessary in order to preserve compliance
      with Section 409A of the Code.

    (m)  Titles
      and Headings.
      The
      titles and headings of the sections in the Plan are for convenience of reference
      only. In the event of any conflict, the text of the Plan, rather than such
      titles or headings, shall control.Exhibit 10.1

    EXHIBIT
      10.1 

    

    

     

    

    ASSET
      PURCHASE AGREEMENT

     

    

    Between:

    

    

    BOOMERS’
      CULTURAL DEVELOPMENT INC.

    

    

    

    And:

    

    

    KOKO
      PETROLEUM INC.

    

    

    
 

    

    __________

     

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    ASSET
      PURCHASE AGREEMENT

    

     

    THIS
      ASSET PURCHASE AGREEMENT
      is dated
      and made for reference as fully executed on this _____ day of __________, 2006
      (the “Effective
      Date”).

     

    BETWEEN:

     

    BOOMERS’
      CULTURAL DEVELOPMENT INC.,
      a
      company duly incorporated under the laws of Nevada and having its mailing
      address at 1453 Johnston Road, #71524, White Rock, BC, V5J 2G8

    

    (the
      “Transferor”);

    F
      THE FIRST PART

    

    AND:

    

    KOKO
      PETROLEUM INC.,
      a
      company duly incorporated under the laws of Nevada and having an address for
      notice and delivery located at 123 Christie Mountain Lane, Okanogan Falls,
      BC,
      V0H 1R0 

    

    (the
      “Transferee”);

    OF
      THE SECOND PART

     

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

    

    

    WHEREAS:

    

    A. The
      Transferor is the owner of certain interests in the Corsicana Fields Project,
      Barnet Shale Formation, McKinney, Blackburn, in Texas (collectively, the
“Assets”),
      a
      complete listing of such Assets of the Transferor being set forth in Schedule
      “A” which is attached to this Agreement and which forms a material part
      hereof;

    

    B. The
      Transferee is desirous of acquiring the Assets of the Transferor, as displayed
      in that certain Letter of Intent dated for reference May 4, 2006, a copy of
      which is attached as Schedule “B” which is attached to this Agreement and which
      forms a material part hereof.

    

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSETH that,
      in
      consideration of the mutual covenants and provisos herein contained, THE
      PARTIES HERETO AGREE AS FOLLOWS:

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    Article
      I

     

    DEFINITIONS,
      SCHEDULES AND INTERPRETATION

    

    1.1  Definitions.
      For all
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires, the following words and phrases shall have the
      following meanings:

    

    
      	(a)  	
              “Agreement”
                means this Asset Purchase Agreement as entered into between the Transferor
                and the Transferee herein, together with any amendments and any
                Schedules;

            

    

    

    
      	(b)  	
              “Assets”
                has the meaning ascribed to it in recital “A” hereinabove, and which
                Assets are particularly described in Schedule “A” which is attached
                hereto;

            

    

    

    
      	(c)  	
              “Confidential
                Information”
                has the meaning ascribed to it in section “9.1”
                hereinbelow;

            

    

    

    
      	(d)  	
              “Defaulting
                Party”
                and “Non-Defaulting
                Party”
                have the meanings ascribed to them in section “12.1”
                hereinbelow;

            

    

    

    
      	(e)  	
              “Indemnified
                Party”
                has the meaning ascribed to it in section “13.1”
                hereinbelow;

            

    

    

    
      	(f)  	
              “Parties”
                or “Party”
                means, respectively, the Transferor and/or the Transferee hereto,
                as the
                case may be, together with their respective successors and permitted
                assigns as the context so requires;

            

    

    

    1.2  Schedules. For
      the
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires, the following shall represent the Schedules which
      are attached to this Agreement and which form a material part
      hereof:

     

     

    
      	Schedule 	Description 
	 	 
	Schedule “A”: 	List of Assets being sold to the
              Transferee 
	 	 
	Schedule “B”: 	Letter of Intent dated May 4,
              2006 

    

    

     

    1.3  Interpretation. For
      the
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires,:

    

    
      	 	
              (a)

            	
              the
                words “herein”, “hereof” and “hereunder” and other words of similar import
                refer to this Agreement as a whole and not to any particular Article,
                section or other subdivision of this
                Agreement;

            

    

    

    
      	 	
              (b)

            	
              the
                headings are for convenience only and do not form a part of this
                Agreement
                nor are they intended to interpret, define or limit the scope or
                extent of
                this or any provision of this
                Agreement;

            

    

    

    
      	 	
              (c)

            	
              any
                reference to an entity shall include and shall be deemed to be a
                reference
                to any entity that is a permitted successor to such entity;
                and

            

    

    

    
      	 	
              (d)

            	
              words
                in the singular include the plural and words in the masculine gender
                include the feminine and neuter genders, and vice
                versa.

            

    

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Article
      2

     

    PURCHASE
      AND SALE OF ASSETS

    

    

    2.1  Purchase
      and Sale.
      The
      Transferee hereby purchases, without condition, and the Transferor hereby sells,
      without condition, the Assets in consideration of the following:

    

    
      	(a)  	
              The
                issuance of 1,500,000 shares from the treasury of the
                Transferee;

            

    

    
      	(b)  	
              $20,000
                on or before the closing of this transaction (the
                “Closing”);

            

    

    
      	(c)  	
              Up
                to $80,000 as required within seven (7) days of written request by
                the
                Transferor to be used for legal, accounting, and administrative fees
                for
                the purpose of the Transferor obtaining a listing on the NASDAQ OTC
                Bulletin Board; and

            

    

    
      	(d)  	
              Assumption
                of $150,000 in debt owed by the Transferor with respect to the Corsicana
                Field Project. 

            

    

    

    

    

    Article
      3

     

    BOARD
      REPRESENTATION

    

    3.1  Entitlement
      to Board Representation.
      The
      Transferee shall cause the Transferor to nominate a candidate of its choosing
      to
      sit on the board of directors of the Transferee.

    

    3.2  Accounting.
      It is
      hereby also acknowledged and agreed by the Parties hereto that the Transferee,
      or its subsidiary as the case may be, will maintain, at its principal place
      of
      business, separate accounts, and records thereto, of business and activities
      conducted pursuant to this Agreement and that such accounts and records are
      to
      be in sufficient detail. In this regard the Transferee shall retain the
      accounts, and records in relation thereto, for at least one year after the
      date
      upon which they were made and presented to the Transferor. The Transferee shall
      furnish such reasonable evidence as the Transferor deems necessary to verify
      the
      accounting and will permit the Transferor’s respective representatives to make
      copies of or extracts from such accounts and records.

    

    3.3  Inspection.
      The
      Transferor shall have, on at least five business days’ notice, unimpeded right
      and authority to enter on the premises of the Transferee, its representatives,
      its agents, its counsel or any other party having control or possession of
      records or premises of the Transferee or in relation to its production or sales
      or distribution of the Products, for the purpose of all such investigations
      as
      the Transferor may require to assure themselves as to the compliance by the
      Transferee with appropriate accounting provisions of this Agreement. In this
      regard the Transferee covenants to allow and assist the Transferor, and the
      Transferor’s duly authorized representatives, access to all the aforesaid
      premises and locations and access to all such personnel and other persons as
      the
      Transferor may require, and the Transferee shall make such premises, records
      and
      persons available within five business days of notice by the Transferor. In
      the
      event that any aforesaid party refuses or delays or omits to give the Transferor
      entry and access to premises or records, the Transferee warrants to give the
      Transferor all reasonable assistance to effect such end.

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Article
      4

     

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS BY THE TRANSFEROR

    

    4.1  Representations,
      Warranties and Covenants by the Transferor.
      In
      order to induce the Transferee to enter into and consummate this Agreement,
      the
      Transferor represents to and warrants to the Transferee that, to the best of
      the
      informed knowledge, information and belief of the Transferor:

    

    
      	
            	(a)	
              the
                Transferor is duly incorporated under the laws of its jurisdiction
                of
                incorporation and is validly existing and in good standing with respect
                to
                all statutory filings required by the applicable corporate
                laws;

            

    

    

    
      	
            	(b)	
              the
                Transferor is qualified to do business in those jurisdictions where
                it is
                necessary to fulfill its obligations under this Agreement and the
                Transferor has the full power and authority to enter into this Agreement
                and any agreement or instrument referred to or contemplated by this
                Agreement;

            

    

    

    
      	 	
              (c)

            	
              the
                Transferor is the registered and beneficial owner of its interests
                in the
                Assets as set out in the Agreements referred to in Schedule “A” and has
                the requisite power, authority and capacity to own and use the Assets
                and
                the Transferor owns the right to develop and maintain the
                Assets;

            

    

    

    
      	 	
              (d)

            	
              no
                person, firm or corporation has any written or oral agreement, option,
                understanding or commitment, or any right or privilege capable of
                becoming
                an agreement, for the purchase from the Transferor of any of the
                Assets;

            

    

    

    

    
      	
            	(e)	
              the
                Transferor has not experienced, nor is the Transferor aware of, any
                occurrence or event which has had, or might reasonably be expected
                to
                have, a materially adverse affect on the
                Assets;

            

    

    

    

    
      	
            	(f)	
              the
                Transferor is not in breach of any provision or condition of, nor
                has the
                Transferor done or omitted to do anything that, with or without the
                giving
                of notice or lapse or both, would constitute a breach of any provision
                or
                condition of, or give rise to any right to terminate or cancel or
                accelerate the maturity of any payment under, any deed of trust,
                contract,
                certificate, consent, permit, license or other instrument to which
                the
                Transferor is a party, by which the Transferor is bound or from which
                the
                Transferor derives benefit, or any judgment, decree, order, rule
                or
                regulation of any Court or governmental authority to which the Transferor
                is subject, or any statute or regulation applicable to the Transferor,
                to
                an extent that, in the aggregate, has a material adverse affect on
                the
                Transferor or the Assets;

            

    

    

    
      	 	
              (g)

            	
              the
                Transferor has not committed to sell, license, distribute, option,
                or
                otherwise dispose of or grant any interest in all or any part of
                the
                Assets or agree to do or perform any act or enter into any transaction
                or
                negotiation which could reasonably be expected to interfere with
                this
                Agreement or which would render inaccurate any of the representations,
                warranties or covenants set forth in this
                Agreement;

            

    

    

    
      	 	
              (h)

            	
              the
                execution and delivery of this Agreement and the agreements contemplated
                hereby have been duly authorized by all necessary action, corporate
                or
                otherwise, or will have been so authorized at the relevant
                time;

            

    

    

    
      	
            	(i)	
              this
                Agreement constitutes a legal, valid and binding obligation of the
                Transferor enforceable against it in accordance with its terms, except
                as
                enforcement may be limited by laws of general application affecting
                the
                rights of creditors and the discretionary authority of courts of
                law;

            

    

    

    
      	
            	(j)	
              no
                proceedings are pending for, and the Transferor is unaware of, any
                basis
                for the institution of any proceedings leading to its respective
                dissolution or winding up, or the placing of it in bankruptcy or
                subject
                to any other laws governing the affairs of insolvent
                companies;

            

    

    

    
      	
            	(k)	
              the
                making of this Agreement and the completion of the transactions
                contemplated hereby and the performance of and compliance with the
                terms
                hereof does not and will not:

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
            	(i)	
              conflict
                with or result in a breach of or violate any of the terms, conditions
                or
                provisions of the Transferor’s constating
                documents;

            

    

    

    

    
      	
            	(ii)	
              give
                to any party the right of termination, cancellation or acceleration
                in or
                with respect to any agreement, contract or commitment to which the
                Transferor is a party;

            

    

    

    
      	
            	(iii)	
              give
                to any government or governmental authority, or any municipality
                or any
                subdivision thereof, including any governmental department, commission,
                bureau, board or administration agency, any right of termination,
                cancellation or suspension of, or constitute a breach of or result
                in a
                default under, any permit, license, control or authority issued to
                the
                Transferor which is necessary or desirable in connection with the
                conduct
                and operations of its respective Business and the ownership or leasing
                of
                its respective Assets or other assets;
                or

            

    

    

    

    
      	
            	(l)	
              the
                Transferor will employ good faith, due diligence, and best efforts
                to
                perform its obligations of this Agreement and will enter into such
                additional or collateral agreements as may be reasonably required
                by the
                Transferee to effect and complete the objects and intent of this
                Agreement.

            

    

    

    4.2  Continuity
      of the Representations, Warranties and Covenants by the
      Transferor.
      The
      representations, warranties and covenants by the Transferor contained in this
      Article, or in any certificates or documents delivered pursuant to the
      provisions of this Agreement or in connection with the transactions contemplated
      hereby, will be true at and as of the Effective Date. Subject to any
      investigations or inquiries made by the Transferee or by the Transferee’s
      professional advisors, or the waiver of any condition by the Transferee, the
      representations, warranties and covenants of the Transferor contained in this
      Article shall continue in full force and effect for a period of twelve (12)
      months from the Effective Date; provided, however, that the Transferor shall
      not
      be responsible for the breach of any representation, warranty or covenant of
      the
      Transferor contained herein caused by any act or omission of the Transferee.
      In
      the event that any of the representations, warranties or covenants of the
      Transferor are found by a Court of competent jurisdiction to be incorrect and
      such incorrectness results in any loss or damage sustained, directly or
      indirectly, by the Transferee, then the Transferor will pay the amount of such
      loss or damage to the Transferee within 30 calendar days of receiving notice
      of
      judgment therefor; provided that the damages will be limited to the
      consideration paid upon closing.

    

    

    Article
      5

     

    WARRANTIES,
      REPRESENTATIONS AND COVENANTS BY THE TRANSFEREE

    

    5.1  Warranties,
      Representations and Covenants by the Transferee.
      In
      order to induce the Transferor to enter into and consummate this Agreement,
      the
      Transferee hereby warrants to and represents to the Transferor that, to the
      best
      of the informed knowledge, information and belief of the Transferee, after
      having made due inquiry:

    

    (a) the
      Transferee is duly incorporated under the laws of its jurisdiction of
      incorporation and is validly existing and in good standing with respect to
      all
      statutory filings required by the applicable corporate laws;

    

    
      	 	
              (b)

            	
              the
                execution and delivery of this Agreement and the agreements contemplated
                hereby has been duly authorized by all necessary corporate action
                on its
                part;

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              there
                are no consents, approvals or conditions precedent to the performance
                of
                this Agreement;

            

    

    

    
      	 	
              (d)

            	
              this
                Agreement constitutes a legal, valid and binding obligation of the
                Transferee enforceable against the Transferee in accordance with
                its
                terms, except as enforcement may be limited by laws of general application
                affecting the rights of creditors;

            

    

    

    
      	 	
              (e)

            	
              no
                proceedings are pending for, and the Transferee is unaware of, any
                basis
                for the institution of any proceedings leading to the dissolution
                or
                winding up of the Transferee or the placing of the Transferee in
                bankruptcy or subject to any other laws governing the affairs of
                insolvent
                companies;

            

    

    

    
      	 	
              (f)

            	
              the
                Transferee is not in breach of any laws, ordinances, statutes,
                regulations, by-laws, orders or decrees to which it is subject or
                which
                apply to it;

            

    

    

    
      	 	
              (g)

            	
              there
                has been and there will be prepared and filed on a timely basis all
                federal and state income tax returns, elections and designations,
                and all
                other governmental returns, notices and reports of which the Transferee
                had, or ought reasonably to have had, knowledge required to be or
                reasonably capable of being filed with respect to the operations
                of the
                Transferee, and no such returns, elections, designations, notices
                or
                reports contain or will contain any material misstatement or omit
                any
                material statement that should have been included, and each such
                return,
                election, designation, notice or report, including accompanying schedules
                and statements, is and will be true, correct and complete in all
                material
                respects;

            

    

    

    
      	 	
              (h)

            	
              the
                making of this Agreement and the completion of the transactions
                contemplated hereby and the performance of and compliance with the
                terms
                hereof does not and will not:

            

    

    

    
      	 	 	
              (i)

            	
              conflict
                with or result in a breach of or violate any of the terms, conditions
                or
                provisions of the constating documents of the
                Transferee;

            

    

    

    
      	 	 	
              (ii)

            	
              conflict
                with or result in a breach of or violate any of the terms, conditions
                or
                provisions of any law, judgment, order, injunction, decree, regulation
                or
                ruling of any Court or governmental authority, domestic or foreign,
                to
                which the Transferee is subject, or constitute or result in a default
                under any agreement, contract or commitment to which the Transferee
                is a
                party;

            

    

    

    
      	 	 	
              (iii)

            	
              give
                to any party the right of termination, cancellation or acceleration
                in or
                with respect to any agreement, contract or commitment to which the
                Transferee is a party;

            

    

    

    
      	 	 	
              (iv)

            	
              give
                to any government or governmental authority, or any municipality
                or any
                subdivision thereof, including any governmental department, commission,
                bureau, board or administration agency, any right of termination,
                cancellation or suspension of, or constitute a breach of or result
                in a
                default under, any permit, license, control or authority issued to
                the
                Transferee which is necessary or desirable in connection with the
                conduct
                and operations of its business and the ownership or leasing of its
                business assets; or

            

    

    

    
      	 	 	
              (v)

            	
              constitute
                a default by the Transferee, or any event which, with the giving
                of notice
                or lapse of time or both, might constitute an event of default, under
                any
                agreement, contract, indenture or other instrument relating to any
                indebtedness of the Transferee which would give any party to that
                agreement, contract, indenture or other instrument the right to accelerate
                the maturity for the payment of any amount payable under that agreement,
                contract, indenture or other
                instrument;

            

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    
      	 	
              (i)

            	
              neither
                this Agreement nor any other document, certificate or statement furnished
                to the Transferor by or on behalf of the Transferee in connection
                with the
                transactions contemplated hereby knowingly or negligently contains
                any
                untrue or incomplete statement of material fact or omits to state
                a
                material fact necessary in order to make the statements therein not
                misleading; 

            

    

    

    
      	
            	(j)	
              the
                Transferee is not aware of any fact or circumstance which has not
                been
                disclosed to the Transferor which should be disclosed in order to
                prevent
                the representations, warranties and covenants contained in this section
                from being misleading or which would likely affect the decision of
                the
                Transferor to enter into this Agreement;
                and

            

    

    

    
      	(k)  	
              the
                Transferee will employ good faith, due diligence, and best efforts
                to
                perform its obligations of this Agreement and will enter into such
                additional or collateral agreements as may be reasonably required
                to
                effect and complete the objects and intent of this
                Agreement.

            

    

    

    
      	(l)  	
              The
                Shares represented in this transaction are duly issued and fully
                paid,
                valid, and non-assessable.

            

    

    

    

    5.2  Continuity
      of the Representations, Warranties and Covenants by the
      Transferee.
      The
      representations, warranties and covenants of the Transferee contained in this
      Article, or in any certificates or documents delivered pursuant to the
      provisions of this Agreement or in connection with the transactions contemplated
      hereby, will be true at and as of the Effective Date. Notwithstanding any
      investigations or inquiries made by the Transferor or by the Transferor’s
      respective professional advisors prior to the Effective Date, or the waiver
      of
      any condition by the Transferor, the representations, warranties and covenants
      of the Transferee contained in this Article shall survive the Effective Date
      and
      shall continue in full force and effect for a period of twelve (12) months
      from
      the Effective Date; provided, however, that the Transferee shall not be
      responsible for the breach of any representation, warranty or covenant of the
      Transferee contained herein caused by any act or omission of the Transferor.
      In
      the event that any of the said representations, warranties or covenants are
      found by a Court of competent jurisdiction to be incorrect and such
      incorrectness results in any loss or damage sustained, directly or indirectly,
      by the Transferor, then the Transferee will pay the amount of such loss or
      damage to the Transferor within 30 calendar days of receiving notice of judgment
      therefor; provided that the Transferor will not be entitled to make any claim
      unless the loss or damage suffered may exceed the amount of
      $10,000.

     

    

    Article
      6

    OBTAINING
      APPROVAL

    

    
       

        6.1     ApprovalThe
          Transferor shall, prior to closing, obtain the requisite approval to effect
          the
          terms contemplated within this agreement, and to obtain waivers, consents,
          and
          rights of first refusal as required under the agreement as set out in Schedule
          “A”. 

      

    

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Article
      7

    ADDITIONAL
      TERMS

    

    

    7.1  Due
      Diligence.
      Each of
      the Parties hereto may conduct such further due diligence examination of the
      other Parties hereto as it deems appropriate. In that regard the Parties agree
      that each shall have full and complete access to the other Parties’ books,
      records, financial statements and other documents, articles of incorporation,
      by-laws, minutes of Board of Directors’ meetings and its committees, investment
      agreements, material contracts and as well such other documents and materials
      as
      the Parties hereto, or their respective counsel, may deem reasonable and
      necessary to conduct an adequate due diligence investigation of each Party,
      its
      respective operations and financial condition prior to the Closing.

    

    

    7.2  Opinions,
      Reports and Advice of the Transferor.
      The
      Transferor hereby acknowledges and agrees that all written and oral opinions,
      reports, advice and materials provided by the Transferor to the Transferee
      in
      connection with the Assets hereunder are intended solely for the Transferee’s
      benefit and for the Transferee’s use only, and that any such written and oral
      opinions, reports, advice and information are the exclusive property of the
      Transferee. In this regard the Transferor hereby covenants and agrees that
      the
      Transferee may utilize any such opinion, report, advice and materials for any
      other purpose whatsoever and, furthermore, may reproduce, disseminate, quote
      from and refer to, in whole or in part, at any time and in any manner, any
      such
      opinion, report, advice and materials in its sole and absolute
      discretion.

    

    7.3  Additional
      Documents and Acts by Transferor.
      The
      Transferor will also cause or deliver, or cause to be delivered, to the
      Transferee, at the times stipulated, the following:

    

    
      	 	
              (a)

            	
              upon
                the request of the Transferee, all documentation as may be necessary
                and
                as may be required by counsel for the Transferee, acting reasonably,
                to
                ensure that all of the Assets have been duly transferred, assigned
                and are
                registerable in the name of and for the benefit of the Transferee
                under
                applicable corporate laws and including, without limitation, all
                necessary
                deeds, conveyances, bills of sale, assurances, transfers, contract
                assignments, sales agreement assignments, development agreement
                assignments, royalty assignments, license assignments, manufacturing
                agreement assignments, supply agreement assignments, consents and
                any
                other documents necessary or reasonably required effectively to transfer
                all of the Assets and the business of the Assets to the Transferee
                with a
                good and marketable title, free and clear of all mortgages, liens,
                charges, pledges, claims, security interests or encumbrances
                whatsoever;

            

    

    

    
      	 	
              (b)

            	
              within
                10 days of the Closing Date, a certified copy of the resolutions
                of the
                directors and shareholders of the Transferor authorizing the transfer
                by
                the Transferor to the Transferee of all of the Assets in accordance
                with
                the terms of this Agreement;

            

    

    

    
      	 	
              (c)

            	
              within
                30 days of the Closing Date, all necessary consents and approvals
                in
                writing to the completion of the transactions contemplated herein
                and
                including, without limitation, approval from all Regulatory Authorities
                having jurisdiction over the Transferor and the Assets or a certificate
                of
                counsel of the Transferor that no such consents are required;
                and

            

    

    

    
      	 	
              (d)

            	
              within
                30 days of the Closing Date all records, engineering specifications
                and
                reports, patents, books, and other documentation pertinent to the
                Assets
                and all molds, inventory, customer lists, supply contracts, manufacturing
                contracts, and all and every part of such matters pertaining to the
                Assets.

            

    

    

     

    
 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    Article
      8

    NON-DISCLOSURE

    

    8.1  Non-disclosure.
      The
      Parties hereto, for themselves, their officers, directors, shareholders,
      consultants, employees and agents, agree that they each will not disseminate
      or
      disclose, or knowingly allow, permit or cause others to disseminate or disclose
      to third parties who are not subject to express or implied covenants of
      confidentiality, without the other Parties’ express written consent, either: (i)
      the fact or existence of this Agreement or discussions and/or negotiations
      between them involving, inter
      alia,
      possible business transactions; (ii) the possible substance or content of those
      discussions; (iii) the possible terms and conditions of any proposed
      transaction; (iv) any statements or representations (whether verbal or written)
      made by either Party in the course of or in connection with those discussions;
      or (v) any written material generated by or on behalf of any Party and such
      contacts, other than such disclosure as may be required under applicable
      securities legislation or regulations, pursuant to any order of a Court or
      on a
“need to know” basis to each of the Parties’ respective professional advisors.
      Disclosure will be required to the other parties as set out in the agreements
      as
      set out in Schedule “A”.

    

    

    Article
      9

    PROPRIETARY
      INFORMATION

    

    9.1  Confidential
      Information.
      Each
      Party hereto acknowledges that any and all information which a Party may obtain
      from, or have disclosed to it, about the other Parties constitutes valuable
      trade secrets and proprietary confidential information of the other Parties
      (collectively, the “Confidential
      Information”).
      No
      such Confidential Information shall be published by any Party without the prior
      written consent of the other Parties hereto, however, such consent in respect
      of
      the reporting of factual data shall not be unreasonably withheld, and shall
      not
      be withheld in respect of information required to be publicly disclosed pursuant
      to applicable securities or corporation laws. Furthermore, each Party hereto
      undertakes not to disclose the Confidential Information to any third party
      without the prior written approval of the other Parties and to ensure that
      any
      third party to which the Confidential Information is disclosed shall execute
      an
      agreement and undertaking on the same terms as contained herein.

    

    9.2  Impact
      of Breach of Confidentiality.
      The
      Parties hereto acknowledge that the Confidential Information is important to
      the
      respective businesses of each of the Parties and that, in the event of
      disclosure of the Confidential Information, except as authorized hereunder,
      the
      damage to each of the Parties hereto, or to either of them, may be irreparable.
      For the purposes of the foregoing sections the Parties recognize and hereby
      agree that a breach by any of the Parties of any of the covenants therein
      contained would result in irreparable harm and significant damage to each of
      the
      other Parties that would not be adequately compensated for by monetary award.
      Accordingly, the Parties agree that in the event of any such breach, in addition
      to being entitled as a matter of right to apply to a Court of competent
      equitable jurisdiction for relief by way of restraining order, injunction,
      decree or otherwise as may be appropriate to ensure compliance with the
      provisions hereof, any such Party will also be liable to the other Parties,
      as
      liquidated damages, for an amount equal to the amount received and earned by
      such Party as a result of and with respect to any such breach. The Parties
      also
      acknowledge and agree that if any of the aforesaid restrictions, activities,
      obligations or periods are considered by a Court of competent jurisdiction
      as
      being unreasonable, the Parties agree that said Court shall have authority
      to
      limit such restrictions, activities or periods as the court deems proper in
      the
      circumstances. In addition, the Parties further acknowledge and agree that
      all
      restrictions or obligations in this Agreement are necessary and fundamental
      to
      the protection of the respective businesses of each of the Parties and are
      reasonable and valid, and all defenses to the strict enforcement thereof by
      either of the Parties are hereby waived by the other Parties.

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Article
      10

    CLOSING
      AND TRANSFER OF INTEREST

    

    10.1  Closing. Closing
      shall be on or before Tuesday, May 17, 2006. Closing documentation shall be
      those documents as set forth in Article 7.

    

    10.2  Assumption
      of Obligations.
      Any
      transfer of all or any part of the Transferor’s licence shall be accompanied by
      the written agreement of any such transferee to assume the obligations of the
      Transferor under the licence and to be bound by the terms and conditions
      thereof.

    

    

    Article
      11

    FORCE
      MAJEURE

    

    11.1  Events.
      If any
      Party hereto is at any time prevented or delayed in complying with any
      provisions of this Agreement by reason of strikes, walk-outs, labour shortages,
      power shortages, fires, wars, acts of God, earthquakes, storms, floods,
      explosions, accidents, protests or demonstrations by environmental lobbyists
      or
      native rights groups, delays in transportation, breakdown of machinery,
      inability to obtain necessary materials in the open market, unavailability
      of
      equipment, governmental regulations restricting normal operations, shipping
      delays or any other reason or reasons beyond the control of that Party, then
      the
      time limited for the performance by that Party of its respective obligations
      hereunder shall be extended by a period of time equal in length to the period
      of
      each such prevention or delay.

    

    11.2  Notice.
      A Party
      shall, within seven calendar days, give notice to the other Party of each event
      of force
      majeure
      under
      section “14.1” hereinabove, and upon cessation of such event shall furnish the
      other Party with notice of that event together with particulars of the number
      of
      days by which the obligations of that Party hereunder have been extended by
      virtue of such event of force
      majeure
      and all
      preceding events of force
      majeure.

    

    

    Article
      12

    DEFAULT
      AND TERMINATION

    

    12.1  Default.
      The
      Parties hereto agree that if any Party hereto is in default with respect to
      any
      of the provisions of this Agreement (herein called the “Defaulting
      Party”),
      the
      non-defaulting Party (herein called the “Non-Defaulting
      Party”)
      shall
      give notice to the Defaulting Party designating such default, and within 10
      calendar days after its receipt of such notice, the Defaulting Party shall
      cure
      such default, or commence proceedings to cure such default and prosecute the
      same to completion without undue delay.

    

    

    

    

    Article
      13

    INDEMNIFICATION
      AND LEGAL PROCEEDINGS

    

    13.1  Indemnification.
      The
      Parties hereto agree to indemnify and save harmless the other Party hereto,
      including its respective affiliates and their respective directors, officers,
      employees and agents (each such party being an “Indemnified
      Party”)
      from
      and against any and all losses, claims, actions, suits, proceedings, damages,
      liabilities or expenses of whatever nature or kind, including any investigation
      expenses incurred by any Indemnified Party, to which an Indemnified Party may
      become subject by reason of an act or inaction of the other Party.

    

    13.2  Claim
      of Indemnification.
      The
      Parties hereto agree to waive any right they might have of first requiring
      the
      Indemnified Party to proceed against or enforce any other right, power, remedy,
      security or claim payment from any other person before claiming this
      indemnity.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    13.3  Notice
      of Claim.
      In case
      any action is brought against an Indemnified Party in respect of which indemnity
      may be sought against any of the Parties hereto, the Indemnified Party will
      give
      the relevant Party hereto prompt written notice of any such action of which
      the
      Indemnified Party has knowledge and such Party will undertake the investigation
      and defense thereof on behalf of the Indemnified Party, including the prompt
      retaining of counsel acceptable to the Indemnified Party affected and the
      payment of all expenses. Failure by the Indemnified Party to so notify shall
      not
      relieve any Party hereto of such Party’s obligation of indemnification hereunder
      unless (and only to the extent that) such failure results in a forfeiture by
      any
      Party hereto of substantive rights or defenses.

    

    13.4  Settlement.
      No
      admission of liability and no settlement of any action shall be made without
      the
      consent of the Indemnified Party affected, such consent not to be unreasonably
      withheld.

    

    13.5  Legal
      Proceedings.
      Notwithstanding that the relevant Party hereto will undertake the investigation
      and defense of any action, an Indemnified Party will have the right to employ
      separate counsel in any such action and participate in the defense thereof,
      but
      the fees and expenses of such counsel will be at the expense of the Indemnified
      Party unless:

    

    
      	 	
              (a)

            	
              such
                counsel has been authorized by the relevant Party
                hereto;

            

    

    

    
      	 	
              (b)

            	
              the
                relevant Party hereto has not assumed the defense of the action within
                a
                reasonable period of time after receiving notice of the
                action;

            

    

    

    
      	 	
              (c)

            	
              the
                named parties to any such action include that any Party hereto and
                the
                Indemnified Party shall have been advised by counsel that there may
                be a
                conflict of interest between any Party hereto and the Indemnified
                Party;
                or

            

    

    

    
      	 	
              (d)

            	
              there
                are one or more legal defenses available to the Indemnified Party
                which
                are different from or in addition to those available to any Party
                hereto.

            

    

    

    

      Article
        14
NOTICE

    

    14.1  Notice.
      Each
      notice, demand or other communication required or permitted to be given under
      this Agreement shall be in writing and shall be sent by prepaid registered
      mail
      addressed to the Party entitled to receive the same, or delivered to such Party,
      at the address for such Party specified above. The date of receipt of such
      notice, demand or other communication shall be the date of delivery thereof
      if
      delivered, or, if given by registered mail as aforesaid, shall be deemed
      conclusively to be the third calendar day after the same shall have been so
      mailed, except in the case of interruption of postal services for any reason
      whatsoever, in which case the date of receipt shall be the date on which the
      notice, demand or other communication is actually received by the
      addressee.

    

    14.2  Change
      of Address.
      Either
      Party may at any time and from time to time notify the other Party in writing
      of
      a change of address and the new address to which notice shall be given to it
      thereafter until further change.

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Article
      15

    GENERAL
      PROVISIONS

    

    15.1  Entire
      Agreement.
      This
      Agreement constitutes the entire agreement to date between the Parties hereto
      and supersedes every previous agreement, communication, expectation,
      negotiation, representation or understanding, whether oral or written, express
      or implied, statutory or otherwise, between the Parties hereto with respect
      to
      the subject matter of this Agreement.

    

    15.2  Enurement.
      This
      Agreement will enure to the benefit of and will be binding upon the Parties
      hereto, their respective heirs, executors, administrators and
      assigns.

    

    15.3  Schedules.
      The
      Schedules to this Agreement are hereby incorporated by reference into this
      Agreement in its entirety.

    

    15.4  Time
      of the Essence.
      Time
      will be of the essence of this Agreement.

    

    

    15.6  Applicable
      Law.
      The
      situs of this Agreement is Vancouver, British Columbia, and for all purposes
      this Agreement will be governed exclusively by and construed and enforced in
      accordance with the laws and Courts prevailing in the Province of British
      Columbia.

    

    15.7  Further
      Assurances.
      The
      Parties hereto hereby, jointly and severally, covenant and agree to forthwith,
      upon request, execute and deliver, or cause to be executed and delivered, such
      further and other deeds, documents, assurances and instructions as may be
      required by the Parties hereto or their respective counsel in order to carry
      out
      the true nature and intent of this Agreement.

    

    15.8  Currency.
      Unless
      otherwise stipulated, all payments required to be made pursuant to the
      provisions of this Agreement and all money amount references contained herein
      are in lawful currency of the U.S.A.

    

    15.9  Severability
      and Construction.
      Each
      Article, section, paragraph, term and provision of this Agreement, and any
      portion thereof, shall be considered severable, and if, for any reason, any
      portion of this Agreement is determined to be invalid, contrary to or in
      conflict with any applicable present or future law, rule or regulation in a
      final unappealable ruling issued by any court, agency or tribunal with valid
      jurisdiction in a proceeding to any of the Parties hereto is a party, that
      ruling shall not impair the operation of, or have any other effect upon, such
      other portions of this Agreement as may remain otherwise intelligible (all
      of
      which shall remain binding on the Parties and continue to be given full force
      and agreement as of the date upon which the ruling becomes final).

    

    15.10  Captions.
      The
      captions, section numbers and Article numbers appearing in this Agreement are
      inserted for convenience of reference only and shall in no way define, limit,
      construe or describe the scope or intent of this Agreement nor in any way affect
      this Agreement.

    

    15.11  Counterparts.
      This
      Agreement may be signed by the Parties hereto in as many counterparts as may
      be
      necessary and, if required, by facsimile, each of which so signed being deemed
      to be an original, and such counterparts together shall constitute one and
      the
      same instrument and notwithstanding the date of execution will be deemed to
      bear
      the Execution Date as set forth on the front page of this Agreement.

    

    15.12  Consents
      and Waivers.
      No
      consent or waiver expressed or implied by either Party hereto in respect of
      any
      breach or default by any other Party in the performance by such other of its
      obligations hereunder shall:

    

    
      	 	
              (a)

            	
              be
                valid unless it is in writing and stated to be a consent or waiver
                pursuant to this section;

            

    

    

    
      	 	
              (b)

            	
              be
                relied upon as a consent to or waiver of any other breach or default
                of
                the same or any other obligation;

            

    

    

    
      	 	
              (c)

            	
              constitute
                a general waiver under this Agreement;
                or

            

    

    

    
      	 	
              (d)

            	
              eliminate
                or modify the need for a specific consent or waiver pursuant to this
                section in any other or subsequent
                instance.

            

    

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

     

        IN
      WITNESS
      WHEREOF
      each of
      the Parties hereto has set their respective hands and seals in the presence
      of
      their duly authorized signatories as of the Execution Date determined
      hereinabove.

     

     

     

    
      	The COMMON SEAL of     	
              ) 

            	 
	BOOMERS’ CULTURAL DEVELOPMENT
              INC.	
              )  

            	 
	the Transferor herein, 	
              ) 

            	 
	was hereunto affixed in the presence
              of: 	
              ) 

            	
              (C/S) 

            
	 	
              ) 

            	 
	 	
              ) 

            	 
	_________________________________________________ 	
              ) 

            	 
	Authorized Signatory      	
              ) 

            	 

    

    

     

     
      
       

      
        	The COMMON SEAL of     	
                ) 

              	 
	KOKO PETROLEUM
                INC.	
                )  

              	 
	the Transferor herein, 	
                ) 

              	 
	was hereunto affixed in the presence
                of: 	
                ) 

              	
                (C/S) 

              
	 	
                ) 

              	 
	 	
                ) 

              	 
	_________________________________________________ 	
                ) 

              	 
	Authorized Signatory      	
                ) 

              	 

      

      

 

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      “A”

    

    

    THIS
      IS SCHEDULE “A”
      to the
      Asset Purchase Agreement dated the ___ day of _____________, 2006.

    

     

    

    The
      Assets

    

    
      	
              1.

            	
              Plan
                of Redevelopment Agreement between Texas M.O.R., Inc., JMT Resources,
                Ltd.
                and KOKO Petroleum, Inc. dated October 20,
                2005;

            

    

    

    
      	
              2.

            	
              Letter
                of Intent Agreement between Texas M.O.R., Inc., JMT Resources, Ltd.,
                KOKO
                Petroleum, Inc. and Nitro Petroleum, Inc. dated March 01,
                2006;

            

    

    

    
      	
              3.

            	
              Letter
                Agreement between First Canadian American Financial Services, Inc.
                and
                Armen Energy, LLC dated February 02, 2004;
                and

            

    

    

    
      	4.	
            	
              Letter
                Agreement between KOKO Petroleum, Inc. and REO Energy, Ltd. dated
                September 20, 2005.

            

    

    
 

    
 

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “B”

    

    LETTER
      OF INTENT

     

     

     

     

     

    
      
        
        

      

      
        16

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