Document:

ex10p2.htm

     

    
      

    

    Exhibit 10.2

    
      
        Southwest
Bank

        An M&I
Bank

         

      

      PROMISSORY NOTE

      

      
        	
                Principal

                $1,325,000.00

              	
                Loan Date

                01-02-2009

              	
                Maturity

                04-01-2009

              	
                Loan No

                12030954-22003

              	
                Call / Coll

                 

              	
                Account

                00000094289

              	
                Officer

                47417

              	
                Initials

              
	
                References in
      the boxes above are for Lender’s use only and do not limit the
      applicability of this document to any particular loan or
item.

                Any item
      above containing “***” has been omitted due to text length
      limitations.

              

      

      

      
        	
                Borrower:

              	
                Siboney Learning Group,
      Inc.

                Siboney
      Corporation

                325 Kirkwood Rd #
      300

                Saint Louis, MO
      63122-4042

              	
                Lender:

              	
                Southwest Bank, an M&I
      Bank

                St Louis Region Commercial
      Lending

                13205 Manchester
      Road

                Des Peres, MO
      63131

              

      

    

    
      	 	 	 
	
              Principal Amount:
      $1,325,000.00

            	
            	
              Date of Note: January 2,
      2009    

            

    

    

      PROMISE TO PAY. Siboney
Learning Group Inc.; and Siboney Corporation (“Borrower”) jointly and severally
promise to pay to Southwest Bank, an M&I Bank (“Lender”), or order, in
lawful money of the United States of America, the principal amount of One
Million Three Hundred Twenty-five Thousand & 00/100 Dollars
($1,325,000.00) or so much as may be outstanding, together with interest on the
unpaid outstanding principal balance of each advance. Interest shall be
calculated from the date of each advance until repayment of each
advance.

       

      PAYMENT. Borrower
will pay this loan in one payment of all outstanding principal plus all accrued
unpaid interest on April 1,
2009.
In addition, Borrower will pay regular monthly payments of all accrued unpaid
interest due as of each payment date, beginning February
1,
2009,
with all subsequent interest payments to be due on the same day of each month
after that. Unless otherwise agreed or required by applicable law, payments will
be applied to Accrued Interest, Principal, Late Charges, and Escrow. Borrower
will pay Lender at Lender’s address shown above or at such other place as Lender
may designate in writing.

       

      
        VARIABLE INTEREST
RATE.  The interest rate on this Note is subject to change from
time to time based on changes in an independent index which is the one month
British Bankers Association (BBA) LIBOR and reported by a major news service
selected by Lender (such as Reuters, Bloomberg or Moneyline
Telerate).  If BBA LIBOR for the one month period is not provided or
reported on the first day of a month because, for example, it is a weekend or
holiday or for another reason, the One Month LIBOR Rate shall be established as
of the preceding day on which a BBA LIBOR rate is provided for the one month
period and reported by the selected news service (the “Index”).  The
Index is not necessarily the lowest rate charged by Lender on its
loans.  If the Index becomes unavailable during the term of this loan,
Lender may designate a substitute index after notifying
Borrower.  Lender will tell Borrower the current Index rate upon
Borrower’s request.  The interest rate change will not occur more
often than each first day of each calendar month and will become effective
without notice to the Borrower.  Borrower understands that Lender may
make loans based on other rates as well.  The Index currently is 0.436% per
annum.  The interest rate to be applied to the unpaid principal
balance of this Note will be calculated as described in the “INTEREST
CALCULATION METHOD” paragraph using a rate of 3.500 percentage points over the
Index, adjusted if necessary for any minimum and maximum rate limitations
described below, resulting in an initial rate of 4.500% per annum based on a
year of 360 days.   NOTICE:  Under no circumstances
will the interest rate on this Note be less than 4.500% per annum or more than
the maximum rate allowed by applicable law.

         

        INTEREST
CALCULATION METHOD.  Interest on this Note is computed on a 365/360
basis; that is, by applying the ratio of the interest rate over a year of 360
days, multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding.  All Interest
payable under this Note is computed using this method.

         

        PREPAYMENT.  Borrower
agrees that all loan fees and other prepaid finance charges are earned fully as
of the date of the loan and will not be subject to refund upon early payment
(whether voluntary or as a result of default), except as otherwise required by
law.   Except for the foregoing, Borrower may pay
without penalty all or a portion of the amount owed earlier than it is due.
Early payments will not, unless agreed to by Lender in writing, relieve Borrower
of Borrower’s obligation to continue to make payments of accrued unpaid
interest. Rather, early payments will reduce the principal balance due. Borrower
agrees not to send Lender payments marked “paid in full”, “without recourse”, or
similar language. If Borrower sends such a payment, Lender may accept it without
losing any of Lender’s rights under this Note, and Borrower will remain
obligated to pay any further amount owed to Lender. All written communications
concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes “payment in full” of the amount owed
or that is tendered with other conditions or limitations or as full satisfaction
of a disputed amount must be mailed or delivered to: Southwest Bank,
an M&I Bank; St Louis Region Commercial Lending; 13205 Manchester
Road; Des Peres, MO 63131.

      

       

      LATE CHARGE. If a payment is
more than 10 days late, Borrower will be charged 5.000% of the unpaid portion of the regularly
scheduled payment.

       

      INTEREST AFTER
DEFAULT. Upon default,
including failure to pay upon final maturity, the interest rate on this
Note  shall be increased by adding a 3.000 percentage point margin (“Default Rate
Margin”). The
Default Rate Margin shall also apply to each succeeding interest rate change
that would have applied had there been no default. However, in no event will the
interest rate exceed the maximum interest rate limitations under applicable
law.

       

      DEFAULT. Each of the
following shall constitute an event of default (“Event of Default”) under this
Note.

       

      Payment Default. Borrower fails to
make any payment when due under this Note.

       

      Other Defaults. Borrower fails to
comply with or to perform any other term, obligation, covenant or condition
contained in this Note or in any of the related documents or to comply with or
to perform any term, obligation, covenant or condition contained in any other
agreement between Lender and Borrower.

      
        
          
            
               

              
              

            

            
              
              

              
                

              

            

            
              
              

              PROMISSORY NOTE

              
                	
                        Loan No:
      12030954-22003-

                      	
                        (Continued)

                      	
                        Page 2 

                      

              

              

               

            

          

        

      

      
        Default in Favor of Third
Parties. Borrower or any Grantor defaults under any loan,
extension of credit, security agreement, purchase or sales agreement, or any
other agreement, in favor of any other creditor or person that may materially
affect any of Borrower’s property or Borrower’s ability to repay this Note or
perform Borrower’s obligations under this Note or any of the related
documents.

         

      

      False Statements. Any warranty,
representation or statement made or furnished to Lender by Borrower or on
Borrower’s behalf under this Note or the related documents is false or
misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

       

      Insolvency. The dissolution or
termination of Borrower’s existence as a going business, the insolvency of
Borrower, the appointment of a receiver for any part of Borrower’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or
against Borrower.

       

    

    
      Creditor or Forfeiture
Proceedings. Commencement of
foreclosure or forfeiture proceedings, whether by judicial proceeding,
self-help, repossession or any other method, by any creditor of Borrower or by
any governmental agency against any collateral securing the loan. This includes
a garnishment of any of Borrower’s accounts, including deposit accounts, with
Lender. However, this Event of Default shall not apply if there is a good faith
dispute by Borrower as to the validity or reasonableness of the claim which is
the basis of the creditor or forfeiture proceeding and if Borrower gives Lender
written notice of the creditor or forfeiture proceeding and deposits with Lender
monies or a surety bond for the creditor or forfeiture proceeding, in an amount
determined by Lender, in its sole discretion, as being an adequate reserve or
bond for the dispute.

       

      Events Affecting
Guarantor. Any of the
preceding events occurs with respect to any guarantor, endorser, surety, or
accommodation party of any of the indebtedness or any guarantor, endorser,
surety, or accommodation party dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any guaranty of the indebtedness
evidenced by this Note.

       

      Change In
Ownership. Any change in
ownership of twenty-five percent (25%) or more of the common stock of
Borrower.

       

      Adverse Change. A material adverse
change occurs in Borrower’s financial condition, or Lender believes the prospect
of payment or performance of this Note is impaired.

       

      Insecurity. Lender in good
faith believes itself insecure.

       

      LENDER’S RIGHTS. Upon default,
Lender may declare the entire unpaid principal balance under this Note and
all accrued unpaid interest immediately due, and then Borrower will pay that
amount.

       

      ATTORNEYS’ FEES;
EXPENSES. Lender may hire or
pay someone else to help collect this Note if Borrower does not pay. Borrower
will pay Lender that amount. This includes, subject to any limits under
applicable law, Lender’s attorneys’ fees and Lender’s legal expenses whether or
not there is a lawsuit, including attorneys’ fees and expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or
injunction), and appeals. If not prohibited by applicable law, Borrower also
will pay any court costs, in addition to all other sums provided by
law.

       

      GOVERNING LAW. This Note will be governed by federal
law applicable to Lender and, to the extent not preempted by federal law, the
laws of the State of Missouri without regard to its conflicts of law provisions.
This Note has been accepted by Lender in the State of
Missouri.

       

      CHOICE OF VENUE. If there is a
lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of
the courts of St Louis County, State of Missouri.

       

      DISHONORED ITEM
FEE. Borrower will pay
a fee to Lender of $15.00 if Borrower makes a payment on Borrower’s loan and the
check or preauthorized charge with which Borrower pays is later
dishonored.

       

      RIGHT OF SETOFF. To the extent
permitted by applicable law, Lender reserves a right of setoff in all Borrower’s
accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts
Borrower may open in the future. However, this does not include any IRA or Keogh
accounts, or any trust accounts for which setoff would be prohibited by law.
Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on the debt against any and all such accounts, and, at
Lender’s option, to administratively freeze all such accounts to allow Lender to
protect Lender’s charge and setoff rights provided in this
paragraph.

       

      LINE OF CREDIT. This Note
evidences a revolving line of credit. Advances under this Note, as well as
directions for payment from Borrower’s accounts, may be requested orally or in
writing by Borrower or by an authorized person. Lender may, but need not,
require that all oral requests be confirmed in writing. Borrower agrees to be
liable for all sums either: (A) advanced in accordance with the instructions of
an authorized person or (B) credited to any of Borrower’s accounts with Lender.
The unpaid principal balance owing on this Note at any time may be evidenced by
endorsements on this Note or by Lender’s internal records, including daily
computer print-outs. Lender will have no obligation to advance funds under this
Note if: (A) Borrower or any guarantor is in default under the terms of this
Note or any agreement that Borrower or any guarantor has with Lender, including
any agreement made in connection with the signing of this Note;
(B) Borrower or any guarantor ceases doing business or is insolvent; (C)
any guarantor seeks, claims or otherwise attempts to limit, modify or revoke
such guarantor’s 

      
        
          
            
              
                 

              

              
                
                  

                

              

              
                
                

                PROMISSORY NOTE

                
                  	
                          Loan No:
      12030954-22003-

                        	
                          (Continued)

                        	
                          Page 3 

                        

                

                

                 

              

            

          

        

      

      guarantee of this Note or any other loan with Lender; (D) Borrower has
applied funds provided pursuant to this Note for purposes other than those
authorized by Lender; or (E) Lender in good faith believes itself
insecure.

       

      HEDGING
INSTRUMENTS. Obligations include, without limitation all obligations,
indebtedness and liabilities arising pursuant to or in connection with any
interest rate swap transaction, basis swap, forward rate transaction, interest
rate option, price risk hedging transaction or any similar transaction between
the Borrower and Lender.

      

        PRIOR NOTE.  This
promissory Note provides for the renewal or refinance of the existing debt
evidenced by the Promissory Note, dated July 23, 2002, in the original principal
amount of $1500000.00, as may have been modified, extended or
amended.  This Note is not intended to satisfy or extinguish the
underlying debt and obligation evidenced by the July 23, 2002 Promissory Note,
but rather set forth the terms and conditions on which such debt is being
renewed or refinanced.

         

      

      SUCCESSOR
INTERESTS. The terms of this
Note shall be binding upon Borrower, and upon Borrower’s heirs, personal
representatives, successors and assigns, and shall inure to the benefit of
Lender and its successors and assigns.

       

      
        GENERAL
PROVISIONS. If any part of
this Note cannot be enforced, this fact will not affect the rest of the Note.
Lender may delay or forgo enforcing any of its rights or remedies under this
Note without losing them. Each Borrower understands and agrees that, with or
without notice to Borrower, Lender may with respect to any other Borrower (a)
make one or more additional secured or unsecured loans or otherwise extend
additional credit; (b) alter, compromise, renew, extend, accelerate, or
otherwise change one or more times the time for payment or other terms of any
indebtedness, including increases and decreases of the rate of interest on the
indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to
perfect, and release any security, with or without the substitution of new
collateral; (d) apply such security and direct the order or manner of
sale thereof, including without limitation, any non-judicial sale permitted by
the terms of the controlling security agreements, as Lender in its discretion
may determine; (e) release, substitute, agree not to sue, or deal with any one
or more of Borrower’s sureties, endorsers, or other guarantors on any terms or
in any manner Lender may choose; and (f) determine how, when and what
application of payments and credits shall be made on any other indebtedness
owing by such other Borrower. Borrower and any other person who signs,
guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, and notice of dishonor. Upon any change in the terms
of this Note, and unless otherwise expressly stated in writing, no party who
signs this Note, whether as maker, guarantor, accommodation maker or endorser,
shall be released from liability. All such parties agree that Lender may renew
or extend (repeatedly and for any length of time) this loan or release any party
or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s
security interest in the collateral; and take any other action deemed necessary
by Lender without the consent of or notice to anyone. All such parties also
agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

      

    

    
       

      ORAL AGREEMENTS OR COMMITMENTS TO
LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT
INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS
OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE
CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S)) AND US (CREDITOR) FROM
MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH
MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE
STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN
WRITING TO MODIFY IT.

      

      JURY WAIVER. Lender
and Borrower hereby waive the right to any jury trial in any action, proceeding,
or counterclaim brought by either Lender or Borrower against the
other.

      

      PRIOR TO SIGNING THIS NOTE, EACH
BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE
VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE
NOTE.

      

      BORROWER ACKNOWLEDGES RECEIPT OF A
COMPLETED COPY OF THIS PROMISSORY NOTE.

      

      BORROWER:

    

    

    SIBONEY LEARNING
GROUP, INC.

    

    
      	
              By: /s/ William
      D. Edwards,
      Jr.                                                 
      

              William D.
      Edwards, President of

              Siboney
      Learning Group, Inc.

            	
              By:/s/ Timothy J.
      Tegeler                 
                                               
      

              Timothy J.
      Tegeler, Chief Executive Officer of 

              Siboney
      Learning Group, Inc.

            
	
               

            	
               

            
	
              
                By: /s/ Rebecca
      Braddock                                                        

                Rebecca
      Braddock, Secretary of

                Siboney
      Learning Group, Inc.

              

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
              SIBONEY
      CORPORATION

            	
               

            
	
               

            	
               

            
	
              By: /s/ William
      D. Edwards,
      Jr.                                                 
      

              William D.
      Edwards, Executive Vice President of

              Siboney
      Corporation

            	
              

                By:/s/ Timothy J.
      Tegeler                 
                                               
      

                Timothy J.
      Tegeler, Chief Executive Officer of 

                Siboney
      Corporation

              

            
	
               

            	
               

            
	
              
                
                  By: /s/ Rebecca
      Braddock                                                        

                  Rebecca
      Braddock, Secretary of

                  Siboney
      CorporationExhibit 10.1

                                  PAUL G. LAIRD

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement"), effective as of the 1st day of
July 2008, is between New Frontier Energy, Inc., a Colorado corporation with its
principal place of business located at 1789 W. Littleton Blvd., Littleton,
Colorado 80120 (the "Company") and Paul G. Laird (the "Employee").

                                    RECITALS

     A.   The Company desires to be assured of the association and services of
          Employee for the Company.

     B.   Employee is willing and desires to be employed by the Company, and the
          Company is willing to employ Employee, upon the terms, covenants and
          conditions hereinafter set forth.

     C.   The Employee and the Company wish to cancel the employment agreement
          dated August 1, 2006 (the "Previous Employment Agreement") in its
          entirety and substitute this Agreement.

     NOW THEREFORE, in consideration of the Recitals and the mutual covenants,
promises, agreements, representations and warranties contained in this
Agreement, the parties hereby accept employment on the terms and conditions
hereinafter set forth.

     1. Employment. The Company hereby employs Employee as its President and
Chief Executive Officer of the Company.

     2. Term. The term of this Agreement shall be for a period of three (3)
years effective as of July 1, 2008 and ending on June 30, 2011 (the "Initial
Term"), unless terminated earlier pursuant to Section 10 below; provided,
however, that Employee's obligations in Section 11 below shall continue in
effect after such termination. This Agreement shall be automatically renewed for
successive one-year periods (the "Renewal Term") unless, at least 60 days prior
to the expiration of the Initial Term or any Renewal Term, either party gives
written notice to the other party specifically electing to terminate this
Agreement at the end of the Initial Term or any such Renewal Term.

<PAGE>
     3. Compensation.

     (a) Base Salary. For all services rendered by Employee under this
Agreement, the Company shall pay Employee a base salary of Two Hundred Fifty
Thousand Dollars ($250,000) per year (the "Base Salary"). The Base Salary shall
be payable in equal, consecutive monthly installments. Payment of the Salary
shall be subject to the customary withholding tax and other employment taxes as
required with respect to compensation paid by a corporation to an employee. It
is expressly understood and agreed that the Base Salary may be increased upon
the approval of the Company's Compensation Committee (if such a committee
exists) or of the Board of Directors. Furthermore, the Base Salary shall be
increased, effective on the 1st day of July of each year, beginning on July 1,
2009, for increases in the cost of living, based either on (i) inflation as
measured the federal Consumer Price Index ("CPI"), or (ii) Ten Thousand Dollars
($10,000) per year, whichever is greater. To determine the amount of the
increase in Base Salary using the CPI method, the Base Salary shall be
multiplied by a fraction, the numerator of which shall be the CPI most recently
published on the month immediately preceding the date of the Base Salary
adjustment, and the denominator of which shall be the CPI in effect on the last
day in June of the immediately preceding year. The term "Base Salary" as used
herein shall refer to the Base Salary, as adjusted.

     (b) Bonus. In addition to the Base Salary, the Company shall pay Employee
such Bonus or Bonuses as the Board of Directors shall determine in their sole
discretion.

     4. Reimbursement. The Employee is authorized to incur reasonable expenses
for promoting the business of the Company, including his out-of-pocket expenses
for entertainment, travel and similar items. The Company shall reimburse the
Employee for all such expenses on the presentation by the Employee, from time to
time, of an itemized account of such expenditures in accordance with the
guidelines set forth by the Internal Revenue Service for travel and
entertainment.

     5. Duties. Employee is engaged as the President and Chief Executive Officer
of the Company. Employees' duties shall include, but not be limited to those
duties that are generally associated with the positions of President and Chief
Executive Officer of a company similarly situated to the Company.

     6. Employee's Devotion of Time. Employee shall devote such productive time,
ability, and attention to the business of the Company during the term of this
agreement, as employee deems necessary to accomplish the duties assigned to him
and to the promotion and forwarding of the business affairs of the Company, and
not to divert any business opportunities from the Company to himself or to any
other person or business entity. Such services shall be rendered at such other
place or places as the Company shall in good faith require or as the interest,
needs, business or opportunity of the Company shall require. The Company
understands that Employee has other commitments and will not function
exclusively as the Company's employee; however, it is expected that the Employee
will devote significant time to the business of the Company.

     7. Benefits. The Employee shall be entitled to receive any and all health,
insurance, disability or any other benefit, if and when a plan is adopted by the
Board of Directors for the benefit of its employees.

<PAGE>
     8. Vacation. The Employee shall be entitled thirty (30) days of paid
vacation each year (i.e., 6 weeks) and to be paid for each United States public
holiday that occurs during the business week, (i.e., Monday through Friday).
Employee's compensation shall be paid in full during his vacation and for each
public holiday. Employee at his option may carry-over unused vacation days to
subsequent years with the consent of the Board of Directors which shall not be
unreasonably withheld or request that the Company pay him for unused days as
additional compensation.

     9. Change of Control. If any time during the Initial Term or any Renewal
Term of this Agreement there is a change of control of the Company, as defined
below, and Employee's employment is terminated by the Company under Section
10.1(a), (b), (d) or (e) within the greater of one (1) year following the change
of control or the remaining term of this Agreement (the "Change of Control
Date"), the Company shall pay to Employee (a) the balance of all amounts due
from the Change of Control Date until the end of the Initial Term plus (b) an
amount equal to 2.99 times the sum of (i) his annual Base Salary as in effect on
the date of termination plus (ii) the amount of bonus paid in the prior year to
Employee, and (c) any other amounts due to Employee under any other provision of
this Agreement. This amount shall be paid to Employee in one lump sum as soon as
practicable, but in no event later than one hundred twenty (120) days, after the
date that Employee's employment is terminated. In addition to the lump sum
payment referenced in the preceding sentence, the Company shall pay to Employee
any accrued and unpaid bonuses as provided for in Section 3(b) at the same time
as the lump sum payment is made. . Additionally, the Company will maintain and
pay for Employee's health benefits for the remaining term of the contract. For
example, if the Change of Control Date was July 1, 2008, the amount paid to
would be equal to [$250,000 (Base Salary) + $0 (Bonus)] X 3 (years remaining on
contract)] + [$250,000 (Base Salary) + $180,000 (Bonus paid during fiscal year
ended February 28, 2008) X 2.99] or an aggregate of $2,035,700).

     If any payment or distribution by the Company to Employee is determined to
be subject to the excise tax imposed by Section 4999 of the Internal Revenue
Code, Employee is entitled to receive a payment on an after-tax basis equal to
the excise tax imposed. Employee is under no obligation to mitigate amounts
payable under these agreements.

         For purposes of this subsection, a change of control shall mean the
occurrence of one or more of the following three events:

     (1)  After the effective date of this Agreement, any person becomes a
          beneficial owner (as such term is defined in Rule 13d-3 promulgated
          under the Securities Exchange Act of 1934, as amended) directly or
          indirectly of securities representing 33% or more of the total number
          of votes that may be cast for the election of directors of the
          Company;

<PAGE>

     (2)  Within two years after a merger, consolidation, liquidation or sale of
          assets involving the Company, or a contested election of a Company
          director, or any combination of the foregoing, the individuals who
          were directors of the Company immediately prior thereto shall cease to
          constitute a majority of the Board of Directors; or

     (3)  Within two years after a tender offer or exchange offer for voting
          securities of the Company, the individuals who were directors of the
          Company immediately prior thereto shall cease to constitute a majority
          of the Board of Directors.

     10.1 Termination and Bases for Termination.

     (a) Employee's employment hereunder may be terminated at any time by mutual
agreement of the parties.

     (b) Should the Employee, by reason of illness or incapacity, be unable to
perform his job for a period of up to and including a maximum of two (2) months,
the compensation payable for and during such period under this Agreement shall
be unabated. The Board of Directors shall have the right to determine the
incapacity of the Employee for the purposes of this provision, and any such
determination shall be evidenced by its written opinion delivered to the
Employee. Such written opinion shall specify with particularity the reasons
supporting such opinion and be manually signed by at least a majority of the
Board. Should the Board of Directors determine the Employee incapable of the
performance of his duties, the Employee's compensation thereafter shall be
terminated.

     The Employee shall begin to receive full compensation pursuant to Section 3
of this Agreement upon his return to employment and regular discharge of his
full duties hereunder. Should the Employee be absent from his employment for
whatever cause for a continuous period of more than 180 calendar days, the
Company may terminate this Agreement and all obligations of the Company
hereunder shall cease upon such termination.

         (c) Employee's employment may be terminated by the Company "with
cause," effective upon delivery of written notice to Employee given at any time
(without any necessity for prior notice) if any of the following shall occur:

          (1) any action by Employee which would be grounds for termination
     under applicable law (currently covering any willful breach of duty, and
     habitual neglect of duty);

          (2) any material breach of Executive's obligations under this
     Agreement other than any such breach resulting from illness or incapacity
     or

<PAGE>
          (3) any material acts or events which inhibit Employee from fully
     performing his responsibilities to the Company in good faith, such as (i) a
     felony criminal conviction; (ii) any other criminal conviction involving
     Employee's lack of honesty or Employee's moral turpitude; (iii) drug or
     alcohol abuse; or (iv) acts of dishonesty, gross carelessness or gross
     misconduct.

     (d) Employee's employment may be terminated by the Company "without cause"
(for any reason or no reason at all) at any time by giving Employee 60 days
prior written notice of termination, which termination shall be effective on the
60th day following such notice. If Employee's employment under this Agreement is
so terminated, the Company shall (i) make a lump sum cash payment to Employee
within 10 days after termination is effective of an amount equal to (1)
Employee's Base Salary accrued to the date of termination; (2) unreimbursed
expenses accrued to the date of termination; (3) an amount equal to the greater
of (a) Employee's annual Base Salary (i.e., 12 months of Base Salary), or (b)
amounts remaining due to Employee as Base Salary (assuming that payments under
this Agreement were made until expiration of the Initial Term or if applicable
the Renewal Term), and (4) any other amounts due to Employee under any other
provision of this Agreement. For purposes of this provision, Employee's annual
Base Salary and the remaining portion of the term of the Agreement shall be
calculated as of the termination date. After the Company's termination of
Employee under this provision, the Company shall not be obligated to provide the
benefits to Employee described in Section 3 (except as may be required by law or
as otherwise provided for in this Agreement). In addition to the lump sum
payment referenced in this section, the Company shall pay to Employee the Bonus
provided for in Section 3(b) based upon the number of days in the year that
Employee was employed by the Company, within one hundred twenty days after the
end of the fiscal year in which Employee was terminated.

     (e) Employee may terminate his employment hereunder by giving the Company
60 days prior written notice, which termination shall be effective on the 60th
day following such notice. The Company shall not be obligated to compensate
Employee, his estate or representatives after any such termination. Further,
Employee shall not be entitled to any of the benefits described in Section 3
(except as provided by law) after such termination.

     10.2 Payment Upon Termination. Upon termination under Sections 10.1(a),
(b), (c) or (e), the Company shall pay to Employee within 10 days after
termination an amount equal to the sum of (1) Employee's Base Salary accrued to
the date of termination; (2) unreimbursed expenses accrued to the date of
termination, and (3) any other amounts due to Employee under any other provision
of this Agreement. The Company shall not be obligated to compensate Employee,
his estate or representatives after any such termination. Further, Employee
shall not be entitled to any of the benefits described in Section 3 (except as
provided by law) after such termination.

<PAGE>
     10.3 Dismissal from Premises. At the Company's option, Employee shall
immediately leave the Company's premises on the date notice of termination is
given by either Employee or the Company.

     11. Confidential Information. During the term of this Agreement, the
Employee will have access to certain confidential information and materials,
including but not limited to oil and gas property and lease information,
originated by the Company or disclosed to the Company by others under agreements
to hold the same confidential ("Confidential Information"). Confidential
Information further includes, but is not limited to, all technical, engineering,
property and lease information, financial, business practices, customer lists,
customer identities and commercial information heretofore or hereafter disclosed
or transmitted by the Company in any form and manner to the Employee or
otherwise received by the Employee, whether orally or in writing. Employee
acknowledges that Employee shall not either directly or indirectly use, disclose
or communicate to any person or entity any Confidential Information for any
purpose at all whether during or after the term of this Agreement, except to the
extent any such information becomes generally known to the public through no
fault of Employee. Furthermore, the terms of this provision shall survive the
Term or any Renewal Term of this Agreement, or any termination thereof and will
expire two years from the termination of this agreement.

     12. Miscellaneous.

     (a) Entire Agreement. This Agreement contains the entire agreement between
the Company and the Employee, regarding employment of the Employee. This
Agreement shall not be modified except by written agreement signed by both
parties.

     (b) Headings. The subject headings of the articles and sections contained
in this Agreement are included for convenience purposes only and shall not
control or affect the meaning, construction or interpretation of any provision
hereof.

     (c) Assigns. This Agreement shall be binding upon the Company and Employee,
their respective heirs, executors, legal representatives, successors and
assigns.

     (d) Notices. All notices, demands, elections, opinions or requests (however
characterized or described) required or authorized hereunder shall be deemed
given sufficiently if in writing and sent by overnight courier or by registered
or certified mail, return receipt requested and postage prepaid, in the case of
the Company:

                  New Frontier Energy, Inc.
                  1789 W. Littleton Blvd
                  Littleton, CO 80120

and in the case of the Employee:

                  Paul G. Laird
                  7430 S. Curtice Court
                  Littleton, CO 80120

<PAGE>

     (e) Remedies. Employee acknowledges that any failure to carry out an
obligation under this Agreement, or a breach by the Employee of any provision
herein, will constitute immediate and irreparable damage to the Company, which
cannot be fully and adequately compensated in money damages and which will
warrant preliminary and other injunctive relief, an order for specific
performance, and other equitable relief. Employee also understands that other
actions may be taken and remedies enforced against the Employee, including
termination of any other agreements the Employee may have with the Company.

     (f) Waiver and Severability. No waiver by either party of any breach or
default hereof by the other shall be deemed to be a waiver of any preceding or
succeeding breach or default hereof, and no waiver shall be operative unless the
same shall be in writing. Should any provision of this Agreement be declared
invalid by a court of competent jurisdiction, the remaining provisions hereof
shall remain in full force and effect regardless of such declaration.

     (g) This Agreement shall be subject to the exclusive jurisdiction of the
courts in Arapahoe County in the State of Colorado. The parties to this
Agreement agree that any breach of any term or condition of this Agreement shall
be deemed to be a breach occurring in the State of Colorado by virtue of a
failure to perform an act required to be performed in the State of Colorado and
irrevocably and expressly agree to submit to the jurisdiction of the courts in
Arapahoe County in the State of Colorado for the purpose of resolving any
disputes among the parties relating to this Agreement or the transactions
contemplated hereby. The parties irrevocably waive, to the fullest extent
permitted by law, any objection which they may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement, or any judgment entered by any court in respect hereof brought
in the State of Colorado, and further irrevocably waive any claim that any suit,
action or proceeding brought in the State of Colorado has been brought in an
inconvenient forum.

     (h) Counterparts. This Agreement may be executed in several counterparts,
and as to executed shall constitute one Agreement, binding on all parties
hereto, notwithstanding that all parties are not signatory as to other original
or the same counterpart. Facsimile signatures are acceptable.

     (i) Time. Time is of the essence.

<PAGE>
     (j) Governing Law. This Agreement has been entered into and shall be
construed and enforced in accordance with the laws of the State of Colorado,
without reference to the choice of law principles thereof.

                [REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY]

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement effective on
the day and year first above written.

THE COMPANY:                                 THE EMPLOYEE:

NEW FRONTIER ENERGY, INC.

By: /s/ Les Bates                            /s/ Paul G. Laird
    ---------------------                    -----------------------------------
    Les Bates, Secretary                     Paul G. Laird

<PAGE>

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