Document:

Ex. 10.1

                              FORBEARANCE AGREEMENT

         FORBEARANCE AGREEMENT, dated of as July 15, 2008 by and between GULF
COAST OIL & GAS, INC. (the "Company"), and YA GLOBAL INVESTMENTS, L.P.
(formerly, CORNELL CAPITAL PARTNERS, LP) ("YA Global"). All capitalized terms
used herein shall have the respective meanings assigned thereto in the
Transaction Documents (as defined below) unless otherwise defined herein.

                              W I T N E S S E T H:

         WHEREAS, the Company and YA Global have entered into certain financing
arrangements set forth on Schedule A attached hereto and referred to herein as
the "Transaction Documents" pursuant to which, YA Global is the holder of the
following secured convertible debentures (collectively, the "Debentures") issued
by the Company:

<TABLE>
<CAPTION>
<S>     <C>    <C>    <C>    <C>    <C>    <C>

------------------------------------------- ----------------------------------- --------------------------------------
          DEBENTURE DESCRIPTION                   PRINCIPAL OUTSTANDING              ACCRUED AND UNPAID INTEREST
------------------------------------------- ----------------------------------- --------------------------------------
10% Secured  Convertible  Debenture issued           USD $403,454.13                        $ 115,279.14
on February 1, 2006,  due February 1, 2009
in   the   face   amount   of    $500,000.
(Debenture No. CCP-1)
------------------------------------------- ----------------------------------- --------------------------------------
------------------------------------------- ----------------------------------- --------------------------------------
10% Secured  Convertible  Debenture issued                USD $0                             $ 55,027.61
on April 5,  2006,  due  April 5,  2009 in
the face  amount of  $500,000.  (Debenture
No. CCP-2)
------------------------------------------- ----------------------------------- --------------------------------------
</TABLE>

         The amounts referenced in this chart above are as of June 1, 2008 and
do not include any additional costs, charges, expenses, or liquidated damages.

         WHEREAS, the Company has breached the terms of the Transaction
Documents as set forth in the default letter dated March 17, 2008 (the "Existing
Defaults") a copy of which is attached hereto as Exhibit A; and

         WHEREAS, YA Global is willing to agree to forbear from exercising
certain of its rights and remedies on the terms and conditions specified herein;

         NOW, THEREFORE, in consideration of the foregoing, and the respective
agreements, warranties and covenants contained herein, the parties hereto agree,
covenant and warrant as follows:

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<PAGE>

1.       ACKNOWLEDGMENTS.

         a.    Acknowledgement of Obligations. The Company hereby acknowledges,
               confirms and agrees that as of the date hereof, the Company is
               indebted to YA Global under the Debentures and the Transaction
               Documents in the outstanding principal amount plus accrued and
               unpaid interest thereon set forth in the first Whereas clause
               above. In addition to the principal and interest set forth
               herein, all interest accrued and accruing hereafter and all
               liquidated damaged, fees, costs, expenses and other charges now
               or hereafter payable by the Company to YA Global under the
               Transaction Documents (collectively, the "Obligations"), are
               unconditionally owing by the Company to YA Global, without
               offset, defense or counterclaim of any kind, nature or
               description whatsoever.

         b.    Acknowledgement of Security Interests. The Company hereby
               acknowledges, confirms and agrees that YA Global has and shall
               continue to have valid, enforceable and perfected first-priority
               liens upon and security interests in the Pledged Property
               heretofore granted to YA Global pursuant to the Security
               Agreement between the Company and YA Global dated February 1,
               2006 or otherwise granted to or held by YA Global. The Company
               hereby acknowledges, confirms and agrees that YA Global has and
               shall continue to have valid, enforceable and perfected
               first-priority liens upon and security interests in the Pledged
               Property heretofore granted to YA Global pursuant to the Security
               Agreement between the Company and YA Global dated February 1,
               2006 or otherwise granted to or held by the YA Global.

         c.    Binding Effect of Documents. The Company hereto acknowledges,
               confirms and agrees that: (a) each of the Transaction Documents
               to which it is a party has been duly executed and delivered to YA
               Global by the Company, and each is in full force and effect as of
               the date hereof, (b) the agreements and obligations of the
               Company contained in such documents and in this Agreement
               constitute the legal, valid and binding obligations of the
               Company, enforceable against each in accordance with their
               respective terms, and the Company has no valid defense to the
               enforcement of such obligations, and (c) YA Global is and shall
               be entitled to the rights, remedies and benefits provided for in
               the Transaction Documents and applicable law, without setoff,
               defense or counterclaim of any kind, nature or descriptions
               whatsoever.

2.       FORBEARANCE IN RESPECT OF CERTAIN EVENTS OF DEFAULT.

         a.    Acknowledgement of Default. The Company hereby acknowledges and
               agrees that the Existing Defaults have occurred and are
               continuing, and each constitutes an Event of Default and entitles
               YA Global to exercise its rights and remedies under the
               Transaction Documents, applicable law or otherwise. The Company
               further represents and warrants that as of the date hereof no
               other Event of Default under the Transaction Documents exist. YA
               Global has not waived, presently do not intend to waive and may
               never waive such Existing Defaults and nothing contained herein
               or the transactions contemplated hereby shall be deemed to

                                       2
<PAGE>

               constitute any such waiver. The Company hereby acknowledges and
               agrees that YA Global has the presently exercisable right to
               declare the Obligations to be immediately due and payable under
               the terms of the Transaction Documents.

         b.    Forbearance.

               i.   In reliance upon the representations, warranties and
                    covenants of the Company contained in this Agreement, and
                    subject to the terms and conditions of this Agreement and
                    any documents or instruments executed in connection
                    herewith, YA Global agrees to forbear from exercising its
                    rights and remedies under the Transaction Documents or
                    applicable law in respect of or arising out of the Existing
                    Defaults, subject to the conditions, amendments and
                    modifications contained herein for the period (the
                    "Forbearance Period") commencing on the date hereof and
                    ending on September 30, 2008, so long as the following
                    conditions are met: (i) the Company strictly complies with
                    the terms of this Agreement, and (ii) there is no occurrence
                    or existence of any Event of Default, other than the
                    Existing Defaults.

               ii.  Upon the termination or expiration of the Forbearance
                    Period, the agreement of YA Global to forbear shall
                    automatically and without further action terminate and be of
                    no force and effect, it being expressly agreed that the
                    effect of such termination will be to permit YA Global to
                    exercise such rights and remedies immediately, including,
                    but not limited to, the acceleration of all of the
                    Obligations without any further notice, passage of time or
                    forbearance of any kind. This Agreement shall be deemed to
                    satisfy any and all requirements by YA Global to notify the
                    Company of the occurrence of the Existing Defaults and
                    satisfies any obligation by YA Global to give the Company an
                    opportunity to cure the Existing Defaults.

         c.    No Other Waivers; Reservation of Rights.

               i.   YA Global has not waived, is not by this Agreement waiving,
                    and has no intentions of waiving, any Events of Default
                    which may be continuing on the date hereof or any Events of
                    Default which may occur after the date hereof (whether the
                    same or similar to the Existing Defaults or otherwise), and
                    YA Global has not agreed to forbear with respect to any of
                    its rights or remedies concerning any Events of Default
                    (other than, during the Forbearance Period, the Existing
                    Defaults to the extent expressly set forth herein), which
                    may have occurred or are continuing as of the date hereof or
                    which may occur after the date hereof.

               ii.  Subject to Section 2(b) above (solely with respect to the
                    Existing Defaults), YA Global reserves the right, in its
                    discretion, to exercise any or all of its rights and
                    remedies under the Transaction Documents as a result of any
                    Events of Default which may be continuing on the date hereof

                                       3
<PAGE>

                    or any Event of Default which may occur after the date
                    hereof, and YA Global has not waived any of such rights or
                    remedies, and nothing in this Agreement, and no delay on its
                    part in exercising any such rights or remedies, should be
                    construed as a waiver of any such rights or remedies.

3.       AMENDMENT OF WARRANTS. Pursuant to the terms and conditions of this
         Agreement, contemporaneously with the execution and delivery of this
         Agreement, the Company will amend each of the existing warrants
         (specifically Warrant No. CCP-001 dated February 1, 2006 ("Warrant No.
         CCP-001"), Warrant No. CCP-002 dated February 1, 2006 ("Warrant No.
         CCP-002"), Warrant No. CCP-003 dated February 1, 2006 ("Warrant No.
         CCP-003"), Debenture No. CCP-004 dated February 1, 2006 ("Warrant No.
         CCP-004") and Debenture No. CCP-005 dated February 1, 2006 ("Warrant
         No. CCP-005"), and collectively, the "Warrants") by executing an
         amendment (the "Warrant Amendments") in substantially the form attached
         hereto as Exhibit B for each of the Warrants. Pursuant to the Warrant
         Amendments, the following amendment will be made to the Warrants:

         a.    the Exercise Price (as defined in the Warrants) shall be $0.001.

         b.    the Expiration Date (as defined in the Warrants) shall be amended
               to provide for a date seven (7) years from the Issuance Date (as
               defined in the Warrants).

4.       WARRANTS. In consideration of the agreements set forth herein, the
         Company shall issue to YA Global five (5) warrants in substantially the
         form attached hereto as Exhibit C to purchase shares of Common Stock of
         the Company as follows, for a period of seven (7) years from the
         issuance date:

         a.    Warrant to purchase 2,500,000 shares, at an exercise price of
               $0.01 per share;

         b.    Warrant to purchase 2,333,333 shares at an exercise price of
               $0.015 per share.

         c.    Warrant to purchase 2,250,000 shares at an exercise price of
               $0.02 per share.

         d.    Warrant to purchase 2,400,000 shares at an exercise price of
               $0.025 per share.

         e.    Warrant to purchase 2,833,333 shares at an exercise price of
               $0.03 per share.

5.       AMENDMENT OF DEBENTURES. Pursuant to the terms and conditions of this
         Agreement, contemporaneously with the execution and delivery of this
         Agreement, the Company will amend each of the Debentures by executing
         an amendment (the "Debenture Amendments") in substantially the form
         attached hereto as Exhibit D for each Debenture. Pursuant to the
         Debenture Amendments, the following amendments will be made to the
         Debentures:

         a.    Interest will accrue on the outstanding principal balance of the
               Debentures at an annual rate equal to eighteen percent (18%) per
               annum effective as of June 1, 2008;

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<PAGE>

         b.    the Conversion Price as set forth in the Debentures shall be
               equal to the lesser of (a) the Fixed Conversion Price, or (b) an
               amount equal to seventy-five percent (75%) of the lowest volume
               weighted average price (the "VWAP") of the Common Stock as quoted
               by Bloomberg, LP during the ten (10) trading days immediately
               preceding the Conversion Date.

         c.    All conversion calculations shall be rounded to the nearest
               twelfth (12th) decimal, at the sole option of the holder.

6.       COVENANTS

         a.    COMMON STOCK OF THE COMPANY. The Company shall, within thirty
               (30) days of the date hereof, have filed the appropriate
               paperwork with the Nevada Secretary of State and the United
               States Securities and Exchange Commission and increased the
               authorized shares of Common Stock the Company to fifteen billion
               (15,000,000,000) and to provide for a par value of no par value
               per share. Failure by the Company to do so shall be considered an
               Event of Default.

         b.    FURTHER ASSURANCES. The Company shall, from and after the
               execution of this Agreement, execute and deliver to YA Global
               whatever additional documents, instruments, and agreements that
               YA Global may require in order to correct any document
               deficiencies, or to vest or perfect the Transaction Documents and
               the collateral granted therein more securely in YA Global and/or
               to otherwise give effect to the terms and conditions of this
               Agreement, and hereby authorize YA Global to file any financing
               statements (including financing statements with a generic
               description of the collateral such as "all assets"), and take any
               other normal and customary steps, YA Global deems necessary to
               perfect or evidence YA Global's security interests and liens in
               any such collateral.

         c.    NON-INTERFERENCE. From and after the termination of the
               Forbearance Period, the Company agrees not to interfere with the
               exercise by YA Global of any of its rights and remedies. The
               Company further agrees that it shall not seek to restrain or
               otherwise hinder, delay, or impair YA Global's efforts to realize
               upon any collateral granted to YA Global, or otherwise to enforce
               its rights and remedies pursuant to the Transaction Documents.
               The provisions of this Paragraph shall be specifically
               enforceable by YA Global.

         d.    CROSS DEFAULT. The Company hereby acknowledges and agrees that
               any default or Event of Default under this Agreement or under any
               Transaction Document shall constitute an Event of Default under
               each other Transaction Document.

7.       RELEASE. In exchange for the accommodations made by YA Global herein,
         the Company does hereby, on behalf of itself and its agents,
         representatives, attorneys, assigns, heirs, subsidiaries, executors and
         administrators (collectively, "Company Parties") RELEASE AND FOREVER
         DISCHARGE YA Global and its subsidiaries and its respective affiliates,
         parents, joint ventures, officers, directors, shareholders, interest
         holders, members, managers, employees, consultants, representatives,
         successors and assigns, heirs, executors and administrators

                                       5
<PAGE>

         (collectively, "Buyer Parties") from all causes of action, suits,
         debts, claims and demands whatsoever known or unknown, at law, in
         equity or otherwise, which the Company Parties ever had, now has, or
         hereafter may have on or prior to the date hereof, and any claims for
         reasonable attorneys' fees and costs, and including, without
         limitation, any claims relating to fees, penalties, liquidated damages,
         and indemnification for losses, liabilities and expenses. The release
         contained in this Section is effective without regard to the legal
         nature of the claims raised and without regard to whether any such
         claims are based upon tort, equity, or implied or express contract. It
         is expressly understood and agreed that this release shall operate as a
         clear and unequivocal waiver by the Company Parties of any such claim
         whatsoever.

8.       PROVISIONS OF GENERAL APPLICATION

         a.    Effect of this Agreement. Except as modified pursuant hereto, no
               other changes or modifications to the Transaction Documents are
               intended or implied and in all other respects the Transaction
               Documents are hereby specifically ratified, restated and
               confirmed by all parties hereto as of the effective date hereof.
               To the extent of conflict between the terms of this Agreement and
               the other Transaction Documents, the terms of this Agreement
               shall control. The Transaction Documents and this Agreement shall
               be read and construed as one agreement.

         b.    Governing Law. This Agreement shall be interpreted according to
               the laws of the State of New Jersey and shall inure to the
               benefit of and be binding upon the parties hereto and their
               respective successors and assigns. Any notices, demands,
               consents, other writings or communications permitted or required
               by this Agreement shall be given in the manner and to the address
               as set forth in the Transaction Documents.

         c.    Mutual Waiver of Jury Trial. BECAUSE DISPUTES ARISING IN
               CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY
               AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND
               THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY
               (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
               DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.
               THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE
               JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL
               RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT
               TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT OR
               OTHERWISE BETWEEN FACTOR AND CLIENT ARISING OUT OF, CONNECTED
               WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
               BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
               OTHER FACTORING DOCUMENTS OR THE TRANSACTIONS RELATED THERETO.

                     [SIGNATURE PAGE IMMEDIATELY TO FOLLOW]

                                       6
<PAGE>

         IN WITNESS WHEREOF, this Agreement is executed and delivered as of the
day and year first above written.

                                   GULF COAST OIL & GAS, INC.

                                   By:
                                   Name:    Rahim Rayani
                                   Title:   President & CEO

                                   YA GLOBAL INVESTMENTS, L.P.

                                   BY:      YORKVILLE ADVISORS, LLC
                                   ITS:     INVESTMENT MANAGER

                                   By:
                                   Name:
                                   Title:

                                       7
<PAGE>

                                   SCHEDULE A

                              TRANSACTION DOCUMENTS

1.       Securities Purchase Agreement dated February 1, 2006, entered into by
         and between Gulf Coast Oil &Gas, Inc. (the "Company") and YA Global
         Investments, L.P. (formerly, Cornell Capital Partners, LP) (herein "YA
         Global") and Certain Wealth, Ltd. ("Certain Wealth") and TAIB Bank,
         B.S.C. ("TAIB"). YA Global, Certain Wealth, and TAIB are collectively
         referred to as the "Buyers".
2.       Investor Registration Rights Agreement dated February 1, 2006, entered
         into by and between the Company and the Buyers, as amended.
3.       Security Agreement dated February 1, 2006, entered into by and between
         the Company and the Buyers.
4.       Irrevocable Transfer Agent Instructions dated February 1, 2006 entered
         into by and between the Company, the Buyers, and Worldwide Stock
         Transfer, LLC.

                                       8
<PAGE>

                                    EXHIBIT A

                                 DEFAULT NOTICE

                                       9
<PAGE>

                                    EXHIBIT B

                          FORM OF AMENDMENT TO WARRANTS

                                       10
<PAGE>

                                    EXHIBIT C

                                 FORM OF WARRANT

                                       11
<PAGE>

                                    EXHIBIT D

                         FORM OF AMENDMENT TO DEBENTURES

                                       12Ex. 10.2

                               AMENDMENT NO. 1 TO

                               WARRANT NO. CCP-001

                           GULF COAST OIL & GAS, INC.

         THIS AMENDMENT NO. 1 TO WARRANT NO. CCP-001 (this "Amendment"), is
entered into by and between GULF COAST OIL & GAS, INC., a Nevada corporation
(the "Company"), and the undersigned Holder (the "Holder").

         WHEREAS:

         A. The Company previously executed and delivered Warrant No. CCP-001
(the "Warrant") to the Holder.

         B. The Company and the Holder desire to amend the Warrant as more fully
described herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Holder hereby agree as follows:

         1. AMENDMENT OF SECTION 1(b)(vi). Section 1(b)(vi) of the Warrant is
hereby deleted in its entirety and replaced with the following:

                  "(vi) "Expiration Date" means the date seven (7) years from
                  the Issuance Date of this Warrant or, if such date falls on a
                  Saturday, Sunday or other day on which banks are required or
                  authorized to be closed in the City of New York or State of
                  New York or on which trading does not take place on the
                  Principal Exchange or automated quotation system on which the
                  Common Stock is traded (a "Holiday"), the next date that is
                  not a Holiday."

         2. AMENDMENT OF SECTION 1(b)(xiii). Section 1(b)(xiii) of the Warrant
is hereby deleted in its entirety, and replaced with the following:

                  "(xiii) "Warrant Exercise Price" shall be $0.001 or as
                  subsequently adjusted as provided in Section 8 hereof."

         3. EFFECT ON OTHER TERMS. This Amendment shall be deemed effective as
of June 1, 2008, as if entered into on such date. All other terms set forth in
the Warrant shall remain unchanged and this Amendment and the Agreement shall be
deemed a single integrated instrument for all purposes.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       2
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to
Warrant No. CCP-001 to be duly executed as of day and year first above written.

                                      COMPANY:
                                      GULF COAST OIL & GAS, INC.

                                      By:
                                      Name:    Rahim Rayani
                                      Title:   President & CEO

                                      AGREED AND ACKNOWLEDGED:

                                      HOLDER:
                                      YA GLOBAL INVESTMENTS, L.P.
                                      By:  Yorkville Advisors, LLC
                                      Its:   Investment Manager

                                               By: ____________________________
                                               Name: __________________________
                                               Title: __________________________

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