Document:

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                                                                   EXHIBIT 10.13

OPTION TO PURCHASE
MINERAL LEASE

Prepared by:

    Craig R. Hedin
    Attorney at Law
    P.O. Drawer C
    Mt. Vernon, Illinois 62864

                        OPTION TO PURCHASE MINERAL LEASE

      This option to purchase Mineral Lease (herein "this Option") is made this
8th day of June, 2004, by and between the, COUNTY OF MARION ILLINOIS, with and
address of Marion County Courthouse, 100 East Main St., Salem, Illinois 62881
(herein "Optionor") and BPI INDUSTRIES, INC., of 501 East DeYoung Street,
Marion, Illinois, 62959, (herein "BPI").

      WHEREAS, Optionor may own all or a portion of the coal bed methane, coal
seam gas, all gas desorbed from coal or captured in the coal seam, and all gas
in abandoned mines, void spaces, and zones in communication therewith, as to the
following described lands (herein "Coal Bed Gas"); containing approximately
17,882 acres more or less, and,

                   SEE ATTACHED EXHIBIT FOR LEGAL DESCRIPTIONS

      WHEREAS, Optionor may own all or a portion of the oil, liquid
hydrocarbons, all gases and their constituent products (except Coal Bed Gas as
defined herein) as to the following described lands (herein "Oil and Gas"); and,

      WHEREAS, for purposes of this Option, the Coal Bed Gas and the Oil and Gas
may be referred to jointly as ("the Minerals"); and,

      WHEREAS, in addition to owning a possible interest in the Minerals,
Optionor would also own the right to explore, drill for, and produce the
Minerals; and,

      WHEREAS, Optionor desires to grant to BPI and BPI desires to receive from
Optionor, an Option to purchase a Mineral Lease as to Optionor's interest in the
Minerals; and,

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      WHEREAS, in the event the Option is timely exercised by BPI, the Option
shall be consummated by the execution and delivery by Optionor to BPI of a
Mineral Lease in the form as attached hereto as Exhibit A (herein the "Mineral
Lease"); and,

      WHEREAS, Optionor and BPI desire to enter into this writing for purposes
of setting forth the terms and conditions of this Option.

      NOW, THEREFORE, for and in consideration of the foregoing recitals, the
mutual benefits to be derived herefrom and One Dollar and other valuable
consideration, Optionor and BPI agree as follows:

      1. OPTION.

            For and in consideration of THIRTY THOUSAND DOLLARS ($30,000.00),
herein "the Option Payment"), the receipt of which is hereby acknowledged,
Optionor gives and grants to BPI the exclusive option to obtain a Mineral Lease
corresponding to Optionor's interest in the Minerals pursuant to and upon the
terms and conditions as set forth herein. In the event the Option is exercised,
the Option Payment shall be applied to any amounts that may be due and owing
pursuant to the Mineral Lease.

      2. PERIOD OF OPTION.

            This Option may be exercised by BPI by giving notice of the exercise
thereof (herein the "Option Notice") to Optionor at any time during the period
from the date of this Option until the 8th day of June, 2007, at 12:00 o'clock,
P.M., (herein the "Exercise Period"). Notice shall be given and may be sent by
personal delivery or by depositing the same in the United States Mail addressed
to Optionor, postage prepaid and registered or certified with return receipt
requested with notice being deemed to have been given and received upon the date
of BPI's posting in the United States Mail as shown on the postal receipt or the
date of personal delivery if delivered in this manner. In the alternative, the
notice may be given by prepaid courier service addressed to Optionor and
requiring the signature of Optionor upon delivery with said notice being deemed
to have been given and received upon the date of BPI's delivery to the courier
service as shown on the signed receipt of the courier service.

      3. MINERAL LEASE.

            Contemporaneous with the execution of this Option, Optionor executes
the Mineral Lease in the form as set forth on Exhibit A attached hereto. In the
event this Option is timely exercised as provided herein, BPI shall execute the
Mineral Lease and said lease shall be deemed delivered to BPI and shall cover
and be effective as to all interest of Optionor in the Minerals as of the date
of this Option.

      4. REVIEW DURING EXERCISE.

            During the Exercise Period of the Option, Optionor will cooperate
with BPI for purposes of determining the title of Optionor as to the Minerals
and for purposes of conducting field tests as to the Minerals. Optionor, upon
request, shall provide to BPI all title materials corresponding to Optionor's
interest in the Minerals. Optionor shall also cooperate with BPI in providing
access to the Minerals for purposes of conducting any test deemed necessary by
BPI to determine the extent and nature of the Minerals. Such testing may include
the utilization of the surface corresponding to the Minerals, the drilling for
core samples or for the conducting of

                                      -2-

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seismic, and other operations pertaining thereto. BPI shall indemnify and hold
Optionor harmless from any claim for damages that may be asserted against
Optionor with respect to BPI's operations pursuant to the matters set forth in
this paragraph.

      5. MEMORANDUM OF OPTION:

            Optionor and BPI shall execute a memorandum of this option and
record the same in the County Clerk and Recorder's Office in the county where
the Minerals are located. All parties dealing with Optionor with respect to the
Minerals shall deal and take any interest subject to the rights of BPI and the
obligations of Optionor as set forth herein.

      6. SUCCESSION OF ASSIGNMENT.

            This Option and the Mineral Lease resulting from the exercise
thereof shall be binding upon and inure to the benefit of the parties hereto
together with their successors and assigns. All rights of the parties under this
Option may be assigned without restriction but notice of such assignment should
be given in writing to the other party.

      EXECUTED the day and year above written.

                                                        OPTIONOR

                                                      MARION COUNTY, ILLINOIS

                                                      BY /s/ Sam Nall
                                                         -----------------------
                                                         Its Board Chairman

                                                        OPTIONEE

                                                      BPI INDUSTRIES, INC.

                                                      BY /s/ James Azlein
                                                         -----------------------
                                                         Its President

                                      -3-

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MINERAL LEASE

Prepared by:

   BPI Industries, Inc.
   501 East DeYoung Street
   Marion, Illinois 62959

                                  MINERAL LEASE

      This Mineral Lease (herein "this Lease") is made and entered into this
______ day of ____________, 200__, by and between COUNTY OF MARION, ILLINOIS,
with the address of Marion County Courthouse, 100 East Main St., Salem, Illinois
(herein the "Lessor"), and BPI INDUSTRIES, INC., of 501 East DeYoung Street,
Marion, Illinois 62959, (herein the "Lessee").

      THIS INDENTURE WITNESSETH:

      1. The Lessor, for and in consideration of Ten Dollars and other valuable
consideration, the receipt of which is hereby acknowledged, and for and in
consideration of the covenants and agreements herein provided on the part of the
Lessee, has granted, demised, leased, and let, and by these presents does grant,
demise, lease and let unto Lessee, all of Lessor's title and interest, but only
to the extent in fact actually legally owned or held by Lessor, in the Coal Bed
Gas (as herein defined) and the Oil and Gas (as herein defined) underlying the
following described lands and containing approximately 17,882 acres more or
less:

      See Attached Exhibit For Legal Descriptions

      "Coal Bed Gas" shall mean herein all coal bed methane, coal seam gas, all
gas desorbed from coal or captured in the coal seam, all gas produced from
abandoned mines, void spaces, and zones in communication therewith and all
associated hydrocarbons contained therein, with the right to investigate,
explore, drill, operate, produce, save, take care of, treat, process, and
transport, and market the Coal Bed Gas.

      "Oil and Gas" shall mean all oil, liquid hydrocarbons, gases, and their
constituent produces except for Coal Bed Gas together with the right to
investigate, explore, drill, operate, produce, save, take care of, treat,
process, and transport and market the Oil and Gas.

      Lessor or its assigns hereby excludes and expressly reserves the right to
explore for, mine, operate, produce, remove or market coal and other hard
minerals.

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      It is agreed that the right of Lessor or its assigns to explore for, mine,
operate, produce, remove and market coal or other hard minerals shall take
precedence and that BPI's rights hereunder shall be subordinate to those mining
rights. BPI's operations shall not interfere with any operations by Lessor or
it's assigns with respect to the coal and other hard minerals.

      For purposes of this lease, Coal Bed Gas and Oil and Gas may jointly be
referred to as "Minerals".

      2. For the same consideration as set forth above, Lessor grants, demises,
leases, and lets to Lessee the right (a) to use the seismograph and other
geophysical and geological methods of exploration; (b) to inject gas, water, and
other fluids and air into the subsurface strata; (c) to lay pipelines, establish
and utilize facilities for the disposition of produced substances; (d) to build
roads, bridges, tanks, utility lines, power stations and other structures; (e)
to undertake recovery by primary and secondary or other methods; (f) to have the
right of ingress and egress as to lands described herein or other lands under
lease to Lessee; and (g) to utilize the surface to the extent of Lessor's title
for all purposes as described herein.

      3. This Lease shall and does include all lands and interest therein
contiguous to or appurtenant to the lands specifically described herein, and
owned or claimed by Lessor including all interest in which Lessor has a
preferential right of acquisition or acquires by reversion or otherwise, whether
or not specifically described herein. This Lease shall also include all lands
underlying all alleys, streets, roads or highways and if the land is riparian
to, bounds, or embraces within its boundaries a stream, lake, or other body of
water, then all of Lessor's interest in the lands under said bodies of water and
all area now or hereafter added by accretion. This Lease shall cover all
interest in the lands covered hereby now owned or hereafter vested in or claimed
by Lessor.

      4. This Lease shall remain in force for a primary term of five (5) years
from the date hereof and as long thereafter as Minerals, or any of them, are
being produced from the lands described herein or land with which said land is
pooled or unitized.

      5. If operations for the exploration of Minerals are not commenced on the
lands described herein or on land pooled therewith on or before one year from
the date of this Lease, Lessee shall pay or tender to Lessor an advance royalty
computed based upon 50 cents per net acre of Coal Bed Gas interest (with
ownership based on coal record title) and 50 cents per net acre of Oil and Gas
interest (with ownership based on oil and gas record title) owned by Lessor
which shall cover the privilege of deferring commencement of such operations for
a period of 12 months. In like manner and upon like payments or tenders on an
annual basis thereafter, the commencement of said operations may be further
deferred for successive periods of the same number of months, each during the
primary term. Payment or tender of the advance royalty shall be made to the
Lessor at the following address:

      County of Marion, Illinois
      100 East Main St.
      Salem, Illinois  62881

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The payment or render of the advance royalty may be made by check, draft, or
other means of payment and mailed or delivered to Lessor or either Lessor, if
more than one, on or before the advance royalty payment date. Notwithstanding
the death of the Lessor or Lessor's successors in interest, the payment or
tender of advance royalty in the manner provided herein shall be binding on the
successors and assigns of the Lessor or Lessor's successors in interest. All
advance royalties paid by Lessee shall be recouped from actual royalties which
may be due and owing to Lessor and which royalties correspond to production.

      6. If, prior to the discovery of Minerals, or any of them, on the lands
described herein or on land pooled therewith, Lessee should drill and abandon a
dry hole or holes thereon, or if, after discovery of Minerals, or any of them,
the production thereof should cease from any cause for 120 consecutive days,
this Lease shall not terminate if Lessee commences additional drilling or
reworking operations within 120 days thereafter or (if it be within the primary
term) commences or resumes the payment or tender of advance royalties on or
before the advance royalty paying date next ensuing after the expiration of 12
months from the date of completion and abandonment of said dry hole or holes or
the cessation of production as defined herein. If at the expiration of the
primary term, Minerals, or any of them, are not being produced on the lands
described herein or land pooled therewith but Lessee is then engaged in
operations for drilling or reworking of any well or wells thereon, this Lease
shall remain in full force so long as such operations or said additional
operations are commenced and prosecuted, (whether on the same or successive
wells) with no cessation of more than 120 consecutive days and if they result in
production, so long thereafter as Minerals or any of them are produced from the
lands described herein or lands pooled therewith.

      7. The Lessee shall pay to the Lessor the following royalties:

            (a)   One-eighth (1/8) of the amount realized by Lessee from the
                  sale of Coal Bed Gas.

            (b)   One-eighth (1/8) of the oil and liquid hydrocarbons within the
                  Oil and Gas produced and saved with the same to be delivered
                  at the well or to the credit of the lessor in the pipeline to
                  which a well may be connected, based upon Lessor's ownership
                  of the oil within the Oil and Gas as to the lands described
                  herein.

            (c)   The market value at the mouth of the well of one-eighth (1/8)
                  of the gas within the Oil and Gas sold or used or one-eighth
                  (1/8) of the amount realized from the sale thereof at the
                  well, based upon Lessor's ownership of the gas within the Oil
                  and Gas as to the lands described herein.

      8. If at any time there is a well or wells on the lands which are capable
of producing Coal Bed Gas or gas within Oil and Gas and such well or wells are
shut in, and if this Lease is not being continued in force by some other
provision hereof, then this Lease shall nevertheless continue in force for a
period of 90 days from the date such well or wells are shut in and before the
expiration of any such 90 day period, Lessee may pay or tender an advance annual
royalty payment of $100.00 for each such well and if such payment or tender is
made, this Lease shall continue in force and it shall be considered that Coal
Bed Gas and gas within Oil and Gas are

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being produced within the meaning of paragraph 4 hereof for one year from the
date such payment is made in a like manner, subsequent advance annual royalty
payments may be made or tendered and this Lease shall continue in force and it
should be considered that Coal Bed Gas and gas within Oil and Gas are being
produced within the meaning of paragraph 4 during any annual period or which
such royalty payment is so paid or tendered. Notwithstanding the foregoing,
payment of the aforedescribed royalties for any shut-in well or wells shall not
exceed a period of 5 years. Perpetuation of this Lease by payment of royalty as
provided in this paragraph shall be in lieu of payment of advance royalties as
provided in paragraph 5 above. In addition, payment of any royalty pursuant to
this paragraph shall be recouped by Lessee from any royalty payment otherwise
payable to Lessor pursuant to actual production of Minerals or any of them.

      9. Lessee is granted the right to pool or unitize this Lease, the land
covered hereby or any part thereof, with other land or leases or parts thereof
for the production of Minerals, or any of them, covered hereby. No production
for Coal Bed Gas or gas with Oil and Gas shall embrace more than 160 acres plus
a tolerance of 10% thereof. No production for oil within Oil and Gas shall
embrace more than 80 acres plus a tolerance of 10% thereof. Notwithstanding, if
any federal or state law, executive order, rule, or regulation shall prescribe a
spacing pattern for the development of the field or allocate a producing
allowable on acreage per well, then any such unit may embrace as much additional
acreage as may be so prescribed or as may be used in such allocation or
allowable. Lessee shall execute in writing an instrument identifying and
describing the pooled or unitized acreage. Such unit shall be designated either
before or after the completion of any wells. Operations and production on any
part of the pooled or unitized acreage shall be treated as if such operations
were upon or such production was from the land described in this Lease whether
the well or wells be located on the land covered by this Lease or other lands.
The entire acreage so pooled into a unit shall be treated for all purposes,
except for the payment of royalties on production from the pooled or unitized
lands, as if it were included within this Lease. In lieu of the royalties herein
provided, Lessor shall receive on production from a unit so pooled or unitized
only such proportion of the royalty stipulated herein as the amount of Lessor's
acreage placed in the unit or Lessor's royalty interest therein on an acreage
basis bears to the total acreage so pooled or unitized.

      10. Lessee shall have the right to use, free of costs, all Minerals
covered by this Lease for all operations hereunder except for water from
Lessor's wells or tanks. Any royalty payment to the Lessor shall be computed
after deducting any amount so used. When requested by Lessor, Lessee shall bury
all pipelines below plow depth. Lessee shall pay for all damages caused by
Lessee's operations to growing crops on the land. The amount of any such damage
payment shall be based upon the fair market value of the actual crops destroyed.
Lessee shall have the right at any time to remove any equipment, property, or
fixtures placed on the land by Lessee together with the right to draw and remove
all casing and other downhole equipment.

      11. The rights of either party to this Lease may be assigned in whole or
in part and the provisions hereof shall extend to the successors and assigns of
the parties but no change or division in ownership of the Minerals covered
hereby with respect to the lands or royalties, however accomplished, shall
operate to enlarge the obligations or diminish the rights of Lessee or require
the installation of separate measuring tanks or devices. No such change or
division in the ownership of the Minerals in the lands or royalties shall be
binding upon Lessee for any

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purpose until such person acquiring any interest has furnished Lessee with the
instrument or certified copies thereof constituting said person's chain of title
from the original Lessor. Any assignment of this Lease by Lessee, in whole or in
part, shall, to the extent of such assignment, relieve and discharge Lessee of
any obligations hereunder and if any Assignee of any part or parts hereof shall
fail to comply with any provisions of this Lease, such default shall not affect
this Lease insofar as it covers the part retained by Lessee or another assignee.

      12. In the event Lessor considers that Lessee has not complied with its
obligations hereunder, both express and implied, including the obligation of
production as provided in paragraph 4, Lessor shall give written notice to
Lessee setting forth specifically in what respects Lessee has failed to comply
with Lessee's obligations pursuant to this Lease. Lessee shall then have 60 days
from receipt of such notice to commence and thereafter pursue with reasonable
diligence such action as may be necessary or proper to satisfy the obligation of
Lessee, if any, with respect to Lessor's notice. Neither the service of the
notice nor the doing of any acts by Lessee intended to satisfy any of the
alleged obligations shall be deemed an admission or presumption that Lessee has
failed to perform all of its obligations hereunder. No judicial action may be
commenced by Lessor with respect to any of said obligations until after the 60
day period as provided herein. Lessee shall be given a reasonable opportunity
after judicial ascertainment to prevent the forfeiture or termination of this
Lease by discharging its express or implied obligation as established by the
court.

      13. Lessor warrants and agrees to defend title to the Minerals covered
hereby as to the lands and agrees that Lessee, at its option, may discharge any
tax, mortgage, or other lien upon the interest and in the event Lessee does so,
it should be subrogated to such lien with the right to enforce same and apply
royalties accruing hereunder towards satisfying the same. Without impairment of
Lessee's rights under the warranty in the event of failure of title, it is
agreed that, if Lessor owns an interest in the Minerals covered hereby as to the
lands less than the entire fee simple estate, then the royalties and other
payments to be paid lessor shall be reduced proportionately. This Lease shall be
binding upon all who execute it and they shall be considered lessors, whether or
not they are named in the granting clause hereof and whether or not all parties
named in the granting clause execute this Lease.

      14. To the extent that Lessor owns no interest in the surface as to the
lands described herein, the provisions set forth herein with respect to surface
obligations shall not be applicable except to the extent as may be required by
law.

      15. Lessee may at any time surrender this Lease as to all or any part
thereof by delivering or mailing a release to Lessor and if surrendered only as
to a part thereof, any payments based upon acreage shall be reduced
proportionately.

      16. Lessee shall comply with all applicable federal, state, and local law,
statutes, ordinances, regulations, and orders applicable to Lessee's operations
and the conditions created thereby.

      17. When any operation contemplated by this Lease is delayed or
interrupted as a result of any cause whatsoever beyond the control of Lessee or
any event of force majeure, or as a result of any state, federal, or municipal
law, ordinance, executive order, rule, or regulation, then

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the time for such delay or interruptions shall not be counted against Lessee as
to any timeframe required by this Lease. Lessee shall not be held liable in
damages because of any such delay or interruption.

      18. In the event the coal interest is the subject of a coal mining lease
or other agreement authorizing the mining and removal of coal, the Lessor
acknowledges that the operations for the mining and removal of coal may involve
the venting of Coal Bed Gas into the atmosphere as a waste product for the
protection and efficiency of the mining operation. Lessee shall have no
obligation to recover any gas as may be vented during such coal development and
Lessee shall have no liability or obligation to Lessor for any royalties on such
vented gas. The parties further acknowledge that Coal Bed Gas may be vented and
lost during repairs to or the testing of wells or prior to the connection of any
wells to gathering and/or transmission lines in conjunction with Lessee's
operations. Under such circumstances, Lessee shall not be liable or obligated to
Lessor for any royalties on such vented and lost gas.

      19. Lessor shall pay a proportionate part of any and all taxes levied or
assessed upon the production of Minerals covered hereby and Lessee is authorized
to pay such taxes and assessments on behalf of Lessor and to deduct the same so
paid from any monies otherwise payable to the Lessor. Lessor's proportionate
part shall correspond to the amount of royalty corresponding to Lessor's
interest in the Minerals.

      20. Lessor shall have the right at any time, at Lessor's expense to:

      a.    Inspect by all appropriate means Lessee's facilities on the Land;

      b.    Test Lessee's meters and other measuring and testing devices;

      c.    Sample, test measure and gage production of the wells, inclusing the
            right, but not the obligation, to install meters on lines;

      d.    Observe Lessee in the performance of Lessee's obligations under this
            lease; and

      e.    By appointment, examine or audit, during the term of this lease and
            for three years thereafter, the books, records, supporting
            documents, files and correspondence of Lessee maintained in
            connection with the lease and the production and/or sale of the coal
            gas or coal gas products from the Land at Lessee's place of
            business.

      21. Lessee agrees to purchase all materials and/or services when and if
available at competitive rates within Marion County, Illinois for all of its
operations within Marion County, Illinois.

      22. Special Operating Methods: Lessee shall provide to Lessor, upon
request and at Lessor's expense, all survey information which Lessee may now
have or hereafter obtain to inform Lessor fully as to the exact location of any
well drilled and copies of all logs, drill stem test records, core analyses,
pressure tests, or any other information obtained by Lessee in the course of
drilling any well.

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      23. Lessee agrees that no well will be drilled within 300 feet of any
personal residence, or building used in a commercial business.

      24. This Lease shall be binding upon and inure to the benefit of the
parties hereto together with their successors and assigns. To the extent that
the interest covered by this Lease constitutes any part of the homestead estate
of Lessor, then the Lessor releases and waives all rights under and by virtue of
the homestead exemption laws of the State of Illinois.

      EXECUTED the day and year above written.

                                                     LESSOR

                                                   COUNTY OF MARION, ILLINOIS

                                                   BY /s/ Sam Nall
                                                      --------------------------
                                                      Its Board Chairman

                                                     LESSEE

                                                   BPI INDUSTRIES, INC.

                                                   BY
                                                      --------------------------

                                                      Its
                                                          ----------------------

                                       7<PAGE>

                                                                   EXHIBIT 10.14

                                FARMOUT AGREEMENT

      THIS AGREEMENT, made and entered into this the 2nd day of November 2004,
by and between ADDINGTON EXPLORATION, LLC., 2501 Broadway St, Catlettsburg,
Kentucky 41129, hereinafter referred to as "ADDINGTON", and BPI Industries,
Inc., 501 East DeYoung Street, Marion, Illinois 62959 hereinafter referred to as
"FARMEE".

      WITNESSETH, THAT:

      WHEREAS, ADDINGTON is the owner of the following Coal Seam Gas Leases,
hereinafter called Farmout Tract;

      Coal Seam Gas lease dated February 1, 1999, recorded March 15, 1999, in
      Book 455, at pages 183-200, by and between Meadowlark Farms, Inc., as
      Lessor, and Addington, as Lessee, and pertaining to 22,997 acres located
      in Perry County, Illinois, as more specifically described in said lease.

      Coal Seam Gas lease dated February 1, 1999, recorded March 15, 1999 in
      Book 1036, at pages 218-224, by and between Meadowlark Farms, Inc., as
      Lessor, and Addington, as Lessee, and pertaining to 41,253 acres located
      in Macoupin County, Illinois, as more specifically described in said
      lease.

      WHEREAS, ADDINGTON has agreed to assign to FARMEE and FARMEE has agreed to
accept from ADDINGTON the aforesaid Coal Seam Gas Leases which includes coal bed
methane gas, coal bed gas, methane gas, gob gas, occluded natural gas in any
formation or other naturally occurring gases contained in or associated with any
coal seam, hereinafter referred to as "Gas".

      NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, it is agreed by and between the parties hereto as follows:

      1. TITLES. ADDINGTON does not warrant the title to the Farmout Tract but
it shall, upon request, make available to FARMEE such abstracts and other
documents, without warranty or liability, as it has in its files together with
copies of the lease and all intermediate assignments thereof. There shall be no
obligation on the part of ADDINGTON to secure new or supplemental abstracts nor
secure any curative instruments in connection with the title to said Farmout
Tract. Furthermore, FARMEE shall furnish to ADDINGTON free of all costs copies
of all abstracts or title opinions FARMEE acquires on the Farmout Tract.
ADDINGTON agrees to assign any prior warranties of title it received in the
lease.

      2. INSURANCE. All operations shall be at the sole risk, cost and expense
of FARMEE and ADDINGTON shall not be subject to any obligation or liability
whatsoever in connection therewith. While operations are being conducted
hereunder on the lands subject hereto, FARMEE agrees to acquire and/or maintain
adequate Worker's Compensation, and a minimum of Five Million Dollars
($5,000,000) of Comprehensive General Liability, Excess Liability and Automobile
Liability Insurance. FARMEE further agrees to name ADDINGTON as an additional
insured under such insurance policies and further agrees to secure a waiver of
subrogation in favor of ADDINGTON under each of the insurance policies noted
above.

<PAGE>

FARMEE shall provide ADDINGTON with current copies of said Certificates of
Insurance, so as to have on file with ADDINGTON current copies at all times
during the term of this Agreement. FARMEE shall notify ADDINGTON immediately of
any changes in its insurance coverage. Each insurance carrier shall agree to
give ADDINGTON ten (10) days notice prior to the cancellation or material change
of said insurance policies.

      3. INFORMATION CONCERNING WELLS.

      FARMEE shall furnish ADDINGTON information for any wells drilled by FARMEE
on the Farmout Tract. All well(s) drilled on the Farmout Tract shall be at legal
locations as approved by the Illinois Department of Natural Resources. Refer to
Exhibit 'A', Geological and Drilling Requirements, for further details.

      4. PROTECTION OF LEASES.

      FARMEE agrees to preserve and protect the leasehold estate to be assigned
to FARMEE hereunder, in full compliance with the express and implied terms,
conditions and covenants thereof, and give to ADDINGTON the full right to
enforce all of the terms and conditions of said lease, both express and implied,
either alone or in conjunction with the mineral owners. FARMEE agrees to protect
and preserve said estate from any and all liens, judgments and any other claims
whatsoever. Should FARMEE fail to comply with any of the terms and provisions
hereof, ADDINGTON, in addition to any other relief to which it may be entitled,
may demand a reassignment of the interest transferred, or any portion thereof,
as provided for herein, and FARMEE shall thereupon execute and deliver to
ADDINGTON an assignment covering the interest assigned hereunder to FARMEE in
the Farmout Tract and FARMEE shall warrant title against the claims and demands
of any and all persons claiming by, through or under FARMEE.

      5. SURRENDER, EXPIRATION OR ABANDONMENT.

      In the event FARMEE, or its successors or assigns, hereafter desires to
surrender, let expire or abandon all or any portion of the Farmout Tract, FARMEE
agrees to give ADDINGTON at least sixty (60) days notice in writing of its
intention to so surrender, let expire or abandon and shall, if requested to do
so by ADDINGTON, reassign said Farmout Tract insofar as it covers the portion
being surrendered, expiring or abandoned to ADDINGTON free of any encumbrances
suffered by, through or under FARMEE, in which event ADDINGTON shall have the
option if it so desires to purchase any casing and other equipment in any well
or wells that may be situated thereon at the prevailing market price for second
hand material of like quality and kind.

      6. PAYMENTS.

      In the event prior to the delivery of an assignment by ADDINGTON to FARMEE
hereunder any payments necessary to maintain the Farmout Tract in force and
effect should become due, ADDINGTON shall make such payments and FARMEE shall
reimburse ADDINGTON for the total amount thereof within thirty (30) days after
receiving ADDINGTON's billing therefore.

      Should FARMEE desire to cease payments necessary to maintain the Farmout
Tract, or any portion thereof, in force and effect or should FARMEE desire that
ADDINGTON cease to make such payments for the account of FARMEE, FARMEE shall
give notice thereof to ADDINGTON in writing no less than sixty (60) days prior
to the due date of such payments and

                                       2

<PAGE>

upon request by ADDINGTON, FARMEE shall immediately assign all of its right,
title and interest in and to the Farmout Tract which requires such payment to
ADDINGTON without warranty of title except against the claims and demands of any
and all persons claiming by, through, or under FARMEE.

      If ADDINGTON, through mistake, oversight or inadvertence fails to make any
payments necessary to maintain the Farmout Tract in force and effect as required
hereunder, there shall be no liability on the part of ADDINGTON acting in good
faith.

      7. PERFORMANCE.

      If initial testing of any well or wells drilled under the terms of this
Agreement proves to be capable of producing Gas in commercial quantities, it, or
they, shall be equipped for production by FARMEE. The maximum lime for sales of
production from this farmout acreage shall commence within 24 months after the
initial 36-month evaluation period. If any well proves to be incapable of
producing Gas in commercial quantities, FARMEE shall plug and abandon same in
accordance with the rules and regulations of any regulatory body having
jurisdiction. FARMEE shall restore the premises to its original contour as
nearly as practicable and settle and dispose of all claims for damage including
but not limited to grass, crops and the surface of the land, as to all
disturbances caused by FARMEE.

      If and when FARMEE has completed any well drilled as a producer of Gas in
the manner and within the time herein provided into the pipeline and has
otherwise complied with and performed all the other terms, covenants and
conditions herein made binding upon FARMEE, ADDINGTON shall execute and deliver
to FARMEE an assignment of its right, title and interest in and to the Farmout
Tract, subject to the terms of this Agreement and in the form attached as
Exhibit 'B', insofar only as said Farmout Tract covers and is limited to all
depths and formations underlying said lands from the surface to Fifty (50) feet
below the deepest coal seam, namely the Bidwell seam, lying approximately
800'-1000' below the surface, penetrated or underlying said well and rights to
ADDINGTON's leasehold within the one hundred sixty (160) acre quarter section
surrounding each well in the event the well is a vertical well, or each quarter
section penetrated by the wellbore to total depth in the event the well is a
horizontal well.

      ADDINGTON and FARMEE recognize if FARMEE earns rights as set forth herein
above, such earning of rights may result in the formation of overlapping
squares. In the event of this occurrence, ADDINGTON and FARMEE agree previously
drilled and completed wells, and the acreage allocated thereto, shall take
precedence over subsequently drilled and completed wells whose acreage overlaps
therewith. In this event, the acreage assigned to FARMEE for such subsequently
drilled well shall exclude that portion of acreage that fails within the
boundaries of a square which would be applicable to a previously drilled and
completed well(s).

      The assignment shall specifically refer to depths and formations assigned
and be subject to the terms and conditions of this agreement. In addition, said
assignment shall be without warranty, express or implied, but shall assign unto
FARMEE all warranties of title it received in the lease(s), and shall reserve
unto ADDINGTON a Three percent (3%) of 8/8ths overriding royalty on the gas sold
of Gas produced and sold from that portion of the Farmout Tract so assigned, or
any renewals, extensions or modifications of any lease covering the Farmout
Tract taken within two years of its expiration; which interest shall be free
from any and all costs or

                                       3

<PAGE>

charges whatsoever, including without limitation, costs of gathering,
compression, or marketing, and based on the highest price attainable in an arms
length transaction.

      The overriding royalty on the Gas payable by FARMEE, in those cases where
FARMEE enters into a gas sales contract for the sale of Gas produced from or
attributable to the Farmout Tract with a purchaser which is owned or controlled
by, is an affiliate or subsidiary of FARMEE, or of which FARMEE is a subsidiary,
shall be calculated and paid on the basis of the market value of the gas using
the Appalachian Basin Index as a basis. Further, should FARMEE pre-sell, pledge
or otherwise commit the gas produced from the Farmout Tract for a period of more
than twelve months, it shall nevertheless make payment of the overriding royalty
based on the current market value of the gas using the Appalachian Basin Index
as a basis. Should FARMEE pre-sell, pledge or otherwise commit the Gas produced
from the Farmout Tract for a period of less than twelve months, it shall
nevertheless make payment of the overriding royalty based on the actual price
received for Gas delivered provided the Gas is sold in an arms length
transaction.

      ADDINGTON, upon notice in writing to FARMEE shall have the right to audit
FARMEE's accounts and records. ADDINGTON's right to audit shall be limited to
those accounts and records pertaining to this agreement, including without
limitation, all accounts and records regarding income, expenses and production
from the farmout premises, relating to the Overriding Royalty for any calendar
year within the twenty-four (24) month period following the end of such calendar
year. FARMEE shall bear no portion of the audit cost incurred under this
paragraph. Audits shall not be conducted more than once each year without prior
approval of FARMEE and shall be made at the expense of ADDINGTON. FARMEE shall
reply in writing to an audit report within 180 days after receipt of such
report. Any applicable statute of limitation related to matters contained in the
audit report shall be tolled during any period after which the report has been
furnished to FARMEE and until the FARMEE shall reply in writing to such report.

      FARMEE agrees to indemnify and hold ADDINGTON harmless from any claim(s),
demand(s) or lien(s) asserted by any person or persons pursuant to FARMEE's
operations and to pay promptly all invoices for labor, materials and other items
as they occur.

      As a condition precedent to ADDINGTON's obligation to perform in
accordance with the provisions of Article 7 hereof, FARMEE shall furnish
evidence satisfactory to ADDINGTON that all bills have been paid in connection
with said test well or wells.

      8. DEFAULT. If FARMEE is in breach of the terms of this agreement and
after proper notice as set out herein, ADDINGTON, at its option, may terminate
this agreement; provided, that in so doing ADDINGTON shall not waive or
otherwise be precluded from exercising any other rights or remedies, at law or
in equity, which it may have for the breach of this agreement by FARMEE or for
FARMEE's failure to perform under this agreement in whole or in part. ADDINGTON
shall give the FARMEE written notice by certified letter fully describing the
breach or default. After receipt of the written notice, the FARMEE shall have
fifteen (15) days in which to commence satisfactory actions. Once satisfactory
actions are commenced, the FARMEE shall then have thirty (30) days to fully
remedy the breach or default.

                                       4

<PAGE>

      9. OTHER CONDITIONS.

      A.    As initial consideration for this agreement, FARMEE shall pay to
            ADDINGTON One Hundred Thousand Dollars ($100,000.00) for the
            leasehold farmed out hereunder upon execution of the Farmout
            Agreement. For purposes of this agreement the Farmout Tract shall be
            considered as containing 64,250 acres, whether actually more or
            less.

      B.    This Agreement will be in force for an initial period of 36 months
            from the date hereof, hereinafter called the "Evaluation Period",
            during which time FARMEE may test and evaluate the properties
            subject to this agreement to determine coal thickness, permeability,
            porosity, and related gas content. FARMEE may conduct any tests that
            it feels are necessary to meet the requirements of this agreement
            including drilling test wells as necessary to conduct its tests. Any
            test wells drilled that are capable of producing Gas may be placed
            into production, at the option of FARMEE.

      C.    At any time on or before the termination of the Evaluation Period,
            FARMEE may request from ADDINGTON an extension of this agreement in
            order to produce Gas. Provided FARMEE has evaluated the properties
            in a good and workman like manner, has not created a nuisance nor
            environmental damage and has otherwise performed as a prudent
            operator, ADDINGTON shall grant an extension, hereinafter called the
            "Development Period", of this Agreement under the following terms.

                  a.    FARMEE shall pay to ADDINGTON an initial rental for the
                        Development Period of this Agreement for the first (1st)
                        year of the Development Period of $0.50 per acre for
                        every acre that FARMEE desires to retain during the
                        Development Period. FARMEE shall be given credit for
                        each quarter section where a vertical well or wells have
                        been drilled and each quarter section penetrated (in
                        whole or in part) by the wellbore for each horizontal
                        well drilled and which wells have been put into
                        production during the Evaluation Period in which case
                        FARMEE shall not be required to pay the rental for the
                        Development Period for the acreage in production. For
                        every year after the first year, there will be an
                        increase of $0.50 per acre per year for all unearned
                        acreage relating to both vertical and horizontal wells.
                        Refer to the following table:

<TABLE>
<CAPTION>
   YEAR OF DEVELOPMENT
PERIOD FROM THE EFFECTIVE
     DATE OF FARMOUT
        AGREEMENT           RENTAL PER YEAR FOR UNEARNED ACREAGE
-------------------------   ------------------------------------
<S>                         <C>
1st year                                  $0.50

2nd year                                  $1.00

3rd year                                  $1.50

4th year                                  $2.00

5th year and beyond                       $2.50
</TABLE>

                                       5

<PAGE>

                  b.    Upon completion of drilling to TD of three hundred
                        twenty-five (325) vertical wells, the Farmout Tract
                        shall be considered fully developed under the term of
                        this Agreement. ADDINGTON shall deliver to FARMEE an
                        assignment of the balance of the Farmout Tract.

      D.    FARMEE shall have ninety (90) days from the signing of this Farmout
            Agreement in which to review title to the lease. Should there be a
            title failure, or any order from a court of final jurisdiction,
            which would prevent FARMEE from drilling on the Farmout Tract, and
            if ADDINGTON is unable to cure the title failure to FARMEE's
            satisfaction within thirty (30) days of receipt of notice of said
            title failure, ADDINGTON shall reimburse FARMEE the bonus paid upon
            execution of this Agreement for that portion of the Farmout Tract on
            which there is title failure. This Farmout Agreement shall
            thereafter be null and void as to that portion of the Farmout Tract
            on which there is a title failure. Title failure shall be defined as
            title less perfect than marketable title for the tract in question.

      E.    FARMEE agrees to comply with the Shut-In Gas provisions as set out
            in the coal seam gas leases under Section 3 c.

      F.    FARMEE acknowledges that ADDINGTON is not the owner of the surface
            of the lands farmed out hereunder and FARMEE shall be totally
            responsible for acquiring any surface rights that are necessary to
            accomplish the terms of this agreement.

      10. NOTICE. All notices and information to be given or supplied pursuant
to the foregoing provisions shall be given at the following addresses:

      ADDINGTON EXPLORATION LLC.                BPI INDUSTRIES, INC.
      2501 Broadway St.                         501 East DeYoung Street
      Catlettsburg, KY  41129                   Marion, IL  62959
      Ph: 606-739-8054                          Ph: 618-993-1460
      Fax: 606-739-9158                         Fax: 618-993-1360

      11. EFFECT OF AGREEMENT. The terms, covenants and conditions of this
agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors or assigns; and said terms, covenants and
conditions shall be covenants running with the Farmout Tract covered hereby and
with each transfer or assignment of said Farmout Tract.

      This agreement is subject to all valid and applicable federal, state and
local laws and the rules and regulations of any regulatory body or authority
having jurisdiction thereof, and all development and operations hereunder shall
be conducted in conformity therewith.

      This agreement is not intended to create and nothing contained herein
shall be construed to create an association, trust, joint venture, mining
partnership, or other partnership or entity of any kind, nor to constitute
FARMEE the agent of ADDINGTON.

      12. COMPLIANCE WITH LAWS AND REGULATIONS. FARMEE covenants that all work
performed hereunder shall comply with and is subject to all valid and applicable
federal,

                                       6

<PAGE>

state and local laws and the rules and regulations of any regulatory body or
authority having jurisdiction thereof, and all development and operations
hereunder shall be conducted in conformity therewith including, without
limitation, The Occupational Safety and Health Act of 1970 (29 U.S.C. 651, et
Seq.); Hazardous Materials Transportation Uniform Safety Act of 1990 (49 U.S.C.
1801, et seq.); Equal Opportunity: E.O. 11246 and 41 CFR 60-1.4 and 60-1.7; The
Americans with Disabilities Act of 1990 (42 U.S.C. 12101, et seq.); Utilization
of Minority Business Enterprises: E.O. 1625 and 41 CFR Subpart 1-1: 13; Age
discrimination: E.O. 111412; and Employment of Veterans: E.O. 11701 and 41 CFR
50-250.4, which provisions are incorporated by reference. FARMEE shall indemnify
ADDINGTON, its parent corporations, subsidiaries, affiliates, successors and
assigns, and its and their directors, officers, shareholders, employees and
agents, against any damages, penalties, costs or expenses incurred in connection
with any alleged violation of any federal, state law or local law or regulation
with regard to FARMEE' performance of this agreement.

      13. ASSIGNABILITY. FARMEE shall not assign this agreement in whole or in
part without the written consent of ADDINGTON. Nothing in this paragraph shall
prevent FARMEE from assigning the right to drill and produce coal mine gas wells
to a subsidiary or a sister or parent company, provided however ADDINGTON shall
be notified of the pending assignment prior to actual assignment of said right
to drill and produce coal mine gas wells.

      14. RECORDING. This Farmout Agreement shall not be recorded in the County
Records without the express written permission of the parties hereto.

      15. EXECUTION OF AGREEMENT. This agreement shall be null and void at the
option of ADDINGTON unless one (1) fully executed copy is returned to ADDINGTON
at the above address within ten (10) days from the date first stated herein.

      16. Executed as of the date first set out above.

ADDINGTON EXPLORATION, INC.              BPI INDUSTRIES, INC.

By: /s/  Michael J. Robinson             By: /s/ James Azlein
    ----------------------------             -----------------------------------
Michael J. Robinson                      James Azlein
Its: General Manager                     Its: President
                                         Accepted this 2nd day of November 2004.

                                       7

<PAGE>

                                   EXHIBIT 'A'
                      DRILLING AND GEOLOGICAL REQUIREMENTS

Attached to and made a part of that certain Farmout Agreement dated November 2,
2004 by and between ADDINGTON EXPLORATION, LLC. (ADDINGTON) and BPI INDUSTRIES,
INC. (FARMEE).

      I.    Any well drilled pursuant to the terms and conditions hereinafter
            stated and of the agreement to which this exhibit is attached shall
            be located and drilled in compliance with all federal and state
            laws, executive orders, rules and regulations of any legally
            constituted regulatory body of the state in which operations are
            being performed and any other governing body having jurisdiction
            thereof.

      II.   Without ADDINGTON's prior written consent, FARMEE shall not divulge
            any information obtained from operations hereunder to any third
            party other than a party owning an interest under this Agreement or
            to a governmental authority having jurisdiction. ADDINGTON conveys
            the ability to FARMEE to disclose necessary information to its'
            employees, consultants and contracted service companies.

      III.  Prior to the date that any well is commenced under this agreement,
            FARMEE shall furnish to ADDINGTON a copy of the permit to drill the
            well and its accompanying location plat. FARMEE shall inform
            ADDINGTON of the expected time of spud of any well drilled hereunder
            twenty-four (24) hours in advance in such spud.

      IV.   During the course of the drilling and completion of any well,
            ADDINGTON or its authorized representatives shall at all times have
            access to the well and derrick floor. ADDINGTON shall at all times
            have access to the lands covered hereby to inspect operations
            thereon and FARMEE, upon request, shall furnish ADDINGTON full
            information in regard thereto.

      V.    Casing shall be properly set and the well tested and such other
            preparations made as necessary to conduct satisfactory tests of the
            showing or showings. Operator shall properly test each prospective
            coal seam gas horizon and, upon encountering such horizon in the
            drilling of any well, shall notify ADDINGTON when such horizon is to
            be tested and shall allow ADDINGTON sufficient time to have a
            representative present when such horizon is tested. FARMEE also
            agrees to notify ADDINGTON in ample time to have a representative
            present when conducting electrical wireline surveys. If the
            information from any electrical wireline survey, made either before
            or after contract depth has been reached, and considered by itself
            or in conjunction with other indications or evidence from cuttings,
            cores or showings, makes the formation appear promising of being a
            prospective coal seam gas horizon, FARMEE, in it's sole judgment,
            shall properly test such horizon if it was not adequately tested at
            the time it was penetrated.

                                       8

<PAGE>

      VI.   With respect to any well drilled hereunder, FARMEE shall:

                  a.)   Furnish ADDINGTON one large-scale copy of all open-hole
                        logs run through all formations of interest;

            Upon completion of any well drilled hereunder, FARMEE shall furnish
            ADDINGTON with two copies of all final wireline logs

                  b.)   Provide to ADDINGTON one copy of the following:

                        a.)   Application for permit to drill, location plat and
                              drilling permit

                        b.)   Monthly reports of coal seam gas production

                  c.)   Furnish to ADDINGTON, upon request, such additional
                        information as it may reasonably require relative to any
                        phase of the operations conducted pursuant to this
                        Agreement. ADDINGTON shall have access to and copies of
                        any geophysical data or seismic surveys which are
                        conducted on or across the lease acreage during the term
                        of this Agreement. ADDINGTON shall have free access
                        during customary business hours to all records relative
                        to such operations.

      VII.  All logs, reports and other information required under this
            provision shall be addressed to Mr. Mike Robinson.

                        2501 Broadway Street
                        Catlettsburg, KY  41129
                        Phone (day): (606) 739-8864 ext.301
                        Phone (night): (606) 781-9121
                        Fax: (606) 739-9158

                                       9

<PAGE>

                                   EXHIBIT "B"

Attached to and made a part of that certain Farmout Agreement dated
_____________ 2004, by and between ADDINGTON EXPLORATION, LLC. and BPI
INDUSTRIES, INC. (FARMEE).

                     ASSIGNMENT, BILL OF SALE AND CONVEYANCE

STATE OF ILLINOIS

COUNTY OF ______________

ADDINGTON EXPLORATION, LLC, whose address is 2501 Broadway, Catlettsburg,
Kentucky 41129 ("Assignor"), for and in consideration of the sum of Ten and
No/100ths Dollars ($10.00) and other good and valuable consideration, the
receipt, adequacy, and sufficiency of which are hereby acknowledged, does hereby
sell, transfer, assign and convey unto BPI INDUSTRIES, INC., whose address is
501 East DeYoung Street, Marion, Illinois 62959 ("Assignee"), effective as of
______________________, at 7:00 a.m. local time where each Property is located
("Effective Time") the following:

      (a) All of its' right, title and interest in and to the coal seam gas
leases described in the attached Exhibit A (the "Leases"), and the lands covered
by the Leases (the "Land"), together with corresponding interests in and to all
the property and rights incident thereto, including all rights in any pooled or
unitized acreage by virtue of the Land being a part thereof, all production from
the pool or unit allocated to any of the Land, INSOFAR AND ONLY INSOFAR AS SAID
LEASES COVER ONE HUNDRED SIXTY (160) ACRES (A QUARTER SECTION) FOR A VERTICAL
WELL AND EACH QUARTER SECTION PENETRATED BY THE WELLBORE TO TOTAL DEPTH FOR A
HORIZONTAL WELL SURROUNDING THE ___________________________ WELL AS FURTHER
SHOWN ON THE ATTACHED PLAT LABELED EXHIBIT "__" and insofar and only insofar
said leases cover and pertain to those coal-bearing formations from the surface
to fifty feet (50') below the Bidwell seam which formation lies approximately
800'-1000' beneath the surface.

TO HAVE AND TO HOLD unto Assignees and its heirs, devisees, successors and
assigns forever, but subject to the following:

1. That certain Farmout Agreement dated ________________.

2. All outstanding royalties, overriding royalties, other burdens on production,
prior reservations, agreements, and other matters of record.

3. Assignor reserves, as an overriding royalty interest of three percent (3%) of
8/8ths of all gas sold. The foregoing reservation is subject to the following:
(a) If the lease covers less than all of the oil and gas in the above land or if
Assignor should own less than all interest of the original lessee, the portion
of production herein reserved as an overriding royalty shall be reduced
proportionately; (b) This overriding royalty interest applies to any renewals,
extensions or modifications of any lease covering Farmout Tract taken within two
(2) years of its expiration. (c) Assignor reserves the right to take its
overriding royalty interest in kind.

                                       10

<PAGE>

Assignor warrants title to the leases hereinto assigned through itself, but
through no other.

      TO HAVE AND TO HOLD the interest and rights herein conveyed, subject to
the terms and conditions hereof, this Assignment shall be binding upon the inure
to the benefit of Assignor and Assignee, their successors and assigns.

      IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed this ____ day of _______________, 2004.

WITNESS:                                ADDINGTON EXPLORATION, INC.

____________________________________    BY: ____________________________________
                                            Michael J. Robinson, General Manager

WITNESS:                                BPI INDUSTRIES, INC.

____________________________________    BY: ____________________________________
                                            James Azlein, President

                                       11

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