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EXHIBIT 10.1 (A)

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER UNITED STATES
FEDERAL OR STATE SECURITIES LAWS, INCLUDING BUT NOT LIMITED TO THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT") NOR APPROVED BY ANY FEDERAL OR STATE
REGULATORY AGENCY, INCLUDING BUT NOT LIMITED TO THE SECURITIES AND EXCHANGE
COMMISSION, AND MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED OR
ASSIGNED FOR VALUE, DIRECTLY OR INDIRECTLY, NOR MAY THE SECURITIES BE
TRANSFERRED ON THE BOOKS OF THE CORPORATION, WITHOUT REGISTRATION OF SUCH
SECURITIES UNDER ALL APPLICABLE UNITED STATES FEDERAL OR STATE SECURITIES LAWS,
INCLUDING BUT NOT LIMITED TO THE ACT, OR COMPLIANCE WITH AN APPLICABLE EXEMPTION
THEREFROM, SUCH COMPLIANCE, AT THE DISCRETION OF THE CORPORATION, TO BE
EVIDENCED BY AN OPINION OF SHAREHOLDER'S COUNSEL, IN FORM ACCEPTABLE TO THE
CORPORATION, THAT NO VIOLATION OF SUCH REGISTRATION OR QUALIFICATION PROVISIONS
WOULD RESULT FROM ANY PROPOSED TRANSFER OR ASSIGNMENT.

                           CONVERTIBLE PROMISSORY NOTE

Dated as of April  15, 2003                                          $300,000.00

                  FOR VALUE RECEIVED, the undersigned ("Payor") promises to pay
to the order of Shaya Boymelgreen Trust ("Payee"), 535 Dean Street, Suite 908
Brooklyn, New York, 11217, or at such other address as the holder of this Note
shall from time to time designate, upon presentation of this Note, the principal
sum of THREE HUNDRED THOUSAND DOLLARS AND NO CENTS ($300,000.00), plus accrued
and unpaid interest, as provided for herein. Except as provided herein, this
Note shall bear interest from the date hereof on the unpaid principal amount
until paid in full (or until such time as this Note has been converted in full
into shares of Payor's Common Stock ("Common Stock") pursuant to the conversion
provisions contained elsewhere herein) at the rate of three and one-half percent
(3.5%) per annum (the "Note Rate").

                  This Note is made pursuant to that certain Subscription
Agreement (the "Subscription Agreement"), dated as of April 15, 2003, by and
among Payor and Payee, pursuant to which Payee agrees to purchase an additional
note for the principal sum of ONE MILLION DOLLARS ($1,000,000.00) (the "Million
Dollar Note") within thirty (30) days of the date hereof. Capitalized terms,
which are used herein but not defined herein, shall have the meanings ascribed
to them in the Agreement.

                  Payor shall have the right to prepay all or any portion of the
principal sum hereof at any time without penalty; provided that Payor provide
Payee with a notice of any

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such prepayment (a "Prepayment Notice") by personal delivery or first-class mail
no later than five (5) business days prior to such prepayment and to the extent
applicable, that Payee has not during the "Conversion Term, " as hereinafter
defined, delivered to Payor a notice of conversion (a "Conversion Notice") with
respect to any or all of such amount to be prepaid by personal delivery or
first-class mail no later than three (3) business days after receipt of the
Prepayment Notice. In the event Payee has conversion rights available to it
pursuant to the terms of this Note and Payee elects only to convert into Common
Stock a portion of the amount that Payor elects to prepay pursuant to the
Prepayment Notice, Payor shall be entitled to prepay all remaining amounts not
to be so converted into Common Stock by Payee.

                  Each payment shall be credited first to accrued interest and
the remainder to principal. Principal and interest shall be payable in lawful
money of the United States of America.

                  The holder of this Note shall have the right, at such holder's
option, to convert all of any portion of the outstanding principal and accrued
and unpaid interest of this Note into such number of fully paid and
nonassessable shares of Common Stock as shall be provided herein solely during
the period commencing only ninety (90) days after the issuance of the Million
Dollar Note and expiring one hundred twenty (120) days thereafter (subject to
Payor's right to prepay all or any portion of this Note described elsewhere
herein) (the "Conversion Term"). During the Conversion Term, the holder of this
Note may exercise such conversion right by giving a Conversion Notice to Payor
of the exercise of such right, in whole or in part, and stating the name or
names in which the stock certificate or stock certificates for the shares of
Common Stock are to be issued and the address to which such certificates shall
be delivered. The Conversion Notice shall be accompanied by this Note. The
number of shares of Common Stock that shall be issuable upon conversion of this
Note shall equal the amount of the outstanding principal and accrued interest
for which a Conversion Notice is given, divided by a conversion price (the
"Conversion Price") equal to $.15 per share. On the first anniversary of the
date hereof, all outstanding principal and interest of this Note shall
automatically convert without any action on the part of Payee into shares of
Common Stock at $.25 per share.

                  No fractional shares of Common Stock shall be issued upon
conversion of this Note. In lieu of any fractional shares to which the holder
would otherwise be entitled, Payor shall round up to the nearest whole share. In
the case of a dispute as to the calculation of the number of shares of Common
Stock into which this Note or any portion thereof shall be converted (the
"Conversion Rate") upon the receipt of a Conversion Notice, Payor's calculation
shall be deemed conclusive absent manifest error. In order to convert this Note
into full shares of Common Stock, the holder shall surrender this Note, duly
endorsed, by overnight courier to the office of Payor, together with the
Conversion Notice that it elects to convert the same, the amount of principal
and interest to be so converted, and a calculation of the Conversion Rate (with
an advance copy of the certificate(s) and the notice by facsimile); provided,
however, that Payor shall not be obligated to issue certificates evidencing the
shares of Common Stock issuable upon such conversion unless either this Note is
delivered to Payor as provided above, or the holder notifies Payor that this
Note has been lost, stolen or destroyed and executes an agreement satisfactory
to Payor to indemnify Payor from any loss incurred by it in connection with this
Note.

                  Payor shall issue and deliver to Payee promptly after delivery
to it of this Note, to such holder at the address of the holder on the records
of Payor, a certificate or certificates for the number of shares of Common Stock
to which it shall be entitled as aforesaid. The date on which notice of
conversion is given (the "Date of Conversion") shall be deemed to be the date
set forth in such notice of conversion provided that this Note to be converted
is received by Payor within five (5) business days thereafter and the person or
persons entitled to receive the shares of Common Stock issuable upon such
conversion shall be treated for all purposes as the record holder or holders of
such shares of Common Stock on such date. If this Note is not received by Payor
within five (5) business days after the Date of Conversion, the notice of
conversion shall become null and void.

                  Payor shall at all times reserve and keep available, free from
preemptive rights, unissued or treasury shares of Common Stock sufficient to
effect the conversion of this Note; and if at any time the number of authorized
but unissued shares of Common Stock shall not be sufficient to effect the
conversion of all then outstanding principal and accrued and unpaid interest of
this Note, Payor will take such corporate action as may be

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necessary to increase its authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purposes.

                  In the event of any increase or decrease in the number of the
issued shares of Common Stock by reason of a stock dividend, stock split,
reverse stock split or consolidation or combination of shares and the like at
any time or from time to time throughout the term of this Note such that the
holders of outstanding Common Stock shall have had an adjustment made, without
payment therefor, in the number of shares of Common Stock owned by them or shall
have become entitled or required to have had an adjustment made in the number of
shares of Common Stock owned by them, without payment therefor, there shall be a
corresponding adjustment as to the number of shares of Common Stock into which
this Note is exercisable and to the Conversion Price, with the result that the
holder's proportionate share of Common Stock shall be maintained as before the
occurrence of such event without change in the aggregate conversion price
applicable in the event the holder elected to convert this Note in full (except
for any change in the aggregate conversion price exercise price resulting from
rounding-off of share quantities or prices).

                  In the event of any reclassification or change of outstanding
shares of Common Stock issuable upon conversion of this Note (other than a
change in par value, or from par value to no par value, or from no par value to
par value), or in case of a consolidation or merger of Payor with or into
another corporation (other than a merger or consolidation in which Payor is the
continuing corporation and which does not result in a reclassification or change
of outstanding shares of Common Stock of the class issuable upon the conversion
of this Note except where the security holders of Payor are entitled to receive
securities of another issuer), or in case of any sale or conveyance to another
corporation of the property of Payor as an entirety or substantially as an
entirety (any of such events hereinafter referred to as a "Restructuring
Event"), Payor shall provide Payee with thirty (30) days prior written notice of
the Restructuring Event. Payee shall have the right to convert this Note into
shares of Common Stock by delivering a Conversion Notice to Payor no later than
five (5) business days prior to the Restructuring Event. In the event Payee
fails to deliver the Conversion Notice by such time, Payor shall remain
obligated to make any remaining payments owed under this Note and Payee shall
retain the right to receive the kind and amount of shares of stock and other
securities and property of Payor receivable upon such Restructuring Event by the
holder of the number of shares of Common Stock of Payor into which this Note
might have been converted immediately prior to such Restructuring Event (to the
extent such Restructuring Event does not involve the corporate dissolution or
disappearance of Payor), but Payee shall not, absent an express agreement to the
contrary with any successor corporation, have the right to receive the kind and
amount of shares of stock and other securities and property of any such
successor corporation receivable upon such Restructuring Event by the holder of
the number of shares of Common Stock of Payor into which this Note might have
been converted immediately prior to such Restructuring Event. Any such interest
shall provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for herein. The foregoing provisions of
this Note shall similarly apply to successive reclassifications and changes of
shares of Common Stock and to successive consolidations, mergers, sales, or
conveyances.

                  In the event the holder brings suit to enforce its rights
under this Note, the prevailing party in such suit shall pay all costs and
expenses (including without limitation reasonable attorneys' fees) in connection
therewith.

                  No failure to exercise, and no delay in exercising, any right,
power or remedy hereunder or under any document delivered to the holder hereof
shall impair any right, power or remedy which the holder may have. The rights
and remedies of the holder hereof are cumulative and not exclusive of any rights
or remedies which the holder would otherwise have. This Note and Payee's rights
thereunder shall not be transferable or assignable without the expressed written
consent of the Payor.

                  No waiver or modification of any of the terms or provisions of
this Note shall be valid or binding unless set forth in a writing signed by the
holder of this Note and Payor and then only to the extent therein specifically
set forth.

<PAGE>

                  In addition to the requirements of the Act set forth on the
cover page of this Note, this Note is non-negotiable and non-transferable by the
Holder and may not be sold, hypothecated, transferred or assigned by the Holder
(collectively, a "Transfer") without the express written consent of the Payor,
which consent may, in the sole discretion of the Payor, be withheld. No Transfer
of this Note or the Common Stock issued upon the conversion of all or part of
this Note shall be effected unless such Transfer is covered by an effective
registration statement under the Act or the Holder has provided the Payor with
an opinion of counsel acceptable to the Holder that the Transfer is exempt from
the registration requirements of the Act.

                  If any one of the provisions of this Note shall be invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby.

                  This Note and all transactions hereunder and/or evidenced
hereby shall be governed by, construed under and enforced in accordance with the
laws of the State of California. Payor hereby: (i) agrees that all actions or
proceedings relating directly or indirectly hereto shall be litigated in courts
located within the State of California, and that, at the option of the holder,
the exclusive venue therefor shall be Los Angeles County; (ii) consents to the
jurisdiction and venue of any such court and consents to the service of process
in any such action or proceeding by personal delivery, by certified or
registered mail directed to Payor at the address set forth below, or by any
other method permitted by law; and (iii) waives any and all rights Payor may
have to object to the jurisdiction of any such court, or to transfer or change
the venue of any such action or proceeding.

                                    AVENUE GROUP, INC.,  a Delaware corporation

                                    By:      /s/   Jonathan Herzog
                                       ---------------------------
                                    Name:  Jonathan Herzog
                                    Title:   Executive Vice President

                                    15303 Ventura Boulevard
                                    Suite 900
                                    Sherman Oaks, CA 91403EXHIBIT 10.2

                           MEMORANDUM OF UNDERSTANDING

For purposes of this communication, the capitalized terms and expressions used
below and not otherwise defined have the meanings given to them in the Farmin
Participation Agreement dated November 14, 2002 as amended by agreement dated
December 20 2002, (the "FPA"), the Joint Operating Agreement dated December 20,
2002, (the "JOA"), the Turnkey Contract (also referred to as the Tosun Drilling
Contract) dated 4 November 2002 (collectively referred to as the "Consortium
Agreements"). References to Avenue in this communication means Avenue Energy,
Inc.

It is not the intention of this Memorandum of Understanding to amend or
compromise the agreements and undertakings of the Parties as set out in the
Consortium Agreements. Rather, the purpose of this Memorandum of Understanding
is to clarify existing understandings of the Consortium Agreements. The
Consortium Agreements shall remain in full force and effect notwithstanding the
existence of this Memorandum of Understanding.

1. PARTIES. This Memorandum of Understanding ("MOU") is executed and shall
become effective on the date first set forth below by and between the members of
the Sayer Group Consortium., Avenue and Middle East Petroleum Services Limited
("MEPS") hereinafter referred to as the Parties.

2. PURPOSE. The purpose of this MOU is to clarify the terms and conditions of
operations and obligations in the performance of the Turnkey Contract by and
between Aladdin Middle East ("AME"), as Operator and acting on behalf of AME,
Ersan Petrol Sanayii A.S. and Avenue on one part; and, AME as Drilling
Contractor on the second part.

3. LEGAL EFFECT. Execution of this MOU by the Parties shall have the effect of
setting forth legally binding promises and obligations as described herein.

NOW, THEREFORE, for and in consideration of the terms, conditions and promises
set forth below, the Parties agree as follows:

4. DAYWORK PAYMENT. The Turnkey Contract sets forth certain obligations becoming
due and payable by the Operator to the Contractor for drilling performed on a
Daywork Basis ("Day Rate"). With respect to the Day Rate, the Parties have
agreed that Avenue shall pay US$250,000 (two hundred fifty thousand United
States dollars) as a one-time fee in full satisfaction of any and all payments
for the Day Rate under the Turnkey Contract regardless of the nature, reason,
condition or other cause giving rise to expenditures incurred in the operations
and completion of the Turnkey Contract and of Tosun-1 including deepening of the
well, costs associated with work stoppages, interruptions, governmental,
regulatory or other intervening force regardless of its source or affect
("Satisfaction Payment") .

5. PAYMENT UPON DISCOVERY. Clause 3.3 of the FPA shall be amended under separate
agreement to reflect the intention of the parties as agreed in this MOU, that in
consideration of Avenue's contribution of a Daywork Payment, Avenue's
obligations under 3.3(b) of the FPA shall be suspended unless and until a
Commercial Discovery at Tosun-1 Well is determined to exist and commercial sales
of oil from the Tosun-1 discovery well has occurred ("Commercial Sales"). If and
when Commercial Sales occur, AME agrees to defer payment of Avenue's
contribution under 3.3(b) by instituting a payment schedule whereby for each
Commercial Sales transaction, the portion of gross proceeds inured to Avenue
shall be retained and offset against any amount due and payable by Avenue under
Clause 3.3 until Avenue's obligations thereunder are satisfied. AME agrees to
maintain complete and accurate records of all Commercial Sales in accordance
with the Accounting Procedures of the JOA.

IF COMMERCIAL SALES DO NOT OCCUR, AVENUE'S OBLIGATIONS UNDER CLAUSE 3.3(B)
BECOME NULL AND VOID WITHOUT PREJUDICE. IN NO EVENT, SHALL CLAUSE 3.3 BE
INTERPRETED TO MODIFY THE AGGREGATE AMOUNT OF US$250,000 THAT MAY BE INVOICED TO
AVENUE UNDER CLAUSE 3.3 OF THE FPA.

<PAGE>

6. KARAKILISE TURNKEY CONTRACT. In anticipation of the preparation and execution
of a Karakilise Turnkey Contract, the Parties wish to clarify Clause 4 et seq of
the FPA. AME and Avenue agree that Clause 4.4 of the FPA represents Avenue's
total financial obligations in relation to the drilling of the Karakilise-1
Well; the sum of US$2,000,000 (two million United States dollars) in accordance
with the Karakilise Drilling Program. Clause 4.5 and 4.6 are unaffected by this
interpretation.

The purpose of this Clause 6 is to memorialize the understanding of the Parties
that Avenue shall not be required to contribute financially to any costs
associated with dry-hole drilling of the Karakilise-1 Well including any
deepening of the Well beyond the Turnkey Depth, any governmental, regulatory or
other expenditure regardless of its nature or source and consequence. Further,
AME understands that this Clause is set out to enable Avenue to anticipate,
entirely, its financial obligations under a Karakilise drilling program. The
objective of this Clause 6 is to negate any claim or demand by AME or any other
Party for financial contribution towards the drilling of the Karakilise-1 Well
above the Turnkey Amount.

7. KAHTA OPTION. For clarification, Clause 5.4(a) of the FPA as amended shall be
interpreted to mean that Avenue may, but is not obligated to require the
drilling or workover of Avenue Kahta Wells at any time before 14 November 2004.
However, failure by Avenue to require drilling or workover operations under
Clause 5.4(a) by effecting payment at least thirty (30) days prior to 14
November 2004 shall cause the Kahta Option to lapse on 14 November 2004 without
further rights related thereto. It is not a requirement under Clause 5.4(a) that
work undertaken pursuant to the Kahta Option be completed prior to 14 November
2004, only that drilling or workover operations begin before that date, absent
any agreement among the Parties to the contrary.

AME and Avenue shall come to terms with regard to the drilling schedule of the
Avenue Kahta Wells within 30 days of Avenue's request for a workover or drilling
of a new well. AME shall not delay commencement of workover or drilling of a new
well in connection pursuant to Clause 5.4 beyond a reasonable period and at any
rate, AME shall not delay commencement of a workover or drilling of a new well
request by Avenue by more than 60 days unless otherwise agreed by and between
Avenue and AME. Nothing in this MOU or in the FPA relating hereto shall be
interpreted to require Avenue to require AME to begin drilling under the Kahta
Option.

The Parties do hereby agree that all statements and representations made in this
Memorandum of Understanding, reflect their true intent and understanding of the
issues and subject matter referenced herein.

DATED: May 22, 2003

/s/ Jonathan Herzog
For and on behalf of Avenue Energy, Inc.

JONATHAN HERZOG, PRESIDENT
Title

/s/ Cem Sayer
For and on behalf of Aladdin Middle East, Ltd.

CEM SAYER, General Coordinator
Title

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