Document:

ex101.htm

    
 

    

    

    

    Effective
as from September 18th,
2008

    

    by
and

    between

    

    TEMASEK
INVESTMENTS INC.

    

    as
Optionor

    

    and

    

    AMAZON
GOLDSANDS LTD.

    

    as
Optionee

    

    

    

    

    _________________________________

    

    

    MINERAL
RIGHT OPTION AGREEMENT

    

    __________________________________

    

    

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    MINERAL RIGHT OPTION
AGREEMENT

    

    

    THIS
MINERAL RIGHT OPTION AGREEMENT (hereinafter the “Agreement”) made effective as
of the 18th day of September, 2008 (hereinafter the “Effective Date”) is
executed by and between:

    

    TEMASEK INVESTMENTS INC., a
company duly incorporated and organized under the laws of Panama with address
for delivery and notice located at Suite 1-A, #5, Calle Eusebio A. Morales, El
Cangrejo, Panama City, Panama (hereinafter the "Optionor" or “TEMASEK”) of the
first part; and

    

    AMAZON GOLDSANDS LTD., a
company organized under the laws of Nevada, United States of America, with
address for delivery and notice located at 200 South Virginia Street, 8th floor,
Reno, Nevada, United States of America (hereinafter the “Optionee” or “AMAZON”),
of the second part.

    

    Optionor
and Optionee collectively referred to as the Parties, and individually and
indistinctively referred to as the Party.

    

    WHEREAS

    

    (i)           Both
Parties are mining exploration and development companies with experience in the
identification and development of mining projects, particularly in the region of
South America.

    

    (ii)           AMAZON
is interested in acquiring the ownership and title of certain claim
applications, claims, and assorted mining rights, including all obligations
arisen therefrom, with respect to certain areas located in Peru as detailed in
Annex I hereto
(hereinafter the “Mineral Rights”) that are of the property and title of Río
Santiago Minerales S.A.C., a company duly incorporated and organized under the
laws of Peru (hereinafter “RIO SANTIAGO”).

    

    (iii)           TEMASEK
is the indirect beneficial owner of 100% interest in the Mineral Rights through
the direct and indirect control of different wholly owned subsidiaries, as
detailed below.

    

    (iii)           The
ownership of TEMASEK in the Mineral Rights is evidenced through (a) the direct
ownership of 1 share of the shareholding of RIO SANTIAGO, and (b) the direct
ownership of 100% of the outstanding shareholding in Beardmore Holdings Inc., a
company duly incorporated and organized under the laws of Panama, with address
for delivery and notice located at Suite 1-A, #5, Calle Eusebio A. Morales, El
Cangrejo, Panama City, Panama (hereinafter “BEARDMORE”), being BEARDMORE the
registered owner of 999 shares in RIO SANTIAGO. BEARDMORE and TEMASEK are the
registered owners of 100% of the outstanding shareholding in RIO SANTIAGO
represented in 1,000 shares.

     

    
      
         

      

      
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    (iv)           The
Optionor has agreed to grant four exclusive options (hereinafter, collectively
referred to as the “Options”, and each individually and indistinctively referred
to as the “Option”) to the Optionee, and the Optionee has agreed to receive the
Options, each such Options entitling the Optionor to acquire a twenty-five
percent (25%) undivided interest in and to the Mineral Rights in the manner
hereto below described, for an aggregate interest of a one hundred percent
(100%) undivided interest if all four Options are exercised, as detailed
herein.

    

    NOW THEREFORE THIS AGREEMENT
WITNESSES that in consideration of the covenants and agreements
hereinafter set forth the parties agree that:

    

    REPRESENTATIONS,
WARRANTIES AND COVENANTS

    

    1.1           The
Optionor represents, warrants and covenants (representation, warrants and
covenants that are extensive, when applicable, to the situation of its
subsidiaries BEARDMORE and RIO SANTIAGO) to and with the Optionee
that:

    

    a) it has been duly incorporated and
validly exists as a corporation in good standing under its laws of
origin;

    

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

    

    c) it has the requisite power,
authority and capacity to fulfil its obligations under this
Agreement;

    

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

    

    e) prior to the Effective Date, it has
obtained all authorizations, approvals, including regulatory approval, or
waivers that may be necessary or desirable in connection with the transactions
contemplated in this Agreement;

    

    f) there are no other consents,
approvals or conditions precedent to the performance of this Agreement which
have not been obtained;

    

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

     

    
      
         

      

      
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    h) the making of this Agreement and the
completion of the transactions contemplated hereby and the performance of and
compliance with the terms hereof does not and will not conflict with or result
in a breach of or violate any of the terms, conditions or provisions of any law,
judgment, order, injunction, decree, regulation or ruling of any court or
governmental authority, domestic or foreign, to which the Optionor is
subject;

    

    i) it is now, and will also be
thereafter at the time of legal transfer of interests in the Mineral Rights when
any of the Options are exercised, the registered and beneficial owner of the
Mineral Rights free and clear of all liens, charges and claims of others and no
taxes, royalties or lease payments or like amounts are due in respect of any of
the mineral claims that comprised the Mineral Rights;

    

    j) there is no adverse claim or
challenge against or to the ownership of or title to the interest it has on
BEARDMORE and RIO SANTIAGO and on the Mineral Rights, nor to its knowledge is
there any basis therefore, and there are no outstanding agreements or options to
acquire or purchase any shares in BEARDMORE and RIO SANTIAGO and on the Mineral
Rights or any portion thereof, and no person other than the Optionor pursuant to
the provisions hereof, has any interest whatsoever in BEARDMORE and RIO SANTIAGO
and in the production from any of the mineral claims comprising the Mineral
Rights;

    

    k) the Mineral Rights have been duly
and validly located and recorded in a good and minerlike manner pursuant to
applicable mining laws in Peru;

    

    l) all permits and licenses covering
the Mineral Rights as they currently stand have been duly and validly issued
pursuant to applicable mining laws in Peru and are in good standing by the
proper doing and filing of assessment work and the payment of all fees, taxes
and rentals in accordance with the requirements of applicable mining laws in
Peru and the performance of all other actions necessary in that regard;
and

    

    m) it requires no third party consent
of any kind to enter into this Agreement and grant the Options contemplated
hereby.

    

    1.2           The
Optionee represents, warrants and covenants to and with the Optionor
that:

     

    a) it has
been duly incorporated and validly exists as a corporation in good standing
under its laws of origin;

     

    b)
neither the execution and delivery of this Agreement by the Optionee nor the
performance by the Optionee of its obligations hereunder conflicts with the
Optionee’s constating documents or any agreement to which it is
bound;

     

     

    
      
         

      

      
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    c) the
execution, delivery and performance by the Optionee of this Agreement and any
other agreement or instrument to be executed and delivered by it hereunder and
the consummation by it of all the transactions contemplated hereby and thereby
have been duly authorised by all necessary corporate action on the part of the
Optionee; and

     

    d)
excepting only as otherwise disclosed herein, the Optionee is not subject to, or
a party to, any charter or by-law restriction, any law, any claim, any
encumbrance or any other restriction of any kind or character which would
prevent the execution of its obligations as hereof or the consummation of the
transaction contemplated by this Agreement or any other agreement or instrument
to be executed and delivered by the Optionee hereunder.

     

    The
representations and warranties contained hereof are provided for the exclusive
benefit of the other Party and a breach of any one or more thereof may be waived
by the non-breaching Party in whole or in part at any time without prejudice to
its rights in respect of any other breach of the same or any other
representation or warranty. 

     

    GRANT
AND EXERCISE OF OPTIONS

     

    2.1           The
Optionor hereby grants to the Optionee the sole and exclusive right and option
to acquire a one hundred percent (100%) undivided interest in the Mineral
Rights, such 100% interest to be free and clear of all liens, charges,
encumbrances, security interests and adverse claims.

     

    2.2           The
Parties agreed that the Optionee may exercise the Options in four separate
twenty-five percent (25%) increments, as described below, each such increment
being its own Option.

     

    (a)           25%
Option

     

    The
Optionee may exercise the initial twenty-five percent (25%) option to acquire a
25% interest in the Mineral Rights in accordance with the terms set out below
(hereinafter, the “25% Option”).

     

    In order
to exercise the 25% Option the Optionee shall:

     

    (i) pay,
on signing of this Agreement, a non-refundable amount of $ 250,000 (United
States Dollars Two Hundred and Fifty Thousand) to the order and the direction of
the Optionor; and

     

    (ii)
issue, within 5 business days as from the Effective Date, 2,500,000 Optionee
Shares to the order and the direction of the Optionor, or whoever persons the
Optionor indicates; and

     

    
      
         

      

      
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    (iii)
pay, within 90 days as from the Effective Date, further $ 250,000 (United States
Dollars Two Hundred and Fifty Thousand) to the order and the direction of the
Optionor. 

     

    For the
purposes of this Agreement the Optionee is deemed to have fully exercised the
25% Option only once all three obligations described above in points (i), (ii)
and (iii) have been completed.

     

    Upon
exercise of the 25% Option by the Optionee, the Optionor will immediately
proceed to transfer to Optionee, or to the person the Optionee indicates, 25% of
all the outstanding shareholding in BEARDMORE.

     

    (b)           50%
Option

     

    Subject
to the prior and due and complete exercise by the Optionee of the 25% Option in
accordance with the paragraph before, the Optionee may exercise the second
twenty-five percent (25%) option to acquire an additional 25% interest in the
Mineral Rights, in accordance with the terms set out below (hereinafter, the
“50% Option”).

     

    In order
to exercise the 50% Option the Optionee, within 6 months as from the Effective
Date, shall:

     

    (i) have
exercised and completed the 25% Option; and

     

    (ii) pay
$ 750,000 (United States Dollars Seven Hundred and Fifty Thousand) to the order
and the direction of the Optionor; and

     

    (iii)
issue 3,500,000 Optionee Shares to the order and the direction of the Optionor,
or whoever persons the Optionor indicates.

     

    For the
purposes of this Agreement the Optionee is deemed to have fully exercised the
50% Option only once all three obligations described above in points (i), (ii)
and (iii) have been completed.

     

    Upon
exercise of the 50% Option by the Optionee, the Optionor will immediately
proceed to transfer to Optionee, or to the person the Optionee indicates, an
additional 25% of all the outstanding shareholding in BEARDMORE.

     

    (c)           75%
Option

     

    Subject
to the prior and due and complete exercise by the Optionee of the 50% Option in
accordance with the paragraph before, the Optionee may exercise the third
twenty-five percent (25%) option to acquire an additional 25% interest in the
Mineral Rights, in accordance with the terms set out below (hereinafter, the
“75% Option”).

     

     

    
      
         

      

      
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    In order
to exercise the 75% Option the Optionee, within 12 months as from the Effective
Date, shall:

     

    (i) have
exercised and completed the 50% Option; and

     

    (ii) pay
$ 1,250,000 (United States Dollars One Million Two Hundred and Fifty Thousand)
to the order and the direction of the Optionor; and

     

    (iii)
issue 4,500,000 Optionee Shares to the order and the direction of the Optionor,
or whoever persons the Optionor indicates.

     

    For the
purposes of this Agreement the Optionee is deemed to have fully exercised the
75% Option only once all three obligations described above in points (i), (ii)
and (iii) have been completed.

     

    Upon
exercise of the 75% Option by the Optionee, the Optionor will immediately
proceed to transfer to Optionee, or to the person the Optionee indicates, an
additional 25% of all the outstanding shareholding in BEARDMORE.

     

    (d)           100%
Option

     

    Subject
to the prior and due and complete exercise by the Optionee of the 75% Option in
accordance with the paragraph before, the Optionee may exercise the fourth and
final twenty-five percent (25%) option to acquire an additional 25% interest in
the Mineral Rights, in accordance with the terms set out below (hereinafter, the
“100% Option”).

     

    In order
to exercise the 100% Option the Optionee, within 18 months as from the Effective
Date, shall:

     

    (i) have
exercised and completed the 75% Option; and

     

    (ii) pay
$ 2,500,000 (United States Dollars Two Million Five Hundred Thousand) to the
order and the direction of the Optionor; and

     

    (iii)
issue 5,500,000 Optionee Shares to the order and the direction of the Optionor,
or whoever persons the Optionor indicates.

     

    For the
purposes of this Agreement the Optionee is deemed to have fully exercised the
100% Option only once all three obligations described above in points (i), (ii)
and (iii) have been completed.

     

    Upon
exercise of the 100% Option by the Optionee, the Optionor will immediately
proceed to transfer to Optionee, or to the person the Optionee indicates, the
final and remaining 25% of all the outstanding shareholding in BEARDMORE.
Additionally, upon

     

    
      
         

      

      
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    exercise
of the 100% Option, the Optionor shall become holder of the one (1) share that
currently holds in RIO SANTIAGO as nominee and on trust for the exclusive and
sole benefit and interest of the Optionee. The Optionor hereby undertakes to the
Optionee at all times to exercise all rights in respect of the share that holds
in RIO SANTIAGO strictly in accordance with the Optionee
instructions.

     

    On
completion of the 100% Option the Optionee shall be the owner of one hundred
percent (100%) undivided interest in the Mineral Rights through the direct
ownership of 100% of the outstanding shareholding of BEARDMORE and indirect
ownership of 100% of the outstanding shareholding of RIO SANTIAGO. 

     

    

    NET
RETURNS ROYALTY

     

    3.1           Upon
completion by Optionee of the 100% Option, the Optionee shall recognize to the
Optionor a 2.5% Net Returns Royalty, where Net Returns Royalty has the meaning
set out in Annex
II (hereinafter the “NET RETURN ROYALTY”). The NET RETURN ROYALTY will be
calculated and paid to the Optionor or to its appointed nominees in accordance
with the Annex
II.

     

    3.2           As
from 90 days from the exercise and completion of the 100% Option, the Optionee
shall have the right to acquire 1% of NET RETURN ROYALTY from the Optionor for
the total amount of $ 2,000,000 (United States Dollars Two
Million).

     

    JOINT
VENTURE DEVELOPMENT

     

    4.1           Following
the due and complete acquisition by the Optionee of 50% interest in the Mineral
Rights under this Agreement and with the Optionee failing to acquire the 100%
interest in the Mineral Rights, for any reason whatsoever, the Optionor and the
Optionee will thereby be deemed to form a Joint Venture for the purpose of
carrying out further development work and production on the Mineral Rights and
will, in good faith, negotiate and execute a Joint Venture Agreement, under
which the Optionee will be the operator of the mining project to develop. The
interest of the Parties in the Mineral Rights shall be the interest of the
Parties under the Joint Venture Agreement (hereinafter the “Joint Venture
Development”).

     

    4.2           Under
the Joint Venture Development, the Optionee shall have the whole responsibility
for developing a feasible mining project and all necessary facilities for the
extraction, crushing, processing and beneficiation of commercially valuable
minerals, including all necessary facilities for compliance with the applicable
laws, including environmental laws governing mining activity in Peru
(hereinafter the “Feasible Project”). All necessary costs and investment
required for the developing of a Feasible Project shall be supported exclusively
by the Optionee. Optionor shall have a carried free interest in the Mineral
Rights.

     

     

    
      
         

      

      
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    4.3           If
under the Joint Venture Development, a Feasible Project is not developed within
3 years as from the Effective Date, the Optionee shall pay to the Optionor and
advance minimum mining royalty per year of $ 500,000 (United States Dollars Five
Hundred Thousand), that will be deducted from the NET RETURN ROYALTY
(hereinafter the “Advance Minimum Royalty”).

     

    OBLIGATIONS
OF OPTIONOR DURING OPTION PERIOD

     

    5.1           During
the 18 months as from the Effective Date, the Optionor will:

     

    a)
maintain in good standing the Mineral Rights that are in good standing on the
date hereof by the performance of all actions (except for those economic
obligations arisen as from the Effective Date of this Agreement, which shall be
of the responsibility of the Optionee) which may be necessary under Peruvian law
in that regard and in order to keep such Mineral Rights free and clear of all
liens and other charges arising from the Optionee’s activities thereon except
those at the time contested in good faith by the Optionee;

    

    b) maintain in good standing both
BEARDMORE and RIO SANTIAGO, and the shareholding of both companies free and
clear of all liens;

    

    c) restrain from issuing any additional
shares or cause to issue any additional shares either in BEARDMORE and/or RIO
SANTIAGO;

     

    d) restrain from transferring any of
its shares in BEARDMORE and/or in RIO SANTIAGO to any other third party and/or
cause to transfer any shares in RIO SANTIAGO to any other third party;
and

     

    e) permit
the directors, officers, employees and designated consultants of the Optionee,
at their own risk, access to the Mineral Rights at all reasonable times, and
providing the Optionee agrees to indemnify the Optionor against and to save the
Optionor harmless from all costs, claims, liabilities and expenses that the
Optionor may incur or suffer as a result of any injury (including injury causing
death) to any director, officer, employee or designated consultant of the
Optionee while on the Mineral Rights.

     

    OBLIGATIONS
OF OPTIONEE DURING OPTION PERIOD

     

    6.1           During
the 18 months as from the Effective Date, the Optionee will:

     

    a) do all
work on the Mineral Rights in a good and workmanlike fashion and in accordance
with all applicable laws, regulations, orders and ordinances of any governmental
authority; and

     

     

    
      
         

      

      
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    b)
indemnify and save the Optionor harmless in respect of any and all costs,
claims, liabilities and expenses arising out of the Optionee’s activities
through BEARDMORE and RIO SANTIAGO and/or on the Mineral Rights.

     

    ARBITRATION

     

    7.1           All
questions or matters in dispute with respect to the interpretation of this
Agreement will, insofar as lawfully possible, be submitted to arbitration
pursuant to the terms hereof using “final offer” arbitration
procedures.

     

    7.2           It
will be a condition precedent to the right of any party to submit any matter to
arbitration pursuant to the provisions hereof, that any party intending to refer
any matter to arbitration will have given not less than 10 days’ prior written
notice of its intention so to do to the other party together with particulars of
the matter in dispute.

     

    7.3           On
the expiration of such 10 days, the party who gave such notice may proceed to
commence procedure in furtherance of arbitration as provided in this
Section.

     

    7.4           The
party desiring arbitration (the “First Party”) will nominate in writing three
proposed arbitrators, and will notify the other party (the “Second Party”) of
such nominees, and the other party will, within 10 calendar days after receiving
such notice, either choose one of the three or recommend three nominees of its
own. All nominees of either party must hold accreditation as either a lawyer,
accountant or mining engineer. If the First Party fails to choose one of the
Second Party’s nominees then all six names shall be placed into a hat and one
name shall be randomly chosen by the president of the First Party and that
person if he/she is prepared to act shall be the nominee. Except as specifically
otherwise provided in this Section the arbitration herein provided for will be
conducted in accordance with the UNCITRAL Arbitration Rules and the place of
arbitration shall be Reno, Nevada, United States of America. The parties shall
thereupon each be obligated to proffer to the Arbitrator within 21 calendar days
of his/her appointment a proposed written solution to the dispute and the
arbitrator shall within 10 calendar days of receiving such proposals choose one
of them without altering it except with the consent of both
parties.

     

    7.5           The
expense of the arbitration will be paid as specified in the award.

     

    7.6           The
parties agree that the award of the arbitrator will be final and binding upon
each of them.

     

    DEFAULT
AND TERMINATION

     

    8.1           If
at any time during the term of this Agreement either party fails to perform any
obligation hereunder or any representation or warranty given by it proves to be
untrue, then the other party may terminate this Agreement (without prejudice to
any other rights it may have) providing:

     

     

    
 

    
      
         

      

      
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              (i)

            	
              it
      first gives to the party allegedly in default a notice of default
      containing particulars of the obligation which such has not performed, or
      the warranty breached;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      other party does not dispute the default, then if it is reasonably
      possible to cure the default without irreparable harm to the
      non-defaulting party, the defaulting party does not, within 30 calendar
      days after delivery of such notice of default, cure such default by
      appropriate payment or commence to correct such default and diligently
      prosecute the matter until it is
corrected.

            

    

    

    NOTICES

    

    9.1           All
notices and other communications in connection with this Agreement must be in
writing and given by (i) hand delivery (ii) through a major international
courier service, or (iii) facsimile transmissions, in each case addressed as
specified below or in any subsequent notice from the intended recipient to the
party sending the notice. Such notices and communications will be effective upon
delivery if delivered by hand, upon receipt if sent by international courier
service, or upon receipt if sent by facsimile transmission. Notices shall be
addressed as follows:

     

    AMAZON

    200 South
Virginia Street, 8th
floor,

    Reno,
Nevada,

    United
States of America

    Fax:
(775) 686 2401

     

    TEMASEK

    Suite
1-A, #5, Calle Eusebio A. Morales,

    El
Cangrejo, Panama City,

    Panama

    Fax:
(507) 264 7521

    

    GOVERNING
LAW

    

    10.1           This
assignment agreement and any dispute arising hereunder will be governed by the
laws of the state of Nevada, United States of America, without giving effect to
the conflict of laws provisions thereof.

     

    
 

    
      
         

      

      
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    10.2           Each
of the Optionor and the Optionee hereby irrevocable submits to the exclusive
jurisdiction of the courts of the state of Nevada, United States of America, in
respect of any action or proceeding brought against it by the Optionor or the
Optionee, respectively, arising under this Agreement.

    

    ENTIRE
AGREEMENT

    

    11.1           This
Agreement represents the final agreement between the Parties with respect to the
subject matter hereof and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the Parties.

    

    EXECUTION
IN COUNTERPARTS

    

    11.2           This
Agreement is executed in two (2) counterparts and by the Parties hereto in
separate counterparts, each of which when so executed will be deemed to be an
original and both of which when taken together will constitute one and the same
agreement.

    

    IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as
of the date first above written.

    

    
      	
              TEMASEK
      INVESTMENTS INC.

            	
              AMAZON
      GOLDSANDS LTD.

            
	
               

               

              By: /s/ Marisela
      Simmons                                     
      

                          
      Marisela Simmons

            	
               

               

              By:
      /s/  Hector Luis
      Ponte                                 
      

                            Hector
      Luis Pointe

            

    

    

    
      
         

      

      
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    ANNEX
I

    
      

       

      
        	
                Name

              	
                Area
      (ha)

              	
                Departament

              	
                Province

              	
                District

              	
                Observation

                 

              
	
                Bianka

                1

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Bianka

                2

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Bianka

                3

              	
                900

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Bianka

                4

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Bianka

                6

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Bianka

                7

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Dalma

                1

              	
                1000

              	
                Amazonas

              	
                Condorcanqui

              	
                Nieva

              	
                Partially
      overlap Zona de

                Amortiguamiento
      ANP

              
	
                Dalma

                2

              	
                1000

              	
                Amazonas

              	
                Condorcanqui

              	
                Nieva

              	
                Partially
      overlap Zona de

                Amortiguamiento
      ANP

              
	
                Dalma

                3

              	
                1000

              	
                Amazonas

              	
                Condorcanqui

              	
                Nieva

              	
                Partially
      overlap Zona de

                Amortiguamiento
      ANP

              
	
                Dalma

                4

              	
                800

              	
                Amazonas

              	
                Condorcanqui

              	
                Nieva

              	
                Partially
      overlap Zona de

                Amortiguamiento
      ANP

              
	
                Dalma
      5

              	
                500

              	
                Amazonas

              	
                Condorcanqui

              	
                Nieva

              	
                Partially
      overlap Zona de

                Amortiguamiento
      ANP

              
	
                Dorotea

                1

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Dorotea

                2

              	
                900

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Dorotea

                3

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Dorotea

                4

              	
                800

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Dorotea

                5

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	 
      
	
                Dorotea

                6

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	
                Partially
      overlap Zona de

                Amortiguamiento
      ANP

              
	
                Dorotea

                7

              	
                1000

              	
                Loreto

              	
                Datem
      del Marañon

              	
                Manseriche

              	
                Fully
      overlap Zona de

                Amortiguamiento
      ANP

              

      

       

       

    

    
      
        
        

      

      
        Page 13
of 16

    

    
      
        
        

      

      
        Page 14
of 16

        
          

        

      

      
        
        

      

    

     

    ANNEX
II

    

    NET
RETURNS ROYALTY

    

    Pursuant
to the Agreement to which this Exhibit is attached, Optionee (for the purposes
herein the “Payee”) will be entitled to a royalty equal to 2.5% of net returns
(the “Net Returns Royalty”) payable by Optionor (“Payor”) as set forth
below.

    

    Net
Returns Royalty

    

    A.                      “Net Returns Royalty” means the
aggregate of:

    

    
      	
               
      

            	
              1.

            	
              all
      revenues from the sale or other disposition of ores, concentrates or
      minerals produced from the mineral properties arisen as from the Mineral
      Rights (the “Properties”); and

            

    

    

    
      	
               
      

            	
              2.

            	
              all
      revenues from the operation, sale or other disposition of any facilities
      the cost of which is included in the definition of “Operating Expenses”,
      “Capital Expenses” or “Exploration Expenses”; less (without duplication)
      Working Capital, Operating Expenses, Capital Expenses and Exploration
      Expenses.

            

    

    

    B.                      “Working Capital” means the
amount reasonably necessary to provide for the operation of the mining operation
on the Properties and for the operation and maintenance of the Facilities for a
period of six months.

    

    C.                      “Operating Expenses” means all
costs, expenses, obligations, liabilities and charges of whatsoever nature or
kind incurred or chargeable directly or indirectly in connection with Commercial
Production from the Properties and in connection with the maintenance and
operation of the Facilities, all in accordance with generally accepted
accounting principles, consistently applied, including, without limiting the
generality of the foregoing, all amounts payable in connection with mining,
handling, processing, refining, transporting and marketing of ore, concentrates,
metals, minerals and other products produced from the Property, all amounts
payable for the operation and maintenance of the Facilities including the
replacement of items which by their nature require periodic replacement, all
taxes (other than income taxes), royalties and other imposts and all amounts
payable or chargeable in respect of reasonable overhead and administrative
services.

    

    D.                      “Capital Expenses” means all
expenses, obligations and liabilities of whatsoever kind (being of a capital
nature in accordance with generally accepted accounting principles) incurred or
chargeable, directly or indirectly, with respect to the development,
acquisition, redevelopment, modernization and expansion of the
Properties

     

    
      
         

      

      
        Page 15
of 16

        
          

        

      

      
         

      

    

     

    
 

    and the
Facilities, including, without limiting the generality of the foregoing,
interest thereon from the time so incurred or chargeable at a rate per annum
from time to time equal to prime rate established by the Bank of America, New
York Branch, New York, plus 2 percent per annum, but does not include Operating
Expenses nor Exploration Expenses.

    

    E.                      “Exploration Expenses” means
all costs, expenses, obligations, liabilities and charges of whatsoever nature
or kind incurred or chargeable, directly or indirectly, in connection with the
exploration and development of the Properties including, without limiting the
generality of the foregoing, all costs reasonably attributable, in accordance
with generally accepted accounting principles, to the design, planning, testing,
financing, administration, marketing, engineering, legal, accounting,
transportation and other incidental functions associated with the exploration
and mining operation contemplated by this agreement and with the Facilities, but
does not include Operating Expenses nor Capital Expenses.

    

    F.                      “Facilities” means all plant,
equipment, structures, roads, rail lines, storage and transport facilities,
housing and service structures, real property or interest therein, whether on
the Properties or not, acquired or constructed exclusively for the mining
operation on the Properties contemplated by this Agreement (all commonly
referred to as “infrastructure”).

    

    G.                      “Commercial Production” means
the operation of the Properties or any portion thereof as a producing mine and
the production of mineral products therefrom (but does not include bulk
sampling, pilot plant or test operations).

    

    Payment

    

    Net Returns shall be calculated for
each calendar quarter in which Net Returns are realized, and payment as due
hereunder shall be made within 30 days following the end of each such calendar
quarter. Such payments shall be accompanied by a statement summarizing the
computation of Net Returns and copies of all relevant settlement sheets. Such
quarterly payments are provisional and subject to adjustment within 90 days
following the end of each calendar year.  Within ninety days after the
end of each calendar year, Payor shall deliver to Payee an unaudited statement
of royalties paid to Payee during the year and the calculation thereof. All year
end statements shall be deemed true and correct six months after presentation,
unless within that period Payee delivers notice to Payor specifying with
particularity the grounds for each exception.  Payee shall be
entitled, at Payees’s expense, to an annual independent audit of the statement
by a national firm of chartered accountants, only if Payee delivers a demand for
an audit to Payor within four months after presentation of the related year-end
statement.

    

    

    

    

    

    
      
         

      

      
        Page 16
of 16ex10_1.htm

    
      
        

      

    

    EXHIBIT
10.1

    

    UNITED
STATES DISTRICT COURT

    SOUTHERN
DISTRICT OF TEXAS

    HOUSTON
DIVISION

    

    
      	
              QUICKSILVER
      RESOURCES INC.,

            	
              §

            	 
      
	 
      	
              §

            	 
      
	
              PLAINTIFF,

            	
              §

            	 
      
	 
      	
              §

            	 
      
	
              vs.

            	
              §

            	
              CIVIL
      ACTION NO. H-08-868

            
	 
      	
              §

            	 
      
	
              EAGLE
      DRILLING, LLC AND EAGLE

            	
              §

            	 
      
	
              DOMESTIC
      DRILLING OPERATIONS,

            	
              §

            	 
      
	
              LLC,

            	
              §

            	 
      
	 
      	
              §

            	 
      
	
              DEFENDANTS.

            	
              §

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              IN
      RE:

            	
              §

            	 
      
	 
      	
              §

            	 
      
	
              BLAST
      ENERGY SERVICES, INC. and

            	
              §

            	
              JOINTLY
      ADMINISTERED

            
	 
      	
              §

            	
              CHAPTER 11

            
	
              EAGLE
      DOMESTIC DRILLING

            	
              §

            	
              UNDER BANKRUPTCY CASE
      NO.

            
	
              OPERATIONS,
      LLC,

            	
              §

            	
              07-30424-H4-11

            
	 
      	
              §

            	 
      
	
              DEBTORS.

            	
              §

            	 
      

    

    

    COMPROMISE SETTLEMENT AND
RELEASE AGREEMENT

    

    This
Compromise Settlement and Release Agreement (the “Agreement”) is executed on the
one hand by Quicksilver Resources Inc. (“Quicksilver”) and on the other hand by
Eagle Domestic Drilling Operations, LLC (“EDDO”) and Blast Energy Services, Inc.
(“Blast”) effective as of the date stated below.  Quicksilver, EDDO
and Blast are sometimes referred to collectively as the “Parties” and
individually as a “Party.”

    I.           Quicksilver
Releasees.

    The releasees who shall benefit from
the promises, covenants and/or warranties made by EDDO and Blast are as
follows:

    
      	
               
      

            	
              A.

            	
              Quicksilver;

            

    

    
      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      
        	
                 
      

              	
                B.

              	
                All
      agents, employees, shareholders, directors, officers, fiduciaries,
      attorneys or other representatives of Quicksilver, specifically including
      but not limited to Jeff Cook; and

              

      

      

      
        	
                 
      

              	
                C.

              	
                All
      subsidiaries, parent corporations, affiliated entities or sister
      corporations of Quicksilver or any of their successors or assigns that
      have in any way conducted any activity or been requested to have had any
      activity associated with EDDO or
Blast.

              

      

      

      As used
in this Agreement, the term “Quicksilver Releasees” shall be construed as
broadly as possible to include all of the foregoing named or described persons
or entities.

      II.           EDDO
Releasees.

      The releasees who shall benefit from
the promises, covenants and/or warranties made by Quicksilver are as
follows:

      A.           EDDO;

      

      B.           Blast
(EDDO’s parent company);

      

      
        	
                 
      

              	
                C.

              	
                All
      agents, employees, shareholders, directors, officers, members, managers,
      fiduciaries, attorneys or other representatives of EDDO and Blast;
      and

              

      

      

      
        	
                 
      

              	
                C.

              	
                All
      subsidiaries, parent corporations, affiliated entities or sister
      corporations of EDDO or any of their successors or assigns that have in
      any way conducted any activity or been requested to have had any activity
      associated with Quicksilver.

              

      

      

      As used
in this Agreement, the term “EDDO Releasees” shall be construed as broadly as
possible to include all of the foregoing named or described persons or
entities.  Expressly excluded from the definition of “EDDO Releasees”
are Eagle Drilling, LLC (“Eagle”) and any of its subsidiaries, parent
corporations, affiliated entities or sister corporations, agents, employees,
shareholders, directors, officers, members, managers, fiduciaries, attorneys or
other representatives, including but not limited to Rodney Thornton and Richard
Thornton (the “Eagle parties”).

      III.           Recitals.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        A.           In
March 2006, Quicksilver and Eagle entered into three International Association
of Drilling Contractors Daywork Drilling Contracts (collectively the
“Contracts”) relating to Eagle drilling rig numbers 14, 15 and 16 (collectively
the “Rigs”).  Disputes arose as to whether one or more of the Rigs
comported with the specifications set forth in the Contracts and whether
Quicksilver improperly terminated or repudiated one or more of the
Contracts.  As a result of said disputes, Quicksilver initiated suit
against EDDO and Eagle in Tarrant County, Texas, which suit and the claims made
therein ultimately became a part of the above-captioned action (the
“Lawsuit”).  EDDO asserted counterclaims against Quicksilver in the
Lawsuit.

        B.           The
Court in the Lawsuit has found that Eagle assigned the Rigs and the Contracts to
EDDO.

      

      C.           As
a result of thorough discussions and negotiations, the Parties have determined
it is in their best interests to resolve their current disputes on the terms and
conditions set forth in this Agreement.

      IV.           Settlement
Provisions.

      NOW, THEREFORE, KNOW ALL MEN BY THESE
PRESENTS that for the consideration stated in this Agreement, the receipt and
sufficiency of which is hereby acknowledged by each of the Parties, it is agreed
as follows:

      A.           Consideration.

      1.           As
consideration for this Agreement, Quicksilver shall pay or cause to be paid to
EDDO the total sum of Ten Million and No/100 Dollars ($10,000,000.00), to be
paid as follows:

      
        	
                 
      

              	
                a.

              	
                Five
      Million and No/100 Dollars ($5,000,000.00) contemporaneously with EDDO’s
      and Blast’s execution of this
Agreement;

              

      

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  b.

                	
                  One
      Million and No/100 Dollars ($1,000,000.00) on or before the first (1st)
      anniversary of EDDO’s and Blast’s execution of this
    Agreement;

                

        

        
          	
                   
      

                	
                  c.

                	
                  Two
      Million and No/100 Dollars ($2,000,000.00) on or before the second (2nd)
      anniversary of EDDO’s and Blast’s execution of this Agreement;
      and

                

        

        
          	
                   
      

                	
                  d.

                	
                  Two
      Million and No/100 Dollars ($2,000,000.00) on or before the third (3rd)
      anniversary of EDDO’s and Blast’s execution of this
    Agreement.

                

        

      

      2.           If
either EDDO or Blast files a voluntary petition pursuant to the U.S. Bankruptcy
Code, 11 U.S.C., §101 et.
seq. (as amended or replaced), or if an involuntary bankruptcy petition
is filed against either EDDO or Blast pursuant to the U.S. Bankruptcy Code and
an order for relief is thereafter entered against either EDDO or Blast, then
Quicksilver shall be automatically relieved of any obligation to make any
payments under this Agreement which become due and payable on or after the date
on which any such bankruptcy petition (whether voluntary or involuntary) was
filed by or against either EDDO or Blast.  In the case of an
involuntary petition, if a motion for reconsideration of the order for relief is
filed and granted, resulting in the order for relief being withdrawn or
dismissed, then Quicksilver’s payment obligations shall resume and/or any
payments not made as a result of the initial entry of the order for relief shall
be brought current.  For example, if either EDDO or Blast files a
voluntary petition after the first anniversary, but before the second
anniversary, of EDDO’s execution of this Agreement, then Quicksilver will be
automatically relieved from making the payments 1.c. and 1.d.
above.  Likewise, if an involuntary petition is filed
against

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      either
EDDO or Blast after the first anniversary, and an order for relief is thereafter
entered against either EDDO or Blast before the second anniversary of EDDO’s
execution of this Agreement, then Quicksilver will likewise be automatically
relieved from making the payments due in 1.c. and 1.d.; provided, however, for
purposes of this example, if the order for relief regarding an involuntary
petition is withdrawn or dismissed after reconsideration as referenced above,
then, in such event, Quicksilver’s obligations under 1.c. and 1.d. shall be
automatically reinstated and shall be due and payable on the dates referenced in
paragraph 1 above.  However, the filing of a voluntary or involuntary
bankruptcy case by or against either EDDO or Blast shall not affect any other
relief granted in this agreement, including but not limited to the mutual
releases provided herein, which shall remain in effect and continue to be valid
and enforceable.

      3.           Unless
otherwise directed in writing, all of the foregoing payments shall be made
payable to “Eagle Domestic Drilling Operations, LLC” and tendered to its
attorneys, Maloney Martin, LLP, in trust for EDDO.  A payment shall be
deemed timely if postmarked for mailing by first class United States mail on or
before the date on which it is due, or if wire transfer instructions are timely
provided, if a wire transfer is initiated on or before the date on which the
payment is due.  In the event Quicksilver fails to make a timely
payment under this Agreement and if such failure has not been cured within ten
(10) days after receipt of written notice from EDDO, then all remaining payment
obligations to EDDO shall be accelerated and become due and owing.

      4.           In
consideration of Quicksilver’s promises, covenants and payments stated herein,
EDDO, and Blast completely RELEASE and forever discharge each and all of the
Quicksilver Releasees from any and all past or present claims, rights, damages,
costs, benefits,

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      expenses
and compensation of any nature whatsoever, whether based upon tort, contract,
statute, common law or any other theory or basis of recovery, and whether for
compensatory, statutory or exemplary damages or for equitable relief, which EDDO
or Blast now hold, in any way related to the Contracts, the Rigs, any claims
that have or could have been asserted in the Lawsuit or any other dealings among
the Parties up to and including the effective date of this
Agreement.  This is intended to be and shall be construed as a general
release providing the Quicksilver Releasees the greatest protection allowable
under the law as to the released claims.

      5.           In
consideration of EDDO’s and Blast’s promises, covenants and payments stated
herein, Quicksilver completely RELEASES and forever discharges each and all of
the EDDO Releasees from any and all past or present claims, rights, damages,
costs, benefits, expenses and compensation of any nature whatsoever, whether
based upon tort, contract, statute, common law or any other theory or basis of
recovery, and whether for compensatory, statutory or exemplary damages or for
equitable relief, which Quicksilver now holds, in any way related to the
Contracts, the Rigs, any claims that have or could have been asserted in the
Lawsuit or any other dealings among the Parties up to and including the
effective date of this Agreement.  This is intended to be and shall be
construed as a general release providing the EDDO Releasees the greatest
protection allowable under the law as to the released claims.

      6.           EDDO
shall not assign, sell or otherwise convey to any third party, other than Blast,
its right to receive payments from Quicksilver under this Agreement; provided,
however, EDDO may assign a portion of said payments to its attorneys as attorney
fees.

      7.           As
additional consideration for this Agreement, EDDO and Quicksilver, through their
respective counsel, shall request that the Court dismiss all of their claims in
the Lawsuit with prejudice.  If necessary or appropriate, EDDO shall
seek any court approval of this Agreement and the settlement it evidences that
is required by its Amended Plan of

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Reorganization
and EDDO’s counsel may also disclose the terms of this Agreement to the extent
necessary to seek court approval of their attorney fees.

      8.           As
additional consideration for this Agreement, each of the Parties agrees to pay
its respective costs and attorney fees related to the Lawsuit and this
Agreement.

      9.           This
Agreement is not intended to affect, and shall not affect, any claims or
defenses as between any Party on the one hand and the Eagle parties on the other
hand.  It is further agreed that under no circumstances should any
action taken by or
on behalf of the Eagle parties have any effect on or in any way modify or reduce
Quicksilver’s obligations under the terms of this Agreement

      B.           Warranty
of Capacity to Execute Agreement and Release.  Each Party
represents and warrants that the person signing this Agreement on its behalf has
the full legal right, capacity and authority to do so and to make the promises,
representations and warranties contained herein.  Each Party further
represents that it has not sold, assigned, transferred, conveyed or otherwise
disposed of any of the claims, demands, obligations or causes of action referred
to in this Agreement, except to any extent an assignment has been made to any
Party’s attorney to cover attorney fees.

      C.           Indemnity.

      1.           Quicksilver
shall HOLD HARMLESS AND INDEMNIFY each of the EDDO Releasees from and against
any and all claims, demands, obligations or causes of action made by anyone
claiming by, through or under Quicksilver related to the claims released herein,
together with any costs, expenses or attorney fees incurred as a
result.

      2.           EDDO
and Blast shall HOLD HARMLESS AND INDEMNIFY each of the Quicksilver Releasees
from and against any and all claims, demands, obligations or causes of action
made by anyone claiming by, through or under EDDO or Blast or either of them
related to

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      the
claims released herein, together with any costs, expenses or attorney fees
incurred as a result.  Notwithstanding the provisions of this clause,
it is specifically agreed that EDDO and the EDDO Releasees shall have no
obligation to indemnify or defend Quicksilver or the Quicksilver Releasees from
and against any and all claims, demands, obligations or causes of action made by
the Eagle parties.

      D.           Successors
and Assigns Bound.  This Agreement
shall bind and benefit each Party’s successors, predecessors, agents, employees,
representatives, counsel, owners, directors, shareholders, members, managers,
insurers, assigns, subsidiaries, parent corporations, affiliated entities or
sister corporations, as the case may be, and all others claiming by, through or
under such Party.

      E.           Severability.  Should any
provision of this Agreement be held invalid by a court of competent
jurisdiction, it is agreed that this shall not affect the validity or
enforceability of any other provision and that the Parties shall attempt in good
faith to renegotiate the failed provision so as to effectuate the purpose of and
to conform to the law regarding such provision.  In the event the
Parties are unable to renegotiate the provision, then they hereby agree to waive
a jury such that the issue shall be resolved, if at all, by a court of competent
jurisdiction.

      F.           Controlling
Law.  This Agreement is
entered into in Texas and shall be construed, interpreted and enforced in
accordance with Texas law without reference to choice-of-law rules.

      G.           Integration.  This Agreement is
fully integrated, it represents the entire understanding of the Parties, there
are no other agreements, representations, promises or negotiations that have not
been expressly embodied herein and this Agreement supersedes any and all prior
agreements with respect to the subject matter hereof.  The recitals of
this Agreement are contractual and are considered material.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      H.           Modification
in Writing.  This Agreement
may be amended or modified only by a writing executed by the Party to be charged
with the modification.

      I.           Independent
Legal Advice.  Each Party
acknowledges and represents that it has received independent legal advice and
has not relied upon any representations of any other Party or its agents,
employees, representatives or counsel on any subject contained in this Agreement
or otherwise, other than as expressly set forth in this Agreement.

      J.           No
Admissions.  This Agreement is
entered into for the purpose of buying peace and settling disputed
claims.  By entering into this Agreement, the Parties do not
acknowledge, but instead deny liability.

      K.           Captions.  The paragraph
titles appearing in this Agreement are for convenience only and shall not by
themselves determine the construction of this Agreement.

      L.           Counterparts.  This Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same
instrument.

      M.           Terms to
be Read in Context.  Singular and
plural terms, as well as terms stated in the masculine, feminine or neuter
gender, shall be read to include the other(s) as the context requires in order
to effectuate the full purposes of this Agreement.

      N.           Mutually
Drafted.  The drafting of
this Agreement is a mutual effort among the Parties and their counsel; thus,
this Agreement is not to be construed against any Party as the
drafter.

      
        O.           Confidentiality. The terms of
this Agreement are strictly confidential and shall not be disclosed by any Party
except:  (i) as necessary to enforce them, (ii) as otherwise required
by law or Court order, or (iii) to a Party’s auditors, legal counsel or other
advisors having a need to know.  If required for enforceability, the
Party desiring to disclose the terms

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        shall take reasonable
steps to attempt to file under seal.  The Parties shall not
issue or cause to be issued any press releases announcing or relating to the
Agreement.  This provision does not preclude EDDO or Blast from
complying with disclosure regulations required by law, including any required
disclosure of the terms of this Agreement in any SEC Form 8-K
filing.

      

      O.           Confidentiality. The terms of
this Agreement are strictly confidential and shall not be disclosed by any Party
except:  (i) as necessary to enforce them, (ii) as otherwise required
by law or Court order, or (iii) to a Party’s auditors, legal counsel or other
advisors having a need to know.  If required for enforceability, the
Party desiring to disclose the terms shall
take reasonable steps to attempt to file under seal.  The Parties
shall not issue or cause to be issued any press releases announcing or relating
to the Agreement.  This provision does not preclude EDDO or Blast from
complying with disclosure regulations required by law, including any required
disclosure of the terms of this Agreement in any SEC Form 8-K
filing.

      P.           Notice.  All notices,
requests or other communications required or permitted to be given under this
Agreement shall be in writing and shall be delivered by hand or courier or
mailed by United States registered or certified mail, return receipt requested,
postage prepaid, and addressed to the party to whom notice is to be given at
such party’s address as set forth below.  Any such notice, request or
other communication shall be considered received on the date of hand or courier
delivery or on the third day following deposit in the United States mail as
provided above.  A carbon copy of all notices, requests or other
communications to Quicksilver shall be sent by facsimile or e-mail to the
attention of its attorneys, Shayne D. Moses and Timothy D. Howell, at (817)
255-9199 or smoses@mph-law.com
and thowell@mph-law.com.  Likewise, a carbon copy of all notices,
requests or other communications to EDDO shall be sent by facsimile to the
attention of its attorneys, Michael J. Maloney and Jonathan E. Axelrad, at (713)
759-6930 or mmaloney@mmmllp.com
and ja@jaallp.com.

      
        	
                Address
      for Quicksilver:

              	
                Quicksilver
      Resources Inc.

              
	 
      	
                Attn:  Greg
      Gibson

              
	 
      	
                777
      West Rosedale Street, Suite 300

              
	 
      	
                Fort
      Worth, Texas 76104

              
	 
      	 
      
	
                Address
      for EDDO:

              	
                Eagle
      Domestic Drilling Operations, LLC

              
	 
      	
                14550
      Torrey Chase Blvd., Suite 330

              
	 
      	
                Houston,
      Texas 77014

              

      

      

      EACH
PARTY FURTHER STATES THAT IT HAS CAREFULLY READ THIS AGREEMENT; THAT THIS
AGREEMENT HAS BEEN FULLY EXPLAINED TO IT BY COUNSEL OF ITS CHOICE; THAT IT FULLY
UNDERSTANDS THE FINAL AND 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        BINDING
EFFECT OF THIS AGREEMENT; THAT THE ONLY PROMISES MADE TO IT TO SIGN THIS
AGREEMENT ARE THOSE STATED ABOVE; AND THAT IT IS SIGNING THIS AGREEMENT
VOLUNTARILY.

      

      EXECUTED
to be effective as of September 17th,
2008.

      

        
          	 
      	
                  QUICKSILVER
      RESOURCES INC.

                
	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	
                  Printed
      Name:

                	 
      
	 
      	
                  Title:

                	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  BLAST
      ENERGY SERVICES, INC.

                
	 
      	 
      
	 
      	
                  By:

                	
                   /s/
      John O’Keefe

                
	 
      	
                  Printed
      Name:

                	
                   John
      O’Keefe

                
	 
      	
                  Title:

                	
                   CEO

                
	 
      	 
      
	 
      	
                  EAGLE
      DOMESTIC DRILLING OPERATIONS, LLC

                
	 
      	 
      
	 
      	
                  By:

                	
                   /s/John
      MacDonald

                
	 
      	
                  Printed
      Name:

                	
                   John
      MacDonald

                
	 
      	
                  Title:

                	
                   CFO

                

        

      

       

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      

      

      

      STATE OF
TEXAS                              §

      §

      COUNTY OF
TARRANT                   §

      

      This instrument was acknowledged before
me on September ___, 2008, by ______________________________, the
______________________________ of Quicksilver Resources Inc., on behalf of said
entity.

      

      

      __________________________________________

      Notary Public, State of
Texas

      

      

      STATE OF
Texas                                 §

      §

      COUNTY OF
Harris                          
  §

      

      This instrument was acknowledged before
me on September 17th, 2008, by John O’Keefe, the CEO of Blast Energy Services,
Inc., on behalf of said entity.

      

      

         /s/ Carol
B. Gantt

      Notary Public, State of
Texas

      

      STATE OF
Texas                                
§

      §

      COUNTY OF
Harris                             §

      

      This instrument was acknowledged before
me on September 17th, 2008, by John MacDonald, the CFO of Eagle Domestic
Drilling Operations, LLC, on behalf of said entity.

      

      

         /s/ Carol
B. Gantt

      Notary Public, State of
Texas

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]