Document:

Unassociated Document

    WURSTER
CHANNEL PROSPECT PARTICIPATION AGREEMENT

     

    THIS
AGREEMENT made and entered into this 8th day of September, 2009, by and
between

     

    ARCHER
EXPLORATION, INC.

    1701
Westwind Dr. Suite #125

    Bakersfield,
CA 93301

     

    A Nevada
corporation, hereinafter called "Operator", and

     

    AMERICAN
PETRO-HUNTER, INC.

    17470 N.
Pacesetter Way

    Scottsdale,
AZ 85260

     

    A
Massachusetts corporation, hereinafter called "Participant"

     

    WITNESSETH:

     

    WHEREAS
Archer is the owner of a portion of all right, title and interest to the Wurster
Channel Prospect (the Prospect") and the land, geological and geophysical
information and data used to develop the concept of the Prospect. In addition,
Archer is the owner of a portion of oil and gas leases (hereinafter referred to
as "said leases") totaling 1,029.45 net acres, as more fully described in
Exhibit "A-4" to Exhibit "C" of this Agreement covering and embracing the lands
(hereinafter referred to as "said lands") in the Area of Mutual Interest
(hereinafter referred to as the "AMI"), shown on the attached Exhibit "A" and
described as follows:

     

    Township
6N - Range 4E, M.D.B.& M.

    Section
26 and a Portion of Sections 27

     

    Pursuant
to this Participation Agreement, Archer will make a portion of its interest in
the Wurster Channel Prospect available to the Participants. Said interest shall
consist of the lands set forth above down to a depth one hundred feet (100ft.)
below the top of the main Winters Sand. Each Participant shall be obligated to
pay its proportional share of the acquisition costs, including the anticipated
oil and gas lease acquisition costs, together with the drilling and completing
costs of the Test Well provided for in the attached Operating Agreement;
estimates of these costs are set out in the "Authorization For Expenditure"
attached hereto as Exhibit "B" in this Participation Agreement.

     

    WHEREAS
Participant desires to earn an assignment equal to Twenty-Five Percent of One
Hundred Percent (25% of 100%) from Archer's leasehold working interest in said
lands and the AMI for the consideration of $25,000.00, on conditions hereinafter
set forth:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    NOW
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties hereto agree as follows:

     

    1. For
the purposes of this Agreement, the following definitions and/or interpretations
shall apply:

     

    (a)        Initial
Test Well is a well drilled to sufficient depth to test for the presence of oil
or gas on a given property within the AMI.

     

    (b)       A
Completed Well is a well which has been fully equipped for the taking of
production, through and including the tanks for an oil well and through and
including the Christmas tree for gas.

     

    (c)        Paying
quantities means a quantity (in the judgment of a reasonable and prudent
operator) of oil, gas (including any gaseous hydrocarbons produced with oil)
and/or gas (including any liquid hydrocarbons produced with gas) sufficient to
repay, with a reasonable profit, the cost and expense of operating the
well.

     

    (d)       Contract
depth is a depth sufficient to fully test the Wurster sand or 8,100 ft.,
whichever is first encountered. This depth is an estimated distance, which will
be actually determined based on results of the seismic study to be conducted per
Section 2 below.

     

    (e)        A
Dry Hole is a well drilled to contract depth that is plugged and abandoned as
being incapable of commercial production.

     

    (f)     
   Term of Agreement is as long as operations are being conducted
on the leased lands or until terminated under a provision of this
Agreement.

     

    (g)  
     Net Revenue is that revenue derived from the sale
of hydrocarbons from the oil/gas well after costs associated with the production
of the same as described in the COPAS Agreement, which is attached to the
Operating Agreement, have been deducted.

     

    (h)     
  Seismic Survey shall mean the acquisition of additional Seismic Data
over the Prospect area, either 2D or 3D as determined by Operator, and the
processing of the data acquired.

     

    (i)     
   Prospect is the land, geological and geophysical information
and data used to develop the concept to locate and extract hydrocarbons from the
lands within an A M I.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (k)
Payout is defined as that point at which gross revenues from the sales of
hydrocarbons from the Prospect AMI equals the cost of the drilling, completion
and hook-up of the initial test well to the sales point.

     

    (1)
Participant assignment of Interest shall mean any action or attempted action by
Participant that would or could result in a change in the name of the entity
holding title to or exercising control over Participant's right, title or
interest in and to the Prospect. Further, any action resulting in a change of
ownership, or control of ownership of Participant, including but not limited to
a change from private to public ownership, shall be deemed an assignment or
attempt to assign, as contemplated under this Agreement.

     

    2.      Participant
hereby agrees to (i) pay for, acquire, assume and be responsible for its
undivided share of Archer's rights, interests and obligations under and pursuant
to the acquisition and operation of the Prospect and (ii) abide and be bound by
each and all of the terms and provisions of any oil and gas leases, acquired by
Archer, the costs thereof and (iii) the exploration and development costs of the
Wurster Channel Prospect, including seismic study and the drilling and testing
of the initial Test Well on said prospect. In general, each Participant will be
responsible for their pro rata share of the cost of the Prospect, which shall
include the completion of the initial Test Well, and will thereby earn and own
an undivided working interest in the applicable leases proportionate to their
participation interest hereunder, that being Twenty-Five Percent of One Hundred
Percent (25% of 100%) of the Working Interest.

     

    By the
consideration tendered with this Agreement, Participant shall be deemed to have
paid its pro rata share of all fees and costs of the Prospect, including land
acquisition and seismic, up to the drilling of the Initial Test Well. Not
included in this amount are delay rental payments for leases previously acquired
or the cost of drilling and completing the Initial Test Well. Cash calls may be
made by Operator from time to time for delay rental payments.

     

    Operator
will issue a cash call for Participant's pro rata share of the cost of drilling
the Initial Test Well sufficiently in advance of the drilling of the Initial
Test Well to insure that all funds are collected by Operator prior to the
signing of a drilling contract for drilling rig. Additional cash calls in
connection with the drilling and completion of the Initial Test Well shall be
made as set forth in this Agreement and in the Operating Agreement, as
appropriate.

     

    3.      In
addition to the consideration to Archer as provided for herein and to any
interest which Archer retains or purchases on its own account, Archer shall, at
casing point have the right to elect to receive from Participant, at no cost, a
working interest share in the Prospect equal to twenty-five percent of
Participant's twenty-five percent of one hundred percent (25% of 25% of 100%)
from the working interest purchased by Participant through this Agreement. This
would be equal to six and one-quarter percent of one hundred percent (6.25%
of100%) The "Before
Casing Point" and the "After Casing Point" interests of the parties are shown on
Exhibit "B" of the Operating Agreement
attached hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    In the
event that Archer does not elect to receive its twenty five percent at
completion, it may then elect to receive a working interest share, at no cost,
in the Prospect equal to fifteen percent of twenty five percent of one hundred
percent (15% of 25% of 100%) of the working interest purchased by Participant
through this Agreement. This would be equal to three and three-quarters percent
of one hundred percent (3.75% of 100%)

     

    4.        Pursuant
to this Participation Agreement and the Operating Agreement attached hereto as
Exhibit "C", Longbow, LLC, or its assigns, shall serve as Operator for the
Prospect. All operations will be conducted under the teems and conditions of the
said Participation Agreement, or the Operating Agreement which names Longbow,
LLC, or its assigns, as Operator, as appropriate. Except as provided for in
Paragraph 4 below, each Participant(s) hereunder agrees to abide by the decision
of the majority in interest of Participants as to all elections under the
Operating Agreement.

     

    5.        Commencing with the signing of this
Participation Agreement, Operator shall perform such tasks necessary to develop
the Prospect with the goal of drilling and completing the Initial Test Well for
the production of Hydrocarbons from the lands in the AMI. Participant and
Operator agree to the terms and conditions of Section 6 below, which specifies how
the duties are to be performed by Operator prior to the commencement of actual
drilling operations. Participant
understands that
Operator, or its assigns may have already completed portions of the operations
outlined in Section 5 below. Nothing in this Agreement precludes the
cessation of all
activities in connection with this Prospect in the event that the Operator's recommendation drawn from
the Seismic Study results in the agreement of Participant and Operator
that the Initial Test Well will not produce hydrocarbons in paying quantities. In
which case, the Participant will be deemed not to have earned and the Parties to
this Agreement shall have no further obligations to each other. Participant
understands that Operator's recommendation
is only its best assessment of the Seismic Data and is no guarantee
of the presence or absence of hydrocarbons under the leased
lands.

     

    All AFEs
and elections attached thereto are due and payable at the Office of Operator, no
later than close of business on the fifteenth (15th)
calendar day following the Participant(s) receipt of the AFE. If that date falls
on a Saturday, Sunday, or recognized holiday, the next calendar day will be
used, unless there is a rig on site, in which case Participant has twenty-four
(24) hours to notify Operator of its election. Participant(s) agrees to pay its
pro rata share of costs on a given AFE, even if the total cost exceeds that
shown on the AFE. Failure to timely pay ANY AFE shall be deemed to be an
election not to participate in the Wurster Channel Prospect.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Subsequent
to earning, Participant(s) shall have the right to independently exercise its
"non-consent" rights, under the terns and conditions set forth in the Operating
Agreement with respect to any operation for which Particpant(s) has the right to
exercise non-consent rights under the Operating Agreement. Upon proposing or
receipt of a proposal under the provisions of Articles VI, Paragraph B., 1.,
of the Operating Agreement, Operator shall immediately give the written
notice set forth in said Article VI, Paragraph B.,
1., of the Operating Agreement to the Participant hereunder. The
Participant shall have fifteen (15) days within which to notify Operator whether
or not they wish to participate in the cost of the proposed operation, unless
there is a rig on site, in which case Participant shall have twenty-four (24)
hours to notify Operator of its election. Failure to timely notify Operator of
its election shall constitute an election not to proceed in accordance with the
proposed operation but to go "Non-Consent" per the terms of Article VI,
Paragraph B., 2. of the Operating Agreement. Any Participant electing not to
participate pursuant to this non-consent provision shall suffer forfeiture of
any and all right, title and interest in the Wurster Channel Prospect. If a
Participant goes non-consent on any operation subsequent to hook-up of the
Initial Test Well, it shall retain the interest previously earned.

     

    Notwithstanding
any other provision of this Agreement, in no event shall the Participant be
entitled to participate on a "non-consent" basis with respect to the Initial
Test Well as set forth in the AFE and in Article VI, of the Operating Agreement
or any subsequent operations.

     

    Any
election, by Participant, not to participate prior to earning, whether by formal
notice or by failure to elect and/or to timely pay, shall result in the
forfeiture of any
and all of Participant's right title and interest in the Wurster Channel
Prospect.

     

    6.
Operator's duties shall be:

     

    (a) to
conduct a Seismic Survey of the AMI and sufficient surrounding property to allow
the gathering of seismic data.

     

    (b) to
conduct a study of the Seismic Data and issue a report of its findings to the
Participant.

     

    (c) to
report to Participant a recommendation as to the suitability of the Prospect for
the drilling of a Test Well, the location and depth of same.

     

    (d) to
continue Leasing Program for the acquisition of remaining unleased acreage
within the AMI.

     

    (e) to
maintain leases held and acquired by paying rentals and extending terms, where
necessary. During the term of this Agreement the Operator shall keep the said
leases free and clear from all liens.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (f) to
issue AFEs and Cash Calls to fund operations.

     

    (g) to
drill, with Particpant's participation, the Initial Test Well on lands within
the AMI.

     

    (h) to
operate the production of any hydrocarbons found on the Leased Lands from the
Initial Test Well and/or any follow up wells under the terms and provisions of
the Joint Operating Agreement.

     

    
      
        	
                
                

              	
                7.(a)

              	
                If
      it is determined by Operator, based upon its analysis of the Seismic Data,
      that there is a probability of the Initial Test Well producing in paying
      quantities, Operator shall commence the actual drilling of a test well on
      the described leased land on or before June 30th, 2010, or a date mutually
      acceptable to both parties, at a location mutually acceptable between
      Operator and Participant, initially presumed to be located in Section 26,
      T6N R4E, MDB&M. Should Operator and Participant disagree, Participant
      shall not unreasonably withhold its consent
to

              

      

    

    Operator's
proposal. Thereafter Operator shall diligently and continuously prosecute the
drilling of said test well in a proper and workmanlike manner to contract depth.
Operator shall furnish Participant with copies of daily drilling reports as well
as copies of all logs. Participant shall have on-site access to all operations
on the subject lands. Participant's access shall be at its sole
risk.

     

    (b) In
the event any well provided for herein is lost for any reason prior to being
drilled to contract depth, or Operator has encountered during the drilling of
any well mechanical difficulty or formation or condition which would render
further drilling impractical or impossible, Operator shall plug and abandon such
well and thereafter commence a substitute well at a mutually agreed location
within forty-five (45) days after cessation of Operators drilling operations in
the prior well, or at a time mutually agreed between Operator and Participant.
In the event of a disagreement, Participant shall not unreasonably withhold its
consent in these matters. Any substitute well drilled hereunder shall be drilled
subject to the same terms and conditions and to the same depth as provided for
the well so lost or abandoned. Any reference herein or hereafter made to the
test well shall be deemed to be a reference to any substitute well or wells
which may be drilled there for.

     

    (c) In
the event the test well, or substitute well there for is abandoned after
reaching contract depth due to the well being incapable of producing oil and/or
gas in paying quantities, Operator shall have the right to commence a second
test well within ninety (90) days after abandonment of the test well, or at a
time mutually agreed between the Operator and Participant, at a location
mutually acceptable between Operator and Participant. In the event of a
disagreement, Participant shall not unreasonably withhold its consent in these
matters. Once consent (election to participate) is given, Operator shall
diligently and continuously prosecute the drilling of the second test well in a
proper and workmanlike manner to contract depth and complete said test well
within 45 days from the date of commencement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d) By
the performance of the covenants and conditions hereof and upon completion of
the test well as a producer of oil and/or gas in paying quantities and in
accordance with the terms and conditions hereof, Participant shall earn and
receive within fifteen (15) days thereof an interest in said lands as
follows:

     

    (1)        An
assignment of Twenty-Five percent of One Hundred Percent (25% of 100%) of
Archer's working interest in the AMI subject to elections set forth in Section 3
above). The assignment to Participant from Operator shall be subject to an
overriding royalty being the difference between lessor royalty and twenty two
and one-half percent (22.5%). Archer covenants and agrees to deliver to Operator
no less than a seventy-seven and one-half percent (77.5%) net revenue
interest.

     

    (2)         In
addition, any new leasehold interest acquired within the AMI during the teiin
hereof by Operator shall be subject to said overriding royalty interest reserved
by Operator, being the difference between lessor royalty and twenty two and
one-half percent (22.5%). All information acquired in the drilling of any well
by Operator in the AMI shall be furnished to Participant(s) in a timely manner
and at no cost to Participant(s).

     

    (3)        Within
three-hundred and sixty-five (365) days from and after the date of the
commencement of production of oil or gas in paying quantities in the test well,
or at a time mutually agreed between the Operator and Participant(s), Operator
shall have the right to commence drilling operations of the next well.
Operations for drilling of each successor well thereafter may commence within
three-hundred and sixty-five (365) days from and after the cessation of drilling
operations in the preceding well, or at a time mutually agreed between the
Operator and Participant(s), until the leased land has been fully developed. As
used in this paragraph, the term "cessation of drilling operations" shall not
include a temporary stoppage of drilling operations in the same well, nor to a
stoppage of longer duration for such purposes where such stoppage is approved in
writing by Operator. In the event of a disagreement, Participant(s) shall not
unreasonably withhold its consent in these matters. This Section of the
Participation Agreement is subject to the terms and conditions of the Leases
held in the AMI. In the case of any conflict between the two, the requirements
of the Leases shall prevail.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.      Operator
shall have the right to contract out for services and assign duties to qualified
entities in the performance of its obligations under this
Agreement.

     

    9.       Participant
shall be responsible for the timely payment of its proportionate share of any
and all expenses in connection with the Prospect, including but not limited to
the drilling and completion of the Initial Test Well.

     

    10.     Each
party hereto shall be liable and responsible for and shall indemnify and hold
the other harmless (including costs and attorney's fees) from and against any
claim or actions following injury to, illness or death of any person and any
loss or damage to any property occurring in connection with the performance or
nonperformance of this agreement only to the extent of its own negligence and
that of its agents, servants, employees and contractors.

     

    11.     The
Initial Test Well shall be drilled subject to the terms and conditions of the
geological requirements set forth in Exhibit "A-2" to the Operating Agreement,
which is attached hereto and made a part hereof.

     

    12.     All
operations on the leased lands within the AMI shall be governed by a mutually
acceptable Operating Agreement with, among other attachments, a COPAS Accounting
Procedure. The said Operating Agreement and Accounting Procedure is attached
hereto as Exhibit "C". For the purpose of determining Operator's reimbursable
costs and expenses for any well in which Operator retains a working interest,
the said COPAS Accounting Procedure, as herein modified, shall control. In the
event of a conflict between the provisions of the Operating Agreement and/or the
Accounting Procedure and this Agreement, the terms of the latter shall
control.

     

    13.     If
any well is completed as a producer of oil and/or gas in paying quantities,
Operator shall furnish to Participant(s), within ninety (90) days after the date
of completion, an itemized statement of the cost of drilling, testing,
completing and equipping the well, together with an inventory of the material
and equipment therein, thereon and used in connection therewith and Operator
shall thereafter furnish Participants with a monthly itemized statement of the
cost of operations and the quantities and qualities of oil, gas or other
minerals which are produced from said well, together with the amount of proceeds
from the sale of such production in the preceding month; such reports, together
with a complete well record shall be furnished to Participants.

     

    14.     If
a lease described herein covers less that a full oil and gas leasehold estate in
any lands described herein under such lease, or if Operator's interest in such
lease covering any lands described herein under such lease is less than the full
oil and gas leasehold estate (excluding and disregarding any applicable royalty,
overriding
royalty, production payment or other burden to which leasehold estate is
subject), then the overriding royalty reserved out of the production from the
lands in which Operator's interest in the oil and gas lease bears to the full
oil and gas leasehold estate in such land, and the interest in the well in which
Operator may acquire a working interest shall be in the proportion that the oil
and gas leasehold estate in such lease covering the lands described herein bears
to the full oil and gas leasehold estate in said lands.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15.     Each
extension of any of the said leases, in whole or in part, shall maintain and
continue in effect the rights and interests reserved by Operator in said leases
so extended and in said lands covered thereby. Should a renewal or new lease or
leases covering the said lands, or a part of or interest in the said lands, or a
part of or interest in such a lease, be acquired by Operator, or by a third
party wholly or partly for Operator or Operator's benefit, within three (3)
years from the date of the expiration of the primary term of said lease, the
rights and interests herein reserved by Operator shall attach and apply to each
renewal or new lease, the lands described therein and estate created thereby
with the same result and effect as such reserved rights and interests attach and
apply to the said lease, the said lands or in the estates created by the said
lease. Should Participant, acting as Agent for the Operator, acquire any
additional acreage within the AMI in addition to the 1,029.45 net acres
described above, Participant shall assign said leases to Operator. Operator
shall reimburse Participant(s) for all of its approved expenses related to the
acquisition. Operator shall maintain rights and interest in the additional
acreage the same as in all other acreage subject to this Agreement.

     

    
      	
            	
              16.

            	
              The
      provisions of this paragraph 15 shall be applicable to all operations
      conducted by Operator in which Participant, as to the interest in the said
      lease covered by this Agreement, is participating in an operation with a
      working interest.

            

    

     

    
      (a)
Operator
shall drill all wells necessary to protect the said lands from drainage through
offset wells to said lease(s).

    

     

    (b)            If
Operator should elect to abandon any well either drilled on the said lands or on
said unit of production, or if any well either on the said lands or on said unit
of production ceases to produce in paying quantities and if actual drilling
operations for a replacement well or reworking operations are not commenced
within thirty (30) days thereafter, Operator shall immediately inform
Participant in writing of such fact and Participant shall have the option, to be
exercised within fifteen (15) days, to reacquire free of cost the rights
assigned to Operator hereunder free and clear of liens and encumbrances insofar
as said rights cover and embrace the lands attributable to any such well, if
Participant elects to reacquire any of said lease(s) (or any part or interest as
herein provided), Participant shall also have the option to acquire any well,
together with the material in and around such well then on said lands and
necessary in the operation of such well at a
price equal to the reasonable salvage value of said materials. If Participant
elects to take over a well, it does so with the understanding that it accepts
all obligations in connection with said well, including but not limited to all
abandonment costs. Further, Participant(s) must present to Operator, at the time
of notification of intent to take over a well, proof of a "DOGGR
Bond".

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c) In
the event Operator desires to surrender any of the said lease(s) as to all or
any part of said lands covered thereby or to allow any of said lease(s) to
terminate or expire, Operator shall notify Participant at least sixty (60) days
in advance of the anniversary date specified in such lease (or the date to be
surrendered, if other than the anniversary date) and Participant shall have
fifteen (15) days after receipt of such notice of its election to take a
reassignment of said lease as to the portion thereof to be relinquished or to be
allowed either to expire or terminate. Should Participant elect to receive a
reassignment, it shall be delivered by Operator not less than fifteen (15) days
prior to the anniversary date of any such lease (or proposed date of surrender).
Any reassignment under terms hereof shall be free of cost to
Participant.

     

    (d) As to
each well that Operator drills on the leased lands, or lands within the AMI,
Operator shall notify Participant in writing of the following
items:

     

    (1)   The
exact legal description of the location.

    (2)   The
date actual drilling is commenced.

    (3)   The
total depth drilled.

    (4)   The
date of completion.

    (5)   Whether
completed as a producer of oil and/or gas or as a dry hole.

    (6)   The
date any production commences.

    (7)   The
date any well is shut -in.

    (8)   The
date and amount of payment of any shut-in royalty.

     

    Such
written notice shall be given to Participant within five (5) days after the
occurrence of each of said items.

     

    (e)
Should Operator commence any well which will be drilling over the end of the
primary term of any of the said lease(s), Operator shall give Participant
written notice of such drilling at least ten (10) days prior to the end of such
primary term.

     

    
      17.     Any
notices given or required to be given hereunder shall be accomplished as set
forth below. Operator's address and telephone number are:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARCHER
EXPLORATION, INC.

    1701
Westwind Drive, Suite 125

    Bakersfield,
CA 93301

    (661)
631-1700

     

    Participant's
address and telephone number are:

     

    AMERICAN
PETRO-HUNTER, INC.

    17470 N.
Pacesetter Way

    Scottsdale,
AZ 85260

    (480)
626-5331

     

    Each
Participant shall promptly advise Operator, in writing, of its current address
and telephone number to be used in connection with the giving of any notices
hereunder.

     

    The time
for such receiving party to give any notice in response thereto shall begin to
run on the day following the date the originating notice is received, and
responsive notice shall be deemed given when deposited in the United States mail
or private express courier, properly addressed and with postage or charges
prepaid. Any notice or response sent by Fax with hard copy via U.S. Mail shall
be deemed delivered on the date of fax transmission.

     

    18.     Operator,
prior to commencing operations for any well on the leased lands shall, conduct
title work and make reasonable effort to cure any title defects found. Operator
shall keep Participant advised of these efforts. Operator shall promptly furnish
Particpant(s) with copies of all title reports, abstracts and attorney's title
opinions obtained by it relating to said lease(s). Operator and Participant
shall make available to each other, any title information it may have pertaining
to said lease(s). Neither party shall be liable for the accuracy of any title
information furnished pursuant to the foregoing. Participant does not warrant
title, either expressed or implied, to the said lease(s).

     

    19.     Participant
may not assign its interest or rights under this Agreement without the prior
written consent of Operator. Any change in the name of holder of the
Participant(s)' interest, change in ownership, including but not limited to a
change from private to public ownership of the Participant or any other change
in the status or nature of the ownership interest, shall be considered to be an
assignment, or attempt to assign, under this Section 18.

     

    20.     No
party hereto shall directly or indirectly make or authorize press or public
information releases announcing or concerning the Unit Area and operations
hereunder, the execution of or continuation or termination of this agreement or
the results of any operation conducted hereunder without approval of all parties
hereto

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    21.     Time
shall be the essence of this Agreement in all of its parts. This Agreement may
be executed in any number of counterparts, each of which shall be considered as
an original for all purposes. The terms, covenants and conditions hereof shall
run in favor of and are binding upon the parties hereto, their successors and
assigns, and shall run in favor of and are binding upon the parties hereto,
their successors and assigns, and shall run with the said leases and
lands.

     

    The
$25,000.00 consideration shall be paid to Operator upon Participant's execution
of this Agreement.

     

    IN
WITNESS WHEREOF, Operator and Participant have hereunder caused their names to
be subscribed the day and year first above written.

    

    
      
        
          
            
              
                	
                        ARCHER
      EXPLORATION, INC.

                      	 
      	
                        AMERICAN
      PETRO-HUNTER, INC.

                      
	 
      	 
      	 
      	 
      	 
      
	
                        By:

                      	      
                        /s/
      John W.
      Howe

                      	 
      	
                        By:

                      	      
                        /s/
      Robert McIntosh

                      
	 
      	
                        John
      W. Howe - President

                      	 
      	 
      	
                        Robert
      McIntosh - President

                      
	 	 	 	 	 
	
                        Date: 9-8-09

                      	 
      	
                        Date: 9-8-09Exhibit
10.1

    

    

    JOINT
FILING AGREEMENT

    

    WHEREAS,
Peerless Systems Corporation, a Delaware corporation (“Peerless”), is a
stockholder of Highbury Financial Inc., a Delaware corporation (
“Highbury”);

    

    WHEREAS,
Timothy E. Brog (the “Nominee”) is a director of Peerless, and Peerless has
nominated the Nominee as a director for election at Highbury’s next annual
meeting of stockholders;

    

    WHEREAS,
due to such nomination, Mr. Brog may be deemed to beneficially own the Highbury
securities owned by Peerless;

     

    NOW,
THEREFORE, IT IS AGREED, as of this 14th day of September 2009 by the parties
hereto:

     

    1. In
accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), each of the undersigned (collectively, the
“Group”) agrees to the joint filing on behalf of each of them of statements on
Schedule 13D with respect to the securities of Highbury to the extent required
under applicable securities laws. Each of the undersigned agrees to the joint
filing of any necessary amendments to the Schedule 13D. Each member of the Group
shall be responsible for the accuracy and completeness of his/its own disclosure
therein, and is not responsible for the accuracy and completeness of the
information concerning the other members, unless such member knows or has reason
to know that such information is inaccurate.

     

     2. This
Agreement may be executed in counterparts, each of which shall be deemed an
original and both of which, taken together, shall constitute but one and the
same instrument, which may be sufficiently evidenced by one
counterpart.

     

    3. This
Agreement shall be governed by the laws of the State of Delaware.

    

    4. Each
of the undersigned parties hereby agrees that this Agreement shall be filed as
an exhibit to the Schedule 13D pursuant to Rule 13d-1(k)(1)(iii) under the
Exchange Act.

    

     

    
      	 	      
              PEERLESS
      SYSTEMS CORPORATION

              

              By:
      /s/
      William
      Neil                                                     
      

              Name:  William
      Neil

              Title:    Chief
      Financial Officer and Acting Chief Executive Officer

              

              

              
                /s/
      Timothy E.
      Brog                                                     
      

              

              TIMOTHY E.
      BROG

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