Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Tatmar Ventures Inc. - Exhibit 4.2

TATMAR VENTURES INC.

 

 

 

STOCK OPTION PLAN

1

ARTICLE I
DEFINITIONS AND INTERPRETATION

1.1          
DEFINITIONS

As used herein, unless anything in the subject matter or
context is inconsistent therewith, the following terms shall have the meanings
set forth below:

“Administrator” means such director or other senior
officer or employee of the Company as may be designated as Administrator by the
Board from time to time;

“Award Date” means the date on which the Board grants
and announces a particular Option;

“Board” means the board of directors of the Company;

“Company” means Tatmar Ventures Inc. and any subsidiary
thereof, (within the meaning of the Securities Act), as the context may apply;

“Consultant” means an individual (or a company wholly
owned by the individual) who (i) provides ongoing consulting, technical,
management or other services to the Company (excluding services provided in
relation to a distribution of the Company’s securities); (ii) possesses
technical, business or management expertise of value to the Company; (iii)
provides the services under a written contract with the Company; (iv) spends a
significant amount of time and attention to the business and affairs of the
Company; and (v) has a relationship with the Company that enables the individual
to be knowledgeable about the business and affairs of the Company;

“Director” means directors, senior officers and
Management Company Employees of the Company;

“Employee” means (i) an individual considered an
employee under the Income Tax Act, Canada (i.e. for whom income tax and
other deductions are made by the Company); (ii) an individual who works
full-time for the Company providing services normally provided by an employee of
the Company but for whom income tax and other deductions are not made by the
Company; and (iii) an individual who works for the Company on a continuing and
regular basis for a minimum amount of time per week, but for whom income tax and
other deductions are not made by the Company;

“Exchange” means the TSX Venture Exchange;

“Exercise Notice” means the notice respecting the
exercise of an Option, forming part of the Option Certificate;

“Exercise Period” means the period during which a
particular Option may be exercised, being the period from and including the
Award Date through to and including the Expiry Date;

“Exercise Price” means the price at which an Option may
be exercised as determined in accordance with section 3.6;

“Expiry Date” means the date determined in accordance
with section 3.3 and after which a particular Option cannot be exercised;

“Insider” means a Director, a director or senior officer
of a company that is an Insider or subsidiary of the Company, or a person that
beneficially owns or controls, directly or indirectly, voting shares carrying
more than 10% of the voting rights attached to all outstanding voting shares of
the Company;

2

“Investor Relations Activities” has the meaning ascribed
thereto in the Exchange’s corporate finance manual;

“Management Company Employee” means an individual
employed by a company providing management services to the Company, which are
required for the ongoing successful operation of the business enterprise of the
Company, but excluding a person engaged in Investor Relations Activities;

“Option” means an option to acquire Shares, awarded to a
Director, Employee or Consultant pursuant to the Plan;

“Option Certificate” means the certificate,
substantially in the form set out as Schedule “A” hereto, evidencing an
Option;

“Option Holder” means a current or former Director,
Employee or Consultant who holds an unexercised and unexpired Option or, where
applicable, the Personal Representative of such person;

“Personal Representative” means (i) in the case of a
deceased Option Holder, the executor or administrator of the deceased duly
appointed by a court or public authority having jurisdiction to do so; and (ii)
in the case of an Option Holder who for any reason is unable to manage his or
her affairs, the person entitled by law to act on behalf of such Option
Holder;

“Plan” means this stock option plan; 

“Securities Act” means the Securities Act
(British Columbia); and

“Share” or “Shares” means, as the case may be,
one or more common shares without par value in the capital of the Company.

1.2          
CHOICE OF LAW

The Plan is established under, and the provisions of the Plan
shall be interpreted and construed solely in accordance with, the laws of the
Province of British Columbia.

1.3          
HEADINGS

The headings used herein are for convenience only and are not
to affect the interpretation of the Plan.

ARTICLE II
PURPOSE AND PARTICIPATION

2.1          
PURPOSE

The purpose of the Plan is to provide the Company with a
Share-related mechanism to attract, retain and motivate Directors, Employees and
Consultants, to reward such of those persons by the grant of options under the
Plan by the Board from time to time for their contributions toward the long term
goals of the Company and to enable and encourage such persons to acquire Shares
as long term investments.

2.2          
PARTICIPATION

The Board shall, from time to time, in its sole discretion
determine those Directors, Employees and Consultants, if any, to whom Options
are to be awarded. If the Board elects to award an Option to a Director, the
Board shall, in its sole discretion but subject to section 3.2, determine the
number of Shares 

3

to be acquired on the exercise of such Option. If the Board
elects to award an Option to an Employee or Consultant, the number of Shares to
be acquired on the exercise of such Option shall be determined by the Board in
its sole discretion, and in so doing the Board may take into account the
following criteria:

	(a) 	
      the person’s remuneration as at the Award Date in
      relation to the total remuneration payable by the Company to all of its
      Employees and Consultants as at the Award Date;

	 	 
	(b) 	
      the length of time that the person has provided services
      to the Company; and

	 	 
	(c) 	
      the nature and quality of work performed by the
      person.

2.3          
NOTIFICATION OF AWARD

Following the approval by the Board of the awarding of an
Option, the Administrator shall notify the Option Holder in writing of the award
and shall enclose with such notice the Option Certificate representing the
Option so awarded.

2.4          
COPY OF PLAN

Each Option Holder, concurrently with the notice of the award
of the Option, shall be provided with a copy of this Plan. A copy of any
amendment to the Plan shall be promptly provided by the Administrator to each
Option Holder.

2.5          
LIMITATION

This Plan does not give any Option Holder who is a Director the
right to serve or continue to serve as a Director, nor does it give any Option
Holder who is an Employee or Consultant the right to be or to continue to be
employed or engaged by the Company.

ARTICLE III
TERMS AND CONDITIONS OF OPTIONS

3.1          
BOARD TO ALLOT SHARES

The Shares to be issued to Option Holders upon the exercise of
Options shall be allotted and authorized for issuance by the Board prior to the
exercise thereof.

3.2          
NUMBER OF SHARES

The maximum number of Shares issuable under the Plan shall not
exceed 10% of the number of Shares of the Company issued and outstanding as of
each Award Date, inclusive of all Shares presently reserved for issuance
pursuant to previously granted stock options, unless shareholder approval is
obtained in advance in accordance with section 6.5 hereof.

Options that have been cancelled or that have expired without
being exercised in full shall continue to be issuable under the Plan. 

3.3          
TERM OF OPTION

Subject to section 3.5, the Expiry Date of an Option shall be
the date so fixed by the Board at the time the particular Option is awarded,
provided that such date shall not be later than:

	(a) 	
      for so long as the Company is classified as a Tier 2
      issuer or equivalent designation of the

4

		
      Exchange, the fifth anniversary of the Award Date of the
      Option; or

	 	 
	(b) 	
      if the classification of the Company on the Exchange is
      upgraded to that of a Tier 1 issuer, or the Shares are no longer listed on
      the Exchange, the tenth anniversary of the Award Date of the
  Option.

3.4          
LIMITATIONS

The total number of Options awarded, in any twelve month
period, to any one individual shall not exceed 5% of the issued and outstanding
Shares of the Company at the Award Date (unless the Company is at the time a
Tier 1 issuer and has obtained disinterested shareholder approval).

The total number of Options awarded, in any twelve month
period, to any one Consultant for the Company shall not exceed 2% of the issued
and outstanding Shares of the Company at the Award Date without consent being
obtained from the Exchange. 

The total number of Options awarded, in any twelve month
period, to all persons employed by the Company who perform Investor Relations
Activities for the Company shall not exceed 2% of the issued and outstanding
Shares of the Company calculated at the Award Date, without consent being
obtained from the Exchange.

3.5          
TERMINATION OF OPTION

An Option Holder may exercise an Option in whole or in part at
any time or from time to time during the Exercise Period provided that, with
respect to the exercise of part of an Option, the Board may at any time and from
time to time fix limits, vesting requirements or restrictions in respect of
which an Option Holder may exercise part of any Option held by him. Any Option
or part thereof not exercised within the Exercise Period shall terminate and
become null, void and of no effect as of 5:00 p.m. (Vancouver time) on the
Expiry Date. The Expiry Date of an Option shall be the earlier of the date so
fixed by the Board on the Award Date referred to in section 3.3 above, and the
date established, if applicable, in subsections (a) to (c) below.

	(a) 	
      Death

	 	 	 
		
      In the event that the Option Holder should die while he
      or she is still (i) a Director or Employee, (other than an Employee
      performing Investor Relations Activities) the Expiry Date shall be 12
      months from the date of death of the Option Holder; or (ii) a Consultant,
      or an Employee performing Investor Relations Activities, the Expiry Date
      shall be one month from the date of death of the Option Holder.

	 	 	 
	(b) 	
      Ceasing to Hold Office

	 	 	 
		
      In the event that the Option Holder holds his or her
      Option as a Director and such Option Holder ceases to be a Director of the
      Company other than by reason of death, the Expiry Date of the Option shall
      be the 90th day following the date the Option Holder ceases to be a
      Director of the Company unless the Option Holder continues to be engaged
      by the Company as an Employee or Consultant, in which case the Expiry Date
      shall remain unchanged. However, if the Option Holder ceases to be a
      Director of the Company as a result of:

	 	 	 
		(i) 	
      ceasing to meet the qualifications set forth in s.124 of
      the Business Corporations Act (British Columbia); or

	 	 	 
		(ii) 	
      a special resolution having been passed by the members of
      the Company pursuant to

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subsection 128(3) of the Business
Corporations Act (British Columbia), 

then the Expiry Date shall be the date
the Option Holder ceases to be a Director of the Company.

	(c) 	
      Ceasing to be Employed

	 	 	 
		
      In the event that the Option Holder holds his or her
      Option as an Employee or Consultant of the Company (other than an Employee
      or Consultant performing Investor Relations Activities) and such Option
      Holder ceases to be an Employee or Consultant of the Company other than by
      reason of death, the Expiry Date of the Option shall be the 30th
      day following the date the Option Holder ceases to be an Employee or
      Consultant of the Company unless the Option Holder ceases to be such as a
      result of:

	 	 	 
		(i) 	
      termination for cause; or

	 	 	 
		(ii) 	
      an order of the British Columbia Securities Commission,
      the Exchange, or any regulatory body having jurisdiction to so
    order,

	 	 	 
		
      in which case the Expiry Date shall be the date the
      Option Holder ceases to be an Employee or Consultant of the
  Company.

	 	 	 
	(d) 	
      Ceasing to Perform Investor Relations
      Activities

	 	 	 
		
      Notwithstanding the paragraph (c) immediately above, in
      the event that the Option Holder holds his or her Option as an Employee or
      Consultant of the Company who provides Investor Relations Activities on
      behalf of the Company, and such Option Holder ceases to be an Employee or
      Consultant of the Company other than by reason of death, the Expiry Date
      shall be the date the Option Holder ceases to be an Employee or Consultant
      of the Company.

3.6          
EXERCISE PRICE

The Exercise Price shall be that price per Share, as determined
by the Board in its sole discretion, and announced as of the Award Date, at
which an Option Holder may purchase a Share upon the exercise of an Option,
provided that it shall not be less than the closing price of the Company’s
Shares traded through the facilities of the Exchange (or, if the Shares are no
longer listed for trading on the Exchange, then such other exchange or quotation
system on which the Shares are listed or quoted for trading) on the day
preceding the Award Date, less any discount permitted by the Exchange, or such
other price as may be required or permitted by the Exchange.

3.7          
ASSIGNMENT OF OPTIONS

Options may not be assigned or transferred, and all Option
Certificates will be so legended, provided however that the Personal
Representatives of an Option Holder may, to the extent permitted by section 4.1,
exercise the Option within the Exercise Period.

3.8          
ADJUSTMENTS

If prior to the complete exercise of any Option the Shares are
consolidated, subdivided, converted, exchanged or reclassified or in any way
substituted for (collectively the “Event”), the Option, to the extent that it
has not been exercised, shall be adjusted by the Board in accordance with such
Event in the manner the Board deems appropriate. No fractional Shares shall be
issued upon the exercise of the Options and accordingly, if as a result of the
Event an Option Holder would become entitled to a fractional share, such Option
Holder shall have the right to purchase only the next lowest whole number 

6

of shares and no payment or other adjustment will be made with
respect to the fractional interest so disregarded. Additionally, no lots of
Shares in an amount less than 500 Shares shall be issued upon the exercise of
the Options unless such amount of Shares represents the balance left to be
exercised under the Options.

3.9          
EXERCISE RESTRICTIONS

The Board may, at the time an Option is awarded or upon
renegotiation of the same, attach restrictions relating to the exercise of the
Option, including vesting provisions. Any such restrictions shall be recorded on
the applicable Option Certificate.

Notwithstanding the above, Options issued to Consultants
performing Investor Relations Activities must vest in stages over at least
twelve months with not more than one-quarter of the Options vesting in any three
month period.

3.10          
REPRESENTATIONS

For Options granted to Employees, Consultants or Management
Company Employees, the Company will represent that the Option Holder is a bona
fide Employee, Consultant or Management Company Employee, as the case may
be.

ARTICLE IV 
EXERCISE OF OPTION

4.1          
EXERCISE OF OPTION

An Option may be exercised only by the Option Holder or his
Personal Representative. An Option Holder or his Personal Representative may
exercise an Option in whole or in part, subject to any applicable exercise
restrictions, at any time or from time to time during the Exercise Period up to
5:00 p.m. (Vancouver time) on the Expiry Date by delivering to the Administrator
an Exercise Notice, the applicable Option Certificate and a certified cheque or
bank draft payable to the Company in an amount equal to the aggregate Exercise
Price of the Shares to be purchased pursuant to the exercise of the Option.

4.2          
ISSUE OF SHARE CERTIFICATES

As soon as practicable following the receipt of the Exercise
Notice, the Administrator shall cause to be delivered to the Option Holder a
certificate for the Shares so purchased. If the number of Shares so purchased is
less than the number of Shares subject to the Option Certificate surrendered,
the Administrator shall forward a new Option Certificate to the Option Holder
concurrently with delivery of the aforesaid share certificate for the balance of
the Shares available under the Option.

4.3          
CONDITION OF ISSUE

The issue of Shares by the Company pursuant to the exercise of
an Option is subject to this Plan and compliance with the laws, rules and
regulations of all regulatory bodies applicable to the issuance and distribution
of such Shares and to the listing requirements of any stock exchange or
exchanges on which the Shares may be listed. The Option Holder agrees to comply
with all such laws, rules and regulations and agrees to furnish to the Company
any information, report and/or undertakings required to comply with and to fully
cooperate with the Company in complying with such laws, rules and
regulations.

7

4.4          
MONITORING OF TRADES

An Option Holder who performs Investor Relations Activities
shall provide written notice to the Board of each of his trades of securities of
the Company, within five business days of each trade.

ARTICLE V 
ADMINISTRATION

5.1          
ADMINISTRATION

The Plan shall be administered by the Board, or an
Administrator on the instructions of the Board or such committee of the Board
formed in respect of matters relating to the Plan. The Board or such committee
may make, amend and repeal at any time and from time to time such regulations
not inconsistent with this Plan as it may deem necessary or advisable for the
proper administration and operation of this Plan and such regulations shall form
part of this Plan. The Board may delegate to the Administrator or any Director,
Employee or officer of the Company such administrative duties and powers as it
may see fit.

5.2          
INTERPRETATION

The interpretation by the Board or its authorized committee of
any of the provisions of this Plan and any determination by it pursuant thereto
shall be final and conclusive and shall not be subject to any dispute by any
Option Holder. No member of the Board or any person acting pursuant to authority
delegated by the Board hereunder shall be liable for any action or determination
in connection with this Plan made or taken in good faith and each member of the
Board and each such person shall be entitled to indemnification with respect to
any such action or determination in the manner provided for by the Company.

ARTICLE VI
APPROVALS, AMENDMENTS AND
TERMINATION

6.1          
APPROVALS REQUIRED FOR PLAN

Prior to its implementation by the Company, this Plan is
subject to the receipt of approval by the shareholders of the Company at a
general meeting, and approval of the Exchange. 

6.2          
PROSPECTIVE AMENDMENT

Subject to applicable regulatory approval, the Board may from
time to time amend this Plan and the terms and conditions of any Option
thereafter to be awarded and, without limiting the generality of the foregoing,
may make such amendments for the purpose of meeting any changes in any relevant
law, Exchange policy, rule or regulation applicable to this Plan, any Option or
the Shares, or for any other purpose which may be permitted by all relevant
laws, rules and regulations, provided always that any such amendment shall not
alter the terms or conditions of any Option or impair any right of any Option
Holder pursuant to any Option awarded prior to such amendment.

6.3          
RETROACTIVE AMENDMENT

Subject to applicable regulatory approval, the Board may from
time to time retroactively amend this Plan and may also, with the consent of the
affected Option Holders, retroactively amend the terms and conditions of any
Options which have been previously awarded.

8

6.4          
EXCHANGE APPROVAL

With the consent of affected Option Holders, the Board may
amend the terms of any outstanding Option so as to reduce the number of optioned
Shares, increase the Exercise Price, or cancel an Option without Exchange
approval. Any other amendment will be subject to receiving prior Exchange
approval. 

6.5          
SHAREHOLDER APPROVAL

This Plan must be approved by the Company’s shareholders
annually, at a duly called meeting of the shareholders. Disinterested
shareholder approval (as defined in Exchange policy) will be required for: (i)
any reduction in the exercise price of Options granted to insiders, if the
Option Holder is an insider of the Company at the time of the proposed
amendment; and (ii) the situations where the Plan, together with all other
outstanding options could result at any time in:

	 	(a) 	
      the number of shares reserved for issuance under stock
      options granted to insiders exceeding 10% of the Company’s issued
      Shares;

	 	 	 
	 	(b) 	
      the grant to insiders, within a 12 month period, of a
      number of options exceeding 10% of the Company’s issued Shares;
  or

	 	 	 
	 	(c) 	
      if the Company becomes a Tier 1 issuer on the Exchange,
      the issuance to any one Option Holder, within a 12 month period, of a
      number of Shares exceeding 5% of the Company’s
Shares.

6.6          
TERMINATION

The Board may terminate this Plan at any time provided that
such termination shall not alter the terms or conditions of any Option or impair
any right of any Option Holder pursuant to any Option awarded prior to the date
of such termination and notwithstanding such termination the Company, such
Options and such Option Holders shall continue to be governed by the provisions
of this Plan.

6.7          
AGREEMENT

The Company and every person to whom an Option is awarded
hereunder shall be bound by and subject to the terms and conditions of this
Plan.

END OF DOCUMENT

9

Schedule A

TATMAR VENTURES INC.

STOCK OPTION PLAN

OPTION CERTIFICATE

This certificate is issued pursuant to the provisions of the
Tatmar Ventures Inc. (the “Company”) Stock Option Plan (the “Plan”) and
evidences that ________________________________ (Name of Optionee) is the
holder of an option (the “Option”) to purchase up to _________________
(Number of Shares) common shares (the “Shares”) in the capital stock of
the Company at a purchase price of $
_________ per Share. Subject to the
provisions of the Plan:

	(a) 	
      the Award Date of this Option is
      ____________________________ (insert date of grant); and

	 	 
	(b) 	
      the Expiry Date of this Option
      is ____________________________ (insert date of
  expiry).

Additional Vesting or Other Restrictions: (insert as
applicable)

 

 

This Option may be exercised in accordance with its terms at
any time and from time to time from and including the Award Date through to and
including up to 5:00 p.m. (Vancouver time) on the Expiry Date, by delivering to
the Company an Exercise Notice, in the form attached, together with this
certificate and a certified cheque or bank draft payable to the Company in an
amount equal to the aggregate of the Exercise Price of the Shares in respect of
which this Option is being exercised.

This certificate and the Option evidenced hereby is not
assignable, transferable or negotiable and is subject to the detailed terms and
conditions contained in the Plan. This certificate is issued for convenience
only and in the case of any dispute with regard to any matter in respect hereof,
the provisions of the Plan and the records of the Company shall prevail.

Signed this _________ day of  _____________________,
20_____.

Tatmar Ventures Inc.
by its
authorized signatory:

	 	 	 
	 	 	 
	NAME: 	 	 
	 	 	 
	TITLE: 	 	 

10

EXERCISE NOTICE

	To: 	The Administrator, Stock Option Plan 
	  	TATMAR VENTURES INC. (the “Company”)
  

 

The undersigned hereby irrevocably gives notice, pursuant to
the Company’s Stock Option Plan (the “Plan”), of the exercise of the Option to
acquire and hereby subscribes for (cross out non-applicable item):

	(a) 	
      all of the Shares; or

	 	 
	(b) 	
      __________________ of the Shares, which are the subject
      of the Option Certificate attached hereto.

Calculation of total Exercise Price:

	 	(i) 	number of Shares to be acquired on exercise:
	____________ Shares 
	 	 	 	 
	 	(ii) 	multiplied by the Exercise Price per Share: 	$___________ 
	 	 	 	 
	 		TOTAL EXERCISE PRICE, enclosed herewith: 	$___________ 

The undersigned tenders herewith a certified cheque or bank
draft in an amount equal to the total Exercise Price of the aforesaid Shares, as
calculated above, and directs the Company to issue the share certificate
evidencing said Shares in the name of the undersigned to be mailed to the
undersigned at the following address:

_____________________________________________

_____________________________________________

_____________________________________________

DATED the ______day of _____________________, 20___.

	 	 
	 	Signature of Option Holder 
	 	 
	 	 
	 	 
	 	Name of Option Holder (please print)Filed by Automated Filing Services Inc. (604) 609-0244 - Lexington Energy Services Inc. - Exhibit 10.9

Employment Agreement

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is effective
as of the 1st day of June, 2006.

BETWEEN:

LEXINGTON ENERGY SERVICES
INC.
Suite 1209, 207 West Hastings Street 
Vancouver British Columbia
Canada V6B 1H7

(the “Employer”) 

AND:

LARRY KRISTOF
11532 92nd
Avenue
Delta British Columbia Canada V4C 3K7

(the “Executive”)

WHEREAS:

1. The Employer is in the business of
leasing service equipment for oil and gas wells; 

2. The Employer and the Executive have
agreed to enter into an employment relationship for their mutual benefit;
and

3. This Agreement replaces the
Management Agreement entered into between the Employer and the Executive on
October 1, 2005.

THIS AGREEMENT WITNESSES that the parties have agreed
that the terms and conditions of the relationship shall be as follows:

1. Duties

          The
  Employer shall continue the appointment of the Executive to undertake the duties
  and exercise the powers as President, Chief Executive Officer, Chief Financial
  Officer, Chief Accounting Officer, Secretary and Treasurer of the Employer,
  as may be requested of the Executive by the Employer, and in the other offices
  to which the Executive may be appointed by the subsidiary companies of the Employer,
  and the Executive accepts the office, on the terms and conditions set forth
  in this agreement.

2. Term

          The
  Executive’s appointment shall continue until terminated in accordance with
  the provisions of clause 12 of this agreement.

3. Compensation

          The
  fixed remuneration of the Executive for his or her services shall be at the
  gross rate of CAD $8,000.00 per month, commencing the 1st day of
  June, 2006. The Employer will take source deductions of all statutorily required
  items. The Executive will be paid on a monthly basis.

          In
  addition, the Executive shall be compensated with options from time to time,
  at the discretion of the board of directors.

4. Benefits

          (1)
  Expenses. It is understood and agreed that the Executive will incur expenses
  in connection with his or her duties under this agreement. The Employer will
  reimburse the Executive for any expenses, provided that the Executive provides
  to the Employer an itemized written account and receipts acceptable 

1

to the Employer within 10 days after they have been incurred.
The Executive will not be reimbursed for any item in excess of $5,000.00 unless
approved in advance by the board of directors.

          (2)
  Automobile Allowance. The Executive shall receive an automobile allowance
  of CAD $1,450,00 per month for the use of the Executive’s automobile in
  the performance of his or her duties under this Agreement.

          (3)
  Benefit plans. At this time, the Employer has no benefit package. However,
  if the Employer later obtains a benefit package, the Executive shall participate
  in all benefit plans which the Employer may provide to its employees.

5. Authority

          (1)
  The Executive shall have, subject always to the general or specific instructions
  and directions of the board of directors of the Employer, full power and authority
  to manage and direct the business and affairs of the Employer (except only the
  matters and duties as by law must be transacted or performed by the board of
  directors or by the shareholders of the Employer in a general meeting), including
  power and authority to enter into contracts, engagements or commitments of every
  nature or kind in the name of and on behalf of the Employer and to engage and
  employ and to dismiss all managers and other employees and agents of the Employer
  other than officers of the Employer, provided always that no contract shall
  be made which might involve the Employer in an expenditure exceeding $50,000.00
  and no person shall be engaged or appointed as an employee of the Employer at
  remuneration in excess of $60,000.00 per annum, nor shall the remuneration of
  any employee or agent of the Employer be increased so as to exceed $60,000.00
  per annum without, in each case, the prior approval of the board of directors.

          (2)
  The Executive shall conform to all lawful instructions and directions given
  to the Executive by the board of directors of the Employer, and obey and carry
  out the by-laws of the Employer.

6. Service

          (1)
  The Executive, throughout the term of the Executive’s appointment, shall
  devote his or her full time and attention to the business and affairs of the
  Employer and its subsidiaries and shall not, without the consent in writing
  of the board of directors of the Employer, undertake any other business or occupation
  or become a director, officer, employee or agent of any other company, firm
  or individual.

          (2)
  The Executive shall well and faithfully serve the Employer and its subsidiaries
  and use his or her best efforts to promote the interests thereof and shall not
  disclose the private affairs of the Employer and its subsidiaries to any person
  other than the board of directors of the Employer or for any purposes other
  than those of the Employer.

7. Non-competition

          The
  Executive agrees with and for the benefit of the Employer that for a period
  of 48 months from the date of termination of his or her employment (whether
  such termination is occasioned by the Executive or by the Employer with or without
  cause, or by mutual agreement), the Executive will not, for any reason, directly
  or indirectly, either as an individual, or as a partner or joint venturer, or
  as an employee, salesperson, principal, consultant, agent, shareholder, officer
  or director, of any person, business, firm, association, syndicate, company,
  organization or corporation, or in any other manner (such person, business,
  etc., being hereinafter respectively and collectively referred to as an “Entity”),
  carry on, be engaged in, concerned with, interested in, advise, lend money to,
  guarantee the debts or obligations of, or permit his or her name or any part
  of it to be used or employed by any entity concerned with or engaged in or interested
  in, a business which is the same as, or competitive with, the business of the
  Employer, including, without limitation, any business relating to oil field
  services, within the geographical area of Southern Alberta. The Executive shall,
  however, be entitled, for investment purposes, to purchase and trade shares
  of a public company which are listed and posted for trading on a recognized
  stock exchange the business of which public company is in competition with the
  business of 

2

the Employer, so long as the Executive shall not directly or
indirectly own more than 10% of the issued share capital of the public company,
or participate in its management or operation or act in any advisory capacity to
such public company.

8. Non-solicitation

          (1)
  The Executive agrees with and for the benefit of the Employer that for a period
  of 48 months from the date of termination of his or her employment (whether
  such termination is occasioned by the Executive or by the Employer with or without
  cause, or by mutual agreement), the Executive will not, for any reason, directly
  or indirectly, either as an individual, or as a partner or joint venturer, or
  as an employee, salesperson, principal, consultant, agent, shareholder, officer
  or director, of any entity, solicit or accept business with respect to products
  competitive with those of the Employer from any of the Employer’s customers,
  wherever situate.

          (2)
  The Executive also agrees that:

(a) during the Executive’s employment
he or she will not hire or take away or cause to be hired or taken away any
employee of the Employer; and

(b) for a period of 48 months following
the termination of employment (whether such termination is occasioned by the
Executive, by the Employer, with or without cause, or by mutual agreement), the
Executive will not hire or take away or cause to be hired or taken away any
employee who was in the employ of the Employer during the 24 months preceding
such termination.

9. Confidential Information

          (1)
  The Executive acknowledges that as the President, Chief Executive Officer, Chief
  Financial Officer, Chief Accounting Officer, Secretary and Treasurer of the
  Employer and in any other position as the Executive may hold, he or she will
  acquire information about certain matters and things which are confidential
  to the Employer, and which information is the exclusive property of the Employer,
  including:

(a) product design and manufacturing
information;
(b) names and addresses, buying habits and preferences of
present customers of the Employer, as well as prospective customers; 
(c)
pricing and sales policies, techniques and concepts; 
(d) trade secrets; and

(e) confidential information concerning the business operations or financing
of the Employer, or its subsidiaries.

          (2)
  The Executive acknowledges that the information referred to in clause 9(1) could
  be used to the detriment of the Employer. Accordingly, the Executive undertakes
  not to disclose same to any third party either during the term of his or her
  employment (except as may be necessary in the proper discharge of the Executive’s
  employment under this agreement), or after the termination of his or her employment
  (whether such termination is occasioned by the Executive, by the Employer with
  or without cause, or by mutual agreement), except with the written permission
  of an officer of the Employer. The Executive also agrees that the unauthorized
  disclosure of any such information during the life of this agreement shall justify
  the immediate termination of his or her employment.

          (3)
  The Executive’s further obligations regarding Confidential Information
  are contained in the Confidentiality Agreement dated June 1, 2006 between the
  Executive and the Employer (the “Confidentiality Agreement”).

10. Injunctive Relief

          (1)
  The Executive acknowledges that in addition to any and all rights of the Employer,
  the 

3

Employer shall be entitled to injunctive relief in order to
protect the Employer’s rights and property as set out in clauses 7, 8 and 9 of
this agreement.

          (2)
  The Executive understands and agrees that the Employer has a material interest
  in preserving the relationship it has developed with its customers against impairment
  by competitive activities of a former employee. Accordingly, the Executive agrees
  that the restrictions and covenants contained in clauses 7, 8 and 9 of this
  agreement and the Executive’s agreement to them by the execution of this
  agreement are of the essence to this agreement and constitute a material inducement
  to the Employer to enter into this agreement and to employ the Executive, and
  that the Employer would not enter into this agreement absent such an inducement.
  Furthermore, the existence of any claim or cause of action by the Executive
  against the Employer, whether predicated on this agreement or otherwise, shall
  not constitute a defense to the enforcement by the Employer of the covenants
  or restrictions provided in clauses 7, 8 and 9 provided, however, that if any
  provision shall be held to be illegal, invalid or unenforceable in any jurisdiction,
  the decision shall not affect any other covenant or provision of this agreement
  or the application of any other covenant or provision.

11. Vacation

          The
  Executive shall be entitled during each year to 4 weeks’ paid vacation.
  The vacation shall be taken at the time or times as the board of directors may
  determine. The Executive shall be allowed to carry forward any unused vacation
  into the next calendar year but not further.

12. Termination of Employment

          (1)
  The parties understand and agree that the Executive’s employment pursuant
  to this agreement may be terminated as follows:

          (a)
  by the Executive, at any time, for any reason, on the giving of notice to the
  Employer in accordance with the British Columbia Employment Standards Act (the
  “Act”). The Employer may waive notice, in whole or in part and if
  it does so, the Executive’s entitlement to remuneration and benefits pursuant
  to this agreement will cease on the date it waives such notice;

          (b)
  by the Employer in its absolute discretion and for any reason on giving the
  Executive notice in accordance with the Act or on paying to the Executive the
  equivalent pay in lieu of notice. The payments contemplated in this clause include
  all entitlement to either notice or pay in lieu of notice [and statutory severance
  pay] under the Act. In the event the minimum statutory requirements as at the
  date of termination provide for any greater right or benefit than that provided
  in this agreement, such statutory requirements will replace the payments contemplated
  under this agreement. The Executive agrees to accept the notice (or pay in lieu
  of notice) as set out in this clause in full and final settlement of all amounts
  owing to the Executive by the Employer on termination, including any payment
  in lieu of notice of termination, entitlement of the Executive under any applicable
  statute and any rights which the Executive may have at common law, and the Executive
  waives any claim to any other payment or benefits from the Employer.

          (c)
  by the Employer, in its absolute discretion, without any notice or pay in lieu
  thereof, for “cause”. Cause includes, but is not limited to the following:

(i) any material breach of the
provisions of this agreement;
(ii) any conduct of the Executive which tends
to bring the Executive or the Employer into disrepute;
 (iii) the conviction
of the Executive of a criminal offence punishable by indictment (where such
cause is not prohibited by law); and (iv) any and all omissions, commissions or
other conduct which would constitute “cause” at law.

4

           (2)
  The Executive’s employment shall also be terminated upon his or her death.

           (3)
  The parties understand and agree that the giving of notice or the payment of
  pay in lieu of notice by the Employer to the Executive on termination of the
  Executive’s employment shall not prevent the Employer from alleging cause
  for the termination.

           (4)
  On termination of employment the Executive shall immediately resign all offices
  held (including directorships) with the Employer and save as provided in this
  agreement, the Executive shall not be entitled to receive any payment or compensation
  for loss of office or otherwise by reason of the resignation. If the Executive
  fails to resign as mentioned the Employer is irrevocably authorized to appoint
  some person in the Executive’s name and on his or her behalf to sign any
  documents or do any things necessary or requisite to give effect to such resignation.

           (5)
  The Executive’s obligations under clauses 7, 8 and 9 shall survive the
  termination of the Executive’s employment pursuant to this agreement.

13. Employer’s Property

           The
  Executive acknowledges that all items of any and every nature or kind created
  or used by the Executive pursuant to his or her employment under this agreement,
  or furnished by the Employer to the Executive, and all equipment, automobiles,
  credit cards, books, records, reports, files, diskettes, manuals, literature,
  confidential information or other materials, shall remain and be considered
  the exclusive property of the Employer at all times and shall be surrendered
  to the Employer, in good condition, promptly at the request of the Employer,
  or in the absence of a request, on the termination of the Executive’s employment
  with the Employer.

14. Currency

           Unless
  otherwise stated, all amounts in this agreement are in Canadian dollars.

15. Assignment of Rights

           The
  rights which accrue to the Employer under this agreement shall pass to its successors
  or assigns. The rights of the Executive under this agreement are not assignable
  or transferable in any manner.

16. Notices

           (1)
  Any notice required or permitted to be given to the Executive shall be sufficiently
  given if delivered to the Executive personally or if mailed by registered mail
  to the Executive’s address last known to the Employer, or if delivered
  to the Executive via facsimile.

           (2)
  Any notice required or permitted to be given to the Employer shall be sufficiently
  given if mailed by registered mail to the Employer’s head office at its
  address last known to the Executive, or if delivered to the Employer via facsimile.

17. Severability

           In
  the event that any provision or part of this agreement shall be deemed void
  or invalid by a court of competent jurisdiction, the remaining provisions or
  parts shall be and remain in full force and effect.

18. Entire Agreement

           This
  document and the Confidentiality Agreement dated June 1, 2006 constitute the
  entire 

 5

agreement between the parties with respect to the employment
and appointment of the Executive and any and all previous agreements (except for
any Option Agreements), written or oral, express or implied, between the parties
or on their behalf, relating to the employment and appointment of the Executive
by the Employer, are terminated and cancelled and each of the parties releases
and forever discharges the other of and from all manner of actions, causes of
action, claims and demands whatsoever, under or in respect of any agreement.

19. Modification of Agreement

          Any
  modification to this agreement must be in writing and signed by the parties
  or it shall have no effect and shall be void.

20. Headings

          The
  headings used in this agreement are for convenience only and are not to be construed
  in any way as additions to or limitations of the covenants and agreements contained
  in it.

21. Governing Law

          This
  agreement shall be construed in accordance with the laws of the Province of
  British Columbia.

IN WITNESS WHEREOF this Agreement is effective as of the
date first written.

	LEXINGTON ENERGY SERVICES INC. 	 	EXECUTIVE: 
	by its authorized signatory 	 	  
	 	 	 
	/s/ Brent
      Nimeck 	 	/s/ Larry
      Kristof 
	Brent Nimeck, VP of Operations 	 	Larry Kristof 

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