Document:

Unassociated Document

    
      CONSULTING
        AGREEMENT - ECM

       

      This
        Consulting Agreement is by and between Indigo-Energy, Inc., (IEI), a Nevada
        Corporation located at 701 N. Green Valley Pkwy, Suite 200, Henderson, NV
        89074,
        and Everett Miller, an Individual located at 701 Rt. 73 South, Suite 410,
        Marlton, NJ 08053 (ECM),
        collectively referred to as “The Parties.”

       

      WHEREAS,
        JET is a developer of energy related properties, and

       

      WHEREAS,
        ECM has various connections, networking contacts, and experience in the
        development of financial related properties, financial market development,
        and
        business strategic planning.

       

      NOW,
        THEREFORE, in consideration of the mutual covenants provided herein, the
        Parties
        agree as follows:

       

      Services.

       

      ECM
        will
        perform ongoing duties under the direction of JET’s President under the
        following parameters:

       

      
        	1.  	
                Provide
                  consulting services and support for business development of the
                  JET family
                  of energy related properties.

              

      

       

      
        	2.  	
                Assist
                  in development of the JET Strategic Marketing and Business
                  Plan.

              

      

       

      
        	3.  	
                Develop
                  opportunities for both short and long term funding for
                  lET.

              

      

       

      
        	4.  	
                Handle
                  other duties as assigned by TEl’s
                  management.

              

      

       

      Compensation.
        TEl
        shall compensate ECM for these services as follows:

       

      
        	1.  	
                Reimbursement
                  for all approved business-related
                  expenses.

              

      

       

      
        	2.  	
                Further,
                  ECM or its assigns shall receive two million five-hundred thousand
                  (2,500,000) non-qualified stock options in JET, said options are
                  to be
                  part of the JET Stock Option Plan of 2007, and have an option price
                  of
                  $.25 per share, approximately double the current market price.
                  Said
                  options are to be issued within 30 days pf signing of this
                  Agreement.

              

      

       

      Independent
        Contractor and No Agency Relationship.
        ECM
        shall be compensated as an independent contractor with no employee relationship
        or agency and principal relationship and shall thereby be responsible for
        all
        its own taxes, insurance, licenses and fees and expenses related to its business
        and this Agreement.

       

      Termination.
        Either
        party may terminate this relationship, without cause, after the initial term
        of
        the Agreement, with thirty (30) days notice to the other, provided all
        compensation is current.

       

      Governing
        Law.
        This
        Agreement is being executed under and will be governed by the laws of the
        State
        of Nevada.

       

      Term.
        The
        term of this Agreement is three months commencing January 1,
        2008.

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

      
         

        IN
          WITNESS THEREOF, the Parties have executed this Agreement effective as
          of the
          date signed below.

         

        
          	For
                  Indigo-Energy, Inc.	 	 	 
	 	 	 	 
	 	 	 	 
	
                  
Steven
                  P. Durdin, President Date	 	 	
                
	
                	 	 	
                

        

        
          	 	 	 	 
	
                  For
                    Everett C. Miller,

                	 	 	 
	 	 	 	 
	
                  

                  Everett
                    C. Miller, an individual Date

                	 	 	
                

        

         

         

        
          
             

          

          
            2Unassociated Document

    MODIFICATION
      AND SETTLEMENT AGREEMENT

     

    This
      Modification and Settlement Agreement (the “Agreement”)
      is
      made and entered into as of this __ day of March 2008 by and among
      Indigo-Energy, Inc., a corporation organized under the laws of the State of
      Nevada (the “Company”) and TAPO Energy, LLC, a limited liability company
      organized under the laws of the State of [______] (“TAPO” and together with the
      Company, the “Parties”).

     

    WHEREAS,
      the
      Company previously entered into a Drilling and Operating Agreement with TAPO
      dated [___________] (the “Original Agreement”), pursuant to which the Company
      engaged TAPO to perform certain services on the Company’s behalf with respect to
      the development of certain oil and gas interests;

     

    WHEREAS,
      the
      Parties have agreed that it is in all of their interests to modify the terms
      provided under the Original Agreement, including those terms relating to the
      payment of certain obligations of the Company owed to TAPO; and

     

    WHEREAS,
      the
      Company has offered and TAPO has agreed to accept modifications to the terms
      and
      condition provided in the Original Agreement, subject to the provisions set
      forth herein.

     

    NOW
      THEREFORE,
      the
      Parties hereto agree as follows:

     

    Section
      1.   Release.
      Effective upon the execution of this Agreement set forth herein, TAPO hereby
      releases the Company from any liability arising out of or by virtue of the
      Original Agreement, except the obligation to make payments as set forth below.
      Further, the Company, for itself and for its officers, directors, employees,
      agents and consultants, hereby agrees to release TAPO, its employees, agents,
      attorneys, consultants and affiliates, from any liability to the Company or
      any
      of its affiliates, arising out of or by virtue of the Original
      Agreement.

     

    Section
      2.   Consideration.
      As
      consideration for this release and settlement by the Parties the Parties hereby
      agree as follows:

     

    a.  Payment
      of Amounts Owed —
The
      Company acknowledges, and TAPO agrees, that the Company is indebted to TAPO
      in
      the amount of $671,598 under the Original Agreement (the “Old Obligation”). The
      Parties agree that the Old Obligation will be satisfied by the assignment hereby
      of all of the Company’s rights and interests in the revenue earned from the
      wells specified in Schedule A hereof (the “Wells”). The assignment specified in
      the immediately preceding paragraph shall be subject to the following
      terms:

     

    i.  Period.
      The
      Company hereby assigns to TAPO all of its right to receive the revenue earned
      from the Wells for a period of 48 months (retroactively commencing in January
      2008), or until the Old Obligation is hilly satisfied, whichever is later (the
      “Assignment Period”). After the expiration of the Assignment Period, all rights
      assigned to TAPO under this Agreement shall automatically revert back to the
      Company with a new Carried Interest
      of 65% (i.e. after the Assignment Period, the Company shall be entitled to
      a 65%
carried
      interest in the Wells), without need of a further agreement between the
      Parties.

     

    ii.  Right
      to Audit.
      The
      Company shall have the right to audit TAPO’s financial books and records upon
      fifteen (15) days prior written notice given to TAN). The right to audit given
      to the Company shall be exercised by the Company in good faith and only for
      the
      purposes of determining the amount of revenue received by TAPO from the
      Wells.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    iii.  Right
      to Statements.
      TAPO
      undertakes to provide the Company with a monthly written statement indicating
      the amounts received by TAPO as revenue from the Wells, irrespective of whether
      the Company exercises its audit right under the immediately preceding paragraph,
      As a condition to the effectiveness of this Agreement, TAPO shall have provided
      a reconciliation of all amounts received from any gas vendor in 2007 with
      respect to the wells.

     

    b.  Additional
      Payments
      - In
      addition to the assignment provided under Section 2 hereof, and as additional
      consideration for the mutual release contemplated in this Agreement, the Company
      assigns and transfers to TAPO, its heirs, successors and assigns, and TAPO
      hereby accepts 84.375% of the Company’s right, title, mineral rights and
      interests (the “Interests”) in three (3) drill sites identified in Schedule B
      hereof (the “Drill Sites”) situated on a 420-acre parcel of land owned by the
      Company (the “Leased Property”), on the following terms:

     

    
      	i.  	
              Each
                Drill Site shall hold a certain portion of the Leased Property and
                shall
                include all land within 500 foot radius around such Drill
                Site.

            

    

     

    
      	ii.  	
              The
                assignment of the Company’s rights, title, mineral rights and interest in
                the Drill Sites is intended as a 100% assignment of the Company’s 84.375%
                interest in such Drill Site to TAPO, its heirs, successors and
                assigns.

            

    

     

    
      	iii.  	
              In
                consideration for the rights granted to TAPO, TAPO undertakes to
                remit to
                the Company an “override royalty” equal to 3.125% of all net revenues
                generated by TAPO on the Leased
                Property.

            

    

     

    
      	iv.  	
              The
                Company shall also be entitled to, and TAPO hereby agrees to pay
                to the
                Company, a Land Ownership Interest Royalty in an amount equal to
                12.5% of
                all revenue earned by TAPO from the Leased
                Property.

            

    

     

    
      	v.  	
              TAPO
                shall remit to the Company all amounts due to the Company under this
                Agreement, whether as “override royalty”, as Land Ownership Interest
                Royalty or otherwise, within 10 days of receipt of funds from the
                purchasing vendor, without need of demand on the part of the
                Company.

            

    

     

    
      	vi.  	
              TAPO
                shall observe, and shall be solely responsible for complying with
                all
                relevant regulatory standards and regulations imposed upon, and relative
                to, the drilling operations to be conducted by TAPO on the Leased
                Property, including, but not limited to, the observance of all legal
                offset requirements relative to the existing wells of the
                Company.

            

    

     

    c.  Wells
      Covered
      - The
      Company agrees that upon execution of this Agreement, and for the duration
      of
      the Assignment Period, all .01 its right and interest in the revenue of the
      Wells, as identified in Schedule A hereto, will be transferred to TAPO so that
      the Company will have no right to any portion of the revenue related to or
      generated by such Wells.

     

    d.  Entry
      into Transportation Agreement.
      As soon
      as practicable after the execution of this Agreement, the Parties agree and
      undertake to enter into a Standard Transportation Agreement which shall grant
      TAPO, under certain conditions to be stipulated therein, the right to transport
      all gas produced and recovered from the Wells and the Leased Property through
      the Company’s existing pipelines. Said rate to be the greater of 5% of the gas
      price paid or $0.50 per MCF but in no case less than $0.15 per MCF in order
      to
      ensure the proper allocation of suck gas recovered from the Wells and from
      the
      Leased Property, TAPO undertakes, immediately upon the execution of this
      Agreement, to install a meter on all existing pipes of the Company, and intended
      to be used by TAPE), for the purpose of verifying the amount of gas generated
      by
      the wells operated by TAPO.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Section
      3.   Successors.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties and
      their respective administrators, representatives, executors, successors and
      assigns, either by reason of death, incapacity, merger, consolidation, and/or
      purchase or acquisition of substantially all of the Company’s assets or
      otherwise.

     

    Section
      4.   Governing
      Law.
      Each
      Party acknowledges that it has been represented by counsel in connection with
      this Agreement, and has executed the same with knowledge of its consequences.
      This Agreement is made and entered into under New York law and shall be
      interpreted, enforced and governed under the laws of the laws of New York
      without regard to its conflicts of laws principles.

     

    Section
      5.   Paragraph
      Headings.
      The
      paragraph headings used in this Agreement are intended solely for convenience
      of
      reference and shall not in any manner amplify, limit, modify or otherwise be
      used in the interpretation of any of the provisions hereof.

     

    Section
      6.   Severability.
      Should
      any of the provisions of this Agreement be declared or be determined to be
      illegal or invalid, the validity of the remaining parts, terms or provisions
      shall not be affected thereby and said illegal or invalid pan, term or provision
      shall be deemed not to be a part of this Agreement.

     

    Section
      7.   Entire
      Agreement.
      Except
      as provided in the next sentence, this Agreement sets forth the entire agreement
      between the Parties, and fully supersedes any and all prior agreements or
      understandings between the Parties pertaining to the subject matter hereof,
      including, but not limited to, the Original Agreement. Notwithstanding the
      foregoing, if either party defaults in any payments due under this Agreement,
      or
      defaults in any other term or provision of this Agreement, the other party
      shall
      be entitled to enforce this Agreement and the Original Agreements, at its sole
      option.

     

    Section
      8.   Counterparts.
      This
      Agreement may be executed in counterparts. Each counterpart shall be deemed
      an
      original, and when taken together with the other signed counterpart, shall
      constitute one fully executed Agreement.

     

    Section
      9.   Further
      Assurances.
      From
      and after the date hereof, the parties hereto shall take all actions, including
      the execution and delivery of all documents, necessary to effectuate the terms
      hereof.

     

    Section
      10.   Survival.
      All
      obligations of the Parties as set forth herein shall survive the execution
      and
      delivery hereof.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

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

     

    
      	 	 	 
	 	
              INDIGO-ENERGY,
                INC.

            
	 
 	 
 	 
 
	 	
              /s/ Steven P. Durdin

              
                

              

              By: Steven
                P. Durdin, President

              Date: 

            
	 	
            

    

     

    
      	 	 	
              TAPO
                ENERGY, LLC

            
	 	 
	 
 	 
 	 
 
	 	 	/s/ 
	 	
              
                

              

              By:

              
                Title: Manager

                
                  Date: 04/02/08

                

              

            
	 	 

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Schedule
      A

     

    
      	1.  	
              Suan
                Well #1

            

    

    
      	 	 

    

    
      	2.  	
              Suan
                Well #2

            

    

    
      	 	 

    

    
      	3.  	
              Suan
                #3

            

    

    
      	 	 

    

    
      	4.  	
              Hudkind
                Well #2

            

    

    
      	 	 

    

    
      	5.  	
              Hudkins
                Well #3

            

    

     

     

    
      
         

      

      
        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]