Document:

Exhibit 10.1

                            ASSET PURCHASE AGREEMENT

         This Asset Purchase Agreement ("Agreement") is entered into effective
as of the ____ day of January, 2006 ("Effective Date"), among PANGEA PETROLUEM
CORPORATION, a Colorado corporation ("Purchaser," "Pangea" or the "Company") and
Christopher Scully ("Seller" or "Scully").

         WHEREAS, Scully is the owner of leasehold working interests in certain
oil and gas leases situated in Fort Bend County, Texas ("Blue Ridge Field
Leases") and New York State ("New York Lease") (hereinafter collectively
referred to as "Projects") and as more fully described on Exhibit "A", attached
hereto and incorporated herein; and.

         WHEREAS, Seller desires to sell a 1.5% working interest in the Blue
Ridge Field and a 2.5% working interest in the New York Leases (the "Working
Interests") and Purchaser desires to purchase the Working Interests in the
Projects from Scully and Seller and Purchaser have agreed that the sale should
be consummated under the terms and conditions hereof.

         NOW, THEREFORE, in consideration of the premises, the mutual covenants
and agreements and the respective representations and warranties herein
contained, and on the terms and subject to the conditions herein set forth, the
parties hereto, intending to be legally bound, hereby agree as follows:

                               TERMS OF AGREEMENT:

         NOW, THEREFORE, for valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Seller, and Purchaser covenant and agree as
follows:

         1. Agreement to Sell and to Purchase. Seller hereby agrees to sell,
convey and assign the Working Interest unto Purchaser, and Purchaser hereby
agrees to accept and purchase the Working Interest from Seller for the Purchase
Price (hereinafter defined) and on and subject to the conditions herein set
forth.

         2. Transfer of Assignment.

         (a) Blue Ridge Field: Pangea will receive the assignment of the Working
         Interest for the Blue Ridge Field leases from the operator, Kellco
         Energy, Ltd., after the costs of purchase and drilling, have been
         recouped from the sale of products from the fields' wells ("payout").
         Payout is expected to occur in approximately 12 months from the signing
         of this agreement. Payout balance to be provided monthly indicating
         amount paid toward each outstanding loan and total outstanding balance
         for each loan.

         (b) New York Lease: Pangea will receive the assignment of the Working
         Interest for the New York leases from the operator, Kelly Oil & Gas,
         after production is established from any well drilled by Kelly Oil and
         Gas on the New York Lease ("Production").

<PAGE>

         3. Consideration.

         (a) Common Stock. In consideration of the payment for the Working
         Interests, Purchaser agrees to issue 20,000,000 shares of its
         restricted common stock (the "Shares"), which shall be issuable at
         Closing.

         (b) Warrants. Pangea shall provide additional compensation in the form
         of 5,000,000 warrants to purchase common stock at a strike price of
         $0.015 per share when each of the following occurs:

                  (i)      The net monthly revenue to Pangea for the New York
                           Lease exceeds $1,000 per month; and

                  (ii)     The net monthly revenue to Pangea for the Blue Ridge
                           Field leases exceeds $1,000 per month.

         4. Closing. Closing shall take place on or before 5:00 p.m., January 6,
2006, ("Closing") at the offices of Axelrod, Smith & Kirshbaum, 5300 Memorial
Drive, Suite 700, Houston, Texas 77007, or such other time and place as may be
agreed upon by the parties, at which time Seller and Purchaser shall exchange
all documentation and transfer all consideration described herein.

         5. Representations and Warranties of Seller. Seller hereby represents
and warrants to Purchaser as follows:

         (a) Authorization. Scully represents that he is a person of full age of
         majority, with full power, capacity, and authority to enter into this
         Agreement and perform the obligations contemplated hereby by and for
         himself and his spouse. All action on the part of Scully necessary for
         the authorization, execution, delivery and performance of this
         Agreement by him has been taken and will be taken prior to Closing.
         This Agreement, when duly executed and delivered in accordance with its
         terms, will constitute legal, valid and binding obligations of Scully
         enforceable against him in accordance with its terms, except as may be
         limited by bankruptcy, insolvency, reorganization and other similar
         laws of general application affecting creditors' rights generally or by
         general equitable principles.

         (b) Consents. No consent of, approval by, order or authorization of, or
         registration, declaration or filing by the Seller with any court or any
         governmental or regulatory agency or authority having jurisdiction over
         the Seller or any of its property or assets is required on the part of
         the Seller (a) in connection with the consummation of the transactions
         contemplated by this Agreement or (b) as a condition to the legality,
         validity or enforceability as against the Seller of this Agreement,
         excluding any registration, declaration or filing the failure to effect
         which would not have a material adverse effect on the financial
         condition of the Company. No consent or approval of any other third
         party is required in connection with the execution, delivery and
         performance by the Seller of this Agreement.

<PAGE>

         (c) Books and Records. During the term of this Agreement, the Seller
         shall maintain a comprehensive system of records, books and accounts
         regarding the operation of the Projects. All records shall be subject
         to examination by Pangea, or its authorized agents, attorneys and
         accountants at all reasonable hours in order to verify the status of
         Payout or Production, as the case may be for each of the Projects. No
         later than the twentieth (20th) day of each month, with respect to the
         preceding month, the Seller shall provide to Pangea a statement of
         account for each of the Projects, including any and all information
         Seller receives from the operator of each Project.

         (d) Title to Properties; Encumbrances. Seller has good and marketable
         title to the Working Interests, free and clear of all mortgages,
         claims, liens, security interests, charges, leases, encumbrances and
         other restrictions of any kind and nature.

         (e) Acquisition of Stock for Investment. The Seller understands that
         any issuance of the Shares (as referenced in Section 3 herein) will not
         have been registered under the Securities Act of 1933, as amended (the
         "Act"), or any state securities acts, and are accordingly, are
         restricted securities, and the Seller represents and warrants to the
         Purchaser that the Seller's present intention is to receive and hold
         the Shares for investment only and not with a view to the distribution
         or resale thereof.

                  Additionally, the Seller understands that any sale of any the
         Shares issued, under current law, will require either (a) the
         registration of the Shares under the Act and applicable state
         securities acts; (b) compliance with Rule 144 of the Act; or (c) the
         availability of an exemption from the registration requirements of the
         Act and applicable state securities acts.

                  The Seller represents that he is an "Accredited Investor" as
         that term is defined in the Securities Act of 1933, as amended. The
         Seller also represents that he is acquiring the Shares solely for his
         own beneficial account, for investment purposes, and not with view to,
         or for resale in connection with, any distribution of the Shares. The
         Seller understands that the Purchaser is relying upon the
         representations, covenants and agreements contained in this Agreement
         (and any supplemental information) for the purposes of determining
         whether this transaction meets the requirements for such exemptions.

                  The Seller has not offered or sold any portion of the Shares
         and has no present intention of dividing such Shares with others or of
         reselling or otherwise disposing of any portion of such Share either
         currently or after the passage of a fixed or determinable period of
         time or upon the occurrence or nonoccurrence of any predetermined event
         or circumstance.

                  To assist in implementing the above provisions, the Seller
         hereby consent to the placement of the legend, or a substantially
         similar legend, set forth below, on all certificates representing
         ownership of the Shares acquired hereby until the Shares have been
         sold, transferred, or otherwise disposed of, pursuant to the
         requirements hereof. The legend shall read substantially as follows:

<PAGE>

                  "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
                  SECURITIES ACTS. THESE SECURITIES HAVE BEEN ACQUIRED FOR
                  INVESTMENT, ARE RESTRICTED AS TO TRANSFERABILITY, AND MAY NOT
                  BE SOLD, HYPOTHECATED, OR OTHERWISE TRANSFERRED WITHOUT
                  COMPLIANCE WITH THE REGISTRATION AND QUALIFICATION PROVISIONS
                  OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE
                  EXEMPTIONS THEREFROM."

         (f) Litigation. There is no claim, suit, arbitration, investigation,
         judgment, action or other proceeding, whether judicial, administrative
         or otherwise, now pending or, to the best of Seller's knowledge,
         threatened before any court, arbitration, administrative or regulatory
         body or any governmental agency which may result in any judgment,
         order, award, decree, liability or other determination which will or
         could reasonably be expected to have a material adverse effect upon the
         transfer by Seller to Purchaser of the Shares under this Agreement.

         (g) Compliance with Laws; Permits. Seller is, and at all times prior to
         the date hereof has been, to the best of his knowledge, in compliance
         with all statutes, orders, rules, ordinances and regulations applicable
         to it or to the ownership of their assets or the operation of his
         businesses, except for failures to be in compliance that would not have
         a material adverse effect on the business, properties or condition
         (financial or otherwise) of Seller. Except as contemplated by this
         Agreement, Seller owns, holds, possesses or lawfully uses in the
         operation of its business all permits and licenses which are in any
         manner necessary for it to conduct its business as now or previously
         conducted. The Seller possesses all permits from all governmental
         bodies that are necessary to the ownership and operation of the
         Projects as currently conducted, and all such Permits are in full force
         and effect. No lawsuits, actions, proceedings or investigations by or
         against the Projects are pending, or, to Seller's knowledge, threatened
         seeking the revocation or limitation of any such Permit.

<PAGE>

         (h) Environmental Matters. The Seller (or its operator) has operated
         the Projects in compliance with all applicable environmental laws and
         environmental permits; (b) there are no existing, pending or to
         Seller's knowledge threatened actions, suits, investigations,
         inquiries, or proceedings by or before any court, any governmental body
         or third party relating to any environmental laws, with respect to the
         Seller's business; (c) all notices and environmental permits, if any,
         required to be obtained or filed under any applicable environmental
         laws in connection with the Seller's business or the operations of the
         Projects, including treatment, storage, disposal or release of a
         hazardous substance or solid waste into the environment, have been duly
         obtained or filed, and are validly in effect if issued, and the Seller
         is in compliance therewith; and (d) to Seller's knowledge, there are no
         conditions existing or resulting from the conduct of the operations of
         the Projects that have been given or will give rise to any unsatisfied
         on-site or off-site response, removal, closure or remedial obligations
         of the Seller under any environmental laws. The terms "release" and
         "hazardous substance" have the meanings specified in CERCLA, and the
         term "disposal" has the meaning specified in RCRA. (i) No Conflicts.
         The execution and delivery by the Seller of this Agreement does not,
         and the performance and consummation by the Seller of the transactions
         contemplated hereby will not (i) conflict with or result in a breach or
         violation of, or default under, or give rise to any right of
         acceleration or termination of, any of the terms, conditions or
         provisions of any note, bond, lease, license, agreement or other
         instrument or obligation to which the Seller is a party or by which the
         Seller's assets or properties are bound; or (ii) violate any law, rule,
         regulation or order applicable to the Seller or any of the Seller's
         assets or properties.
         (j) No Pending Transactions. Except for the transactions contemplated
         by this Agreement, Seller is not a party to or bound by or the subject
         of any agreement, undertaking, commitment or discussions or
         negotiations with any person that could result in the sale of the
         Working Interests.

         (k) Insurance Policies. Copies of all insurance policies maintained by
         the Seller (or its operator) relating to the Projects have been
         delivered or made available to Purchaser. The policies of insurance
         held by the Seller are in such amounts, and insure against such losses
         and risks, as the Seller reasonably deems appropriate for its property
         and business operations. All such insurance policies are in full force
         and effect, and all premiums due thereon have been paid. Valid policies
         for such insurance will be outstanding and duly in force at all times
         prior to the Closing.

         (l) Disclosure. No representation or warranty of Seller contained in
         this Agreement (including the exhibits hereto) contains any untrue
         statement or omits to state a material fact necessary in order to make
         the statements contained herein or therein, in light of the
         circumstances under which they were made, not misleading.

         (m) Brokerage Commission. No broker or finder has acted for the Seller
         in connection with this Agreement or the transactions contemplated
         hereby, and no person is entitled to any brokerage or finder's fee or
         compensation in respect thereof based in any way on agreements,
         arrangements or understandings made by or on behalf of Seller.

         6. Representations and Warranties of Purchaser. Purchaser hereby
represents and warrants to Seller as follows:

<PAGE>

         (a) Organization, Good Standing and Qualification. Purchaser (i) is an
         entity duly organized, validly existing and in good standing under the
         laws of the state of Colorado, (ii) has all requisite power and
         authority to carry on its business, and (iii) is duly qualified to
         transact business and is in good standing in all jurisdictions where
         its ownership, lease or operation of property or the conduct of its
         business requires such qualification, except where the failure to do so
         would not have a material adverse effect to Purchaser.

         (b) Authorization. Purchaser has full power, capacity, and authority to
         enter into this Agreement and perform the obligations contemplated
         hereby. All action on the part of Purchaser necessary for the
         authorization, execution, delivery and performance of this Agreement by
         it has been taken and will be taken. This Agreement, when duly executed
         and delivered in accordance with its terms, will constitute legal,
         valid, and binding obligations of Purchaser enforceable against
         Purchaser in accordance with its terms, except as may be limited by
         bankruptcy, insolvency, and other similar laws affecting creditors'
         rights generally or by general equitable principles.

         (c) Consents. No permit, consent, approval or authorization of, or
         designation, declaration or filing with, any governmental authority or
         any other person or entity is required on the part of Purchaser in
         connection with the execution and delivery by Purchaser of this
         Agreement or the consummation and performance of the transactions
         contemplated hereby other than as may be required under the federal
         securities laws.

         (d) Disclosure. No representation or warranty of Purchaser contained in
         this Agreement contains any untrue statement or omits to state a
         material fact necessary in order to make the statements contained
         herein or therein, in light of the circumstances under which they were
         made, not misleading.

         (e) Brokerage Commission. No broker or finder has acted for the
         Purchaser in connection with this Agreement or the transactions
         contemplated hereby, and no person is entitled to any brokerage or
         finder's fee or compensation in respect thereof based in any way on
         agreements, arrangements or understandings made by or on behalf of
         Purchaser.

         7. Conditions to Closing. The obligations of the parties to effect the
transactions contemplated hereby are subject to the satisfaction at or prior to
the Closing of the following conditions:

         (a)      Conditions to Obligations of Purchaser.

                  1. Representations and Warranties of the Seller. The
                  representations and warranties of the Seller shall be true and
                  correct on the date hereof and on and as of the Closing Date,
                  as though made on and as of the Closing Date.

                  2. Third-Party Consents. Any and all consents or waivers
                  required from third parties relating to this Agreement or any
                  of the other transactions contemplated hereby shall have been
                  obtained.

                  3. Satisfactory Diligence. Purchaser shall have concluded its
                  due diligence investigation of the Company and its assets and
                  properties and all other matters related to the foregoing, and
                  shall be satisfied, in its absolute and sole discretion, with
                  the results thereof.

<PAGE>

                  4. No Actions or Proceedings. No claim, action, suit,
                  investigation or proceeding shall be pending or threatened
                  before any court or governmental agency which presents a
                  substantial risk of the restraint or prohibition of the
                  transactions contemplated by this Agreement.

                  5. Government Approvals. All authorizations, permits,
                  consents, orders, licenses or approvals of, or declarations or
                  filings with, or expiration of waiting periods imposed by, any
                  governmental entity necessary for the consummation of the
                  transactions contemplated by this Agreement shall have been
                  filed, occurred or been obtained.

         (b)      Conditions to Obligations of the Seller

                  1. Representations, Warranties and Agreements of Purchaser.
                  The representations and warranties of Purchaser shall be true
                  and correct on the date hereof and on and as of the Closing
                  Date, as though made on and as of the Closing Date.

                  2. Resolutions. Purchaser shall deliver resolutions of the
                  Board of Directors of Pangea, which authorize the execution,
                  delivery and performance of this Agreement and the documents
                  referred to herein to which it is or is to be a party dated as
                  of the Closing Date.

                  3. Third-Party Consents. Any and all consents or waivers
                  required from third parties relating to this Agreement or any
                  of the other transactions contemplated hereby shall have been
                  obtained.

                  4. No Actions or Proceedings. No claim, action, suit,
                  investigation or proceeding shall be pending or threatened
                  before any court or governmental agency which presents a
                  substantial risk of the restraint or prohibition of the
                  transactions contemplated by this Agreement.

                  5. Government Approvals. All authorizations, permits,
                  consents, orders or approvals of, or declarations or filings
                  with, or expiration of waiting periods imposed by, any
                  governmental entity necessary for the consummation of the
                  transactions contemplated by this Agreement shall have been
                  filed, occurred or been obtained.

         8. Indemnification.

         (a) Indemnification from Seller. Seller hereby agrees to and shall
         indemnify, defend (with legal counsel reasonably acceptable to Pangea),
         and hold Pangea, its officers, directors, employees, affiliates,
         assigns, agents and legal counsel (collectively, the "Pangea Group")
         harmless at all times after the date of this Agreement, from and
         against any and all actions, suits, claims, demands, debts,
         liabilities, obligations, losses, damages, costs, expenses, penalties
         or injury (including reasonable attorneys' fees and costs of any suit
         related thereto) suffered or incurred by any of the Pangea Group
         arising from: (a) any misrepresentation by, or breach of any covenant
         or warranty of the Seller contained in this Agreement, or any exhibit,
         certificate, or other instrument furnished or to be furnished by Seller
         hereunder; (b) any nonfulfillment of any agreement on the part of
         Seller under this Agreement; or (c) any suit, action, proceeding, claim
         or investigation against Pangea which arises from or which is based
         upon or pertaining to or related to the Projects or Seller's conduct
         relating to the Projects prior to the Closing Date.

<PAGE>

         (b) Indemnification from Pangea. Pangea agrees to and shall indemnify,
         defend (with legal counsel reasonably acceptable to the Seller) and
         hold Seller, his agents, affiliates, legal counsel, successors and
         assigns (collectively, the "Seller's Group") harmless at all times
         after the date of the Agreement from and against any and all actions,
         suits, claims, demands, debts, liabilities, obligations, losses,
         damages, costs, expenses, penalties or injury (including reasonably
         attorney's fees and costs of any suit related thereto) suffered or
         incurred by any of the Seller's Group, arising from (a) any
         misrepresentation by, or breach of any covenant or warranty of Pangea
         contained in this Agreement or any exhibit, certificate, or other
         agreement or instrument furnished or to be furnished by Pangea
         hereunder; (b) any nonfulfillment of any agreement on the part of
         Pangea under this Agreement; or (c) any suit, action, proceeding, claim
         or investigation against Sellers which arises from or which is based
         upon or pertaining to or related to the Projects or Pangea's conduct
         related to the Projects subsequent to the Closing Date.

         (c) Defense of Claims. If any lawsuit or enforcement action is filed
         against any party entitled to the benefit of indemnity hereunder,
         written notice thereof shall be given to the indemnifying party as
         promptly as practicable (and in any event not less than fifteen (15)
         days prior to any hearing date or other date by which action must be
         taken); provided that the failure of any indemnified party to give
         timely notice shall not affect rights to indemnification hereunder
         except to the extent that the indemnifying party demonstrates actual
         damage caused by such failure. After such notice, the indemnifying
         party shall be entitled, if it so elects, to take control of the
         defense and investigation of such lawsuit or action and to employ and
         engage attorneys of its own choice to handle and defend the same, at
         the indemnifying party's cost, risk and expense; and such indemnified
         party shall cooperate in all reasonable respects, at its cost, risk and
         expense, with the indemnifying party and such attorneys in the
         investigation, trial and defense of such lawsuit or action and any
         appeal arising therefrom; provided, however, that the indemnified party
         may, at its own cost, participate in such investigation, trial and
         defense of such lawsuit or action and any appeal arising therefrom. The
         indemnifying party shall not, without the prior written consent of the
         indemnified party, effect any settlement of any proceeding in respect
         of which any indemnified party is a party and indemnity has been sought
         hereunder unless such settlement of a claim, investigation, suit, or
         other proceeding only involves a remedy for the payment of money by the
         indemnifying party and includes an unconditional release of such
         indemnified party from all liability on claims that are the subject
         matter of such proceeding.

         (d) Default of Indemnification Obligation. If an entity or individual
         having an indemnification, defense and hold harmless obligation, as
         above provided, shall fail to assume such obligation, then the party or
         entities or both, as the case may be, to whom such indemnification,
         defense and hold harmless obligation is due shall have the right, but
         not the obligation, to assume and maintain such defense (including
         reasonable counsel fees and costs of any suit related thereto) and to
         make any settlement or pay any judgment or verdict as the individual or
         entities deem necessary or appropriate in such individuals or entities
         absolute sole discretion and to charge the cost of any such settlement,
         payment, expense and costs, including reasonable attorneys' fees, to
         the entity or individual that had the obligation to provide such
         indemnification, defense and hold harmless obligation and same shall
         constitute an additional obligation of the entity or of the individual
         or both, as the case may be.

<PAGE>

         (e) Right to Offset. In the event that the Pangea Group is entitled to
         indemnification in accordance with Section 8 hereof, then Pangea shall
         have the right to offset any such amount from any obligations that are
         then due and payable to the Seller.

         9. Related Transactions. Scully shall receive 5,000,000 shares of
Pangea restricted common stock (the "Introduction Fee") upon the closing of the
acquisition or drilling of additional prospects introduced to Pangea by Scully,
when the cumulative Pangea net monthly revenue from those prospects exceeds
$25,000. Pangea will issue to Scully up to three additional Introduction Fee
increments of 5,000,000 restricted shares for additional new prospects when the
Pangea net revenue (excluding the acquisitions included in this agreement, and
prior acquisitions counted towards an earlier $25,000 net income) also exceeds
$25,000 per month. This paragraph will be effective for any projects generating
the required net revenue within 24 months following execution of the agreement.

         10. Obligations to Survive Closing. All obligations of the parties
described herein shall survive the Closing, including without limitation, the
financial obligations, reporting obligations, insurance obligations and
indemnity obligations.

         11. Time of Essence, Attorneys Fees. Time is of the essence with
respect to this Agreement. If either party seeks to enforce, in law or in
equity, any provision contained herein, then the prevailing party in such
proceeding shall be entitled to reasonable attorneys' fees, interest and all
such other disbursements and relief provided under law.

         12. Payment of Expenses. Each party shall be responsible for its own
fees and expenses, including all legal and accounting fees in order to complete
the transactions contemplated hereby.

         13. Modification or Amendment. The parties hereto may modify or amend
this Agreement only by written agreement executed and delivered by the
respective parties.

         14. Binding on Heirs and Assigns. This Agreement shall inure to and be
binding upon the undersigned and their respective heirs, representatives,
successors and assigns.

         15. Counterparts/ Facsimile Signatures. For the convenience of the
parties hereto, this Agreement may be executed in any number of counterparts,
each such counterpart being deemed to be an original instrument, and all such
counterparts shall together constitute the same agreement. A facsimile signature
shall be deemed equivalent to and binding as an original signature except when
such original signature is required by law.

         16. No Waivers. No waiver of or failure to act upon any of the
provisions of this Agreement or any right or remedy arising under this Agreement
shall be deemed or shall constitute a waiver of any other provisions, rights or
remedies (whether similar or dissimilar) nor shall such waiver or failure to act
constitute a continuing waiver or evidence of a binding course of conduct unless
expressly provided herein or expressly stipulated to in writing by the parties.

<PAGE>

         17. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas, and shall be performable in
Harris County, Texas.

         18. Notices. Any notice, request, instruction or other document to be
given hereunder by any party to the others shall be in writing (by FAX, mail,
telegram or courier) and delivered to the parties as follows:

             To Seller:               Christopher Scully
                                      777 Post Oak Blvd., Suite 610
                                      Houston, Texas 77056

             To Purchaser:            Pangea Petroleum Corporation
                                      Attn: Mark Weller
                                      9801 Westheimer, Suite 302
                                      Houston, Texas 77042

             With a copy to:          Robert D. Axelrod, P.C.
                                      5300 Memorial Drive, Suite 700
                                      Houston, Texas 77007

Notices shall be deemed given on the date of actual receipt by the party.

         19. Entire Contract. This Agreement and the documents herein referenced
constitute (or when executed will constitute) the entire agreement between the
Parties, and shall supersede all other prior agreements and understandings, both
written and oral, between the Parties with respect to the subject matter hereof.

         20. Captions for Convenience. All captions herein are for convenience
or reference only and do not constitute part of this Agreement and shall not be
deemed to limit or otherwise affect any of the provisions hereof.

         21. Severability. In case any one or more of the provisions contained
in this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or enforceability
shall not affect any other provision hereof, and this Agreement shall be
construed as if such invalid, illegal or enforceable provision had never been
contained herein.

         EXECUTED by the undersigned as of the Effective Date set forth above.

                                  "SELLER"

                                  By:
                                     -----------------------------------
                                             Christopher Scully

<PAGE>

                                  "PURCHASER"

                                  PANGEA PETROLEUM CORPORATION,
                                  a Colorado corporation

                                  By:
                                     -----------------------------------
                                  Name:
                                       ---------------------------------
                                  Title:
                                        --------------------------------

<PAGE>

                                   EXHIBIT "A"

BLUE RIDGE FIELD LEASE INCLUDING APPROXIMATELY 421 ACRES AS DESCRIBED BELOW:

Sawtooth Lease - 132.7268 acres

50.00 acres, 50 acres, 22.7268 acres and 10 acres, more or less, Thomas
Hobermaker Survey, A-191, Fort Bend County, Texas, and being those tracts more
particularly described in Amendment to Oil, Gas and Mineral Lease dated November
30, 2004 between Teletower Partnership and Chain Oil & Gas, Inc., Sawtooth, Inc.
and TK Petrosearch Corporation, recorded under #2004154612 of the Official
Public Records, Fort Bend Coutny, Texas; and described as follows therein:

1. "That certain tract of land described in the expired oil and gas lease known
as the "Schenck, West Lease" dated August 21, 1926 from Mrs. Bessie M. West and
R. F. Schenck as Lessors to Humphreys Corporation as Lessee covering 25 acres of
land, more or less, in the Thomas Habermacher Survey, A-191, Fort Bend County,
Texas, and recorded at Volume 114, Page 60 of the Fort Bend County, Texas Deed
Records, INSOFAR AND ONLY INSOFAR as said lease covered and included the North
10 acres of the 25 acre tract of land covered by and described in said lease,
the South boundary line of said 10 acre tract described herein being parallel to
the North line of said 25 acre tract and a sufficient distance South thereof so
as to cover and include exactly 10 acres of land."

2. "That certain tract of land described in the expired oil and gas lease known
as the "West-Schenck Lease" dated June 21, 1947 from Mrs. Bessie M. West,
individually, and Robert F. Schenck as Executor of and Trustee under the Last
Will and Testament of Clarn T. Schenck, Deceased, as Lessors, to W. K. Layne, as
Lessee, covering 42 acres of land, more or less, in the Thomas Habermacher
Survey, A-191, Fort Bend County, Texas and recorded at Volume 249, Page 13 of
the Fort Bend County Deed Records, INSORFAR AND ONLY INSOFAR as said lease
covered and included the Enst 22.7268 acres of the 42 acre tract of land covered
by and included in said lease, said 22.7268 acre tract being more fully
described by metes and bounds description found at Volume 2203, Page 192 of the
Fort Bend County Deed Records, which such description is incorporated herein by
reference for all purposes."

Zivicy Trustee Lease - 65.572 acres

<PAGE>

Memorandum of Oil, Gas and Mineral Lease, being 65.572 acres of land, more or
less, out of the Thomas Hobermaker Survey, A-191, Fort Bend Coutny, Texas, from
Walter P. Zivley, Trustee to TK Petrosearch, L.L.C. Corporation, dated December
2, 2004 and recorded under #2004147869 of the Official Public Records, Fort Bend
County, Texas. 65.572 acres of land, more or less, situated in the Thomas
Hobermaker Survey, Abstract No. 191, Fort Bend County, Texas, said 65.572 acres
of land being more particularly described as "Third Property" in that certain
Deed, dated April 12, 1990, from Charles Sapp, Trustee to Walter P. Zivley,
Trustee, as recorded in Volume 2206, Page 1266 of the Official Records of Fort
Bend County, Texas.

Santa Rosa Lease - 55 acres

Oil, Gas and Mineral Lease, being 55.0 acres of land, more or less, out of the
Thomas Hobermaker Survey, A-191, Fort Bend County, Texas, from Lindenwood
Royalty Company, Marilyn C. Erwin, Santa Rosa Resources, Inc., T. Kelley Erwin
and Viking Royalty Group to TK Petrosearch, L.L.C. Corporation, dated August 16,
2004 and recorded under #2004151310 of the Official Public Records, Fort Bend
County, Texas.

55.0 acres of land, more or less, described as a 50 acre tract and a 5 acre
tract situated in the Thomas Hobermaker Survey, A-191, Fort Bend County, Texas,
and being the same land more fully described in that certain Quitclaim Mineral
Deed, dated August 5, 1997, from Chevron U.S.A., Inc. to Santa Rosa Resources,
Inc. as recorded in File No. 9778656, Official Records of Fort Bend County,
Texas.

Wallin Lease - 167.903 acres

Memorandum of Oil, Gas and Mineral Lease, being 167.903 acres of land, more or
less, out of the Thomas Hobermaker Survey, A-191, Fort Bend County, Texas, from
Walter P. Zivley, Trustee to TK Petrosearch, L.L.C. Corporation, dated December
16, 2004 and recorded under #2005007991 of the Official Public Records, Fort
Bend County, Texas.

167.903 acres, more or less, a part of the Thomas Hobermaker Survey, A-191, Fort
Bend County, Texas, and being more particularly described in the following two
(2) tracts of land, to wit:

TRACT NO. 1: (117.903 Acres)

<PAGE>

117.903 acres, more or less, being a part of the Thomas Hobermaker Survey,
A-191, Fort Bend County, Texas, and being all of that certain 244.413 acre tract
more particularly described in the certain Warranty Deed dated December 15, 1972
from John B. Scott, et al, to Dempsey J. Prappas, Trustee, recorded in Volume
582, Page 420 Deed Records of Fort Bend County, Texas; LESS AND EXCEPT 32 acres,
more or less, and being that portion of a 65.572 acre tract lying within the
said 244.413 acre tract; Said 65.572 acre tract being more particularly
described in Deed dated April 12, 1990 from Charles Sapp, Trustee, to Walter P.
Zivley, Trustee, recorded in Volume 2206, Page 1266, Deed Records of Fort Bend
County, Texas; and LESS AND EXCEPT the most Northern 94.51 acres, more less,
being all of that certain 100 acre tract more particularly described in that
certain Mineral Deed dated May 22, 1920, from Mrs. Laura Wallin Luscher and
husband, Bernard R. Luscher, to Gulf Production Company, recorded in Volume 85,
Page 385, Deed Records of Fort Bend County, Texas, less and excepting that
certain 5.49 acre tract more particularly described in that certain Deed dated
August 25, 1967, from Mary Lucille Wallin, et al, to Houston Lighting & Power
Company, recorded in Volume 496, Page 537, Deed Records of Fort Bend County,
Texas.

TRACT NO. 2: (50.00 Acres)

50.00 acres, more or less, being a part of the Thomas Hobermaker Survey, A-191,
Fort Bend Coutny, Texas, and being all that certain 100 acre tract more
particularly described in that certain Mineral Deed dated May 22, 1920, from
Mrs. Laura Wallin Luscher and husband, Bernard R. Luscher, to Gulf Production
Company, recorded in Volume 85, Page 385, Deed Records of Fort Bend County,
Texas; LESS AND EXCEPT the most Northern 50 acres of the 100 acres described
above, and being that same "Northern" 50 acres described by metes and bounds and
conveyed to Gulf Oil Corporation in that certain Partition deed dated August 12,
1938, between Mrs. Laura Wallin Luscher, et al, recorded in Volume 176, Page
510, Deed Records of Fort Bend County, Texas.

<PAGE>

                                   EXHIBIT "B"

NEW YORK LEASE:

         Approx 50,000 acres in Stueben County; Townships of Bath, Canisteo,
         Cameron, Hornellsville, Howard and Jasper. Detailed information will be
         provided within thirty (30) days from the effective date of this
         Agreement.LICENSE AGREEMENT

                                     FOR THE

                        LICENSE OF INTELLECTUAL PROPERTY

      THIS AGREEMENT FOR THE LICENSE OF INTELLECTUAL PROPERTY, dated as
appearing on the Signature Page of this Agreement, by and between

The Parties and Effective Date:

      1.1 Addison Davis Diagnostics, Inc., a corporation formed under the laws
of the State of Delaware (hereinafter referred to as the "Licensor"), and

            Montecito Bio Sciences, Ltd, a corporation formed under the laws of
the State of Nevada (hereinafter referred to as the "Licensee").

            Sometimes Addison Davis Diagnostics, Inc. and Monte Bio Sciences,
Ltd are referred to herein as a "party" and/or collectively as the "Parties."

      1.2 Effectiveness. This Agreement shall become binding upon the execution
by all of the Parties ("Effective Date"), whether in counterpart or upon single
instrument, and shall become fully effective immediately thereupon subject only
to the terms and conditions set forth herein.

2.    Recitals

      2.1 Licensor is now the sole and exclusive owner of that certain invention
concerning a Drug Test Cup the invention described and claimed the letters
patent and applications, and the invention being described and claimed and
identified by an application for United States Letters Patent filed, Serial
Number 09752712.

      2.2 Licensor is now the sole and exclusive owner of those certain
approvals issued by the Federal Drug Administration ("the FDA") for said Drug
Test under the Trade Name and Device name "Drug Stop" FDA No. K991465 Regulatory
Class II approval for over-the-counter OTC as well as any and all 510(K) issued
in connection thereto.

      2.3 Licensor is the present owner of all right title and interest in that
certain Trade name "Drug Stop".

      2.4 Licensee as a marketing company has the capability to Brand Develop,
Manage and provides sales Strategy for all aspects of a full marketing program
to sell and distribute said Drug Test under the Trade Name and Device name "Drug
Stop" FDA No. K991465 Regulatory Class II approval, for over-the-counter (OTC)
as well as any and all 510(K) issued in connection thereto of Licensor's
Intellectual Properties as described above.

                                       1
<PAGE>

      2.5 Licensee desires to obtain the exclusive rights from Licensor to sell
and distribute Worldwide the Drug Test and Device utilizing the FDA No.991465
Regulatory Class II approval, for over-the-counter (OTC) (the "Products") under
its own brand name or names, Licensor agrees that Licensee shall have the right
to manufacture the Products as hereinafter defined.

      2.6 It is the intent of the Licensee to file with the FDA for approval to
market and sell the OTC Products under its own Brand Name or Names. Licensor
herein agrees to assist, provide documentation, and join in any and all
applications for approval required by the FDA.

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements contained herein, and intending to be legally bound, Licensor and
Licensee hereby agree as follows:

                                    ARTICLE 2

      2.1 Granting of License.

      Subject to the terms and conditions of this Agreement, Licensor hereby
grants Licensee a right to manufacture, utilize, sell, or resell the Drug Test
and Device utilizing the FDA No.991465 Regulatory Class II approval, for
over-the-counter (OTC) (the "Products") under Licensee's own Trade Names, Brand
Names and Trademark Worldwide.

      2.2 Term

      This Licensee Agreement ("Agreement") shall commence on the date of
acceptance of the Agreement by Licensor and shall remain in full force and
effect for a period of five (5) years and shall automatically be extended for an
additional five (5) year period so long as neither party causes a termination of
this Agreement pursuant to the terms hereof. This Agreement shall become
effective upon execution by the officers of the Parties.

      2.3 Use of Trademark

      Licensor hereby grants Licensee the right to use and display Licensor's
trademarks, service marks, and trademarks and trade names that are applicable to
Licensor Product(s) under this License Agreement. Licensee will not use any of
Licensor's Marks as part of its corporate, trade or other business name.

                                       2
<PAGE>

      3. Consideration for License - Percentage of Gross Sales

      (a) Consideration. As consideration for this License, Licensee agrees to
make payments as follows:

      Throughout the entire term of this Agreement, Licensee shall pay to
Licensor a royalty of Seven and one/half (7.5%) percent of the gross sales as a
Royalty for each Drug Stop and Parents Tool drug test ("Test(s)"). For the
purpose of this Agreement "Royalty" or "Royalties" shall mean amounts payable to
Licensor equal to seven and one/half (7.5%) percent from Gross Revenues derived
from sales of the Drug Stop product sold over-the-counter "OTC" in stores,
calling centers, internet or other means, during the Term. For purposes of this
Agreement, "Gross Revenues" shall mean all gross revenues actually received by
Company or its assigns from sales of the Product made nationally and
internationally, reduced by returns, refunds, bad debts, charge-back's, declines
and similar deductions and credit card processing fees, and excluding costs or
revenues associated with sales, excise, use or any other taxes and shipping and
handling fees. Royalty statements and royalty payments due, if any, shall be
submitted on a calendar quarterly basis on or before the twenty-second (22nd)
day of the month following the end of each quarter reflecting all Gross Revenues
for the subject period. All Royalties are to be paid quarterly commencing with
the first quarter in which Royalties become due.

      (b) Examination of Licensee's Financial Records By Licensor.

      Licensor or its experts or agents, shall have the right, at Licensor's
sole cost and expense, at any time during normal business hours, upon giving
Licensee Thirty (30) days written advanced notice, to inspect the accounting
books and records of Licensee to verify the actual gross sales of Licensee as
defined above. Notwithstanding the foregoing sentence, in the event that
Licensor determines, in good faith, that there is a variance of greater than ten
percent (10%) between the actual gross sales and the cost reported by Licensee.
Licensee shall pay Licensor's entire costs of audit and shall immediately pay
the difference to Licensor. Licensor shall notify Licensee within five (5)
business days of the conclusion of any audit or examination of the results of
such audit or examination.

                                    ARTICLE 5
                 REPRESENTATIONS AND WARRANTIES OF THE LICENSOR

      To induce the Licensee to acquire the License rights, the Licensor hereby
makes the following representations and warranties:

      5.1 Organization. Standing and Qualifications . The Licensor is a
corporation, duly organized, validly existing and in good standing under the
laws of the State of Delaware. The Licensor has full corporate power and
authority to carry on its business as it is now being conducted and to own the
property and assets it now owns.

                                       3
<PAGE>

      5.2 Authorization . The Licensor has full corporate power and authority to
execute and deliver this Agreement to consummate the transactions contemplated
hereby. The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized
by all necessary corporate action required by law, the Licensor's Articles of
Incorporation or otherwise to be taken by the Licensor to authorize the
execution and delivery of this Agreement and the agreements specified herein or
the consummation of the transactions contemplated hereby and thereby.

      5.3 Binding Agreements. This Agreement constitutes the legal, valid and
binding obligations of the Licensor, enforceable in accordance with its terms.

      5.4 No Violation. Neither the execution and delivery by the Licensor of
this Agreement nor the consummation by the Licensor of the transactions
contemplated hereby will (a) violate any provision of the Articles of
Incorporation of the Licensor; (b) conflict with or violate any statute, law,
regulation, rule, order, judgment or decree of any court or Governmental
Authority binding upon or applicable to the Licensor. The Licensor is not a
party to, nor is it bound by, and the Licensor Product Line are not subject to,
any agreement or commitment that prohibits the execution and delivery by the
Licensor of this Agreement or the consummation of the transactions contemplated
hereby.

      5.5 Litigation. No action, suit, inquiry, audit, or to the Best Knowledge
of the Licensor no proceeding or investigation, by or before any court or
governmental or other regulatory or administrative agency or commission is
currently pending or, to the Best Knowledge of the Licensor threatened, against,
involving or arising in connection with the Licensor's Product Line or that
questions or challenges the validity of this Agreement or any action taken or to
be taken by the Licensor pursuant to this Agreement.

      5.6 Right to License Licensor's Product Line. Licensor has the right to
license the intellectual property as described herein and has the right to grant
a license to Licensee to manufacture Products utilizing said intellectual
property rights and patents.

      5.7 Intellectual Property Rights.

            To the Best Knowledge of the Licensor, the License rights and the
use thereof will not infringe upon or violate any Patent and Intellectual
Property Right of any Third Person.

                                    ARTICLE 6

                 REPRESENTATIONS AND WARRANTIES OF THE LICENSEE

To induce the Licensor to enter into this License Agreement with the Licensee,
the Licensee hereby represents and warrants to the Licensor as follows:

      6.1 Corporate Organization and Good Standing. The Licensee is a Company,
duly organized, validly existing and in good standing under the laws of the
State of Nevada.

                                       4
<PAGE>

      6.2 Authorization. The Licensee has full corporate power and authority to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated hereby and thereby have
been duly authorized by all necessary corporate action required by law, the
Licensee's Articles of Incorporation, or otherwise to be taken by the Licensee
to authorize the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby.

      6.3 Binding Agreements. This Agreement constitutes the legal, valid and
binding agreements of the Licensee enforceable in accordance with its terms.

      6.4 No Violation. Neither the execution and delivery by the Licensee of
this Agreement nor the consummation by the Licensee of the transactions
contemplated hereby, will (a) violate any provisions of the Articles of
Incorporation of the Licensee; (b) conflict with or violate any statute, law,
regulation, rule, order, judgment or decree of any court or Governmental
Authority binding upon or applicable to the Licensee or by which the property or
assets of the Licensee are bound or affected.

      6.5 Litigation. No action, suit, inquiry, audit, or to the Best Knowledge
of the Licensee no proceeding or investigation, by or before any court or
governmental or other regulatory or administrative agency or commission is
currently pending or, to the Best Knowledge of the Licensee threatened, against,
involving or arising in connection with the Licensee entering into this
Agreement or that questions or challenges the validity of this Agreement or any
action taken or to be taken by the Licensee pursuant to this Agreement.

                                    ARTICLE 7

                            COVENANTS OF THE PARTIES

      7.1 Cooperation. Each party shall cooperate reasonably with the other in
preparing and filing all notices, applications, reports and other instruments
and documents which are required by any statute, rule, regulation or order of
any Governmental Authority in connection with the transactions contemplated by
this Agreement, including the Private Label of the licensed Product with the
FDA.

      7.2 Maintaining the Quality of the Products. In order to maintain the high
quality of the Products that has come to be associated with them as a result of
the expenditure of considerable sums of money and substantial effort over a
significant period of time, the Licensor and the Licensee agree as follows:

                                       5
<PAGE>

            (a) Licensee shall manufacture Products which are licensed under or
in connection with Licensor's Product only in accordance with (i) the Know-How
and any Enhancements thereto that are mutually agreed upon by the Licensor and
the Licensee and (ii) such other manufacturing quality standards as may be
agreed upon by the Licensor and the Licensor.

            (b) At the request of a party hereto, the other party shall meet
with the requesting party during normal business hours, but in any event no more
than once in each calendar month, in order to discuss the quality of the
Products being manufactured, licensed by Licensee and the quality or the value
of the Products so produced by Licensee which respect to the marketing,
promotion, distribution, license, sale and use of the Products, including in
order to discuss (i) whether the Know-How and the manufacturing quality
standards then in effect for the manufacture of the Products are adequate to
ensure the continued maintenance of the quality of the Products manufactured by
the Licensee or its respective Licensees; (ii) the use of any Enhancement to the
Know-How in order to improve or maintain the quality of the Products; (iii) any
changes to the manufacturing quality standards for the Products; or (iv) actions
to be taken to maintain or improve the quality of the Products or Designs.

            (d) Licensee agrees not to use or exploit Licensor's Product Line in
a manner that can be reasonably foreseen to bring it into disrepute or
materially diminish the value of exploiting such Product Line in connection with
the marketing, promotion, distribution, sale, licensing or use of the Products.

                                    ARTICLE 8

                            CONFIDENTIAL INFORMATION

      8.1 Confidentiality of Intellectual Property of Licensor and Customer
Proprietary Marketing Data of Licensee

      It is expressly understood and agreed that all intellectual property and
data furnished to Licensee by Licensor or any information or data regarding
customers or data provided by Licensee to Licensor and such data as may be
provided by one to the other regarding and including that required for the
proper marketing, sale or re-sale of its products, all of which constitutes a
valuable intellectual proprietary property and trade secret(s) of Licensor or
Licensee, as the respective party providing such data has divulged. Providing
such material, under any circumstances, shall not constitute a grant of any
ownership in any manner whatsoever. Both Licensee and Licensor agree that:

      (a) To observe complete confidentiality with regard to all aspects of such
data including, without limitation, agreeing not to disclose or otherwise permit
any other person or entity access to, in any manner, any such data in any form
whatsoever. Such disclosure or access shall only be permitted to an employee of
Licensor or Licensee as the case might be of the Marketing Plans, Business
Relationships, and any other proprietary business or client information as
permitted and on the terms and conditions defined in this License Agreement;

                                       6
<PAGE>

      (b) To ensure that both Licensor and Licensee and their respective
employees, agents, representatives, independent contractors, customers, sub
contractors or sub Licensee's and business invitee's and guests are advised of
the confidential nature of such data and to insure by agreement or otherwise
that they are prohibited from copying or revealing, for any purpose whatsoever,
the contents of the data;

      (c) Licensee shall not alter or remove any copyright or proprietary rights
notice of identification, which indicates Licensor's ownership of the Patent.
Licensor shall not alter or remove any proprietary rights, notice of
identification, which indicates Licensee's confidential data, including customer
data:

      (d) Each respective party agrees to notify the other promptly and in
writing of the circumstances surrounding any possession, use or knowledge of any
such data of which either Licensor or Licensee has knowledge by any person or
entity other than those authorized;

      (e) Each respective party agrees to take any and all actions reasonably
necessary or desirable to ensure continued confidentiality and protection of all
such data and to prevent access to such data by any person or entity not
authorized by this section.

      Should this Agreement terminate for any reason (including without
limitation, breach by Licensee of any of its obligations hereunder), the
confidentiality provisions of this Agreement shall survive the termination of
this Agreement and shall continue to be binding upon both Licensor and Licensee.

                                    ARTICLE 9

                       PROTECTION OF THE LICENSOR'S RIGHTS

      9.1 Notice of Infringement or Unauthorized Use. Licensee shall promptly
inform Licensor in writing of any act of infringement, unauthorized use, piracy
or misappropriation of, or breach of any confidentiality agreement pertaining
to, or in any way affecting, the Licensed Property, or any Enhancements thereto,
that are discovered by Licensee or are otherwise brought to its attention. Each
party shall promptly inform the other party in writing of any notice of claim or
action, or any threatened claim or action, against either party by any third
Person arising out of in any way related to the Licensed Product.

      9.2 Institution. Prosecution and Defense of Claims.

            (a) (i) Promptly following the delivery to the Licensor of notice
from the Licensee of any act of any infringement, unauthorized use, piracy or
misappropriation of, or breach of any confidentiality agreement or affecting the
Licensed Property, or, in the case where such infringement, unauthorized use,
piracy misappropriation or breach is discovered by the Licensee or is otherwise
brought to its attention and the Licensee provides to the Licensor written
notice thereof, then promptly following the delivery of such notice to the
Licensor, the Licensor shall take such steps as shall be necessary in order to
protect the Licensee and the Licensor's rights with respect to the said Licensed
Property, respectively, including, but not limited to, instituting or
authorizing others to institute any claim, suit or proceeding at law or in
equity arising out of or related to the infringement, unauthorized use, piracy
or misappropriation of, or breach of any confidentiality agreement pertaining
to, or in any way affecting the Licensed Property.

                                       7
<PAGE>

            (ii) The institution, prosecution, maintenance and control of any
claim, suit or proceeding at law or in equity arising out of or related to, or
in any way affecting the Licensed Property shall be subject to the direction and
control of the Licensor, at its sole cost and expense, and any and all sums that
may be received, obtained, collected or recovered in any such claim, suit or
proceeding, whether by decree, judgment, settlement or otherwise, shall be the
sole and exclusive property of the Licensor.

      (b) If requested by Licensor, Licensee shall join the Licensor as, a party
complainant in any such claim, suit or proceeding.

      (c) Licensor shall defend, at its own expense any claim that a Third-Party
shall institute effecting the Licensed Product granted to the Licensee herein.
Licensee shall cooperate fully in the defense of any such claim, suit or
proceeding against any party by a third Person, brought in connection with,
arising out of or related to the Licensed Property, and each party shall execute
such documents and take such actions as may be reasonably requested by the other
party and consistent with the rights and obligations of the parties hereunder.

      (d) Licensor shall indemnify Licensee for any costs, damages, or other
expenses suffered by Licensee in connection with any Third-Party claiming that
said Third-Party is the owner or has rights to the Licensed Product licensed to
Licensee.

      (e) Licensee, in its sole discretion, and with the consent of Licensor,
undertake to institute and prosecute any claim, suit or proceeding at law or in
equity arising out of or related to, or in any way affecting the Licensed
Property in which case it shall be subject to the direction and control of the
Licensee, at its sole cost and expense, and any and all sums that may be
received, obtained, collected or recovered in any such claim, suit or
proceeding, whether by decree, judgment, settlement or otherwise, shall be the
sole and exclusive property of the Licensee. If requested by Licensee, Licensor
shall join the Licensee as, a party complainant in any such claim, suit or
proceeding

                                       8
<PAGE>

                                   ARTICLE 10

                                 INDEMNIFICATION

      10.1 Survival of Representations and Warranties and Covenants. Except as
otherwise expressly provided herein, all representations and warranties made by
any party in this Agreement shall survive from and after the date hereof and
shall continue in effect for a period of two (2) years from the date hereof, and
all covenants made by any party in this Agreement shall survive indefinitely
unless otherwise terminated by the parties. Any right of indemnification
pursuant to this Article 13 in respect of a claimed breach of any
representation, warranty or covenant shall expire at the date of expiration of
the representation, warranty or covenant claimed to be breached (the "Expiration
Date"), unless on or prior to the Expiration Date a Claim has been made against
the party from whom indemnification is sought. If a Claim is timely made, it may
continue to be asserted beyond the Expiration Date of the representation,
warranty or covenant to which such Claim relates.

      11.2 Indemnification.

            (a) The Licensor hereby agrees to indemnify and hold harmless
Licensee from and against all Damages asserted against, imposed upon or incurred
by Licensee, directly or indirectly, by reason of or resulting from, any breach
or inaccuracy of any representation, warranty or covenant of the Licensor set
forth in this Agreement.

            (b) The Licensee hereby agrees to indemnify and hold harmless
Licensor from and against all Damages asserted against, imposed upon or incurred
by Licensor, directly or indirectly, by reason of or resulting from any breach
or inaccuracy of any representation, warranty or covenant of the Licensee set
forth in this Agreement.

      11.3 Limitation of Indemnification. Licensor herein shall be obligated to
indemnify Licensee for only such Third-Party Claims that are established by a
court judgment or order against Licensee involving and limited to the
Proprietary Patent(s) or any Enhancements thereto. The obligations and
liabilities of Licensor to indemnify Licensee shall be subject to the following
terms and conditions:

            (a) Licensor shall indemnify and save Licensee harmless from all
liability for actual infringement of any Third-Party Patent(s) claimed by said
Third-Party to be the Patent(s) used and developed by Licensor. And, Licensor
shall indemnify and save Licensee harmless from and against all costs, counsel
fees, expenses and liabilities incurred in or about any claim of or action for
such infringement; provided however, that Licensee shall promptly notify
Licensor, in writing of said Third-Party Claim and transmit to Licensor all
papers served on Licensee in any suit involving such claim of infringement, and
provided further, that Licensee permits Licensor to have entire charge and
control of the defense of any such suit.

            (b) Licensee shall provide Licensor with all records and documents
within the Licensee's possession, custody, or control relating to any
Third-Party Claim. Nothing in this provision shall be deemed to constitute a
waiver of any attorney-client, work-product or joint defense privilege.

                                       9
<PAGE>

            (c) Licensor's indemnity obligation set forth in this Section shall
survive the termination or expiration of this Agreement with respect to the
Third-Party's Claim of rights to the Proprietary Patent(s) of Licensor which
occurs during the Term.

                                   ARTICLE 11

                                   TERMINATION

      11.1 Termination of this Agreement

      If either party breaches a material provision of this Agreement and fails
to cure such violation within thirty (30) days after written notice of said
breach has been mailed by the other party, this Agreement shall terminate. Upon
termination, the terms and conditions herein will continue to apply to Licensor
Products owned by Licensee. If any outstanding debts are owing to either party
by the other, these amounts shall become due and payable immediately.

      A. Licensee's Default. If any of the following events occur, Licensee
shall be in default and Licensor shall have the right to immediately terminate
this Agreement upon written notice to Licensee.

      If Licensee ceases to function as a going concern, or becomes insolvent,
makes an assignment for the benefit of creditors, files a petition in
bankruptcy, permits a petition in bankruptcy to be filed against it, or admits
in writing its inability to pay its debts as they mature or if a receiver is
appointed for a substantial part of its assets;

      Licensee ceases to carry on the business of a Licensee of Licensor's
Products;

      Licensee's failure to pay, after thirty (30) days written notice from
Licensor to Licensee for the Royalty payments due pursuant to this Agreement.

      B. Licensor's Default. If any of the following events occur, Licensor
shall be in default and Licensee, at its option, shall have the right to
terminate this Agreement upon thirty (30) days written notice to Licensor.

      Licensor ceases to function as a going concern, or becomes insolvent,
makes an assignment for the benefit of creditors, files a petition in
bankruptcy, permits a petition in bankruptcy to be filed against it, or admits
in writing its inability to pay its debts as they mature or if a receiver is
appointed for a substantial part of its assets;

                                       10
<PAGE>

      All or substantially all of Licensor's assets or capital stock are
transferred to a third party, or a change of control or management of Licensor
occurs which is unacceptable to Licensee (notwithstanding the foregoing,
Licensee shall not unreasonably find such change to be unacceptable)

Licensor transfers or attempts to transfer any right or obligation hereunder
without Licensee's prior written consent; or

Licensor has not met its obligations for product performance or delivery;

                                   ARTICLE 12

               OPTION TO PURCHASE PATENTS AND INTELECTUAL PROPERTY

      12.1 Option.

      Licensor herein grants to Licensee the right to purchase all the assets of
Licensor, including but not limited to all patent rights, approved platform
products FDA 510K numbers and all intellectual property rights as hereinafter
set forth.

      Licensee shall have the right to purchase the Assets, Technology,
equipment, Know-How and all patents and patent rights connected with the
ownership of the Product Licensed (the "Assets") as the case may be, at any time
during the Term of this Agreement. The Licensee shall have the exclusive right
to purchase said Assets.

      Exercise of Right of Option. Said right shall be exercisable by delivering
written notice thereof to Licensor.

      Determination of Sales Price for Assets. At such time as Licensee
exercises its right to the Option, set forth above, Licensee shall select an
independent appraisal firm specializing in intellectual property and patent
rights to submit an appraisal setting forth the value of said Assets, at the
time said option right is exercised. Upon the receipt of said appraisal Licensee
shall deliver a copy to Licensor. The amount stated in said appraisal shall be
the sole basis that the Parties shall use to determine the fair market value of
said Assets.

      Manner of Payment

      Licensee shall have 90 days to pay to Licensor the sum set forth in the
appraisal as the fair market value for the assets.

                                       11
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                                   ARTICLE 13

                            MISCELLANEOUS PROVISIONS

      13.1 Notices

            (a) All notices, request, demands and other communications which are
required or may be given pursuant to the terms of this Agreement shall be in
writing and shall be deemed delivered (i) on the date of delivery when delivered
by hand; (ii) on the date of transmission when sent by facsimile transmission
during normal business hours with telephone confirmation of receipt; (iii) on
the next business day after transmission when sent by facsimile transmission
after normal business hours; (iv) two (2) days after dispatch when sent by a
reputable courier service that maintains records of receipt or (v) five (5) days
after dispatch when sent by registered mail, postage prepaid, return-receipt
requested; provided that, in any such case, such communication is addressed
provided in the immediately following paragraph (b).

            (b) All notices, request, demands and other communications, which
are required or may be given pursuant to this Agreement shall be addressed as
follows:

                 (i) If to Licensor.

                     Addison-Davis Diagnostics, Inc.
                     143 Triunfo Canyon Road
                     Westlake Village, CA 91361

                (ii) If to Licensee.

                     Montecito Bio Services, Ltd.
                     30 Paloma Avenue
                     Venice, CA 90291

Or to such other address as any party shall have designated by notice in the
foregoing manner to the other parties.

      13.2 Compliance with Laws. In connection with the License granted herein
and the consummation of the transactions contemplated hereby and the performance
by a party of its obligations hereunder, each of the Licensor and the Licensee
shall comply with all applicable laws, requirements, rules, regulations and
standards of Governmental Authorities of any pertinent jurisdiction so that
neither of the parties shall be subject to any fines or penalties; or violate
any laws or regulations affecting the lease, license and sale of the Products
contemplated herein.

      13.3 Authority to Contract and Perform. Both Licensor and Licensee
represents that they each respectively have full right and authority to enter
into this Agreement and to perform its obligations and that it has not made and
will not make any contract or commitment contrary to the terms of this
Agreement.

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      14.4 Ethics and Compliance with Law. Both Licensor and Licensee covenant
each with the other, that they will maintain the highest ethical business
standards and avoid and refrain from being involved in any activities which may
in any manner disparage the Licensor's or Licensee's Products. Furthermore in
the conduct of its business, both Licensor and Licensee will comply with all
applicable Federal, State and local laws, rules and regulations.

      14.5 Choice of Law. The validity, construction and performance of the
Agreement shall be interpreted, construed and enforces according to the laws of
the State of California.

      14.6 Entire Agreement. This Agreement (together with the Schedules and the
Exhibits expressly identified in this Agreement) constitutes the entire
agreement of the parties with respect to the subject matter hereof and thereof,
and supersedes all prior agreements and understandings of the parties, oral and
written, in respect of such subject matter.

      14.7 Binding Effect. This Agreement binds and insures the benefit of the
parties hereto, their respective heirs, representatives, successors or assigns.

      14.8 Paragraph Headings. The paragraph headings in this Agreement are for
convenience only, and they have no substantive or interpretive effect.

      14.9 Waiver. Neither modification of this Agreement nor any waiver of any
term or condition hereof shall be effective unless it is in writing and signed
by the parties hereto. If either party fails to meet the requirements of any
term of this Agreement or waives any breach hereunder, that failure or waiver
will neither prevent a subsequent enforcement of such term nor be deemed a
waiver of any subsequent breach.

      14.10 Partial Invalidity. In the event of the determination that any
terms, covenant or condition of this Agreement is of no force or effect, the
remaining terms, conditions or covenants contained herein shall not be affected
thereby, and the obligations of the parties hereto with respect to the
performance of the remaining terms, covenants and conditions shall continue in
full force and effect.

      14.11 Assignment. Licensor acknowledges that Licensee may in the future
merge or joint venture with other companies as such Licensor grants to Licensee
the right to assign and/or transfer all or part of this license agreement as the
case may be without written consent of Licensor.

      14.12 Indemnity. Licensor and Licensee agree to each hold the other free
and harmless from any and all claims, damages and expenses of any kind or nature
whatsoever: (1) arising from acts of the other; or (2) as a direct or indirect
consequence of termination of this Agreement in accordance with its terms.
Licensor agrees to hold Licensee free and harmless from any and all claims,
damages, and expenses of any kind or nature including attorneys fees and costs
arising out of any claim of patent or other infringements by a third party as it
relates to the use by Licensee of product(s) by Licensor. Further, Licensee is
relying on the representations of Licensor that it has the approval from the FDA
for over-the-counter sales to the general public. In that regard, Licensor
agrees to hold Licensee free and harmless from any and all claims, damages, and
expenses of any kind or nature including attorney fees and cost arising out of
any claim from the FDA or any other governmental agency regarding the sale of
the product to the public. This indemnification shall be void and of no force or
effect if Licensee fails to obey or comply with any reasonable instruction or
limitation imposed by Licensor or the FDA. This section shall inure to the
benefit of anyone who buys product(s) from Licensee.

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      14.13 Insurance. Licensor agrees to carry adequate product liability
insurance for the benefit and protection of Licensee and/or Licensee's customers
against any and all product liability claims. Licensor shall name Licensee as a
named insured. Further, Licensee agrees to carry adequate product liability
insurance for the benefit and protection of Licensee and/or Licensee's customers
against any and all product liability claims. Licensee shall name Licensor as a
named insured. Both Licensor and Licensee shall provide each other with
certificates showing them as named insures.

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

      14.15 Relationship of the Parties. Licensee is an independent contractor
and private labeler. Nothing in this Agreement will be deemed or construed to
create an agency, partnership, joint venture or employment relationship between
Licensor and Licensee. Licensee will, under no circumstances, represent itself
directly or by implication, as Licensor's agent or employee, nor will Licensee
purport or attempt to bind Licensor to any liability or obligation whatsoever.
Nothing contained herein will impose any liability on Licensor in connection
with the operation of Licensee's business, or for any expenditure, obligation or
liability incurred by Licensee in performing or preparing to perform, any of its
obligations under this Agreement. The credit risk with respect to sales by
Licensee to its customers will be borne by Licensee, and the collectibles of any
amount due Licensee will in no respect eliminate, reduce or otherwise affect an
obligation of Licensee to Licensor.

      14.16 Amendment. This Agreement may only be modified, supplemented or
amended by a written instrument executed by the parties to it.

      14.17 Conditions Precedent. Each and every provision of this Agreement
shall be contingent and become effective only upon the execution and delivery of
the Intellectual Property hereinabove described.

      14.18 Headings . The division of this Agreement into Articles and Sections
and the insertion of headings are for convenience of reference only and shall
not affect the construction or interpretation of this Agreement.

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      14.19 Schedules. Exhibits and Other Agreements.

            (a) The Schedules, Exhibits and other agreements specifically
referred to in, and delivered pursuant to, this Agreement are an integral part
of it. Any disclosure that is made in any of the Schedules delivered pursuant to
this Agreement shall be deemed responsive to any other applicable disclosure
obligation hereunder.

            (b) The following are the Exhibits and Schedules annexed hereto and
incorporated by reference and deemed to be part hereof:

                (i) Exhibits:
                    Exhibit A - Patent Pending List
                    Exhibit B - FDA 510K Numbers

      14.20 [Intentionally Omitted]

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                                 SIGNAUTURE PAGE

      IN WITNESS WHEREOF, Licensor and Licensee have executed this Agreement on
the day set forth below.

Licensor                                  Licensee
Addison-Davis Diagnostics, Inc.           Montecito Bio Sciences, Ltd

BY:  /s/ Edward W. Withrow, III           BY: /s/ Alexandra E. Hoesdorff
     --------------------------               --------------------------
         Edward W. Withrow, III                   Alexandra E. Hoesdorff
         CEO                                      President

Dated: November 23, 2005                  Dated: November 23, 2005

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                                   EXHIBIT A

                                 Patent Pending

Application Number         09752712 Drug Test Cup

                                       17
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                                   EXHIBIT B

                                FDA 510K NUMBERS

F.D.A. Number K991465 Drug Stop

                                       18

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