Document:

Exhibit 4.13

 

Patrick L. Alesia

Chief Financial Officer

100 Jericho Quadrangle, Suite 224

Jericho, NY 11753

 

Dear Mr. Alesia:

 

In connection with the
recent rights offering by Griffon Corporation,                         ,
an Eligible Guarantor Institution, as defined in Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended, delivered [a] notice[s] of
guaranteed delivery (the “Notice of Guaranteed Delivery”) in respect of the
exercise of                
rights to subscribe (including pursuant to the subscription and
over-subscription rights) for an aggregate of                     
shares of Griffon’s common stock, par value $0.25 per share (the “Shares”).  We delivered the Notice of Guaranteed
Delivery pursuant to the instructions of our customers/counterparties in the
good faith belief that such parties would provide to us the applicable
subscription certificates in time to be delivered in accordance with our
obligations under the Notice of Guaranteed Delivery.  Unfortunately, we were unable to comply with
these obligations due to the failure of our customers/counterparties to deliver
the expected subscription certificates.

 

We desire to fulfill our
obligations under the Notice of Guaranteed Delivery and accordingly are
delivering to Griffon, together with this letter, $              ,
representing the aggregate subscription price for the                 
Shares for which we delivered the Notice of Guaranteed Delivery.  In doing so, we agree to indemnify, defend
and hold Griffon harmless from and against any and all claims, damages, losses
and expenses, including attorneys’ fees, asserted by any person in connection
with or arising out of the Notice of Guaranteed Delivery, the undelivered
subscription certificates, this letter or the issuance of Shares to us pursuant
hereto.  We further agree that, in the
event we receive any of the undelivered subscription certificates, we will
cause them to be returned to Griffon.

 

	
   

  	
  [Eligible Guarantor
  Institution] 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: 

  
	
   

  	
  Title:Filed by sedaredgar.com -  Fox Petroleum Inc. - Exhibit 10.1

BALLYLIFFIN CAPITAL CORP.

September 26, 2008

	FOX ENERGY EXPLORATION LIMITED 
	64 Knightsbridge 
	London SW1X 7JF 
	England 

Attention: Mr Richard Joseph Moore 

-and-

	FOX PETROLEUM INC. 
	64 Knightsbridge 
	London SW1X 7JF 
	England 

Attention: Mr. Richard Joseph Moore 

Dear Sirs:

	Re: 	Transaction Proposal and Exclusivity Agreement (the
      “Letter Agreement”) 

Further to our discussions, this Letter Agreement will serve as
an agreement between ----------------. (“BLL”), on the one part, and Fox
Energy Exploration Limited (“Fox UK”) and Fox Petroleum Inc. (“Fox
US”), on the other part, with respect to the proposed business combination
(the “Transaction”) between BLL, Fox UK and Fox US on the terms set out
herein.

	1. 	
      Price and Structure of
  Transaction

The final structure of the Transaction will be determined once
all of the tax, corporate and securities laws issues have been reviewed in
detail.

Under the Transaction BLL will acquire 100% of the issued and
outstanding shares of Fox UK (the “Fox Shares”) whereby the holders of
Fox Shares will receive common shares of BLL (the “BLL Shares”) in
exchange for their Fox Shares, the whole based on a valuation of Fox UK to of
$70,000,000.00 on a pre-financing basis (the “Valuation”). Pursuant to
said exchange, the BLL Shares shall be issued at a price of CAD$0.40 per
share

Fox UK, Fox US and BLL hereby acknowledge and agree to work
together to retain the services of a financing agent (the “Agent”) in
respect of a private equity offering of up to $25,000,000 (the
“Financing”), the whole to be conducted, on a best efforts basis, for Fox
UK upon terms and conditions mutually acceptable to BLL, on the one hand, and
Fox UK and Fox US, on the other hand.

2

All funds received pursuant to the Financing shall principally
be applied to the maintenance and development of Fox UK’s North Sea projects,
the whole as set forth in Schedule A attached hereto.

	2. 	
      Definitive Agreements

The parties will begin to prepare drafts of the legal documents
necessary to effect the Transaction and the Financing. The parties shall use
their good faith efforts to complete and be in a position to execute definitive
agreements relating to the Transaction and the Financing (the “Definitive
Agreements”) no later than 14 days following the retention of the Agent (the
“Retention Date”) or such later time and date as may be mutually agreed
to by the parties in writing.

Upon execution of the LOI by both parties, and subject to prior
approval of the TSX Venture Exchange, BLL shall advance to BLL’s legal counsel,
the sum of CAD$250,000 to be held in trust as a refundable deposit in favour of
Fox UK. If the Transaction does not close as a result of BLL’s termination of
the Transaction, then $225,000 shall be returned to BLL and Fox UK shall be
entitled to receive a $25,000 termination fee from BLL. 

Closing of the Financing would be targeted to occur 30 days
following the Retention Date of the Agent or, before November 30, 2008.

Closing of the Transaction would be targeted to occur 60 days
following the Retention Date or such other time and date, earlier or later, as
may be mutually agreed to by the parties, the whole subject to regulatory
approval.

The Definitive Agreements shall be mutually acceptable to Fox
UK, Fox US and BLL and shall be substantially in the form customarily used for
such a document, including customary representations and warranties and
conditions.

Without limitation, the Definitive Agreements shall provide
that the obligations to complete the Transaction shall be conditional on, among
other things:

	 	(a) 	
      Fox UK having prepared and provided audited financial
      statements and reports compliant with National Instrument 51-101
      respecting Standards of Disclosure for Oil and Gas
  Activities;

	 	 	 
	 	(b) 	
      receipt by the parties of all required third party
      approvals;

	 	 	 
	 	(c) 	
      the parties having used their good faith efforts to
      prepare all necessary disclosure and filing documentation in respect of
      the Transaction and receipt by the parties of all regulatory approvals
      (including relevant stock exchanges);

	 	 	 
	 	(d) 	
      required approval by the stakeholders of BLL, Fox UK and
      Fox US;

	 	 	 
	 	(e) 	
      approval by the board of directors of BLL, Fox UK and Fox
      US;

	 	 	 
	 	(f) 	
      as for the Transaction, completion by Fox UK and Fox US
      of a satisfactory due diligence on BLL pursuant to paragraph 8 of this
      Letter Agreement;

3

	 	(g) 	
      as for the Transaction, completion by BLL of a
      satisfactory due diligence on Fox UK and Fox US pursuant to paragraph 8 of
      this Letter Agreement; and

	 	 	 
	 	(h) 	
      if required by the TSX Venture Exchange, a qualified
      Sponsor (as defined under the TSX Venture Exchange Manual) shall accept to
      sponsor the Transaction and shall file with the TSX Venture Exchange at
      its entire satisfaction a Sponsor Report (as defined under the TSX Venture
      Exchange Manual).

	3. 	
      Other Matters respecting the Transaction and the
      Resulting Issuer

The parties agree that upon completion of the Transaction, Fox
UK will be organized as follows:

	Name - 	A name to be determined but
      incorporating the term “Fox” (“Fox Canada”) 
	  	  
	Directors - 	The Fox Canada board will be
      comprised of seven members, four of which shall be nominated by Fox US and
      two of which shall be nominated by BLL. The one remaining directors shall
      be independent from Fox UK and Fox US, one of which shall be designated as
      non-executive Chairman of the Fox Canada board of directors.

	Officers - 	The following persons will be the
      initial officers of Fox Canada: 
	  	 
	  	- Richard Joseph Moore – Chief
      Executive Officer 
	  	- William McNee – Chief Operating
      Officer 
	  	- Jonathan Wood – Chief Financial
      Officer 
	  	- Alexander J. Craven – Executive
      Vice President 
	  	 
	  	In addition, Mike Rose shall be
      in charge of Exploration, and Rob Frost shall be the Director of Earth
      Sciences. 
	 	 
	  	 
	Corporate
      Offices - 	The principal place of business
      and head office of Fox Canada will be in London except if agreed otherwise
      by the parties. 

	4. 	
      Subsequent Merger of Fox Canada and Fox
  US

The parties agree that, immediately upon the completion of the
Transaction and the Financing, they shall negotiate in good faith the merger of
Fox Canada with Fox US, the final structure of which will be determined once all
of the tax, corporate and securities law issues have been reviewed in detail;
provided, however, that the parties agree that such merger shall be based upon
market terms and conditions then in effect at that time.

	5. 	
      Business Activities

Each of BLL, Fox UK and Fox US agrees that during the period
from the date of execution of this Letter Agreement until the earlier of (i) the
date of the execution of the Definitive Agreements, and (ii) the date on which
this Letter Agreement is terminated, except as required 

4 

by law, as otherwise expressly permitted or specifically
contemplated by this Letter Agreement or with the prior written consent of the
other party, it:

	 	(a) 	
      shall conduct its business only in the usual and ordinary
      course of business, consistent with past practices and it shall use all
      commercially reasonable efforts to maintain and preserve its business,
      assets and advantageous business relationships;

	 	 	 
	 	(b) 	
      shall not (i) amend its articles or by-laws; (ii)
      declare, set aside or pay any dividend or make any other distribution or
      payment (whether in cash, shares or property) in respect of its
      outstanding shares; (iii) issue or agree to issue any shares, or
      securities convertible into or exchangeable or exercisable for, or
      otherwise evidencing a right to acquire, shares, other than the issuance
      of shares or securities pursuant to the Financing or the exercise of
      currently outstanding employee stock options; (iv) redeem, purchase or
      otherwise acquire any of its outstanding shares or other securities; (v)
      split, combine or reclassify any of its shares; (vi) adopt a plan of
      liquidation or resolutions providing for its liquidation, dissolution,
      merger, consolidation or reorganization; or (vii) enter into or modify any
      contract, agreement, commitment or arrangement with respect to any of the
      foregoing;

	 	 	 
	 	(c) 

	
      shall not, except as previously disclosed or contemplated
      by this Letter Agreement, or without prior consultation with and the
      consent of the other party, such consent not to be unreasonably withheld,
      directly or indirectly (i) sell, pledge, dispose of or encumber any assets
      (other than in the ordinary course of business) having an individual value
      in excess of $100,000; (ii) expend or commit to expend more than $50,000
      individually or $200,000 in the aggregate with respect of any capital
      expenditures (other than in the ordinary course of business); (iii) expend
      or commit to expend any amounts with respect to any operating expenses
      (other than in the ordinary course of business); (iv) acquire (by merger,
      amalgamation, consolidation or acquisition of shares or assets) any
      corporation, partnership or other business organization or division
      thereof, or make any investment therein either by purchase of shares or
      securities, contributions of capital or property transfer; (v) acquire any
      assets with an acquisition cost in excess of (A) $50,000 individually or
      (B) $200,000 in the aggregate (other than in the ordinary course of
      business); (vi) incur any indebtedness for borrowed money in excess of
      existing credit facilities, or any other material liability or obligation
      or issue any debt securities or assume, guarantee, endorse or otherwise
      become responsible for, the obligations of any other individual or entity,
      or make any loans or advances, other than in respect of fees payable to
      legal, financial and other advisors in the ordinary course of business or
      in respect of the Transaction; (vii) authorize any release or
      relinquishment of any material contract right (other than in the ordinary
      course of business); (viii) waive, release, grant or transfer any material
      rights of value or modify or change in any material respect any existing
      material license, lease, contract, production sharing agreement,
      government land concession or other material document (other than in the
      ordinary course of business); (ix) enter into or terminate any hedges,
      swaps or other financial instruments or like transactions (other than in
      the ordinary course of business); or

	 	

5

	 		
      (x) authorize any of the foregoing, or enter into or
      modify any contract, agreement, commitment or arrangement to do any of the
      foregoing;

	 	 	 
	 	(d) 	
      except as set forth in Schedule B attached hereto, shall
      not make any payment to any employee, officer or director outside of their
      ordinary and usual compensation for services provided;

	 	 	 
	 	(e) 	
      except as set forth in Schedule B attached hereto, shall
      not grant any officer, director or employee an increase in compensation in
      any form, grant any general salary increase, take any action with respect
      to the amendment or grant of any severance or termination pay policies or
      arrangements for any directors, officers or employees (other than to
      permit accelerated vesting of currently outstanding stock options), or
      make any loan to any officer, director or any other party not at arm’s
      length;

	 	 	 
	 	(f) 	
      except as set forth in Schedule B attached hereto, shall
      not adopt or amend or make any contribution to any bonus, cost plus
      employee benefit plan, profit sharing, option, deferred compensation,
      insurance, incentive compensation, other compensation or other similar
      plan, agreement, trust, fund or arrangements for the benefit of employees,
      except as is necessary to comply with the law or with respect to existing
      provisions of any such plans, programs, arrangements or
  agreements;

	 	 	 
	 	(g) 	
      shall use its commercially reasonable efforts to maintain
      in force its current insurance policies and will pay all premiums in
      respect of such insurance policies that become due after the date hereof;
      and

	 	 	 
	 	(h) 	
      shall not take any action, refrain from taking any
      action, permit any action to be taken or not taken, inconsistent with this
      Letter Agreement, which might directly or indirectly interfere or affect
      the consummation of the Transaction and the
Financing.

	6. 	
      Non-Solicitation

Each of BLL, Fox UK and Fox US agrees that during the period
from the date of execution of this Letter Agreement until the earlier of (i) the
date of the execution of the Definitive Agreements, and (ii) the date on which
this Letter Agreement is terminated, it:

	 	(a) 	
      shall immediately cease and cause to be terminated any
      existing discussions or negotiations or other proceedings initiated prior
      to the date hereof by it, or its officers, directors, employees, financial
      advisors, representatives and agents (“Representatives”) or others
      with respect to all Take-over Proposals (as defined below);

	 	 	 
	 	(b) 	
      shall not solicit or cause or facilitate anyone else to
      solicit any Take-over Proposal;

	 	 	 
	 	(c) 	
      shall not provide information concerning its securities,
      assets or business to anyone for or in furtherance of anything mentioned
      in subparagraphs 6(a) or 6(b);

6

	 	(d) 	
      shall not release any person from any confidentiality or
      standstill agreement to which it and such person are parties or amend any
      such agreement; and

	 	 	 
	 	(e) 	
      shall not, and shall not authorize or permit any of its
      Representatives to, directly or indirectly, solicit, initiate or encourage
      (including by way of furnishing information) any inquiries or the making
      of any proposal that constitutes or may reasonably be expected to lead to
      a Take-over Proposal from any person, or engage in any discussion,
      negotiations or inquiries relating thereto or accept any Take-over
      Proposal.

For the purposes of this Letter Agreement, “Take-over
Proposal” means a proposal or offer by a third person, whether or not
subject to a due diligence or other condition and whether or not in writing, to
acquire in any manner, directly or indirectly, beneficial ownership of all or a
material portion of the assets of BLL, Fox UK or Fox US, as the case may be, or
any of their respective subsidiaries or to acquire in any manner, directly or
indirectly, beneficial ownership of or control or direction over more than 20%
of the outstanding voting shares of BLL, Fox UK or Fox US, as the case may be,
whether by way of takeover bid, arrangement, amalgamation, merger, consolidation
or other business combination, including without limitation, any single or
multistep transaction or series of related transactions that is structured to
permit such third person to acquire beneficial ownership of all or a material
portion of its asset or any of the subsidiaries or to acquire in any manner,
directly or indirectly, beneficial ownership of or control or direction over
more than 20% of its outstanding voting shares and includes any proposal, offer
or agreement for a merger, consolidation, amalgamation, arrangement,
recapitalization, liquidation, dissolution or reorganization into a royalty
trust or income fund or similar transaction or other business combination
involving BLL, Fox UK or Fox US, as the case may be, or their respective
subsidiaries or any proposal, offer or agreement to acquire 20% or more of the
assets of BLL, Fox UK or Fox US, as the case may be; provided that the Financing
shall not be interpreted as a Take-over Proposal.

Notwithstanding the above or any other term of this Letter
Agreement, each of BLL, Fox UK and Fox US may:

	 	(a) 	
      engage in discussions or negotiations with any person who
      (without any solicitation, initiation or encouragement, directly or
      indirectly, by BLL, Fox UK or Fox US, as the case may be, or its
      Representatives) seeks to initiate such discussions or negotiations and
      may furnish such third person information concerning it and its business,
      properties and assets that has previously been provided to the other
      party, provided that:

	 	 	 	 
	 		(i) 	
      the other person has first made a bona fide
      written Take-over Proposal that the board of directors has determined
      in good faith would, if consummated in accordance with its terms, likely
      result in a transaction that is more favourable from a financial point of
      view to its shareholders (solely in their capacity of shareholders) than
      the Transaction and the Financing (a “Superior Proposal”) after
      taking into account the advice of a financial advisor and after taking
      into account any other relevant factors permitted by applicable law
      (including the likelihood of obtaining financing
and

7

	 		
       
	regulatory approval for such proposal and the likelihood
    of consummating such proposal);
	 	 	 	 
	 		(ii) 	
      prior to furnishing such information to or entering into
      discussions or negotiations with such person or entity, and in any event,
      as soon as reasonably practicable, it provides notice orally and in
      writing to the other party hereto specifying that it is furnishing
      information to or entering into discussions or negotiations with such
      person or entity in respect to a Superior Proposal, receives from such
      person or entity an executed confidentiality agreement having
      confidentiality and standstill terms substantially similar to those
      contained herein and provides such other party hereto with a copy of such
      Superior Proposal and any amendments thereto and confirms in writing the
      determination of its board of directors that the Take-over Proposal, if
      completed, would constitute a Superior Proposal;

	 	 	 	 
	 		(iii) 	
      it provides notice to the other party at such time as it
      or such person or entity terminates any such discussions or negotiations;
      and

	 	 	 	 
	 		(iv) 	
      as soon as reasonably practicable, it provides or makes
      available to the other party any information provided to any such person
      or entity whether or not previously made available to such other
    party;

	 	 	 	 
	 	(b) 	
      accept, recommend, approve or implement a Superior
      Proposal from a third person, but only (in the case of this subparagraph
      6(b)) if prior to such acceptance, recommendation, approval or
      implementation, its board of directors shall have concluded in good faith,
      after receiving the advice of outside counsel, that the taking of such
      action is necessary for the board of directors in discharge of its
      fiduciary duties under applicable law and it concurrently terminates this
      Letter Agreement pursuant to subparagraph 12(b).

Each of BLL, on the one hand, and Fox UK and Fox US, on the
other hand, shall give the other party hereto notice of any agreement (and the
terms of such agreement) proposed to be entered into to implement a Superior
Proposal. For a period of three business days from the time that BLL, Fox UK or
Fox US (in this paragraph, the “Notifying Party”), as the case may be,
provides notice of such Superior Proposal to the other party hereto and any
amendment thereto, together with the foregoing confirmation in respect of the
board of directors’ determination pursuant to subparagraph 6(a)(i), the board of
directors of the Notifying Party and the Notifying Party agree not to accept,
recommend or approve or enter into any agreement (a “Proposed Agreement”)
to implement such a Superior Proposal or release the party making the Superior
Proposal from any standstill provisions. In addition, in respect of any Superior
Proposal, the Notifying Party shall and shall cause its financial and legal
advisors to negotiate in good faith with the other party hereto to make such
adjustments in the terms and conditions of this Letter Agreement and the terms
of the Transaction as would enable the other party hereto to proceed with the
transaction contemplated herein, as amended, rather than the Superior Proposal.
In the event such other party hereto proposes to amend this Letter Agreement and
the terms of the Transaction to provide equal or superior value to that provided
under the Superior Proposal within a period of three business days from the time
that such other party receives notice of the Superior Proposal from the
Notifying Party as aforesaid and a copy of the Proposed Agreement 

8

(and any amendments thereto), the Notifying Party shall not
enter into any Proposed Agreement regarding the Superior Proposal or any
amendment thereof.

	7. 	
      Shareholders’ Meetings

In the event where any party hereto would be required by
applicable corporate and securities laws to hold any special shareholders’
meetings to approve the Transaction, such party shall do so as expeditiously as
possible following the execution of the Definitive Agreements, and the parties
will work together to prepare common materials for such shareholders’
meetings.

	8. 	
      Due Diligence

Without limiting the generality of any of the other provisions
of this Letter Agreement, each of BLL, on the one hand, and Fox UK and Fox US,
on the other hand, is entitled to complete its due diligence in respect of the
other party’s business, operations, assets, prospects, financial condition and
affairs.

Each of BLL, on the one hand, and Fox UK and Fox US, on the
other hand, will make available to the other all land, legal, title documents
and related files, geologic maps, well files and well logs, books, papers,
financial information and pertinent documents or agreements relating to the
above matters, and shall provide reasonable physical access to all assets.

In addition, each of the parties agrees to:

	 	(a) 	
      permit the legal and professional representatives and
      agents of the other party full access to its books, records and documents
      provided that the disclosing party is satisfied, acting reasonably, that
      the confidentiality of the subject matter of the disclosure can be
      maintained in accordance with the confidentiality provisions contained
      herein; and

	 	 	 
	 	(b) 	
      endeavour to include in the information furnished to the
      other party or obtained by the other party in the course of the aforesaid
      investigations, all information which would reasonably be considered to be
      relevant for the purposes of the other party’s investigation and not
      knowingly withhold any information which would make anything contained in
      the information delivered erroneous or misleading.

The parties shall use all reasonable commercial efforts to
complete all due diligence from the later of: (i) 30 days following the
Retention Date (unless the parties mutually agree to extend such period) or (ii)
30 days after the delivery by Fox UK to BLL of the NI 51-101 Report. Upon
completion of their respective due diligence reviews, each party shall advise
the other party in writing as to whether its due diligence review has resulted
in a discovery of adverse information with respect to the business and affairs
of such other party that the first party considers significant, taken as a
whole, that had not been previously disclosed and giving the details of any such
information. In such circumstances, BLL, on the one hand, or Fox UK or Fox US,
on the other hand, as the case may be, shall in the same letter indicate
whether, in view of such significant information, it is terminating this Letter
Agreement (with no obligation to either party hereto).

9

	9. 	
      Confidentiality

	 	(a) 	
      Each party hereto recognizes that it is essential to the
      success of each of the other parties hereto that their business and
      affairs be kept in the strictest confidence. The party receiving
      information (the “Receiving Party”) from one of the other parties
      (the “Disclosing Party”) shall keep all information pertaining to
      or concerning the Disclosing Party (other than as hereinafter provided) in
      the strictest confidence and shall not utilize or make available any such
      information directly or indirectly in connection with any business or
      activity in which the Receiving Party is or proposes to be involved, and
      shall not disclose any of that information to any person other
  than:

	 	 	 	 
	 		(i) 	
      as required by courts of competent jurisdiction, stock
      exchange rules or policies of or undertakings given to governmental
      entities having jurisdiction;

	 	 	 	 
	 		(ii) 	
      as required by law; or

	 	 	 	 
	 		(iii) 	
      to a governmental entity to which the disclosure is
      required by law and where there is no reasonable means to avoid that
      disclosure.

	 	(b) 	
      The standard of care for protecting confidential
      information under paragraph 9(a) shall be that degree of reasonable care
      which the Receiving Party would use to prevent disclosure, publication or
      dissemination of the Receiving Party’s own proprietary or confidential
      information,

	 	 	 	 
	 	(c) 	
      The Receiving Party shall not be obligated to keep in
      confidence nor shall it incur any liability for disclosure of information
      to a third party (the “Recipient”) of the nature aforesaid
      which:

	 	 	 	 
	 		(i) 	
      has become known or available to the Recipient in
      carrying on its business in the ordinary course without a breach of this
      Letter Agreement, or as required by law;

	 	 	 	 
	 		(ii) 	
      was permitted to be disclosed by the Disclosing
    Party;

	 	 	 	 
	 		(iii) 	
      has been public or is otherwise within the public domain
      at the time of its disclosure to the Recipient;

	 	 	 	 
	 		(iv) 	
      comes into the public domain without any breach of this
      Letter Agreement; or

	 	 	 	 
	 		(v) 	
      becomes known or available to the Recipient other than as
      a result of the activities of the Receiving Party but without any breach
      of this Letter Agreement.

	 	 	 	 
	 	(d) 	
      In the event of a breach of any covenant contained in
      this section, the Disclosing Party shall be entitled to an injunction
      restricting that breach or otherwise specifically to enforce any of those
      covenants in addition to any other remedies

10

	 		
      provided by law. Any remedy expressly set forth in this
      Letter Agreement shall be in addition to and not exclusive of or dependant
      on the exercise of any other remedy available to the Disclosing Party at
      law or otherwise.

	 	 	 
	 	(e) 	
      The Receiving Party shall be responsible for any breach
      by it, its representatives, agents and advisors of the covenants and
      obligations provided in this section of this Letter
  Agreement.

	10. 	
      Material Changes

From and after the date of execution of this Letter Agreement
until the earlier of (i) the date of the execution of the Definitive Agreements,
or (ii) the date on which this Letter Agreement is terminated, each of BLL, on
the one hand, and Fox UK and Fox US, on the other hand, shall promptly notify
the other party hereto in writing of any material change (actual, anticipated,
contemplated or threatened, financial or otherwise) in its business, operations,
affairs, assets, capitalization, financial condition, prospects, licenses,
permits, rights, privileges or liabilities, whether contractual or
otherwise.

	11. 	
      Announcements

The parties agree that each of them must issue a press release
and file a material change report in respect of this Letter Agreement, and agree
to consult with each other on the content thereof and to use their reasonable
commercial efforts to agree on a joint release in respect of such matters.
Otherwise, unless otherwise required by applicable securities law or the
policies of the TSX Venture Exchange or other regulatory authorities, neither
party shall, except with the prior written consent of the other party, issue any
press release regarding the Transaction.

	12. 	
      Termination

This Letter Agreement shall terminate with the parties hereto
having no further obligations to each other hereunder in the following
circumstances:

	 	(a) 	
      by written agreement of both parties; or

	 	 	 
	 	(b) 	
      by either BLL, on the one hand, or Fox UK and Fox US, on
      the other hand, advising that it is terminating this Letter Agreement in
      accordance with paragraph 6; or

	 	 	 
	 	(c) 	
      by either BLL, on the one hand, or Fox UK and Fox US, on
      the other hand, advising that it is terminating this Letter Agreement if
      the Definitive Agreements have not been entered into within 30 days
      following the Retention Date;

	 	 	 
	 	(d) 	
      by either BLL, on the one hand, or Fox UK and Fox US, on
      the other hand, in the event that the Financing is not completed as
      contemplated herein by November 30, 2008, unless the parties hereto agree
      in writing to extending the closing date of Financing;
or

11

	13. 	
      Fees and Expenses

All fees, costs and expenses incurred in connection with this
Letter Agreement and the Transaction and Financing contemplated hereby shall be
paid by the party incurring such fees, costs and expenses.

	14. 	
      Finders Fees

The parties hereto acknowledge that finders fees will be
payable to Pollard Financial Ltd. in connection with its efforts in facilitating
the Transaction and that such finders fees will be payable in accordance with
the polices of the TSX Venture Exchange. 

	15. 	
      Enforceability

The Parties intend that, subject to the conditions set forth
herein, this Letter Agreement is binding.

	16. 	
      Currency

Unless otherwise indicated, all dollar amounts referred to
herein refer to the currency of the United States of America.

	17. 	
      Applicable Law

It is mutually understood and agreed that this Letter Agreement
and the Definitive Agreements shall be governed and interpreted in all respects
according to the law of the Province of Alberta and the laws of Canada
applicable therein. 

	18. 	
      Language

It is the express wish of the parties to this Letter Agreement
that this Letter Agreement and all related documents be drafted in English. Les
parties aux présentes conviennent et exigent que cette convention ainsi que tous
les documents s'y rattachant soient rédigés en langue Anglais.

If the foregoing is acceptable, please execute the enclosed
duplicate copy of this Letter Agreement in the space below and return it to the
undersigned on or prior to 5:00 p.m. (PST) on September 26, 2008, and unless
that happens, this Letter Agreement shall lapse and be of no further force or
effect.

Yours truly,

	BALLYLIFFIN CAPITAL CORP. 
	  	  
	  	  
	Per: 	/s/ Steven
      Khan__________________________________________             
	  	Authorized Signatory 
	  	Steven Khan - Director
  

	ACKNOWLEDGED AND ACCEPTED,
      this 26 day of September, 2008 
	 
	 
	
	FOX ENERGY EXPLORATION LIMITED 
	 
	 
	Per: 	/s/ Richard Joseph
      Moore__________________________________ 
	  	Richard Joseph Moore 
	 	 
	FOX PETROLEUM INC. 
	 
	 
	Per: 	/s/ Richard Joseph
      Moore__________________________________ 
	  	Richard Joseph Moore

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