Document:

petro_10q-ex1005.htm

     

    Exhibit
10.5

     

     

     

     

    PARTNERSHIP
INTEREST PURCHASE AGREEMENT

     

    BY
AND AMONG

     

    PETRO
RESOURCES CORPORATION,

     

    PRC
HHEP II, LP

     

    AND

     

    HHEP
GP II, L.P.

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    
    

     

    
      	 	 	
              PAGE

            
	 	 
	ARTICLE I
      DEFINITIONS	
              1

            
	
              1.1

            	Definitions	
              1

            
	
              1.2

            	
              Interpretation

            	
              2

            
	 	 
	ARTICLE
      II PURCHASE AND SALE OF PARTNERSHIP INTEREST; CLOSING	
              3

            
	
              2.1

            	Purchase
      and Sale of Partnership Interest	
              3

            
	
              2.2

            	Purchase
      Price	
              3

            
	
              2.3

            	Closing	
              3

            
	 	 
	ARTICLE III
      REPRESENTATIONS AND WARRANTIES OF SELLER	
               4

            
	
              3.1

            	Existence
      and Good Standing; Authority; Enforceability	
               4

            
	
              3.2

            	Partnership
      Interest	
               4

            
	
              3.3

            	No
      Conflicts; Consents and Approvals	
               4

            
	
              3.4

            	Litigation	
               4

            
	
              3.5

            	Brokers	
               5

            
	 	 
	ARTICLE IV
      REPRESENTATIONS AND WARRANTIES OF PURCHASER	
               5

            
	
              4.1

            	Existence
      and Good Standing; Authority; Enforceability	
               5

            
	
              4.2

            	No
      Conflicts; Consents and Approvals	
               5

            
	
              4.3

            	Litigation	
               5

            
	
              4.4

            	Brokers	
               5

            
	
              4.5

            	Investor
      Status and Investment Intent	
               5

            
	
              4.6

            	Other	
               6

            
	 	 
	ARTICLE V ADDITIONAL
      AGREEMENTS	
               8

            
	
              5.1

            	Consent
      and Waiver regarding Transfer of Partnership Interest	
               8

            
	
              5.2

            	Sales
      and Transfer Taxes	
               8

            
	
              5.4

            	Further
      Assurances	
               8

            
	 	 
	ARTICLE VI SURVIVAL
      OF REPRESENTATIONS AND WARRANTIES	
               8

            
	
              6.1

            	Survival	
               8

            
	 	 
	ARTICLE VII
      GENERAL	
               9

            
	
              7.1

            	Notices	
               9

            
	
              7.2

            	Counterparts	
               9

            
	
              7.3

            	Miscellaneous	
               9

            

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    PARTNERSHIP
INTEREST PURCHASE AGREEMENT

     

    This
PARTNERSHIP INTEREST PURCHASE AGREEMENT dated as of September 26, 2008 (this
“Agreement”) is made by and among PETRO RESOURCES CORPORATION, a Delaware
corporation (“Seller”), PRC HHEP II, LP, a Texas limited partnership
(“Purchaser”) and HHEP GP II, L.P., a Delaware limited partnership (the “General
Partner”).

     

    RECITALS:

     

    Seller is
the record and beneficial owner of a 51⁄3% limited partner interest (the
“Partnership Interest”) in Hall-Houston Exploration  II, L.P., a
Delaware limited partnership (the “Partnership”).  Seller desires to
sell the Partnership Interest to Purchaser and Purchaser desires to purchase the
Partnership Interest from Seller on the terms and conditions of this
Agreement.  Upon the consummation of the transactions contemplated by
Article II, Seller will own no interest in the Partnership and Purchaser will
become a substituted limited partner in the Partnership with a 51⁄3% limited
partner interest in the Partnership.

     

    NOW,
THEREFORE, in consideration of the mutual covenants, agreements, representations
and warranties contained herein, and in reliance thereon, Seller and Purchaser,
intending to be legally bound, hereby agree as follows:

     

    ARTICLE
I

    DEFINITIONS

     

    1.1           Definitions.  In
this Agreement, including the recitals, the following terms have the meanings
specified in the following Sections:

    

    
      	
              Defined
      Term

            	
              Section

            
	 
      	 
      
	
              “Agreement”

            	
              Preamble

            
	
              “Closing”

            	
              2.3

            
	
              “Closing
      Date”

            	
              2.3

            
	
              “General
      Partner”

            	
              Preamble

            
	
              “Partnership”

            	
              Recitals

            
	
              “Partnership
      Interest”

            	
              Recitals

            
	
              “Purchase
      Price”

            	
              2.2

            
	
              “Purchaser”

            	
              Preamble

            
	
              “Seller”

            	
              Preamble

            

    

    

    Capitalized
terms used but not otherwise defined in this Agreement have the meanings
assigned to such terms in the Partnership Agreement.

     

    In
addition, the following terms shall have the following meanings:

     

    “Contract” shall mean,
with respect to any Person, any contract, lease, commitment, sales order,
purchase order, agreement, instrument, mortgage, deed of trust, indenture,
franchise, note, bond or other contractual obligation pursuant to the terms of
which such Person is entitled to any present or future benefit or subject to any
present or future benefit, and shall include the certificate of incorporation,
bylaws, partnership agreement and similar organizational documents of any
Person.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Governmental
Authority” shall mean the government of the United States, any state or
political subdivision thereof, and any body exercising executive, legislative,
judicial regulatory or administrative authority or functions of or pertaining to
government.

     

    “Legal Requirement”
shall mean any applicable constitutional provision, statute, act, code, law,
rule, ordinance, order, decree, ruling, proclamation, resolution, judgment,
decision, declaration or interpretive or advisory opinion or letter of any
Governmental Authority.

     

    “Liens” shall mean all
mortgages, liens, pledges, encumbrances, charges, agreements, claims,
restrictions and defects of title.

     

    “Partnership
Agreement” shall mean the Amended and Restated Agreement of Limited
Partnership of Hall-Houston Exploration II, L.P. dated as of April 21, 2006, as
amended.

     

    “Person” shall mean an
individual, partnership, corporation, business trust, trust, unincorporated
association, limited liability company, joint venture or any other entity of
whatever nature.

     

    “Securities Act” shall
mean the Securities Act of 1933, as amended.

     

    1.2            Interpretation.  In
this Agreement, unless the context otherwise requires:

     

    (a)    The terms
“hereby,” “hereunder,” and any similar terms, as used in this Agreement, refer
to this Agreement.

     

    (b)    Any reference
to any Section or Schedule contained in this Agreement shall refer to such
Section or Schedule as set forth in or attached to this Agreement,
notwithstanding use of or failure to use the term “hereof,” “hereto” or “herein”
in connection with such reference.

     

    (c)    Words shall
apply equally to both singular and plural forms of the terms defined, and words
importing gender shall include all genders.

     

    (d)    Any headings
preceding the text of the several Sections of this Agreement, and any table of
contents appended to copies hereof, shall be solely for convenience of reference
and shall not constitute a part of this Agreement, nor shall they affect its
meaning, construction or effect.

     

    (e)    Unless
expressly limited, all references to agreements are references to agreements as
the provisions thereof may be amended, modified or waived from time to
time.

     

    (f)    The word
“including” when following any general statement, term or matter shall not be
construed to limit such general statement, term or matter to the specific items
or matters set forth immediately following such word or similar words, whether
or not non-limiting language (such as “without limitation” or “but not limited
to” or words of similar import) is used with reference thereto, but rather shall
be deemed to refer to all other items or matters that could reasonably fall
within the broadest possible scope of such general statement, term or
matter.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (g)    Statements
herein qualified by “known to Seller,” “Seller’s knowledge” or a similar phrase
shall mean that an executive officer of Seller after reasonable due inquiry has
no current actual knowledge of the inaccuracy of such statement.  No
knowledge of any other Person shall be imputed to Seller unless actually
disclosed to Seller in writing.

     

    ARTICLE
II

    PURCHASE
AND SALE OF PARTNERSHIP INTEREST; CLOSING

     

    2.1       
    Purchase and Sale of
Partnership Interest.  Subject to the terms and conditions of
this Agreement, and in reliance on the representations and warranties contained
in this Agreement, as of 9:00 a.m. Houston, Texas time on the Closing
Date:

     

    (a)    Seller hereby
sells, assigns, transfers and delivers, free and clear of any Liens, the
Partnership Interest, together with all rights, titles, interests, remedies,
powers and privileges thereunto appertaining, to Purchaser; and Purchaser hereby
purchases and accepts the Partnership Interest and assumes Seller’s obligation
to fund the remaining Unfunded Commitment with respect to the Partnership
Interest of approximately $1,353,000 and hereby agrees to be bound by the
Partnership Agreement as a Limited Partner;

     

    (b)    Purchaser
shall pay the Purchase Price to Seller by wire transfer of immediately available
funds to an account designated in writing by Seller;

     

    (c)    Seller shall
pay a placement fee equal to 3% of the Purchase Price to Herndon Plant Oakley
Ltd. by wire transfer of immediately available funds to an account designated in
writing by Purchaser;

     

    (d)    Seller hereby
withdraws from the Partnership as a limited partner; and

     

    (e)    After giving
effect to the sale and purchase under this Section and the completion of the
Closing, Seller shall be a substituted Limited Partner in the Partnership with a
51⁄3% Percentage Interest in the Partnership.

     

    2.2      
     Purchase
Price.  The aggregate cash consideration for the transfer of
Seller’s Partnership Interest shall be $8,000,000 (the “Purchase
Price”).

     

    2.3     
      Closing.  The
closing of the transactions contemplated by this Article II (the “Closing”)
shall take place at the office of the General Partner at the address set forth
in Section 7.1 of this Agreement on the date this Agreement is executed
(such date, the “Closing
Date”).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES OF SELLER

     

    Seller
hereby represents and warrants to Purchaser that:

     

    3.1           Existence and Good Standing;
Authority; Enforceability.  Seller is a corporation duly
incorporated, validly existing and in good standing under the laws of its state
of incorporation.  Seller has all requisite corporate power and
authority to execute, deliver and perform its obligations under this
Agreement.  The execution and delivery of this Agreement and the
performance of the transactions contemplated hereby have been duly and validly
authorized by such action, corporate or otherwise, necessary on behalf of
Seller, and this Agreement constitutes the legal, valid and binding obligation
of Seller, enforceable against Seller in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency or other laws of
general application relating to or affecting the enforcement of creditors’
rights.

     

    3.2           Partnership
Interest.

     

    (a)    Seller is the
record and beneficial owner of the Partnership Interest, free and clear of all
Liens (except for the requirements of applicable securities laws and the
applicable provisions of the Partnership Agreement).

     

    (b)    Except for the
Partnership Agreement, there are no outstanding written or oral subscriptions,
options, Contracts, commitments or demands of any character relating to the
Partnership Interest to which Seller is a party or by which Seller is
bound.  No proxy has been granted to any Person with respect to the
Partnership Interest.

     

    3.3           No Conflicts; Consents and
Approvals.  Neither (i) the execution, delivery or performance
of this Agreement by Seller, nor (ii) the consummation of the transactions
herein contemplated do or will violate or result in a breach of or constitute a
default under any applicable Contract or Legal Requirement.  Except
for those that have been made, obtained or waived, as applicable, no consent,
approval, notification, authorization or order of, or declaration, filing or
registration with, or waiver or other action by any Governmental Authority or
other Person is required to be obtained or made by Seller in connection with the
execution, delivery and performance of this Agreement or the consummation of the
transactions contemplated hereby.  Neither (i) the execution, delivery
or performance of this Agreement by Seller, nor (ii) the consummation of the
transactions herein contemplated will, to Seller’s knowledge, result in the
imposition or creation of any Lien upon or with respect to the Partnership
Interest.  Seller makes no representation that the sale of the
Partnership Interests will not result in a reassessment or revaluation of the
Partnership’s property and the imposition of tax therefor.

     

    3.4           Litigation.  There
is no litigation, investigation or other proceeding pending or, to Seller’s
knowledge, threatened against Seller or any of Seller’s affiliates which, if
adversely determined, would adversely affect Seller’s ability to perform its
obligations under this Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3.5           Brokers.  Other
than Herndon Plant Oakley Ltd., no broker or finder has acted directly or
indirectly for Seller in connection with this Agreement or the transactions
contemplated hereby, and other than Herndon Plant Oakley Ltd., no broker or
finder is entitled to any brokerage or finder’s fee or other commission on
account of Seller.

     

    ARTICLE
IV

    REPRESENTATIONS
AND WARRANTIES OF PURCHASER

     

    Purchaser
hereby represents and warrants to Seller and the General Partner
that:

     

    4.1           Existence and Good Standing;
Authority; Enforceability.  Purchaser is a limited partnership
duly organized, validly existing and in good standing under the laws of its
state of formation.  Purchaser has all requisite limited partnership
power and authority to execute, deliver and perform its obligations under this
Agreement.  The execution and delivery of this Agreement and the
performance of the transactions contemplated hereby have been duly and validly
authorized by such action, partnership or otherwise, necessary on behalf of
Purchaser, and this Agreement constitutes the legal, valid and binding
obligation of Purchaser, enforceable against Purchaser in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency or
other laws of general application relating to or affecting the enforcement of
creditors’ rights.

     

    4.2           No Conflicts; Consents and
Approvals.  Neither (i) the execution, delivery or performance
of this Agreement by Purchaser, nor (ii) the consummation of the transactions
herein contemplated do or will violate or result in a breach of or constitute a
default under any applicable Contract or Legal Requirement.  Except
for those that have been made, obtained or waived, as applicable, no consent,
approval, notification, authorization or order of, or declaration, filing or
registration with, or waiver or other action by any Governmental Authority or
other Person is required to be obtained or made by Purchaser in connection with
the execution, delivery and performance of the Agreement or the consummation of
the transactions contemplated hereby.

     

    4.3           Litigation.  There
is no litigation, investigation or other proceeding pending or, to Purchaser’s
knowledge, threatened against Purchaser or any of Purchaser’s Affiliates which,
if adversely determined, would adversely affect Purchaser’s ability to perform
its obligations under this Agreement or the Partnership Agreement.

     

    4.4           Brokers.  Other
than Herndon Plant Oakley Ltd., no broker or finder has acted directly or
indirectly for Purchaser in connection with this Agreement or the transactions
contemplated hereby, and other than Herndon Plant Oakley Ltd., no broker or
finder is entitled to any brokerage or finder’s fee or other commission on
account of Purchaser.

     

    4.5           Investor Status and
Investment Intent.

     

    (a)    Purchaser is
an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated
under the Securities Act.

     

    (b)    Purchaser is
acquiring the Partnership Interest for Purchaser’s own account for investment,
and not with a view to any distribution, resale, subdivision, or
fractionalization thereof in violation of the Securities Act or any other
applicable securities law, and Purchaser has no present plans to enter into any
contract, undertaking, agreement, or arrangement for any such distribution,
resale, subdivision, or fractionalization.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c)    Purchaser has
carefully reviewed and is familiar with the terms of the Partnership Agreement
and understands and agrees that in connection with the Closing that Purchaser
will become a party to, and be bound by all of the terms and conditions of, the
Partnership Agreement.  The General Partner has made available to
Purchaser or its representatives all other agreements, documents, records, and
books that Purchaser or its representatives have requested relating to the
purchase of the Partnership Interest.  Purchaser has had a full
opportunity to ask questions of and receive answers from the General Partner or
a Person acting on behalf of the Partnership concerning the terms and conditions
of an investment in the Partnership, and all questions asked by Purchaser have
been adequately answered to the full satisfaction of Purchaser.

     

    (d)    Purchaser
understands that the purchase and sale of the Partnership Interest has not been
and will not be registered under the Securities Act or the securities laws of
any other domestic or foreign jurisdiction and that the Partnership Interest
cannot be sold or transferred without the prior written consent of the General
Partner, which consent may be withheld in its sole and absolute discretion.
Purchaser understands that any certificate representing the Partnership Interest
will bear legends restricting the transfer thereof.

     

    (e)    Purchaser
understands that investment in the Partnership entails a high degree of risk and
understands fully the risks associated with the operation of the Partnership and
Purchaser’s investment in the Partnership.   Purchaser (i) has
such knowledge and experience in financial and business matters that it is
capable of evaluating the risks and merits of purchasing and owning the
Partnership Interest (ii) is able to bear the economic risk of losing its entire
investment in the Partnership and (iii) is able to bear such risk for an
indefinite period of time. Purchaser further represents that he is relying
solely on its own conclusions or the advice of its own counsel or investment
representative with respect to tax aspects of any investment in the
Partnership.

     

    4.6           Other.

     

    (a)    Purchaser’s
address set forth in Section 7.1 is the Purchaser’s principal place of business,
and the Purchaser has no present intention of moving its principal place of
business  to any other domestic or foreign jurisdiction.

     

    (b)    Purchaser is
not a “benefit plan investor” (as such term is defined in 29 C.F.R.
§2510.3-101(f)(2)).

     

    (c)    Purchaser
understands that the Partnership has not been registered as an investment
company under the Investment Company Act in reliance upon an exemption from
registration thereunder, and it agrees that the Partnership Interest that it is
acquiring may not be sold, offered for sale, transferred, pledged, hypothecated,
or otherwise disposed of in any manner that would require the Partnership to
register as an investment company under the Investment Company
Act.  Purchaser has been advised that the Partnership has no
obligation and does not intend to register any Interests under the Investment
Company Act.  Purchaser will not maintain a separate investment
account with respect to its investment in the Partnership whereby each of its
partners, shareholders, trustees or other owners will have the right to elect
not to participate in such investment, except where such election will require
the consent of all persons or the consent of the Purchaser’s general partner (or
other controlling person).  Purchaser shall deliver promptly to the
General Partner any information or documents that the General Partner may
reasonably request to verify the foregoing and to ensure compliance with the
Investment Company Act and the availability of an exemption of the Partnership
from registration thereunder.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (d)    Purchaser
understands that neither the Partnership, the General Partner nor the GP Company
has registered as an investment adviser under the Investment Advisers Act in
reliance upon an exemption from registration provided by Section 203(b)(3)
thereunder.  In particular and without limitation, the Purchaser is
not an investment company registered under the Investment Company Act or any
entity that has elected to be a business development company (as defined in
Section 202(a)(22) of the Investment Advisers Act) pursuant to Section 54 of the
Investment Company Act (and has not withdrawn such election), and Purchaser
covenants that it will not transfer, pledge, hypothecate or otherwise dispose of
its Partnership Interest to any such investment company or business development
company.

     

    (e)    Purchaser
acknowledges and agrees that, pursuant to the Partnership Agreement, the General
Partner has the exclusive power and discretion to make all investment decisions
on behalf of the Partnership, subject to the terms of the Partnership
Agreement.  Accordingly, the Purchaser acknowledges that neither the
General Partner nor any Affiliate thereof has rendered or will render any
investment advice or securities valuation advice to the Purchaser, and that
Purchaser is not acquiring the Partnership Interest in reliance upon, or with
the expectation of, any such advice.

     

    (f)    Purchaser’s
tax year ends on December 31 of each year.

     

    (g)    Purchaser was
not formed with, and will not be used for, a principal purpose of permitting the
Partnership to satisfy the 100 partner limitation contained in Section
1.7704-1(h)(1)(ii) of the Treasury Regulations promulgated under the
Code.

     

    (h)    Purchaser does
hereby represent and warrant to the Partnership and to the General Partner that
it and all of its beneficial owners are in compliance with all laws, statutes,
rules and regulations relating to anti-terrorism or anti-money laundering laws
of any federal, state or local government in the United States of America
applicable to such person(s) or entity(ies), including without limitation, the
USA PATRIOT Act, Pub. L, No. 107-56 (October 26, 2001), Executive Order No.
13224, 66 Fed. Reg. 49079 (Sept. 23, 2001) and all other similar requirements
contained in the rules and regulations of the Office of Foreign Asset Control
(“OFAC”), the Department of Treasury and in any enabling legislation or other
Executive Orders in respect thereof.  Purchaser further represents and
warrants to the Partnership and the General Partner that neither it nor any of
its beneficial owners is listed on the Specially Designated Nationals and
Blocked Persons List maintained by OFAC and/or on any other lists of terrorists
or terrorist organizations maintained and made publicly available by any
governmental department, agency, or other entity.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (i)    Purchaser is
eligible to acquire and hold an interest in federal oil and gas leases and is in
compliance with the certification requirements under 43 CFR Parts 12 and 18 to
the extent applicable to it.

     

    (j)    Purchaser has
not relied on any information provided by the Partnership or the General Partner
in making its investment decision other than information contained in the
informational memorandum of the Partnership dated February 20, 2006, in the
estimate of the reserves, future production and income attributable to certain
leasehold and royalty interests of the Partnership as of March 31, 2008 prepared
by Ryder Scott Company or in communications sent to all of the Partnership’s
limited partners as part of the Partnership’s normal reporting
practices.

     

    ARTICLE
V

    ADDITIONAL
AGREEMENTS

     

    5.1           Consent and Waiver regarding
Transfer of Partnership Interest.  The General Partner hereby
(a) consents in all respects to the sale and transfer of the Partnership
Interest by Seller to Purchaser under this Agreement, (ii) waives the
requirement regarding the delivery of legal opinions as set forth in Section
8.2(a) of the Partnership Agreement, (iii) deems this Agreement to satisfy all
other applicable conditions and requirements set forth in Section 8.2, (iv)
consents to the withdrawal of Seller as a limited partner of the Partnership,
and (v) consents to the admission of Purchaser as a Limited Partner with a 51⁄3%
Percentage Interest in the Partnership.

     

    5.2           Sales and Transfer
Taxes.  Seller shall pay all sales, use and transfer taxes, if
any, arising from or related to the sale and transfer of the Partnership
Interest.

     

    5.3           Expenses.  Each
party hereto shall bear its own expenses incurred in connection with the
negotiation, preparation, execution and performance of this
Agreement.

     

    5.4           Further
Assurances.  Seller agrees, at the request of Purchaser and
without any additional consideration, hereby agrees to do, make, execute,
acknowledge and deliver all such other instruments of conveyance, assignment,
transfer and consent as Purchaser may reasonably require to document the
transfer of the Partnership Interest as contemplated by this
Agreement.

     

    ARTICLE
VI

    SURVIVAL
OF REPRESENTATIONS AND WARRANTIES

     

    6.1           Survival.  All
representations and warranties made by Seller or Purchaser in this Agreement
shall be continuing and shall survive the Closing for a period of 12 months
after the Closing Date, notwithstanding any investigation at any time made by or
on behalf of Purchaser or Seller, as the case may be, except that the
representations of Seller set forth in Section 3.2 shall survive
indefinitely.  Such representations and warranties shall thereafter
terminate and be of no further force or effect; provided that there shall be no
limitation period in the case of actual fraud.  All other agreements
and undertakings in this Agreement that by their terms are to be performed in
whole or in part, or which prohibit actions, subsequent to the Closing, shall
survive the Closing in accordance with their terms.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ARTICLE
VII

    GENERAL

     

    7.1           Notices.  All
notices or requests or other communication required or permitted hereunder shall
be marked “PERSONAL AND CONFIDENTIAL” and shall be delivered in writing as
follows:

     

    If to
Purchaser:

    

    PRC HHEP
II, LP

    Suite 2200 South Tower

    800 N.
Shoreline Blvd.

    Corpus
Christi, TX  78401

    Telefax:  361-
888-9342

    Attn:  Phillip
M. Plant

    

    If to
Seller:

    

    Petro
Resources Corporation

    777 Post
Oak Blvd.

    Suite
910

    Houston,
Texas 77056

    Telefax:  (832)
369-6992

    Attn:  Wayne P.
Hall

    

    If to the
General Partner:

    

    HHEP
GP-II, L.P.

    4605 Post
Oak Place, Suite 100

    Houston,
Texas  77027

    Telefax:  713-333-0976

    Attn:  Brad
Bynum

    

    All
notices or requests or other communications so addressed and dispatched by
overnight courier shall be effective 24 hours after the time of delivery to the
courier.  If so addressed but otherwise dispatched or telefaxed, they
shall be effective when received.  The address of any party for such
notice, request or other communication may be changed by giving notice to the
other parties at any time.

     

    7.2           Counterparts.  This
Agreement may be executed in one or more counterparts, all of which taken
together shall constitute one and the same instrument.

     

    7.3           Miscellaneous.

     

    (a)    This Agreement
constitutes the entire understanding between the parties with respect to the
subject matter hereof and may not be amended or modified in any respect or to
any extent whatsoever, except by an instrument in writing, executed by each of
the parties hereto.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b)   This Agreement shall not
be assignable by any Party without the prior written consent of each of the
other parties hereto.

     

    (c)    This Agreement
shall inure to the benefit and be binding upon the parties hereto and their
respective heirs, executors, successors and permitted assigns.  The
Partnership shall be a third party beneficiary of the provisions of this
Agreement that inure to the benefit of the Partnership.

     

    (d)    In the event
that any of the provisions contained herein shall be deemed invalid or
unenforceable, then the remaining provisions shall be construed as if such
invalid or unenforceable provisions were not contained herein.

     

    (e)    THIS AGREEMENT
SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
TEXAS, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PROVISIONS.

     

    (f)    SELLER AND
PURCHASER HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY IN ANY LITIGATION RELATING
TO THIS AGREEMENT.

     

    (g)   Unless otherwise
specifically provided herein, time is of the essence of this Agreement and of
each of its provisions.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

    
    

     

     

    
      	 	
              SELLER:

               

            
	 	
              PETRO
      RESOURCES CORPORATION

               

            
	 	By:       /s/  Wayne
      P. Hall
	 	
              Name: Wayne P.
      Hall

              Title:   
      Chief Executive Officer

               

               

            
	 	
              PURCHASER:

               

            
	 	
              PRC
      HHEP II, LP

               

            
	 	
              By:  PRC
      HHEP-GP, LLC, its general partner

               

            
	 	By:        
      /s/ Philip M. Plant
	 	
              Name:  Phillip
      M. Plant

              Title:  
       President

               

               

            
	 	
              GENERAL
      PARTNER:

               

            
	 	
              HHEP
      GP-II, L.P.

               

            
	 	
              By:  Hall-Houston
      Exploration Partners, L.L.C., its general partner

               

            
	 	By:        
      /s/ Charles Bradley Bynum
	 	
              Name:  Charles
      Bradley Bynum

              Title:    Vice
      President and

               Chief
      Financial Officer

            

    

     

     

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

     

    
      

      September
29, 2008

      

      Mr.
Phillip M. Plant

      PRC HHEP
II, LP

      800 N.
Shoreline Blvd.

      Suite
2200 South Tower

      Corpus
Christi, TX  78401

      

      
        	
                Re:

              	
                Partnership
      Interest Purchase Agreement (the “Purchase Agreement”) by and among Petro
      Resources Corporation (“Seller”), PRC HHEP II, LP (“Purchaser”) and HHEP
      GP II, L.P. (the “General Partner”)

              

      

      

      
        	
                 
      

              	
                Dear
      Mr. Plant:

              

      

      

      Reference
is hereby made to the Purchase Agreement for all purposes.  Any
capitalized term used herein that is not defined herein shall have the meaning
attributed to it in the Purchase Agreement.

       

      As
additional consideration for Purchaser’s execution and delivery of the Purchase
Agreement, Seller hereby agrees that, if the General Partner makes one or more
capital calls with respect to the Partnership Interest in an amount in excess of
$1,353,000.00, Seller shall pay Purchaser the amount of such excess by wire
transfer in immediately available funds within 24 hours of Purchaser’s notice to
Seller of such capital call; provided that Seller’s total liability under this
letter agreement shall not exceed $754,255.94 in the aggregate.  The
parties to this letter agreement agree that to the extent Seller pays Purchaser
any amounts pursuant to this letter agreement, such payments shall be treated as
an adjustment to the Purchase Price.

       

      This
letter agreement shall be governed by the laws of the State of Texas without
giving effect to any conflict of law provisions.

       

      Each
party to this letter agreement shall execute such further documents as may be
necessary to effectuate the transactions contemplated hereby on terms reasonably
satisfactory to the parties.

       

      

       

      

       

      [Remainder
of page intentionally left blank.]

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        Mr.
Phillip M. Plant

        September
29, 2008

        Page
2

      

       

      Please
indicate your agreement to the foregoing by countersigning this letter in the
space provided below.

       

       

      

      
        	Sincerely,
	 
	
                PETRO
      RESOURCES CORPORATION

              
	 
      
	 
      
	
                By:    /s/
      Wayne P. Hall                                            
      

                Name:  Wayne
      P. Hall

                Title:    Chief
      Executive Officer

              

      

      

      

      

      

      

      AGREED TO
AND ACCEPTED

      THIS 29th
DAY OF September, 2008:

      

      
        	
                PRC
      HHEP II, LP

              
	
                 

                By:           PRC
      HHEP-GP, LLC, its general partner

                 

                By:       
      /s/
      Phillip M. Plant

                Name:  Phillip M.
      Plant

                Title:  Presidentex10_1.htm

    
      

    

    Exhibit 10.1

    
       

      THIS
        EMPLOYMENT AGREEMENT (THE “AGREEMENT”) is effective the 1st
        day of
        November, 2008, by and between ePlus, inc. a Delaware corporation (the
“Company”) and Kleyton Parkhurst (the “Executive”).

      

      RECITAL

      

      The
        Executive is employed as Senior Vice President and Assistant Secretary and
        the
        parties have negotiated this Agreement in consideration of the Executive’s
        valuable services and expertise.

      

      NOW
        THEREFORE, in consideration of the mutual promises and covenant herein
        contained, the parties do hereby agree as follows:

      

      1.  EFFECTIVE
        DATE.  This agreement shall be effective November 1,
        2008.

      

      2.  DEFINITIONS.  As
        used herein, the following terms shall have the following meanings:

      

      
        	
                 
                  

              	
                (a)

              	
                “Incapacity”
                  shall mean the Executive’s physical or mental inability to perform his
                  duties under this Agreement, even with reasonable accommodation,
                  for more
                  than twelve (12) weeks, whether or not consecutive, in any twelve-month
                  period.

              

      

      

      
        	
                 
                  

              	
                (b)

              	
                “Employment
                  Term” shall be the period from November 1, 2008 through and including
                  October 31, 2009.

              

      

      

      
        	
                 
                  

              	
                (c)

              	
                “Expiration
                  Date” means the date that the Employment Term (as it may have been
                  extended) expires.

              

      

      

      
        	
                 
                  

              	
                (d)

              	
                “Good
                  Cause” means that the Compensation Committee of the Company’s Board of
                  Directors (the “Board”) in good faith determines that the
                  Executive:

              

      

      

      
        	
                 
                  

              	
                i.

              	
                Failed
                  to satisfactorily perform his duties to the Company and such failure
                  was
                  not cured within 30 days of the Company providing Executive with
                  notice of
                  such failure; or

              

      

      
        	
                 
                  

              	
                ii.

              	
                Failed
                  to observe a material policy of the Company that was applicable
                  to the
                  Executive and such failure was not cured within 30 days of the
                  Company
                  providing Executive with notice of such failure;
                  or

              

      

      
        	
                 
                  

              	
                iii.

              	
                Acted
                  or failed to act in a manner that constitutes gross misconduct,
                  embezzlement, misappropriation of corporate assets, fraud or negligent
                  or
                  willful violations of any laws with which the Company is required
                  to
                  comply; or

              

      

      
        	
                 
                  

              	
                iv.

              	
                Was
                  convicted of or entered a plea of “guilty” or “no contest” to a
                  felony;

              

      

      
        	
                 
                  

              	
                vi.

              	
                Refused
                  or failed to comply with lawful and reasonable instructions of
                  the Board
                  and such refusal or failure was not cured within 30 days of the
                  Company
                  providing Executive with notice of such refusal or failure;
                  or

              

      

      
        
           
            

        

        
          1

          
            

          

        

        
           
            

        

      

      
        	
                 
                  

              	
                vii.

              	
                Any
                  other material breach of this Agreement or the duty of
                  loyalty.

              

      

      

      

      
        	
                 
                  

              	
                (e)

              	
                “Good
                  Reason” shall mean that within thirty days prior to the Executive
                  providing the notice to the Company required under Section 6.b.ii
                  of this
                  Agreement that any of the following has
                  occurred:

              

      

      

      
        	
                 
                  

              	
                i.

              	
                a
                  material change in the scope of the Executive’s assigned duties and
                  responsibilities or the assignment of duties or responsibilities
                  that are
                  inconsistent with the Executive’s level of position;
                  or

              

      

      

      
        	
                 
                  

              	
                ii.

              	
                a
                  reduction by the Company in the Executive’s base salary as set forth
                  herein as may be increased from time to time or a reduction by
                  the Company
                  in the Executive’s or incentive compensation;
                  or

              

      

      

      
        	
                 
                  

              	
                iii.

              	
                the
                  Company’s requirement that the Executive be based anywhere outside of a
                  35
                  miles radius from the Company’s offices in Herndon, Virginia;
                  or

              

      

      

      
        	
                 
                  

              	
                iv.

              	
                the
                  failure by the Company to continue to provide the Executive with
                  benefits
                  substantially similar to those specified in Section 5 of this
                  Agreement.

              

      

      

      
        	
                 
                  

              	
                v.

              	
                a
                  termination of employment by the Executive for any reason during
                  the
                  90-day period immediately following a Change of Control as “Change of
                  Control” is defined in the 2008 Employee Long-Term Incentive
                  Plan.

              

      

      

      
        	
                 
                  

              	
                (f)

              	
                “Termination
                  Date” shall mean the date Executive’s termination is effective, as
                  described in the respective subparts of Section
                  6.

              

      

       

      3.  EMPLOYMENT

       

      The
        Company and Executive hereby agree to employ the Executive as set forth herein
        until Executive’s employment terminates pursuant to Section 6
        below.

      

      4.  POSITION,
        DUTIES AND RESPONSIBILITIES.  During the Employment Term, the
        Executive shall:

      

      
        	
                 
                  

              	
                a.

              	
                serve
                  as the Senior Vice President and Assistant Secretary. The Executive
                  shall
                  be responsible for, but not limited to, the following
                  areas:  Mergers and Acquisitions, Credit, Marketing and Treasury
                  operations  (National City relationship) for the
                  Company;

              

      

      
        	
                 
                  

              	
                b.

              	
                render
                  such other services to the Company as requested provided that such
                  services are consistent with the level of his position;
                  and

              

      

      
        
           
            

        

        
          2

          
            

          

        

        
           
            

        

      

      
        	
                 
                  

              	
                c.

              	
                devote
                  his full business time, attention, skill and energy to the business
                  of the
                  Company and shall not engage or prepare to engage in any other
                  business
                  activity, whether or not such business activity is pursued for
                  gain,
                  profit or other economic or financial advantage.  With prior
                  written approval from the Company, Executive may engage in appropriate
                  civic, charitable, or educational activities provided that such
                  activities
                  do not interfere or conflict with the Executive’s responsibilities or the
                  Company’s interests.  Nothing in this Agreement shall preclude
                  Executive from acquiring or managing any passive investment he
                  has in
                  publicly traded equity securities in companies that are not in
                  the same
                  line of business as the Company.

              

      

      

      5.  COMPENSATION,
        COMPENSATION PLANS AND BENEFITS.  During the Employment Term, the
        Executive shall be compensated as follows:

       

      
        	
                 
                  

              	
                a.

              	
                Executive
                  shall receive a base annual salary of two hundred and fifty thousand
                  dollars ($250,000), which may be increased from time to
                  time.

              

      

      
        	
                 
                  

              	
                b.

              	
                Based
                  on his MBOs and overall company performance he shall be eligible
                  to be
                  considered for an annual bonus of up to 50% of his base salary
                  then in
                  effect under the terms and conditions as outlined in the Executive
                  Incentive Plan.

              

      

      
        	
                 
                  

              	
                c.

              	
                He
                  shall be entitled to participate in and receive other benefits
                  offered by
                  the Company to all employees, which may include, but are not limited
                  to,
                  vacation, sick, holiday and other leave times, and benefits under
                  any
                  life, health, accident, disability, medical, and dental insurance
                  plans.

              

      

      
        	
                 
                  

              	
                d.

              	
                He
                  shall be entitled to be reimbursed for the reasonable and necessary
                  out-of-pocket expenses, including entertainment, travel and similar
                  items
                  and all expenses necessary to maintain his professional, industry
                  association memberships incurred by him in performing his duties,
                  in
                  accordance with the Company’s expense reimbursement policies in place from
                  time to time.

              

      

      
        	
                 
                  

              	
                e.

              	
                In
                  the event Executive’s employment with Company terminates for any reason,
                  any payments and benefits due the Executive under the Company’s employee
                  benefit plans and programs, including any Long-Term Incentive Plan,
                  shall
                  be determined in accordance with the terms of such benefit plans
                  and
                  programs, and shall be in addition to any other payments or benefits
                  herein.

              

      

      
        
           
            

        

        
          3

          
            

          

        

        
           
            

        

      

      6.  TERMINATION
        OF EMPLOYMENT

       

      
        	
                 
                  

              	
                a.

              	
                Termination
                  by the Company.

              

      

      

      
        	
                 
                  

              	
                i.

              	
                During
                  the Employment Term, the Company may terminate the Executive’s employment
                  for Good Cause.  Termination by the Company for Good Cause shall
                  be effective on the date the Company gives notice of such termination
                  to
                  the Executive.

              

      

      

      
        	
                 
                  

              	
                ii.

              	
                During
                  the Employment Term, the Company may terminate the Executive’s employment
                  at any time without Good Cause upon 30-days notice to the Executive
                  or 30
                  days pay in lieu of such notice.  Termination is effective 30
                  days after the date the written notice is provided to the Executive.
                  The
                  Company may, in its sole discretion, place the Executive on paid
                  administrative leave as of any date prior to the end of the 30-day
                  notice
                  period and require that the Executive no longer be present on Company
                  premises.  During any period of administrative leave, the
                  Executive is not authorized to act or speak as a representative
                  of the
                  Company.

              

      

      

      
        	
                 
                  

              	
                b.

              	
                Termination
                  by Executive.

              

      

      

      
        	
                 
                  

              	
                i.

              	
                During
                  the Employment Term, the Executive may voluntarily terminate his
                  employment for any reason with the Company upon 30 days prior notice.
                  Termination is effective 30 days after the date the notice is provided
                  to
                  the Company.  The Company may, in its sole discretion, place the
                  Executive on paid administrative leave as of any date prior to
                  the end of
                  the 30-day notice period and require that the Executive no longer
                  be
                  present on Company premises.  During any period of
                  administrative leave, the Executive is not authorized to act or
                  speak as a
                  representative of the Company.

              

      

      

      
        	
                 
                  

              	
                ii.

              	
                During
                  the Employment Term, the Executive may terminate his employment
                  for Good
                  Reason as defined in Section 2(e) only if the  Executive has
                  provided the Board with 10 business days notice of his intent to
                  terminate
                  his employment for Good Reason and the Company fails to cure the
                  Good
                  Reason within 10 business days after receiving Executive’s written
                  notice.  Termination for Good Reason will be effective on the
                  11th
                  day after the Company receives Executive’s written notice and fails to
                  cure the Good Reason identified in Executive’s
                  notice.

              

      

      
        
           
            

        

        
          4

          
            

          

        

        
           
            

        

      

      
        	
                 
                  

              	
                c.

              	
                Termination
                  by Reason of Death or Incapacity.

              

      

      

      Executive’s
        employment with the Company shall deemed to have been terminated effective
        upon
        the date of Executive’s death, or the date upon which the Company provides
        Executive with notice of Incapacity.

      

      
        	
                 
                  

              	
                d.

              	
                At-will
                  Termination

              

      

      

      If
        the
        Employment Term ends without the parties entering into a new employment
        agreement or extending the Employment Term of this Agreement, the Executive’s
        employment with the Company shall continue on an at will basis and either
        the
        Company or the Executive may terminate his employment at any time for any
        reason
        or no reason upon 30 days notice.  The Company may choose to end the
        employment relationship at any time during any such notice period, provided
        that
        the Company pays the Executive for the balance of such notice
        period.

       

      7.  EFFECT
        OF TERMINATION.

       

      
        	
                 
                  

              	
                a.

              	
                If
                  the Executive’s employment ends at anytime (during or after the Employment
                  Term) for any reason, the Company shall pay the Executive his then
                  current
                  base salary and provide the Executive his then current benefits
                  (as
                  provided in Section 5) through the Termination
                  Date.

              

      

      

      
        	
                 
                  

              	
                b.

              	
                If
                  during the Employment Term the Executive’s employment terminates by reason
                  of death as described in Section 6(c), the Company shall also pay
                  the
                  Executive’s estate any bonus as determined by the Compensation Committee
                  in accordance with the Company’s Executive Incentive
                  Plan.

              

      

      

      
        	
                 
                  

              	
                c.

              	
                Provided
                  that after the Termination Date the Executive (i) signs in the
                  form
                  provided by the Company a release of any claims Executive may have
                  against
                  the Company or its then current or former officers, directors,
                  or
                  employees and (ii) certifies that the Executive has complied with
                  Sections
                  8, 9, 10  11 and 12 of this Agreement (confidentiality,
                  intellectual property, non-compete, non-solicitation, conflict
                  of interest
                  and return of property provisions),
                  then:

              

      

      

      1)  If
        during the Employment Term the Executive’s employment is terminated by reason of
        Incapacity as described in Section 6(c), the Company shall also pay the
        Executive any bonus as determined by the Compensation Committee in accordance
        with the Company’s Executive Incentive Plan, and an additional amount equal to
        the greater of (a) six months of Executive’s base salary or (b) the balance of
        his salary through the end of the Employment Term.

      

      2)  If,
        during the Employment Term, either the Company terminates Executive’s employment
        without Good Cause as described in Section 6(a) or Executive terminates his
        employment for Good Reason, as described in Section 6(b)(ii), then (a) the
        Company shall also pay Executive an amount equal to six months of the
        Executive’s base salary; and (b) provided that the Executive remains eligible
        for and timely elects to continue his and any eligible dependants health
        benefits under COBRA, the Company shall also pay to the insurer the amount
        necessary for the Executive to continue medical and dental insurance for
        himself
        and his dependants through COBRA for a period of not longer than six months
        after the Termination Date.  Should the Executive or any of his
        dependants become covered under another employer’s health benefit plan before
        the end of the six month period, the Company will have no obligation to continue
        making such additional payments to the insurer.  The Executive shall
        not be obligated in any way to mitigate the Company’s obligations to him under
        this Section and any amounts earned by the Executive subsequent to his
        termination shall not serve as an offset to the payments due him by the Company
        under this Section.

      
        
           
            

        

        
          5

          
            

          

        

        
           
            

        

      

      3.  If
        the parties have not entered into a new employment agreement or extended
        the
        Employment Term under this Agreement and within 10 days following the end
        of the
        Employment Term either the Company or the Executive gives notice of an At-Will
        Termination as described in Section 6(d),  then (a) the Company will
        pay the Executive an additional amount equal to six months of the Executive’s
        base salary and (b) provided that the Executive remains eligible for and
        timely
        elects to continue his and any eligible dependants health benefits under
        COBRA,
        the Company shall also pay to the insurer the amount necessary for the Executive
        to continue medical and dental insurance for himself and his dependants through
        COBRA for a period of not longer than six months after the Termination
        Date.  Should the Executive or any of his dependants become covered
        under another employer’s health benefit plan before the end of the six month
        period, the Company will have no obligation to continue making such additional
        payments to the insurer.  The Executive shall not be obligated in any
        way to mitigate the Company’s obligations to him under this Section and any
        amounts earned by the Executive subsequent to his termination shall not serve
        as
        an offset to the payments due him by the Company under this
        Section.

      

      4.  Any
        payments due under Section 7(c)(1)(a) or (b), 7(c)(2)(a)
        or 7(c)(3)(a)
        of the Agreement shall be made in a lump sum within 30 days following the
        termination of employment.

       

      8.  CONFIDENTIALITY.

       

      During
        the course of employment, Executive has had and shall continue to have access
        to
        the Company’s Confidential Information (as defined below).  Executive
        shall not disclose or use at any time, either during his employment or after
        his
        employment ends for any reason, any Confidential Information (as defined
        below)
        of the Company, whether or not patentable, which Executive learns as a result
        of
        his involvement with the Company, whether or not he developed such
        information.  “Involvement with the Company” for purposes of this
        Agreement shall mean holding a position as an employee, officer, or director
        with either the Company or any of its affiliates (collectively, the
“Companies”).  “Confidential Information” includes without limitation
        information regarding either the Companies’, or their successors’, parents’,
        affiliates’, customers’ or business partners’:

      
        
           
            

        

        
          6

          
            

          

        

        
           
            

        

      

      
        	
                •

              	
                “Trade
                  Secrets” or proprietary
                  information;

              

      

      
        	
                •

              	
                strategic
                  sourcing information or analysis;

              

      

      
        	
                •

              	
                patents,
                  patent applications, developmental or experimental work, formulas,
                  test
                  data, prototypes, models, and product
                  specifications;

              

      

      
        	
                •

              	
                accounting
                  and financial information;

              

      

      
        	
                •

              	
                financial
                  projections and pro forma financial
                  information;

              

      

      
        	
                •

              	
                sales
                  and marketing strategies, plans and
                  programs

              

      

      
        	
                •

              	
                product
                  development and product testing
                  information;

              

      

      
        	
                •

              	
                product
                  sales and inventory information;

              

      

      
        	
                •

              	
                personnel
                  information, such as employees’ and consultants’ benefits, perquisites,
                  salaries, stock options, compensation, formulas or
                  bonuses;

              

      

      
        	
                •

              	
                organizational
                  structure and reporting
                  relationships;

              

      

      
        	
                •

              	
                business
                  plans;

              

      

      
        	
                •

              	
                names,
                  addresses, phone numbers of
                  customers;

              

      

      
        	
                •

              	
                contracts,
                  including contracts with clients, suppliers, independent contractors
                  or
                  employees; business plans and
                  forecasts;

              

      

      
        	
                •

              	
                existing
                  and prospective projects or business opportunities;
                  and

              

      

      
        	
                •

              	
                passwords
                  and other physical and information security protocols and
                  information.

              

      

      

      “Trade
        Secrets” includes any information that derives independent economic value,
        actually and potentially, from not being generally known to, and is not readily
        ascertainable by proper means by, other persons who can obtain economic value
        from their disclosure or use and that are the subject of efforts that are
        reasonable under the circumstances to maintain their
        secrecy.  Information that is or later becomes publicly available in a
        manner wholly unrelated to any breach of this Agreement by Executive will
        not be
        considered Confidential Information as of the date it enters the public
        domain.  If Executive is uncertain whether something is Confidential
        Information, Executive should treat it as Confidential Information until
        he
        receives clarification from the person to whom he reports that it is not
        Confidential Information.  Confidential Information shall remain at
        all times the property of the Company.  Executive may use or disclose
        Confidential Information only:

      

      (a)      when
        he is employed by the Company, as authorized and necessary in performing
        the
        responsibilities of his position, provided that he has taken reasonable steps
        to
        ensure that the information remains confidential; or

      (b)      with
        prior written consent of the CEO; or

      (c)      in
        a legal proceeding between Executive and the Company to establish the rights
        of
        either party under this Agreement, provided that Executive stipulates to
        a
        protective order to prevent any unnecessary use or disclosure; or

      (d)      where
        such disclosure is required by law, provided that Executive has complied
        with
        the following procedures to ensure that the Companies have an adequate
        opportunity to protect their legal interests in preventing
        disclosure.  Upon receipt of a subpoena or any other compulsory legal
        process (“Compulsory Process”) that could possibly require disclosure of
        Confidential Information, Executive shall provide within forty-eight (48)
        hours
        of receiving it a copy of the Compulsory Process and complete information
        regarding the circumstances under which he received it to the General Counsel
        by
        hand delivery or by facsimile provided that Executive confirms with the General
        Counsel by phone conversation that the General Counsel received the
        facsimile.  Executive shall not make any disclosure until the latest
        possible date for making such disclosure in accordance with the Compulsory
        Process (“Latest Possible Date”).  If one of the Companies seeks to
        prevent disclosure in accordance with the applicable legal procedures, and
        provides Executive with notice before the Latest Possible Date that it has
        initiated such procedures, Executive shall not make disclosures of any
        Confidential Information that is the subject of such procedures, until such
        objections are withdrawn, or the appropriate tribunal either makes a final
        determination that the objections are invalid or orders Executive to make
        the
        disclosure.

      
        
           
            

        

        
          7

          
            

          

        

        
           
            

        

      

      Executive
        hereby acknowledges that any breach of this Section 8 would cause the Company
        irreparable harm.

      

      9.  INTELLECTUAL
        PROPERTY

      

      Executive  acknowledges
        that all inventions, innovations, improvements, developments, methods, designs,
        analyses, drawings, reports, original works of authorship, copyrights and
        all
        similar or related information (whether or not patentable) which relate to
        the
        Company’s actual or anticipated business, research and development or existing
        or future products or services and which are conceived, developed or made
        by
        Executive while employed by the Company (“Intellectual Property”) belong to the
        Company.  Executive agrees that both during and after his employment
        with the Company that he will sign any documents or provide any information
        necessary for the Company to protect its rights to such Intellectual
        Property.  If Executive is unavailable to sign any document that is
        necessary for the Company to protect its rights to such Intellectual Property,
        Executive hereby authorizes the Company to sign on his behalf.

       

      10.  NON-COMPETITION
        and NON-SOLICITATION.

      

      During
        Executive’s employment and for a period of one year following the date on which
        his employment ends for any reason, (the “Restricted Period”), the Executive
        agrees to the following

      

      (a)           Non-Competition

      

      Executive
        shall not, directly or indirectly, individually or as part of or on behalf
        of
        any other person, company, employer or other entity, except with prior written
        approval of the Company’s CEO, (i) own, (ii) manage, (iii) operate, (iv) advise,
        (v) be employed by (vi) perform services for, (vii) consult with or (viii)
        control any Competing Business.  “Competing Business”
shall mean a business
        that is selling products or services similar to those
        products or services that any of the “Covered Entities” is selling as of the
        date the Executive’s employment ends and continues to offer for sale during the
        Restricted Period within any city, town or county in which, as of the date
        Executive’s employment ends, any Covered Entity is actively marketing or has
        made a significant investment in time and money prior to the date the
        Executive’s employment ends to begin marketing its products or services
        beginning within sixty (60) days after the date the Executive’s employment
        ends.   “Covered Entities”
include the Company
        and any affiliated entities in which Executive is actively
        engaged as an officer, director or employee or about which Executive has
        received Confidential Information as a result of his Involvement with the
        Company.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (b)           Non-Solicitation

      

      Executive
        shall not, directly or indirectly, individually or as part of or on behalf
        of
        any other person, company, employer or other entity, except with prior written
        approval of the Company’s CEO:

      

      
        	
                 
                  

              	
                (i)

              	
                hire
                  or attempt to hire a Covered Employee, encourage another to hire
                  a Covered
                  Employee, or otherwise seek to adversely influence or alter such
                  Covered
                  Employee’s relationship with the Company.  A “Covered Employee”
                  shall mean any person who either is employed by the Company or
                  has been
                  employed by the Company within the preceding sixty (60)
                  days;

              

      

      

      
        	
                 
                  

              	
                (ii)

              	
                encourage
                  or attempt to persuade a Customer to purchase other than from the
                  Company
                  products or services similar to those that the Company was selling
                  as of
                  the date Executive’s employment ends and is continuing to offer for sale.
                  A “Customer” shall mean any person or entity that has purchased products
                  or services from the Company within six (6) months prior to the
                  date
                  Executive’s employment ends; and/or

              

      

      

      
        	
                 
                  

              	
                (iii)

              	
                encourage,
                  or attempt to persuade any person or entity that the Company is
                  using as a
                  consultant or vendor as of the date Executive’s employment ends to
                  terminate or modify such business relationship with the Company
                  in a
                  manner adverse to the Company.

              

      

       

      (c)           Nature
        of Restrictions

      

      Executive
        acknowledges that as a result of his employment as Senior Vice President
        and
        Assistant Secretary of the Company, he has held and will continue to hold
        a
        position of utmost trust in which Executive has come to know and will continue
        to come to know the Company’s employees, Customers and Confidential
        Information.  Executive agrees that the provisions of this entire
        Section 10 are necessary to protect the Company’s legitimate business
        interests.  Executive warrants that these provisions shall not
        unreasonably interfere in his ability to earn a living or to pursue his
        occupation after his employment ends for any reason.  Executive agrees
        that upon beginning any new employment or business during the Restrictive
        Period, he will promptly inform the Company of the name and address of your
        his
        new employer or business and provide such new employer or business with a
        copy
        of this Agreement and copy the Company on the letter or email transmitting
        the
        Agreement to the appropriate person in such new employer or
        business.

      
        
           
            

        

        
          9

          
            

          

        

        
           
            

        

      

      11.  CONFLICT
        OF INTEREST

      

      During
        his employment, Executive agrees to have undivided loyalty to the
        Company.  This means that Executive shall avoid any situation that
        involves or has the potential to appear to involve a conflict of interest,
        such
        as participating in a business transaction that personally benefits Executive
        or
        a relative based on information or relationships developed on the job, failing
        to disclose that someone who is doing or seeking to do business with or work
        for
        the Companies is a relative or close personal associate, or receiving direct
        or
        indirect compensation from a client or vendor.

      

      12.  RETURN
        OF PROPERTY

      

      On
        the
        date Executive’s  employment ends for any reason, or at any time
        during his employment, on the request or direction of the Company, Executive
        will immediately deliver to the Company any or all equipment, property,
        material, Confidential Information, Intellectual Property or copies thereof
        which are owned by the Companies and are in Executive’s possession or
        control.  This includes documents or other information prepared by
        Executive, on his behalf or provided to him in connection with his duties
        while
        employed by the Company, regardless of the form in which such document or
        information are maintained or stored, including computer, typed, handwritten,
        electronic, audio, video, micro-fiche, imaged, drawn or any other means of
        recording or storing documents or other information.  Executive hereby
        warrants that he will not retain in any form such documents, Confidential
        Information, Intellectual Property or other information or copies
        thereof.  Executive may retain a copy of this Agreement and any other
        document or information describing any rights he may have after the Termination
        Date.

      

      13.  COOPERATION
        WITH LEGAL PROCEEDINGS.

       

      Executive
        agrees to reasonably cooperate with the Companies in the defense or prosecution
        of any claims or actions now in existence or which may be brought in the
        future
        against or on behalf of any of the Companies, which relate to events or
        occurrences that transpired while Executive was employed by any of the
        Companies.  Executive’s reasonable cooperation in connection with such
        claims or actions shall include, but not be limited to, being available to
        meet
        with counsel to prepare for discovery or trial and to act as a witness on
        behalf
        of any of the Companies.  Executive also agrees to reasonably
        cooperate with any of the Companies in connection with any investigation
        or
        review of any federal, state, or local regulatory authority as any such
        investigation or review relates to events or occurrences that transpired
        while
        Executive was employed by any of the Companies.  Executive understands
        that in any legal action, investigation, or review covered by this paragraph
        the
        Company expects Executive to provide only accurate and truthful information
        or
        testimony. The Company agrees to reimburse the Executive for any costs he
        incurs
        in cooperation pursuant to this Section, including but not limited to travel
        expenses and attorneys’ fees and costs. Nothing in this Section shall limit any
        indemnification rights Executive may have on the effective date of this
        Agreement.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      14.  REMEDY

      

      (a)           Executive
        acknowledges that his breach of the obligations contained in Sections 8,
        9, 10,
        11 and 12 of this Agreement would cause the Company irreparable harm that
        could
        not be reasonably or adequately be compensated by damages in an action at
        law.  If Executive breaches or threatens to breach any of the
        provisions contained in Sections 8, 9, 10, 11 and 12 of this Agreement, the
        Company shall be entitled to an injunction, without bond, restraining him
        from
        committing such breach.  The Company’s right to exercise its option to
        obtain an injunction shall not limit its right to any other remedies, including
        damages.

      

      (b)           Any
        action relating to or arising from this Agreement shall be brought exclusively
        in a court of competent jurisdiction in the Commonwealth of Virginia, and
        Executive hereby consents to venue and personal jurisdiction in any such
        court
        in the Commonwealth of Virginia.

      

      (c)           Executive
        expressly waives any right to a trial by jury for any action relating to
        or
        arising from this Agreement.

      

      15.  SUCCESSORS;
        BINDING AGREEMENT.

      

      
        	
                 
                  

              	
                a.

              	
                This
                  Agreement shall be binding upon, and inure to the benefit of the
                  parties
                  hereto and their heirs, successors and
                  assigns.

              

      

      

      
        	
                 
                  

              	
                b.

              	
                The
                  Company shall require any successor to all or substantially all
                  of the
                  business or assets of the Company expressly to assume and agree
                  to perform
                  this Agreement in the same manner and to the same extent that the
                  Company
                  would be required to perform if no such succession had taken
                  place.

              

      

      

      16.   NOTICES.

      

      For
        the
        purpose of this Agreement, notices and all other communications provided
        herein
        shall be in writing and shall be deemed to have been duly given when delivered
        in person or mailed by United States registered or certified mail, return
        receipt requested, postage prepaid, addressed as follows:

      

      
        
          	
                  IF
                    TO THE EXECUTIVE:

                	
                  IF
                    TO THE COMPANY;

                
	
                  Kleyton
                    Parkhurst

                	
                  ePlus,
                    inc.

                
	
                  13595
                    Dulles Technology Drive

                	
                  13595
                    Dulles Technology Drive

                
	
                  Herndon,
                    VA  20171

                	
                  Herndon,
                    VA 20171

                

        

      

      
        
           
            

        

        
          11

          
            

          

        

        
           
            

        

      

      17.              GOVERNING
        LAW.  All issues and questions concerning the construction, validity,
        enforcement and interpretation of this Agreement shall be governed by, and
        construed in accordance with, the laws of the State of Delaware, without
        giving
        effect to any choice of law or conflict of law rules or provisions (whether
        of
        the State of Delaware or any other jurisdiction) that would cause the
        application of the laws of any jurisdiction other than the State of
        Delaware.

       

      18.              SEVERABILITY.  The
        provisions of this Agreement are severable, and if any part of it is found
        to be
        unlawful or unenforceable, the other provisions of this Agreement shall remain
        fully valid and enforceable to the maximum extent consistent with applicable
        law.

      

      19.    
                 MISCELLANEOUS.  No
        provisions of this Agreement may be modified, waived or discharged unless
        such
        waiver, modification or discharge is agreed to in writing signed by the
        Executive and the Company.  No waiver by either party hereto at any
        time of any breach by the other party hereto of, or compliance with, any
        condition or provision of this Agreement to be performed by such other party
        shall be deemed a waiver of other provisions or conditions at the same or
        at any
        prior or subsequent time.  No agreements or representations, oral or
        otherwise, express or implied, with respect to the subject matter hereof
        have
        been made by either party which are not set forth expressly in this
        Agreement.

      

      20.          
           Code
        Section 409A.  It is the intent of this Agreement to either
        meet an exception from or to comply with the requirements of Section 409A
        of the
        Internal Revenue Code of 1986, as amended, and any rulings and regulations
        promulgated thereunder (collectively, the “Code”), and any ambiguities herein
        will be so interpreted and this agreement will be so
        administered.  References to a termination of employment in Section 7
        of this Agreement shall mean the date of a "separation from service" within
        the
        meaning of Code Section 409A(a)(2)(A)(i).  If the Executive is a
“specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) at the
        time of the Executive’s termination of employment, any nonqualified deferred
        compensation subject to Code Section 409A that would otherwise have been
        payable
        under this Agreement as a result of, and within the first six (6) months
        following, the Executive’s "separation from service" and not by reason of
        another event under Section 409A(a)(2)(A), will become payable six (6) months
        and one (1) day following the date of the Executive’s separation from service
        or, if earlier, the date of Executive’s death.  Executive is solely
        responsible for any taxes payable under Section 409A of the Code or any other
        taxes payable with respect to any severance or other post-employment payments
        or
        other payments made under this Agreement.

       

       

      
        
          12

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

     

    
      	 	ePlus
              inc.  	 	 	 	 	Executive 	 	 
	 	 	 	 	 	 	 	 	 
	 	/s/Phillip
              G. Norton 	11/03/2008	 	 	 	/s/Kleyton
              Parkhurst	10/31/08 	 
	 	Phillip
              G.
              Norton 	 Date	 	 	 	Kleyton
              Parkhurst	Date 	 

    

     

     

     

     

     

    
      
        
        

      

      
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