Document:

Exhibit 10.5

Exhibit 10.5

    OPERATING
      AGREEMENT

    

    This
      Operating Agreement (the “Agreement”), is made on April 24, 2006 and is
      effective as of May 1, 2006 (the “Effective Date”) between Quest Oil
      Corporation, a Nevada corporation, (hereinafter referred to as the “Company”)
      and Business Consulting Group Unlimited, Inc., a Nevada corporation (the
“Consultant”).

    

    WHEREAS,
      the
      Company requires the Services (as defined herein) and as set forth herein;
      

    

    WHEREAS,
      Consultant is qualified to provide the Company with the Services and is desirous
      to perform such Services for the Company; and

    

    WHEREAS,
      the
      Company wishes to induce Consultant to provide the Services and wishes to
      contract with the Consultant regarding the same and compensate Consultant in
      accordance with the terms herein;

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants hereinafter stated, it is agreed as
      follows:

    

    1. APPOINTMENT.

    

    The
      Company hereby engages Consultant and Consultant agrees to render the Services
      to the Company as a consultant upon the terms and conditions hereinafter set
      forth.

    

    2. TERM.

    

    Subject
      to Section 8(a), the term of this Consulting Agreement shall begin as of the
      Effective Date, and shall terminate 36 months thereafter (hereinafter, the
      "Term"). 

    

    3. SERVICES.

    

    a. During
      the term of this Agreement, Consultant shall provide the Company with the
      following “Services:” 

    

    1. Provide,
      on a part-time basis, financial Controller and bookkeeping services for the
      Company and its subsidiaries;

    

    2. Provide
      administrative support staff, reception, clerical and filing services;
      and

    

    3. Provide
      support and staffing to prepare the Company’s SEC filings and
      Reports.

    

    b. Consultant
      agrees to provide the Services on a timely basis via: meetings with Company
      representatives which may include other professionals; conferences calls with
      Company representatives and other professionals; and/or written correspondence
      and documentation. Consultant cannot guarantee the results on behalf of the
      Company, but shall pursue all avenues that it deems reasonable through its
      network of contacts.

    

    4. COMPENSATION. In
      connection with this Agreement, the foregoing shall be referred to as
“Compensation.” All Compensation due to be delivered and/or paid to Consultant
      pursuant to this Agreement shall be deemed completely earned, due, payable
      and
      non-assessable as of the date the Compensation is due to or vested in
      Consultant. Compensation shall consist of the following:

    

    a. US
      $14,000 cash payable on the 1st
      day of
      every month; and

    

    b. reimbursement
      of all reasonable and necessary expenses incurred by the Consultant in
      connection with the Company's business including, but not limited to offices
      supplies and expenditures, entertainment, airfare, automobile, hotel and other
      miscellaneous expenses incurred by Consultant in connection with this
      Agreement.

    

    5. REPRESENTATIONS
      AND WARRANTIES OF COMPANY.

    

      The
      Company hereby represents, warrants and agrees as follows:

      

    a. This
      Agreement has been authorized, executed and delivered by the Company and, when
      executed by the Consultant will constitute the valid and binding agreement
      of
      the Company enforceable against the Company in accordance with its terms, except
      as enforcement thereof may be limited by bankruptcy, insolvency or
      reorganization, moratorium or other similar laws relating to or affecting
      creditors’ rights generally or by general equitable principles. 

      

    b. The
      financial statements, audited and unaudited (including the notes thereto)
      provided to Consultant, (the “Financial Statements”), will present fairly the
      financial position of the Company as of the dates indicated and the results
      of
      operations and cash flows of the Company for the periods specified. Such
      Financial Statements will be prepared in conformity with generally accepted
      accounting principles applied on a consistent basis throughout the periods
      involved except as otherwise stated therein. 

    

    c. The
      Company is validly organized, existing and with active status under the laws
      the
      State of Nevada.

    

    d. The
      securities to be issued to Consultant, if any, have all been authorized for
      issuance and when issued, delivered and tendered to the Consultant by the
      Company will be validly issued, fully paid and non-assessable.

      

    e. Since
      date of the most recent of the Financial Statements, there has not been any
      (A)
      material adverse change in the business, properties, assets, rights, operations,
      condition (financial or otherwise) or prospects of the Company, (B) transaction
      that is material to the Company, except transactions in the ordinary course
      of
      business, (C) obligation that is material to the Company, direct or contingent,
      incurred by the Company, except obligations incurred in the ordinary course
      of
      business, (D) change that is material to the Company or in the common shares
      or
      outstanding indebtedness of the Company, or (E) dividend or distribution of
      any
      kind declared, paid, or made in respect of the common shares. 

    

    f. The
      Company shall be deemed to have been made a continuing representation of the
      accuracy of any and all facts, material information and data which it supplies
      to Consultant and acknowledges its awareness that Consultant will rely on such
      continuing representation in disseminating such information and otherwise
      performing its advisory functions. Consultant in the absence of notice in
      writing from the Company, will rely on the continuing accuracy of material,
      information and data supplied by the Company. Consultant represents that he
      has
      knowledge of and is experienced in providing the aforementioned
      services.

    

    6. INDEMNIFICATION. 
      The
      Company agrees to indemnify the Consultant and hold it harmless against any
      losses, claims, damages or liabilities incurred by the Consultant, in connection
      with, or relating in any manner, directly or indirectly, to the Consultant
      rendering the Services in accordance with the Agreement, unless it is determined
      by a court of competent jurisdiction that such losses, claims, damages or
      liabilities arose out of the Consultant’s breach of this Agreement, sole
      negligence, gross negligence, willful misconduct, dishonesty, fraud or violation
      of any applicable law. Additionally, the Company agrees to reimburse the
      Consultant immediately for any and all expenses, including, without limitation,
      attorney fees, incurred by the Consultant in connection with investigating,
      preparing to defend or defending, or otherwise being involved in, any lawsuits,
      claims or other proceedings arising out of or in connection with or relating
      in
      any manner, directly or indirectly, to the rendering of any Services by the
      Consultant in accordance with the Agreement (as defendant, nonparty, or in
      any
      other capacity other than as a plaintiff, including, without limitation, as
      a
      party in an interpleader action). The Company further agrees that the
      indemnification and reimbursement commitments set forth in this paragraph shall
      extend to any controlling person, strategic alliance, partner, member,
      shareholder, director, officer, employee, agent or subcontractor of the
      Consultant and their heirs, legal representatives, successors and assigns.
      The
      provisions set forth in this Section shall survive any termination of this
      Agreement.

    

    7. COMPLIANCE
      WITH SECURITIES LAWS.
      The
      Company understands that any and all compensation outlined in this Agreement
      shall be paid solely and exclusively as consideration for the aforementioned
      consulting efforts made by Consultant on behalf of the Company as an independent
      contractor. The Parties to be performing the services outlined in this Agreement
      are natural persons. Consultant has been engaged to provide the Company with
      traditional “public company” business, technical and related business services.
      Consultant’s engagement does not involve the marketing of any Company securities
      nor is Consultant being hired to raise money for the Company.

    

    8. TERMINATION.

    

    a. Termination:
      This
      Agreement may be terminated (hereinafter referred to as a “Termination”) by
      either Party as follows:

    

    b. Consultant
      may terminate this Agreement for any reason at Consultant’s sole discretion with
      90 days prior written notice to Company.

    

    c. Company
      may terminate this Agreement only for “Cause.” For purposes of this Agreement,
“Cause” for the Consultant’s termination will exist at any time after the
      occurrence of one or more of the following events:

    

    1. Any
      willful act or acts of dishonesty undertaken by the Consultant intended to
      result in substantial gain or personal enrichment of the Consultant at the
      expense of the Company;

     

    2. Any
      willful act of gross misconduct which could reasonably be expected to materially
      and demonstrably result in damage to the Company. No act, or failure to act,
      by
      the Company shall be considered “willful” if done, or omitted to be done, by
      Consultant in good faith and in the reasonable belief that Consultant’s act or
      omission was in the best interest of the Company and/or required by applicable
      law;

     

    3. Consultant
      is charged with the commission of a felony involving moral turpitude;
      or

     

    4.. Willful
      misconduct of the Consultant which is reasonably likely to result in injury
      or
      financial loss to (I) the Company or (II) to any subsidiaries of the
      Company, which injury or loss is material to the Company taken as a
      whole

     

    5. Willful
      failure of the Executive to render services to the Company or any of its
      subsidiaries in accordance with the terms of this Agreement, which failure
      amounts to a material neglect of the Consultant’s duties to the Company and does
      not result from physical illness, injury or incapacity, and which failure is
      not
      cured promptly after adequate notice of such failure and a reasonably detailed
      explanation has been presented by the Company to the
      Consultant. 

     

    9. MISCELLANEOUS 

    

    a. Modification:
      This
      Agreement sets forth the entire understanding of the Parties with respect to
      the
      subject matter hereof. This Agreement may be amended only in writing signed
      by
      both Parties.

    

    b. Notices:
      Any
      notice required or permitted to be given hereunder shall be in writing and
      shall
      be mailed or otherwise delivered in person to the Parties at the addresses
      set
      forth above.

    

    c. Waiver:
      Any
      waiver by either party of a breach of any provision of this Agreement shall
      not
      operate as or be construed to be a waiver of any other breach of that provision
      or of any breach of any other provision of this Agreement. The failure of a
      party to insist upon strict adherence to any term of this Consulting Agreement
      on one or more occasions will not be considered a waiver or deprive that party
      of the right thereafter to insist upon adherence to that term of any other
      term
      of this Consulting Agreement.

    

    d. Assignment:
      Compensation under this Agreement is assignable at the sole discretion of the
      Consultant.

    

    e. Severability:
      If any
      provision of this Agreement is invalid, illegal, or unenforceable, the balance
      of this Consulting Agreement shall remain in effect. If any provision is
      inapplicable to any person or circumstance, it shall nevertheless remain
      applicable to all other persons and circumstances. If any compensation provision
      is deemed unenforceable or illegal, then in the case of the delivery of common
      stock to the Consultant, Consultant shall be entitled to receive a cash benefit
      equal to the value of the common stock that would have been tendered had such
      a
      provision not been illegal or unenforceable.

    

    f. Arbitration:
      Any
      dispute or other disagreement arising from or out of this Agreement shall be
      submitted to arbitration under the rules of the American Arbitration Association
      and the decision of the arbiter(s) shall be enforceable in any court having
      jurisdiction thereof. Arbitration shall occur only in San Diego County, CA.
      The
      interpretation and the enforcement of this Agreement shall be governed by
      California Law as applied to residents of the State of California relating
      to
      contracts executed in and to be performed solely within the State of California.
      

    

    g. Governing
      Law:
      The
      subject matter of this Agreement shall be governed by and construed in
      accordance with the laws of the State of California (without reference to its
      choice of law principles), and to the exclusion of the law of any other forum,
      without regard to the jurisdiction in which any action or special proceeding
      may
      be instituted. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL JURISDICTION
      AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN THE COUNTY OF SAN DIEGO,
      CALIFORNIA FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN CONNECTION WITH,
      OR
      BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND ENFORCEMENT OF THIS
      AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE THEREIN THAT SUCH COURTS
      CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT,
      EACH PARTY SPECIFICALLY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY ISSUES SO
      TRIABLE. If it becomes necessary for any party to institute legal action to
      enforce the terms and conditions of this Agreement, the prevailing party shall
      be awarded reasonable attorneys fees, expenses and costs.

    

    h. Specific
      Performance:
      The
      Company and the Consultant shall have the right to demand specific performance
      of the terms, and each of them, of this Agreement.

    

    i. Execution
      of the Agreement:
      The
      Company, the party executing this Agreement on behalf of the Company, and the
      Consultant, have the requisite corporate power and authority to enter into
      and
      carry out the terms and conditions of this Agreement, as well as all
      transactions contemplated hereunder. All corporate proceedings have been taken
      and all corporate authorizations and approvals have been secured which are
      necessary to authorize the execution, delivery and performance by the Company
      and the Consultant of this Agreement. This Agreement has been duly and validly
      executed and delivered by the Company and the Consultant and constitutes a
      valid
      and binding obligation, enforceable in accordance with the respective terms
      herein. Upon delivery of this Agreement, this
      Agreement, and the other agreements and exhibits referred to herein, will
      constitute the valid and binding obligations of Company,
      and
      will be enforceable in accordance with their respective terms. Delivery may
      take
      place via facsimile transmission.

    

    j. Joint
      Drafting and Reliance on Independent Counsel.
      This
      Agreement shall be deemed to have been drafted jointly by the Parties hereto,
      and no inference or interpretation against any one party shall be made solely
      by
      virtue of such party allegedly having been the draftsperson of this Agreement.
      The Parties have each conducted sufficient and appropriate due diligence with
      respect to the facts and circumstances surrounding and related to this
      Agreement. The Parties expressly disclaim all reliance upon, and prospectively
      waive any fraud, misrepresentation, negligence or other claim based on
      information supplied by the other Party, in any way relating to the subject
      matter of this Agreement. Company
      was apprised that Consultant is a business partner of Mark L. Baum, Esq.
      (“Baum”), owner of The Baum Law Firm, PC, general legal counsel to the Company.
      As such, there is an inherent conflict of interest in Baum providing legal
      advisory services related to this Agreement. Pursuant to the California Rules
      of
      Professional Conduct, Company was advised by Baum to have independent legal
      counsel review the Agreement prior to its execution by the Company. The Company
      did in fact take advantage of the advice of legal counsel other than Baum prior
      to executing this Agreement.  

    

    k. Acknowledgments
      and Assent.
      The
      Parties acknowledge that they have been given at least ten (10) days to consider
      this Agreement and that they were advised to consult with an independent
      attorney prior to signing this Agreement and that they have in fact consulted
      with counsel of their own choosing prior to executing this Agreement. The
      Parties may revoke this Agreement for a period of three (3) days after signing
      this Agreement, and the Agreement shall not be effective or enforceable until
      the expiration of this three (3) day revocation period. The Parties agree that
      they have read this Agreement and understand the content herein, and freely
      and
      voluntarily assent to all of the terms herein.

    

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    

    IN
      WITNESS WHEREOF, this Agreement has been executed by the Parties as of the
      date
      first above written.

    

    

    
      	
              QUEST
                OIL CORPORATION, INC.

               

               

               

              _________________________________

              By:
                Joe Wallen

              Its:
                Chief Financial Officer

            	
              BUSINESS
                CONSULTING GROUP UNLIMITED, INC.

               

               

              ___________________________________

              By:
                James B. Panther, II

              Its:
                Managing Director

            

    

    

    A
      FACSIMILE COPY OF THIS AGREEMENT SHALL HAVE THE SAME LEGAL EFFECT AS AN ORIGINAL
      OF THE SAME.

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A: 

    SPECIMEN
      BOARD OF DIRECTORS RESOLUTIONExhibit 10.6

    Exhibit
      10.6

    

    OFFICE
      SPACE SUBLEASE

    

    This
      office space sublease (the “Sublease”) is made between Quest Oil Corporation, a
      Nevada corporation (“Tenant”) and Business Consulting Group Unlimited, Inc.
      (“Sublessor”). This Sublease supercedes any and all previous sublease agreements
      between Sublessor and Tenant which are hereby surrendered and terminated.

    

    Recitals

    

    A. Sublessor
      leases, the building commonly identified as 580 2nd
      Street,
      Suite 102, Encinitas, CA 92024 (the “Premises”). The Premises shall include any
      additional office location that Sublessor occupies at the time of the execution
      of this Sublease or within 180 days thereafter.

     

    B. Sublessor
      desires to sublease certain office space and improvements (the “Office Space”)
      situated within the Premises.

    

    C. Tenant
      desires to rent the Office Space.

    

    D. The
      Office Space shall include the following furnishings &
accessories:

     

    1. Internet,
      phone and fax systems, satellite T.V. connections, office furniture and all
      office, storage, common restroom, kitchen and designated parking
      areas.

    

    NOW,
      THEREFORE,
      for
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, Sublessor and Tenant agree upon the terms and conditions set
      forth
      herein.

    

    Section
      1

    Term
      and Required Notice

    

    (a) Sublessor
      hereby subleases to Tenant, and Tenant hereby subleases from Sublessor the
      Office Space commencing as of May 1, 2006 and expiring upon April 30, 2009.
      Holding over by Tenant at the expiration of the Sublease Term shall create
      a
      month to month tenancy. All other terms and conditions herein shall remain
      in
      full force and effect.

    

    Section
      2

    Rent,
      Expenses and Payment

    

    (a) 
      Tenant
      agrees to pay to Sublessor without set-off, abatement, credit, deduction or
      claim of off-set, monthly ("Rent") for the Office Space of five thousand dollars
      ($5,000) per month. Rent shall be payable in advance, on the first day of each
      month during the Sublease Term, at the address of the Premises set forth above
      or at such other address as Sublessor may from time to time designate by notice
      to Tenant. In the event the Sublease Term commences or expires on any day other
      than the first or last day of a month, respectively, then the Rent for such
      month shall be prorated accordingly. 

    

    

    

    

    

    (b) In
      addition to the payment of Rent, Tenant agrees to pay to Sublessor the following
      office expenses which shall be itemized and calculated on a monthly basis by
      Sublessor, including, but not limited to:

    

    
      	1.  	
              Phone;

            

    

    
      	2.  	
              Internet
                connection;

            

    

    
      	3.  	
              Fax
                charges including ink cartridges and
                paper;

            

    

    
      	4.  	
              Satellite
                T.V.;

            

    

    
      	5.  	
              Postage
                & Overnight delivery;

            

    

    
      	6.  	
              Copying;

            

    

    
      	7.  	
              Electricity
                (including HVAC);

            

    

    
      	8.  	
              Stationary
                and office supplies; and

            

    

    
      	9.  	
              Cleaning
                and janitorial.

            

    

    

    Section
      3

    No
      Assignment or Subletting

    

    Tenant
      shall not sublet the Premises, or any portion thereof, or assign this Sublease,
      in whole or in part, without the prior written consent of
      Sublessor.

    

    Section
      4

    Lease
      Provisions

    

    Except
      as
      otherwise expressly herein provided or modified by this Sublease (including,
      without limitation, the limitations on Tenant's monetary obligations under
      this
      Sublease), Tenant hereby assumes and agrees to fully adhere to, perform and
      comply with the covenants, agreements, duties and obligations of the Lessee
      under the rules and regulations of the master lease, attached as Exhibit A.
      Each
      of such covenants, agreements, duties and obligations is incorporated as if
      fully rewritten herein. 

    

    Section
      5

    Condition
      of Premises

    

    Tenant
      agrees and acknowledges that it is accepting the Office Space from Sublessor
      in
      its present condition and that Sublessor is not presently obligated to make
      any
      improvements for Tenant.

    

    Section
      6

    Subordination

    

    Tenant
      acknowledges and agrees that this Sublease is, and at all times shall be,
      expressly subordinate to the Lease, and all present or future (i) ground and
      underlying leases of all or any portion of the Premises now or hereafter
      existing, (ii) mortgages or trust deeds affecting all or any portion of the
      Premises, (iii) advances under such mortgages or trust deeds and (iv) renewals,
      modifications, replacements and extensions of any such leases, mortgages or
      trust deeds. 

    

    

    

    

    

    Section
      7

    Indemnification

    

    Tenant
      hereby agrees to indemnify, defend and hold harmless Sublessor and its agents,
      employees, officers, directors, attorneys, licensees, representatives, and
      contractors harmless from and against any and all claims, actions, demands,
      suits, losses, expenses (including attorney's fees), judgments and liabilities
      arising out of or in any way relating to the operation of Tenant’s: business,
      rental of the Office Space, breach of or failure to perform any of its
      obligations hereunder, negligence or misconduct by Tenant or any of its
      licensees, agents, officers, directors, employees, officers, directors,
      attorneys or contractors. The scope of this indemnification, defense and hold
      harmless obligation shall, at the indemnified party's option, include, but
      not
      be limited to, defense with attorneys satisfactory to such party, of any action,
      suit, claim or proceeding that may be filed, instituted or brought against
      the
      indemnified party or to which such party may be made a party. 

    

    Section
      8

    Insurance

    

    Tenant
      shall not be required to provide insurance documentation.

    

    Section
      9

    Notices

    

    Any
      notice, communication or demand required or permitted hereunder shall be in
      writing and shall be given when personally delivered and receipted or deemed
      given, whether or not actually received, two days after deposit in the United
      States mail, by certified or registered mail, postage prepaid, return receipt
      requested, in either case addressed to the party to receive such notice at
      the
      address shown below or such other address as such party may, by notice,
      hereafter furnish to the other: 

    

    Sublessor: 580
      2nd
      Street,
      Suite 102, Encinitas, CA 92024

     

    Tenant:
       580
      2nd
      Street,
      Suite 102, Encinitas, CA 92024

    

    Section
      10

    Default

    

    (a) 
      If
      Tenant fails to perform any of the terms, covenants, agreements or conditions
      on
      its part to be performed under this Sublease and such failure continues
      uncorrected for 3 days after notice thereof from Sublessor, unless otherwise
      specified herein, this Sublease may be terminated by Sublessor at its option.
      If
      Sublessor exercises such right to terminate this Sublease, it shall be entitled
      to receive all costs and expenses it incurs in connection with such
      termination.

    

    (b) 
      If at
      any time or times, Tenant defaults in the payment of Rent and such default
      continues for a period of 3 days after notice thereof to Tenant or if Tenant
      defaults in the due and full observance or performance of any other covenant,
      provision or condition herein required to be kept, performed or observed by
      Tenant, and if any such default continues for a period of 3 days after written
      notice to Tenant thereof, Sublessor may at any time during the continuance
      of
      such default by notice to Tenant, terminate this Sublease. 

    

    (c) 
      In
      addition to the right to terminate this Sublease upon the occurrence of a
      default hereunder and expiration of any applicable notice and cure periods,
      the
      non-defaulting party shall be entitled to pursue all available remedies at
      law
      or in equity, including, without limitation, injunctive relief. 

    

    Section
      11

    Conflicts

    

    In
      the
      event of a conflict between the terms of this Sublease and the terms of the
      Lease, the terms of this Sublease shall prevail.

    

    Section
      12

    Parking
      and Signage

    

    (a) Tenant
      and/or its employees or customers shall not park vehicles in Subleasor’s marked
“client” parking spaces in the front of the Premises.

    

    (b) Tenant
      shall not erect or display any signage or advertisement on or about the Office
      Space or Premises.

    

    Section
      13

    Miscellaneous

    

    This
      Sublease: (i) shall be binding upon and inure to the benefit of the parties
      hereto and their respective successors and assigns; (ii) contains the entire
      agreement of the parties with respect to the subject matter hereof; (iii) is
      a
      product of the joint negotiation and drafting of the parties hereto and shall
      be
      construed accordingly; (iv) shall be construed in accordance with the laws
      of
      the State of California and the venue for any action shall be San Diego County,
      State of California. The invalidity or unenforceability of any provision hereof
      shall not impair or invalidate the remainder of this Sublease; (v) may be
      executed in several counterparts, in one or more separate documents, all of
      which together shall constitute one of the same instrument, with the same force
      and effect as though all the parties had executed the same document; and (vi)
      shall not be limited by paragraph titles or captions contained herein which
      are
      inserted only as a matter of convenience and for reference, and in no way
      define, limit, extend, or describe the scope of this Sublease.

    

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

    

    
      	
              SUBLEASOR:

               

               

              __________________________________

              By:
                

              Its:
                

            	
              TENANT:

               

               

              ____________________________________

              By:
                

              Its:

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