Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Park Place Energy Inc.- Exhibit 10.2

REORGANIZATION ASSET AND SHARE PURCHASE AND SALE
AGREEMENT

THIS AGREEMENT is dated effective July 30, 2007

AMONG:

PARK PLACE ENERGY CORP.,
formerly ST ONLINE 
CORP., a corporation incorporated under the
laws of the State of
Nevada with an address at 1220-666 Burrard Street,
Vancouver, 
BC V6C 2X8

(“ST”)

AND:

SCOTT PEDERSEN, businessperson,
c/o 1220-666 Burrard
Street, Vancouver, BC V6C 2X8

(“Pedersen”)

AND:

DAVID STADNYK, businessperson,
c/o 1220 – 666 Burrard
Street, Vancouver, BC V6C
2X8
(“Stadnyk”)

AND:

ELENA AVDASSEVA, businessperson,
c/o 1220 – 666 Burrard Street,
Vancouver, BC V6C 2X8

(“Avdasseva”)

WHEREAS:

(A)          ST
has entered into a business combination agreement with Park Place Energy Inc., a
private Alberta energy company (“PPEI”), and 0794403 B.C. Ltd.
(“Subco”), ST’s wholly-owned subsidiary, whereby ST will reorganize its
capital structure through a three-cornered amalgamation between PPEI and Subco
(the “RTO”), and after completion of the RTO, ST will carry on the
business of PPEI;

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(B)          the
RTO requires certain transactions, including asset divestitures, share transfers
and changes of officers and directors to take place prior to completion of the
RTO;

(C)          ST
is the sole owner and registrant of the domain name “simpletennis.com” (the
“Domain Name”) that is registered with DotRegistrar.com (the
“Registrar”);

(D)          The
Domain Name and the “www” sub-domain to the Domain Name resolve to a website
currently operated by ST and known as “Simple Tennis” (the “Website”)
hosted by Glide Media Inc., doing business as Glide Hosting (the
“Host”);

(E)          ST
wishes to sell to Pedersen, and Pedersen wishes to purchase from ST, the Domain
Name and the Website and other related content and rights in accordance with the
terms and conditions of this Agreement;

(F)          Stadnyk
has been appointed as President and Chief Executive Officer of ST in
anticipation of the completion of the RTO; and

(G)          Avdasseva
is the owner of 30,000,000 common shares (on a post-split basis) in the capital
of ST (the “ST Shares”), and as part of the RTO has agreed to sell and
Stadnyk has agreed to buy the ST Shares, on the terms and conditions of this
Agreement.

NOW, THEREFORE, in consideration of the foregoing and
the promises provided for herein, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows: 

PART 1
INTERPRETATION

Definitions

1.1          In
this Agreement, except as otherwise expressly provided or as the context
otherwise:

(a)          
“Business Day” means any day other than a Saturday or Sunday or statutory
holiday in British Columbia;

(b)          
“Developer” means Tidal Multimedia Inc., a Vancouver-based web design
company;

(c)          
“Domain Name” has the meaning ascribed thereto in Recital (C);

(d)          
“Force Majeure” means an event or circumstance beyond the reasonable
control of a party that prevents or delays that party’s ability to perform its
obligations under this Agreement, including Acts of God, strikes and labour
disputes, fires, epidemics, sabotage, floods, earthquakes, power failure, war,
riots, terrorism, insurrection or civil disturbances and personal incapacity
including illness or death, but not any lack of money, credit or financing;

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(e)          “Host”
has the meaning ascribed thereto in Recital (D);

(f)          “Intellectual
Property Rights” means all intellectual property, including patents
(including utility patents, design patents, registered industrial designs,
utility models and certificates of addition), patent applications, copyright,
trade marks (including trade names, business names and service marks),
information rights in computer software and databases, know-how, trade secrets,
other similar instruments or rights, whether registered or unregistered, and all
rights in relation to any of the foregoing which are recognized anywhere in the
world;

(g)          “Registrar”
has the meaning ascribed thereto in Recital (C);

(h)          “Related
Content” means all

(i)          videos,
images, audio recordings, multimedia files, customer accounts, scripts, files,
text, stylings, source code, object code, electronic data and other content
available on or accessible from the Website, and

(ii)          POP
addresses, sub-domains and accounts, data and services available from or
resolved to the Domain Name.

(i)          “Website”
has the meaning ascribed thereto in Recital (D);

Interpretation

1.2          In
this Agreement, except as otherwise expressly provided or as the context
otherwise:

(a)          the
insertion of headings in this Agreement is for convenience of reference only and
will not affect the construction or interpretation of this Agreement;

(b)          the
word “or” is not exclusive and the word “including” is not
limiting (whether or not non-limiting language such as “without limitation” or
“but not limited to” or other words of similar import are used with reference
thereto);

(c)          a
reference to a “Part” is to a Part of this Agreement, and the symbol
“§” followed by a number or some combination of numbers and letters
refers to the section, paragraph, subparagraph, clause or subclause of this
Agreement so designated;

(d)          a
reference to an entity includes any successor to that entity;

(e)          a
word importing the masculine gender includes the feminine and neuter, a word in
the singular includes the plural, a word importing a corporate entity includes
an individual, and vice versa;

(f)          “person”
will mean an individual, partnership, corporation (including a business trust),
joint stock company, trust unincorporated association, joint venture, or other
entity or a government or any agency, department or instrumentality thereof and
vice versa; and

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(g)          words,
phrases and acronyms not otherwise defined herein that have a meaning commonly
understood and accepted by persons familiar with the business of Internet or
information technology will be interpreted and understood to have that meaning
herein.

Currency

1.3          All
references herein to an amount of money or currency shall mean an amount in
Canadian dollars, unless stated to the contrary.

PART 2
PURCHASE AND SALE OF WEBSITE

Transfer of Website

2.1          ST
hereby transfers, conveys and assigns to Pedersen all of ST’s right, title, and
interest in and to:

	 	(a) 	
      the Domain Name;

	 	 	 
	 	(b) 	
      the Website and all Related Content;

	 	 	 
	 	(c) 	
      all Intellectual Property Rights in connection with (a)
      and (b) above; and

	 	 	 
	 	(d) 	
      any agreements between ST and any or all of the Host, the
      Developer and the Registrar.

Consideration

2.2          In
consideration of the transfer, conveyance and assignment described in §2.1,
Pedersen:

	 	(a) 	
      agrees to resign as a director and officer of ST
      effective immediately; and

	 	 	 
	 	(b) 	
      hereby transfers to ST for cancellation 18,000,000 shares
      (on a post-split basis) in the authorized capital of ST (the “Pedersen
      Shares”) currently held by Pedersen.

Complete Transfer, Conveyance and Assignment

2.3          ST
acknowledges and agrees that the above transfer, conveyance and assignment is a
complete transfer, conveyance and assignment and that ST retains no right, title
or interest in or to the Domain Name, the Website, the Related Content and all
Intellectual Property Rights in connection therewith, and ST hereby:

(a)          waives
as against any person any and all moral rights it may have therein or thereto,
such moral rights including the right to restrain or claim damages for any
distortion, mutilation, or modification of any part thereof whatsoever, and to
restrain use or reproduction thereof in any context, or in connection with any
product or service; and

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(b)          agrees
not to commence any claims or proceedings against any person, corporation,
partnership, or other entity in respect of the ownership or use thereof.

Injunctive Relief

2.4          ST
acknowledges and agrees that a breach by it of this Part 2 or §4.6 would result
in immediate and irreparable harm to Pedersen that could not adequately be
compensated by monetary award. Accordingly, in the event of any such breach,
Pedersen shall be entitled as a matter of right to apply to a court of competent
jurisdiction, without necessity of establishing the inadequacy of a monetary
award, for relief by way of injunction, restraining order, decree or otherwise
as may be appropriate to ensure compliance by ST with this Part 2 or §4.6.

Outstanding Amounts

2.5          ST
agrees to pay Pedersen, and Pedersen agrees to receive from ST, the sums of
US$10, 000 and Cdn$4,127 in full and final satisfaction of any obligations of ST
owing to Pedersen, except for those set out herein, provided that Pedersen
execute and deliver to ST a full and final release substantially in the form set
out in Schedule A.

Representations and Warranties of ST

2.6          ST
represents and warrants to Pedersen that:

(a)          ST
owns all right, title and interest in the Domain Name, the Website and the
Related Content, and the Intellectual Property Rights in connection therewith,
and ST has all necessary legal power, authority and capacity to execute and
deliver this Agreement and to perform its obligations hereunder and to grant,
free and clear of all encumbrances, all transfers, conveyances and assignments
provided hereunder;

(b)          this
Agreement has been duly authorized, executed and delivered by ST and constitutes
a valid, binding and legally enforceable agreement of ST;

(c)          ST
does not have any knowledge of any third party infringement of Intellectual
Property Rights with respect to the Website, the Domain Name or the Related
Content; and

(d)          ST
does not have any knowledge that the Website, the Domain Name or the Related
Content infringe on any Intellectual Property Rights of any third parties.

Representations and Warranties of Pedersen

2.7          Pedersen
represents and warrants to ST that:

(a)          he is
the registered holder and the beneficial owner of the Pedersen Shares and the
Pedersen Shares are free and clear of all liens, charges and encumbrances;

(b)          the
Pedersen Shares represent all shares in the capital of ST legally or
beneficially owned or controlled by Pedersen;

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(c)          he
has full legal right and authority to enter into this Agreement and sell the
Pedersen Shares to ST upon the terms of this Agreement; and

(d)          this
Agreement constitutes a legal, valid and binding obligation of Pedersen,
enforceable against him in accordance with its terms, except as may be limited
by bankruptcy, insolvency or similar laws of general application affecting the
rights of creditors and except that the availability of equitable remedies is
subject to the discretion of the court before which any proceedings may be
brought.

PART 3
SALE OF ST SHARES

Purchase and Sale of ST Shares

3.1          Avdasseva
hereby agrees to sell, assign, transfer and deliver to Stadnyk, and Stadnyk
agrees to purchase and accept from Avdasseva, effective July 30, 2007 (the
“Closing Date”), all of the right, title and interest of Avdasseva in and
to the ST Shares, free and clear of all liens, charges and encumbrances.

Purchase Price

3.2          The
aggregate purchase price for the ST Shares is the sum of US$10,000 (the
“Purchase Price”). 

Payment of Purchase Price and Delivery of ST Shares

3.3          The
Purchase Price will be paid by Stadnyk by way of cash or cheque or bank draft
payable to Avdasseva on the Closing Date, against delivery by Avdasseva of share
certificates representing the ST Shares, duly endorsed for transfer to
Stadnyk.

Avdasseva’s Representations and Warranties

3.4          Avdasseva
represents and warrants that:

(a)          she
is the registered holder and the beneficial owner of the ST Shares and the ST
Shares are free and clear of all liens, charges and encumbrances;

(b)          she has
full legal right and authority to enter into this Agreement and sell the ST
Shares to Stadnyk upon the terms of this Agreement; and

(c)          this
Agreement constitutes a legal, valid and binding obligation of Avdasseva,
enforceable against her in accordance with its terms, except as may be limited
by bankruptcy, insolvency or similar laws of general application affecting the
rights of creditors and except that the availability of equitable remedies is
subject to the discretion of the court before which any proceedings may be
brought.

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Acknowledgment regarding Cancellation of ST Shares

3.5          Avdasseva
and Stadnyk acknowledge and agree that following the purchase and sale of the ST
Shares to Stadnyk, as a condition precedent to the RTO, Stadnyk will return to
ST for cancellation 27,000,000 of the ST Shares, with 3,000,000 of the ST Shares
to be retained by Stadnyk.

Release

3.6          Avdasseva
aggress, in consideration of the sum of $10.00 and other good and valuable
consideration, the receipt of which is hereby acknowledged, execute and deliver
to Stadnyk and ST a full and final release substantially in the form set out in
Schedule B.

PART 4
GENERAL PROVISIONS

Assignment

4.1          No
party may assign this Agreement or its rights or obligations hereunder without
the prior written consent of the other parties.

Notices

4.2          Any
notice or other communication required to be given under this Agreement will be
deemed properly given if given in writing and delivered in person or sent by
registered mail to the address of such party set out on the first page of this
Agreement. Any party may from time to time change such address by giving the
other parties reasonable notice of such change in accordance with this §4.2. If
delivered in person, such notice will be deemed to be delivered on that day. If
delivered by mail, notice will be deemed to be given on the fifth Business Day
following mailing.

Amendments

4.3          This
Agreement may not be amended except by written agreement among the parties
hereto.

Survival

4.4          Notwithstanding
the expiration or termination of this Agreement for any reason, all payment
obligations that have accrued hereunder, all obligations with respect to the
ownership of intellectual property, all obligations and rights which by their
nature are intended to continue or survive and all representations and
warranties will survive the expiration or termination of this Agreement.

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Inurement

4.5 This Agreement will be binding upon and inure to the
benefit of each party and their respective successors and permitted assigns.

Further Steps

4.6          Each
party will in a prompt fashion in each case execute and deliver such further and
other agreements, documents and instruments and take such further acts as are
reasonably necessary or desirable to carry out the intent of this Agreement.
Without limiting the generality of the foregoing in connection with Part 2
above, ST will as soon as reasonably practicable

(a)          co-operate
fully with Pedersen with respect to signing further documents and doing such
acts and other things reasonably requested by Pedersen to confirm or evidence
the matters set out in Part 2, or to obtain, register or enforce any right in
respect thereof,

(b)          change
or cause the Registrar to change the registrant of the Domain Name from ST to
Pedersen or such other person as Pedersen directs, and

(c)          give
any notice required by or obtain any consent required from the Host or the
Developer with respect to the assignment of the agreements described in §2.1(d)
..

Governing Law

4.7          This
Agreement will be governed by and construed, interpreted, and enforced in
accordance with the laws of the Province of British Columbia and the laws of the
Canada applicable therein. The parties irrevocably submit to the non-exclusive
jurisdiction of the courts of the Province of British Columbia.

Waivers, Relinquishments

4.8          The
failure of a party to insist upon or enforce strict performance of any of the
provisions of this Agreement or to exercise any rights or remedies under this
Agreement will not be construed as a waiver or relinquishment to any extent of
such party’s right to assert or rely upon any such provisions, rights or
remedies in that or any other instance; rather, the same will be and remain in
full force and effect.

Severability

4.9          If
any provision of this Agreement is determined by a court of competent
jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions
will remain in full force and effect.

Counterparts

4.10          This
Agreement may be executed and delivered by facsimile and in any number of
counterparts. Each executed counterpart and each facsimile signature will be
deemed to be an original. All executed counterparts taken together will
constitute one agreement.

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Independent Legal Advice

4.11 Each of the parties acknowledges, confirms and agrees that
it has had the opportunity to seek and was not prevented nor discouraged by any
party hereto from seeking independent legal advice prior to the execution and
delivery of this Agreement and that, in the event that such party did not avail
itself with that opportunity prior to signing this Agreement, such party or it
did so voluntarily without any undue pressure and agrees that its failure to
obtain independent legal advice should not be used by it as a defence to the
enforcement of its obligations under this Agreement.

[Remainder of page left intentionally
blank]

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Entire Agreement

4.12          This
Agreement, together with all Schedules hereto, sets forth the entire agreement,
and supersedes and replaces any and all prior agreements or understandings
between the parties, whether written or oral, regarding the subject matter
hereof. No course of prior dealings, no usage of trade, and no course of
performance will be used to modify, supplement, or explain any terms used in the
Agreement.

IN WITNESS WHEREOF, each of the parties have executed
this Agreement or caused this Agreement to be executed by its duly authorized
representatives as of the date first written above.

PARK PLACE ENERGY CORP.

	Per: /s/ David
      Stadnyk 	  	  
	       Authorized Signatory 	  	  
	  	  	  
	  	  	  
	Signed, Sealed and Delivered by SCOTT 	) 	  
	PEDERSEN in the presence of: 	) 	  
	  	) 	  
	  	) 	  
	/s/ Justin Liu 	) 	/s/
      Scott Pedersen 
	Witness (Signature) 	) 	SCOTT PEDERSEN 
	 	)	 
	Justin Liu 	) 	  
	Name (please print) 	) 	  
	  	) 	  
	1066 Groveland
      Road 	) 	  
	Address 	) 	  
	 	)	 
	West Vancouver, BC
      V7S 1Z4 	) 	  

	Signed, Sealed and Delivered by ELENA 	 	  
	AVDASSEVA in the presence of: 	 	  
	 	 	 
	/s/ Justin Liu 	 	  
	  	 	  
	Witness (Signature) 	 	/s/
      Elena Avdasseva 
	Justin Liu 	 	ELENA AVDASSEVA 
	Name (please print) 	 	  
	 	 	 
	1066 Groveland
      Road 	 	  
	Address 	 	  
	 	 	 
	West Vancouver, BC
      V7S 1Z4 	 	  

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	Signed, Sealed and Delivered by DAVID 	 	  
	STADNYK in the presence of: 	 	  
	 	 	 
	/s/ JanUrata 	 	  
	Witness (Signature) 	 	  
	 	 	/s/ David Stadnyk
	Jan Urata 	  	DAVID STADNYK 
	Name (please print) 	 	  
	 	 	 
	1500 – 1055 West
      Georgia Street 	 	  
	Address 	 	  
	 	 	 
	Vancouver, BC V6E
      4N7 	 	  

 SCHEDULE A

  FORM OF RELEASE

KNOW ALL MEN BY THESE PRESENTS that, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by Scott Pedersen (the “Releasor”), the Releasor does hereby remise, release and forever
discharge PARK PLACE ENERGY CORP., formerly ST. ONLINE CORP. (the “Corporation”) of and from any and all liabilities, whether contingent or otherwise, debts, sum and sums of money, accounts, dues, contracts,
agreements, covenants, guarantees, actions, suits, causes of action or complaints, bonds, obligations, claims, counterclaims and demands whatsoever either at law or in equity or otherwise which against it the Releasor ever had, now has or which the
legal representatives, successors or assigns of the Releasor hereafter can, shall or may have by reason of any cause, matter or thing whatsoever, whether known or unknown, that the Releasor now has or hereafter may have against the Corporation by
reason of any cause, act, deed, matter, thing or omission existing up to and inclusive of July 30, 2007, including, but not limited to, claims as a shareholder of the Corporation and the balance of any outstanding fees, expenses, participation in
profits, earnings or other remuneration whether authorized by articles, by-laws, resolution, contract or otherwise.

THE RELEASOR FURTHER DECLARES that he has read this Release and knows and fully understands the contents of the same and that the Releasor has not assigned to any person, partnership, body corporate or other entity any claim which the
Releasor releases under this Release.

IN WITNESS WHEREOF the Releasor has duly executed this Release as of the 9th day of August, 2007.

	Signed, Sealed and Delivered by SCOTT 	) 	  
	PEDERSEN in the presence of: 	) 	  
	  	) 	  
	  	) 	  
	/s/ Justin Liu 	) 	/s/ Scott
      Pedersen 
	Witness (Signature) 	) 	SCOTT PEDERSEN 
	 	)	 
	Justin Liu 	) 	  
	Name (please print) 	) 	  
	  	) 	  
	1066 Groveland Road
    	) 	  
	Address 	) 	  
	 	)	 
	West Vancouver, BC
      V7S 1Z4 	) 	  

 SCHEDULE B

  FORM OF RELEASE

KNOW ALL MEN BY THESE PRESENTS that, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by Elena Avdasseva (the “Releasor”), the Releasor does hereby remise, release and forever
discharge PARK PLACE ENERGY CORP., formerly ST. ONLINE CORP. (the “Corporation”) and David Stadnyk (“Stadnyk”) of and from any and all liabilities, whether contingent or otherwise, debts, sum and sums
of money, accounts, dues, contracts, agreements, covenants, guarantees, actions, suits, causes of action or complaints, bonds, obligations, claims, counterclaims and demands whatsoever either at law or in equity or otherwise which against them the
Releasor ever had, now has or which the legal representatives, successors or assigns of the Releasor hereafter can, shall or may have by reason of any cause, matter or thing whatsoever, whether known or unknown, that the Releasor now has or
hereafter may have against the Corporation or David Stadnyk by reason of any cause, act, deed, matter, thing or omission existing up to and inclusive of July 30, 2007, including, but not limited to, claims as a shareholder of the Corporation and the
balance of any outstanding fees, expenses, participation in profits, earnings or other remuneration whether authorized by articles, by-laws, resolution, contract or otherwise.

THE RELEASOR FURTHER DECLARES that he has read this Release and knows and fully understands the contents of the same and that the Releasor has not assigned to any person, partnership, body corporate or other entity any claim which the
Releasor releases under this Release.

IN WITNESS WHEREOF the Releasor has duly executed this Release as of the 9th day of August, 2007.

	Signed, Sealed and Delivered by ELENA 	 	  
	AVDASSEVA in the presence of: 	 	  
	 	 	 
	/s/ Justin Liu 	 	  
	  	 	  
	Witness (Signature) 	 	/s/ Elena
      Avdasseva 
	Justin Liu 	 	ELENA AVDASSEVA 
	Name (please print) 	 	  
	 	 	 
	1066 Groveland Road
    	 	  
	Address 	 	  
	 	 	 
	West Vancouver, BC
      V7S 1Z4Filed by Automated Filing Services Inc. (604) 609-0244 - Park Place Energy Inc. - Exhibit 10.3

PARK PLACE ENERGY INC.

August 8, 2007

Great Northern Oilsands Inc.
600 – 595 Hornby
Street
Vancouver, BC V6C 2E8

Dear Sirs:

Re:    Loan

Park Place Energy Inc. (the “Lender”) hereby agrees to loan to
Great Northern Oilsands Inc. (the “Borrower”) the sum of US$330,000 (the “Loan”)
on the following terms and conditions:

Loan Amount: US$330,000 (the “Loan Amount”).

Use of Loan: It is acknowledged that the Loan
Amount will be used by the Borrower to fund its immediate obligations under that
participation agreement dated August 7, 2007 between Montello Resources Ltd. and
the Borrower (the “Participation Agreement”).

Interest Rate: The Loan Amount shall bear
interest at the Bank of Montreal prime rate plus 1% per annum, which interest
shall accrue from the date hereof.

Term and Repayment: The Loan Amount together with
accrued and unpaid interest shall be payable as follows:

(a)      in
circumstances where the drilling of the John Bowen #2 Well (the “JB #2 Well”)
contemplated by the Participation Agreement is successful and that well goes
into production, the Loan Amount together with accrued interest shall be paid to
the Lender from the initial revenues received by the Borrower from the JB #2
Well under the Participation Agreement; and

(b)      in
circumstances where the drilling of the JB #2 Well is not successful, the
Borrower shall satisfy its obligations to repay the Loan Amount and accrued and
unpaid interest by transferring all of its interest in the Eight Mile property
in British Columbia to the Lender, including but not limited to its interest in
the 7-8 well and the 3-36 well.

Transfer of Interest: As consideration for the
Lender making the Loan available to the Borrower, the Borrower shall assign to
the Lender one-half (2.5%) of its undivided 5% net working interest in the
Morgan Highpoint Project Lands and its undivided 5% interest in the John Bowen
#1 Well (the “Participation Agreement Interest”) as provided for under the 

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Participation Agreement and in that regard shall take such
steps as shall be necessary to effect such assignment.

Right of First Refusal: As further consideration
for the Lender making the Loan available to the Borrower, the Borrower hereby
grants to the Lender the right of first refusal to take an assignment of the
Borrower’s remaining Participation Agreement Interest in circumstances where the
Borrower is unable or unwilling to fund its obligations in respect of such
Participation Agreement Interest and in this regard, in circumstances where such
right is triggered, the Borrower shall immediately notify the Lender upon
receipt of a new AFE under the Participation Agreement and, in circumstances
where the Lender advises it wishes to exercise such right of first refusal, the
Borrower shall take such steps as shall be necessary to effect the assignment to
the Lender of the Borrower’s remaining Participation Agreement Interest.

Default: The following shall constitute events of
default by the Borrower:

	 	(a) 	
      a breach or default by the Borrower under this Agreement
      or any other agreement with the Lender which is not remedied within 14
      days after the date of such occurrence;

	 	 	 
	 	(b) 	
      if the Borrower defaults under any other material
      obligation to repay borrowed money;

	 	 	 
	 	(c) 	
      if there is a material adverse change in the current
      financial condition, ownership or operation of the Borrower;

	 	 	 
	 	(d) 	
      if proceedings for the dissolution, liquidation or
      winding-up of the Borrower or for the suspension of the operations of the
      Borrower are commenced, unless such proceedings are being actively and
      diligently contested by the Borrower, as the case may be in good faith;
      or

	 	 	 
	 	(e) 	
      in the event of the bankruptcy, liquidation or insolvency
      of the Borrower as the case may be or if a receiver or receiver-manager is
      appointed for all or any part of the business or assets of the Borrower;
      and

	 	 	 
	 	(f) 	
      if the Borrower ceases to carry on
  business.

Upon the occurrence of one or more events of default, the
Lender may declare the outstanding principal and accrued interest under the Loan
to be immediately due and payable.

- 3 -

Representations and Warranties: the Borrower
hereby represents and warrants to the Lender that: 

	 	(a) 	
      it is duly incorporated and organized, is duly qualified
      to carry on business in the jurisdictions where it currently carries on
      business and as the full power, capacity and authority to carry on the
      business that it currently carries on;

	 	 	 
	 	(b) 	
      it has the power, capacity and authority to execute and
      deliver this Agreement and, where applicable, to comply with the
      provisions hereof and thereof and to duly perform and observe all of its
      obligations hereunder and thereunder;

	 	 	 
	 	(c) 	
      the execution, delivery and performance of this Agreement
      and every other instrument or agreement delivered pursuant hereto and
      thereto, have been duly authorized by all requisite action of the
      Borrower, and each of this Agreement and other such documents has been
      duly executed and delivered and constitutes a valid and binding obligation
      of the Borrower, enforceable in accordance with its respective terms, save
      as enforcement may be limited by laws of general applicable governing the
      enforcement of rights by creditors and the availability of specific
      performance and other equitable remedies;

	 	 	 
	 	(d) 	
      the execution and delivery of this Agreement and the
      completion of the transactions contemplated by this Agreement will not
      contravene any provision of any law, regulation, order or permit
      applicable to the Borrower or conflict with or contravene the constating
      documents of the Borrower, nor result in a breach of or constitute a
      default under or require any consent under any agreement or instrument to
      which the Borrower, is a party or by which it is bound;

	 	 	 
	 	(e) 	
      all of the written information previously delivered by or
      on behalf of the Borrower to the Lender in connection with the Borrower
      and its business, properties and other assets is true and correct in all
      material respects; and

	 	 	 
	 	(f) 	
      no event has occurred which constitutes, or with notice
      or lapse of time or both would constitute an event of default by the
      Borrower, as the case may be.

Affirmative Covenants: The Borrower hereby
covenants and agrees with the Lender that so long as any indebtedness hereunder
remains outstanding:

	 	(a) 	
      the Borrower will duly and punctually pay or cause to be
      paid to the Lender all amounts required to be paid to the Lender pursuant
      to this Agreement on the day, at the place and in the manner set forth
      herein;

	 	 	 
	 	(b) 	
      the Borrower will duly observe and perform, in all
      material respects, each of the covenants and agreements set forth in this
      Agreement;

	 	 	 
	 	(c) 	
      the Borrower will maintain its corporate existence and
      carry on and conduct its business in a proper and efficient
  manner;

- 4 -

	 	(d) 	
      the Borrower will deliver or cause to be delivered to the
      Lender such information relating to its business and operations and its
      properties and assets as the Lender may reasonably request;

	 	 	 
	 	(e) 	
      the Borrower will forthwith notify the Lender of any
      material action, suit or proceeding brought or threatened against or
      affecting the Borrower or any of the properties or assets of the
      Borrower;

	 	 	 
	 	(f) 	
      the Borrower will forthwith notify the Lender of the
      occurrence of any event of default or any event of which it is aware which
      with notice or lapse of time or both or otherwise would constitute an
      event of default; and

	 	 	 
	 	(g) 	
      the Borrower will duly observe and comply with all
      material requirements of any governmental authority relative to any of its
      properties and assets and the operation of its
business.

Expenses: The Borrower will pay all commercially
reasonable costs and expenses incurred from time to time in the enforcement of
this Agreement. 

Notices: All notices and other communications
under this Agreement shall be in writing and shall be sent by delivery or by
facsimile transmission addressed as follows:

	 	(a) 	
      if to the Lender, to:

	 	 	 
	 		
      Park Place Energy Inc.
Suite 1220, Park
      Place
Vancouver, B.C.
V6C 2X8

	 	 	 
	 		
      Attention: David
Stadnyk

	 	(b) 	
      if to the Borrower, to:

	 	 	 
	 		
      Great Northern Oilsands Inc.
600 – 595 Hornby
      Street
Vancouver, BC V6C 2E8

	 	 	 
	 		
      Attention: David Lane

Severability: If any provision of this
Agreement is held by any court of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions shall remain in full force and
effect.

Governing Law: This Agreement shall be governed
by the laws of the Province of British Columbia and the federal laws of Canada
applicable therein, and the parties hereto attorn to the jurisdiction of the
court of the Province of British Columbia.

- 5 -

Assignment: No party hereto may assign its rights
or obligations under this Agreement without the prior written consent of the
other party.

Yours truly,

PARK PLACE ENERGY INC.

	Per: 	/s/ David Stadnyk 	 
	  	Authorized Signatory 	 

Acknowledged and agreed to this 14th day of August,
2007.

GREAT NORTHERN OILSANDS INC.

	Per: 	/s/ David Lane 	 
	  	Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]