Document:

EXHIBIT
      10.1

    

    October
      5, 2006

    

    ____________________

    ____________________

    ____________________

    

    

    
      	Re:	True
              North Energy Corporation Advisory Board Engagement
              Letter

    

     

    Dear
      __________,

    

    This
      letter (the "Advisory Board Engagement Letter") will confirm that True North
      Energy Corporation ("TNEN” or the "Company") has engaged you, __________ (the
      "Advisor") to be the Company's business advisor and that you have been appointed
      to the Advisory Board of the Company effective October 5, 2006.

    

    1.
      SCOPE
      OF SERVICES

    

    In
      this
      Engagement, Advisor will, on an on-going basis:

    

    
      	 	
              (a)

            	
              Act
                as an advisor to the Company;

            

    

    

    
      	 	
              (b)

            	
              Periodically
                meet with the Company's management and board to discuss the Company's
                operating strategy, competitive position, business and financial
                prospects
                and growth opportunities;

            

    

    

    
      	 	
              (c)

            	
              Assist
                the Company in formulating strategic, financial and development plans,
                contacts and recruitment of key personnel designed to create long-term
                shareholder value and liquefying such value when
                appropriate;

            

    

    

    
      	 	
              (d)

            	
              Assist
                in the development of capitalization plans which provide the capital
                resources necessary to accomplish the operating and strategic
                plans;

            

    

    

    
      	 	
              (e)

            	
              Assist
                the Company in identifying and reviewing potential prospects, field
                development plans and acquisition targets to achieve Company's
                objectives;

            

    

    

    
      	 	
              (f)

            	
              Assist
                the Company in developing a financial strategy and securing equity
                capital
                and/or debt financing to fund on-going business of the
                Company;

            

    

    

    
      	 	
              (g)

            	
              Assist
                the Company to identify potential investors and potential prospects
                that
                best meet Company's objectives.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.
      ADVISOR COMPENSATION

    

    In
      return
      for the services contemplated herein for the period commencing October 5, 2006,
      Advisor compensation (the "Advisory Fees") from the Company will
      include:

    

    
      	 	
              (a)

            	
              A
                grant of restricted stock entitling the Advisor to receive Fifty
                Thousand
                (50,000) shares of common stock of the Company on each annual anniversary
                of this agreement. These shares will vest and will be issued to the
                Advisor on the annual anniversary of this
                agreement.

            

    

    

    
      	 	
              (b)

            	
              A
                payment of a quarterly fee (the “Quarterly Fee”) in the amount of Five
                Thousand (5,000) shares of restricted common stock payable Ten (10)
                Days
                following the end of the quarter. For second quarter of the fiscal
                year
                2006, (October 31), the advisor’s fee will be prorated for the period of
                service from the date of this agreement through October 31,
                2006.

            

    

    

    
      	 	
              (c)

            	
              The
                Company shall reimburse the Advisor from time to time for all reasonable
                and customary out-of-pocket business expenses incurred in the performance
                of his duties hereunder, provided that the Advisor shall submit reasonable
                supporting data to substantiate the amount of said expenses. The
                Company
                shall reimburse the Advisor for such within 30 days upon receipt
                of a
                voucher from the Advisor summarizing such expenses. Such expenses
                shall
                not exceed $5,000 without prior approval from the
                Company.

            

    

    

    3.
      TIME
      OF PERFORMANCE OF ADVISORY SERVICES

    

    
      	 	
              (a)

            	
              The
                Advisor and the Company at their sole discretion shall determine
                schedule
                and place of the performance of the advisory services. The Advisor
                shall
                devote a minimum of thirty (30) days annually to the provision of
                the
                advisory services contemplated hereunder. The Advisor agrees to be
                available to the Company during normal business hours, on a regular
                basis,
                as necessary to ensure the timely and professional performance of
                the
                duties of the Advisor hereunder. Furthermore, the Advisor agrees
                to meet
                at least once annually with the Company’s management, the Board and the
                entire Advisory Board. The company will select a date for the Advisory
                board meeting, which shall be at least six months from the date of
                the
                formation of the Advisory Board.

            

    

    

    4.
      COMPANY'S OBLIGATIONS

    

    
      	 	
              (a)

            	
              The
                Company shall make available the information, resources and Company
                personnel and timely perform those tasks necessary to enable Advisor
                to
                provide the services. The Company will keep the Advisor informed
                on a
                current basis of all material developments, which may impact the
                financial
                performance of the Company, its businesses, outlook or financial
                condition.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.
      ADDITIONAL SERVICES

    

    
      	 	
              (a)

            	
              If
                mutually agreed, Advisor may provide additional services to the Company
                not described herein, but Advisor shall not be obligated to provide
                any
                such services unless the nature and terms of such services and the
                compensation to be provided are mutually agreed in advance in
                writing.

            

    

    

    6.
      TERM
      OF AGREEMENT AND PAYMENT UPON TERMINATION

    

    
      	 	
              (a)

            	
              Unless
                terminated earlier in accordance with the provisions of this Section,
                the
                term (the "Term") of this Agreement shall be for a one-year period
                commencing on October 5, 2006 and ending on October 5, 2007. The
                Company
                and Advisor each shall have the right, in its sole and absolute
                discretion, to terminate this Agreement upon thirty (30) day written
                notice.

            

    

    

    
      	 	
              (b)

            	
              The
                Agreement shall automatically be extended for one-year periods on
                each
                annual anniversary date thereafter, unless either party notifies
                the other
                party in writing of its desire to terminate this Agreement at least
                thirty
                (30) days prior to such annual anniversary
                date.

            

    

    

    
      	 	
              (c)

            	
              If
                this Agreement is terminated by the Advisor for any reason before
                the
                one-year period, the Advisor shall be entitled to be paid (i) an
                amount
                equal to all reimbursable expenses the Advisor has incurred in providing
                services hereunder prior to the termination date, and (ii) all Quarterly
                Fees payable to the Advisor pursuant to Section 2(b) and earned by
                the
                Advisor with respect to the advisory services rendered prior to the
                date
                of termination, based on the days of service from the end of the
                previous
                quarter for which Advisor received Quarterly Fees to the date of
                termination. For example, if Advisor served for the period of 60
                days, the
                Advisor would receive 60/91 of Five Thousand (5,000)
                shares.

            

    

    

    
      	 	
              (d)

            	
              If
                the Company terminates this Agreement prior to October 5, 2007 for
                any
                reason, restricted shares granted to Advisor pursuant to Sections
                2(a)
                shall be issued to Advisor on prorated basis based on the months
                of
                service from the start of the agreement to the date of termination.
                For
                example, if the Advisor served for the period of six months, the
                Advisor
                would receive 6/12 of Fifty Thousand (50,000) shares. Furthermore,
                Quarterly Fees payable to Advisor pursuant to Section 2(b) shall
                be paid
                to Advisor on prorated basis based on the days of service from the
                end of
                the previous quarter for which Advisor received Quarterly Fees to
                the date
                of termination. For example, if Advisor served for the period of
                60 days,
                the Advisor would receive 60/91 of Five Thousand (5,000)
                shares.

            

    

    

    
      	 	
              (e)

            	
              Upon
                termination of this Agreement, the Advisor shall return to the Company
                all
                information, records and other materials, which the Company may have
                provided to the Advisor, and the Company shall return to the Advisor
                any
                property of the Advisor not purchased and paid for by the
                Company.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    7.
      INDEPENDENT CONTRACTOR

    

    
      	 	
              (a)

            	
              It
                is understood that the Advisor, in performing its services, is not
                the
                agent for the Company, is not an officer, director, employee, servant,
                or
                representative of the Company, and does not have the actual or implied
                authority to enter into any contracts which bind the Company, without
                the
                prior written consent of the
                Company.

            

    

    

    
      	 	
              (b)

            	
              The
                Advisor shall be responsible for filing all tax returns and paying
                all
                federal, state, local and foreign taxes (including without limitation,
                income taxes, social security tax, employment taxes, unemployment
                taxes
                and self-employment taxes) due with respect to the compensation paid
                to
                the Advisor.

            

    

    

    
      	 	
              (c)

            	
              As
                an independent contractor, the Advisor will not be eligible for the
                benefits provided to regular employees of the Company, including,
                but not
                limited to, health and disability
                insurance.

            

    

    

    8.
      INDEMNIFICATION AND ADVANCEMENT OF EXPENSES

    

    
      	 	
              (a)

            	
              The
                Company agrees, to the fullest extent permitted by law to indemnify
                and
                hold harmless the Advisor, its officers, directors, principals and
                employees and to pay the expenses of each of them in defending any
                threatened or pending civil or criminal action, demand, investigation,
                suit or proceeding as such expenses are incurred and in advance of
                the
                final disposition of any such threatened or pending action, demand,
                investigation, suit or proceeding. The Advisor shall not be responsible
                for any losses, liabilities, damages, claims or expenses (collectively,
                the "Losses") incurred by the Company arising from any acts or omissions
                by the Advisor in connection with the performance of its duties under
                this
                Agreement other than Losses resulting or arising from its gross negligence
                or willful misconduct.

            

    

    

    9.
      CONFIDENTIALITY

    

    
      	 	
              (a)

            	
              Except
                in the course of the performance of its duties hereunder or as may
                be
                required by applicable law or by a governmental order, decree, regulation
                or rule (provided that the Advisor shall give written notice to the
                Company prior to such disclosure), the Advisor agrees that it shall
                not
                disclose any trade secrets, knowhow or other proprietary information
                not
                in the public domain and learned as a result of this Agreement unless
                and
                until such information becomes generally known other than through
                the act
                or omission of the Advisor.

            

    

    

    10.
      ARBITRATION.

    

    
      	 	
              (a)

            	
              The
                Company and Advisor shall negotiate in good faith to resolve any
                disputes
                between themselves in connection with this engagement. In the event
                of a
                failure to resolve the dispute, the dispute shall be resolved through
                binding arbitration in Houston, Texas. Any matter to be submitted
                to
                arbitration hereunder may be submitted to arbitration by either the
                Advisor or the Company. Any matter submitted to arbitration shall
                be
                determined by a panel of three arbitrators unless otherwise agreed
                by the
                parties. Arbitrators shall be chosen by mutual agreement of the parties
                or, failing such agreement within 60 days of the request for arbitration,
                each party shall appoint one arbitrator and the third arbitrator
                shall be
                appointed by the Senior United States District Judge for the Southern
                District of Texas, acting in his individual
                capacity.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              (b)

            	
              In
                the event of the failure or refusal of the parties or such judge
                to
                appoint the arbitrator(s) within 120 days of the request for arbitration,
                the arbitrator shall be selected in accordance with the rules of
                the
                American Arbitration Association. The arbitration shall be conducted
                in
                accordance with the rules of the American Arbitration Association.
                Any
                award by the arbitrator(s) shall be final, binding and not appealable,
                and
                judgment may be entered thereon in any court of competent jurisdiction.
                A
                dispute shall be deemed to have arisen when either party notifies
                the
                other party in writing to that
                effect.

            

    

    

    11.
      GOVERNING LAW

    

    
      	 	
              (a)

            	
              This
                Agreement shall be deemed to be a contract made under the laws of
                the
                State of Texas and for all purposes shall be construed in accordance
                with
                the laws of said State.

            

    

    

    12.
      ASSIGNMENT

    

    
      	 	
              (a)

            	
              This
                Agreement shall not be assignable by any party, except to successors
                to
                all or substantially all of the business of either party, for any
                reason
                whatsoever without the prior written consent of the other party,
                which
                consent may not be arbitrarily withheld by the party whose consent
                is
                required.

            

    

    

    13.
      MISCELLANEOUS

    

    
      	 	
              (a)

            	
              Notice
                given under this Agreement shall be given when delivered in person
                or by
                registered or certified mail, postage prepaid, return receipt requested
                or
                by other delivery service providing evidence of receipt, to the party
                to
                whom such notice is to be given at the following address or at such
                other
                address as either party shall hereafter give notice of to the other
                in
                writing:

            

      	 	 	 

      	 	 	If to the Company to:

      	 	 	 

      	 	 	
              True
                North Energy Corporation

              1400
                Woodloch Forest Drive, Suite 530

              The
                Woodlands, Texas 77380

              Attn:
                John Folnovic

            

      	 	 	 

      	 	 	If to Advisor to:

      	 	 	 

      	 	 	
              ____________________

              ____________________

              ____________________

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              (b)

            	
              This
                Agreement shall not restrict or prevent Advisor from pursuing other
                business interests or providing advisory or other services to other
                parties while this Agreement is in
                effect.

            

    

    

    We
      look
      forward to working with you to develop and execute financial and business
      strategies to enhance shareholder value at True North Energy.

    

    Please
      confirm that the foregoing is in accordance with your understanding by signing
      and returning the enclosed duplicate of this letter.

    

    Very
      truly yours,

     

     

    
      	TRUE NORTH ENERGY
              CORPORATION	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	
              
John
              I. Folnovic, President and	 	 	
            
	 	Chief
              Executive
              Officer	 	 	 

    

    
 

    Confirmed
      and Agreed to this __ day of October, 2006

    

    
       

      
        	By:	 	 	 	 
	Name:	
                

              	 	 	
              
	Title:Unassociated Document

    EXHIBIT
      10.2

    

    (Savant
      Alaska LLC Letterhead)

    

    November
      13, 2006

    Via
      Facsimile (832) 553-7244 and Email

    

    

    

    Mr.
      John
      I. Folnovic

    True
      North Energy Corp.

    1200
      Smith Street, 16th
      Floor

    Houston,
      TX 77002

    

    
      	Re:	Proposal
              to Pool Acreage and Participate / Bottom Hole Contribution
              Request
	 	
              Kupcake Prospect

              North Slope,
                Alaska

            

    

    

    Gentlemen:

    

    Subject
      to final management approval and adequate industry support, Savant Alaska LLC
      (“Savant”) hereby proposes the drilling of a test well within the captioned
      Kupcake Prospect. On or before March 15, 2007, Savant shall commence, or cause
      to be commenced, actual drilling operations on a test well at a location in
      Section 29, T11N, R18E. Said test well shall be diligently drilled to a depth
      of
      11,000’ or to a depth sufficient to test the Kemik formation, whichever is the
      lesser depth. In support of said test well, it’s hereby requested that True
      North Energy Corp. (“True North”) grant Savant a bottom hole contribution or
      pool acreage and participate in the well, under the following general terms
      and
      conditions:

    

    Option
      #1: Bottom Hole Contribution:

    

    
      	 	
              1.)

            	
              By
                drilling and completing the test well as described above, either
                as a well
                capable of producing in commercial quantities or as a dry hole, True
                North
                shall pay Savant One Million Dollars ($1,000,000.00) as a Bottom
                Hole
                Contribution. 

            

    

    

    
      	 	
              2.)

            	
              True
                North shall receive all information obtained from the test well,
                including
                drilling reports, completion information and test information.
                

            

    

    

    
      	 	
              3.)

            	
              In
                the event Savant is unable to timely spud the test well due to the
                inability to secure governmental permits, seasonally restrictive
                permits,
                rig availability or force majeure conditions, the drilling date provided
                for above shall be extended to allow Savant a reasonable amount of
                time to
                prudently commence operations upon clearance of the
                impedance.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Option
      #2: Pool Acreage and Participate

    

    
      	 	
              1.)

            	
              True
                North and Savant will pool their leasehold on a net acreage basis,
                as
                outlined on the attached Exhibit “A”, and jointly drill the test well.
                Working interests within the pooled area would be “approximately” Savant -
                91.55% and True North - 8.45%. Savant’s actual lease acres won’t be known
                until actual lease issuance by the State of Alaska expected in December.
                Net revenue interests will be equalized at 78.33% and Savant will
                be the
                operator of the pooled area.

            

    

    

    
      	 	
              2.)

            	
              Any
                outside third party support which is secured for the drilling of
                the test
                well shall be shared proportionately between True North and
                Savant.

            

    

    

    
      	 	
              3.)

            	
              In
                the event the test well is completed as a well capable of producing
                in
                commercial quantities and justifies field development, Savant shall
                form a
                Development Unit and an appropriate Participating Area. The Pooled
                Area
                will be included in said Development Unit and Participating Area
                in
                accordance with the terms of the Development Unit.
                

            

    

    

    It’s
      understood that the general terms contained herein will be incorporated into
      an
      appropriate formal contract and in the event of any conflict between the terms
      hereof and those of the formal contract, the terms of the formal contract shall
      control.

    

    Please
      indicate your company’s election of the proposed options in the space provided
      below and return one (1) executed copy of this letter to the attention of the
      undersigned. Savant would like to thank you in advance for your consideration
      of
      this proposal and your expeditious response as we continue to move forward
      in
      pursuit of securing a rig contract and the required drilling permits for the
      test well. 

     

    

    Very
      truly yours,

    

    
      	 	 	 	 
	/s/ Larry
              D.
              Lillo	 	 	 
	Larry D. Lillo	 	 	
            
	Vice
              President
              Land	 	 	 

    

     

    cc: PS,
      GV,
      EO, KE

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    True
      North Energy Corp.

    

     

    By: 
      /s/ John
      Folnovic                                                

    

    Printed
      Name: John
      Folnovic                                    

    

    Title:
      President and Chief Executive
      Officer           

    

    Date:
      November 22,
      2006                                            

     

     

    

    

    LDL/2006/True
      North Prop to Pool -Bottom Hole Contrib. Req. 11-11-06

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