Document:

Exhibit 10.1

    
      

    

    

      EMPLOYMENT
        AGREEMENT

    This
      Employment Agreement (this “Agreement”)
      is entered into
      effective as of October 31,
      2005
      and is between Goodtime Action Amusement Partners, LP, a Texas limited
      partnership (“Employer”), and Christopher Domijan (“Domijan").

    

    
      	
              1.

            	
              DEFINITIONS.

            

    

    

    As
      used
      in this Agreement, the following terms have the following meanings:

    

    (a)    “Affiliate”means,
      with respect to any entity, any other corporation, organization, association,
      partnership, sole proprietorship or other type of entity, whether incorporated
      or
      unincorporated, directly or indirectly controlling or controlled by or under
      direct or indirect
      common control with such entity.

    

    (b)    “Board”means
      the
      Board of Directors of Employer, or other governing body of Employer, and, in
      addition, upon the occurrence of the events described in Paragraph 2, the Board
      of Directors of the Successor Company.

    

    (c)    “Business”means
      the
      Bingo distribution in Texas and the operation of Amusement centers with
      Amusement With Prize machines.

    

    (d)    “Cause”means
      (1)
      any material violation by Domijan of this Agreement, (2) any act
      or
      omission by Domijan involving fraud, willful misconduct or materially injurious
      actions on the part of Domijan in respect of the Business, (3) Domijan’s conviction,
      of
      any felony crime or any crime that involves theft, fraud, moral turpitude or
      violation of federal
      or state securities law, (4) Domijan’s negligence in the performance of his
      duties under
      this Agreement, or (5) the continued failure by Domijan to substantially perform
      his duties hereunder, after demand for substantial performance has been
      delivered by Employer that specifically identifies the manner in which Employer
      believes Domijan has not substantially performed his duties.

    

    (e)    “Change
      of Control”means
      a
      change resulting in any Person or a group of related
      Person, other than Employer and the shareholders of Employer immediately prior
      to
      the
      Change of Control, (1) acquiring directly or indirectly, more man 50% of the
      total voting power of all classes then outstanding voting stock (or other
      rights, if Employer is not
      a
      corporation) of Employer, or (2) electing a majority of the members of the
      Board
      of Directors of Employer. For the purposes of this Agreement, a Change of
      Control shall not include
      the actions or activities contemplated in Paragraph 2, and the assignment of
      this Agreement to the Successor Company.

    

    (f)    “Code”means
      the
      Internal Revenue Code of 1986, as amended.

    

    (g)    “Employment
      Termination Date”means
      the
      effective date of termination of Domijan’s
      employment as established under Paragraph 7(f).

    

    (h)    “Good
      Reason”means
      any
      of the following actions if taken without Domijan’s prior
      written consent: (1) any material failure by Employer to comply with its
      obligations under
      Paragraph 5 (Compensation and Related Matters) after giving Employer written
      notice and Employer’s failure to rectify such material failure within thirty
      days of the notice; (2) a Change of Control, except as permitted in Paragraph
      l(e) or as contemplated in Paragraph 2; (3) any demotion of Domijan as evidenced
      by a substantial reduction in Domijan’s
      responsibilities, duties, compensation or benefits such that Domijan no longer
      is occupying an executive position; or (4) except as provided in Paragraph
      6,
      the relocation
      of Domijan’s place of employment to a location 50 miles or more from the
location
      where he performs his duties.

     

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                1

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (i)    “Inability
      to Perform”means
      and
      shall be deemed to have occurred if Domijan has
      been
      determined under Employer’s long-term disability plan, if any, to be eligible
      for long-term disability benefits. In the absence of such a plan or
      determination, regardless of the
      reason, “Inability to Perform” means Domijan’s inability, despite any reasonable
accommodation
      required by law, to perform the essential functions of his position because
      of
      an illness, disability, or injury for more than 90 days during any 12-month
      period.

    

    (j)    “Person”means
      an
      individual, corporation, partnership, limited liability company,
      association, trust, trustee in bankruptcy or other entity or
      organization.

    

    
      	
              2.

            	
              SUCCESSOR
                COMPANY.

            

    

    

    Employer
      is a limited partnership, organized under the laws of Texas; however,
Employer
      contemplates, during calendar year 2006, forming a new corporation or entity,
      which
      new
      corporation or entity (“Successor Company”), will acquire, by merger, transfer
      or otherwise, all of the assets, rights, titles, obligations and duties of
      Employer, including,
      without limitation, the rights, titles, obligations and duties of Employer
      under
and
      pursuant to this Agreement. Upon the formation of the Successor Company, unless
      this
      Agreement has been otherwise terminated, Successor Company shall, immediately
      assume all the rights, titles, obligations and duties of Employer hereunder,
      and
      all references to Employer shall, mutatis
      mutandis, be
      deemed
      to be references to Successor Company,
      except and to the extent necessarily modified by the provisions of this
      Agreement. The formation of the Successor Company shall occur upon the filing
      of
      the Articles
      of Incorporation or like instrument or instruments with the governmental entity
      with
      which such instruments are required to be filed in the jurisdiction of Successor
      Company’s formation, and shall be a permissible Change of Control which shall
      not constitute
      “Good Reason,” as defined in Paragraph l(h).

    

    
      	
              3.

            	
              EMPLOYMENT
                AND TERM.

            

    

    

    Employer
      agrees to employ Domijan and Domijan agrees to be employed, in the position
      and
      with the duties and responsibilities set forth in Paragraph 4, and upon the
      other terms and
      conditions set out in this Agreement.

    

    Domijan’s
      employment shall commence on the effective date of this Agreement and shall
      be
      for a term commencing upon the Effective Date and ending at the close of
      business on May
      1,
      2007 (the “Employment Term”), unless sooner terminated as provided in this
      Agreement Upon the expiration of the Employment Term, Domijan’s employment shall
nevertheless
      continue, on a month to month basis, until terminated as provided in this
Agreement
      or until an extension, amendment or novation of this Agreement occurs and is
      executed by both Domijan and Employer.

    

    
      	
              4.

            	
              POSITION
                AND DUTIES.

            

    

    

    During
      his employment by Employer, Domijan shall serve as the Chief Financial Officer
      of
      Employer, and shall also have the title of Executive Vice President of Employer;
      provided, however, that if Employer, as a limited partnership, does not have
      offices or titles
      equivalent thereto, then Domijan shall, nevertheless, have such office and
      title
      as is commensurate
      with the title and position of Chief Financial Officer and Executive Vice
      President, and upon the formation of the Successor Company, shall serve in
      such
capacities;
      provided, however, that such titles and offices shall be confirmed in the
      organizational meeting of the Board of the Successor Company in which the
      election of officers is first held and confirmed. In such capacity, Domijan,
      subject to the ultimate control
      and direction of the Board, shall generally be responsible for financial records
      of the Employer, including the planning and review of capital funding, working
      capital funding and other financial arrangements of Employer (and, to the extent
      necessary, those funding requirements which will be necessary or desirable
      for
      the formation of the Successor
      Company), risk management and insurance for the Employer and, if necessary,
      before,
      and thereafter, upon, the formation of the Successor Company, investor relations
      for
      the
      Successor Company. In addition, Domijan shall have such other duties, functions,
      responsibilities
      and authority as are from time to time delegated to Domijan by the Board;
      provided, however, that such duties, functions, responsibilities, and authority
      are reasonable and customary for a person serving in the same or similar
      capacity of an enterprise
      comparable to Employer.

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                2

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    During
      his employment by Employer, Domijan shall devote his full time, skill and
      attention to the business and affairs of Employer to the extent necessary to
      discharge the duties
      and responsibilities delegated and assigned to Domijan in or pursuant to this
      Agreement,
      except for usual, ordinary and customary periods of holiday or vacation and
      absence
      due to illness or disability.

    

    In
      connection with Domijan’s employment by Employer under this Agreement, Domijan
shall
      be
      based at the offices of Employer in Houston, Texas, but may be relocated to
      Employer’s offices in the Dallas, Texas metropolitan area (“Dallas”), as
      provided in Paragraph 6. Domijan also will engage in such travel as the
      performance of Domijan’s duties in the business of Employer may
      require.

    

    All
      services that Domijan may render to Employer in any capacity during his
      employment by Employer shall be deemed to be services required by this Agreement
      and the
      consideration for such services is that provided for in this
      Agreement.

    

    
      	
              5.

            	
              COMPENSATION
                AND RELATED MATTERS.

            

    

    

    (a)    Base
      Salary. Employer
      shall pay to Domijan for his services under this Agreement an annual base salary
      (“Base Salary”). The Base Salary on the effective date of this Agreement shall
      be at least $150,000.00. The Base Salary is subject to annual adjustment at
      the
      discretion of the Board, but in no event shall Employer pay Domijan a Base
      Salary less than that set forth above without the written consent of Domijan.
      The Base
      Salary shall be payable bi-monthly, in accordance with the general payroll
      practices of
      Employer, and shall be subject to such withholding for taxes as may be required
      by applicable law, rule or regulation. Payment of any or all installments of
      the
      Base Salary shall
      be
      effected by check of Employer or by direct deposit into one or more accounts,
      as
      directed by Domijan, which may be modified or changed, from time to time, as
      Domijan may
      elect.

    

    (b)    Stock
      or Equity. Commencing
      on January 31, 2006, and upon the last day of each three
      month period thereafter until April 30, 2007, Domijan shall become vested in
      a
      limited partnership interest equal to .5% of the total interests of the Company.
      Upon the formation of the Successor Company, Domijan’s limited partnership
      interests shall immediately
      become converted to .5% of the total issued and outstanding shares of the
      Successor Company (or such other, like equity interests if the Successor Company
      is not a corporation) multiplied by the number of three month periods in which
      he was entitled to receive a limited partnership interest. By way of example,
      if
      the Successor Company is formed
      on
      July 15, 2006, Domijan would be entitled to receive 1.5% of the issued and
      outstanding
      shares of the Successor Company (three quarterly periods) and on July 31, 2006,
      would be entitled to an additional .5%of
      the
      issued and outstanding shares of the Successor Company. After five quarterly
      periods, Domijan’s right to equity interests, whether
      limited partnership, shares or otherwise, shall terminate, but on the quarter
      ended on
      April
      30, 2007 if still employed by Employer or Successor Company, Domijan shall
      be
      entitled to an additional 2.5% equity interest, whether limited partnership,
      shares or otherwise, so that on April 30, 2007, unless this Agreement is earlier
      terminated, Domijan shall have received a total of 5% of the equity interests
      in
      Employer, whether limited partnership, shares or otherwise. If Employer, or
      the
      Successor Company, performs
      a reverse merger, the amount of stock ownership in Successor Company would
      be
      diluted pro rata the same as the other shareholders of Employer, i.e. the
      percentage ownership of the Successor Company will be less than 5% because
      of
      the percentage of ownership by a third party or parties of some portion of
      the
      total issued and outstanding shares.
      Any stock or shares issued to Domijan shall, to the extent possible, be free
      of
      any restrictions;
      provided, however, that if the Successor Company, upon advice of counsel, deems
      it advisable to restrict the sale of any stock or shares, then Domijan’s stock
      shall be restricted, but only and to the extent that stock or shares of other
      officers or members of the Board of the Successor Company are restricted. If
      Employer remains a private company, then no registration of Domijan’s stock
      shall be required. In any event, upon the
      final
      vesting of any equity interests, whether limited partnership, shares or
      otherwise, the
      same
      shall be distributed to Domijan upon his written request for the
      same.

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                3

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)    Incentive
      Bonus. During
      his employment by Employer, Domijan will be eligible for an incentive bonus
      (the
“Incentive Bonus”) at the discretion of the Board, but which shall
      be
      in accordance with bonuses paid by Employer to other employees holding positions
      with Employer or its affiliates that are similar to Domijan’s
      position.

    

    (d)    Employee
      Benefits. During
      his employment by Employer, Domijan shall be entitled to participate in all
      employee benefit plans, programs, and arrangements that are generally made
      available by Employer to its similarly situated employees, including
without
      limitation, Employer’s life insurance, disability and health plans. Domijan
      agrees to
      cooperate and participate in any medical or physical examinations as may be
      required by any insurance company in connection with the applications for any
      life or disability insurance policies. Employer agrees that Employer will
      maintain life insurance for Domijan,
      at Employer’s cost, the amount of which shall be $500,000, and the beneficiary
of
      which
      shall be such Person as Domijan may select, and which beneficiary may be changed
      by Domijan, from time to time and at any time, subject only to any conditions
      set forth in the policy or policies. Employer shall also provide that, after
      the
      Employer Termination
      Date, Domijan may continue any life insurance or disability plans policies
      at
Domijan’s
      sole cost.

    

    (e)    Expenses.
      Domijan
      shall be entitled to receive reimbursement for all reasonable business
      expenses incurred by Domijan in performing his duties and responsibilities
      under
      this Agreement, consistent with Employer’s policies or practices for
reimbursement
      of expenses incurred by other Employer senior executives.

     

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                4

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)    Vacations.
      During
      Domijan’s employment by Employer, Domijan shall be eligible
      for vacation, sick pay, and other paid and unpaid time off in accordance with
      the policies
      and practices of Employer; provided, however, that the amounts of paid vacation
      time
      to
      which Domijan shall be entitled shall not be less than four weeks per calendar
      year.
      The
      vacation time shall accrue during any calendar year during the Employment Term,
      and any unused vacation time shall be carried forward in the next and succeeding
      calendar
      years, until actually used for vacation by Domijan or compensation in lieu
      of
vacation
      time is accepted by Domijan. Domijan agrees to use his vacation and other paid
      time
      off
      at times that are (1) consistent with the orderly performance of his duties
      and
responsibilities
      and (2) mutually convenient for Employer and Domijan.

    

    
      	6.	
              RELOCATION.

            

    

    

    (a)    Relocation
      to Dallas, Texas. At
      any
      time before the termination of this Agreement, Employer may request that Domijan
      relocate to Dallas.

    

    (b)    Relocation
      Expenses. If
      Employer requests that Domijan relocate to Dallas, then Employer
      shall pay all reasonable relocation expenses, including, but not limited
      to:

     

    (1)    The
      actual costs and expenses incurred by Domijan in packing, transporting
      and relocating all household goods and furnishings from Houston, Texas
      to
      Dallas, including the costs and expenses of any cartage, moving or
      transportation company hired to perform those services, and any insurance
thereon;

    

    (2)    The
      costs
      and expenses of any interim housing or hotel required during the time
      that
      Domijan’s household goods and furnishings are being packed, transported or
      unpacked; and

    

    (3)    Any
      damage or injury to Domijan’s household goods and furnishings which are not
      covered by any insurance provided by the cartage, moving or transportation
      company, or which claims are disallowed by the cartage, moving or transportation
      company, conditioned however, on Domijan obtaining damage insurance
      coverage.

    

    (c)    Sale
      Expenses For House. If
      Domijan should elect to sell his home in Houston and
      purchase a home in Dallas, then Employer shall reimburse Domijan for the
      following expenses,
      to the extent allocated to Domijan upon a sale or purchase:

    

    (1)    All
      sales
      or brokerage commissions (on a sale only);

    

    (2)    All
      ordinary and customary closing costs (other than ad valorem taxes and
insurance
      costs prorated at the time of closing), including, without limitation, all
      recording
      costs, attorney’s fees, courier costs and other fees or costs required by
the
      title
      company or companies; and

    

    (3)    All
      title
      insurance costs, and any additional insurance costs for flood insurance, if
      necessary, but in the latter case, only for the period of one year.

    

    Employee
      shall not be responsible for any buyer allowances, lender related fees, or
      non-routine
      closing costs.

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                5

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)    Interim
      Housing Costs. If,
      for
      the convenience of Employer, Domijan should be requested
      to relocate to Dallas before the sale of Domijan’s residence in Houston, Domijan
      may elect to postpone the sale of the residence until a time convenient for
      Domijan.
      Domijan shall, nevertheless, relocate to Dallas, Texas, but Employer shall
      provide, or reimburse Domijan for, the costs of an apartment or other residence
      in Dallas not to exceed $1,500.00 per month, as well as any long distance
      telephone calls made by Domijan to Houston, Texas. Employer shall also provide,
      or reimburse Domijan for, weekly travel between Dallas, Texas and Houston,
      Texas, on weekends or holidays not to exceed
      $250.00 per trip. Employer shall not be required to provide, or reimburse
Domijan
      for, any payments or allowances permitted under this Paragraph 6(d) in excess
      of
      four
      months.

    

    (e)    Gross
      Up for Tax Purposes. If
      any
      expenses or reimbursements to Domijan are included, or upon advice of Domijan’s
      accountants, should be included, as part of Domijan’s
      income, and federal income taxes are due in respect of the additional amount
      attributable to those expenses or reimbursements, then Employer shall, for
      the
      year in which
      such taxes are due, increase the Base Salary by an amount equal to the taxes
      which are
      attributable to those expenses or reimbursements, as reasonably demonstrated
      by
Domijan’s
      accountant. The provisions of this Paragraph 6(e) shall survive the termination
      of
      this
      Agreement, howsoever it may occur.

    

    
      	
              7.

            	
              TERMINATION
                OF EMPLOYMENT.

            

    

    

    (a)    Death.
      Domijan’s
      employment shall terminate automatically upon his death; provided,
      however, that this Paragraph 7(a) shall not release or otherwise modify
Employer’s
      obligations following Domijan’s death as provided for elsewhere in this
Agreement.

    

    (b)    Inability
      to Perform. Employer
      may terminate Domijan’s employment for Inability to Perform; provided, however,
      that this Paragraph 7(b) shall not release or otherwise
      modify Employer’s obligations following Domijan’s Inability to Perform as
      provided for in Paragraph 8(a) of this Agreement.

    

    (c)    Termination
      by Employer for Cause. Employer
      may terminate Domijan’s employment
      for Cause by providing Domijan with a Notice of Termination as set out in
Paragraph
      7(e). To exercise its right to terminate Domijan for Cause as defined in
      Paragraph l(d)(4), however, Employer must first provide Domijan with a
      reasonable opportunity to cure the conduct or circumstances that Employer
      contends constitutes Cause under that subsection, unless no amount of time
      could
      cure the conduct.

    

    (d)    Termination
      by Domijan for Good Reason. Domijan
      may terminate his employment
      for Good Reason. To exercise his right to terminate for Good Reason,
Domijan
      must first provide written notice to Employer of his belief that Good Reason
      exists,
      and that notice shall describe the circumstances believed to constitute Good
      Reason. Employer shall have thirty days in which to attempt to satisfy Domijan
      that Good
      Reason does not exist or no longer exists, or that Employer is making a diligent
      effort
      to
      cure the conduct relating to Domijan’s concerns. Employer shall have a
      reasonable time to cure any asserted Good Reason submitted by
      Domijan.

    

    (e)    Notice
      of Termination. Any
      termination of Domijan’s employment by Employer or by Domijan (other than a
      termination pursuant to Paragraph 7(a)) shall be communicated
      by a Notice of Termination. A “Notice of Termination” is a written notice
stating
      that Domijan’s employment is terminated and that must (1) indicate the specific
      termination provision in this Agreement relied upon; (2) in the case of a
      termination for Inability
      to Perform, Cause, or Good Reason, set forth in reasonable detail the facts
      and
      circumstances claimed to provide a basis for termination of Domijan’s employment
      under the
      provision invoked; and (3) if the termination is by Domijan under Paragraph
      7(e), or by
      Employer for any reason, specify the Employment Termination Date.

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                6

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)    Employment
      Termination Date. The
      Employment Termination Date, whether occurring
      before or after a Change of Control (except for a Change of Control in respect
      of
      a
      Successor Company), shall be as follows: (1) if Domijan’s employment is
      terminated by
      his
      death, the date of his death; (2) if Domijan’s employment is terminated by
      Employer because of his Inability to Perform or for Cause, the date specified
      in
      the Notice of Termination, which date shall be no earlier than the date such
      notice is given; (3) if Domijan’s employment is terminated by Domijan for Good
      Reason, the date thirty days after the Notice of Termination is given and
      Employer has not cured the Good Reason or has not diligently taken steps to
      do
      so; or (4) if the termination is under Paragraph 7(e), the date specified in
      the
      Notice of Termination, which date shall be no earlier than 30 days after the
      date such notice is given.

    

    (g)    GoodFaith.
      In
      making
      determinations regarding the existence of appropriate grounds
      for the termination of the employment relationship and the proper compensation
      in the event of such a termination, both Domijan and Employer shall exercise
      good faith toward
      one another.

    

    
      	
              8.

            	
              COMPENSATION
                UPON TERMINATION OF EMPLOYMENT.

            

    

    

    (a)    Payments
      Upon Termination for Any Reason. If
      Domijan’s employment is terminated by Domijan or Employer for any reason,
      Employer shall pay to Domijan (or in the case of termination of employment
      upon
      Domijan’s death, to such person as Domijan shall designate in a written notice
      to Employer or, if no such person is designated, to his estate) any unpaid
      portion of Domijan’s Base Salary through the Employment Termination Date (the
“Compensation Payment”), any earned but unused vacation (the “Vacation
      Payment”), any unreimbursed business expenses (the “Unreimbursed
      Business Expense Payment”) and any unpaid premiums for life insurance
until
      May
      1, 2007 as well as the health plan or insurance payments provided for in
      Paragraph 8(d) (“Additional Payments”). Domijan shall not be entitled to any
      payments from Employer other than the Compensation Payment, the Vacation Payment
      and the Unreimbursed Business Expense Payment if employment is terminated by
      Employer for Cause or by Domijan without Good Reason.

    

    (b)    Severance
      Payment. In
      addition to the payments set forth in Paragraph 8(a), if Domijan’s
      employment is terminated, by Employer without Cause or by Domijan with
Good
      Reason, Employer shall pay to Domijan a severance payment, equal to the lesser
      of (1)
      the
      number of months remaining in the term of his employment or (2) six monthly
      payments
      equating to the monthly salary being paid to Domijan at the time, less, in
      either instance,
      the appropriate withholding amounts normally taken out of each check. To the
      extent that Domijan has not been issued the equity interests which would have
      otherwise been due to him, Employer shall issue to Domijan (or in the case
      of
      termination of employment upon Domijan’s death, to such person as Domijan shall
      designate in a written
      notice to Employer or, if no such person is designated, to his estate) any
      and
      all equity
      interests which are then due, computed as set forth in Paragraph
      5(b).

     

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                7

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)    Change
      of Control Gross-Up Payment. In
      the
      event that it is determined that any payment
      (other than the Gross-Up Payment provided for in this Paragraph 8(c)) or
distribution
      by Employer or any of its Affiliates to or for the benefit of Domijan, whether
      paid
      or
      payable or distributed or distributable pursuant to the terms of this Agreement
      or otherwise pursuant to or by reason of any other agreement, policy, plan,
      program or arrangement, including without limitation any stock option or similar
      right, or the lapse or
      termination of any restriction on or the vesting or exercisability of any of
      the
      foregoing (a
      “Payment”), would be subject to the excise tax imposed by Section 4999 of the
      Code (or
      any
      successor provision thereto) by reason of being considered “contingent on a
change
      in
      ownership or control” of Employer, within the meaning of Section 280G of the
Code
      or
      any successor provision thereto (such tax being hereafter referred to as the
      “Excise Tax”), then Domijan will be entitled to receive an additional payment or
      payments (a “Gross-Up Payment”). The Gross-Up Payment will be in an amount such
      that, after payment by Domijan of all taxes, including any Excise Tax imposed
      upon the Gross-Up
      Payment, Domijan retains an amount of the Gross-Up Payment equal to the
Excise
      Tax imposed upon the Payment. For purposes of determining the amount of the
      Gross-Up
      Payment, Domijan’s estimated federal income for tax rate shall be used for the
year
      in
      which the Gross-up Payment will be made. The determination of whether an
Excise
      Tax would be imposed, the amount of such Excise Tax, and the calculation of
      the
amounts
      referred to in this Paragraph 8(c) will be made at the expense of Employer
      by
      Employer’s regular independent accounting firm (the “Accounting Firm”), which
      shall provide
      detailed supporting calculations. Any determination by the Accounting Firm
      will
be
      binding upon Employer and Domijan.

    

    (d)    Health
      Insurance. If
      Domijan’s employment with Employer or any Affiliate of Employer
      ends on account of (1) a termination by Employer for any reason other than
      Cause, or (2) a termination by Domijan for Good Reason, Domijan will receive,
      in
addition
      to any other payments due under this Agreement, the following benefit: if,
      at
      the time
      his
      employment ends, Domijan participates in one or more health plans offered by
      Employer and Domijan is eligible for and elects to receive continued coverage
      under such plans in accordance with the Consolidated Omnibus Budget
      Reconciliation Act of 1985 (“COBRA”) or any successor law, Employer will
      reimburse Domijan during the remainder of the Employment Term following the
      Employment Termination Date or, if shorter,
      the period of such actual COBRA continuation coverage, the difference between
      the
      total
      amount of the monthly COBRA premiums actually paid by Domijan for such
continued
      health plan benefits and the total monthly amount of the premiums charged to
      active
      senior executives of Employer for the same health insurance coverage. Provided,
      however, that Employer’s reimbursement obligation under this Paragraph 8(d)
      shall terminate
      upon the earlier of (a) the expiration of the time period(s) described above,
      (b) the
      date
      Domijan becomes eligible for health insurance coverage under a subsequent
employer’s
      plan which occurrence Domijan shall promptly report to Employer, or (c) the
      date
      of
      death of Domijan.

    

    (e)    Preservation
      of Benefits. Nothing
      in this Agreement is intended to limit any earned,
      vested benefits (other than any entitlement to severance or separation pay,
      if
      any) that
      Domijan may have under the applicable provisions of any benefit plan of Employer
      in
      which
      Domijan is participating at the time of the termination of
      employment.

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                8

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)    Timing
      of Payments. The
      Compensation Payment, the Vacation Payment, and the Unreimbursed Business
      Expense Payment will be paid within seven calendar days of the termination
      of Domijan’s employment. The Severance Payment will be paid as set forth
in
      8(b)
      above, subject to Paragraph 8(g). The payment of life insurance premiums, if
      any, shall
      be
      paid by the due date. Subject to Paragraph 8(g), the reimbursement related
      to
      health insurance provided in Paragraph 8(d), if any, will be paid within seven
      calendar days
      of
      the date Domijan pays any applicable COBRA premium, provided that Employer
      may,
      at
      its option, pay all or part of the reimbursement for multiple months in advance
      of such dates.

    

    (g)    Compliance
      with Code Section 409A. Any
      provision of this Agreement to the contrary notwithstanding, all compensation
      payable pursuant to this Agreement that is subject to Section 409A of the Code
      shall be paid on the earliest possible date on or after the time otherwise
      specified for payment that meets the requirements of Section 409A of
the
      Code
      and any related rules, regulations or other guidance.

    

    
      	
              9.

            	
              NONCOMPETITION.

            

    

    

    From
      and
      after the effective date of this Agreement and for a period ending on May 1,
      2008 or one year after termination, whichever is later in time, except in
      connection with the performance of services pursuant to this Agreement and
      except for the equity interests which have been acquired by Domijan pursuant
      to
      Paragraph 5(b), Domijan will not, directly or indirectly, (1) own, manage,
      operate, construct, finance, join, control or participate in the ownership,
      management, operation or control of, or be employed or engaged as an agent
      or
      consultant by, any Person, which is the same as, substantially the same as,
      or
      substantially similar to the Business or (2) solicit any customers or employees
      of Employer as of the date of the
      termination of this Agreement, whether by the expiration of the Employment
      Term
      or earlier as permitted herein, for any business related to the Business. For
      the purposes of this Agreement, a Person shall be deemed to be in competition
      with Employer and its Affiliates if the products or services
      of such Person, company or business entity are substantially similar in function
      or capability to the products or services being offered, developed, manufactured
      or sold in connection with the Business. The mere passive ownership, direct
      or
      indirect, of not more than 2% of the outstanding stock of any publicly traded
      company shall not be a violation of this Paragraph. Notwithstanding anything
      herein to the contrary, the restrictions in this Paragraph shall
      apply only to the reasonable and limited geographic area consisting of the
      State
      of Texas or any other state in which Employer or Successor Company is doing
      business. Domijan recognizes and
      agrees that any violation of the covenants contained in this Paragraph will
      result in irreparable harm to Employer and its Affiliates for which money
      damages will not alone be an adequate remedy and that Employer shall be entitled
      to equitable relief without the necessity of posting
      any bond therefor. Domijan acknowledges and agrees that:(a) the scope of this
      Paragraph in
      time,
      geography and types and limits of activities is reasonable and no greater than
      required for the protection of the legitimate business interests of Employer
      and
      its Affiliates in the Business;
      (b) it imposes no undue hardship on Domijan; and (c) if this Paragraph is found
      by any court
      having jurisdiction to be too broad in scope, whether as to activities, time
      period, geographic area or otherwise, this Paragraph will nevertheless remain
      effective but will be considered amended to the extent considered by such court
      to be reasonable, and will be fully enforceable
      as so amended.

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                9

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              10.

            	
              PROTECTION
                OF CONFIDENTIAL INFORMATION.

            

    

    

    Domijan
      acknowledges that, in the course of performing his duties under this Agreement,
      he
      will
      obtain information about the business of the Employer, including but not limited
      to, customer
      and prospective customer lists and information, business contact or vendor
      information, price structures, price lists, sales and other market information,
      market studies, financial statements, sales or profitability reports, documents
      pertaining to corporate organization of the Employer, software programs,
      writings, files, documents, literature, data, information,
      invoices, correspondence, records, notes, and memoranda regardless of the form
      in which such information is preserved or maintained, whether by document,
      computer disc, videotape, audiotape, or otherwise. Any information described
      in
      the preceding sentence shall be hereinafter called the “Confidential
      Information”; provided, however, that any such information possessed
      by Domijan prior to the date of his employment hereunder shall not constitute
      “Confidential Information” hereunder.

    

    Domijan
      shall treat any Confidential Information as trade secrets and shall hold such
      information in
      trust
      and confidence for the sole use and benefit of the Employer. Domijan shall
      not,
      during the term of this Agreement or any time thereafter, directly or through
      any third party, disclose the Confidential Information in whole or in part
      to
      any person, firm, corporation or other entity, for any reason or purpose
      whatsoever, or use such information, other than solely in furtherance
of
      the
      Employer’s interests.

    

    Upon
      the
      termination of this Agreement, or sooner if requested by the Employer, Domijan
      will immediately
      deliver to the Employer any and all originals and copies of any Confidential
      Information,
      and any other papers, materials, or tangible items of any nature, acquired,
      compiled or
      coming
      into her knowledge, possession, custody or control, in connection with his
      activities on
      behalf
      of the Employer, and Domijan shall retain no copies of any of the foregoing
      described items
      thereafter. Moreover, simultaneous therewith, Domijan shall delete from computer
      memory
      used by him any such information in machine-readable form, after making sure
      Employer
      has access to such information.

    

    
      	
              11.

            	
              EXPENSES
                OF ENFORCEMENT.

            

    

    

    In
      the
      event that either parry seeks a judicial adjudication of such party’s rights
      under, or to recover damages for breach of, this Agreement, the prevailing
      party
      shall be entitled to recover from the non-prevailing party, and shall be
      indemnified by the non-prevailing party against,
      any and all expenses, including attorney’s fees, incurred by the prevailing
      party in such judicial
      adjudication.

    

    
      	
              12.

            	
              WITHHOLDING
                TAXES.

            

    

    

    Employer
      shall withhold from any payments to be made to Domijan pursuant to this
      Agreement such amounts (including Social Security and Medicare contributions
      and
      federal income
      taxes) as shall be required by federal, state, and local withholding tax
      laws.

    

    
      	
              13.

            	
              NOTICES.

            

    

    

    All
      notices, requests, demands, and other communications required or permitted
      to be
given
      or
      made by either party shall be in writing and shall be deemed to have been duly
      given or made
      when
      delivered personally, or when deposited in the United States mail, first class
      registered or certified mail, postage prepaid, return receipt requested, to
      the
      party for which intended
      at the following addresses (or at such other addresses as shall be specified
      by
      the parties by
      like
      notice, except that notices of change of address shall be effective only upon
      receipt):

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                10

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      to
      Employer, at:

    

    11827
      Judd Court

    Dallas,
      Texas 75243

    

    If
      to
      Domijan, at Domijan’s then-current home address on file with
      Employer.

    

    
      	
              14.

            	
              MITIGATION.

            

    

    

    Domijan
      shall be required to mitigate the amount of any payment provided for in this
      Agreement
      by seeking other employment, and the amount of any payment provided for in
      this
Agreement
      shall be reduced by 50% of any compensation earned by Domijan as the result
      of
employment
      by another employer after the date of termination of Domijan’s employment with
      Employer, or otherwise.

    

    
      	
              15.

            	
              BINDING
                EFFECT; NO
                ASSIGNMENT
                BY DOMIJAN; NO
                THIRD
                PARTY BENEFIT.

            

    

    

    This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective
      heirs, legal representatives, successors, and assigns; provided, however, that
      Domijan shall not assign or otherwise transfer this Agreement or any of his
      rights or obligations under this Agreement.
      Employer is authorized to assign or otherwise transfer this Agreement or any
      of
      its rights or obligations under this Agreement to an Affiliate of Employer
      with
      the prior consent of Domijan,
      which consent shall not be unreasonably withheld. Nothing in this Agreement,
      express or
      implied, is intended to or shall confer upon any person other than the parties,
      and their respective heirs, legal representatives, successors, and permitted
      assigns, any rights, benefits, or remedies of any nature whatsoever under or
      by
      reason of this Agreement.

    

    
      	
              16.

            	
              ASSUMPTION
                BY SUCCESSOR.

            

    

    

    Employer
      shall ensure that any successor or assignee (whether direct or indirect, by
      purchase, merger, consolidation or otherwise), including Successor Company,
      to
      all or substantially all the business and/of assets of Employer, either by
      operation of law or written agreement, assumes the obligations of this Agreement
      (the “Assumption Obligation”). If Employer fails to fulfill the Assumption
      Obligation, then Employer and Successor Company shall jointly remain liable
      for
      all obligations to Domijan contained herein. As used in this Agreement,
“Employer” shall include any successor or assignee (whether direct or indirect,
      by purchase,
      merger, consolidation or otherwise) to all or substantially all the business
      and/or assets of
      Employer that executes and delivers the agreement provided for in this Paragraph
      16 or that otherwise becomes obligated under this Agreement by operation of
      law.

    

    
      	
              17.

            	
              GOVERNING
                LAW; VENUE.

            

    

    

    (a)    Governing
      Law. This
      Agreement and the other documents and instruments delivered
      hereunder (except as otherwise provided therein or herein) shall be governed
      by
      and construed in accordance with the laws of the State of Texas applicable
      to
      agreements executed
      and performable wholly within such state, excluding any conflicts-of-law rule
      or
      law
      which might refer such construction and interpretation to the laws of another
      state.

    

    (b)    Venue.
      Each party, solely for the benefit of the other party and not for the
      benefit of any third Person hereby irrevocably submits to the jurisdiction
      of
      any Texas court sitting in Dallas County, Texas or any Federal court sitting
      in
      the Northern District of Texas, having subject matter jurisdiction over any
      action or proceeding arising out of or relating to this Agreement, and each
      party hereby irrevocably agrees that all claims in respect of such actions
      or
      proceedings shall be heard and determined in such Texas court or Federal court;
      provided, however, that nothing in the foregoing provisions of this Article
      shall be construed to permit the initiation of an action or proceeding by either
      party in a manner other than as prescribed or permitted by law.

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                11

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              18.

            	
              ENURE
                AGREEMENT.

            

    

    

    This
      Agreement contains the entire agreement between the parties concerning the
      subject matter
      hereof and supersedes all prior agreements and understandings, written and
      oral,
      between the parties with respect to the subject matter of this
      Agreement.

    

    
      	19.	
              MODIFICATION;
                WAIVER.

            

    

    

    No
      person, other than pursuant to a resolution duly adopted by the members of
      the
      Board, shall
      have authority on behalf of Employer to agree to modify, amend, or waive any
      provision of this Agreement. Further, this Agreement may not be changed orally,
      but only by a written agreement signed by the party against whom any waiver,
      change, amendment, modification or discharge
      is sought to be enforced. The parties hereto acknowledge and agree that no
      breach by the
      other
      party of this Agreement or failure to enforce or insist on its rights under
      this
      Agreement shall constitute a waiver or abandonment of any such rights or defense
      to enforcement of such rights.

    

    
      	20.	
              CONSTRUCTION.

            

    

    

    This
      Agreement is to be construed as a whole, according to its fair meaning, and
      not
      strictly for or against any of the parties. All references in this Agreement
      to
      Paragraphs refer to corresponding Paragraphs of this Agreement unless expressly
      provided otherwise. Titles appearing at the beginning of any of such Paragraphs
      are for convenience only and shall not constitute part of such Paragraphs or
      subdivisions and shall be disregarded in construing the language contained
      in
      such Paragraphs. Words or terms such as “this Agreement,” “this instrument,”
“herein,” “hereof,” “hereby,” “hereunder” or words of similar import refer to
      this Agreement
      as a whole and not to any particular Paragraph unless expressly so limited.
      The
      word “includes”
      and its syntactical variants mean “includes, but is not limited to” and
      corresponding syntactical
      variants. The rule ejusdem
      generis may
      not
      be invoked to restrict or limit the scope of the
      general term or phrase followed or preceded by an enumeration of particular
      examples.

    

    
      	
              21.

            	
              SEVERABILITY

            

    

    

    If
      any
      provision of this Agreement shall be determined by a court to be invalid or
      unenforceable,
      the remaining provisions of this Agreement shall not be affected thereby, shall
      remain
      in
      full force and effect, and shall be enforceable to the fullest extent permitted
      by applicable
      law.

    

    
      	
              22.

            	
              MANNER
                OF EXECUTION

            

    

    

    The
      parties specifically intend that this Agreement may be executed by facsimile
      or
      by the exchange of documents in electronic format in accordance with the Uniform
      Electronic Transactions Act (Tex. Bus. & Com. Code § 43.001 et seq.),
and that this Agreement shall be deemed to be executed by the parties
      when
      a party has executed this Agreement, has then forwarded the Agreement by
      facsimile or electronic mail, and the other party has executed the counterpart
      of the Agreement received by it and has returned a fully executed counterpart
      to
      the originating party. Upon the receipt by the originating party of a fully
      executed counterpart, whether the same be in facsimile or electronic form,
      the
      Agreement shall then be deemed to be executed and effective. The parties may,
      but shall not be required to, exchange counterparts bearing original signatures,
      but the date of execution shall be deemed to be the date upon which the
      originating party received the folly executed counterpart.

    
      

      
        	
                EMPLOYMENT
                  AGREEMENT

              	
                PAGE
                  12

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	23.	
              COUNTERPARTS.

            

    

    

    This
      Agreement may be executed in multiple counterparts each of which shall be deemed
      an
      original and all of which taken together shall constitute one instrument;
      provided, however, that this Agreement shall be effective as to each party
      upon
      its execution hereof whether all counterparts are executed by a party or not.
      In
      making proof of this Agreement it shall not be necessary to produce nor to
      account for all counterparts hereof, and it shall be sufficient to produce
      but
      one counterpart original hereof executed by the party sought to be charged
      thereby.

    

    
      	24.	
              ARBITRATION.

            

    

    

    Any
      controversy between the parties to this Agreement involving the construction
      or
      application of any of the terms, covenants or conditions of this Agreement,
      shall on the written request of one party served on the other, be submitted
      to
      arbitration, and such arbitration shall comply
      with and be governed by the provisions of Chapter 171 of the Texas Civil
      Practices And Remedies
      Code. To the extent not inconsistent with the foregoing, any arbitration shall
      be conducted with a single arbitrator, utilizing the Commercial Rules of the
      American Arbitration Association, and shall be conducted in Dallas.

    

    IN
      WITNESS WHEREOF, Employer
      has caused this Agreement to be executed on its behalf by
      its
      duly authorized officer, and Domijan has executed this Agreement, effective
      as
      of the date first
      set
      forth above.

    

      
        	
                EMPLOYER
                  

              	 	
                CHRISTOPHER
                  DOMIJAN 

              	 
	 	 	 	 	 	 
	
                GOODTIME
                  ACTION AMUSEMENT PARTNERS, LP 

              	 	 	 	 
	 	 	 	 	 	 
	
                By:

              	
                Amusement
                  Innovation Partners, LLC, 

              	 	 	 	 
	 	
                General
                  Partner 

              	 	 	 	 
	 	 	 	 	 	 
	
                By:
                  

              	
                /s/
                  Kenneth Griffith

              	 	 	
                /s/Christopher
                  Domijan 

              	 
	 	
                Ken
                  Griffith, President 

              	 	 	
                Christopher
                  Domijan 

              	 

      

    

    

    
      	
              EMPLOYMENT
                AGREEMENT

            	
              PAGE
                13

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FIRST
      AMENDMENT TO

    EMPLOYMENT
      AGREEMENT

     

    THIS
      FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”)
      is entered into to be effective as of the 16th day
      of
      July, 2006 (the ‘Effective
      Date”), by and between Goodtime Action Amusement Partners, LP, a Texas
limited
      partnership (“Employer”), and Christopher Domijan (“Domijan”).

    

    WITNESSETH:

    

    WHEREAS,
      Employer and Domijan have entered into an employment agreement (the
      “Agreement”) effective as of the 31st
      day of
      October, 2005; and

    

    WHEREAS,
      Employer and Domijan now desire to amend the Agreement to modify the
      vesting of stock or equity held by Domijan in Employer and to reflect the
      current base salary
      paid to Domijan by Employer.

    

    NOW,
      THEREFORE, for and consideration of the premises and the mutual promises,
      covenants, and agreements contained herein, and other good and valuable
consideration,
      the receipt and adequacy of which are now and forever confessed, Employer
and
      Domijan agree as follows:

    

    1.    All
      capitalized terms used herein but not identified herein shall have the
meanings
      assigned to them in the Agreement.

    

    2.    Section
      5(a) is amended to reflect that the base salary to be paid to Domijan
      is increased from $150,000 to $230,000. The remaining terms of Section 5(a)
      not
      specifically modified hereby shall remain in full force and effect, enforceable
      against the parties
      pursuant to their terms.

    

    3.    Section
      5(b) of the Agreement is amended to read in its entirety as
      follows:

    

    “(b)
       Stock
      or Equity.  Domijan
      shall become vested in a limited partnership
      interest equal to 0.5% of the total interests of the Company as of December
      31, 2005. Domijan’s remaining partnership interest shall vest as follows:
      2.0% vests in equal quarterly installments of .5% on the last day of each
fiscal
      quarter commencing with the quarter beginning January 31, 2006 and ending
      March 13, 2006, and continuing for the succeeding three quarters. The
remaining
      2.2333% vests on March 31, 2007 so that, unless this Agreement is earlier
      terminated, Domijan shall have received a total of 4.7333% of the equity
      interests in Employer, whether limited partnership, shares or otherwise. Domijan
      must
      be a
      employed by or on behalf of the Company or Successor Company on each
      vesting date for each vesting increment to occur, Domijan may vote his
entire
      interest pending vesting, until such time as it becomes apparent that vesting
      will
      not
      occur as to such interest, or any portion thereof. Interests may be diluted
      as
      the result of the issuance of additional interests by the Company or Successor
      Company.
      If Employer, or the Successor Company, performs a reverse merger, the
      amount of stock ownership in Successor Company would be diluted pro rata the
      same as the other shareholders of Employer, i.e. the percentage ownership of
      the
      Successor Company will be less than 4.7333% because of the percentage of
ownership
      by a third party or parties of some portion of the total issued and outstanding
      shares. Any stock or shares issued to Domijan shall, to the extent possible,
      be
      free of any restrictions; provided, however, that if the Successor Company,
      upon
      advice of counsel, deems it advisable to restrict the sale of any stock
      or
      shares, the Domijan's stock shall be restricted, but only and to the extent
      that
      stock or shares of other officers or members of the Board of the Successor
      Company
      are restricted. If Employer remains a private company, then no registration
      of Domijan’s stock shall be required. In any event, upon the final vesting
      of any equity interests, whether limited partnership, shares or otherwise,
      the
      same
      shall be distributed to Domijan upon his written request for the
      same.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.    Other
      than as expressly amended as set forth in Section 2 hereof, the Agreement
      is in all respects ratified and reaffirmed as the agreement of the parties,
      and
      all provisions
      thereof not specifically modified hereby shall remain in full force and effect,
      enforceable
      against the parties pursuant to their terms.

    

    5.    This
      Amendment shall not be or become effective until executed by the Employer
      and the Domijan, constituting all parties under the Agreement.

    

    6.    This
      Amendment may be executed in counterparts, each of which shall be an
original
      but all of which shall constitute but one document.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Amendment to be effective
      as of the Effective Date set forth above.

    

    

    
      	 	 	
              EMPLOYER: 

            	 
	 	 	 	 	 	 	 
	 	 	
              GOODTIME
                ACTION AMUSEMENT PARTNERS, LP 

            	 
	 	 	 	 	 	 	 
	 	 	
              By:

            	
              Amusement
                Innovation Partners, LLC 

            	 
	 	 	 	
              its
                general partner 

            	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	
              By: 

            	/s/
Kenneth
              Griffith 	 
	 	 	 	 	
              Name:

            	
              Kenneth
                Griffith 

            	 
	 	 	 	 	
              Title:

            	
              President 

            	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	
              DOMIJAN: 

            	 
	 	 	 	 	 	 	 
	 	 	 	 	/s/
              Christopher Domijan	 
	 	 	 	 	
              Christopher
                Domijan 

            	 

    

     

     

    3EXHIBIT
        10.1

       

      DEVELOPMENT
        AGREEMENT

      

      THIS
        DEVELOPMENT AGREEMENT (“Agreement”), made and entered into effective as of
        October 1, 2006 (the “Effective Date”), by and between BP
        AMERICA PRODUCTION COMPANY
        (“BP”),
        a Delaware corporation, with an office at 501 Westlake Park Boulevard, Houston,
        Texas 77079, and TRUE NORTH ENERGY CORP. (“Company”), a Nevada corporation, with
        an office at 1200 Smith Street, 16th Floor, Houston, Texas 77002 (individually,
        a “Party” and collectively, the “Parties”).

      

      WITNESSETH:

      

      WHEREAS,
        BP owns those certain oil, gas and mineral leases set forth in Exhibit “A” (the
        "Leases") covering the Contract Area; and

      

      WHEREAS,
        subject to the terms, provisions and conditions set forth below, Company
        will
        pay a disproportionate 16.67% of the Drilling Costs for the BP America
        Production Company - O. Jarreau Heirs No. 1 well (the “Initial Well”) being
        drilled at the location shown on the plat attached as Exhibit “C”, and in return
        BP will assign to Company a 12.5% interest in the Initial Well and the BP
        Interests, limited as to those depths between the surface and the stratigraphic
        equivalent of the Objective Zone, all as further provided in this
        Agreement

      

      NOW,
        THEREFORE, in consideration of the premises and of the mutual covenants and
        agreements hereinafter contained, to be kept and performed by the Parties,
        it is
        hereby agreed by and between the Parties as follows:

      

      ARTICLE
        I

      DEFINITIONS

      

      Each
        capitalized term in this Agreement has the meaning given to it in this Article.
        All defined terms include the singular and the plural. All references to:
        Articles and Sections refer to Articles and Sections in this Agreement, and
        Exhibits refer to Exhibits attached to this Agreement. 

      

      1.1 “A/B
        Shale”
means
        that stratum of shale deeper than the base of the Tuscaloosa A sands, being
        the
        stratigraphic equivalent of the shale seen deeper than the base of the deepest
        Tuscaloosa A sand as seen at 20,730 feet (electrical log measurement) for
        the
        Chevron U.S.A. Inc. - Lowman-Merrick No. 2 well, located in Section 44, Township
        5 South, Range 9 East, Pointe Coupee Parish, Louisiana.

      

      1.2 “Additional
        Well”
means
        a
        well, other than the Initial Well or a Substitute Well, drilled on the Contract
        Area after Company earns its proportionate share of the BP Interests in
        accordance with Section 4.1.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      1.3 “Affiliate”
of
        a
        Party means (i) the parent company thereof or (ii) any Person directly or
        indirectly controlled by, controlling, or under common control with that
        party
        (for the purposes of this definition, ownership of fifty percent (50%) or
        more
        of the stock, equity or property of such Person, or having the right to appoint
        fifty percent (50%) or more of the members or owner representatives of such
        Person are examples of forms of control).

      

      1.4 “AFE”
means
        an Authority for Expenditure prepared by a Party for the purpose of estimating
        the costs to be incurred in conducting an operation on a well subject to
        this
        Agreement and for providing such other information as may be specifically
        set
        forth elsewhere in this Agreement. 

      

      1.5 “Agreement”
has
        the
        meaning given to it in the preamble.

      

      1.6 “BP”
has
        the
        meaning given to it in the preamble.

      

      1.7 “BP
        Interests”
means
        the Leases and BP’s right to obtain, acquire or otherwise earn certain interests
        in the Contract Area pursuant to that certain Farmout Agreement, dated April
        18,
        2006, by and between Chesapeake Investments, Chesapeake Louisiana, L.P.,
        TLW
        Investments, Inc., and BP, a copy of which is attached hereto as Exhibit
        “I”.

      

      1.8 “BP
        GROUP”
means
        the following Persons, individually and collectively: BP and its Affiliates
        and
        the officers, directors, employees, agents, and representatives of all of
        those
        Persons.

      

      1.9 “Carried
        Interests”
has
        the
        meaning given to it in Section 5.7.

      

      1.10 “Casing
        Point”
means
        the time when (a) a well has been drilled to the Objective Zone, (b) all
        logs,
        tests, and evaluations have been completed and the results thereof have been
        furnished to the Parties, and (c) a recommendation has been made whether
        to run
        and set production casing and attempt to Complete the well as a producer
        or to
        abandon the well as a dry hole.

      

      1.11 “Company”
has
        the
        meaning given to it in the preamble.

      

      1.12 “Complete”
or
        “Completion”
or
        “Completing”
means
        a
        single operation intended to complete a well as a producer of oil and/or
        gas in
        one or more Zone(s), including, but not limited to, the setting of
        pipe/production lining and casing tie-back, installing tubing, wellhead and
        tree, perforating, plugging back, well stimulation, and testing.

      

      1.13 “Completion
        Costs”
means
        the actual costs and expenses incurred in Completing a well subject to this
        Agreement.

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      1.14 “Contract
        Area”
means
        the geographic area (covering all depths) defined by the following Units
        or
        proposed Units, when and if they may be approved: (a) the 640-acre Moore
        Sams
        Field 18,100’ TUSC RA SUK, created by the State of Louisiana Office of
        Conservation Order No. 1063, effective May 1, 1979, as it may be amended
        from
        time to time; (b) the 1280-acre Judge Digby Field U TUSC RA SUM, created
        by
        State of Louisiana Office of Conservation Order No. 1046-A-4, effective November
        20, 1984, as it may be amended from time to time; and (c) the proposed 1280-acre
        Judge Digby Field U TUSC RA SUO, as set forth in BP’s application dated July 18,
        2006, to create such Unit (among others) and pending before the Commissioner
        of
        the Office of Conservation within the State of Louisiana Department of Natural
        Resources. The “Contract
        Area”,
        as it
        exists now, is outlined in red on the plat attached as Exhibit “B”, but in the
        event of any conflict between the definition set forth in the preceding sentence
        and Exhibit “B”, the definition set forth in the preceding sentence shall govern
        and control.

      

      1.15 “Data”
means
        3D seismic data, in whatever form (reels, paper, film, tape, magnetic or
        electronic, covering the Contract Area.

      

      1.16 “Data
        Owner”
means
        a
        Third Party who owns the Data.

      

      1.17 “Deep
        Test Well”
has
        the
        meaning given to it in Section 6.1.

      

      1.18 “Drilling
        Costs”
means
        the actual costs and expenses incurred in drilling a well subject to this
        Agreement beginning with the initiation of preliminary site preparation
        activities through and including logging, testing and evaluating the well
        prior
        to recommending whether to attempt a Completion. Drilling Costs shall include,
        but shall not be limited to, the costs and expenses associated with permitting,
        preparing the site, drilling to the Objective Zone, and evaluating any Zone(s)
        in such well to which a Completion may be attempted. Drilling Costs shall
        also
        include brokerage, abstracting, and reasonable attorney fees related to the
        preparation of drilling title opinions for such well. Drilling Costs shall
        not
        include the cost to plug and abandon any well, including a dry hole, and
        shall
        not include any Completion Costs.

       

      1.19 “Earned
        Zone”
has
        the
        meaning given to it in Section 4.1. 

      

      1.20 “Estimated
        Drilling Costs”
has
        the
        meaning given to it in Section 2.1.

      

      1.21 “Effective
        Date”
has
        the
        meaning given to it in the preamble.

      

      1.22 “Exhibits”
has
        the
        meaning given to it in Section 17.6.

      

      1.23 “Force
        Majeure”
has
        the
        meaning given to it in Section 10.1.

      

      1.24 “Initial
        Well”
has
        the
        meaning given to it in the recitals.

      

      1.25 “Insurance
        Requirements”
has
        the
        meaning given to it in Exhibit “G”.

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      

      1.26 “Intermediate
        Casing Point”
means
        the time when (a) the Initial Well has been drilled to the A/B Shale, (b)
        all
        logs, tests, and evaluations have been completed and the results thereof
        have
        been furnished to the Parties, and (c) a recommendation has been made whether
        to
        continue drilling the Initial Well to the Objective Zone or to abandon the
        Initial Well as a dry hole. 

      

      1.27 “Leases”
has
        the
        meaning given to it in the recitals.

      

      1.28 “Objective
        Zone”,
        with
        respect to the Initial Well, means the base of the Tuscaloosa B-1 sand, being
        the stratigraphic equivalent of the base of the Tuscaloosa B-1 sand as seen
        at
        20,706 feet (electrical log measurement) for the Amoco Production Company
        -
        Parlange No. 8 well, located in Section 45. Township 5 South, Range 9 East,
        Pointe Coupee Parish, Louisiana, or twenty-one thousand two hundred fifty
        feet
        measured depth (21,250’ MD), whichever occurs first in the Initial Well. The
        term “Objective
        Zone”,
        with
        respect to any Substitute Well or Additional Well, means the deepest Zone
        to
        which the Substitute Well or Additional Well is proposed to be drilled as
        provided in the relevant AFE for such well.

      

      1.29 “Operating
        Agreement”
has
        the
        meaning given to it in Section 5.5.

      

      1.30 “Partial
        Assignment”
has
        the
        meaning given to it in Section 4.1.

      

      1.31 “Partial
        Interest”
has
        the
        meaning given to it in Section 4.2.

      

      1.32 “Party”
and
        “Parties”
have
        the meaning given to them in the preamble.

      

      1.33 “Person”
means
        any individual or entity, in the broadest sense possible, including but not
        limited to a corporation, partnership, limited partnership, limited liability
        company, trust, trustee, association or unincorporated
        organization.

      

      1.34 “Plants”
has
        the
        meaning given to it in Section 5.6.

      

      1.35 “Properties”
mean
        all of BP’s right, title and interest (real or immovable, personal or movable,
        mixed, contractual or otherwise), as of the Effective Date, in, to and under
        or
        derived from the following:

       

      
        	 	
                (a)
                  

              	
                the
                  Leases, as well as the production of oil, gas or other hydrocarbon
                  substances attributable thereto;

              

      

      

      
        	 	
                (b)
                  

              	
                all
                  unitization, communitization and pooling declarations, orders and
                  agreements (including all units formed by voluntary agreement and
                  those
                  formed under the rules, regulations, orders or other official acts
                  of any
                  governmental entity or tribal authority having jurisdiction) to
                  the extent
                  they relate to the Initial Well and
                  any

              

      

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      Additional
        Well, or the production of oil, gas or other hydrocarbon substances attributable
        thereto;

      

      
        	 	
                (c)
                  

              	
                all
                  product sales contracts, processing contracts, gathering contracts,
                  transportation contracts, easements, rights-of-way, servitudes,
                  surface
                  leases, subsurface leases, farm-in and farm-out contracts, areas
                  of mutual
                  interest, operating agreements, balancing contracts and other contracts,
                  agreements and instruments to the extent they relate to the Initial
                  Well
                  and any Additional Well, or the production of oil, gas or other
                  hydrocarbon and non-hydrocarbon substances attributable
                  thereto;

              

      

      

      
        	 	
                (d)
                  

              	
                all
                  personal or movable property, improvements, fixtures and other
                  appurtenances, to the extent situated upon and exclusively used,
                  or
                  situated upon and held exclusively for use in connection with ownership,
                  operation, maintenance or repair of the interests described in
                  the Leases,
                  or production of oil, gas or other hydrocarbon and non-hydrocarbon
                  substances attributable thereto, including all wells (whether producing,
                  shut-in, injection, disposal, water supply or plugged and abandoned),
                  gathering and processing systems, platforms, buildings, pipelines,
                  compressors, meters, tanks, equipment, machinery, tools, utility
                  lines,
                  permits, licenses, imbalances and suspense funds;
                  and

              

      

       

      
        	 	
                (e)
                  

              	
                all
                  partnerships (tax, state law or otherwise) affecting any of the
                  items
                  enumerated above.

              

      

      

      1.36 “Rig
        Release Date”
has
        the
        meaning given to it in Section 3.2.

      

      1.37 “Seismic
        Use Agreements”
means
        those agreements between BP and the Data Owner governing BP’s rights and
        obligations concerning the Data.

      

      1.38 “Substitute
        Well”
means
        a
        well proposed within one (1) year of the Rig Release Date and drilled by
        BP
        within the Contract Area, all in accordance with Section 3.2.

      

      1.39 “Third
        Party”
means
        a
        Person other than a Party or an Affiliate of a Party.

      

      1.40 “Unit”
means
        a
        compulsory unit established by the Commissioner
        of the Office of Conservation within the State of Louisiana Department of
        Natural Resources
        pursuant
        to Chapter
        39 of Part XIX of Title 43 of the Louisiana Administrative Code, as same
        may be
        amended from time to time.

      

      1.41 “Well
        Information”
has
        the
        meaning give to it in Section 2.2

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      1.42 “Zone”
or
        “Zone(s)”
means
        a
        stratum of earth containing or thought to contain a common accumulation of
        oil
        and/or gas separately producible from any other common accumulation of oil
        and/or gas.

      

      ARTICLE
        II

      DRILLING
        AND COMPLETING THE INITIAL WELL

      

      2.1
         BP
        has
        commenced drilling operations for the Initial Well, and, except as provided
        elsewhere in this Agreement, BP shall continue drilling the Initial Well
        with
        due diligence to the Objective Zone and perform all logging and testing
        operations to which the Parties agree. Company shall pay 16.67% of the Drilling
        Costs of the Initial Well, regardless of whether the Initial Well is
        successfully drilled to the Objective Zone. BP has estimated that Drilling
        Costs
        will be approximately FIFTEEN MILLION, SEVEN HUNDRED THOUSAND DOLLARS
        ($15,700,000) (the “Estimated Drilling Costs”) for the Initial Well. Company
        shall pay its share of Estimated Drilling Costs, being TWO MILLION, SIX HUNDRED
        SEVENTEEN THOUSAND, ONE HUNDRED NINETY DOLLARS ($2,617,190) at execution
        of this
        Agreement via wire transfer according to the wiring instructions set forth
        in
        Exhibit “J”, but Company will pay its share of actual Drilling Costs in
        accordance with this Article II and Section 5.4. 

      

      2.2 When
        Intermediate Casing Point is reached in the Initial Well, BP shall give written
        notice to Company of such occurrence, and such notice shall state whether
        BP
        will continue drilling the Initial Well to the Objective Zone or whether
        BP will
        abandon the Initial Well as a dry hole. The notice shall be accompanied by
        all
        well information and data set forth in Exhibit “D” (the “Well Information”),
        unless such information has been previously furnished to Company. If BP reaches
        Intermediate Casing Point and proposes to abandon the Initial Well as a dry
        hole, (i) BP shall plug and abandon the Initial Well in accordance with Section
        2.7, and (ii) Company shall have no right or option to takeover the Initial
        Well.

      

      2.3 When
        and
        if Casing Point is reached in the Initial Well, BP shall give written notice
        to
        Company of such occurrence, and such notice shall state whether BP proposes
        to
        attempt to Complete the Initial Well as a producer, whether in the Objective
        Zone or in a shallower Zone, or to abandon the Initial Well as a dry hole.
        The
        notice shall be accompanied by all Well Information, unless such information
        has
        been previously furnished to Company.

      

      
        	 	
                (A)

              	
                If
                  BP reaches Casing Point and proposes to Complete the Initial Well
                  as a
                  producer, whether in the Objective Zone or in a shallower Zone,
                  such
                  notice shall also include a completion AFE. The completion AFE
                  shall
                  include, at a minimum, an estimate of Completion Costs for the
                  Initial
                  Well. Company shall have forty-eight (48) hours (exclusive of Saturday,
                  Sunday and holidays) from receipt of the notice to elect, by written
                  notice, whether it will participate in accordance with Section
                  2.4. BP
                  shall not Complete

              

      

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      the
        Initial Well until Company has notified BP in writing whether or not it will
        participate or until forty-eight (48) hours (exclusive of Saturday, Sunday
        and
        holidays) have elapsed since Company’s receipt of BP’s notice. Failure to
        respond within the time period allowed shall be deemed to be an election
        not to
        participate in the Completion of the Initial Well.

      

      
        	 	
                (B)

              	
                If
                  BP reaches Casing Point and proposes to abandon the Initial Well
                  as a dry
                  hole, (i) BP shall plug and abandon the Initial Well in accordance
                  with
                  Section 2.7, and (ii) Company shall have no right or option to
                  takeover
                  the Initial Well.

              

      

      

      2.4 If
        BP
        proposes to Complete the Initial Well and Company timely elects to participate
        in such Completion attempt in accordance with Section 2.3(A), Company shall
        pay
        12.5% of the Completion Costs associated with the Initial Well and 12.5%
        of the
        cost of any newly acquired surface equipment associated with the Initial
        Well
        beyond the wellhead connections (including but not limited to stock tanks,
        separators, treaters, pumping equipment, piping, and metering
        devices).

       

      2.5 If
        BP
        proposes to Complete the Initial Well and Company elects not to participate
        in
        such Completion attempt, or is deemed not to participate, BP may nonetheless
        continue with such operation and carry Company’s proportionate part of
        Completion Costs. If the Completion attempt is ultimately not successful,
        BP
        shall abandon the Initial Well in accordance with Section 2.7 or propose
        to
        Complete the Initial Well in another Zone under the provisions of Section
        2.3
        (and Company shall be given another election to participate in such newly
        proposed Completion). If the Completion attempt results in the production
        of oil
        and/or gas in paying quantities, the Initial Well shall be operated by BP
        at the
        expense and for the account of BP and other parties who agreed to participate
        in
        the Completion attempt. By electing not to participate in any Completion
        attempt, or being deemed not to participate in any Completion attempt, Company
        shall be deemed to have relinquished to BP, and BP shall own and be entitled
        to
        receive, all of Company’s interest in the Initial Well and share of production
        therefrom until the proceeds of the sale of such share, calculated at the
        well,
        or market value thereof if such share is not sold (after deducting applicable
        ad
        valorem, production, severance, windfall profits, and excise taxes, royalty,
        overriding royalty and other interests payable out of or measured by the
        production from the Initial Well accruing with respect to such interest until
        it
        reverts), shall equal the total of the following:

      

      
        	 	
                (A)

              	
                thirty-seven
                  and one-half percent (37.5%) of the Completion Costs associated
                  with the
                  Initial Well and thirty-seven and one-half percent (37.5%) of the
                  cost of
                  any newly acquired surface equipment beyond the wellhead connections
                  (including but not limited to stock tanks, separators, treaters,
                  pumping
                  equipment, piping and metering devices) (i.e.,
                  300% non-consent penalty on a non-promoted basis);
                  and

              

      

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      

      
        	 	
                (B)

              	
                twelve
                  and one-half percent (12.5%) of the cost of operation of the Initial
                  Well
                  commencing with first production and continuing until Company’s interest
                  shall revert to it in accordance with this Section 2.5 (i.e.,
                  100% non-consent penalty on a non-promoted
                  basis).

              

      

      

      2.6 Company
        shall bear its proportionate part, being twelve and one-half percent (12.5%),
        of
        any severance, production and gathering taxes and any other taxes imposed
        or
        measured by the volume or value of production from the Initial Well, including,
        but only by way of illustration, excise taxes and windfall profit taxes,
        whether
        enacted by federal, state or local authority.

      

      2.7 The
        Initial Well shall be plugged and abandoned in accordance with applicable
        regulations and at the cost, risk and expense of the parties who participated
        in
        the cost of drilling the Initial Well. Company’s proportionate share of the
        cost, risk and expense to plug and abandon the Initial Well shall be twelve
        and
        one-half percent (12.5%).

       

      ARTICLE
        III

      SUBSTITUTE
        WELLS

      

      3.1
         If,
        prior
        to reaching Casing Point in the Initial Well, BP should encounter geological
        or
        mechanical conditions which render further operations impracticable or
        economically infeasible, in the sole reasonable opinion of BP, BP shall (i)
        give
        written notice of such occurrence to Company, and (ii) such notice shall
        state
        whether BP proposes to attempt to Complete the Initial Well in a shallower
        Zone
        or to abandon the Initial Well as a dry hole. 

      

      
        	 	
                (A)

              	
                If
                  BP proposes to Complete the Initial Well without reaching the Objective
                  Zone, such notice shall also include a completion AFE. The completion
                  AFE
                  shall include, at a minimum, an estimate of Completion Costs for
                  the
                  Initial Well. Company shall have forty-eight (48) hours (exclusive
                  of
                  Saturday, Sunday and holidays) from receipt of the notice to elect,
                  by
                  written notice, whether it will participate in accordance with
                  Section
                  2.4. BP shall not Complete the Initial Well until Company has notified
                  BP
                  in writing whether or not it will participate or until forty-eight
                  (48)
                  hours (exclusive of Saturday, Sunday and holidays) have elapsed
                  since
                  Company’s receipt of BP’s notice. Failure to respond within the time
                  period allowed shall be deemed to be an election not to participate
                  in the
                  Completion of the Initial Well. If BP proposes to Complete the
                  Initial
                  Well and Company elects not to participate in such Completion attempt,
                  or
                  is deemed not to participate, BP may nonetheless continue with
                  such
                  operation and carry Company’s proportionate part of Completion Costs in
                  accordance with Section 2.5.

              

      

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      

      
        	 	
                (B)

              	
                If
                  BP proposes to abandon the Initial Well as a dry hole, (i) BP shall
                  plug
                  and abandon the Initial Well in accordance with Section 2.7, and
                  (ii)
                  Company shall have no right or option to takeover the Initial Well.
                  

              

      

      

      3.2 If
        BP
        does not drill the Initial Well to the Objective Zone, Company shall have
        the
        right, but not the obligation, for a period of one (1) year from the date
        the
        drilling rig used to drill the Initial Well is removed from the well site
        location for the Initial Well (the “Rig Release Date”), to participate in the
        drilling of a Substitute Well. BP shall have no obligation to drill a Substitute
        Well, and Company shall have no right to propose a Substitute Well. If and
        when
        BP elects to drill a Substitute Well, BP shall provide Company with an AFE
        for
        the Substitute Well. The AFE for the Substitute Well shall include, at a
        minimum, the surface and bottomhole location of the Substitute Well, the
        Objective Zone, and the estimated costs for the Substitute Well as a dry
        hole
        and as a producer. Company shall have thirty (30) days from receipt of such
        written notice to elect whether it shall participate in such Substitute Well.
        Failure to respond within the time period allowed shall be deemed to be an
        election not to participate in the Substitute Well.

      

      3.3 If
        BP
        proposes to drill a Substitute Well and Company timely elects to participate
        in
        such Substitute Well in accordance with Section 3.2, such Substitute Well
        shall
        be treated for all purposes herein as the Initial Well (including, but not
        limited to, Company’s obligation to pay 16.67% of the Drilling Costs for such
        Substitute Well), except that the Objective Zone for such Substitute Well
        shall
        be governed by the AFE for such Substitute Well.

      

      3.4 If
        Company elects not to participate in a Substitute Well, or is deemed not
        to
        participate in a Substitute Well, this Agreement shall terminate; provided,
        however, (i) BP and Company shall first enter into an operating agreement
        in the
        form of the Operating Agreement, except that Exhibit “A” of such operating
        agreement shall be limited to the Partial Interest, and (ii) the expiration
        or
        termination of this Agreement shall not release any of the Parties from any
        obligation or liability which accrued prior to such expiration or termination
        (including the costs to plug and abandon any well drilled pursuant to this
        Agreement) or which, by the terms hereof, is intended to survive such expiration
        or termination, including but not limited to Articles I, XI, XII, XIII, XIV,
        XV,
        XVI, and XVII and Sections 5.1 and 5.6, which terms shall survive indefinitely.
        

      

      ARTICLE
        IV

      EARNING
        RIGHTS

      

      4.1 When
        and
        if the Initial Well is drilled to the Objective Zone and successfully Completed
        as a well capable of producing oil and/or gas in paying quantities, BP shall
        assign to Company, by partial assignment in the form attached hereto as Exhibit
        “E”(the “Partial Assignment”) a twelve and one-half percent
        (12.5%)

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      working
        interest in the Initial Well and a twelve and one-half percent (12.5%) interest
        in the BP Interests, but limited as to those depths between the surface and
        the
        stratigraphic equivalent of the base of the Objective Zone (the “Earned Zone”),
        plus one hundred feet (100’) vertical easement for operational purposes
        only.

       

      4.2 If
        the
        Initial Well is not drilled to the Objective Zone, for any reason (including
        but
        not limited to a decision at Intermediate Casing Point or a decision in
        accordance with Section 3.1), but the Initial Well is successfully Completed
        as
        a well capable of producing oil and/or gas in paying quantities, BP shall
        assign
        to Company, by partial assignment in the form of the Partial Assignment,
        a
        twelve and one-half percent (12.5%) working interest in the Initial Well
        and a
        twelve and one-half percent (12.5%) interest in the BP Interests, but limited
        as
        to the geographic boundaries of the Unit in which the Initial Well is located
        and further limited as to those depths between the surface and the stratigraphic
        equivalent of the deepest Zone penetrated in the Initial Well (the “Partial
        Interest”). BP and Company shall conduct operations with respect to such Initial
        Well as if they have entered into the Operating Agreement until such well
        or a
        Substitute Well is drilled to the Objective Zone or until this Agreement
        is
        terminated; provided, however, if this Agreement is to be terminated without
        Company earning its proportionate share of the BP Interests in accordance
        with
        Section 4.1, then the Parties shall enter into an operating agreement in
        the
        form of the Operating Agreement but the contract area of such operating
        agreement shall be limited to the Partial Interest. 

      

      4.3 
        When and
        if (i) Company timely elects to participate in a Deep Test Well in accordance
        with Section 6.1, and (ii) such Deep Test Well is drilled to the Objective
        Zone
        and successfully Completed as a well capable of producing oil and/or gas
        in
        paying quantities, BP shall assign to Company, by partial assignment in the
        form
        of the Partial Assignment, a twelve and one-half percent (12.5%) working
        interest in the Deep Test Well and a twelve and one-half percent (12.5%)
        interest in the BP Interests, but limited as to those depths between the
        base of
        the Earned Zone and the stratigraphic equivalent of the base of the Objective
        Zone, plus one hundred feet (100’) vertical easement for operational purposes
        only.

      

      ARTICLE
        V

      JOINT
        OPERATIONS

      

      5.1
         BP
        does
        not own but has a limited non-exclusive right to use the Data in accordance
        with
        the Seismic Use Agreements. Under the Seismic Use Agreements, BP may not
        sell,
        assign, copy, transfer, display, exhibit or in any way reveal the Data, except
        as authorized by and in compliance with the provisions of the Seismic Use
        Agreements. Therefore, Company’s access to the Data shall be limited, and may be
        prohibited all together upon execution of this Agreement, unless Company
        obtains
        the consent or otherwise enters into a seismic license or seismic use agreement
        with the Data Owner. BP
        does not represent or warrant in any way, and expressly disclaims any
        representations or warranties, of any kind, express, implied
        or

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      otherwise,
        that it owns the Data or otherwise has the right to provide all or any portion
        of the Data to Company.  

      

      5.2 BP
        shall
        deliver to Company the Well Information derived from or attributable to the
        Initial Well and any Substitute Well and Additional Well, if such Well
        Information is acquired, obtained, or performed by BP.

      

      5.3
         The
        Initial Well and each Substitute Well and Additional Well shall be under
        the
        exclusive control of BP and the operation thereof shall be conducted in a
        prudent and workmanlike manner. BP shall conduct all its activities under
        this
        Agreement as a reasonable prudent operator, in a good and workmanlike manner,
        with due diligence and dispatch, in accordance with good oilfield practice,
        and
        in compliance with applicable law and regulation, but in no event shall BP
        have
        any liability to Company for losses sustained or liabilities or obligations
        incurred except such as may result from BP’s gross negligence or willful
        misconduct.

      

      5.4 Except
        as
        otherwise specifically provided in this Agreement, BP shall promptly pay
        and
        discharge expenses incurred in drilling the Initial Well and each Substitute
        Well and Additional Well pursuant to this Agreement and shall charge Company
        with its proportionate shares upon the expense basis provided in Exhibit
“C” to
        the Operating Agreement, whether or not such Operating Agreement has been
        executed by the Parties. BP shall keep an accurate record, in accordance
        with
        generally accepted accounting principles, showing expenses incurred and charges
        and credits made and received. 

      

      5.5 When
        and
        if the Initial Well is drilled to the Objective Zone and successfully Completed
        as a well capable of producing oil and/or gas in paying quantities, BP and
        Company shall enter into an operating agreement attached hereto as Exhibit
“F”
(the “Operating Agreement”) covering the Contract Area, including those depths
        below the Earned Zone. The Operating Agreement shall be executed
        contemporaneously with the Partial Assignment but shall be effective on April
        1,
        2006. The Operating Agreement shall apply to all Additional Wells. In
        the event of any conflict between the Operating Agreement and this Agreement,
        this Agreement shall govern.

      

      5.6 Unless
        Company elects by thirty (30) days’ prior written notice to BP either to take in
        kind or to separately dispose of its share of oil, gas and other hydrocarbons,
        BP shall in good faith, to the extent it can do so, cause Company’s share of
        production from the Initial Well and each Substitute Well and Additional
        Wells
        to be marketed and sold to either a Third Party or to an Affiliate of BP
        in a
        commercially reasonable manner, which terms shall not be less than on the
        same
        terms and conditions as BP’s share of production from such wells are sold. It is
        recognized by the Parties that BP, or its predecessor, has provided at its
        cost
        or made arrangements with Third Parties to provide certain facilities beyond
        the
        wellhead (the “Plants”) needed for producing, storing, separating, gathering,
        treating, processing and delivering production from the Initial Well and
        each
        Substitute Well and Additional Well. It is agreed that BP will

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

      continue
        to make the Plants (as they or any contractual arrangements related thereto
        may
        be modified, changed or upgraded) proportionately available to handle BP,
        Company and Third Party production from the Contract Area. It is understood
        that
        a proportionate share of the cost of maintaining and operating the Plants,
        including depreciation or rental in lieu of depreciation and actual Third
        Party
        costs, whether on a cash fee basis or on a retained volume basis, will be
        allocated to the Parties on a “throughput” basis (being that portion of such
        costs relating to the production volumes from the Initial Well or, if drilled,
        any Substitute Well or Additional Well, as each may bear to the total production
        volumes handled by the Plants, including any Third Party or BP volumes not
        produced from the Initial Well or, if drilled, any Substitute Well or Additional
        Well). Nothing
        herein shall be construed to impart, transfer or convey any ownership interest
        in the Plants to Company.

      

      5.7 If
        any
        lands within the Contract Area contain an interest which is unleased or leased
        to a Third Party and such interest must be carried in order to conduct
        operations consistent with this Agreement (such Third Party interest being
        a
“Carried Interest”), Company shall bear twelve and one-half percent (12.5%) of
        the Carried Interests in order to conduct such operations.

      

      5.8 At
        all
        times while this Agreement is in effect, Company shall carry insurance of
        the
        types and in the minimum amounts set forth in Exhibit “G”. All such insurance
        set forth in Exhibit “G” shall specifically name BP as an additional insured or
        provide that the insurer shall waive all rights of subrogation against BP.
        

      

      ARTICLE
        VI

      DEEP
        TEST WELLS

      

      6.1 BP
        shall
        have the right, but not the obligation, at any time after Company earns its
        proportionate share of the BP Interests in accordance with Section 4.1, to
        propose and drill an Additional Well to a proposed depth deeper than the
        base of
        the Earned Zone (a “Deep Test Well”). When and if BP elects to drill a Deep Test
        Well, BP shall provide Company with an AFE for the Deep Test Well. The AFE
        for
        the Deep Test Well shall include, at a minimum, the surface and bottomhole
        location of the Deep Test Well, the Objective Zone, and the estimated costs
        for
        the Deep Test Well as a dry hole and as a producer. Company shall have thirty
        (30) days from receipt of such written notice to elect whether it shall
        participate in such Deep Test Well in accordance with Section 6.3 or make
        a
        separate election to participate in such Deep Test Well if and when BP may
        propose to Complete the Deep Test Well within the Earned Zone in accordance
        with
        Section 6.2. Failure to respond within the time period allowed shall be deemed
        to be an election to make a separate election to participate in such Deep
        Test
        Well if and when BP may propose to Complete the Deep Test Well within the
        Earned
        Zone in accordance with Section 6.2.

      

      6.2 Unless
        Company timely elects to participate in drilling the Deep Test Well to the
        Objective Zone in accordance with Section 6.1, (i) BP shall drill such Deep
        Test

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

      Well
        at
        its sole cost, risk and expense, and (ii) Company shall have no interest
        in the
        Deep Test Well, or any right to production therefrom, unless and until such
        Deep
        Test Well is successfully Completed within the Earned Zone. If and when BP
        elects, at its sole decision, to propose a Completion of such Deep Test Well
        within the Earned Zone, Company shall be given an opportunity to participate
        in
        such Completion attempt according to the Operating Agreement, but only after
        Company pays to BP a well cost adjustment equal to Company’s interest in the
        Zone(s) to be Completed multiplied by the total depreciated value of the
        Deep
        Test Well (including casing and tubing, downhole and wellhead equipment,
        and
        newly acquired surface equipment associated with the Deep Test Well beyond
        the
        wellhead connections). The depreciated value of the Deep Test Well shall
        be
        calculated in accordance with Exhibit “C” of the Operating
        Agreement.

      

      6.3 If
        BP
        proposes to drill and Company timely elects to participate in drilling the
        Deep
        Test Well to the Objective Zone in accordance with Section 6.1, Company shall
        pay 16.67% of the Drilling Costs in such Deep Test Well to Casing Point.
        When
        and if Casing Point is reached in the Deep Test Well, BP shall give written
        notice to Company of such occurrence, and such notice shall state whether
        BP
        proposes to attempt to Complete the Deep Test Well as a producer, whether
        in the
        Objective Zone or in a shallower Zone, or to abandon the Deep Test Well as
        a dry
        hole. The notice shall be accompanied by all Well Information, unless such
        information has been previously furnished to Company.

      

      
        	 	
                (A)

              	
                If
                  BP reaches Casing Point and proposes to Complete the Deep Test
                  Well as a
                  producer, whether in the Objective Zone or another Zone, such notice
                  shall
                  also include a completion AFE. The completion AFE shall include,
                  at a
                  minimum, an estimate of Completion Costs for the Deep Test Well.
                  Company
                  shall have forty-eight (48) hours (exclusive of Saturday, Sunday
                  and
                  holidays) from receipt of the notice to elect, by written notice,
                  whether
                  it will participate in accordance with Section 6.4. BP shall not
                  Complete
                  the Deep Test Well until Company has notified BP in writing whether
                  or not
                  it will participate or until forty-eight (48) hours (exclusive
                  of
                  Saturday, Sunday and holidays) have elapsed since Company’s receipt of
                  BP’s notice. Failure to respond within the time period allowed shall
                  be
                  deemed to be an election not to participate in the Completion of
                  the Deep
                  Test Well.

              

      

      

      
        	 	
                (B)

              	
                If
                  BP reaches Casing Point and proposes to abandon the Deep Test Well
                  as a
                  dry hole, (i) BP shall plug and abandon the Deep Test Well in the
                  same
                  manner as the Initial Well in accordance with Section 2.7, and
                  (ii)
                  Company shall have no right or option to takeover the Deep Test
                  Well.

              

      

      

      6.4 If
        BP
        proposes to Complete the Deep Test Well and Company timely elects to participate
        in such Completion attempt in accordance with Section 6.3(A),

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

      Company
        shall pay 12.5% of the Completion Costs associated with the Deep Test Well
        and
        12.5% of the cost of any newly acquired surface equipment associated with
        the
        Deep Test Well beyond the wellhead connections (including but not limited
        to
        stock tanks, separators, treaters, pumping equipment, piping, and metering
        devices). Company shall also bear its proportionate part, being twelve and
        one-half percent (12.5%), of any severance, production and gathering taxes
        and
        any other taxes imposed or measured by the volume or value of production
        from
        the Deep Test Well, including, but only by way of illustration, excise taxes
        and
        windfall profit taxes, whether enacted by federal, state or local
        authority.

       

      6.5 If
        BP
        proposes to Complete the Deep Test Well and Company elects not to participate
        in
        such Completion attempt, or is deemed not to participate, BP may nonetheless
        continue with such operation and carry Company’s proportionate part of
        Completion Costs. If the Completion attempt is ultimately not successful,
        BP
        shall abandon the Deep Test Well in the same manner as the Initial Well in
        accordance with Section 2.7 or propose to Complete the Deep Test Well in
        another
        Zone under the provisions of Section 6.3 (and Company shall be given another
        opportunity to participate in such newly proposed Completion). If the Completion
        attempt results in the production of oil and/or gas in paying quantities,
        the
        Deep Test Well shall be operated by BP at the expense and for the account
        of BP
        and other parties who agreed to participate in the Completion attempt. By
        electing not to participate in any Completion attempt, or being deemed not
        to
        participate in any Completion attempt, Company shall be deemed to have
        relinquished to BP, and BP shall own and be entitled to receive, all of
        Company’s interest in the Deep Test Well (but
        not
        the Initial Well) and
        share
        of production therefrom until the proceeds of the sale of such share, calculated
        at the well, or market value thereof if such share is not sold (after deducting
        applicable ad valorem, production, severance, windfall profits, and excise
        taxes, royalty, overriding royalty and other interests payable out of or
        measured by the production from the Deep Test Well accruing with respect
        to such
        interest until it reverts), shall equal the total of the following:

      

      
        	 	
                (A)

              	
                thirty-seven
                  and one-half percent (37.5%) of the Completion Costs associated
                  with the
                  Deep Test Well and thirty-seven and one-half percent (37.5%) of
                  the cost
                  of any newly acquired surface equipment beyond the wellhead connections
                  (including but not limited to stock tanks, separators, treaters,
                  pumping
                  equipment, piping and metering devices) (i.e.,
                  300% non-consent penalty on a non-promoted basis);
                  and

              

      

      

      
        	 	
                (B)

              	
                twelve
                  and one-half percent (12.5%) of the cost of operation of the Deep
                  Test
                  Well commencing with first production and continuing until Company’s
                  interest shall revert to it in accordance with this Section 6.5
                  (i.e.,
                  100% non-consent penalty on a non-promoted
                  basis).

              

      

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

      ARTICLE
        VII

      TERM
        AND TERMINATION

      

      7.1 Except
        as
        provided in Sections 7.2 and 7.3, this Agreement shall terminate one (1)
        year
        from the Rig Release Date, if such has not been terminated sooner pursuant
        to
        the provisions hereof; provided, however, the expiration or termination of
        this
        Agreement shall not release any of the Parties from any obligation or liability
        which accrued prior to such expiration or termination (including the costs
        to
        plug and abandon the Initial Well and any Substitute Wells and Additional
        Wells)
        or which, by the terms hereof, is intended to survive such expiration or
        termination, including but not limited to Articles I, XI, XII, XIII, XIV,
        XV,
        XVI, and XVII and Sections 5.1 and 5.6, which terms shall survive
        indefinitely.

      

      7.2 Notwithstanding
        Section 7.1, if the Initial Well is drilled to the Objective Zone and
        successfully Completed as a well capable of producing oil and/or gas in paying
        quantities, this Agreement shall continue for so long as the Operating Agreement
        remains in full force and effect. 

      

      7.3 
        Notwithstanding Section 7.1, this Agreement shall remain in full force and
        effect for so long as Company participates in the drilling of a Substitute
        Well
        in accordance with Section 3.2. 

       

      ARTICLE
        VIII

      ASSIGNMENT;
        PREFERENTIAL RIGHTS

      

      8.1
         The
        rights and obligations created by this Agreement may not be assigned by Company,
        in whole or in part, without first obtaining BP’s written consent under this
        Agreement, such consent not to be unreasonably withheld. If BP consents to
        an
        assignment by Company of all or part of its rights and obligations under
        this
        Agreement, it is nevertheless understood and agreed that any such consent
        shall
        not relieve Company of its primary liability for the performance of and
        compliance with the terms and provisions hereof, and shall not have the effect
        nor be construed to have the effect of waiving this limitation as to future,
        further, or additional assignments. Any assignment of the rights and obligations
        under this Agreement by Company without the consent of BP shall be voidable
        by
        BP.

      

      8.2 Notwithstanding
        anything to the contrary in any other agreement, including the Operating
        Agreement, should Company desire to sell all or any part of its interest
        in the
        Initial Well, the BP Interests, or any Substitute Well or Additional Well,
        Company shall promptly give written notice to BP, with full information
        concerning its proposed disposition, which shall include the name and address
        of
        the prospective transferee (who must be ready, willing and able to purchase),
        the purchase price, a legal description sufficient to identify the property,
        and
        all other terms of the offer. BP shall then have an optional prior right,
        for a
        period of fifteen (15) days after receipt of such

      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

      written
        notice, to purchase for the stated consideration on the same terms and
        conditions the interest which Company proposes to sell.

       

      ARTICLE
        IX

      NOTICE

      

      9.1 All
        notices and other communications required or desired to be given hereunder
        must
        be in writing and sent (properly addressed as set forth below) by (a) certified
        or registered U.S. mail, return receipt requested, with all postage and other
        charges fully prepaid, (b) hand or courier delivery, or (c) facsimile
        transmission. Date of service by mail and delivery is the date on which such
        notice is received by the addressee and by facsimile is the date sent (as
        evidenced by fax machine generated confirmation of transmission); provided,
        however, if such date received is a Saturday, Sunday or legal holiday, then
        date
        of receipt will be on the next date that is not a Saturday, Sunday or legal
        holiday, and if a facsimile is received after 5:00 pm local time, then date
        of
        receipt will be the next date that is not a Saturday, Sunday or legal holiday.
        Each Party may change its address by notifying the other Party in writing
        of
        such address change, and the change will be effective thirty (30) days after
        such notification is received by the other Party.

      

      FOR
        COMPANY:

      True
        North Energy Corp.

      1200
        Smith Street, 16th Floor 

      Houston,
        Texas 77002

      Attention: ______________

      Fax
        No.: (832)
        553-7244

      

      

      FOR
        BP:

      
        	 	
                 

              	
                BP
                  America Production Company 

              

      

      501
        Westlake Park Boulevard

      Houston,
        Texas 77079

      Attention:
        Tuscaloosa Area Land Negotiator

      Fax
        No.(281) 366-4519

      

      ARTICLE
        X

      FORCE
        MAJEURE

      

      10.1 If
        either
        Party is rendered unable, wholly or in part, by Force Majeure to carry out
        its
        obligations under this Agreement, upon such Party giving notice and reasonably
        full particulars of such Force Majeure in writing to the other Party within
        a
        reasonable time after the occurrence of the cause relied upon, the obligations
        of such Party, upon giving said notice, so far as such Party’s ability to
        perform such obligations are materially affected by such Force Majeure, shall
        be
        suspended during the continuance of any inability so caused, and the cause
        of
        the Force Majeure as far as

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

      possible
        shall be remedied with all reasonable dispatch. The term "Force Majeure"
        means
        one or a set of circumstances such as an act of God, strike, lockout or other
        industrial disturbances, act of the public enemy, war, terrorism, blockade,
        riot, lightning, fire, storm, freezing, flood, explosion, governmental action,
        delay, restraint or inaction (whether said government's jurisdiction or
        authority be actual or assumed), including without limitation, governmental
        action or inaction relating to the permitting of wells, and any other cause,
        circumstance or condition (except financial) whether of the kind herein
        enumerated or otherwise, not reasonably within the control of the Party claiming
        Force Majeure. The above requirement that any Force Majeure shall be remedied
        with all reasonable dispatch shall not require the settlement of strikes,
        lockouts or other labor difficulty by acceding to the demands of opponents
        therein when such course is inadvisable in the discretion of the Party claiming
        Force Majeure.

      

      ARTICLE
        XI

      RELATIONSHIP
        OF THE PARTIES; TAX PARTNERSHIP

      

      11.1 This
        Agreement does not create, and shall not be construed to create, a partnership,
        association, joint venture or fiduciary relationship of any kind or character
        between the Parties, and shall not be construed to impose any duty, obligation,
        or liability arising from such a relationship by or with respect to any Party.
        

      

      11.2 For
        federal and state income tax purposes only, the Parties shall be governed
        by the
        terms and provisions of the Caribou Prospect Tax Partnership provisions attached
        as Exhibit “H”.

       

      ARTICLE
        XII

      ENTIRE
        AGREEMENT AND CORPORATE AUTHORITY

      

      12.1 When
        executed by the duly authorized representatives of Company and BP, this
        Agreement shall constitute the entire agreement between the Parties regarding
        the subject matter herein and shall supersede and replace any and all other
        writings, understandings, letters of intent or memorandums of understanding
        entered into or discussed prior to the execution date hereof.

      

      12.2 The
        Parties hereto represent that, as of the date of the execution hereof, they
        are
        corporations duly authorized, validly existing and in good standing under
        the
        laws of the state of their incorporation and are qualified and authorized
        to do
        business in the State of Louisiana and that all requisite corporate power
        and
        authority to duly execute, deliver and effectuate this Agreement have been
        duly
        obtained. 

       

      ARTICLE
        XIII

      LAWS
        AND REGULATIONS; GOVERNING LAW

      
        
           

        

        
          -17-

          
            

          

        

        
           

        

      

      13.1 Each
        Party shall comply with and conduct its operations hereunder in accordance
        with
        the Leases, and if applicable, assignment(s) and other agreements relating
        to
        the Properties, and all applicable laws, ordinances, rules, regulations,
        and
        orders of all federal, state and local governmental authorities having
        jurisdiction over the operations.

      

      13.2 This
        Agreement and all matters pertaining hereto shall be governed by and construed
        under the laws of the State of Louisiana, except to the extent that the conflict
        of law rules of said state would require that the laws of another state would
        govern its validity, construction, or interpretation. 

      

      ARTICLE
        XIV

      DISCLAIMERS
        AND LIMITATION OF LIABILITY

      

      14.1 BP
        hereby expressly disclaims any and all representations and warranties associated
        with the Properties, express, statutory, implied or otherwise, including
        without
        limitation: (a) warranty of title, except as expressly provided in the Partial
        Assignment, (b) existence of any and all prospects, (c) geographic, geologic
        or
        geophysical characteristics associated with any and all prospects, (d)
        existence, quality, quantity or recoverability of hydrocarbon and
        non-hydrocarbon substances associated with the Properties, (e) costs, expenses,
        revenues, receipts, accounts receivable, accounts payable, suspense fund
        or gas
        imbalances associated with the Properties, (f) contractual, economic or
        financial information and data associated with the Properties, (g) continued
        financial viability or productivity of the Properties, (h) environmental
        or
        physical condition of the Properties, (i) federal or state income or other
        tax
        consequences associated with the Properties, (j) absence of patent or latent
        defects, (k) safety, (l) state of repair, (m) merchantability, and (n) fitness
        for a particular purpose; and Company (on behalf of itself and its Affiliates
        and each of their officers, directors, agents, employees, successors and
        assigns) irrevocably waives any and all claims it may have against BP GROUP
        with
        respect to the matters set forth in this Section 14.1.

      

      14.2 Each
        of the Parties expressly waives and agrees not to seek indirect, consequential,
        punitive or exemplary damages of any kind with respect to any dispute arising
        out of or relating to this Agreement or breach hereof.

      

      14.3 Company:
        (a) waives all rights in redhibition pursuant to Louisiana Civil Code Articles
        2520, et
        seq.;
        (b) acknowledges that this express waiver shall be considered a material
        and
        integral part of this Agreement and the consideration thereof; and (c)
        acknowledges that this waiver has been brought to the attention of Company,
        has
        been explained in detail and that Company has voluntarily and knowingly
        consented to this waiver of warranty of fitness and warranty against redhibitory
        vices and defects for the Properties.

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

      14.4 To
        the extent applicable to the Properties, Company hereby waives the provisions
        of
        the Louisiana Unfair Trade Practices and Consumer Protection Law (La. R.S.
        51:1402, et
        seq.).
        Company warrants and represents that it: (a) is experienced and knowledgeable
        with respect to the oil and gas industry generally and with transactions
        of this
        type specifically; (b) posses ample knowledge, experience and expertise to
        evaluate independently the merits and risks of the transactions herein
        contemplated; and (c) is not in a significantly disparate bargaining
        position.

      

      ARTICLE
        XV

      NOT
        CONSTRUED AGAINST DRAFTER

      

      15.1 The
        Parties acknowledge that they have had an adequate opportunity to review
        each
        and every provision contained in this Agreement, including the opportunity
        to
        submit the same to legal counsel for review and comment. Based on said review
        and consultation, the Parties agree with each and every term contained in
        this
        Agreement. Based on the foregoing, the Parties agree that the rule of
        construction that a contract be construed against the drafter, if any, shall
        not
        be applied in the interpretation and construction of this
        Agreement.

      

      ARTICLE
        XVI

      CONSPICUOUSNESS
        OF PROVISIONS

      

      16.1 The
        Parties acknowledge that the provisions contained in this Agreement that
        are set
        out in “bold” satisfy any requirement at law or in equity that provisions
        contained in a contract be conspicuously marked or
        highlighted.

      

      ARTICLE
        XVII

      MISCELLANEOUS
        PROVISIONS

      

      17.1 The
        terms
        and conditions of this Agreement (including the Exhibits) shall be binding
        upon
        and inure to the benefit of the Parties and their successors and permitted
        assigns, and the terms, covenants and conditions shall be covenants running
        with
        the Properties and with each transfer or assignment of the Properties, or
        portion thereof. 

      

      17.2 If
        any
        provision of this Agreement is declared invalid or unenforceable, such
        declaration shall not affect the validity of the other provisions of this
        Agreement, which other provisions shall continue and remain in full force
        and
        effect. 

      

      17.3 This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        considered an original for all purposes.

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

      17.4 The
        article headings in this Agreement are inserted for convenience and
        identification only, and are in no way intended to describe, interpret, define,
        extend or limit the scope or intent of this Agreement or any provisions
        hereof.

      

      17.5 This
        Agreement may be amended, modified, changed, altered or supplemented only
        by
        written instrument (not electronic) duly executed by the parties hereto which
        specifically refers to this Agreement.

      

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

      17.6 The
        following constitute all of the exhibits to this Agreement (the “Exhibits”) and
        are attached hereto and incorporated by reference herein:

      

      Exhibit
        “A” Lease
        Schedule 

      Exhibit
        “B” Map
        of
        the Contract Area 

      Exhibit
        “C” Plat
        of
        the Initial Well 

      Exhibit
        “D” Well
        Information Requirements 

      Exhibit
        “E” Form
        of
        Partial Assignment 

      Exhibit
        “F” Form
        of
        Operating Agreement 

      Exhibit
        “G” Insurance
        Requirements 

      Exhibit
        “H” Caribou
        Prospect Tax Partnership Provisions

      Exhibit
        “I” Copy
        of
        Farmout Agreement

      Exhibit
        “J” Wiring
        Instructions

      

       

      EXECUTED
        by the Parties on the date(s) indicated in the acknowledgments below, but
        effective as of the Effective Date. 

       

      
        
          	
                	 	
                  BP
                    AMERICA PRODUCTION COMPANY

                
	
                  /s/
                    Peter Wroe Foster

                	 	 
	
                  Witness

                	 	 
	 	 	 
	
                  Peter
                    Wroe Foster

                	 	 
	
                  Full
                    Name (Typed or Printed)

                	 	 
	 	 	
                  By:
                    /s/
                    Stacy J. Garvin

                
	 	 	
                  Stacey
                    J. Garvin

                
	
                  /s/
                    Teresa L. Bowerman

                	 	
                  Attorney-in-Fact

                
	
                  Witness

                	 	 
	 	 	 
	
                  Teresa
                    L. Bowerman

                	 	 
	
                  Full
                    Name (Typed or Printed)

                	 	 
	 	 	 
	 	 	 
	 	 	
                  TRUE
                    NORTH ENERGY CORP.

                
	
                  /s/
                    Peter Wroe Foster

                	 	 
	
                  Witness

                	 	 
	 	 	 
	
                  Peter
                    Wroe Foster

                	 	 
	
                  Full
                    Name (Typed or Printed)

                	 	 
	 	 	
                  By:
                    /s/
                    John Folnovic

                
	 	 	 
	
                  /s/
                    Teresa L. Bowerman

                	 	
                  Name:
                    John
                    Folnovic

                
	
                  Witness

                	 	 
	 	 	Title:
                  President
                  and CEO
	
                  Teresa
                    L. Bowerman

                	 	
                
	
                  Full
                    Name (Typed or Printed)

                	 	 

        

        
          
             

          

          
            -21-

            
              

            

          

          
             

          

        

      ACKNOWLEDGMENTS

      

        
          	
                  STATE
                    OF TEXAS

                	
                  §

                
	 	
                  §

                
	
                  COUNTY
                    OF HARRIS

                	
                  §

                

        

        

        On
          this
          6th day of October, 2006, before me appeared STACEY J. GARVIN, to me personally
          known, who, being by me duly sworn, did say that he is Attorney-in-Fact
          for BP
          AMERICA PRODUCTION COMPANY, and that said instrument was signed on behalf
          of
          said corporation.

        

        Given
          under my hand and seal this 6th day of October, 2006

         

        
          	
                  My
                    Commission Expires:

                	
                  4/19/2010

                	
                  /s/
                    Charles J. Davis Jr.

                
	 	 	
                  Notary
                    Public, State of Texas

                
	 	 	 
	 	 	
                  Charles
                    J. Davis Jr.

                
	 	 	
                  Name
                    (Typed or Printed)

                
	 	 	 
	 	 	
                  00470667-9

                
	 	 	
                  Notary’s
                    Identification Number

                

        

        

        

         

        
          	
                  STATE
                    OF TEXAS

                	
                  §

                
	 	
                  §

                
	
                  COUNTY/PARISH
                    OF HARRIS

                	
                  §

                

        

        

        On
          this
          6th day of October, 2006, before me appeared John Folnovic, to me personally
          known, who, being by me duly sworn, did say that he or she is Chief Executive
          Officer of or for TRUE NORTH ENERGY CORP., and that said instrument was
          signed
          on behalf of said corporation.

         

        Given
          under my hand and seal this 6th day of October, 2006

         

        
          	
                  My
                    Commission Expires:

                	
                  4/19/2010

                	
                  /s/
                    Charles J. Davis Jr.

                
	 	 	
                  Notary
                    Public, State of Texas

                
	 	 	 
	 	 	
                  Charles
                    J. Davis Jr.

                
	 	 	
                  Name
                    (Typed or Printed)

                
	 	 	 
	 	 	
                  00470667-9

                
	 	 	
                  Notary’s
                    Identification Number

                

        

      

    

     

    
      
         

      

        -22-

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