Document:

Exhibit 10.17
                            COMMUNITY WEST BANCSHARES
                            INDEMNIFICATION AGREEMENT

     THIS  INDEMNIFICATION AGREEMENT ("Agreement") is made as of the 18th day of
March,  2003  by and between Community West Bancshares, a California corporation
("Company"), and Charles G. Baltuskonis ("Indemnitee"), a director or officer of
the  Company  with  reference  to  the  following  facts:

     A.     The  Company  and  the  Indemnitee recognize that interpretations of
ambiguous  statutes,  regulations,  court opinions and the Company's Articles of
Incorporation  and  Bylaws,  are too uncertain to provide the Company's officers
and  directors  with  adequate  or  reliable  advance knowledge or guidance with
respect  to  the  legal risks and potential liabilities to which they may become
personally  exposed as a result of performing their duties in good faith for the
Company;

     B.     The  Company  and the Indemnitee are aware of the substantial growth
in  the  number  of  lawsuits  filed against corporate officers and directors in
connection  with  their  activities  in  such  capacities and by reason of their
status  as  such;

     C.     The  Company and the Indemnitee recognize that the cost of defending
against  such  lawsuits,  whether  or  not  meritorious, is typically beyond the
financial  resources  of  most  officers  and  directors  of  the  Company;

     D.     The  Company  and  the  Indemnitee  recognize  that  legal risks and
potential  officer  or  director  liabilities,  or  the  threat thereof, and the
resultant  substantial  time  and  expense  endured  in  defending  against such
lawsuit,  bear  no reasonable logical relationship to the amount of compensation
received  by  the  Company's  officers  or  directors.  These  factors  pose  a
significant  deterrent  to,  and  induce  increased  reluctance  on the part of,
experienced  and  capable  individuals  to serve as officers or directors of the
Company;

     E.     The  Company  has  investigated  the  availability and deficiency of
liability  insurance  to  provide  its  officers  and  directors  with  adequate
protection  against  the  foregoing  legal risks and potential liabilities.  The
Company  has  concluded  that such insurance provides only limited protection to
its  officers and directors, and that it is in the best interests of the Company
and  its shareholders to contract with its officers and directors, including the
Indemnitee,  to  indemnify  them  to the fullest extent permitted by law against
personal  liability  for  actions  taken  in the good faith performance of their
duties  to  the  Company;

     F.     Section  317  of  the  General  Corporation  Law  of  the  State  of
California,  which  sets  forth  certain  provisions  relating  to mandatory and
permissive indemnification of officers and directors of a California corporation
by  such corporation, requires indemnification in certain circumstances, permits
it  in  other  circumstances  and  prohibits  it  in  some  circumstances;

<PAGE>
     G.     The  Board  of  Directors  of  the Company has determined, after due
consideration  and  investigation  of  this  Agreement and various other options
available  in  lieu  hereof, that the following Agreement is reasonable, prudent
and  necessary  to  promote and ensure the best interests of the Company and its
shareholders  in  that Agreement is intended to: (1) induce and encourage highly
experienced  and  capable  persons  such  as the Indemnitee to serve as officers
and/or  directors of the Company; (2) encourage such persons to resist what they
consider unjustifiable suits and claims made against them in connection with the
good  faith performance of their duties to the Company, secure in knowledge that
certain  expenses,  costs  and  liabilities incurred by them in their defense of
such  litigation  will  be  borne  by the Company and that they will receive the
maximum  protection  against  such  risks and liabilities as legally may be made
available  to  them;  and (3) encourage officers and directors to exercise their
best  business  judgment  regarding  matters  which  come  before  the  Board of
Directors  without  undue  concern  for the risk that claims may be made against
them  on  account  thereof;  and

     H.     The  Company  desires to have the Indemnitee continue to serve as an
officer  or  director  of  the  Company  free  from  concern  for unpredictable,
inappropriate  or  unreasonable legal risk and personal liabilities by reason of
Indemnitee  acting  in good faith in the performance of Indemnitee's duty to the
Company.  The  Indemnitee desires to continue to serve as an officer or director
of  the  Company,  provided,  and on the express condition, that he is furnished
with  the  indemnity  set  forth  herein.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth  below  and  based  on  the  premises  set  forth  above,  the Company and
Indemnitee  do  hereby  agree  as  follows:

     1.     Definitions.  For  the  purposes  of  this  Agreement, the following
            -----------
definitions  shall  apply:

          (a)     The term "Agent" shall mean any person who is or was acting in
his/her  capacity  as a director or officer of the Company, or is or was serving
as a director, officer, employee or agent of any other enterprise at the request
of the Company, and whether or not Indemnitee is serving in any such capacity at
the  time  any  liability  or  expense  is incurred for which indemnification or
reimbursement  can  be  provided  under  this  Agreement.

          (b)     The  term  "Applicable  Standard" means that a person acted in
good  faith  and  in  a manner such person reasonably believed to be in the best
interests of the Company; except that in a criminal proceeding, such person must
also  have  had  no  reasonable  cause to believe that such person's conduct was
unlawful.  The  termination  of  any  Proceeding by judgment, order, settlement,
conviction  or  upon  a  plea of nolo contendere or its equivalent shall not, of
itself,  create  any presumption, or establish, that the person did not meet the
"Applicable  Standard."

          (c)     The  term "Expenses" includes, without limitation, expenses of
investigations,  judicial or administrative proceedings or appeals, court costs,
attorneys'  fees  and  disbursements and any expenses of establishing a right to
indemnification  under  law  or

<PAGE>
Paragraph  7  of  this Agreement. "Expenses" shall not include the amount of any
                                             -----------------
judgment,  fines or penalties actually levied against Indemnitee or amounts paid
in  settlement  of  a  Proceeding  by  or  on behalf of Indemnitee without court
approval.

          (d)     "Independent  Legal  Counsel"  shall  include  any  firm  of
attorneys  selected by lot by the regular outside counsel for the Company from a
list  of  firms  which  meet minimum size criteria and other reasonable criteria
established  by  the Board of Directors of the Company, so long as such firm has
not  represented  the Company, Indemnitee or any entity controlled by Indemnitee
within  the  preceding  24  calendar  months.

          (e)     References  to  "other  enterprise"  shall  include  employee
benefit  plans; references to "fines" shall include any excise tax assessed with
respect  to  any employee benefit plan; references to "serving at the request of
the  Company"  shall include any service as a director or officer of the Company
which  imposes duties on, or involves services by, such director or officer with
respect  to  an  employee benefit plan, its participants or beneficiaries; and a
person  who  acts in good faith and in a manner he/she reasonably believes to be
in  the  interest  of  the participants and beneficiaries of an employee benefit
plan  shall  be  deemed  to  have  acted  in  a  manner "not opposed to the best
interests  of  the  Company"  as  referred  to  in  this  Agreement.

          (f)     The term "Proceeding" shall include any threatened, pending or
completed action, suit or proceeding, whether brought in the name of the Company
or  otherwise  and whether of a civil, criminal, administrative or investigative
nature,  in  which  Indemnitee  may  be  or may have been involved as a party or
otherwise  (other  than as plaintiff against the Company), by reason of the fact
that  Indemnitee  is  or  was an Agent of the Company or by reason of any action
taken by Indemnitee or of any inaction on Indemnitee's part while acting as such
Agent.

     2.     Agreement to Serve.  Indemnitee agrees to serve or continue to serve
            ------------------
as  a  director  and/or  officer of the Company at the will of the Company or in
accordance with the terms of any agreement with the Company, as the case may be,
for  so  long  as Indemnitee is duly elected or appointed, or until such time as
Indemnitee  tenders  Indemnitee's resignation in writing or Indemnitee's service
is  terminated.

     3.     Indemnity  in  Third Party Proceedings.  The Company shall indemnify
            --------------------------------------
Indemnitee if Indemnitee is made a party to or threatened to be made a party to,
or  otherwise  involved  in, any Proceeding (other than a Proceeding which is an
action by or in the right of the Company to procure a judgment in its favor), by
reason  of  the  fact  that  Indemnitee is or was an Agent of the Company.  This
indemnity  shall  apply, and be limited, to and against all Expenses, judgments,
fines,  penalties,  settlements,  and  other  amounts,  actually  and reasonably
incurred  by  Indemnitee  in  connection  with  the defense or settlement of the
Proceeding,  so  long  as  it  is  determined  pursuant  to  Paragraph 7 of this
Agreement  or by the court before which such action was brought, that Indemnitee
met  the  Applicable  Standard.

     4.     Indemnity  in  Proceeding  By  or  In  the Name of the Company.  The
            --------------------------------------------------------------
Company  shall  indemnify  Indemnitee  if  Indemnitee  is  made  a  party to, or
threatened to be made a party to, or otherwise involved in, any Proceeding which
is  an  action  by  or  in the right of the Company to

<PAGE>
procure  a judgment in its favor by reason of the fact that Indemnitee is or was
an  Agent  of  the  Company.  This indemnity shall apply, and be limited, to and
against  all  Expenses  actually  and  reasonably  incurred  by  Indemnitee  in
connection  with  the defense or settlement of such Proceeding, but only if: (a)
Indemnitee  met  the  Applicable  Standard  (except that the Indemnitee's belief
regarding  the best interests of the Company need not have been reasonable); (b)
Indemnitee  also  acted  in  a  manner  Indemnitee  believed  to  be in the best
interests  of  the  Company's shareholders; and (c) the action is not settled or
otherwise  disposed  of without court approval. No indemnification shall be made
under  this  Paragraph  4  in  respect of any claim, issue or matter as to which
Indemnitee  shall  have  been  adjudged  to  be  liable  to  the  Company in the
performance of such person's duty or the Company, unless, and only to the extent
that,  the court in which such proceeding is or was pending shall determine upon
application  that,  in  view of all the circumstances of the case, Indemnitee is
fairly  and  reasonably  entitled to indemnification for the expenses which such
court  shall  determine.

     5.     Expenses  of  Successful  Indemnitee.  Notwithstanding  any  other
            ------------------------------------
provision of this Agreement, to the extent the Indemnitee has been successful on
the merits in defense of any Proceeding referred to in Paragraphs 3 or 4 hereof,
or  in defense of any claim, issue or matter therein, including the dismissal of
an  action or portion thereof without prejudice, Indemnitee shall be indemnified
against  all  Expenses actually and reasonably incurred in connection therewith.

     6.     Advances  of  Expenses.  The  Expenses incurred by Indemnitee in any
            ----------------------
Proceeding  shall  be  advanced by the Company prior to the final disposition of
such  proceeding  at  the  written request of Indemnitee, but only if Indemnitee
shall  undertake  to repay such advances if it is ultimately determined that the
Indemnitee is not entitled to indemnification as provided for in this Agreement.
Any  advance  required  hereunder  shall  be deemed to have been approved by the
Board  of Directors of the Company to the extent this Agreement was so approved.
In  determining  whether  or  not  to  make an advance hereunder, the ability of
Indemnitee  to repay shall not be a factor.  However, in a Proceeding brought by
the Company directly, in its own right  (as distinguished from an action brought
derivatively  or  by any receiver or trustee), the Company shall have discretion
whether  or  not  to  make  the  advances called for hereby if Independent Legal
Counsel  advises  in writing that the Company has probable cause to believe, and
the  Company does believe, that Indemnitee did not act in good faith with regard
to  the  subject  matter  of  the  Proceeding  or  a  material  portion thereof.

     7.     Right  of  Indemnitee to Indemnification Upon Application; Procedure
            --------------------------------------------------------------------
Upon  Application.  Any  advance  under  Paragraphs  5  and/or  6  hereof  or
-----------------
indemnification  shall  be made no later than 45 days after receipt of a written
request  of  Indemnitee  in  accordance  with Paragraph 11 hereof.  In all other
cases,  indemnification  shall  be made by the Company only if authorized in the
specific  case, upon a determination that indemnification of the Agent is proper
under the circumstances and the terms of this Agreement by:  (a) a majority vote
of a quorum of the Board of Directors (or a duly constituted committee thereof),
consisting  of directors who are not parties to such Proceeding; (b) approval of
the shareholders (as defined in Section 153 of the California Corporations Code,
as  that  Section  reads  at  present),  with  the Indemnitee's shares not being
entitled  to  vote  thereon;  (c)  the  court in which such Proceeding is or was
pending  upon

<PAGE>
application made by the Company, the Indemnitee or any person rendering services
in connection with Indemnitee's defense, whether or not the Company opposes such
application; or (d) to the extent permitted by law, by Independent Legal Counsel
in  a  written  opinion.

          The right to indemnification or advances as provided by this Agreement
shall  be enforceable by Indemnitee in any court of competent jurisdiction.  The
burden  of proving that indemnification or advances are not appropriate shall be
on  the  Company.  Neither  the  failure  of the Company (including its Board of
Directors,  Independent  Legal  Counsel,  or  its  shareholders)  to have made a
determination  prior  to the commencement of such action that indemnification or
advances  are  proper  in  the  circumstances  because  Indemnitee  has  met the
Applicable  Standard  of  Conduct,  nor  an  actual determination by the Company
(including  its Board of Directors or Independent Legal Counsel) that Indemnitee
has  not  met  such  Applicable  Standard  of Conduct, shall be a defense to the
action  or  create  a  presumption  that  Indemnitee  has not met the Applicable
Standard  of  Conduct.  Indemnitee's  Expenses  incurred  in  connection  with
successfully  establishing  Indemnitee's right to indemnification or advances in
any such Proceeding shall also be indemnified by the Company; provided, however,
that  if  Indemnitee  is  only partially successful in establishing Indemnitee's
right  to  indemnification  or  advances, only an equitably allocated portion of
such  Expenses,  as  determined  by  the  court,  shall  be  indemnified.

          If  Indemnitee  is  entitled  under any provision of this Agreement or
indemnification  by  the  Company,  for  some  or  a  portion  of  the Expenses,
judgments,  fines or penalties actually and reasonably incurred by Indemnitee in
the  investigation,  defense,  appeal  or  settlement of any Proceeding but not,
however,  for the total amount thereof, the Company shall nevertheless indemnify
Indemnitee  for the portion (determined on an equitable basis) of such Expenses,
judgments,  fines  or  penalties  to  which  Indemnitee  is  entitled.

     8.     Indemnification  Hereunder  Not  Exclusive.  The  indemnification
            ------------------------------------------
provided  by this Agreement shall not be deemed exclusive of any other rights to
which  Indemnitee  may  be  entitled  under  the  Articles of Incorporation, the
Bylaws,  any agreement, any vote of shareholders or disinterested directors, the
General  Corporation  Law  of  the State of California, or otherwise, both as to
action  in  Indemnitee's  official capacity and as to action in another capacity
while  holding  such  office.  The  indemnification  under  this Agreement shall
continue  as  to  Indemnitee  even  though  Indemnitee  may  have ceased to be a
director  or  officer  and  shall inure to the benefit of the heirs and personal
representatives  of  Indemnitee.

     9.     Limitations.  The  Company  shall not be liable under this Agreement
            -----------
to  make  any  payment in connection with any claim made against the Indemnitee:

          (a)     for  which  payment is actually made to the Indemnitee under a
valid  and  collectible  insurance  policy,  provided, however, that the Company
shall remain liable for any payments required by this Agreement in excess of the
amount  of  payment  under  such  insurance;

          (b)     for  which  the  Indemnitee  is  indemnified  by  the  Company
otherwise  than  pursuant  to  this  Agreement;

<PAGE>
          (c)     for an accounting of profits made from the purchase or sale by
the  Agent  of  securities of the Company within the meaning of Section 16(b) of
the Securities Exchange Act of 1934 and amendments thereto or similar provisions
of  any  state  statutory  law  or  common  law;

          (d)     for acts or omissions that involve intentional misconduct or a
knowing  and  culpable  violation  of  law;

          (e)     for  acts  or  omissions  that  the  Indemnitee believes to be
contrary  to  the  best  interests  of  the  Company or its shareholders or that
involve  the  absence  of  good  faith  on  the  part  of  the  Indemnitee;

          (f)     for  any  transaction  from  which  the  Indemnitee derived an
improper  personal  benefit;

          (g)     for  acts  or omissions that show a reckless disregard for the
Indemnitee's  duty  to the Company or its shareholders in circumstances in which
the  Indemnitee  was aware, or should have been aware, in the ordinary course of
performing  Indemnitee's  duties,  of a risk of serious injury to the Company or
its  shareholders;

          (h)     for  acts or omissions that constitute an unexcused pattern of
inattention  that  amounts  to  an  abdication  of  the Indemnitee's duty to the
Company  or  its  shareholders;

          (i)     under  Section 310 of the General Corporation Law of the State
of  California,  as  that  Section  reads  at  present;  or

          (j)     under  Section 316 of the General Corporation Law of the State
of  California,  as  that  Section  reads  at  present.

     10.     Savings  Clause.  If  this  Agreement  or  any  portion  hereof  is
             ---------------
invalidated  on  any  ground  by  any  court of competent jurisdiction, then the
Company shall nevertheless indemnify Indemnitee as to Expenses, judgments, fines
and penalties with respect to any Proceeding to the full extent permitted by any
applicable  portion  of  this  Agreement  by  any  other  applicable  law.

     11.     Notices.  Indemnitee  shall,  as  a  condition  precedent  to
             -------
Indemnitee's  right  to be indemnified under this Agreement, give to the Company
notice  in writing within thirty (30) days after Indemnitee becomes aware of any
claim  made  against  Indemnitee  for  which  Indemnitee  believes,  or  should
reasonably  believe,  indemnification  will  or  could  be  sought  under  this
Agreement.  Notice  to  the  Company  shall  be  directed  to the Company's main
office,  Attention:  President  (or  such  other  address  as  the Company shall
designate in writing to Indemnitee).  Failure to so notify the Company shall not
relieve  the  Company of any liability which it may have to Indemnitee otherwise
than  under  this  Agreement.

          All  notices, requests, demands and other communications (collectively
"notices")  provided  for  under  this  Agreement shall be in writing (including
communications by telephone,

<PAGE>
or  telecommunication  facilities  providing  facsimile transmission) and mailed
(postage  prepaid  and  return  receipt  requested),  telegraphed,  telexed,
transmitted  or  personally served to each party at the address set forth at the
end  of  this  Agreement  or  at  such  other  address as any party affected may
designate  in  a  written  notice  to  the other parties in compliance with this
section.  All  such notices shall be effective when received; provided, however,
receipt  shall  be  deemed to be effective within three (3) business days of any
properly  addressed notice having been deposited in the mail, within twenty-four
(24)  hours  from  the  time  electronic  transmission  was made, or upon actual
receipt  of  electronic  delivery,  whichever  occurs  first.

          No  costs,  charges  or  expenses  for which indemnity shall be sought
hereunder  shall  be incurred without the Company's consent, which consent shall
not  be  unreasonably  withheld.

     12.     Choice of Law.  This Agreement shall be interpreted and enforced in
             -------------
accordance  with  the  laws  of  the  State  of California, including applicable
statutes  of  limitations  and  other  procedural  statutes.

     13.     Attorneys'  Fees.  If  any legal action is necessary to enforce the
             ----------------
terms  of  this Agreement, the prevailing party shall be entitled to recover, in
addition  to  the  amounts to which the prevailing party may be entitled, actual
attorneys'  fees  and  court  costs  as  may  be  awarded  by  the  court.

     14.     Amendments.  Provisions  of  this Agreement may be waived, altered,
             ----------
amended  or  repealed  in  whole  or  in part only by the written consent of all
parties.

     15.     Parties in Interest.  Nothing in this Agreement, whether express or
             -------------------
implied, is intended to confer any rights or remedies under or by reason of this
Agreement  to  any  persons  other  than  the parties to it and their respective
successors  and  assigns (including an estate of Indemnitee), nor is anything in
this  Agreement  intended to relieve or discharge the obligation or liability of
any  third  persons  to  any  party  hereto.  Furthermore,  no provision of this
Agreement  shall  give  any  third  persons  any  right of subrogation or action
against  any  party  hereto.

     16.     Severability.  If  any portion of this Agreement shall be deemed by
             ------------
a  court  of  competent jurisdiction to be unenforceable, the remaining portions
shall be valid and enforceable only if, after excluding the portion deemed to be
unenforceable,  the  remaining  terms  shall provide for the consummation of the
transaction  contemplated  herein in substantially the same manner as originally
set  forth  at  the  date  this  Agreement  was  executed.

     17.     Successors and Assigns.  All terms and conditions of this Agreement
             ----------------------
shall  be  binding  upon and shall inure to the benefit of the parties and their
respective  transferees,  successors  and  assigns; provided, however, that this
Agreement and all rights, privileges, duties and obligations of the parties, may
not  be  assigned or delegated by any party without the prior written consent of
the  other  parties.

<PAGE>
     18.     Counterparts.  This Agreement may be executed simultaneously in one
             ------------
or  more  counterparts,  each  of  which shall be deemed an original, but all of
which  together  shall  constitute  one  and  the  same  instrument.

     19.     Entire  Agreement.  Except  as provided in Paragraph 8 hereof, this
             -----------------
Agreement represents and contains the entire agreement and understanding between
and  among  the  parties, and all previous statements or understandings, whether
express  or  implied, oral or written, relating to the subject matter hereof are
fully  and  completely  extinguished  and  superseded  by  this Agreement.  This
Agreement  shall not be altered or varied except by a writing duly signed by all
of  the  parties.

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

                              COMMUNITY WEST BANCSHARES
                              445 Pine Avenue
                              Goleta, California 93117

                              By: -----------------------------------
                                   /s/ Michael A. Alexander

                              Its: Chairman of the Board of Directors

Indemnitee

         -----------------------------------------
               /s/  Charles G. Baltuskonis

Address:     c/o Community West Bancshares

<PAGE>EXHIBIT 10.20
                                 No. 2002-48702
 ______________________________________________________________________________

MILLENNIUM  SEISMIC,  INC.                |     IN  THE  DISTRICT  COURT  OF
                                          |
                                          |
vs.                                       |     HARRIS  COUNTY,  TEXAS
                                          |
                                          |
HOUSTON  AMERICAN  ENERGY  CORP.,  and    |
JOHN  F.  TERWILLIGER                     |     280TH  JUDICIAL  DISTRICT
_____________________________________________________________________________

                  COMPROMISE SETTLEMENT AGREEMENT AND COMPLETE
                             RELEASE OF ALL LAWSUITS

     This  Compromise  Settlement Agreement and Complete Release Of All Lawsuits
(this  "Agreement")  is  entered  by  and  between  MILLENNIUM  SEISMIC,  INC.
("Millennium")  and  HOUSTON  AMERICAN  ENERGY  CORP.  and  JOHN  F. TERWILLIGER
(collectively,  the  "Houston  American  Parties").

                                    RECITALS

     WHEREAS, Millennium filed this lawsuit (the "Lawsuit"), in which Millennium
sought  damages,  all  as  shown in Millennium's Petition, reference to which is
hereby  made  for  all purposes as though those same pleadings were fully copied
and  set  forth  at  length  herein;  and

     WHEREAS,  the  Houston  American  Parties  filed  a  counterclaim  against
Millennium  (the  "Counterclaim"), all as shown in the Houston American Parties'
Special  Exceptions, Answer, and Counterclaim, reference to which is hereby made
for  all purposes as though those same pleadings were fully copied and set forth
at  length  herein;  and

     WHEREAS,  bona  fide  disputes  and controversies continue to exist between
Millennium  and  the Houston American Parties as to any liability of the Houston
American Parties for claims and damages alleged in the Lawsuit and any liability
of Millennium for claims and damages alleged in the Counterclaim, and because of
such  disputes  and  controversies,  Millennium and the Houston American Parties
desire to fully compromise, release and settle any and all direct and derivative
claims  relating  to  the  Lawsuit  or  the Counterclaim and to the incidents or
events  described therein as to which Millennium or the Houston American Parties
now  have  or  may  have  in  the  future  against the other and/or their heirs,
executors,  personal  representatives,  successors  and  assigns,  affiliates or
agents,  both Millennium and the Houston American Parties, intending that all of
the  terms  and  conditions of their settlement shall be fully set forth in this
Agreement;  and

     WHEREAS, it is understood and agreed by Millennium and the Houston American
Parties that this Agreement is executed for the purpose of settling all disputes
between  them and is not to be construed as an admission of any liability, which
Millennium  and  the Houston American Parties have expressly denied and continue
to  deny;

     NOW,  THEREFORE, in consideration of the foregoing and the following mutual
covenants  and  agreements, Millennium and the Houston American Parties agree as
follows:

     1.     Dismissal  of  the Lawsuit.  Contemporaneously with the execution of
            --------------------------
this  Agreement, Millennium shall enter a joint motion to dismiss the Lawsuit in
a  document  that  shall  effectively  dismiss the Lawsuit in its entirety, with
prejudice as to its refiling, which motion shall reference the existence of this
Agreement  and  shall  dispose  of  all  claims brought or which could have been
brought  in  the  Lawsuit.

     2.     Dismissal of the Counterclaim.  Contemporaneously with the execution
            -----------------------------
of  this  Agreement,  the Houston American Parties shall enter a joint motion to
dismiss  the  Counterclaim  in  a  document  that  shall effectively dismiss the
Counterclaim  in  its  entirety, with prejudice as to its refiling, which motion
shall  reference the existence of this Agreement and shall dispose of all claims
brought  or  which  could  have  been  brought  in  the  Counterclaim.

                                        1
<PAGE>
     3.     Release  of  the Houston American Parties.  In consideration for the
            -----------------------------------------
agreement  by  the  Houston American Parties to the terms and conditions of this
Agreement,  plus  other  good  and  valuable  consideration,  inclusive  of  all
attorneys'  fees,  interest,  costs and expenses, the receipt and sufficiency of
which  are  hereby  acknowledged,  Millennium, and its predecessors, successors,
agents,  consultants, attorneys, legal representatives, assigns, and third party
entities  acting in their behalf (collectively identified and referred to herein
as  the  "Millennium  Releasing  Parties,")  do  hereby forever Release, Acquit,
Relinquish  and Forever Discharge the Houston American Parties, and their heirs,
executors,  personal  representatives,  successors  and  assigns,  affiliates or
agents,  employees,  attorneys,  consultants, shareholders, officers, directors,
and  other  legal  representatives,  and  insurers  (collectively identified and
referred  to  herein as the "Houston American Released Parties") of and from any
and  all causes of action, claims, demands, suits, liabilities, costs, expenses,
losses,  damages,  and  attorneys'  fees,  past,  present  and  future, known or
unknown,  fixed  or  contingent,  liquidated  or  unliquidated,  of  any  nature
whatsoever  relating  or  pertaining  to,  arising  out  of  or to arise out of,
resulting  from  or  to  result  from  the  matters  and  events asserted in the
pleadings  on  file  in  the Lawsuit, or which might have been asserted or could
have  been  asserted  therein by or on behalf of any of the Millennium Releasing
Parties  against any of the Houston American Released Parties, including but not
limited  to  any  claims,  causes of action or theories of liability or recovery
based  on  contract,  tort,  intentional  tort,  negligence,  gross  negligence,
negligence per se, failure to warn, breach of fiduciary or special relationship,
fraud,  malice,  alter  ego,  property  damage, punitive damages, past or future
medical  expenses,  physical  pain  and  suffering,  mental  anguish,  emotional
distress,  lost  wages, disfigurement, impairment, lost consortium, or any other
personal  injury  or  property damage claims of any nature whatsoever, including
attorneys'  fees  and  interest  thereon.

     The  Millennium  Releasing  Parties acknowledge that it is the intention of
all  the parties hereto or mentioned herein that any and all other claims and/or
relief  of  any  kind  or character whatsoever in connection with the Lawsuit by
Millennium  against  the  Houston  American  Parties  are hereby forever WAIVED,
RELEASED,  DISCHARGED and RELINQUISHED.  Millennium expressly waives and assumes
the  risk  of  claims  for  unknown  and  unanticipated  injuries and damages to
Millennium which exist on this date but about which Millennium knows nothing nor
suspects  to  exist  whether  through ignorance, oversight, error, negligence or
otherwise,  and  which,  if  known, would or might have a material affect on the
Millennium's  decision  to  enter  this  Agreement.

     4.     Release  of  Millennium.  In  consideration  for  the  agreement  by
            -----------------------
Millennium  to  the  terms and conditions of this Agreement, plus other good and
valuable  consideration,  inclusive  of all attorneys' fees, interest, costs and
expenses,  the  receipt  and  sufficiency  of which are hereby acknowledged, the
Houston  American  Parties,  all  of  their  predecessors,  successors,  agents,
consultants,  attorneys,  heirs,  beneficiaries, legal representatives, assigns,
and  third  party  entities  acting in their behalf (collectively identified and
referred  to  herein  as  the  "Houston  American Releasing Parties,") do hereby
forever  Release,  Acquit,  Relinquish and Forever Discharge Millennium, and its
personal  representatives,  successors  and  assigns,  affiliates  or  agents,
employees,  attorneys, consultants, shareholders, officers, directors, and other
legal  representatives,  and  insurers  (collectively identified and referred to
herein  as  the "Millennium Released Parties") of and from any and all causes of
action,  claims,  demands, suits, liabilities, costs, expenses, losses, damages,
and  attorneys'  fees,  past,  present  and  future,  known or unknown, fixed or
contingent,  liquidated  or  unliquidated,  of any nature whatsoever relating or
pertaining  to,  arising  out of or to arise out of, resulting from or to result
from  the  matters  and  events  asserted  in  the  pleadings  on  file  in  the
Counterclaim,  or  which  might  have  been asserted or could have been asserted
therein by or on behalf of any of the Houston American Releasing Parties against
any of the Millennium Released Parties, including but not limited to any claims,
causes  of  action or theories of liability or recovery based on contract, tort,
intentional  tort,  negligence,  gross negligence, negligence per se, failure to
warn,  breach  of  fiduciary  or special relationship, fraud, malice, alter ego,
property  damage,  punitive  damages,  past or future medical expenses, physical
pain  and  suffering,  mental  anguish,  emotional  distress,  lost  wages,
disfigurement,  impairment,  lost  consortium,  or  any other personal injury or
property  damage  claims of any nature whatsoever, including attorneys' fees and
interest  thereon.

     The Houston American Releasing Parties acknowledge that it is the intention
of  all  the  parties  hereto  or mentioned herein that any and all other claims
and/or  relief  of  any  kind  or  character  whatsoever  in connection with the
Counterclaim  by  the  Houston  American  Parties  against Millennium are hereby
forever  WAIVED,  RELEASED,  DISCHARGED  and RELINQUISHED.  The Houston American
Parties  expressly  waive  and  assume  the  risk  of  claims  for  unknown  and
unanticipated  injuries  and damages to the Houston American Parties which exist
on  this  date  but  about  which  the Houston American Parties know nothing nor
suspect  to  exist  whether  through  ignorance, oversight, error, negligence or
otherwise,  and  which,  if  known, would or might have a material affect on the
Houston  American  Parties'  decision  to  enter  this  Agreement.

                                        2
<PAGE>
     5.     Hold  Harmless  by  Millennium.  In  further  consideration for this
            ------------------------------
Agreement,  Millennium agrees to indemnify and hold harmless each of the Houston
American Released Parties from any and all claims, differences, demands, losses,
liabilities,  damages,  causes  of  action,  defense  costs  and  expenses,  and
attorneys'  fees,  of any nature, type or character whatsoever, including claims
for  contractual,  statutory or equitable subrogation, whether known or unknown,
whether  for compensatory, punitive, exemplary or any other damages or indemnity
of  any kind or character in contract or in tort that may accrue of have accrued
relating  to  or  otherwise  in  connection  with the allegations in the Lawsuit
asserted  by  anyone  claiming  by,  through or under Millennium or its personal
representatives,  successors  and  assigns.

     6.     Hold  Harmless  by  the  Houston  American  Parties.  In  further
            ---------------------------------------------------
consideration  for  this  Agreement,  the  Houston  American  Parties  agree  to
indemnify and hold harmless each of the Millennium Released Parties from any and
all  claims,  differences,  demands,  losses,  liabilities,  damages,  causes of
action,  defense costs and expenses, and attorneys' fees, of any nature, type or
character  whatsoever,  including claims for contractual, statutory or equitable
subrogation,  whether  known  or  unknown,  whether  for compensatory, punitive,
exemplary or any other damages or indemnity of any kind or character in contract
or  in  tort  that  may  accrue  of  have  accrued  relating  to or otherwise in
connection  with the allegations in the Counterclaim asserted by anyone claiming
by,  through  or  under  the Houston American Parties or their heirs, executors,
personal  representatives,  successors  and  assigns.

     7.     Covenant  Not  to  Sue  by  Millennium.  In  consideration  of  this
            --------------------------------------
Agreement  and  the other consideration recited herein, Millennium, its personal
representatives, successors and assigns hereby agree not to sue, make any claims
against,  nor  institute any action or proceeding, nor seek recovery directly or
indirectly  against  any  of  the  Houston  American Released Parties to recover
damages  of  any kind or character, either to person or property, resulting from
the  incidents  described  in the Lawsuit or which may in any manner hereinafter
arise  out  of  the  incidents  described  in  the  Lawsuit.

     8.     Covenant  Not  to  Sue  by  the  Houston  American  Parties.  In
            -----------------------------------------------------------
consideration  of this Agreement and the other consideration recited herein, the
Houston  American  Parties,  their  heirs,  executors, personal representatives,
successors  and  assigns  hereby  agree not to sue, make any claims against, nor
institute  any  action  or  proceeding, nor seek recovery directly or indirectly
against any of the Millennium Released Parties to recover damages of any kind or
character,  either to person or property, resulting from the incidents described
in  the  Counterclaim  or  which  may in any manner hereinafter arise out of the
incidents  described  in  the  Counterclaim.

     9.     Termination  of  the  Exchange  Agreement.  In consideration of this
            -----------------------------------------
Agreement  and  the  other  consideration  recited herein, that certain Exchange
Agreement  executed on July 19, 2002 by and between Millennium Seismic, Inc. and
Houston  American  Energy  Corp.  (the  "Exchange Agreement") including, but not
limited  to,  any  other  agreements  or  instruments  executed  in  connection
therewith,  are  deemed terminated for all purposes and no longer have any force
or  effect.

     10.     Cancellation of Stock Certificate and Warrant.  In consideration of
             ---------------------------------------------
this  Agreement  and  the  other  consideration  recited herein, the certificate
representing  1,000,000  shares  of  the common stock of Houston American Energy
Corp., par value $0.001 per share, and the warrant to purchase 750,000 shares of
the  common  stock of Houston American Energy Corp., par value $0.001 per share,
delivered  to Millennium pursuant to the Exchange Agreement are deemed cancelled
as  of  the date of their issuance and the same have no further force or effect.
Millennium  has  returned  said  certificate and warrant to the Houston American
Parties.

     11.     Representations and Warranties of Millennium.  Millennium expressly
             --------------------------------------------
represents  and  warrants  to each and all of the Houston American Parties that:

          (a)  Millennium  is  duly  authorized  to  execute  this  Agreement;

          (b)  All  expenses  of  any  and every nature and character whatsoever
incurred by Millennium or on its behalf, past or future, arising from all of the
incidents  described  in  the  Lawsuit  and  from the Lawsuit itself are not the
obligation  of  any  of  the  Houston  American  Released  Parties;

          (c)  There  are  no  unresolved  issues;

                                        3
<PAGE>
          (d)  Millennium's  claims  in  the  Lawsuit  have  not  been assigned,
pledged,  or  otherwise  in  any manner whatsoever sold or transferred or become
subject  to a lien, either by instrument, in writing or otherwise, including any
right,  interest  or  claim  which  Millennium  may have now or in the future by
reason  of  the incidents described in the Lawsuit or any matters arising out of
or  related  thereto;  and

          (e)  No  representations,  if  any, about the nature and extent of the
claims  of Millennium or damages thereunder made by any attorney or agent of any
of  the  Houston  American  Released  Parties,  nor any representations, if any,
regarding  the  nature and extent of legal liability or financial responsibility
of any of the Houston American Released Parties have induced Millennium to enter
into  this  Agreement.

     12.     Representations  and  Warranties  of  the Houston American Parties.
             ------------------------------------------------------------------
The Houston American Parties expressly represent and warrant to Millennium that:

          (a)  The  Houston  American Parties are duly authorized and/or legally
competent  to  execute  this  Agreement;

          (b)  All  expenses  of  any  and every nature and character whatsoever
incurred  by  the  Houston  American Parties or on their behalf, past or future,
arising  from  all  of  the incidents described in the Counterclaim and from the
Counterclaim  itself  are not the obligation of the Millennium Released Parties;

          (c)  There  are  no  unresolved  issues;

          (d)  The Houston American Parties' claims in the Counterclaim have not
been  assigned,  pledged,  or  otherwise  in  any  manner  whatsoever  sold  or
transferred  or  become  subject  to a lien, either by instrument, in writing or
otherwise,  including  any  right,  interest or claim which the Houston American
Parties  may  have  now or in the future by reason of the incidents described in
the  Counterclaim  or  any  matters  arising  out  of  or  related  thereto; and

          (e)  No  representations,  if  any, about the nature and extent of the
claims  of  the  Houston  American  Parties  or  damages  thereunder made by any
attorney  or  agent of the Millennium Released Parties, nor any representations,
if  any,  regarding  the  nature  and  extent  of  legal  liability or financial
responsibility  of  any  of  the  Millennium  Released  Parties have induced the
Houston  American  Parties  to  enter  into  this  Agreement.

     13.     Applicable  Law.  Millennium and the Houston American Parties agree
             ---------------
that  this  Agreement may be signed in multiple counterparts, shall be construed
and  interpreted  in  accordance  with the laws of Texas, and that venue for any
dispute  in  connection  with  this  Agreement  shall  be  Harris County, Texas.

     14.     Attorneys'  Fees.  Each  party  shall pay its respective attorneys'
             ----------------
fees  in  connection  with  the  Lawsuit,  the Counterclaim, and this Agreement.

     15.     Entire  Agreement  and  Successors  in  Interest.  This  Agreement
             ------------------------------------------------
contains  the  entire  agreement  between  Millennium  and  the Houston American
Parties  with  regard to matters set forth herein, and shall be binding upon and
inure  to  the  benefit  of  the  respective executors, administrators, personal
representatives,  heirs,  successors  and  assigns of Millennium and each of the
Houston  American  Parties.

                                        4
<PAGE>
     IN  WITNESS  WHEREOF,  this  Agreement  has  been  executed  the ___ day of
December,  2002.

                                        MILLENNIUM SEISMIC, INC.

                                        By /s/  Jesse  R.  Marion
                                          ----------------------
                                          Jesse  R.  Marion,  President

                                        HOUSTON  AMERICAN  ENERGY  CORP.

                                        By /s/  John  F.  Terwilliger
                                          --------------------------
                                          John  F.  Terwilliger,  President

                                          /s/  John  F.  Terwilliger
                                        ----------------------------
                                        JOHN  F.  TERWILLIGER

<PAGE>

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