Document:

Agreement for Purchase of Interests

 Exhibit No. 10.7 
  
 Fellows Energy Ltd. 
 370 Interlocken Blvd. Suite 400 
 Broomfield, Colorado 80021 
 (303) 327-1525 
  
 March 1, 2005 
  
 Mr. Paul Mysyk 
 Quaneco, LLC 
 35010 Chadron Road 
 Suite 200 
 Willoughby Hills, OH 44094 
  
 SENT BY FAX TO: (440) 954-5026 
  

	RE:	Letter Agreement for Purchase of Interests in the Castle Rock and Kirby CBNG Projects 

	 	Castle Rock Project: *, * and * Powder River County, Montana 

	 	Kirby Project; * and * Big Horn and Custer Counties, Montana 

  
 Dear Paul, 
  
 Fellows Energy Ltd. (“Fellows”) hereby offers to purchase a 12.5% working interest in the Castle Rock and Kirby Coal Bed Natural Gas Projects, inclusive of said working interest in * wells previously drilled
in the Kirby Project (the “Properties”), on the terms and conditions listed in the attached Exhibit 1 and within this Letter Agreement. 
  
 This Letter Agreement and the offer made herein are based upon the terms and subject to the conditions set forth below. This offer has been made without the benefit of
reviewing certain title and other information in your possession. We have prepared this offer using publicly available information and information provided by you. We hope to expeditiously review any additional information you may make available to
us in order to remove certain of the conditions to which this Letter Agreement is subject. Other than such conditions, upon execution, this Letter Agreement is binding and sets forth the basic business terms and conditions under which the parties
will proceed to formalize a definitive agreement for the purchase described above and close said purchase. 
  
 Upon the execution of this Letter Agreement and for a period of 30 days thereafter (or such longer period as may be provided for in a definitive agreement) Quaneco will not entertain, solicit or encourage any inquiry
or proposal, from any third party concerning the acquisition of the Properties. 
  
 This offer shall expire at 5:00 p.m. Mountain Time on Friday, March 4, 2005. Once executed by all parties, this Letter Agreement shall expire on April 10, 2005 unless extended by the parties or superceded by a definitive agreement.

  
 This Letter Agreement may be superseded and replaced by a definitive purchase
agreement incorporating all of the material terms hereof and such other terms as are customary in transactions of the type contemplated herein. 
  

	*	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 1 

 PURCHASE PRICE: 
  
 Subject to the completion of due diligence and analyses of valuation, it is anticipated that the purchase price will be $4,850,000. The timing of, and form of,
consideration paid will be in cash and stock of Fellows as described in Exhibit 1 and as set forth below: 
  

	 	1.	Fellows shall pay $4,850,000 in cash and stock for 12.5% working interest in the 235,000 acres comprising the Properties, inclusive of a 12.5% working interest in 18 wells already
drilled and completed in the Kirby Project. This purchase price includes $4,406,250 in consideration for lease rights and $443,750 in consideration for the 18 wells in the Kirby Project. It is agreed that Quaneco shall be responsible for paying all
costs of drilling, completion and gathering infrastructure relating to the 12.5% working interest in the existing 18 wells in the Kirby Project. 

  

	 	2.	Of the total purchase price $3,850,000 shall be in the form of cash. Of this amount, $2,880,000 shall be due on April 10, 2005, and the balance of $970,000 shall be due on July 1,
2005. 

  

	 	3.	The balance of consideration due on April 10, 2005 of $1,000,000 shall be in the form of Fellows stock valued at $1.00 per share, or 1,000,000 shares of Fellows stock.

  

	 	4.	If Fellows makes the payment of $2,880,000 in cash plus 1,000,000 shares of Fellows stock on April 10, but fails to make the payment of $1,000,000 on or before July 1, 2005, it
shall be deemed to have earned a *% working interest in the Properties and the Kirby wells. 

  

	 	5.	Assignment of the 12.5% working interest in the properties from Quaneco to Fellows will be made within five business days of receipt of the final cash payment due July 1, 2005.

  
 CONDITIONS TO THE PURCHASE: 
  
 The following are the conditions to which our offer is subject: 
  

	 	1.	The transaction is subject to the completion of an offering in connection with the transaction of at least an amount sufficient to pay the cash portion of the purchase price prior
to April 10, 2005. 

  

	 	2.	Any purchase rights or rights of refusal to which the Properties are subject are waived; standard confidentiality and announcement procedures shall apply, as agreed by the parties
and in accordance with normal industry practice. 

  

	 	3.	Satisfactory legal due diligence verifying title interest in and to the Properties. 

  

	 	4.	Satisfactory completion of an analysis of the value of the Properties by Fellows or an independent and qualified third party appointed by Fellows showing that the value thereof is
substantially equivalent to the market value of Fellows. 

  

	 	5.	Completion of the contemplated offering by Fellows in connection with the transaction in an amount at least enabling the payment of the cash portion oft. be purchase price,

  

	 	6.	Formal corporate and regulatory approvals as required by the parties. 

  

	 	7.	Closing to occur within five business days of completion of Fellows’ offering, with the parties cooperating in good faith to engage investment bankers and brokers to complete
the financing as soon as possible. 

  

	*	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 2 

 If the foregoing meets with your approval, and you desire to proceed with the sale of your interest as described above,
and as provided herein, please so indicate and affirm by executing a copy of this Letter Agreement and returning a copy to George S Young at Fellows Energy. 
  
 Sincerely, 
  

	
	FELLOWS ENERGY LTD.
	
	 /s/ George S. Young

	 George S. Young

	 President & CEO

  
 AGREED AND ACCEPTED
THIS              DAY OF MARCH, 2005 
  

			
		
	BY:	 	 /s/ Paul Mysyk

	 	 	 Paul Mysyk

	 	 	 Quaneco, LLC

  

	*	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 3 

 Exhibit 1 to Letter Agreement Dated March 1, 2005 
 between 
 Fellows Energy Ltd. and Quaneco, LLC

  

			
	Castle Rock	  	 
		
	Counter Party:	  	Quaneco, L.L.C., an Oklahoma limited liability company
	Acreage:	  	* acres, more or less (to be confirmed through due diligence)
	Purchase Price:	  	$* per net mineral acre or a total of $2,625,000
		
	Payment:	  	 
	 Stock Portion:
	  	541,237 shares for $541,237 in consideration
	 Cash Portion:
	  	$2,083,763
		
	Location:	  	*, * and * Powder River County, Montana
	Principal Coals:	  	Pawnee, Sawyer. and Flowers-Goodale coals
	Other Coals:	  	Cook, Lower Cook, Brewster-Arnold, Knobloch, Terret, and Stag coals.
	Planned Drilling:	  	Four or five pilot projects of 16 wells each are planned for the Castle Rock block in 2005
	Drilling Budget:	  	$562,000 for 12.5% working interest in 48 wells
		
	Kirby	  	 
		
	Counter Party:	  	Quaneco, L.L.C., an Oklahoma limited liability company
	Acreage:	  	95,000 acres, more or less (to be confirmed through due diligence)
	Purchase Price:	  	$150 per net mineral acre (or a total of $1,781,250), plus $443,750 for 12.5% working interest in 18 existing wells, or a total of $2,225,000
		
	Payment:	  	 
	 Stock Portion:
	  	458,763 shares for $458,763 in consideration
	 Cash Portion:
	  	$1,766,237
		
	Location:	  	* and * Big Horn and Custer Counties, Montana
	Principal Coals:	  	Wall, Brewster-Arnold, Sawyer and Flowers-Goodale coals
	Planned Drilling:	  	48 are planned for the Kirby block in 2005
	Drilling Budget:	  	$562,000 for 12.5% working interest in 48 wells

  
 Total Cash Budget

  
 * 
  
 $4,974,000 cash required for acquisition of 12.5 working interest in properties, inclusive of interest in * existing wells, and development
of 12.5% working interest in * wells 
  
 Total Stock Portion of Transaction

  
 1,000,000 shares issued as consideration for $1,000,000 of purchase
price. 
  

	*	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 4Consultant Agreement

 Exhibit 10.11 
  
 CONSULTANT AGREEMENT 
  

This Agreement is made and entered into as of the 1st day of February, 2005, between Fellows Energy, Ltd. and CEOcast, Inc. (the “Consultant”) 
  
 In consideration of and for the mutual promises and covenants contained
herein, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows: 
  

	1.	Purpose. The Company hereby employs the Consultant during the Term (as defined below) to render Investor Relations services to the Company, upon the terms and conditions as
set forth herein. 

  

	2.	Term. This Agreement shall be effective for a three-month period (the “Term”) commencing on the date hereof. 

  

	3.	Duties of Consultant. During the term of this Agreement, the Consultant shall provide to the Company those services outlined in Exhibit A. Notwithstanding the foregoing, it
is understood and acknowledged by the parties that the Consultant: (a) shall perform its analysis and reach its conclusions about the Company independently, and that the Company shall have no involvement therein; and (b) shall not render advice
and/or services to the Company in any manner, directly or indirectly, that is in connection with the offer or sale of securities in a capital raising transaction or that could result in market making. 

  

	4.	Expenses. The Company, upon receipt of appropriate supporting documentation, shall reimburse the Consultant for any and all reasonable out-of-pocket expenses incurred by it
in connection with services requested by the Company, including, but not limited to, all charges for travel, printing costs and other expenses spent on the Company’s behalf. The Company shall immediately pay such expenses upon the presentation
of invoices. Consultant shall not incur more than $500 in expenses without the express consent of the Company. 

  

	5.	Compensation. For services to be rendered by the Consultant hereunder, the Consultant shall receive from the Company upon the signing of the Agreement: (a) $7,500 (the
“Retainer”), which represents the first month’s payment under the Agreement and 50,000 shares of the Company’s fully-paid non-assessable, common stock (the “Common Stock”). In addition, the Company shall pay Consultant
$7,500 on or before the 1st day of each month during the term of the program. The Company shall also pay Consultant expenses as outlined in Section 4 upon presentation of invoices. Company agrees, at its expense, to register Consultant’s shares
in connection with the next registration of its securities (“piggyback registration rights”). In addition, Consultant shall receive a fee equal to six percent of the gross proceeds and six percent of the warrants for any party (the
“Investor”) that Consultant introduces the Company to if the Investor makes a direct investment in the Company within six months from the date of introduction. 

  

	6.	Further Agreements. Because of the nature of the services being provided by Consultant hereunder, Consultant acknowledges that if it may receive access to Confidential
Information (as defined in Section 6 hereof) and that, as a consultant to the Company, it will attempt to provide advice that serves the best interest of the Company. Because of the uniqueness of this relationship, the Consultant covenants and
agrees that, with respect to the Common Stock that it receives, Consultant shall, at all times that it is the beneficial owner of such shares, vote such shares on all matters coming before it as a stockholder of the Company in the same manner as the
majority of the Board of Directors of the Company shall recommend. 

  

	7.	 Confidentiality. Consultant acknowledges that as a consequence of its relationship with the Company, it may be given access to confidential information which
may include the following types of information; financial statements and related financial information with 

  

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respect to the Company and its subsidiaries (the “Confidential Financial information”), trade secrets, products, product development, product
packaging, future marketing materials, business plans, certain methods of operations, procedures, improvements, systems, customer lists, supplier lists and specifications, and other private and confidential materials concerning the Company’s
business (collectively, “Confidential Information”). 

  
 Consultant covenants and agrees to hold such Confidential Information strictly confidential and shall only use such information solely to
perform its duties under this Agreement and Consultant shall refrain from allowing such information to be used in any way for its own private or commercial purposes. Consultant shall also refrain from disclosing any such Confidential Information to
any third parties. Consultant further agrees that upon termination or expiration of this Agreement, it will return all Confidential Information and copies thereof to the Company and will destroy all notes, reports and other material prepared by or
for it containing Confidential Information. Consultants understands and agrees that the Company might be irreparably harmed by violation of this Agreement and that monetary damages may be inadequate to compensate the Company. Accordingly, the
consultant agrees that, in addition to any other remedies available to it at law or in equity, the Company shall be entitled to injunctive relief to enforce the terms of this Agreement. 
  
 Notwithstanding the foregoing, nothing herein shall be construed as prohibiting Consultant from disclosing
any Confidential Information (a) which at the time of disclosure Consultant can demonstrate either was in the public domain and generally available to the public or thereafter becomes a part of public domain and is generally available to the public
by publication or otherwise through an act of the Consultant; (b) which Consultant can establish was independently developed by a third party who developed it without the use of the Confidential Information and who did not acquire it directly or
indirectly from Consultant under an obligation of confidence; (c) which Consultant can show was received by it after the termination of this Agreement from a third party who did not acquire it directly or indirectly from the Company under an
obligation of confidence; or (d) to the extent that the Consultant can reasonably demonstrate such disclosure is required by law or in any legal proceeding, governmental investigations, or other similar proceeding. 
  
 Severability. If any provision of this Agreement shall be held or
made invalid by a statute, rule, regulation, decision of a tribunal or otherwise the remainder of this Agreement shall not be affected thereby and, to this extent the provisions of this Agreement shall be deemed to be severable. 
  

	8.	Governing Law Venue; Jurisdiction. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of the New York without reference
to principles of conflicts or choice of law thereof. Each of the parties consents of the jurisdiction of the U.S. District Court in the Southern District of New York in connection with any dispute arising under this Agreement and hereby waives to
the maximum extent permitted by law, any objection including any objection based on forum non conveniens to the bringing of any such proceeding in such jurisdictions. Each party hereby agrees that if another party to this
Agreement obtains a judgment against it in such a proceeding, the party which obtained such judgment may enforce same summary judgment in the courts of any country having jurisdiction over the party against whom such judgment was obtained, and each
party hereby waives any defenses available to it under local law and agrees to the enforcement of such a judgment. Each party to this Agreement inevocably consents to the service of process in any such proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid, to such party at it address set forth herein. Nothing herein shall affect the right of any party to serve process in any other manner permitted by law. Each party waives its rights to a trial by jury.

  

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	9.	Miscellaneous 

  

	(a)	Any notice or other communication between parties hereto shall be sufficiently given if sent by certified or registered mail, postage prepaid, if to the Company, addressed to it at
                                 or if to the Consultant, addressed to it
at CEOcast, Inc., 55 John Street, 11th floor, New York, New York 10038, Attention: Administrator, facsimile number:
(212) 732-1131, or to such address as may hereafter be designated in writing by one party to the other. Any notice or other communication hereunder shall be deemed given three days after deposit in the mail if mailed by certified mail, return
receipt requested, or on the day after deposit with an overnight courier service for next day delivery, or on the date delivered by hand or by facsimile with accurate confirmation generated by the transmitting facsimile machine, at the address or
number designated above (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours
where such notice is to be received). 

  

	(b)	This Agreement embodies the entire Agreement and understanding between the Company and the Consultant and supersedes any and all negotiations, prior discussions and preliminary and
prior arrangements and understandings related to the central subject matter hereof. 

  

	(c)	This Agreement has been duly authorized, executed and delivered by and on behalf of the Company and the Consultant. 

  

	(d)	This Agreement and all rights, liabilities and obligations hereunder shall be binding upon and inure to the benefit of each party’s successors but may not be assigned without
the prior written approval of the other party. 

  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date hereof. 
  

			
	FELLOWS ENERGY LTD.
		
	By:	 	 /s/ George S. Young

	
	CEOCAST, INC.
		
	By:	 	 /s/ Illegible

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