Document:

exhibit10-2letteragree.htm

    

    

    Exhibit
10.2    Letter Agreement with Suraj’s President regarding
loan advances

    

                        Surjit Singh
Gill

                                Rhema
House,

                             1032
Katkarwadi,

                            
 Yari Road, Versove

                           Andheri
(W) Mumbai,

                              India
400061

    

    
      	
               
      

            	
                                                                              April
      15, 2008.

            

    

    

    Suraj
Venture, Inc.

    C/O  2/32
Om Trimurti,

    Co-Operative
Housing Society,

    Eastern
Express Highway,

    Sion
Trombay Road, Chunabhatti Sion,

    Mumbai,
India, 40061

    

    Attention:  Mr.
Jos D’Souza, Secretary Treasurer

    

    Dear
Sirs:

     

    I am
writing to confirm my willingness, and agreement, to ensure that Suraj Ventures
Inc. (the “Company”) will have sufficient cash to meet its budgeted and expected
expenses over the coming twelve (12) months (estimated at approximately $5,000)
as detailed in the draft S-1 Registration Statement to be re-filed with the U.S.
Securities & Exchange Commission in the next few days.

    

    To date I
have advanced Suraj $6,248 (the “Prior Advances”) and I am prepared to advance
up to a further $17,500 to Suraj (the “New Advances”) .

    In
consideration of the sum of $1.00 and other good and valuable consideration (the
receipt and sufficiency of which is hereby acknowledged) I hereby agree to make
New Advances to Suraj, as and when the company may need such advances (to meet
its expenses over the coming twelve (12) months) which New Advances will not
exceed $17,500, at any time they may be required by Suraj from and after the
date hereof.

    Both the
Prior Advances and the New Advances will not bear interest and they have no
fixed terms of repayment.  However, the Prior Advances and the New
Advances will be payable upon demand made by me in writing to Suraj, sent to the
addressee at his address set out above.

    

    Please
confirm your agreement with the forgoing by countersigning this letter on behalf
of Suraj.

    

    Your
truly,

    

    /S/ SURJIT SINGH
GILL

         Surjit
Singh Gill

    

    Confirmed
and Agreed as of April 15, 2008.

     By:
Suraj Ventures, Inc.

    

    Per: /S/ JOS
D”SOUZA

           Jos D’Souza,
Secretary/Treasurer

    

     

     

    
      
         

      

      
        -1-ex10-1.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    October
31, 2007

    

    Frank
Ingriselli, President

    PACIFIC
ASIA PETROLEUM, INC.

    250 East
Hartsdale Avenue  

    Hartsdale,
NY  10530

    

    Dear
Frank

    

    We are pleased that Pacific Asia
Petroleum, Inc., a Delaware corporation (the “Company”) desires to engage
Chadbourn Securities, Inc. (“Chadbourn”) as its
nonexclusive placement agent and financial advisor to the Company (the “Advisory
Services”).  This engagement agreement (“Agreement”) shall supersede in
its entirety that certain Engagement Agreement entered into by and between
Chadbourn and Advanced Drilling Services, LLC, a subsidiary of the Company,
dated December 15, 2006.  We look forward to working with you and your
management team, and have set forth below the agreed upon terms of our
involvement.

    

    
      	
              1.

            	
              Scope
      of Engagement

            

    

     

    As
discussed, we will undertake certain services on behalf of the Company,
including:

    

    
      	
               
      

            	
              (a)

            	
              Identifying
      business opportunities for the Company within its
  strategy;

            

    

    

    
      	
               
      

            	
              (b)

            	
              Representing
      the Company within the finance and investment community and maintaining
      good relations and communications with shareholders introduced by
      Chadbourn to the Company; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              Identifying
      and assisting in the negotiation and placement of private equity capital
      (an “Equity
      Funding”) and debt/mezzanine and/or convertible debt instruments
      (“Debt Funding”)
      for the Company.

            

    

    

    
      	
              2.

            	
              Fees
      and Expenses.

            

    

     

    
      	
               
      

            	
              For
      our services hereunder, the Company will pay to Chadbourn the following
      fees as earned and collected by the
Company.

            

    

    

     

    
      	
               
      

            	
              (a)

            	
              Financing
      Advisory Services.  In the event that Chadbourn or its
      subsidiary(s) directly originates or provides an accepted Equity Funding
      or Debt Funding, the Company shall pay to Chadbourn from gross proceeds
      received by the Company at closing(s) the following, minus any amounts
      paid by the Company to mutually approved intermediaries (if
      any):

            

    

     

    
      	
               
      

            	
              (i)

            	
              An
      advisory fee equal to Five Percent (5%) of the total proceeds from
      Chadbourn-originated Equity Fundings received by the
    Company;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Warrants
      equal to Five Percent (5%) of the number of shares sold in the Equity
      Offering to Chadbourn-originated investors. Such warrants should have a
      seven year maturity, an exercise price equal to the offering price of each
      respective offering by the Company, and a cashless exercise
      provision;

            

    

    
      
        
          Chadbourn
Securities, Inc. • 10600 N. De Anza Blvd., Ste 250 • Cupertino,
CA  95014

          Phone:
(408) 873-0400 • Fax (408) 904-6085

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              An
      advisory fee equal to Two Percent (2%) of the total proceeds from
      Chadbourn-originated Debt Fundings received by the
  Company;

            

    

     

    For clarification, the Company shall
deduct from amounts payable to Chadbourn under this Section 2 any and all fees
payable to or any amounts paid by the Company to mutually approved
intermediaries as set forth on Exhibit
B attached hereto, as amended from time to time upon mutual written
consent by the parties hereto.

     

    
      	
               
      

            	
              (b)

            	
              Expense
      Reimbursement.  In addition, Chadbourn shall also receive
      the following expense reimbursement fees in connection with the Company’s
      Equity and/or Debt Fundings (this shall be the only expense reimbursement
      paid unless the parties otherwise agree in
  writing):

            

    

     

    
      	
               
      

            	
              (i)

            	
              An
      additional unallocated expense reimbursement fee equal to Two Percent (2%)
      of the total proceeds from all Equity Fundings received by the Company;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              An
      additional unallocated expense reimbursement fee equal to One Percent (1%)
      of the total proceeds from all Debt Fundings received by the
      Company.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Exclusions.  Notwithstanding
      anything to the contrary in this Agreement, Chadbourn and the Company
      agree and acknowledge that Chadbourn shall not be entitled to any fees or
      expenses hereunder in connection with, or related to, any Debt Funding
      proceeds received by the Company originated by, or received from, Bank of
      China Limited, Morgan Stanley, Jefferies International Ltd or The Goldman
      Sachs Group, Inc., or subsidiaries or affiliates
  thereof.

            

    

     

    3.      Use of
Information; Financing Matters.

     

    
      	
               
      

            	
              (a)

            	
              The
      Company agrees to furnish or cause to be furnished to Chadbourn all
      necessary or appropriate information for use in its engagement and hereby
      represents and warrants that any information relating to the Company or
      transaction that is furnished to Chadbourn by or on behalf of the Company
      will be true and correct in all material respects and not
      misleading.  The Company agrees that any information or advice
      rendered by Chadbourn or any of our representatives in connection with
      this engagement is for the confidential use of the Company only in its
      evaluation of a transaction and the Company will not, and will not permit
      any third party to, use it for any other purpose or disclose or otherwise
      refer to such advice or information, or to Chadbourn, in any manner
      without our prior written consent.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Chadbourn
      recognizes and confirms that the Company, in acting pursuant to this
      engagement, may be providing material non-public information to Chadbourn,
      and that Chadbourn assumes responsibility that no such material non-public
      information shall be communicated or divulged to any other party without
      the express written consent of Company and that any recipient of such
      material non-public information shall not trade in the securities of the
      Company until such information is either public or rendered
      moot.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Each
      of the Company and Chadbourn agrees to conduct any offering and sale of
      securities in any transaction in accordance with applicable federal and
      state securities laws, and neither the Company nor Chadbourn, nor any
      person acting on behalf of either of them, will offer or sell any
      securities in a transaction by any form of general solicitation, general
      advertising, or by any other means that would be deemed a public offering
      under applicable law.  Chadbourn has no obligation, express or
      implied, to purchase or underwrite any transaction or to itself provide
      any type of financing to the

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              Company
      or be a party to any transaction, or to solicit investors outside the
      United States.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Chadbourn
      further acknowledges that by the very nature of its relationship with the
      Company it may, from time to time, have knowledge of or access to material
      non-public information (as such term is defined by the Securities Exchange
      Act of 1934, as amended).  Chadbourn hereby agrees and covenants
      that: 1)  Chadbourn will not make any purchases or sales in the
      stock of the Company based on such
      information;  2)  Chadbourn will utilize its
      commercially reasonable efforts to safeguard and prevent the dissemination
      of such information to  third parties unless authorized in
      writing by the Company to do so as may be necessary in
      the  performance of its services  under this
      agreement; and 3) Chadbourn will not, in any way, utilize or otherwise
      include such information, in actual form or in substantive content, in its
      analysis for, preparation of or release of any Chadbourn literature or
      other communication(s) relating to the Company, including, but not limited
      to: research reports, press  releases, publications, letters to
      investors and telephone or other personal communication(s) with potential
      or current investors, including Chadbourn related
    investors.

            

    

     

    
      	
              4.

            	
              Certain
      Acknowledgements.

            

    

     

    The
Company acknowledges that Chadbourn has been retained by the Company, and that
the Company’s engagement of Chadbourn is as an independent
contractor.  Neither this engagement, nor the delivery of any advice
in connection with this engagement, is intended to confer rights upon any
persons not a party hereto (including security holders, employees or creditors
of the Company) as against Chadbourn or our affiliates or their respective
directors, officers, agents and employees.  Upon prior written consent
of the Company (which consent will not be unreasonably withheld), Chadbourn may,
at our own expense, place announcements or advertisements in financial
newspapers and journals describing its services hereunder.  The
Company acknowledges that Chadbourn, and affiliated of Chadbourn may be
significant shareholders or hold director positions with the Company, and
Chadbourn may make investments in or act as advisor to Companies that later
become strategic partners or customers of the Company.  Chadbourn
shall advise Company of such relationships prior to initiation of any
negotiations.  Chadbourn represents and warrants to the Company that
it is a registered broker/dealer any and all actions undertaken by Chadbourn
hereunder are in full compliance with any and all applicable state and federal
securities laws.

     

    
      	
              5.

            	
              Indemnity.

            

    

     

    
      	
               
      

            	
              Chadbourn
      and the Company have agreed to the indemnification set forth in Exhibit
      A, providing for the indemnification of Chadbourn by the Company
      and of the Company by Chadbourn in connection with Chadbourn’s engagement
      hereunder, the terms of which are incorporated into this agreement in
      their entirety.

            

    

     

    
      	
              6.

            	
              Term
      of Engagement.

            

    

     

    Chadbourn’s
engagement shall commence as of the date hereof and shall terminate (if not
terminated earlier) December 31, 2008   (the “Term”).  Either
party may terminate this agreement at any time, with or without cause by giving
not less than 30 days written notice to the other party; provided, however, that
no such termination will affect the matters set out in this section or sections
3, 4, 5, or 7, or in the separate letter agreement relating to
indemnification.  It is expressly agreed that following the expiration
or termination of this agreement, Chadbourn shall be entitled to receive any
fees as described above that have accrued prior to such expiration or
termination but are unpaid, as well as reimbursement for expenses as set forth
herein.

     

    It is
also expressly agreed that if during a period of 12 months following termination
of this agreement, a transaction with an investor, bondholder, bank, financing
entity, strategic partner,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    public
company, or other entity based upon services provided by Chadbourn hereunder is
consummated by the Company, or a successor entity to the Company, or a
shareholder, advisor or related party to the Company, or if a definitive
agreement that results in a transaction is entered into during such 12 month
period with any Chadbourn-originated investors, the Company will pay Chadbourn
the fees and expense reimbursements equal to the fees and expenses which would
have been payable to Chadbourn as if the transaction had occurred during the
term of this agreement.  In the event a Chadbourn Investor does invest
during the 12 months following the termination of this Agreement.

     

    
      	
              7.

            	
              Miscellaneous.

            

    

     

    
      	
               
      

            	
              This
      agreement is governed by the laws of the State of California, without
      regard to conflicts of law principles, and will be binding upon and inure
      to the benefit of the Company and Chadbourn and their respective
      successors and assigns.  Any controversy or claim arising out of
      or relating to this Agreement, or the alleged breach thereof, or relating
      to the Chadbourn’s activities or remuneration under this Agreement, shall
      be settled by binding arbitration in California, in accordance with the
      applicable rules of the Judicial Arbitration and Mediation Service (“JAMS”).  The
      parties will select an arbiter and shall divide the cost of arbitration
      between them, and each party shall pay its own attorney’s
      fees.  Any judgment on the award rendered by the arbitrator(s)
      shall be binding on the parties and may be entered in any court having
      jurisdiction as provided herein.  The provisions of Title 9 of
      Part 3 of the California Code of Civil Procedure, including section
      1283.05, and successor statutes, permitting expanded discovery proceedings
      shall be applicable to all disputes that are arbitrated under this
      paragraph.  This Agreement shall be governed by, construed and
      enforced in accordance with the laws of the State of
      California.  The parties agree that Santa Clara County,
      California will be the venue of any dispute and will have jurisdiction
      over all parties.  Neither this Agreement nor any duties or
      obligations under this Agreement may be assigned by Chadbourn without the
      prior written consent of the Company.  This Agreement may be
      executed in two or more counterparts, each of which shall be deemed to be
      an original, but all of which shall constitute one and the same
      agreement.

            

    

    

    We are
pleased to accept this engagement and look forward to working with you on this
matter.  Please confirm that the foregoing is in accordance with your
understanding of our agreement by signing and returning to us a copy of this
Agreement.

    

                Very
truly yours,

    

                CHADBOURN
SECURITIES, INC.

    

    

    

                 By:   /s/ Laird Q.
Cagan__

               Laird Q. Cagan, Managing
Director

    

    Accepted
and agreed to as of the date set forth above:

     

    PACIFIC
ASIA PETROLEUM, INC.

    
      	
               
      

            	
              a
      Delaware corporation

            

    

    

    

    By:      /s/ Frank C.
Ingriselli                                           

        Frank Ingriselli, President

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    The
Company agrees to indemnify and hold harmless Chadbourn Securities Inc. (“Chadbourn”), together with its
affiliates and their respective control persons, directors, officers, employees
and agents, (“Indemnified
Persons”), to the full extent lawful against any and all claims, losses,
damages, liabilities, costs and expenses as incurred (including all reasonable
fees and disbursements of counsel and all reasonable travel and other
out-of-pocket expenses reasonably incurred in connection with the investigation
of, preparation for and defense of any pending or threatened third-party claim,
action, proceeding or investigation and any litigation or other proceeding
arising therefrom, to which an Indemnified Person may become subject)
(collectively, “Damages”) arising out of or
related to any actual or proposed private placement or Chadbourn’s engagement
hereunder; provided, however, that there
shall be excluded from such indemnification any such portion of such Damages as
are found in a final judgment by a court of competent jurisdiction to have
resulted from the willful misconduct or gross negligence or breach of the
engagement agreement (of even date herewith and incorporated herein by
reference) on the part of the Indemnified Person, other than any action
undertaken at the request or with the consent of the Company.  The
foregoing indemnification obligation is in addition to, and not in limitation
of, any other rights Chadbourn may have, including but not limited to any right
of contribution.  In the event that the foregoing indemnity is
unavailable or insufficient to hold harmless an Indemnified Person, then the
Company shall contribute to amounts paid or payable by an Indemnified Person in
respect of such Damages in such proportion as appropriately reflects the
relative benefits received by it on the one hand and Chadbourn on the
other.  If applicable law does not permit allocation solely on the
basis of benefits, then such contribution shall be made in such proportion as
appropriately reflects both the relative benefits and relative fault of the
parties and other relevant equitable considerations.  The foregoing is
subject to the limitation that in no event shall Chadbourn’s aggregate
contributions in respect of Damages exceed the amount of fees actually received
by Chadbourn pursuant to this Agreement.  For purposes hereof,
relative benefits to the Company and Chadbourn of the private placement or other
similar transaction shall be deemed to be in the same proportion that the total
value paid or received or contemplated to be paid or received by the Company
and/or its security holders in connection with the private placement or other
similar transaction bears to the fees paid to Chadbourn pursuant to its
engagement in respect of such private placement.  Chadbourn
shall promptly notify the Company of any claim or threatened claim being
asserted against Chadbourn which would give rise to an indemnification
hereunder, and agrees that the Company shall have the right to participate in
the defense of any such claim and, to the extent that the Company shall wish, to
assume and control the defense thereof and shall pay as incurred the fees and
disbursements of such counsel related to such proceeding.  In any such
proceeding, Chadbourn shall have the right to retain its own counsel reasonably
satisfactory to the Company at the Company’s expense, it being understood that
the Company shall not, in connection with any one such claim or action or
separate but, substantially similar or related claims or actions in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the reasonable fees and expenses of more than one separate firm of
attorneys for all the Indemnified Persons. The Company will not enter into any
waiver, release or settlement with respect to any threatened or pending claim,
action, proceeding or investigation or settle any litigation arising therefrom
in respect of which indemnification hereunder may be sought (whether or not
Indemnified Persons are a formal party thereto) without the prior written
consent of Chadbourn (which consent shall not be unreasonably withheld or
delayed), unless such waiver, release or settlement includes an unconditional
release of Chadbourn from any and all liability arising out of such threatened
or pending claim, action, proceeding, investigation or
litigation.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    APPROVED
INTERMEDIARIES

    

    
      	
              NAME

            	
              COMMISSION
      OR FEE

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