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Exhibit 10.32  

 
 

MR JEFFREY T. OBOURN    
    
    EMPLOYMENT AND CONFIDENTIALITY AGREEMENT    
    

        This Employment Agreement (this "Agreement") is made between TIPPERARY CORPORATION, a Texas Corporation, with its principal place of business at 633 Seventeenth
Street, Suite 1550, Denver, Colorado 80202 (the "Company") and Jeffrey T. Obourn, residing at 5585 Cherryville Way, Greenwood Village, Colorado 80121 ("Executive"). 

        WHEREAS, the Executive and the Company desire and agree to formalize an employment relationship between them by means of this Agreement. 

        NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, it is mutually covenanted and agreed by and between the parties as follows: 

        1.     EMPLOYMENT.
The Company hereby employs the Executive and the Executive hereby accepts employment in the position of Senior Vice President. 

        2.     BASIC
COMPENSATION AND BENEFITS. For the services rendered by the Executive to the Company, the Company shall pay the Executive a salary at the rate of $150,000 per year
to be paid to the Executive in equal installments in accordance with the normal payroll policies of the Company (the "Basic Compensation") or as otherwise shall be agreed upon from time to time by the
parties hereto. In addition, the Executive shall be entitled to any benefits and permitted to participate in any benefit plans, including without limitation any health care plans and paid vacation and
sick leave, that the Company provides to its executives generally. 

        3.     BONUSES.
In addition to the Basic Compensation, and at the recommendation of the Compensation Committee and upon approval by the Board of Directors of the Company, the
Executive may also receive additional compensation in the form of bonuses ("Bonuses") at times and in amounts to be determined by the Company's Chief Executive Officer based upon corporate and
individual performance. 

        4.     AUTOMOBILE.
The Company shall provide the Executive with the use of an automobile of the Executive's choice, provided that the monthly lease payment shall not exceed
$700. The Company shall pay all reasonable expenses of operation of the automobile, including insurance and maintenance and repairs. 

        5.     CLUB
MEMBERSHIP. The Executive will be entitled to join a Hunting/Fishing Club suitable for business entertainment from time to time. The Company will pay the Club
membership fee, annual dues and all appropriate business entertainment expenses up to $10,000 per year. 

        6.     DENVER
OFFICE. The Executive shall office in Denver, Colorado. 

        7.     TERM.
This Agreement shall commence on the date hereof, and shall remain in effect for a period of three (3) years (the "Employment Term"), unless employment is
terminated in accordance with Section 8 or 9 hereunder. 

TERMINATION WITHOUT COMPENSATION. 

        8.1   Total Disability. If the Executive become "totally disabled", as defined below, the Company may terminate this Agreement
by notice to the Executive, and as of the termination date, the Company shall have no further liability or obligation to the Executive hereunder except as follows: the Executive shall receive any
unpaid Basic Compensation and Bonuses, if any, that have accrued through the date of termination. For the purposes hereof, the Executive shall be deemed to be "totally disabled" if the Executive is
considered totally disabled according to the definition under any group disability plan maintained by the Company and in effect at the time of 

 

termination,
or in the absence of any plan, under applicable Social Security regulations. In the event of any dispute under the Section 7.1, the Executive shall submit to a physical examination
by a licensed physician mutually satisfactory to the Company and the Executive, the cost of such examination to be paid by the Company, and the determination of such physician shall be determinative. 

        8.2   Death. If the Executive dies during employment with the Company, this Agreement shall terminate on the date of death, and
thereafter the Company shall not have any further liability or obligation to the Executive, his executors, administrators, heirs, assigns or any other person claiming under or through the Executive's
estate except that the Executive's estate shall receive any unpaid Basic Compensation and Bonuses, if any, that have accrued through the date of death. 

        8.3   Cause. The Company may terminate the Employment Term for "cause", as defined herein below, by giving the Executive
15 days notice of the termination date, and as of the termination date, the Company shall have no further liability or obligation to the Executive hereunder except the Executive shall receive
any unpaid Basic Compensation and Bonuses, if any, that have accrued through the date of termination, less any liabilities that the Executive may have to the Company. For purposes of the Agreement,
"cause", shall mean the Executive's (i) failure to observe or perform any of the material terms or provisions of this Agreement, (ii) failure to comply fully with the lawful directives
of the Chief Executive Officer, (iii) disclosure or use of any confidential information of the Company, (iv) participation directly or indirectly or providing information which results
in competition with the Company, (v) deception, (vi) willful misconduct, (vii) material neglect of the Company's business, (viii) conviction of a felony or other crime
involving moral turpitude, (ix) misappropriation of funds, or (x) habitual insobriety. 

        8.     TERMINATION
WITH COMPENSATION. 

        The
Company shall have the right to terminate the Agreement without cause any time by giving the Executive one year's notice of the termination date. Under such circumstances, the
Company shall pay any unpaid Basic Compensation and Bonuses, if any, that have accrued through the date of termination, and shall continue to pay to the Executive the Basic Compensation which accrues
for one year following the termination date (the "Termination Compensation"), and the Company shall have no other liability or obligation to the Executive. The Executive shall not be entitled to any
Termination Compensation unless the Executive executes and delivers to the Company a release, in a form satisfactory to the Company, whereby the Executive releases the Company from any obligations and
liabilities of any type with exception to the Termination Compensation as provided herein. The Termination Compensation shall be provided in consideration for the above-specified release. 

        9.     DUTIES
AND EXTENT OF SERVICES. The Executive shall, on a full time basis, devote his entire business efforts to the Company, as Senior Vice President, and shall perform
in a timely and professional manner acceptable to the Chief Executive Officer, those tasks assigned by the Chief Executive Officer in conjunction with such position; provided, however, that the
Executive may engage in personal investment activities so long as such activities do not interfere with the performance of his duties to the Company herein. Any investment in oil and gas properties
other than those owned prior to employment with the Company must be pre-approved by the Chief Executive Officer. 

        10.   OWNERSHIP.
The Executive agrees that all developments made and developments and works created by the Executive or under the Executive's direction in connection with the
Company's assignments are works for hire and shall be the sole and complete property of the Company. 

        11.   NONDISCLOSURE
OF CONFIDENTIAL INFORMATION. 

        12.1 Nondisclosure. During the term of employment and forever thereafter, the Executive agrees to keep confidential all
information provided by the Company, its executives, directors, agents, or any other person or entity, excepting only such information as is already known to the 

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public,
and including any such information and material relating to any customer, vendor, licensor, licensee, or other party transacting business with the Company, and not to release, use, or disclose
the same except with the prior written permission of the Company. 

The
Executive further agrees to consider all information or products with which the Executive becomes familiar as an Executive of the Company to be confidential and the exclusive property of the
Company which will not be converted or disclosed to anyone for any purpose whatsoever. All records, files, memorandums, reports, price lists, customer lists, maps, plans, sketches, documents and the
like, relating to the business of the Company, which the Executive shall use or prepare or come into contact with, shall remain the sole property of the Company. A breach of this Section 12.1
shall give rise to "cause" under which the Executive may be terminated under Section 8.3. 

        12.2 Possession. The Executive agrees that, upon request by the Company, and in any event upon termination of employment, the
Executive shall turn over to the Company all documents, papers, or other material in his possession or under his control which may contain or be derived from confidential information, together with
all documents, notes, or other work product which is connected with or derived from the Executive's services to the Company whether or not such material is at the date hereof in the Executive's
possession. The Executive agrees that the Executive shall have no proprietary interest in any work product developed or used by the Executive and arising out of his employment by the Company. A breach
of this section 12.2 shall give rise to "cause" under which the Executive may be terminated under Section 8.3. 

        12.3 Survival of Covenant. The undertakings of the Section 12 of this Agreement shall survive the termination or
cancellation of the Agreement or of the Executive's employment. 

        12.   COVENANT
NOT TO COMPETE. For a period of 12 months from the date of any termination of the Executive's employment with the Company, the Executive shall not,
directly or indirectly, accept employment with or render any services to any business engaged in the exploration for or production of oil and gas in Queensland Australia, form an association which is
directly competitive with the Company, or form an association with or employ or offer to employ in a business directly competitive with the Company, anyone who is or has been a director, officer,
shareholder, employee or Executive of the Company. 

        The
Executive acknowledges that the restrictions imposed by this Agreement are fully understood by him and will not preclude the Executive from becoming gainfully employed following a
termination of employment with the Company. 

        13.   REMEDIES.
The Executive agrees that this Agreement is intended to protect and preserve legitimate business interests of the Company. It is further agreed that any breach
of this Agreement may render irreparable harm to the Company. In the event of a breach by the Executive, the Company shall have available to it all remedies provided by law, including, but not limited
to, permanent injunctive relief to restrain the Executive from violating this Agreement. The Company shall also be entitled to commence legal action against the Executive for any breach of any
confidentiality agreement and/or confidentiality programs in effect at any time between the Executive and the Company. Notwithstanding any legal remedies available to the Company as a result of a
breach of this Agreement, in the event of a breach by the Executive, the Company shall immediately be entitled to withhold and avoid payment of any sums of money or other benefits than due or that
become due under this or any other Agreement between the Executive and the Company. 

        14.   GENERAL
PROVISIONS. 

        15.1 No Waiver. The failure of the Company to terminate this Agreement for the breach of any condition or covenant herein by
the Executive shall not affect the Company's right to terminate for subsequent breaches of the same or other conditions or covenants. The failure of either party to 

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enforce
at any time or for any period of time any of the provisions of this Agreement shall not be construed as a waiver of such provisions or of the right of the party thereafter to enforce each and
every such provision. 

        15.2 Notices. All notices and other required communications to the parties shall be in writing and shall be addressed
respectively as follows, unless and until directed otherwise in writing:- 

If to Company  

Mr D L Bradshaw

Chairman, CEO and President

Tipperary Corporation

633 Seventeenth Street Suite 1550

Denver, Colorado 80202 

Tel:
(303) 293-9379

Fax: (303) 292-3428 

If to Executive  

Jeffrey T. Obourn

5585 Cherryville Way

Greenwood Village, Colorado 80121 

Tel:
(303) 806-0377

Fax: (303) 979-6578 

        15.3 Entire Contract and Facsimile Execution. This Agreement shall constitute the entire contract between the parties and
supercedes all existing agreements between them, whether oral or written, with respect to the subject matter hereof. No change, modification or amendment of this Agreement shall be of any effect
unless in writing signed by the Executive and by the Chief Executive Officer of the Company. 

        15.4 Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be
governed by, the laws of the State of Colorado without regard to principles of conflicts of laws. 

        15.5 Severability. Should any provision of this Agreement not be enforceable in any jurisdiction, the remainder of the
Agreement shall not be affected thereby. 

        15.6 Captions. The captions in this Agreement are for convenience only and shall not affect the construction or
interpretation of any term or provision hereof. 

        15.7 Attorney Fees. In the event of a dispute between the parties that results in litigation or arbitration regarding this
Agreement, the prevailing party, as determined by the finder of fact, shall be entitled to an award of reasonable attorney fees. 

        15.8 Further Assurances. Without further consideration, each party agrees to take such further acts and execute such further
documents as are necessary or appropriate to effectuate the purpose and intent of this Agreement. 

        15.9 Duration. This Agreement shall continue to bind the parties for as long as any obligations remain under the terms of
this contract. 

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        IN WITNESS WHEREOF, the parties hereto have signed this Agreement on this 17th day of January, 2002. 

	

 	
 	
EXECUTIVE:
	
 	
 	

/s/  JEFFREY T. OBOURN      

	

 	
 	
TIPPERARY CORPORATION
	
 	
 	

By:	
 	

/s/  DAVID L. BRADSHAW      
David L. Bradshaw

Chief Executive Officer

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AMENDMENT TO

EMPLOYMENT AGREEMENT

OF JEFFREY T. OBOURN  

        This Amendment to Employment Agreement (this "Amendment") is made this 6th day of January 2005 between Tipperary Corporation, a Texas Corporation (the
"Company"), and Jeffrey T. Obourn ("Executive"), with respect to that certain Employment and Confidentiality Agreement, dated January 17, 2002 (the "Employment Agreement"), between the parties
to this Amendment. 

        Capitalized
terms not otherwise defined herein shall have the meanings set forth in the Employment Agreement. 

        WHEREAS, the Executive and the Company desire to extend the term of the Employment Agreement by one year; 

        NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained, it is mutually covenanted and agreed by the
parties as follows: 

        15.   Extension Of Term. The period of three years during which the Employment Agreement was to remain in effect,
commencing on the date thereof, as set forth in Section 7 therein, is hereby extended by one year, such that the Employment Agreement will terminate on January 16, 2006. 

        16.   Provisions of Employment Agreement Otherwise Remain in Effect. Except for the amendment set forth in Section 1
hereof, the provisions of the Employment Agreement shall remain in full force and effect, and the parties hereto agree to continue to observe their respective obligations as set forth therein during
said additional one-year period. 

        IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written. 

	
EXECUTIVE:	
 	

THE COMPANY:
	 	 	 	 	TIPPERARY CORPORATION
	

/s/  JEFFREY T. OBOURN      
Jeffrey T. Obourn	
 	

By:	
 	

/s/  DAVID L. BRADSHAW      
David L. Bradshaw, President, Chief Executive Officer and Chairman of the Board

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Exhibit 10.33    
    

[HOULIHAN
LOKEY HOWARD & ZUKIN LETTERHEAD] 

Personal
and Confidential 

February 22,
2005 

David
L. Bradshaw

President and Chief Executive Officer

Tipperary Corporation

633 Seventeenth Street, Suite 1550

Denver, CO 80202 

Dear
Mr. Bradshaw: 

        This
letter confirms the understanding and agreement (the "Agreement") between Tipperary Corporation (together with its subsidiaries and affiliates, the "Company") and Houlihan Lokey
Howard & Zukin Capital, Inc. ("Houlihan Lokey") as follows: 

        1.     Engagement; Services; Term. We understand that Slough Estates USA Inc. ("Slough") owns (i) approximately
22.3 million (or approximately 52%) of the publicly traded common stock of the Company, (ii) approximately 10% of the common stock in Tipperary Oil & Gas (Australia)
Pty Ltd, a subsidiary of the Company, and (iii) certain indebtedness (approximately $17 million) running from the Company to Slough (together, the "Slough Interests"). We further
understand that Slough has announced its intention to divest the Slough Interests (the "Slough Divestiture"). It is our understanding that the members of the Company's Board of Directors who are not
affiliated with Slough are considering certain matters relating to the Slough Divestiture, and in connection therewith the Company hereby retains Houlihan Lokey as its exclusive financial advisor to
provide financial advisory and investment banking services. 

        Houlihan
Lokey will advise the Company on an exclusive basis (and act as agent, if applicable) with respect to one or more transactions or potential transactions relating to the Slough
Divestiture, including: (i) any proposals for a financing for the Company or any of its subsidiaries, whether in the form of subordinated or senior debt, equity or equity equivalents, in order
to facilitate the Company purchasing the Sough Equity Interests (a "Financing Transaction"); or (ii) any proposals to acquire all, or a substantial part, of the business, assets or equity
interests of the Company (including the Slough Interests and/or the remaining equity interests in the Company) and/or its subsidiaries and affiliates in one or more transactions, whether by merger,
consolidation, tender or exchange offer, purchase, acquisition, business combination, or otherwise (a "Sale Transaction"); a Financing Transaction and a Sale Transaction are each referred to herein as
a "Transaction" and are collectively referred to herein as the "Transactions". 

        Depending
upon the nature of the Transaction, Houlihan Lokey's services will consist of, if appropriate or if requested by the Company, (a) soliciting, coordinating and evaluating
indications of interest and proposals regarding a Transaction; (b) advising the Company as to the structure of the Transaction; (c) negotiating the financial aspects, and facilitating
the consummation, of any Transaction; and (d) providing such other investment banking and related financial advisory services reasonably necessary to accomplish the foregoing, including, if
requested, rendering an opinion as to the fairness of a Transaction to the Company or its shareholders (as the case may be). 

        With
respect to a Financing, if requested by the Company, Houlihan Lokey agrees to use its best efforts, consistent with its business judgment, to effect the Financing as soon as
practicable, on terms approved by the Company. The Company acknowledges that consummation of the Financing is subject, among other factors, to acceptable documentation, market conditions, and
satisfaction of the conditions set forth in one or more agreements to be entered into with any financier, lender, investor or other purchaser of securities. It is expressly understood that this
engagement does not constitute any 

 

commitment,
express or implied, on the part of Houlihan Lokey to provide, and does not ensure the successful placement of, any portion of the Financing. 

        The
Company agrees to promptly inform Houlihan Lokey in the event that the Company or its management initiate any discussions regarding a Transaction during the term of this Agreement.
In the event the Company, its controlling equity holders (other than Slough) or affiliates, or its management receive any inquiry regarding a Transaction, Houlihan Lokey will be promptly informed of
such inquiry so that it can evaluate such party and its interest in a Transaction, and assist the Company in any resulting negotiations. 

        This
Agreement shall have an initial term of three (3) months, and thereafter shall be automatically extended on a month-to-month basis until either party
provides thirty days prior written notice of termination to the other party; provided, however, that no expiration or termination of this
Agreement shall affect (a) the Company's indemnification, reimbursement, contribution and other obligations as set forth on Schedule A attached hereto, (b) the confidentiality
provisions set forth herein, (c) Sections 5-8 hereof, and (d) Houlihan Lokey's right to receive, and the Company's obligation to pay, any and all fees and expenses due, and
whether or not any Transaction shall be consummated prior to or subsequent to the effective date of expiration or termination, all as more fully set forth in this Agreement. 

        2.     Fees and Expenses. 

        (a)   Retainer Fees. The Company shall pay Houlihan Lokey non-refundable monthly retainer fees (the "Monthly
Retainer Fees") of (i) $100,000 upon the mutual execution of this Agreement, (ii) $100,000 on same calendar day of the following month; and then (iii) $50,000 per month on the
same calendar day of each following month thereafter. Monthly retainer fees are payable in advance without notice or invoice. 

        (b)   Financing Transaction. In addition to the foregoing monthly retainer fees, upon the consummation of a Financing
Transaction, the Company shall pay Houlihan Lokey a cash fee (the "Financing Fee") equal to 4.0% of the aggregate principal amount of all senior notes, bank debt, unsecured, non-senior and
subordinated debt securities, and equity and equity equivalents (including convertible securities and preferred stock), raised, placed or committed. For greater certainty, the exercise of any warrants
provided to any financier, lender, investor or other purchaser of securities as part of a Financing Transaction shall, upon the exercise thereof, be considered equity for purposes of calculating
Houlihan Lokey's Financing Fee. Any non-refundable Monthly Retainer Fees actually received by Houlihan Lokey will be fully credited against any Financing Fee payable to Houlihan Lokey. 

        (c)   Sale Transaction. In addition to the foregoing monthly retainer fees, upon the consummation of a Sale Transaction, the
Company shall pay Houlihan Lokey a cash fee (the "M&A Fee") equal to 4.0% of the Transaction Value of such Sale Transaction. 

        For
the purpose of calculating the M&A Fee, the Transaction Value shall be the total proceeds and other consideration paid or received, or to be paid or received by the Company's
shareholders other than Slough in connection with such Sale Transaction (which consideration shall be deemed to include amounts in escrow), including, without limitation, cash, notes, securities, and
other property received or to be received by the Company, deferred non-contingent payments (such as installment payments); amounts payable under consulting agreements, above-market
employment contracts, non-compete agreements, and employee benefit plans or similar arrangements (collectively, "Non-Slough Consideration"). The Transaction Value shall be
calculated as if 100% of the equity interests of the Company other than the Slough Interests had been sold by dividing the Total Consideration by the percentage of such ownership that is sold. If any
of the Company's assets are retained, sold or otherwise transferred to another party prior to the consummation of the Sale 

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Transaction,
the Transaction Value will be increased to reflect the fair market value of any such assets. Furthermore, the Transaction Value shall also be increased to the extent that (x) the
value of any current assets (including cash and marketable securities) which are not sold in connection with or in anticipation of a Transaction is greater than (y) the value of any
non-interest bearing current liabilities that are not assumed by such buyer. 

        For
the purpose of calculating the consideration received or receivable in connection with a Sale Transaction, any securities (other than a promissory note) will be valued at the time of
the closing of the Transaction (without regard to any restrictions on transferability) as follows: (i) if such securities are traded on a stock exchange, the securities will be valued at the
average last sale or closing price for the ten trading days immediately prior to the closing of the Transaction; (ii) if such securities are traded primarily in
over-the-counter transactions, the securities will be valued at the mean of the closing bid and asked quotations similarly averaged over a ten trading day period immediately
prior to the closing of the Transaction; and (iii) if such securities have not been traded prior to the closing of the Transaction, Houlihan Lokey will prepare a valuation of the securities,
and Houlihan Lokey and the Company will negotiate in good faith to agree on a fair valuation thereof for the purposes of calculating the Liquidity Fee. The value of any purchase money or other
promissory notes, installment sales contracts or other deferred non-contingent consideration shall be deemed to be the face amount thereof, and shall be included as part of Total
Consideration for the purpose of determining the Liquidity Fee due to Houlihan Lokey upon the consummation of the Transaction. In the event the Transaction Value includes any Contingent Payments, the
Company and Houlihan Lokey will negotiate in good faith to agree on that portion of the Liquidity Fee to be paid to Houlihan Lokey as of the consummation of the Transaction in consideration thereof.
If the parties cannot reach such an agreement, an additional Liquidity Fee shall be paid to Houlihan Lokey in the same proportions and at the same times as the Contingent Payments are paid or
received. 

        Any
Financing Fee and any M&A Fee are each referred to herein as a "Transaction Fee" and are collectively referred to herein as "Transaction Fees". 

        (d)   Payment of Fees. If this Agreement expires or is terminated for any reason, and the Company consummates, or enters into
an agreement in principle to engage in (and which subsequently closes at any time), any Transaction within twelve (12) months after such expiration or termination date, Houlihan Lokey shall be
entitled to receive its Transaction Fee upon the consummation of such Transaction as if no such expiration or termination had occurred. 

        For
the avoidance of doubt, if two or more types of Transactions occur simultaneously or separately, or in connection with or unrelated to one another, the Company shall pay Houlihan
Lokey the Transaction Fee for each such Transaction in addition to, and not in lieu of, each other. 

        If,
within 18 months after the consummation of any Financing Transaction, the Company consummates a Sale Transaction, Houlihan Lokey's Transaction Fee shall be calculated with
respect to all such Transactions, subject to a credit for any Transaction Fees previously paid pursuant to this Section 2. 

        Certain
Transaction Fees shall be paid to Houlihan Lokey by withholding such fee from the proceeds from the issuance of any debt or equity securities (in the case of a Financing
Transaction) or from the sale proceeds (in the case of a Sale Transaction) by instructing the purchasers of the securities or the payor(s) of the Transaction Value, as the case may be, to wire
transfer the Transaction Fee directly to Houlihan Lokey upon the consummation of the Transaction. 

        (e)   Expenses. Additionally, and regardless of whether any Transaction is consummated, Houlihan Lokey shall be entitled to
reimbursement of its reasonable out-of-pocket expenses incurred from time to time during the term hereof in connection with the services to be provided under this Agreement,
promptly after invoicing the Company therefore. Houlihan Lokey bills its clients for its reasonable 

3

 

out-of-pocket
expenses for (i) travel-related expenses, without regard to volume-based or similar credits or rebates Houlihan Lokey may receive from travel agents and
airlines on a periodic basis, and (ii) research, database and similar information charges paid to third party vendors, and postage, telecommunication and duplicating expenses, to perform
client-related services that are not capable of being identified with, or charged to, a particular client or assignment in a reasonably practicable manner, based upon a uniformly applied monthly
assessment or percentage of the fees due to Houlihan Lokey. In the event that Houlihan Lokey anticipates that its out-of-pocket expenses will exceed $5,000 in any given month,
Houlihan Lokey agrees to promptly inform the Company. 

        In
addition, Houlihan Lokey shall be reimbursed for the reasonable fees and expenses of its outside legal counsel in connection with this Agreement and the matters contemplated hereby. 

        3.     Information. The Company will furnish Houlihan Lokey with such information regarding the business and financial condition
of the Company as is reasonably requested, all of which will be, to the Company's best knowledge, accurate and complete at the time furnished. The Company further represents and warrants that any
financial projections delivered to Houlihan Lokey have been or will be prepared in good faith based upon assumptions which, in light of the circumstances under which they are made, are reasonable and
that to the extent any projections include any estimates of value, such amounts have been estimated as reliably as practical under the circumstances. The Company will promptly notify Houlihan Lokey if
it learns of any material misstatement in, or material omission from, any information previously delivered to Houlihan Lokey, or any offering memorandum, private placement memorandum or other offering
materials transmitted to any potential participant in a Transaction. Houlihan Lokey may rely, without independent verification, on the accuracy and completeness of all information furnished by or on
behalf of the Company or any other potential party to any Transaction. The Company understands that Houlihan Lokey will not be responsible for independently verifying the accuracy or completeness of
such information, and shall not be liable for any inaccuracies or omissions therein. The foregoing shall remain operative and in full force and effect regardless of any investigation made by or on
behalf of Houlihan Lokey or any Indemnified Party (as defined elsewhere in this Agreement) or any person controlling any of them. Except as may be required by law or court process, any opinions or
advice (whether written or oral) rendered by Houlihan Lokey pursuant to this Agreement are intended solely for the benefit and use of the Company, and may not be publicly disclosed in any manner or
made available to third parties (other than the Company's management, directors, advisors, accountants and attorneys) without the prior written consent of Houlihan Lokey, which consent shall not be
unreasonably withheld. If Houlihan Lokey resigns or terminates this Agreement prior to the dissemination of any offering materials or any other documents or information prepared in connection with a
Transaction, no reference shall be made therein to Houlihan Lokey. 

        4.     Indemnification; Standard of Care. The Company agrees to provide indemnification, contribution and reimbursement to
Houlihan Lokey and certain other parties in accordance with, and the Company further agrees to be bound by the other provisions set forth in, Schedule A attached hereto. 

        5.     Other Services. If the Company so requests, Houlihan Lokey (or its affiliate, Houlihan Lokey Howard & Zukin
Financial Advisors, Inc. ("HLHZFA")) will render a written opinion ("Opinion") regarding the fairness, from a financial point of view, to the Company or to the public stockholders of the
Company, as the case may be, of the Transaction or the consideration to be received by it in connection with the Transaction. For the avoidance of doubt, HLHZFA shall be an Indemnified Party under
Schedule A of the Agreement. Neither Houlihan Lokey's or HLHZFA's verbal conclusions nor the Opinion will be used for any purpose other than in connection with the Transaction. Houlihan Lokey
(or HLHZFA) shall be responsible only for the conclusions or opinions set forth in its written Opinion, subject to the limitations set forth therein and in Section 3 of this Agreement. 

4

 

        Any
submission, distribution or filing of the Opinion, in whole or in part, to or with any third party or governmental agency, or any reference to Houlihan Lokey, the Company's
engagement of Houlihan Lokey, the services provided by Houlihan Lokey or the Opinion in any public filing(s), materials distributed to the security holders of the Company, financial statements, press
releases or any other disclosure, will be subject, in each instance, to Houlihan Lokey's prior review and written approval. Notwithstanding the preceding sentence, the Company may (a) deliver
information copies of the Opinion to its legal counsel and other professional advisors that are participating in the Transaction (provided that such advisors agree to keep such information
confidential), and (b) produce an information copy of the Opinion and any other materials in its possession in response to any subpoena, court order, or similar legal demand, provided that
prompt notice thereof shall be given to Houlihan Lokey. In addition, Houlihan Lokey acknowledges that the text of the Opinion and a description thereof may be included in certain filing(s) required to
be made by the Company with the Securities and Exchange Commission in connection with the Transaction, and in materials required to be delivered to the Company's security holders that are a part of
such filing(s), provided that (i) if the Opinion is included in such filing(s) or materials, the Opinion will be reproduced therein only in its entirety, and (ii) the content and context
of any such inclusion or description (including, without limitation, any reference to Houlihan Lokey, the Company's engagement of Houlihan Lokey, the services provided by Houlihan Lokey or the
Opinion) shall be subject to Houlihan Lokey's prior review and written approval (and, if applicable, formal written consent). 

        The
Company shall pay Houlihan Lokey, in addition to the other fees set forth in this Agreement, an additional fee upon the delivery of the Opinion equal to $500,000, payable upon
Houlihan Lokey's issuance of the Opinion. Moreover, in the event that any of the Company's officers or directors (other than those affiliated with Slough) participate in the Transaction (by virtue of
direct investment of cash or through the issuance of securities of the purchaser of the Slough Interests) the Company shall pay Houlihan Lokey an incremental $200,000 (or a total of $700,000) upon its
issuance of the Opinion. 

        To
the extent Houlihan Lokey is requested by the Company to perform any other financial advisory or investment banking services which are not within the scope of this assignment, such
fees shall be mutually agreed upon by Houlihan Lokey and the Company in writing, in advance, depending on the level and type of services required, and shall be in addition to the fees and expenses
described hereinabove. Except as set forth in the preceding sentence, if Houlihan Lokey is required to render services directly or indirectly relating to the subject matter of this Agreement
(including, but not limited to, producing documents, answering interrogatories, attending depositions, testifying at trial, and whether by subpoena, court process or order, or otherwise), the Company
shall pay Houlihan Lokey's then current hourly rates for the persons involved for the time expended in rendering such services, including, but not limited to, time for meetings, conferences,
preparation and travel, and all related reasonable out-of-pocket costs and expenses (including without limitation the reasonable legal fees and expenses of Houlihan Lokey's
legal counsel incurred in connection therewith). 

        6.     Attorneys' Fees. If any party to this Agreement brings an action directly or indirectly based upon this Agreement or the
matters contemplated hereby against another party, the prevailing party shall be entitled to recover, in addition to any other appropriate amounts, its reasonable costs and expenses in connection with
such proceeding, including, but not limited to, reasonable attorneys' fees and court costs. 

        7.     Credit. Upon the consummation of any Transaction, Houlihan Lokey may, at its own expense, place announcements in financial
and other newspapers and periodicals (such as a customary "tombstone" advertisement) describing its services in connection therewith. Furthermore, the Company agrees that in any press release
announcing any Transaction, the Company will include in such press release a reference to Houlihan Lokey's role as financial advisor to the Company with respect to such Transaction. 

5

 

        8.     Miscellaneous. This Agreement shall be binding upon the parties hereto and their respective successors, heirs and
permitted assigns. Nothing in this Agreement, express or implied, is intended to confer or does confer on any person or entity, other than the parties hereto and their respective successors, heirs and
permitted assigns and, to the extent expressly set forth herein, the Indemnified Parties, any rights or remedies under or by reason of this Agreement or as a result of the services to be rendered by
Houlihan Lokey hereunder. 

        The
parties understand that Houlihan Lokey is being engaged hereunder to provide the services described above solely to the Company, and that Houlihan Lokey is not being retained to act
as an agent or fiduciary of the Company, the owners of the Company or any other persons in connection with this engagement. 

        The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect pursuant to the terms hereof. 

        The
Company agrees that it will be solely responsible for ensuring that any Transaction complies with applicable law. 

        This
Agreement incorporates the entire understanding of the parties regarding the subject matter hereof, and supersedes all previous agreements or understandings regarding the same,
whether written or oral. 

        This
Agreement may not be amended, and no portion hereof may be waived, except in a writing duly executed by the parties. 

        This
Agreement has been reviewed by the signatories hereto and their counsel. There shall be no construction of any provision against Houlihan Lokey because this Agreement was drafted by
Houlihan Lokey, and the parties waive any statute or rule of law to such effect. 

        THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO SUCH STATE'S RULES CONCERNING CONFLICTS OF LAWS. EACH OF HOULIHAN LOKEY
AND THE COMPANY (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS EQUITY HOLDERS) IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) RELATED TO OR ARISING OUT OF THE ENGAGEMENT OF HOULIHAN LOKEY PURSUANT TO, OR THE PERFORMANCE BY HOULIHAN LOKEY OF THE SERVICES
CONTEMPLATED BY, THIS AGREEMENT. 

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        Please
confirm that the foregoing terms are in accordance with your understanding by signing and returning the enclosed copy of this Agreement, together with payment in the amount of
$100,000. 

	

Sincerely,	
 	

 
	
HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL, INC.	
 	

 
	

By:	
 	

/s/  WILLIAM H. HARDIE III      
 William H. Hardie III

Managing Director	
 	

 
	

Accepted and agreed to as of                        :	
 	

 
	
TIPPERARY CORPORATION	
 	

 
	

By:	
 	

/s/  DAVID L. BRADSHAW      
 David L. Bradshaw

President and Chief Executive Officer	
 	

 

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SCHEDULE A  

        This Schedule is attached to, and constitutes a material part of, that certain agreement dated February 22, 2005, between the Company and Houlihan Lokey
(the "Agreement"). Unless otherwise noted, all capitalized terms used herein shall have the meaning set forth in the Agreement. 

        As
a material part of the consideration for the agreement of Houlihan Lokey to furnish its services to the Company under the Agreement, the Company agrees to indemnify and hold harmless
Houlihan Lokey and its affiliates, and their respective past, present and future directors, officers, shareholders, employees, agents, representatives, advisors and controlling persons within the
meaning of either Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended (collectively, the "Indemnified Parties"), to the
fullest extent lawful, from and against any and all losses, claims, damages or liabilities (or actions in respect thereof), joint or several, arising out of or related to the Agreement, the Opinion,
any actions taken or omitted to be taken by an Indemnified Party (including acts or omissions constituting ordinary negligence) in connection with the Agreement, or any Transaction or proposed
Transaction contemplated thereby. In addition, the Company agrees to reimburse the Indemnified Parties for any legal or other expenses reasonably incurred by them in respect thereof at the time such
expenses are incurred; provided, however, the Company shall not be liable under the foregoing indemnity and reimbursement agreement for any loss, claim,
damage or liability which is finally judicially determined by a court of competent jurisdiction to have resulted primarily from the willful misconduct or gross negligence of such Indemnified Party. 

        If
for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient fully to indemnify any such party or to hold it harmless, the Company shall
contribute to the amount paid or payable by the Indemnified Party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative
benefits received (or anticipated to be received) by the Company, on the one hand, and Houlihan Lokey, on the other hand, in connection with the actual or potential Transaction. If, however, the
allocation provided by the immediately preceding sentence is not permitted by applicable law or otherwise, then the Company shall contribute to such amount paid or payable by any Indemnified Party in
such proportion as is appropriate to reflect not only such relative benefits, but also the relative fault of the Company, on the one hand, and
Houlihan Lokey, on the other hand, in connection therewith, as well as any other relevant equitable considerations. Notwithstanding the foregoing, the aggregate contribution of all Indemnified Parties
to any such losses, claims, damages, liabilities and expenses shall not exceed the amount of fees actually received by Houlihan Lokey pursuant to the Agreement. 

        The
Company agrees that it shall not effect any settlement or release from liability in connection with any matter for which an Indemnified Party would be entitled to indemnification
from the Company, unless such settlement or release contains a release of the Indemnified Parties reasonably satisfactory in form and substance to Houlihan Lokey. The Company shall not be required to
indemnify any Indemnified Party for any amount paid or payable by such party in the settlement or compromise of any claim or action without the Company's prior written consent, which consent shall not
be unreasonably withheld. 

        The
Company further agrees that neither Houlihan Lokey nor any other Indemnified Party shall have any liability, regardless of the legal theory advanced, to the Company or any other
person or entity (including, without limitation, the Company's equity holders and creditors) related to or arising out of the Agreement, except for any liability for losses, claims, damages,
liabilities or expenses incurred which are finally judicially determined by a court of competent jurisdiction to have resulted primarily from the willful misconduct or gross negligence of such
Indemnified Party. The indemnity, reimbursement, contribution and other obligations and agreements of the Company set forth herein shall apply to any modifications of the Agreement, shall be in
addition to any liability which the Company may otherwise have, and shall be binding upon, inure to the benefit of and be enforceable by any successors, assigns, heirs and personal representatives of
the Company and each Indemnified Party. The foregoing provisions shall survive the consummation of any Transaction and any termination of the relationship established by the Agreement. 

8

QuickLinks

Exhibit 10.33

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