Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Shellbridge Oil & Gas, Inc. - Exhibit 4.4

SHELLBRIDGE OIL & GAS, INC.

2005 INCENTIVE STOCK OPTION PLAN

	1. 	
      PURPOSE OF THE PLAN

	 	 	 
		
      Shellbridge Oil & Gas, Inc. (the “Company”) hereby
      establishes a stock option plan for directors, officers and Service
      Providers (as defined below) of the Company and its subsidiaries, to be
      known as the “Shellbridge Incentive Stock Option Plan” (the “Plan”). The
      purpose of the Plan is to give to directors, officers and Service
      Providers the opportunity to participate in the success of the Company by
      granting to such individuals options, exercisable over periods of up five
      years, as determined by the Board, to buy shares of the Company at a price
      at least equal to the market price prevailing on the date the option is
      granted.

	 	 	 
	2. 	
      DEFINITIONS

	 	 	 
		
      In this Plan, the following terms shall have the
      following meanings:

	 	 	 
	2.1 	
      “Associate” means an associate as defined in the
      Securities Act.

	 	 	 
	2.2 	
      “Board” means the board of directors of the Company and
      any committee of the Board that the Board may, in accordance with section
      6.3, designate to administer the Plan and to which any or all authority,
      rights, powers, and discretion with respect to the Plan has been
      delegated.

	 	 	 
	2.3 	
      “Change of Control” means the acquisition by any person
      or by any person and a Joint Actor, whether directly or indirectly, of
      voting securities of the Company, which, when added to all other voting
      securities of the Company at the time held by such person or by such
      person and a Joint Actor, totals for the first time not less than twenty
      percent (20%) of the outstanding voting securities of the
  Company.

	 	 	 
	2.4 	
      “Company” means Shellbridge Oil & Gas, Inc. and its
      successors.

	 	 	 
	2.5 	
      “Disability” means any disability with respect to an
      Optionee which the Board, in its sole and unfettered discretion, considers
      likely to prevent permanently the Optionee from:

	 	 	 
		(a) 	
      being employed or engaged by the Company, its
      subsidiaries or another employer, in a position the same as or similar to
      that in which he was last employed or engaged by the Company or its
      subsidiaries; or

	 	 	 
		(b) 	
      acting as a director or officer of the Company or its
      subsidiaries; or

	 	 	 
		(c) 	
      engaging in any substantial gainful activity by reason of
      any medically determinable mental or physical impairment that can be
      expected to result in death or which has lasted or can be expected to last
      a continual period of not less than 12 months.

	 	 	 
	2.6 	
      “Exchange” means The Toronto Stock Exchange or, if the
      Shares are not listed on The Toronto Stock Exchange, on such other stock
      exchange on which the Shares are listed.

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	2.7 	
      “Expiry Date” means the date set by the Board under
      Section 3.1 of the Plan, as the last date on which an Option may be
      exercised.

	 	 	 	 
	2.8 	
      “Good Reason” means a situation where a Service
      Provider:

	 	 	 	 
		(a) 	
      has incurred a material reduction in his or her authority
      or responsibility;

	 	 	 	 
		(b) 	
      has incurred one or more reductions in his or her base
      compensation in the cumulative amount of five percent (5%) or more;
    or

	 	 	 	 
		(c) 	
      has been notified that his principal place of work will
      be relocated by a distance of 80 kilometers or more, unless such new
      principal place of work is within 80 kilometers from his or her then
      current residence.

	 	 	 	 
	2.9 	
      “Grant Date” means the date specified in an Option
      Agreement as the date on which an Option is granted.

	 	 	 	 
	2.10 	
      “Insider” means:

	 	 	 	 
		(a) 	
      an insider as defined in the Securities Act, other than a
      person who is an insider solely by virtue of being a director or senior
      officer of a subsidiary of the Company; and

	 	 	 	 
		(b) 	
      an Associate of any person who is an insider under
      Subsection 2.10(a).

	 	 	 	 
	2.11 	
      “Involuntary Termination” means:

	 	 	 	 
		(a) 	
      the termination of a Service Provider’s employment or
      engagement by the Company, for any reason other than Cause or Disability,
      within the first 12 month period following a Change of Control;
  or

	 	 	 	 
		(b) 	
      the voluntary resignation of a Service Provider for Good
      Reason within the first 12 month period following a Change of
    Control.

	 	 	 	 
	2.12 	
      “Joint Actor” means a person acting jointly or in concert
      with an offeror, as such term is defined in Section 91 of the Securities
      Act.

	 	 	 	 
	2.13 	
      “Market Price” of Shares at any Grant Date means (i) the
      closing price per Share on The Toronto Stock Exchange for the last day
      Shares were traded prior to the Grant Date; or (ii) if the Shares are not
      listed on The Toronto Stock Exchange, the closing price per Share on such
      stock exchange on which the Shares are listed for the last day Shares were
      traded prior to the Grant Date, or (iii) if the Shares are not listed on
      any stock exchange, the price per Share on the over-the-counter market
      determined by dividing the aggregate sale price of the Shares sold by the
      total number of such Shares so sold on the applicable market for the last
      day prior to the Grant Date.

	 	 	 	 
	2.14 	
      “Option” means an option to purchase Shares granted
      pursuant to this Plan.

	 	 	 	 
	2.15 	
      “Option Agreement” means an agreement, in the form
      attached hereto as Schedule “A”, whereby the Company grants to an Optionee
      an Option.

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	2.16 	
      “Option Price” means the price per Share specified in an
      Option Agreement, adjusted from time to time in accordance with the
      provisions of Section 5.

	 	 	 
	2.17 	
      “Option Shares” means the aggregate number of Shares
      which an Optionee may purchase under an Option.

	 	 	 
	2.18 	
      “Optionee” means each of the directors, officers and
      Service Providers granted an Option pursuant to this Plan and their heirs,
      executors and administrators and, subject to the policies of the Exchange,
      an Optionee may also be a corporation wholly-owned by an individual
      eligible for an Option grant pursuant to this Plan.

	 	 	 
	2.19 	
      “Plan” means this Shellbridge 2005 Incentive Stock Option
      Plan.

	 	 	 
	2.20 	
      “Securities Act” means the Securities Act, R.S.O. 1990,
      c.S.5, as amended, as at the date hereof.

	 	 	 
	2.21 	
      “Service Provider” means:

	 	 	 
		(a) 	
      an employee or Insider of the Company or any of its
      subsidiaries;

	 	 	 
		(b) 	
      any other person or company engaged to provide ongoing
      management or consulting services for the Company, or for any entity
      controlled by the Company; and

	 	 	 
		(c) 	
      any person who is providing ongoing management or
      consulting services to the Company or to any entity controlled by the
      Company indirectly through a company that is a Service Provider under
      Subsection 2.21(b); and

	 	 	 
			
      “Service Providers” means more than one (1) Service
      Provider.

	 	 	 
	2.22 	
      “Shares” means the Common shares in the capital stock of
      the Company as constituted on the date of this Plan provided that, in the
      event of any adjustment pursuant to Section 5, “Shares” shall thereafter
      mean the shares or other property resulting from the events giving rise to
      the adjustment.

	 	 	 
	2.23 	
      “Unissued Option Shares” means the number of Shares, at a
      particular time, which have been allotted for issuance upon the exercise
      of an Option but which have not been issued, as adjusted from time to time
      in accordance with the provisions of Section 5, such adjustments to be
      cumulative.

	 	 	 
	2.24 	
      “Vested” means that an Option has become exercisable in
      respect of a number of Option Shares by the Optionee pursuant to the terms
      of the Option Agreement.

	 	 	 
	3. 	
      GRANT OF OPTIONS

	 	 	 
	3.1 	
      Option Terms

	 	 	 
		
      The Board may from time to time authorize the issue of
      Options to directors, officers and Service Providers of the Company and
      its subsidiaries on the terms and subject to the conditions set out in
      this Plan and any additional terms and conditions imposed by the Company
      and set out in the Option Agreement. Notwithstanding any terms imposed
      by

- 4 -

		
      the Company, the Option Price under each Option shall be
      not less than the Market Price on the Grant Date. The Expiry Date for each
      Option shall be set by the Board at the time of issue of the Option and
      shall not be more than five years after the Grant Date. Options shall not
      be assignable (or transferable) by the Optionee.

	 	 	 
	3.2 	
      Limits on Shares Issuable on Exercise of
      Options

	 	 	 
		
      The maximum number of Shares which may be issuable
      pursuant to options granted under the Plan shall be, subject to Section
      5.1, 10% of the issued and outstanding Shares of the Company from time to
      time, or such additional amount as may be approved from time to time by
      the shareholders of the Company. The number of Shares, issuable to any one
      Optionee under the Plan, together with all of the Company’s other
      previously established or proposed share compensation arrangements, shall
      not exceed 5% of the total number of issued and outstanding Shares on a
      non-diluted basis. The number of Shares, which may be reserved for issue
      pursuant to options granted to Insiders under the Plan, together with all
      of the Company's other previously established and outstanding or proposed
      share compensation arrangements, in aggregate, shall not exceed 10% of the
      total number of issued and outstanding Shares on a non-diluted basis. The
      number of Shares, which may be issuable under the Plan, together with all
      of the Company's other previously established and outstanding or proposed
      share compensation arrangements, within a one-year period:

	 	 	 
		(a) 	
      in aggregate shall not exceed 10% of the outstanding
      issue; and

	 	 	 
		(b) 	
      to any one Optionee who is an Insider and any Associates
      of such Insider, shall not exceed 5% of the outstanding issue.

	 	 	 
		
      For the purposes of this section, Shares issued pursuant
      to an entitlement granted prior to the grantee becoming an Insider may be
      excluded in determining the number of Shares issuable to Insiders. For the
      purposes of Subsections 3.2(a) and 3.2(b) above, “outstanding issue” is
      determined on the basis of the number of Shares that are outstanding
      immediately prior to the Share issuance in question, excluding Shares
      issued pursuant to Share compensation arrangements over the preceding
      one-year period.

	 	 	 
	3.3 	
      Option Agreements

	 	 	 
		
      Each Option shall be confirmed by the execution of an
      Option Agreement. Each Optionee shall have the option to purchase from the
      Company the Option Shares at the time and in the manner set out in the
      Plan and in the Option Agreement applicable to that Optionee. The
      execution of an Option Agreement shall constitute conclusive evidence that
      it has been completed in compliance with this Plan.

	 	 	 
	3.4 	
      Accelerated Vesting

	 	 	 
		
      If at any time there is an Involuntary Termination of a
      Service Provider, the terms of Vesting applicable to any Options granted
      to the Service Provider shall be deemed to be satisfied and the Options
      shall be deemed to have been Vested. The Company may, by resolution of the
      Board, reduce or eliminate the terms of Vesting on any existing
      Options.

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	4. 	
      EXERCISE OF OPTION

	 	 	 	 
	4.1 	
      When Options May be Exercised

	 	 	 	 
		
      Subject to Sections 4.3 and 4.4, an Option may be
      exercised to purchase any number of Shares up to the number of Unissued
      Option Shares that have Vested at any time after the Grant Date up to 5:00
      p.m. Vancouver time on the Expiry Date and shall not be exercisable
      thereafter.

	 	 	 	 
	4.2 	
      Manner of Exercise

	 	 	 	 
		
      The Option shall be exercisable by delivering to the
      Company a notice specifying the number of Shares in respect of which the
      Option is exercised together with payment in full of the Option Price for
      each such Share. Upon notice and payment there will be a binding contract
      for the issue of the Shares in respect of which the Option is exercised,
      upon and subject to the provisions of the Plan. Delivery of the Optionee's
      cheque payable to the Company in the amount of the Option Price shall
      constitute payment of the Option Price unless the cheque is not honoured
      upon presentation in which case the Option shall not have been validly
      exercised.

	 	 	 	 
	4.3 	
      Vesting of Option Shares

	 	 	 	 
		
      The Board may determine and impose terms upon which each
      Option shall become Vested in respect of Option Shares.

	 	 	 	 
	4.4 	
      Termination of Employment or Affiliation

	 	 	 	 
		
      If an Optionee ceases to be a director, officer or
      Service Provider of the Company, his or her Option shall be exercisable as
      follows:

	 	 	 	 
		(a) 	
      Death, Disability or Retirement

	 	 	 	 
			
      If the Optionee ceases to be a director, officer or
      Service Provider of the Company or a subsidiary of the Company, due to his
      or her death, Disability or retirement in accordance with the Company’s
      retirement policy in force from time to time, or, in the case of an
      Optionee that is a company, the death, Disability or retirement of the
      person who provides management or consulting services to the Company or to
      any entity controlled by the Company, the Option then held by the Optionee
      shall be exercisable to acquire Unissued Option Shares that have Vested at
      any time up to but not after the earlier of:

	 	 	 	 
			(i) 	
      365 days after the date of death, Disability or
      retirement; and

	 	 	 	 
			(ii) 	
      the Expiry Date;

	 	 	 	 
		(b) 	
      Termination For Cause

	 	 	 	 
			
      If the Optionee, or the Optionee’s employer in the case
      of an Option granted to an Optionee who falls under the definition of
      Service Provider set out in Subsection 2.21(c), ceases to be a director,
      officer or Service Provider of the Company or a subsidiary of the Company
      as a result of termination for cause, as that term
is

- 6 -

	 		
      interpreted by the courts of the jurisdiction in which
      the Optionee resides, any outstanding Option held by such Optionee on the
      date of such termination, whether in respect of Option Shares that are
      Vested or not, shall be cancelled as of the date of delivery of written
      notice of termination (and specifically without regard to the date any
      period of reasonable notice, if any, would expire).

	 	 	 
	 	(c) 	
      Early Retirement, Voluntary Resignation or Termination
      Other than For Cause

	 	 	 
	 		
      If the Optionee, or the Optionee’s employer in the case
      of an Option granted to an Optionee who falls under the definition of
      Service Provider set out in Subsection 2.21(c), ceases to be a director,
      officer or Service Provider of the Company or a subsidiary of the Company
      due to his or her retirement at the request of his or her employer earlier
      than the normal retirement date under the Company’s retirement policy then
      in force, or due to his or her termination by the Company other than for
      cause, or due to his or her voluntary resignation, the Option then held by
      the Optionee shall be exercisable to acquire Unissued Option Shares that
      have Vested at any time up to but not after the earlier of (i) the Expiry
      Date, (ii) the date which is 30 days after the Optionee, or the Optionee’s
      employer in the case of an Option granted to an Optionee who falls under
      the definition of Service Provider set out in Subsection 2.21(c), the
      Optionee’s employer, ceases active employment as a director, officer or
      Service Provider of the Company or a subsidiary of the Company, and (iii)
      30 days after the date of delivery of written notice of retirement,
      resignation or termination (and specifically without regard to the date
      any period of reasonable notice, if any, would expire).

	 	 	 
	 	(d) 	
      Blackout Period Allowance.

	 	 	 
	 		
      For greater certainty, if at the time the Optionee ceases
      to be a director, officer or Service Provider due to early retirement,
      voluntary resignation or termination by the Company other than for cause
      there is a Blackout Period, or if at any time during the 30 day period set
      out in paragraphs 4.4(c)(ii) and (iii), there is a Blackout Period, then
      in calculating the time that the Option then held by the Optionee shall be
      exercisable to acquire any Unissed Option Shares that have Vested, the 30
      days shall be in addition to any such Blackout Period. For the purposes of
      this Subsection 4.4 (d), “Blackout Period” means an interval of time
      during which the Company has determined that no Service Provider may trade
      any securities of the Company because they may be in possession of
      confidential information.

		
      For greater certainty, an Option that had not become
      Vested in respect of certain Unissued Option Shares at the time that the
      relevant events referred to in Subsections 4.4 (a), (b), (c) or (d)
      occurred, shall not be or become exercisable in respect of such Unissued
      Option Shares and shall be cancelled.

	 	 
	4.5 	
      Effect of a Take-Over Bid

	 	 
		
      If a bona fide offer ( an “Offer”) for Shares is
      made to the Optionee or to shareholders of the Company generally or to a
      class of shareholders which includes the Optionee,
which

- 7 -

Offer, if accepted in whole or in part,
would result in the offeror becoming a control person of the Company, within the
meaning of Subsection 1(1) of the Securities Act, the Company shall, immediately
upon receipt of notice of the Offer, notify each Optionee of full particulars of
the Offer, whereupon all Option Shares subject to such Option will become Vested
and the Option may be exercised in whole or in part by the Optionee so as to
permit the Optionee to tender the Option Shares received upon such exercise
pursuant to the Offer. However, if:

	 	(a) 	
      the Offer is not completed within the time specified
      therein; or

	 	 	 
	 	(b) 	
      all of the Option Shares tendered by the Optionee
      pursuant to the Offer are not taken up or paid for by the offeror in
      respect thereof,

		
      then the Option Shares received upon such exercise, or in
      the case of Subsection 4.5(b) above the Option Shares that are not taken
      up and paid for, shall be returned by the Optionee to the Company and
      reinstated as authorized but unissued Shares and, with respect to such
      returned Option Shares, the Option shall be reinstated as if it had not
      been exercised and the terms for such Option Shares becoming Vested shall
      be reinstated pursuant to Section 4.3. If any Option Shares are returned
      to the Company under this Section 4.5, the Company shall immediately
      refund the exercise price to the Optionee for such Option
Shares.

	 	 
	4.6 	
      Acceleration of Expiry Date

	 	 
		
      If at any time when an Option granted under the Plan
      remains unexercised with respect to any Unissued Option Shares, an Offer
      is made by an offeror, the Board may, upon notifying each Optionee of full
      particulars of the Offer, declare that all Option Shares issuable upon the
      exercise of Options granted under the Plan be Vested and accelerate the
      Expiry Date for the exercise of all unexercised Options granted under the
      Plan so that all Options will either be exercised or expire prior to the
      date upon which Shares must be tendered pursuant to the Offer.

	 	 
	4.7 	
      Effect of a Change of Control

	 	 
		
      If a Change of Control occurs, all Option Shares subject
      to each outstanding Option will become Vested, whereupon such Option may
      be exercised in whole or in part by the Optionee.

	 	 
	4.8 	
      Exclusion From Severance Allowance, Retirement
      Allowance or Termination Settlement

	 	 
		
      If the Optionee, or the Optionee’s employer in the case
      of an Option granted to an Optionee who falls under the definition of
      Service Provider set out in Subsection 2.21(c), retires, resigns or is
      terminated from employment or engagement with the Company or any
      subsidiary of the Company, the loss or limitation, if any, pursuant to the
      Option Agreement with respect to the right to purchase Option Shares which
      were not Vested at that time or which, if Vested, were cancelled, shall
      not give rise to any right to damages and shall not be included in the
      calculation of nor form any part of any severance allowance, retiring
      allowance or termination settlement of any kind whatsoever in respect of
      such Optionee.

- 8 -

	4.9 	
      Shares Not Acquired

	 	 	 	 
		
      Any Unissued Option Shares not acquired by an Optionee
      under an Option which has expired may be made the subject of a further
      Option pursuant to the provisions of the Plan.

	 	 	 	 
	5. 	
      ADJUSTMENT OF OPTION PRICE AND NUMBER OF OPTION
      SHARES

	 	 	 	 
	5.1 	
      Share Reorganization

	 	 	 	 
		
      Whenever the Company issues Shares to all or
      substantially all holders of Shares by way of a stock dividend or other
      distribution, or subdivides all outstanding Shares into a greater number
      of Shares, or combines or consolidates all outstanding Shares into a
      lesser number of Shares (each of such events being herein called a “Share
      Reorganization”), then effective immediately after the record date for
      such dividend or other distribution or the effective date of such
      subdivision, combination or consolidation, for each Option:

	 	 	 	 
		(a) 	
      the Option Price will be adjusted to a price per Share
      which is the product of:

	 	 	 	 
			(i) 	
      the Option Price in effect immediately before that
      effective date or record date; and

	 	 	 	 
			(ii) 	
      a fraction the numerator of which is the total number of
      Shares outstanding on that effective date or record date before giving
      effect to the Share Reorganization, and the denominator of which is the
      total number of Shares that are or would be outstanding immediately after
      such effective date or record date after giving effect to the Share
      Reorganization; and

	 	 	 	 
		(b) 	
      the number of Unissued Option Shares will be adjusted by
      multiplying (i) the number of Unissued Option Shares immediately before
      such effective date or record date by (ii) a fraction which is the
      reciprocal of the fraction described in paragraph 5.1 (a)(ii).

	 	 	 	 
	5.2 	
      Special Distribution

	 	 	 	 
		
      Subject to the prior approval of the Exchange, whenever
      the Company issues by way of a dividend or otherwise distributes to all or
      substantially all holders of Shares;

	 	 	 	 
		(a) 	
      shares of the Company, other than the Shares;

	 	 	 	 
		(b) 	
      evidences of indebtedness;

	 	 	 	 
		(c) 	
      any cash or other assets, excluding cash dividends (other
      than cash dividends which the Board has determined to be outside the
      normal course); or

	 	 	 	 
		(d) 	
      rights, options or warrants;

	 	 	 	 
		
      then to the extent that such dividend or distribution
      does not constitute a Share Reorganization (any of such non-excluded
      events being herein called a “Special Distribution”), and effective
      immediately after the record date at which holders of Shares are
      determined for purposes of the Special Distribution, for each Option the
      Option Price

- 9 -

		
      will be reduced, and the number of Unissued Option Shares
      will be correspondingly increased, by such amount, if any, as is
      determined by the Board in its sole and unfettered discretion to be
      appropriate in order to properly reflect any diminution in value of the
      Shares as a result of such Special Distribution.

	 	 	 
	5.3 	
      Corporate Organization

	 	 	 
		
      Whenever there is:

	 	 	 
		(a) 	
      a reclassification of outstanding Shares, a change of
      Shares into other shares or securities, or any other capital
      reorganization of the Company, other than as described in Sections 5.1 or
      5.2;

	 	 	 
		(b) 	
      a consolidation, merger or amalgamation of the Company
      with or into another corporation resulting in a reclassification of
      outstanding Shares into other shares or securities or a change of Shares
      into other shares or securities; or

	 	 	 
		(c) 	
      a transaction whereby all or substantially all of the
      Company's undertaking and assets become the property of another
      corporation;

	 	 	 
		
      (any such event being herein called a “Corporate
      Reorganization”) the Optionee will have an option to purchase (at the
      times, for the consideration and subject to the terms and conditions set
      out in the Plan) and will accept on the exercise of such option, in lieu
      of the Unissued Option Shares which he or she would otherwise have been
      entitled to purchase, the kind and amount of shares or other securities or
      property that he or she would have been entitled to receive as a result of
      the Corporate Reorganization if, on the effective date thereof, he or she
      had been the holder of all Unissued Option Shares or, if appropriate, as
      otherwise determined by the Board.

	 	 	 
	5.4 	
      Determination of Option Price and Number of Unissued
      Option Shares

	 	 	 
		
      If any questions arise at any time with respect to the
      Option Price or number of Unissued Option Shares deliverable upon exercise
      of an Option following a Share Reorganization, Special Distribution or
      Corporate Reorganization, such questions shall be conclusively determined
      by the Company’s auditors or, if the Company’s auditors decline to so act,
      any other firm of Chartered Accountants in Vancouver, British Columbia
      that the Board may designate and who will have access to all appropriate
      records, and such determination will be binding upon the Company and all
      Optionees.

	 	 	 
	5.5 	
      Regulatory Approval

	 	 	 
		
      Any adjustment to the Option Price or the number of
      unissued Option Shares purchasable under the Plan pursuant to the
      operation of any one of Sections 5.1, 5.2 or 5.3 is subject to the
      approval of the Exchange and any other governmental authority having
      jurisdiction.

- 10 -

	6. 	
      MISCELLANEOUS

	 	 
	6.1 	
      Right to Employment

	 	 
		
      Neither this Plan nor any of the provisions hereof shall
      confer upon any Optionee any right with respect to employment, engagement
      or appointment or continued employment, engagement or appointment with the
      Company or any subsidiary of the Company or interfere in any way with the
      right of the Company or any subsidiary of the Company to terminate such
      employment, engagement or appointment.

	 	 
	6.2 	
      Necessary Approvals

	 	 
		
      The Plan shall be effective only upon the approval of the
      shareholders of the Company at the annual general meeting of the Company
      on ·. The obligation of the Company to sell and deliver Shares in
      accordance with the Plan is subject to the approval of the Exchange and
      any governmental authority having jurisdiction. If any Shares cannot be
      issued to any Optionee for any reason, including, without limitation, the
      failure to obtain such approval, then the obligation of the Company to
      issue such Shares shall terminate and any Option Price paid by an Optionee
      to the Company shall be immediately refunded to the Optionee by the
      Company.

	 	 
	6.3 	
      Administration of the Plan

	 	 
		
      The Plan may be administered by the Board, or, in the
      Board’s sole and complete discretion, by a committee (the “Committee”) of
      two or more unrelated directors who may be designated by the Board from
      time to time to serve as the Committee for the Plan. Notwithstanding the
      existence of any such Committee, the Board itself will retain independent
      and concurrent power to undertake any action hereunder which has been
      delegated to the Committee, whether with respect to the Plan as a whole or
      with respect to individual Options granted or to be granted, as the case
      may be, under the Plan.

	 	 
		
      The Board, or any Committee designated under this section
      6.3, shall, without limitation, have full and final authority in its
      discretion, but subject to the express provisions of the Plan, to
      interpret the Plan, to prescribe, amend and rescind rules and regulations
      relating to the Plan and to make all other determinations deemed necessary
      or advisable in respect of the Plan. Except as set forth in Section 5.4,
      the interpretation and construction of any provision of the Plan by the
      Board, or Committee, shall be final and conclusive. Administration of the
      Plan shall be the responsibility of the appropriate officers of the
      Company and all costs in respect thereof shall be paid by the
    Company.

	 	 
	6.4 	
      Income Taxes

	 	 
		
      As a condition of and prior to participation in the Plan,
      any Optionee shall on request of the Company authorize the Company in
      writing to withhold from any remuneration otherwise payable to him or her
      any amounts required by any taxing authority to be withheld for taxes of
      any kind as a consequence of his or her participation in the
  Plan.

- 11 -

	6.5 	
      Amendments to the Plan

	 	 
		
      The Board may from time to time, subject to applicable
      law and to the prior approval, if required, of the Exchange or any other
      regulatory body having authority over the Company or the Plan, suspend,
      terminate or discontinue the Plan at any time, or amend or revise the
      terms of the Plan or of any Option granted under the Plan and the Option
      Agreement relating thereto, provided that no such amendment, revision,
      suspension, termination or discontinuance shall in any manner adversely
      affect any Option previously granted to an Optionee under the Plan without
      the consent of that Optionee.

	 	 
	6.6 	
      Form of Notice

	 	 
		
      A notice given to the Company shall be in writing, signed
      by the Optionee and delivered to the Secretary of the Company.

	 	 
	6.7 	
      No Representation or Warranty

	 	 
		
      The Company makes no representation or warranty as to the
      future market value of any Shares issued in accordance with the provisions
      of the Plan.

	 	 
	6.8 	
      Compliance with Applicable Law

	 	 
		
      If any provision of the Plan or any Option Agreement
      contravenes any law or any order, policy, by-law or regulation of any
      regulatory body or Exchange having authority over the Company or the Plan,
      then such provision shall be deemed to be amended to the extent required
      to bring such provision into compliance therewith.

	 	 
	6.9 	
      No Assignment

	 	 
		
      No Optionee may assign any of his or her rights under the
      Plan.

	 	 
	6.10 	
      Rights of Optionees

	 	 
		
      An Optionee shall have no rights whatsoever as a
      shareholder of the Company in respect of any of the Unissued Option Shares
      (including, without limitation, voting rights or any right to receive
      dividends, warrants or rights under any rights offering).

	 	 
	6.11 	
      Conflict

	 	 
		
      In the event of any conflict between the provisions of
      this Plan and an Option Agreement, the provisions of this Plan shall
      govern.

	 	 
	6.12 	
      Governing Law

	 	 
		
      The Plan and each Option Agreement issued pursuant to the
      Plan shall be governed by the laws of the Province of British
    Columbia.

	 	 
	6.13 	
      Time of Essence

	 	 
		
      Time is of the essence of this Plan and of each Option
      Agreement. No extension of time will be deemed to be, or to operate as, a
      waiver that time is to be of the essence.

- 12 -

	6.14 	
      Entire Agreement

	 	 
		
      This Plan and the Option Agreement sets out the entire
      agreement between the Company and the Optionees relative to the subject
      matter hereof and supersedes all prior agreements, undertakings and
      understandings, whether oral or written.

Approved by the shareholders at the Special General Meeting
held September 27, 2005. 

- 13 -

SCHEDULE “A”

SHELLBRIDGE OIL & GAS, INC.

2005 INCENTIVE STOCK OPTION PLAN

OPTION AGREEMENT

     This Option Agreement is entered
into between Shellbridge Oil & Gas, Inc. (“the Company”) and the Optionee
named below pursuant to the Shellbridge 2005 Incentive Stock Option Plan (the
“Plan”), a copy of which is attached hereto, and confirms that:

	1. 	
      on _________________, ______ (the “Grant
Date”);

	 	 	 
	2. 	
      ________________________________ (the
  “Optionee”);

	 	 	 
	3. 	
      was granted the option (the “Option”) to purchase
      ____________ Common Shares (the “Option Shares”) of the Company;

	 	 	 
	4. 	
      for the price (the “Option Price”) of $__________ per
      share;

	 	 	 
	5. 	
      which shall be exercisable (“Vested”) in whole or in part
      in the following amounts on or after the following dates:

	 	 	 
		
      _________________________________________________________________.

	 	 	 
	6. 	
      terminating on the earlier of:

	 	 	 
		(a) 	
      ______________________, ________; and

	 	 	 
		(b) 	
      the earlier (i) of 30 days after the Optionee ceases to
      be a director, officer or Service Provider of the Company, or (ii) 30 days
      after the date of delivery of written notice of retirement, resignation or
      termination, subject to any black-out provisions imposed by the
      Company.

	 	 	 
		
      (the “Expiry Date”);

	 	 	 
	7. 	
      on the terms and subject to the conditions set out in the
        Plan and the following conditions imposed by the Board:

      _________________________________________________________________

      _________________________________________________________________

      _________________________________________________________________

For greater certainty, once Option Shares have become Vested,
they continue to be exercisable until the termination or cancellation thereof as
provided in this Option Agreement and the Plan.

The Optionee acknowledges that while the Plan does not permit
Options representing more than 10% of the issued and outstanding shares of the
Company on a non-diluted basis be granted to an Insider, the Insider may,
because of other shareholdings, hold more than 10% of the Company’s issued and
outstanding shares. The Optionee further acknowledges that in the event the
Optionee 

- 14 -

owns more than 10% of the Company’s issued and outstanding
shares, the Optionee may be a “specified shareholder” as defined in the
Income Tax Act (Canada) R.S.C. 1985, c.1 (5th Supp.) (the “Act”) and that
one consequence of “specified shareholder” status is that the Optionee will not
be able to defer tax on the employee stock option benefit upon the exercise of
his or her Options, as otherwise provided by draft amendments to the Act
released on December 21, 2000. 

By signing this Option Agreement, the Optionee acknowledges
that the Optionee has read and understands the Plan and agrees to the terms and
conditions of the Plan and this Option Agreement.

     IN WITNESS WHEREOF the parties
  hereto have executed this Option Agreement as of the _____day of ______________,  ______.

	_______________________	SHELLBRIDGE OIL &
      GAS, INC. 
	OPTIONEE 	 
	 	  
	 	By:

      ____________________________ 
	 	Authorized Signatory 
	 	  
	 	By:
 ____________________________ 
	 	Authorized SignatoryFiled by Automated Filing Services Inc. (604) 609-0244 - Shellbridge Oil & Gas, Inc. - Exhibit 4.5

- 1 -

EMPLOYMENT AGREEMENT 

THIS AGREEMENT made as of the 25th day of January, 2006.

BETWEEN:

SHELLBRIDGE OIL & GAS,
INC., a company duly incorporated under the laws of Alberta having its
principal offices at #230-10991 Shellbridge Way, Richmond, BC, V6X 3C6
(hereinafter called “Shellbridge” or the “Company”)

AND:

WAYNE BABCOCK,
3949 West 32nd Avenue, Vancouver, B.C., V6S 1Z4 (hereinafter
called the “Employee”)

WHEREAS:

	A. 	
      Shellbridge is incorporated under the laws of Alberta to
      carry on business as an oil and gas exploration and development company;
      and

	 	 
	B. 	
      The Employee, having commenced employment with
      Shellbridge on September 30, 2005, is a valued employee of Shellbridge
      occupying as of the date hereof the position of President and Chief
      Executive Officer and in the judgement of the Board of Directors of
      Shellbridge (the “Directors”), it is of material value to Shellbridge to
      settle the terms of future employment of the Employee, and it is of value
      to the Employee that his/her responsibilities, remuneration and other
      benefits be defined as hereinafter provided;

NOW WITNESS that in consideration of the premises and
mutual covenants herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by both parties, the parties
hereby covenant and agree with each other as follows:

	1. 	
      EMPLOYMENT

	 	 
	1.1 	
      Shellbridge agrees to employ and to continue to employ
      the Employee and the Employee agrees to serve Shellbridge and its
      subsidiaries. Unless with the consent of the Employee the title of his/her
      office is changed the Employee shall during the term of this Agreement,
      serve as President and Chief Executive Officer of Shellbridge in addition
      to any other office the Employee may hold with Shellbridge. The term of
      this Agreement and employment is unlimited and indefinite, except that the
      employment and this Agreement may be terminated by either party as
      provided herein.

	 	 
	1.2 	
      The Employee shall report to and be directly responsible
      to the Directors. The Employee shall perform, observe and conform to such
      duties and instructions as from time to time are reasonably and
      appropriately assigned or communicated to the Employee by the Directors,
      and which are reasonably consistent with the employment and status of the
      employee, and shall make such reports as may be necessary to fully and
      properly inform the Directors of the matters of business of Shellbridge
      and, additionally, as the Directors may from time to time request and
      require.

- 2 -

	
1.3 		
In the event that any person, or any person and its affiliates, as such terms are defined in the Business Corporations Act (Alberta), begins a tender or exchange offer, circulates a proxy to shareholders or takes other steps to
effect a takeover of the control of Shellbridge, the Employee agrees that the Employee will not voluntarily leave the employ of Shellbridge, and will render services to Shellbridge in accordance with his/her position, and in the best interests of
the shareholders, until such person has abandoned or terminated efforts to effect a takeover of control of Shellbridge or until such a takeover of control of Shellbridge has occurred.

	
	 	 
		
For purposes of this Agreement takeover of control shall be evidenced by the acquisition by any person, or by any person and its affiliates, as such terms are defined in the Business Corporations Act (Alberta), and whether
directly or indirectly, of common shares of Shellbridge which, when added to all other common shares of Shellbridge at the time held by such person and its affiliates, totals for the first time 50% of the outstanding common shares of
Shellbridge.

	
	 	 
	
1.4 		
In this Agreement, service with the Company will include twenty-six (26) years of consecutive service with Dynamic Oil and Gas, Inc. immediately predating September 30, 2005.

	
	 	 
	
2. 		
COMPENSATION

	
	 	 
	
2.1 		
Shellbridge agrees to pay the Employee and the Employee agrees to accept as remuneration for services hereunder an annual salary in the amount specified on Schedule “A”, payable by semi- monthly instalments, exclusive of
any other benefits referred to herein. The parties agree that Shellbridge will review the said salary on an annual basis and will make any adjustments it determines are reasonable in the opinion of the Directors or, if appropriate, a committee of
the Directors that may take into account, but shall not be limited to, the Employee’s performance and the financial and operating success of Shellbridge in the preceding twelve (12) months. Such review shall take place within one hundred and
thirty five (135) days following the fiscal year end. In no case will the annual salary be reduced, unless by mutual agreement, such agreement to be in writing. For greater certainty annual salary as referred to herein shall not include any other
payments such as bonuses, share options, benefits, or amounts of a similar nature.

	
	 	 
	
2.2 		
The Employee shall be entitled to participate in all employee benefit programs, including, without limiting the generality of the foregoing, group and disability insurance and medical and dental plans, in accordance with and on
the terms and conditions generally provided from time to time by Shellbridge. The Employee agrees that Shellbridge may substitute, reduce, modify or, if necessary, eliminate such benefits for good and valid reason. All such benefits shall be
governed by the terms of the said policies in force.

	
	 	 
	
2.3 		
In the event that the Employee should at any time be prevented by illness or accident from performing all of his/her duties and provided that the Employee furnishes satisfactory evidence of such incapacity and the cause thereof,
the Employee shall receive benefits under Shellbridge’s long term disability program in accordance with his/her position. The benefits under the long term disability program are governed by the terms of the policy of insurance in force, and
Shellbridge assumes no liability to provide such benefits.

	

- 3 -

	2.4 	
      The Employee shall be eligible to participate in any
      incentive programs, including, without limiting the generality of the
      foregoing, share option plans, share purchase plans and share bonus plans
      in accordance with and on the terms and conditions of such plans and
      programs as at the date hereof are in place or as which may from time to
      time be implemented by the Directors in their sole discretion. The
      Employee acknowledges that his/her participation in these plans or
      programs will be to such extent and in such amounts as the Directors in
      their sole discretion may decide from time to time, and the Employee shall
      have no absolute entitlement to such participation. All such plans or
      programs shall be governed by the policies of the various regulatory
      bodies which have jurisdiction over the affairs of Shellbridge.

	 	 
		
      Any amounts which the Employee may be granted under any
      such plan or program shall not, for the purposes of this Agreement, be
      treated as salary and shall not be included in any severance payment to
      the Employee.

	 	 
	2.5 	
      Shellbridge shall pay on behalf of the Employee such
      professional organization dues as his/her superior or, if appropriate, the
      Directors of Shellbridge in their sole discretion may from time to time
      approve.

	 	 
	2.6 	
      The Employee shall be entitled to holidays, without
      reduction in salary, each calendar year, at such time or times as shall be
      convenient to the Employee and Shellbridge, for a period as specified on
      Schedule “A”.

	 	 
	2.7 	
      The Employee shall be reimbursed by Shellbridge for all
      out-of-pocket expenses actually, necessarily and properly incurred by the
      Employee in the discharge of his/her duties for Shellbridge. The Employee
      agrees that such reimbursements shall be due only after the Employee has
      rendered an itemized expense account, together with receipts where
      applicable, showing all monies actually expended on behalf of Shellbridge
      and such other information as may be required and requested by
      Shellbridge.

	 	 
	2.8 	
      Shellbridge shall provide such additional benefits as may
      be set out in Schedule “A”.

	 	 
	3. 	
      DUTIES OF THE EMPLOYEE

	 	 
	3.1 	
      The Employee will devote his/her best efforts to advance
      Shellbridge’s interests.

	 	 
	3.2 	
      The Employee agrees that he owes a fiduciary duty to
      Shellbridge.

	 	 
	3.3 	
      Without the prior consent of the Directors, the Employee
      shall not, during the terms of this Agreement, directly engage in any
      business which is competitive with that of Shellbridge or its
      subsidiaries, or accept employment with or render services to a competitor
      or take any other action inconsistent with the fiduciary relationship of
      an executive officer to his/her corporation. The Employee will promptly
      disclose to Shellbridge any actual or proposed activity of the Employee
      which may give rise to any conflict with the Employee’s duty to
      Shellbridge.

	 	 
		
      If the Directors shall find that the Employee is engaging
      in such competitive or inconsistent or conflicting activity and cause the
      Employee to be so advised in writing, the Employee shall discontinue such
      activity within fifteen (15) days of such notice, unless such time shall
      be extended by

- 4 -

		
the Directors. The Employee shall, within such fifteen (15) day period (or as the same may be extended by the Directors), certify in writing to the Directors that the Employee has discontinued such activity. Failure by the
Employee to terminate the activities which are the subject of such notice as herein provided shall be grounds for dismissal of the Employee for cause by the Directors.

	
	 	 	 
		
Shellbridge specifically acknowledges that the Employee is involved with the entities listed on Schedule “A”, if any, and Shellbridge consents to such involvements and consents and agrees that all acts done by the
Employee for any of such entities shall not constitute a conflict or competition with Shellbridge, provided that such consent shall not permit any appropriation by the Employee of any business opportunity coming to the Employee in the
Employee’s capacity as the Employee or otherwise in the course of Shellbridge’s business.

	
	 	 	 
	
3.4 		
The Employee will not, at any time, or in any manner, during the continuance of his/her employment hereunder, divulge any of the confidential affairs or secrets of Shellbridge to any person or persons, without the previous consent
in writing of the Directors. During the continuation of his/her employment, the Employee shall not use or attempt to use any information which the Employee may acquire in the course of his/her employment for his/her own benefit, directly or
indirectly.

	
	 	 	 
	
3.5 		
The Employee agrees to communicate at once to Shellbridge all business opportunities which come to the Employee in his/her capacity as such or otherwise in the course of Shellbridge’s business and to deliver to Shellbridge
all inventions and improvements in the nature of the business of Shellbridge which, in the course of Shellbridge’s business the Employee may conceive, make or discover, become aware directly or indirectly or have presented to the Employee, and
such business opportunities, inventions, and improvements shall become the exclusive property of Shellbridge without any obligation on the part of Shellbridge to make any payment thereof in addition to the salary and benefits described herein to the
Employee.

	
	 	 	 
	
4. 		
TERMINATION

	
	 	 	 
	
4.1 		
The Employee may terminate this Agreement and his/her employment by giving Shellbridge at least one (1) month’s written notice. Any monies owed by the Employee to Shellbridge up to the date of termination shall be then paid
by the Employee to Shellbridge.

	
	 	 	 
	
4.2 		
Shellbridge may terminate this Agreement and the employment of the Employee without cause in which event Shellbridge shall be obligated to provide the Employee with a severance payment in lieu of notice. Such severance payment
shall be payable on the fifth day following the date of termination and shall consist of the following:

	
	 	 	 
		
(a) 		
the Employee’s full salary less required deductions through to the date of termination at the rate in effect at the time notice of termination was given, plus an amount equal to the amount, if any, of any awards previously
made to the Employee which have not been paid; and

	
	 	 	 
		
(b) 		
subject as may be provided in Schedule “A”, in lieu of further salary for periods subsequent to the date of termination, an amount equivalent to six (6) months salary, less required deductions, if the Employee has then
served the Company for less than one full year; twelve (12) months salary, less required deductions, if the Employee has then served the Company for longer than one year but less than three years; and eighteen (18) months salary, less

	

- 5 -

required deductions, if the Employee
has then served for longer than three years, and in each case, calculated on the
Employee’s monthly salary at the highest rate in effect during the twelve (12)
month period immediately preceding the date of termination, exclusive of any
benefits, bonuses, or other additional amounts; and

	 	(c) 	
      subject to section 4.2(e) below, in lieu of common shares
      of Shellbridge issuable upon exercise of options previously granted to the
      Employee under Shellbridge’s incentive programs and remaining unexercised
      on the fourth day following the date of termination, which options shall
      be cancelled upon the payment referred to herein, a cash amount equal to
      the aggregate spread between the exercise price of all options held by the
      Employee, whether or not then fully exercisable, and the higher of (i) the
      average of the closing prices of Shellbridge’s common shares as reported
      on The Toronto Stock Exchange (or such other stock exchange on which
      Shellbridge’s shares may be listed) for thirty (30) business days
      preceding the date of termination or (ii) the average price actually paid
      for the most highly priced one percent (1%) of Shellbridge’s common
      shares, however and for whatever reason acquired, by any person who
      achieves control of Shellbridge as such term is defined in paragraph 1.3;
      and

	 	 	 
	 	(d) 	
      the Company shall pay the premiums for and the Employee
      shall retain all health and insurance benefits as permitted by the
      relevant benefit plan (to which the Employee had a right prior to such
      termination) for a period of six months after the termination;
  and

	 	 	 
	 	(e) 	
      the Employee shall have the right exercisable up to the
      fourth day following the date of termination, to elect to waive the
      application of section 4.2(c) following termination of the Employee’s
      employment. The Employee may exercise this election on or before 5:00
      p.m. Vancouver time on such fourth day by delivering a notice in
      writing to Shellbridge of such waiver
whereupon:

	 	(i) 	
      the Employee’s options on shares of Shellbridge shall
      remain in full force and effect in accordance with the original terms but
      shall be deemed to have been amended to the effect that any provision
      which would otherwise terminate such options as a result of the
      termination of the Employee’s employment shall be null and void;
  and

	 	 	 
	 	(ii) 	
      Shellbridge shall be relieved of any obligation in
      connection with termination of the Employee’s employment to make the
      payment in section 4.2(c).

Termination of the Agreement in
accordance with this section shall relieve Shellbridge from any and all
obligations, liability or claims by the Employee with respect to Shellbridge
except for any amounts owing to the Employee under this Agreement up to the date
of termination or his/her rights under his/her option agreement if he elects to
waive the application of paragraph 4.2(c) .

	4.3 	
      Shellbridge may at any time terminate the Employment of
      the Employee and this Agreement for cause that would in law permit
      Shellbridge to, without notice, terminate the employment of the Employee,
      in which event the Employee shall not be entitled to a severance payment
      pursuant to section 4.2 of this Agreement, pay in lieu of notice or
      otherwise.

- 6 -

	4.4 	
      Any termination by Shellbridge pursuant to paragraphs 4.2
      and 4.3 shall be communicated by written notice of termination. For
      purposes of this Agreement, a “notice of termination” shall mean a notice
      which shall indicate the specific termination provision of this Agreement
      relied upon and shall set forth in reasonable detail the facts and
      circumstances claimed to provide a basis for termination of the Employee’s
      employment. For purposes of this Agreement, no such purported termination
      shall be effective without such notice.

	 	 	 
	4.5 	
      Notwithstanding the provisions of paragraphs 4.1 and 4.2
      the parties acknowledge that, given the particular enterprise and business
      of Shellbridge it is crucial and necessary that the Employee maintain a
      close relationship with his/her superior and, if appropriate, the
      Directors of Shellbridge based on mutual loyalty, respect and trust.
      Accordingly, Shellbridge agrees that if the Employee elects to resign
      based on the sole reason that there has been a takeover of the control of
      Shellbridge (as defined in paragraph 1.3), then the Employee may give
      notice of resignation in writing to his/her superior and, if appropriate,
      the Directors (“Change in Control Resignation” or “CCR”). The notice of
      resignation must contain at least one (1) month’s notice and not more than
      two (2) month’s notice. The Employee must exercise this right within six
      (6) months of the takeover of control as referred to herein.

	 	 	 
		
      On the effective date of any CCR (the “Date of CCR
      Resignation”), Shellbridge shall be obligated to provide the Employee with
      a severance payment on the fifth (5th) day following Date of
      Resignation which shall consist of the following amounts:

	 	 	 
		(a)	
      the Employee’s full salary through to the Date of CCR
      Resignation at the rate in effect at the time notice of termination or
      notice of resignation was given, plus an amount equal to the amount, if
      any, of any awards previously made to the Employee which have not been
      paid; and

	 	 	 
		(b)	
      subject as may be provided in Schedule “A”, in lieu of
      further salary for periods subsequent to the Date of CCR Resignation, an
      amount equivalent to six (6) months salary, less required deductions, if
      the Employee has then served the Company for less than one full year;
      twelve (12) months salary, less required deductions, if the Employee has
      then served the Company for longer than one year but less than three
      years; and eighteen (18) months salary, less required deductions, if the
      Employee has then served for longer than three years, and in each case,
      calculated on the Employee’s monthly salary at the highest rate in effect
      during the twelve (12) month period immediately preceding the date of
      termination, exclusive of any benefits, bonuses, or other additional
      amounts; and

	 	 	 
		(c)	
      in lieu of common shares of Shellbridge issuable upon
      exercise of options, if any, previously granted to the Employee under
      Shellbridge’s incentive programs and remaining unexercised on the fourth
      day following the Date of CCR Resignation, which options shall be
      cancelled upon the payment referred to herein, a cash amount equal to the
      aggregate spread between the exercise price of all options held by the
      Employee, whether or not then fully exercisable, and the higher of (i) the
      average of the closing prices of Shellbridge’s common shares as reported
      on The Toronto Stock Exchange (or such other stock exchange on which
      Shellbridge’s shares may be listed) for thirty (30) days preceding the
      Date of CCR Resignation or (ii) the average price actually paid for the
      most highly priced one percent (1%) of Shellbridge’s common shares,
      however and for whatever reason by any person who achieves control of
      Shellbridge as such term is defined in paragraph 1.3;
and

- 7 -

	 	(d) 	
      the Employee shall have the right exercisable up to the
      fourth day following the Date of CCR Resignation, to elect to waive the
      application of section 4.5(c) following termination of the Employee’s
      employment. The Employee may exercise this election on or before 5:00 p.m.
      Vancouver time on such fourth day by delivering a notice in writing to
      Shellbridge of such waiver whereupon:

	 	 	 	 
	 		(i) 	
      the Employee’s options on shares of Shellbridge shall
      remain in full force and effect in accordance with the original terms but
      shall be deemed to have been amended to the effect that any provision
      which would otherwise terminate such options as a result of the
      termination of the Employee’s employment shall be null and void;
  and

	 	 	 	 
	 		(ii) 	
      Shellbridge shall be relieved of any obligation in
      connection with termination of the Employee’s employment to make the
      payment in section 4.5(c).

		
      The Employee agrees to accept such payment in full
      satisfaction of any and all claims the Employee has or may have against
      Shellbridge and the Employee agrees to execute a Full and General release
      in favour of Shellbridge with respect to the same upon payment of said
      sum, except monies owing by either party to the other up to the Date of
      CCR Resignation.

	 	 
	4.6 	
      On the termination of his/her employment for any reason,
      the Employee agrees to deliver up to Shellbridge all documents, financial
      statements, records, plans, drawings and papers of every nature, in any
      way relating to the affairs of Shellbridge and its subsidiaries or
      affiliated companies which may be in his/her possession or under his/her
      control.

	 	 
	4.7 	
      The Employee shall not be required to mitigate the amount
      of any payments provided for under any paragraph of this section 4 by
      seeking other employment or otherwise, nor shall the amount of any payment
      provided for in this section be reduced by any compensation earned by the
      Employee as the result of employment by another employer after the date of
      termination, or otherwise.

	 	 
	5. 	
      SUCCESSORS OR ASSIGNS

	 	 
	5.1 	 The rights and obligations of Shellbridge under this
        Agreement shall enure to the benefit of and be binding upon the successors
        and assigns of Shellbridge and will require any successor (whether direct
        or indirect, by purchase, amalgamation, consolidation or otherwise) to
        all or substantially all of the business and/or assets of Shellbridge
        to expressly assume and agree to perform this Agreement in the same manner
        and to the same extent that Shellbridge would be required to perform it
        if no such succession had taken place provided that, if the Employee agrees,
        an express agreement may not be required if such results by operation
        of law. Failure of Shellbridge to obtain such agreement prior to the effectiveness
        of any such succession shall be a breach of this Agreement and shall entitle
        the Employee to compensation from Shellbridge in the same amount and on
        the same terms as the Employee would be entitled hereunder pursuant to
        paragraph 4.5 as if such succession had not occurred, except that for
        purposes of implementing the foregoing, the date of which any such succession
        becomes effective shall be deemed the date of termination. As used in
        this Agreement, “Shellbridge” shall mean the Company as hereinbefore
        defined and any successor to its business and/or assets as aforesaid which
        executes and delivers the agreement provided for in this paragraph 5.1or
        which otherwise becomes bound by all the terms and provisions of this
        Agreement by operation of law.

- 8 -

	 6. 	 MISCELLANEOUS

	 	 
	 6.1 	 This Agreement and the employment of the Employee
        shall be governed, interpreted, construed and enforced according to the
        laws of the Province of British Columbia and the laws of Canada applicable
        therein.

	 	 
	 6.2 	 Time shall be of the essence of this Agreement.

	 	 
	 6.3 	 Shellbridge shall pay all legal fees and expenses
        actually incurred by the Employee in contesting or disputing any termination,
        or in seeking to obtain or enforce any right or benefit provided by this
        Agreement provided that the Employee obtains a judgment against Shellbridge
        in any court of competent jurisdiction located within British Columbia
        and receives an award of costs in association with that judgement.

	 	 
	 6.4 	 This Agreement represents the entire Agreement between
        the Employee and Shellbridge concerning the subject matter hereof and
        supersedes any previous oral or written communications, representations,
        understandings or agreements with Shellbridge or any officer or agent
        thereof.

	 	 
	 6.5 	 Any notice, acceptance or other document required
        or permitted hereunder shall be considered and deemed to have been duly
        given if delivered by hand or mailed by postage prepaid and addressed
        to the party for whom it is intended at the party’s address above
        or to such other address as the party may specify in writing to the other
        and shall be deemed to have been received if delivered, on the date of
        delivery, and if mailed as aforesaid, then on the second business day
        following the date of mailing thereof, provided that if there shall be
        at the time of mailing or within two business days thereof a strike, slowdown
        or other labour dispute which might affect delivery of notice by the mails,
        then the notice shall only be effective if actually delivered.

	 	 
	 6.6 	 The waiver by the Employee or by Shellbridge of a
        breach of any provision of this Agreement by Shellbridge or by the Employee
        shall not operate or be construed as a waiver of any subsequent breach
        by Shellbridge or by the Employee.

- 9 -

	6.7 	
      This Agreement shall inure to the benefits of and be
      enforceable by the Employee’s legal representatives, executors,
      administrator, successors, heirs, distributees, devisees and legatees. If
      the Employee should die while any amounts are still payable to the
      Employee hereunder, all such amounts, unless otherwise provided herein,
      shall be paid in accordance with the terms of this Agreement to such legal
      representatives, executors, administrator, successors, heirs,
      distributees, devisees and legatees or, if there be no such designee, to
      the Employee’s estate.

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

	The Corporate Seal of SHELLBRIDGE OIL
    	) 	 	  
	& GAS, INC. was hereunto affixed
      in the 	) 	 	  
	presence of: 	) 	 	  
	  	) 	 	  
	“signed” 	) 	 	c/s 
	  	) 	 	  
	Authorized Signatory 	) 	 	  
	  	) 	 	  
	“signed” 	) 	 	  
	  	) 	 	  
	Authorized Signatory 	  	 	  
	  	  	 	  
	  	  	 	  
	  	  	 	  
	SIGNED, SEALED AND DELIVERED by 	) 	 	  
	WAYNE BABCOCK in the presence of: 	) 	 	  
	  	) 	 	  
	  	) 	 	  
	  	) 	 	  
	Name 	) 	 	  
	  	) 	 	  
	  	) 	 	“signed” 
	Address 	) 	 	 
    
	  	) 	 	WAYNE BABCOCK 
	  	) 	 	  
	  	) 	 	  
	  	) 	 	  
	  	) 	 	  
	Occupation 	) 	 	  
	  	) 	 	  

SCHEDULE “A”

Employee

	Salary: 	$117,600 per annum. 
	 	 
	Holidays: 	Six (6) weeks per annum. 
	 	 
	Entities: 	Redcorp Ventures Ltd. - Director 
	 	 
	Severance Equivalent: 	Twenty-four (24) months’ base salary, pursuant
      to paragraphs 4.2(b) and 4.5(b). 
	 	 
	Other Benefits: 	Medical, dental, AD&D and life insurance
      coverage as provided in the Company’s benefits package.

Dated: January 25, 2006.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]