Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Arkanova Energy Corporation - Exhibit 10.10

Exhibit 10.10 

THIS AGREEMENT RELATES TO AN OFFERING OF SECURITIES IN AN
OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN
REGULATIONS UNDER THE 1933 ACT) PURSUANT TO REGULATION S UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), NONE OF THE SECURITIES TO
WHICH THIS AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY
U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR
SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS
DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER
THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933
ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS, IN ADDITION, HEDGING
TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
WITH THE 1933 ACT. 

NOTE PURCHASE AGREEMENT 

THIS NOTE PURCHASE AGREEMENT (this “Agreement”)
  is made as of the ______ day of ____________________, 2007 by and between Arkanova
  Energy Corporation, a Nevada corporation (the “Company”), and the
  investor indicated on the signature page hereof (the “Investor”).

WHEREAS: 

A.          
The Company and the Investor are executing and delivering this Agreement in
reliance upon the exemptions from securities registration afforded by the
provisions of Regulation S (“Regulation S”), as promulgated by the U.S.
Securities and Exchange Commission under the Securities Act of 1933, as amended;
and 

B.          
The Investor wishes to purchase from the Company, and the Company wishes to sell
and issue to the Investor, upon the terms and conditions stated in this
Agreement, one or more promissory notes (each, a “Note”) in the aggregate
principal amount of $1,000,000 (the “Principal Amount”), bearing interest at the
rate of 10.0% per annum in the form attached hereto as Exhibit A (the “Aggregate
Offering”). 

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in
consideration of the mutual promises made herein and for other good and valuable
consideration, the 

2

receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 

1.          
Definitions. In addition to those terms defined above and elsewhere in this
Agreement, for the purposes of this Agreement, the following terms shall have
the meanings set forth below: 

	 	(a) 	
      “Affiliate” means, with respect to any Person, any
      other Person which directly or indirectly through one or more
      intermediaries Controls, is controlled by, or is under common control
      with, such Person;

	 	 	 
	 	(b) 	
      “Business Day” means a day, other than a Saturday
      or Sunday, on which banks in Houston, Texas are open for the general
      transaction of business;

	 	 	 
	 	(c) 	
      “Company’s Knowledge” means the actual knowledge
      of the executive officers (as defined in Rule 405 under the 1933 Act) of
      the Company, after due inquiry;

	 	 	 
	 	(d) 	
      “Control” (including the terms
      “controlling”, “controlled by” or “under common control
      with”) means the possession, direct or indirect, of the power to
      direct or cause the direction of the management and policies of a Person,
      whether through the ownership of voting securities, by contract or
      otherwise;

	 	 	 
	 	(e) 	
      “Material Adverse Effect” means a material adverse
      effect on (i) the assets, liabilities, results of operations, condition
      (financial or otherwise), business, or prospects of the Company and its
      Subsidiaries taken as a whole, or (ii) the ability of the Company to
      perform its obligations under the Transaction Documents;

	 	 	 
	 	(f) 	
      “Person” means an individual, corporation,
      partnership, limited liability company, trust, business trust,
      association, joint stock company, joint venture, sole proprietorship,
      unincorporated organization, governmental authority or any other form of
      entity not specifically listed herein;

	 	 	 
	 	(g) 	
      “Purchase Price” means the price paid for the Note
      set forth on the signature page hereof. Wire instructions for the
      payment of the Purchase Price are provided in Exhibit B attached
      hereto;

	 	 	 
	 	(h) 	
      “SEC” means the United States Securities and
      Exchange Commission;

	 	 	 
	 	(i) 	
      “Subsidiaries” means the wholly-owned or majority
      owned subsidiaries of the Company;

	 	 	 
	 	(j) 	
      “Transaction Documents” means this Agreement and
      the Note;

3

	 	(k) 	
      “1933 Act” means the Securities Act of 1933, as
      amended, or any successor statute, and the rules and regulations
      promulgated thereunder; and

	 	 	 
	 	(l) 	
      “1934 Act” means the Securities Exchange Act of
      1934, as amended, or any successor statute, and the rules and regulations
      promulgated thereunder.

2.          
Purchase and Sale of the Notes; Security. Subject to the terms and
conditions of this Agreement, on the Closing Date, the Company shall sell and
issue to the Investor, a Note in the Principal Amount in exchange for the
Purchase Price. The Investor shall be permitted to maintain a security interest
in the oil, gas and mineral leases owned by the Company and covering acreage in
Phillips and Monroe County, Arkansas, and any and all wells located on the
acreage covered by said leases that are owned and operated by the Company,
right-of-ways and easements and the Company’s share of production obtained from
such wells (the “Security Interest”), as more fully set forth in
Paragraph 7(d) hereof. 

3.          
Closing. There shall be no formal closing ceremony with respect to the
transactions contemplated by this Agreement. Instead, the parties shall execute
and exchange the Transaction Documents by facsimile and email and the closing of
the transactions contemplated by this Agreement shall be deemed to have occurred
(the “Closing”) on the date (the “Closing Date”) that the Company
receives the Purchase Price in full. There may be multiple Closings. 

4.          
Representations and Warranties of the Company. The Company hereby
represents and warrants to the Investor that, except as set forth in any
schedules delivered herewith (collectively, the “Disclosure Schedules”):

	 	(a) 	
      Organization, Good Standing and Qualification. The
      Company is a corporation duly organized, validly existing and in good
      standing under the laws of the jurisdiction of its incorporation and has
      all requisite corporate power and authority to carry on its business as
      now conducted and to own its properties. The Company is duly qualified to
      do business as a foreign corporation and is in good standing in each
      jurisdiction in which the conduct of its business or its ownership or
      leasing of property makes such qualification or leasing necessary unless
      the failure to so qualify has not and could not reasonably be expected to
      have a Material Adverse Effect;

	 	 	 
	 	(b) 	
      Authorization. The Company has full power and
      authority and, has taken all requisite action on the part of the Company,
      its officers, directors and stockholders necessary for (i) the
      authorization, execution and delivery of the Transaction Documents, (ii)
      authorization of the performance of ail obligations of the Company
      hereunder or thereunder, and (iii) the authorization, issuance and
      delivery of the Note. The Transaction Documents constitute the legal,
      valid and binding obligations of the

4

	 		
      Company, enforceable against the Company in accordance
      with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
      reorganization, moratorium and similar laws of general applicability,
      relating to or affecting creditors’ rights generally;

	 	 	 
	 	(c) 	
      Valid Issuance. The Notes have been duly and
      validly authorized and, when issued and paid for pursuant to this
      Agreement, shall be free and clear of all encumbrances and restrictions
      (other than those created by the Investor), except for restrictions on
      transfer set forth in the Transaction Documents or imposed by applicable
      securities laws;

	 	 	 
	 	(d) 	
      Consents. The execution, delivery and performance
      by the Company of the Transaction Documents, and the offer, issuance and
      sale of the Notes require no consent of, action by or in respect of, or
      filing with, any Person, governmental body, agency, or official other than
      filings that have been made pursuant to applicable state securities laws,
      and post-sale filings pursuant to applicable state and federal securities
      laws which the Company undertakes to file within the applicable time
      periods;

	 	 	 
	 	(e) 	
      Use of Proceeds. The net proceeds of the sale of
      the Notes hereunder shall be used by the Company for acquisition of oil
      and gas leases in Phillips and Monroe Counties, Arkansas, and for general
      working capital purposes;

	 	 	 
	 	(f) 	
      No Conflict, Breach, Violation or Default. The
      execution, delivery and performance of the Transaction Documents by the
      Company and the issuance and sale of the Notes will not conflict with or
      result in a breach or violation of any of the terms and provisions of, or
      constitute a default under (i) the Company’s Certificate of Incorporation
      or the Company’s Bylaws, both as in effect on the date hereof, or (ii)(a)
      any statute, rule, regulation or order of any governmental agency or body
      or any court, domestic or foreign, having jurisdiction over the Company or
      any of its assets or properties, or (b) any agreement or instrument to
      which the Company is a party or by which the Company is bound or to which
      any of its assets or properties is subject;

	 	 	 
	 	(g) 	
      Litigation. There are no pending actions or suits
      against or affecting the Company or any of its properties; and to the
      Company’s Knowledge, no such actions, suits or proceedings are threatened
      or contemplated;

	 	 	 
	 	(h) 	
      No Directed Selling Efforts or General
      Solicitation. Neither the Company nor any Person acting on its behalf
      has conducted any general solicitation or general advertising (as those
      terms are used in Regulation S) in connection with the offer or sale of
      any of the Notes;

5

	 	(i) 	
      No Integrated Offering. Neither the Company nor
      any of its Affiliates, nor any Person acting on its or their behalf has,
      directly or indirectly, made any offers or sales of any Company security
      or solicited any offers to buy any security, under circumstances that
      would adversely affect reliance by the Company on Regulation S for the
      exemption from registration for the transactions contemplated hereby or
      would require registration of the Notes under the 1933 Act; and

	 	 	 
	 	(j) 	
      Private Placement. The offer and sale of the Notes
      to the Investor as contemplated hereby is exempt from the registration
      requirements of the 1933 Act.

	5. 	
      Representations and Warranties of the Investor.
      The Investor hereby represents and warrants to the Company that:

	 	 	 
		(a) 	
      Organization and Existence. Such Investor is a
      validly existing corporation, limited partnership or limited liability
      company and has all requisite corporate, partnership or limited liability
      company power and authority to invest in the Notes pursuant to this
      Agreement;

	 	 	 
		(b) 	
      Authorization. The execution, delivery and
      performance by such Investor of the Transaction Documents to which such
      Investor is a party have been duly authorized and will each constitute the
      valid and legally binding obligation of such Investor, enforceable against
      such Investor in accordance with their respective terms, subject to
      bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
      and similar laws of general applicability, relating to or affecting
      creditors’ rights generally;

	 	 	 
		(c) 	
      Purchase Entirely for Own Account. The Note to be
      received by such Investor hereunder will be acquired for such Investor’s
      own account, not as nominee or agent, and not with a view t the resale or
      distribution of any part thereof in violation of the 1933 Act, and such
      Investor has no present intention of selling, granting any participation
      in, or otherwise distributing the same in violation of the 1933 Act
      without prejudice, however, to such Investor’s right at all times to sell
      or otherwise dispose of all or any part of such Note in compliance with
      applicable federal and state securities laws. Nothing contained herein
      shall be deemed a representation or warranty by such Investor to hold the
      Note for any period of time. Such Investor is not a broker-dealer
      registered with the SEC under the 1934 Act or an entity engaged in a
      business that would require it to be so registered;

	 	 	 
		(d) 	
      Investment Experience. Such Investor acknowledges
      that it can bear the economic risk and complete loss of its investment in
      the Notes and has such knowledge and experience in financial or business
      matters that it is capable of evaluating the merits and risks of the
      investment contemplated hereby;

6

	 	(e) 	
      Disclosure of Information. Such Investor has had
      an opportunity to receive all information related to the Company requested
      by it and to ask questions of and receive answers from the Company
      regarding the Company, its business and the terms and conditions of the
      offering of the Notes.

	 	 	 
	 	(f) 	
      No Reliance. The Investor has not relied upon the
      Company or its directors and officers, or the Company’s legal counsel or
      advisors for investment, legal or tax advice, including advice with
      respect to the hold periods and resale restrictions imposed upon the Notes
      by the securities legislation in the jurisdiction in which the Investor
      resides, and has, if desired, in all cases sought the advice of the
      Investor’s own personal investment advisor, legal counsel and tax
      advisors, and the Investor is either experienced in or knowledgeable with
      regard to the affairs of the Company or, either alone or with its
      professional advisors, is capable by reason of knowledge and experience in
      financial and business matters in general, and investments in particular,
      of evaluating the merits and risks of an investment in the Notes, and it
      is able to bear the economic risk of an investment in the Notes and can
      otherwise be reasonably assumed to have the capacity to protect its own
      interest in connection with the investment;

	 	 	 
	 	(g) 	
      Restricted Securities. Such Investor understands
      that the Notes are characterized as “restricted securities” under the U.S.
      federal securities laws and have not been registered under the 1933 Act or
      under any state or “blue sky” laws of the United States, and are being
      offered in a transaction not involving any public offering within the
      meaning of the 1933 Act, and unless so registered, may not be offered or
      sold in the United States or to U.S. Persons as defined in Regulation S
      promulgated under the 1933 Act, and in each case only in accordance with
      applicable securities laws;

	 	 	 
	 	(h) 	
      Further Representations and Acknowledgements. The
      Investor further represents and acknowledges
that

	 	(i) 	
      The Investor is not a “U.S. Person” as that term is
      defined in Regulation S,

	 	 	 
	 	(ii) 	
      The Investor is located outside the United
  States,

	 	 	 
	 	(iii) 	
      The investor is not aware of any advertisement of any of
      the Notes to be issued hereunder,

	 	 	 
	 	(iv) 	
      The Investor will not acquire the Note as a result of,
      and will not itself engage in, any “directed selling efforts” (as defined
      in Regulation S under the 1933 Act) in the United States in respect of the
      Notes which would include any activities undertaken for
  the

7

	 		
      purpose of, or that could reasonably be expected to have
      the effect of, conditioning the market in the United States for the resale
      of the Notes; provided, however, that the Investor may sell or otherwise
      dispose of the Notes pursuant to registration under the 1933 Act and any
      applicable state securities laws or under an exemption from such
      registration requirements and as otherwise provided herein,

	 	 	 
	 	(v) 	
      The Investor agrees that the Company will refuse to
      register any transfer of the Notes not made in accordance with the
      provisions of Regulation S, pursuant to an effective registration
      statement under the 1933 Act or pursuant to an available exemption from
      the registration requirements of the 1933 Act and in accordance with
      applicable state securities laws, and

	 	 	 
	 	(vi) 	
      The Investor understands and agrees that offers and sales
      of any Note prior to the expiration of a period of one year after the date
      of transfer of the Notes (the “Distribution Compliance Period”),
      shall only be made in compliance with the safe harbor provisions set forth
      in Regulation S, pursuant to the registration provisions of the 1933 Act
      or an exemption therefrom, and that all offers and sales after the
      Distribution Compliance Period shall be made only in compliance with the
      registration provisions of the 1933 Act or an exemption therefrom and in
      each case only in accordance with all applicable securities
  laws;

	 	(i) 	
      No Hedging Transactions. The Investor understands
      and agrees not to engage in any hedging transactions involving the Notes
      prior to the end of the Distribution Compliance Period unless such
      transactions are in compliance with the provisions of the 1933
  Act;

	 	 	 
	 	(j) 	
      Restrictions on Transfer. The Investor hereby
      acknowledges and agrees to the Company making a notation on its records or
      giving instructions to the registrar and transfer agent of the Company in
      order to implement the restrictions on transfer set forth and described
      herein.

	 	 	 
	 	(k) 	
      Legends. It is understood that, except as provided
      below, certificates evidencing the Notes will bear the following or any
      similar legend, as well as the legend required by any state authority if
      required in connection with the issuance of sale of the
  Notes,:

  
    
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
        BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
        “U.S. SECURITIES ACT”) OR OTHER APPLICABLE SECURITIES LAWS.
        THESE SECURITIES HAVE BEEN ACQUIRED FOR 

    

  

8

  
    
      INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE
        AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
        (1) IN ACCORDANCE WITH THE PROVISIONS OF REGULATIONS S, RULE 901 THROUGH
        RULE 905, AND PRELIMINARY NOTES UNDER THE U.S. SECURITIES ACT OR (2) PURSUANT
        TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S.
        SECURITIES ACT OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT.
        HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS
        IN COMPLIANCE WITH THE U.S. SECURITIES ACT. 

    

  

	 	(l) 	
      No General Solicitation. Such Investor did not
      learn of the investment in the Notes as a result of any public advertising
      or general solicitation.

	 	 	 
	 	(m) 	
      Brokers and Finders. No Person will have, as a
      result of the transactions contemplated by the Transaction Documents, any
      valid right, interest or claim against or upon the Company or an Investor
      for any commission, fee or other compensation pursuant to any agreement,
      arrangement or understanding entered into by or on behalf of such
      Investor.

	6. 	
      Conditions to Closing:

	 	 	 	 
		(a) 	
      Conditions to the Investor’s Obligations. The
      obligation of the Investor to purchase the Notes at the Closing is subject
      to the fulfillment to such Investor’s satisfaction, on or prior to the
      Closing Date, of the following conditions, any of which may be waived by
      the Investor

	 	 	 	 
			(i) 	
      The representations and warranties made by the Company in
      Section 4. hereof qualified as to materiality shall be true and correct at
      all times prior to and on the Closing Date, except to the extent any such
      representation or warranty expressly speaks as of an earlier date, in
      which case such representation or Warranty shall be true and correct as of
      such earlier date, and, the representations and warranties made by the
      Company in Section 4. hereof not qualified as to materiality shall be true
      and correct in all material respects at all times prior to and on the
      Closing Date, except to the extent any such representation or warranty
      expressly speaks as of an earlier date, in which case such representation
      or warranty shall be true and correct in all material respects as of such
      earlier date. The Company shall have performed in all material respects
      all obligations and conditions herein required to be performed or observed
      by it on or prior to the Closing Date,

9

	 	(ii) 	
      The Company shall have obtained any and all consents,
      permits, approvals, registrations and waivers necessary or appropriate for
      consummation of the purchase and sale of the Notes, and the consummation
      of the other transactions contemplated by the Transaction Documents, all
      of which shall be in full force and effect, and

	 	 	 
	 	(iii) 	
      No judgment, writ, order, injunction, award or decree of
      or by any court, or judge, justice or magistrate, including any bankruptcy
      court or judge, or any order of or by any governmental authority, shall
      have been issued, and no action or proceeding shall have been instituted
      by any governmental authority, enjoining or preventing the consummation of
      the transactions contemplated hereby or in the other Transaction
      Documents;

	 	(b) 	
      Conditions to Obligations of the Company. The
      Company’s obligation to sell and issue the Notes at the Closing is subject
      to the fulfillment to the satisfaction of the Company on or prior to the
      Closing Date of the following conditions, any of which may be waived by
      the Company

	 	 	 	 
	 		(i) 	
      The representations and warranties made by the Investor
      in Section 5. hereof shall be true and correct in all respects on the
      Closing Date with the same force and effect as if they had been made on
      and as of said date. The Investor shall have performed in all material
      respects all obligations and conditions herein required to be performed or
      observed by them on or prior to the Closing Date, and

	 	 	 	 
	 		(ii) 	
      The Investor shall have paid the Purchase Price to the
      Company.

	 	(c) 	
      Termination of Obligations to Effect Closing;
      Effects.

	 	 	 	 	 
	 		(i) 	
      The obligations of the Company, on the one hand, and the
      Investor, on the other hand, to effect the Closing shall terminate as
      follows:

	 	 	 	 	 
	 			(A) 	
      Upon the mutual written consent of the Company and the
      Investor,

	 	 	 	 	 
	 			(B) 	
      By the Company if any of the conditions set forth in
      Paragraph 6(b) shall have become incapable of fulfillment, and shall not
      have been waived by the Company,

	 	 	 	 	 
	 			(C) 	
      By an Investor (with respect to itself only) if any of
      the conditions set forth in Paragraph 6(a) shall have become incapable of
      fulfillment, and shall not have been waived by the Investor,
  or

10

	 	(D) 	
      By either the Company or the Investor if the Closing has
      not occurred on or prior to May 31, 2007

provided, however, that, except in the
case of clause (i) above, the party seeking to terminate its obligation to
effect the Closing shall not then be in breach of any of its representations,
warranties, covenants or agreements contained in this Agreement or the other
Transaction Documents if such breach has resulted in the circumstances giving
rise to such party’s seeking to terminate its obligation to effect the Closing.

	7. 	
      Covenants and Agreements of the Company:

	 	 	 
		(a) 	
      Reports. The Company will furnish to the Investor
      and/or their assignees such information relating to the Company and its
      Subsidiaries as from time to time may reasonably be requested by the
      Investor and/or their assignees; provided, however, that the Company shall
      not disclose material nonpublic information to the Investor, or to
      advisors to or representatives of the Investor, unless prior to disclosure
      of such information the Company identifies such information as being
      material nonpublic information and provides the Investor, such advisors
      and representatives with the opportunity to accept or refuse to accept
      such material nonpublic information for review and the Investor wishing to
      obtain such information enters into an appropriate confidentiality
      agreement with the Company with respect thereto;

	 	 	 
		(b) 	
      No Conflicting Agreements. The Company will not
      take any action, enter into any agreement or make any commitment that
      would conflict or interfere in any material respect with the Company’s
      obligations to the Investor under the Transaction Documents;

	 	 	 
		(c) 	
      Compliance with Laws. The Company will comply in
      all material respects with all applicable laws, rules, regulations, orders
      and decrees of all governmental authorities;

	 	 	 
		(d) 	
      Security Interest. The Company shall cooperate
      with the Investor in all reasonable respects in connection with the
      establishment and maintenance of the Security Interest. The Company agrees
      to execute such further documents and instruments and to take such further
      actions as may be reasonably necessary to carry out the purposes and
      intent of the Security Interest. The Company shall be responsible for the
      payment of all costs and expenses reasonably incurred by Investor in
      connection with the preparation of any documents, instruments or
      agreements required to create or perfect the Security Interest and for all
      filing fees related thereto; and

11

	 	(e) 	
      Termination of Covenants. The provisions of
      Paragraphs 7(a) through 7(d) shall terminate and be of no further force
      and effect on the date on which the Company’s obligations under the Note
      terminate.

	8. 	
      Survival and Indemnification:

	 	 	 
		(a) 	
      Survival. The representations, warranties,
      covenants and agreements contained in this Agreement shall survive the
      Closing of the transactions contemplated by this Agreement until the
      repayment in full of the Note;

	 	 	 
		(b) 	
      Indemnification. The Company agrees to indemnify
      and hold harmless each Investor and its Affiliates and their respective
      directors, officers, employees and agents from and against any and all
      losses, claims, damages, liabilities and expenses (including without
      limitation reasonable attorney fees and disbursements and other expenses
      incurred in connection with investigating, preparing or defending any
      action, claim or proceeding, pending or threatened and the costs of
      enforcement thereof) (collectively, “Losses”) to which such Person
      may become subject as a result of any breach of representation, warranty,
      covenant or agreement made by or to be performed on the part of the
      Company under the Transaction Documents, and will reimburse any such
      Person for all such amounts as they are incurred by such Person.

	 	 	 
		(c) 	
      Conduct of Indemnification Proceedings. Promptly
      after receipt by a Person (the “Indemnified Person”) of notice of
      any demand, claim or circumstances which would or might give rise to a
      claim or the commencement of any action, proceeding or investigation in
      respect of which indemnity may be sought pursuant to Section 8(b), such
      Indemnified Person shall promptly notify the Company in writing and the
      Company shall assume the defense thereof, including the employment of
      counsel reasonably satisfactory to such Indemnified Person, and shall
      assume the payment of all fees and expenses; provided, however, that the
      failure of any Indemnified Person so to notify the Company shall not
      relieve the Company of its obligations hereunder except to the extent that
      the Company is materially prejudiced by such failure to notify. In any
      such proceeding, any Indemnified Person shall have the right to retain its
      own counsel, but the fees and expenses of such counsel shall be at the
      expense of such Indemnified Person unless: (i) the Company and the
      Indemnified Person shall have mutually agreed to the retention of such
      counsel; or (ii) in the reasonable judgment of counsel to such Indemnified
      Person representation of both parties by the same counsel would be
      inappropriate due to actual or potential differing interests between them.
      The Company shall not be liable for any settlement of any proceeding
      effected without its written consent, which consent shall not he
      unreasonably withheld, but if settled with such consent, or if there be
      a

12

final judgment for the plaintiff, the
Company shall indemnify and hold harmless such Indemnified Person from and
against any loss or liability (to the extent stated above) by reason of such
settlement or judgment. Without the prior written consent of the Indemnified
Person, which consent shall not be unreasonably withheld, the Company shall not
effect any settlement of any pending or threatened proceeding in respect of
which any Indemnified Person is or could have been a party and indemnity could
have been sought hereunder by such Indemnified Party, unless such settlement
includes an unconditional release of such Indemnified Person from all liability
arising out of such proceeding. 

	9. 	
      Miscellaneous:

	 	 	 
		(a) 	
      Successors and Assigns. This Agreement may not be
      assigned by a party hereto without the prior written consent of the
      Company or the Investor, as applicable, provided, however, that an
      investor may assign its rights and delegate its duties hereunder in whole
      or in part to an Affiliate or to a third party acquiring the Notes in a
      private transaction without the prior written consent of the Company,
      after notice duly given by such Investor to the Company. The provisions of
      this Agreement shall inure to the benefit of and be binding upon the
      respective permitted successors and assigns of the parties. Nothing in
      this Agreement, express or implied, is intended to confer upon any party
      other than the parties hereto or their respective successors and assigns
      any rights, remedies, obligations, or liabilities under or by reason of
      this Agreement, except as expressly provided in this Agreement;

	 	 	 
		(b) 	
      Counterparts: Faxes. This Agreement may be
      executed in two or more counterparts, each of which shall be deemed an
      original, but all of which together shall constitute one and the same
      instrument. This Agreement may also be executed via facsimile, which shall
      be deemed an original;

	 	 	 
		(c) 	
      Titles and Subtitles. The titles and subtitles
      used in this Agreement are used for convenience only and are not to be
      considered in construing or interpreting this Agreement;

	 	 	 
		(d) 	
      Notices. Unless otherwise provided, any notice
      required or permitted under this Agreement shall be given in writing and
      shall be deemed effectively given as hereinafter described (i) if given by
      personal delivery, then such notice shall be deemed given upon such
      delivery, (ii) if given by telex or telecopier, then such notice shall be
      deemed given upon receipt of confirmation of complete transmittal, (iii)
      if given by mail, then such notice shall be deemed given upon the earlier
      of (A) receipt of such notice by the recipient or (B) three days after
      such notice is deposited in first class mail, postage prepaid, and (iv) if
      given by an internationally recognized overnight air courier, then such
      notice shall be deemed given

13

one business day after delivery to
such carrier. All notices shall be addressed to the party to be notified at the
address as follows, or at such other address as such party may designate by ten
days’ advance written notice to the other party: 

If to the Company: 

Arkanova Energy Corporation

Suite 300 
21 Waterway
Avenue 
The Woodlands TX 77381 Fax:
281-363-2788 
Attention: President 

If to the Investor:

To the Address for Notice as

provided on the signature page 
hereof. 

	 	(e) 	
      Expenses. The parties hereto shall pay their own
      costs and expenses in connection herewith. In the event that legal
      proceedings are commenced by any party to this Agreement against another
      party to this Agreement in connection with this Agreement or the other
      Transaction Documents, the party or parties which do not prevail in such
      proceedings shall severally, but not jointly, pay their pro rata share of
      the reasonable attorneys’ fees and other reasonable out-of-pocket costs
      and expenses incurred by the prevailing party in such
  proceedings;

	 	 	 
	 	(f) 	
      Amendments and Waivers. Any term of this Agreement
      may be amended and the observance of any term of this Agreement may be
      waived (either generally or in a particular instance and either
      retroactively or prospectively), only with the written consent of the
      Company and the Investor. Any amendment or waiver effected in accordance
      with this Paragraph shall be binding upon each holder of any Notes
      purchased under this Agreement at the time outstanding, each future holder
      of all such Notes, and the Company;

	 	 	 
	 	(g) 	
      Publicity. Except as set forth below, no public
      release or announcement concerning the transactions contemplated hereby
      shall be issued by the Company or the Investor without the prior consent
      of the Company (in the case of a release or announcement by the Investor)
      or the Investor (in the case of a release or announcement by the Company)
      (which consents shall not be unreasonably withheld), except as such
      release or announcement may be required by law or the applicable rules or
      regulations of any securities exchange or securities market, in which case
      the Company or

14

	 		
      the Investor, as the case may be, shall allow the
      Investor or the Company, as applicable, to the extent reasonably
      practicable in the circumstances, reasonable time to comment on such
      release or announcement in advance of such issuance;

	 	 	 
	 	(h) 	
      Severability. Any provision of this Agreement that
      is prohibited or unenforceable in any jurisdiction shall, as to such
      jurisdiction, be ineffective to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions hereof but
      shall be interpreted as if it were written so as to be enforceable to the
      maximum extent permitted by applicable law, and any such prohibition or
      unenforceability in any jurisdiction shall not invalidate or render
      unenforceable such provision in any other jurisdiction. To the extent
      permitted by applicable law, the parties hereby waive any provision of law
      which renders any provision hereof prohibited or unenforceable in any
      respect;

	 	 	 
	 	(i) 	
      Entire Agreement. This Agreement, including the
      exhibits and any disclosure schedules, and the other Transaction Documents
      constitute the entire agreement among the parties hereof with respect to
      the subject matter hereof and thereof and supersede all prior agreements
      and understandings, both oral and written, between the parties with
      respect to the subject matter hereof and thereof;

	 	 	 
	 	(j) 	
      Further Assurances. The parties shall execute and
      deliver all such further instruments and documents and take all such other
      actions as may reasonably be required to carry out the transactions
      contemplated hereby and to evidence the fulfillment of the agreements
      herein contained;

	 	 	 
	 	(k) 	
      Governing Law: Consent to Jurisdiction; Waiver of Jury
      Trial. This Agreement shall be governed by, and construed in
      accordance with, the laws of the State of Texas without regard to the
      choice of law principles thereof. Each of the parties hereto irrevocably
      submits to the exclusive jurisdiction of the Courts of the State of Texas
      for the purpose of any suit, action, proceeding or judgment relating to or
      arising out of this Agreement and the transactions contemplated hereby.
      Service of process in connection with any such suit, action or proceeding
      may be served on each party hereto anywhere in the world by the same
      methods as are specified for the giving of notices under this Agreement.
      Each of the parties hereto irrevocably consents to the jurisdiction of any
      such court in any such suit, action or proceeding and to the laying of
      venue in such court. Each party hereto irrevocably waives any objection to
      the laying of venue of any such suit, action or proceeding brought in such
      courts and irrevocably waives any claim that any such suit, action or
      proceeding brought in any such court has been brought in an inconvenient
      forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL
      BY JURY IN ANY LITIGATION WITH RESPECT TO

15

THIS AGREEMENT AND REPRESENTS THAT
COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER. 

[Remainder of page intentionally left blank.] 

16

IN WITNESS WHEREOF, the parties have executed this
Agreement or caused their duly authorized officers to execute this Agreement as
of the date first above written. 

ARKANOVA ENERGY CORPORATION 

Per: 

          
Authorized Signatory 

THE INVESTOR 

By: 

          
Authorized Signatory 

Print Name: __________________________________________
Print
Title (if applicable): ________________________________

Principal Amount of Note purchased:
____________________________________________________

ADDRESS FOR NOTICE

C/o:
_____________________________________________________
Street:
___________________________________________________
City/State/Zip:
_____________________________________________
Attention:
________________________________________________
Tel:
_____________________________________________________
Fax:
_____________________________________________________

DELIVERY INSTRUCTIONS 
(if different from above)

C/o:
_____________________________________________________
Street:
___________________________________________________
City/State/Zip:
_____________________________________________
Attention:
________________________________________________
Tel:
_____________________________________________________

Exhibit A 

THIS AGREEMENT RELATES TO AN OFFERING OF SECURITIES IN AN
OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN
REGULATION S UNDER THE 1933 ACT) PURSUANT TO REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). NONE OF THE
SECURITIES TO WHICH THIS AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933
ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE
OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS
(AS DEFINED HEREIN EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S
UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY
IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS. IN ADDITION, HEDGING
TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
WITH THE 1933 ACT. 

USD $ ______________________
ARKANOVA ENERGY
CORPORATION 
10% PROMISSORY NOTE 

FOR VALUE RECEIVED, Arkanova Energy Corporation, a
corporation organized and existing under the laws of the State of Nevada (the
“Company”), promises to pay to _______________________________of
_________________________________, the registered holder hereof (the
“Holder”), the principal sum of __________________________________ United
States Dollars on the Maturity Date (as defined below) and to pay interest on
the principal sum outstanding from time to time in arrears at the rate of 10.0 %
per annum (computed on the basis of the actual number of days elapsed and a year
of 365 days), accruing from the date of initial issuance of this Note (the
“Issue Date”), until payment in full of the principal sum has been made
or duly provided for (whether before or after the Maturity Date). 

          This
Note is being issued pursuant to the terms of a Purchase Agreement, dated as of
the date hereof (the “Note Purchase Agreement”), to which the Company and
the Holder (or the Holder’s predecessor in interest) are parties. Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the Note Purchase Agreement. 

          This
Note is subject to the following additional provisions: 

1.        Maturity
Date. The term “Maturity Date” means the date occurring at any time
after July 31, 2007 upon which the Holder demands payment of this Note in
writing. 

2

2.        Prepayment
Provisions. This Note may be prepaid in whole or in part at any time prior
to the Maturity Date, without penalty. Any payment shall be applied as provided
in Section 3. The Company further agrees that in the event that the Company does
a subsequent debt or equity financing for United States Five Million and 00/100
Dollars (USD $5,000,000.00) or greater before the Maturity Date, the Company
will repay the Note plus accrued interest from the proceeds of that financing.

3.        Application of
Payments. Any payment made on account of the Note shall be applied in the
following order of priority: (i) first, to accrued interest through and
including the date of payment, and then (ii) to principal of this Note. 

4.        Default.
The Company shall be in default hereunder if any payment is not made in a timely
manner, or within five days thereafter. 

5.        Manner of
Payments. All payments contemplated hereby to be made “in cash” shall be
made in immediately available good funds of United States of America currency by
wire transfer to an account designated in writing by the Holder to the Company
(which account may be changed by notice similarly given). For purposes of this
Note, the phrase “date of payment” means the date good funds are received in the
account designated by the notice which is then currently effective. 

6.        No Impairment;
Direct Obligation. Subject to the terms of the Note Purchase Agreement, no
provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, and interest on,
this Note at the time, place, and rate, and in the coin or currency, as herein
prescribed. This Note is a direct obligation of the Company. 

7.        Limited
Recourse. No recourse shall be had for the payment of the principal of, or
the interest on, this Note, or for any claim based hereon, or otherwise in
respect hereof, against any incorporator, shareholder, officer or director, as
such, past, present or future, of the Company or any successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such liability being,
by the acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released. 

8.        Restrictions on
Resale. The Holder of the Note, by acceptance hereof, agrees that this Note
is being acquired for investment and that such Holder will not offer, sell or
otherwise dispose of this Note except under circumstances which will not result
in a violation of the Securities Act of 1933, as amended, or any applicable
state blue sky or foreign laws or similar laws relating to the sale of
securities. 

9.        Notices.
Any notice given by any party to the other with respect to this Note shall be
given in the manner contemplated by the Note Purchase Agreement in the Section
entitled “Notices.” 

3

10.      Applicable Laws.
This Note shall be governed by and construed in accordance with the laws of the
State of Texas. Each of the parties consents to the exclusive jurisdiction of
the Courts of the State of Texas in connection with any dispute arising under
this Agreement and hereby waives, to the maximum extent permitted by law, any
objection, including any objection based on forum non coveniens,
to the bringing of any such proceeding in such jurisdictions. To the extent
determined by such court, the Company shall reimburse the Holder for any
reasonable legal fees and disbursements incurred by the Holder in enforcement of
or protection of any of its rights under any of this Note. 

11.      Jury Trial
Waiver. The Company and the Holder hereby waive a trial by jury in any
action, proceeding or counterclaim brought by either of the Parties hereto
against the other in respect of any matter arising out of or in connection with
this Note. 

12.      Events of
Default. The following shall constitute an “Event of Default”: 

	 	(a) 	
      Default in Payment. The Company shall default in
      the payment of principal or interest on this Note or any other amount due;
      or

	 	 	 
	 	(b) 	
      Breach of Representation or Warranty. Any of the
      representations or warranties made by the Company herein, in the Note
      Purchase Agreement or any of the other Transaction Agreements shall be
      false or misleading in any material respect at the time made; or

	 	 	 
	 	(c) 	
      Assignment for Creditors. The Company shall (1)
      make an assignment for the benefit of creditors or commence proceedings
      for its dissolution; or (2) apply for or consent to the appointment of a
      trustee, liquidator or receiver for its or for a substantial part of its
      property or business; or

	 	 	 
	 	(d) 	
      Appointment of Trustee. A trustee, liquidator or
      receiver shall be appointed for the Company or for a substantial part of
      its property or business without its consent; or

	 	 	 
	 	(e) 	
      Court Control. Any governmental agency or any
      court of competent jurisdiction at the instance of any governmental agency
      shall assume custody or control of the whole or any substantial portion of
      the properties or assets of the Company; or

	 	 	 
	 	(f) 	
      Bankruptcy Proceedings. Bankruptcy,
      reorganization, insolvency or liquidation proceedings or other proceedings
      for relief under any bankruptcy law or any law for the relief of debtors
      shall be instituted by or against the Company.

          If
an Event of Default shall have occurred, then, or at any time thereafter, and in
each and every such case, unless such Event of Default shall have been waived in
writing by the Holder (which waiver shall not be deemed to be a waiver of any
subsequent 

4

default) at the option of the Holder and in the Holder’s sole
discretion, the Holder may consider this Note immediately due and payable (and
the Maturity Date shall be accelerated accordingly), without presentment,
demand, protest or notice of any kinds, all of which are hereby expressly
waived, anything herein or in any note or other instruments contained to the
contrary notwithstanding, and interest shall accrue on the total amount due (the
“Default Amount”) on the date of the Event of Default (the “Default
Date”) at the rate of 16% per annum or the maximum rate allowed by law,
whichever is lower, from the Default Date until the date payment is made, and
the Holder may immediately enforce any and all of the Holder’s rights and
remedies provided herein or any other rights or remedies afforded by law. 

13.      Covenants of the
Company. The Company covenants and agrees that, so long as any principal of,
or interest on, this Note shall remain unpaid, unless the Holder shall otherwise
consent in writing, it will comply with the following terms: 

	 	(a) 	
      Reporting Requirements. The Company will furnish
      to the Holder or make publicly available:

	 	 	 	 
	 		(i) 	
      as soon as possible, and in any event within ten (10)
      days after obtaining knowledge of the occurrence of (A) an Event of
      Default, (B) an event which, with the giving of notice or the lapse of
      time or both, would constitute an Event of Default, or (C) a material
      adverse change in the condition or operations, financial or otherwise, of
      the Company, taken as whole, the written statement of the Chief Executive
      Officer or the Chief Financial Officer of the Company, setting forth the
      details of such Event of Default, event or material adverse
  change;

	 	 	 	 
	 		(ii) 	
      promptly after the commencement thereof, notice of each
      action, suit or proceeding before any court or other governmental
      authority or other regulatory body or any arbitrator as to which there is
      a reasonable possibility of a determination that would (A) materially
      impact the ability of the Company to conduct its business, (B) materially
      and adversely affect the business, operations or financial condition of
      the Company, or (C) impair the validity or enforceability of the Note or
      the ability of the Company to perform their obligations under the
    Note.

	 	(b) 	
      Compliance with Laws. The Company will comply, in
      all material respects with all applicable laws, rules, regulations and
      orders, except to the extent that noncompliance would not have a Material
      Adverse Effect upon the business, operations or financial condition of the
      Company taken as a whole.

	 	 	 
	 	(c) 	
      Preservation of Existence. The Company will
      maintain and preserve its existence.

5

	 	(d) 	
      Maintenance of Properties. The Company will
      maintain and preserve, all of its material properties which are necessary
      in the proper conduct of its business in good working order and condition,
      ordinary wear and tear excepted, and comply, at all times with the
      provisions of all material leases to which it is a party as lessee or
      under which it occupies property, so as to prevent any material forfeiture
      or material loss thereof thereunder.

	 	 	 
	 	(e) 	
      Maintenance of Insurance. The Company will
      maintain, with responsible and reputable insurers, insurance with respect
      to its properties and business, in such amounts and covering such risks,
      as is carried generally in accordance with sound business practice by
      companies in similar businesses in the same localities in which the
      Company is situated.

	 	 	 
	 	(f) 	
      Keeping of Records and Books of Account. The
      Company will keep adequate records and books of account, with complete
      entries made in accordance with generally accepted accounting principles,
      reflecting all of its financial and other business
  transactions.

14.      Qualification. In the
event for any reason, any payment by or act of the Company or the Holder shall
result in payment of interest which would exceed the limit authorized by or be
in violation of the law of the jurisdiction applicable to this Note, then
ipso facto the obligation of the Company to pay interest or perform such
act or requirement shall be reduced to the limit authorized under such law, so
that in no event shall the Company be obligated to pay any such interest,
perform any such act or be bound by any requirement which would result in the
payment of interest in excess of the limit so authorized. In the event any
payment by or act of the Company shall result in the extraction of a rate of
interest in excess of a sum which is lawfully collectible as interest, then such
amount (to the extent of such excess not returned to the Company) shall, without
further agreement or notice between or by the Company or the Holder, be deemed
applied to the payment of principal, if any, hereunder immediately upon receipt
of such excess funds by the Holder, with the same force and effect as though the
Company had specifically designated such sums to be so applied to principal and
the Holder had agreed to accept such sums as an interest-free prepayment of this
Note. If any part of such excess remains after the principal has been paid in
full, whether by the provisions of the preceding sentences of this Section or
otherwise, such excess shall be deemed to be an interest-free loan from the
Company to the Holder, which loan shall be payable immediately upon demand by
the Company. The provisions of this Section shall control every other provision
of this Note. 

[Remainder of page intentionally left blank.] 

6

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed by an officer thereunto duly authorized this
______ day of ________________, 2007. 

ARKANOVA ENERGY CORPORATION

Per: 

           
Authorized Signatory 

Exhibit B 

WIRE INSTRUCTIONS 

	 	Pay Through: 	Wachovia Bank, N.A., New York 
	 	SWIFT Code: 	PNBPUS3NNYC 
	 	Fedwire ABA #: 	026005092 
	 	  	  
	 	Beneficiary Bank: 	Bank of Montreal 
	 	  	Vancouver Main Office 
	 	  	First Bank Tower 
	 	  	595 Burrard Street 
	 	  	Vancouver B.C. 
	 	  	Canada V7X 1L7 
	 	  	Attention Michelle McCrorie 
	 	  	Tel: 604.665-7374 
	 	SWIFT Code: 	BOFMCAM2 
	 	  	  
	 	Beneficiary: 	Arkanova Energy Corporation 
	 	Account Number: 	0004 4629 504<pre>

Exhibit 10.1
                    INDEPENDENT CONTRACTOR AGREEMENT

This Agreement is entered into as of January 17, 2007 (the "Effective Date"), by
and between Trimark Associates Inc. ("Company") a California corporation, and
Conectisys Corp., a California corporation with principal business offices in 89
Valencia, CA 91355. ("Conectisys") (Collectively the "Parties").

1.      Term of Agreement. This Agreement will become effective on the date
stated above, and will continue in effect until the Services provided for in
this Agreement have been fully performed or until this Agreement is terminated
as provided below (the "Term").

2.      Services of Independent Contractor. Independent Contractor agrees to
provide, at its own expense, employees or subcontractors ("Consultants") to
perform the services described in individual Task Orders, which shall be
attached as Exhibits to this Agreement, as further defined by Company from time-
to-time during the Term of this Agreement (the "Services"). Independent
Contractor represents that it has Consultants with the qualifications and skills
necessary to perform the Services, and that all Services will be performed in a
competent, professional manner, in accordance with the standards of care, skill
and diligence observed by similar professionals performing such services.
Independent Contractor further agrees to assign Consultants that match the
requirements set by Company, and Independent Contractor will honor all
reasonable requests by Company to remove and replace any Consultant upon request
by the Company. Independent Contractor has discretion for the manner in which
the work under this Agreement will be performed, subject to Company's acceptance
of the work performed. Independent Contractor will determine the method,
details, and means of performing the Services, and will furnish all materials,
equipment and supervisory services necessary to perform the Services.
Independent Contractor represents and warrants that all Services will be
performed in accordance with all applicable laws. Independent Contractor will
work with Company to schedule Consultant's holidays and discretionary time off
at least four weeks in advance. If the Consultant becomes unavailable because of
death, ill health, or injury, Independent Contractor will replace the Consultant
within a reasonable time.

3.      Compensation and Reimbursement of Expenses. The Company shall pay
Independent Contractor for the Services performed pursuant to the terms set
forth in Task Orders to this Agreement. Company will reimburse Independent
Contractor for all Consultants' reasonable out-of-pocket expenses supported by
adequate documentation for costs of travel (airfare, cab fare, auto rental or
local mileage) and accommodations incurred as a result of, and in the course of,
performing Services for the Company ("Expenses"). Consultant shall request and
obtain prior written approval of the Company for any lodging Expense exceeding
$125 per night (rack rate, taxes excluded) and any air travel. Independent
Contractor shall invoice Company on a monthly basis and shall provide receipts
for any expenses above $25 for all Expenses to be reimbursed. Independent
Contractor agrees to submit such invoices and receipts within sixty (60) days
after the Services were performed and/or the Expenses were incurred. Independent
Contractor further agrees that the Company will not have any liability
whatsoever for any Services performed or Expenses incurred if Independent
Contractor fails to submit an invoice and/or receipt to the Company within the
sixty (60) day period. Company shall invoice the client for reimbursement of
such Expenses in its next monthly invoice. Company shall pay Independent
Contractor for such Expenses within ten (10) days after Company receives
reimbursement for such Expenses from the client.

4.      Relationship of the Parties. Independent Contractor is entering into
this Agreement as, and shall continue to be, an independent contractor. Under no
circumstances shall Independent Contractor or any Consultant become an employee,
partner, agent or principal of the Company while this Agreement is in effect.
Subject to the terms and conditions of Sections 7 and 11 of this Agreement,
Independent Contractor and each Consultant may represent, perform services for,
and contract with as many additional clients, persons or companies as
Independent Contractor sees fit. Independent Contractor understands and agrees
that Consultants are not entitled to the rights or benefits afforded to the
Company's employees, including disability or unemployment insurance, worker's
compensation, medical insurance, sick leave, or any other employment benefit.
Independent Contractor is responsible for providing, at its own expense,
disability, worker's compensation, unemployment and other insurance, as well as
all licenses and permits usual or necessary for Independent Contractor and its
Consultants to perform the Services. Independent Contractor shall provide
orientation to its Consultants explaining the relationship of the parties as
agreed to herein.

5.      Company's Cooperation. Company agrees to comply with all reasonable
requests for, and to provide access to, all documents and information reasonably
necessary to the performance of Independent Contractor's duties under this
Agreement.

6.      Independent Contractor's Tax Obligations. Independent Contractor is
responsible for paying when due all income taxes, including estimated taxes,
incurred as a result of the compensation paid by Company to Independent
Contractor. On request, Independent Contractor will provide the Company with
written records demonstrating that Independent Contractor has fulfilled all of
its legal obligations, including timely payment of all taxes and estimated taxes
for each Consultant employed by Independent Contractor. Independent Contractor
agrees to indemnify the Company for any claims, costs, losses, fees, penalties,
interest, or damages suffered by the Company resulting from the Independent
Contractor's failure to comply with this provision and for all claims by any
Consultant against Company.

7.      Confidentiality and Nondisclosure of Company Information.

(a)     Confidential Information. As used in this Agreement, Confidential
Information means all information and materials of Company (or any information
or materials provided in confidence by a third party) disclosed, directly or
indirectly, either orally or in writing, to Independent Contractor or
Consultant, including all business and marketing plans, financial data,
compensation information, pricing and cost information, client and prospective
client lists and client and prospective client-related information, product and
software development information, systems integration and technical information,
know-how, programming, models, strategies, analyses, databases, methods,
techniques and processes. Without limiting the generality of the foregoing,
Confidential Information includes all computer software, source code, object
code, software specifications, user interfaces, graphic displays, operating
manuals, and databases; information and materials relating to computer software,
features or enhancements now existing or under development or consideration; and
confidential customer, financial and business information. Independent
Contractor acknowledges that information need not be labeled as "confidential"
to qualify as Confidential Information.

(b)     Exclusion. Confidential Information does not include information that
Independent Contractor can demonstrate: (a) is now or hereafter becomes, through
no act or failure to act on the part of Independent Contractor or Consultant,
generally known to the public; (b) was known by Independent Contractor or
Consultant prior to receiving such information or materials from Company; or (c)
is independently developed by Independent Contractor or Consultant without
using, incorporating, referencing, recreating or relying upon any of the
Confidential Information.

(c)     Nondisclosure and Nonuse. Independent Contractor acknowledges that,
while performing Services for the Company, Independent Contractor and Consultant
will have access to and be provided with Confidential Information. Independent
Contractor and Consultant will at all times during and after the term of this
Agreement hold in strict confidence and not directly or indirectly disclose or
use, or assist or facilitate any other person to disclose or use, any
Confidential Information. Notwithstanding the foregoing, Independent Contractor
understands that Independent Contractor and Consultant may use Confidential
Information only to the extent necessary to perform the Services set forth in
the Task Orders to this Agreement. If at any time Independent Contractor or
Consultant becomes aware of any possibility that Confidential Information is at
risk of being publicly disclosed, Independent Contractor will immediately give
written Notice to the Company so that reasonable efforts can be made to maintain
the secrecy of the Confidential Information. Independent Contractor will require
each Consultant to sign the Confidentiality and Non-Disclosure Agreement
attached hereto as Exhibit B prior to disclosing any Confidential Information to
Consultant.

8.      Inventions and Original Works. Unless otherwise specified in a Task
Order, Independent Contractor and Company agrees that all right, title, and
interest in and to any and all software, original works of authorship,
developments, concepts, improvements, designs, discoveries, inventions, ideas,
trademarks or trade secrets, whether or not patentable or registrable under
copyright or similar laws (collectively referred to as "Inventions"), which
exist prior to this Agreement remain the property of the Independent Contractor.
Independent Contractor agrees that any Inventions which have originated by the
Independent Contractor for purposes of fulfilling this Agreement, which
Independent Contractor or Consultant may solely or jointly conceive or develop
or reduce to practice, or cause to be conceived or developed or reduced to
practice, during the term of this Agreement shall be and are hereby mutually
assigned to the Company, or its designee, and Independent Contractor except for
any Inventions which: (1) Independent Contractor or Consultant developed
entirely on its own time without using the Company's equipment, supplies,
facilities, or Confidential Information; (2) are unrelated to the Company's
business; and (3) do not result from any work the Independent Contractor or
Consultant performed for the Company. Independent Contractor further agrees to
assist Company, at Company's expense, to execute all documents and take all
actions to vest title in Company and to effect the assignment upon request and
to obtain patents or copyrights for any Inventions, including but not limited
to: (1) providing, if requested, all data, plans, specifications, descriptions,
documentation, and other information; (2) requiring its Consultants to execute,
if requested, all applications, oaths, assignments and all other instruments and
papers which Company shall deem necessary; and (3) assisting Company in
completing any applications or registrations relating to such Inventions.
Independent Contractor acknowledges and agrees that the decision whether or not
to commercialize or market any Invention is within the Company's sole discretion
and that no royalty or other compensation of any kind will be due to Independent
Contractor or Consultant as a result of the Company's efforts to commercialize
or market any such Invention. Nothing contained in this Agreement shall be
construed to apply to Independent Contractor's Inventions that existed prior to
the Effective Date of this Agreement, and all such Inventions remain the
property of Independent Contractor. If Independent Contractor performs services
or delivers work product to Company that includes material not assigned to
Company pursuant to this Section, Independent Contractor grants Company a fully-
paid, perpetual, non-exclusive, unlimited license to modify, copy and use all
such material.

9.      Returning Company Documents and Computer Files. Upon termination of this
Agreement, and upon request of Company, Independent Contractor agrees to deliver
to the Company (and not keep in Independent Contractor's or Consultant's
possession, recreate, copy or deliver to anyone else) any and all computer
files, software, e-mail messages, notes, memoranda, reports, records, data,
spreadsheets, presentations, proposals, lists, correspondence, specifications,
drawings, blueprints, sketches, equipment, devices, and any other materials,
documents or property, including any reproductions of all such items, belonging
to, obtained by or prepared by Independent Contractor or its Consultants during
the term of this Agreement or otherwise belonging to the Company, its successors
or assigns.

10.     Non-Solicitation of Company Employees. During the term of this Agreement
and for a period of one year after the termination of this Agreement for any
reason, Company and Independent Contractor agree that neither Company,
Independent Contractor nor any Consultant will solicit, induce, recruit or
encourage directly or indirectly (nor will Company, Independent Contractor or
Consultant direct, encourage or assist anyone else to solicit, induce, recruit
or encourage) any of the employees of the Company or Independent Contractor to
terminate their employment with Company or Independent Contractor or to work
elsewhere without prior written consent from the Company or the Independent
Contractor.

11.     Non-Interference with Company's Prospective Business Relationships.
Independent Contractor and Consultant understand that performing Services
pursuant to this Agreement may require Independent Contractor or Consultant to
contact directly or otherwise establish business relationships with individuals
and entities that are customers, vendors, business partners or clients of the
Company, and that Independent Contractor or Consultant may become aware of the
identity of such persons and of the Company's Confidential Information related
to such persons. Independent Contractor and Consultant understand that the
Company has made efforts to maintain the secrecy and confidentiality of such
Confidential Information, which includes among other things, proprietary and
confidential technical, marketing, sales and other business information about
the Company's customers, vendors, business partners and clients. Independent
Contractor and Consultant understand and agree that such Confidential
Information provides the Company with a competitive advantage in establishing
and maintaining existing and prospective business relationships and that
disclosure or use of such Confidential Information would unfairly impair or
interfere with the Company's ability to conduct its business profitably and
would result in irreparable harm to the Company. Independent Contractor and
Consultant agree that during the term of this Agreement and for a period of one
year immediately following the termination of the Agreement for any reason,
neither Independent Contractor nor Consultant will directly or indirectly
solicit or divert, or attempt to solicit or divert, from the Company, any
customers, vendors, business partners or clients, nor will Independent
Contractor or Consultant directly or indirectly interfere with or assist any
other person in interfering with the existing or prospective contracts,
arrangements, or business relationships of the Company with its customers,
vendors, business partners and clients.

12.     Insurance. Independent Contractor shall maintain the following minimum
insurance coverage during the term of this Agreement:

(a)     Worker's Compensation. Independent Contractor agrees to provide worker's
compensation insurance for its employees, subcontractors and agents, and agrees
to hold harmless and indemnify the Company for any and all claims arising out of
any injury, disability, or death of any of Independent Contractor's employees,
subcontractors or agents.

(b)     Liability Insurance. Independent Contractor agrees to maintain an
Employer's Liability Policy of insurance in the minimum amount of $1,000,000, a
Commercial General Liability Policy of $1,000,000 and an Automobile Liability
Policy of $1,000,000.

13.     Indemnity. Independent Contractor agrees to indemnify, defend, and hold
Company free and harmless from all claims, demands, losses, costs, expenses,
obligations, liabilities, damages, recoveries, and deficiencies, including
interest, penalties, attorneys' fees, and costs, that Company may incur or
suffer as a result of or related to Independent Contractor or its Consultant's
willful misconduct, negligence, breach or failure to perform any of the
representations, warranties or obligations contained in this Agreement by
Independent Contractor or Consultant.

14.     Assignment. Neither this Agreement nor any duties or obligations under
this Agreement may be assigned by Independent Contractor or Company without the
prior written consent of the other Party.

15.     Termination of Agreement.

(a)     Expiration of Agreement. Unless otherwise terminated as provided in this
Agreement, this Agreement will continue in effect until the Services described
in the Task Orders to this Agreement have been fully and completely performed
and shall then terminate unless renewed in writing by both parties.

(b)     Termination on Notice. Notwithstanding any other provision of this
Agreement, either Party may terminate this Agreement at any time and for any
reason or for no reason by giving fifteen (15) days' written Notice to the other
Party.

16.     General Provisions.

(a)     Notices. All notices, requests, demands and other communications
hereunder ("Notices") must be in writing and shall be deemed to have been fully
given and received when delivered personally, when transmitted by facsimile, one
business day after being deposited for next-day delivery with a nationally
recognized overnight delivery service, or three days after being mailed by first
class mail, charges and postage prepaid, to the Party to receive such Notice at
such Party's address set forth below or any other address that such Party may
specify by Notice to the other Party.

(b)     Severability. The invalidity or unenforceability of any provision, word,
phrase, clause, sentence, paragraph or section hereof shall in no way affect the
validity or enforceability of any other provision, word, phrase, clause,
sentence, paragraph or section hereof, and any such invalid or unenforceable
provision that is overbroad in scope, duration or coverage, shall be deemed
narrowed to the broadest term permitted by applicable law and shall be enforced
as narrowed. If one or more of the provisions in this Agreement is deemed
invalid or unenforceable, then the remaining provisions will continue in full
force and effect.

(c)     Governing Law and Forum Selection. This Agreement shall be construed and
interpreted according to the laws of the State of California not including,
however, rules relating to choice or conflicts of law. Any dispute arising out
of or relating in any way to the subject matter of this Agreement shall solely
be venued in Sacramento, California, and the parties hereby irrevocably submit
to the jurisdiction and venue of a court in Sacramento, California having
subject matter jurisdiction.

(d)     Attorneys' Fees. If any dispute between or among either of the Parties
hereto or any of their respective affiliates should result in litigation, the
prevailing Party or Parties in such dispute shall be entitled to recover from
the other Party or Parties all reasonable fees, costs and expenses of enforcing
any right of the prevailing Party or Parties, including, without limitation,
reasonable attorneys' fees and expenses, all of which shall be deemed to have
accrued on the commencement of such action and shall be paid whether or not such
action is prosecuted to judgment. Any judgment or order entered in such action
shall contain specific provision for the recovery of attorneys' fees and costs
incurred in enforcing such judgment and an award of prejudgment interest from
the date of the breach at the maximum rate allowed by law. For the purposes of
this Section 16, (a) attorneys' fees shall include, without limitation, fees
incurred in post-award or post-judgment motions, contempt proceedings,
garnishment, levy, and debtor and third Party examinations, discovery, and
bankruptcy litigation, and (b) prevailing Party shall mean the Party that is
determined in the proceeding to have prevailed or who prevails by dismissal,
default or otherwise.

(e)     Successors. This Agreement shall inure to the benefit of and bind the
Company and the Independent Contractor, and their respective successors,
assigns, legatees, devisees and personal representatives.

(f)     Entire Agreement. This Agreement contains the entire agreement of the
Company and the Independent Contractor with respect to the subject matter
contained herein and supersedes all prior negotiations, correspondence,
understandings and agreements between them with respect to the subject matter
hereof, including any other Confidentiality Agreements, Independent Contractor
Agreements or similar agreements that may have previously been executed by the
parties.

(g)     Survival. All agreements, representations, warranties and
acknowledgments contained in Sections 6, 7, 8, 9, 10, 11 and 13 shall survive
any termination of this Agreement.

(h)     Written Modifications. This Agreement may only be amended with the
written consent of the parties, and no oral waiver or amendment shall be
effective under any circumstances whatsoever.

THE DULY AUTHORIZED REPRESENTATIVES OF THE PARTIES ACKNOWLEDGE AND AGREE THAT
THEY HAVE CAREFULLY READ AND UNDERSTAND ALL OF THE FOREGOING AND HAVE EXECUTED
THIS AGREEMENT EFFECTIVE AS OF THE DATE FIRST WRITTEN ABOVE.

Trimark Associates Inc.         CONECTISYS CORPORATION
193 Blue Ravine Road #120       24307 Magic Mountain Pkwy, Suite #41
Folsom, CA 95630                Valencia, CA 91355

By: /S/ MARK MOROSKY            By: /S/ ROBERT A. SPIGNO
------------------------------  ---------------------------------
Print: Mark Morosky             Print: Robert A. Spigno
Title:  President               Title: CEO

EXHIBIT A

FIRST TASK ORDER

1.      Description of Services.

Project Feasibility and Evaluation: Complete a project feasibility assessment
including the location of all electric meters, base stations and necessary
repeaters to form a network of meters available to be directly interrogated from
the meter reading systems at Trimark's office in Folsom. Identify the particular
physical and electrical configurations at each meter location including voltage
levels, form factor and existing communications strategy (if any). Also included
as a product of the assessment shall be a detailed project plan, deployment
schedule and total cost estimates.

Project Management: Provide Project Management for Trimark related to the
Westlands Water District Wireless Electric Meter Reading Project (WEMR).
Services to include, but not necessarily limited to; (1) at the direction of
Trimark management, provide oversight and project management of the WEMR
project, (2) briefing and reporting WEMR project status to Company, (3) maintain
cost reporting and control during the WEMR Project, (4) report to company the
design and engineering requirements of the equipment and software necessary to
accomplish the Project objectives and (5) (In a subsequent task order) organize
and supervise the installation of the equipment and associated software at each
meter, base station and repeater location.

2.      Contractor's Qualifications. Independent Contractor will assign
Consultants to perform the Services, and Independent Contractor represents and
warrants that Consultants have the following required qualifications:

o      Experience in project management and developing wireless communications
       networks and related computer systems and software applications

o       Developing business processes and procedures

o       Managing vendor and client relations

o       Engineering expertise related to electricity metering systems and meter
        data acquisition systems

3.      Rates. For the services performed by Conectisys for on this project,

Company shall pay:

             Project Manager:   $ 135 / Hour

Senior Electrical Technician:   $   95 / Hour

             Design Engineer:   $   90 / Hour

           Software Engineer:   $   90 / Hour

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]