Document:

LANDBANK GROUP, INC.

                            2006 STOCK INCENTIVE PLAN

                         STOCK OPTION EXERCISE AGREEMENT

     This Stock Option Exercise Agreement (the "Exercise Agreement") is made and
entered into as of , 2006 (the "Effective  Date") by and between Landbank Group,
Inc., a Delaware corporation (the "Company"), and the purchaser named below (the
"Purchaser").  Capitalized  terms not  defined  herein  shall have the  meanings
ascribed to them in the Landbank's 2006 Stock Incentive Plan (the "Plan") or the
Stock Option Agreement.

          Participant:                       ___________________________________

          Social Security Number:            ___________________________________

          Address:                           ___________________________________

                                             -----------------------------------

          Option Shares Being Purchased:     ___________________________________

          Exercise Price Per Share:          ___________________________________

          Date of Grant:                     ___________________________________

          Expiration Date:                   ___________________________________

          Type of Stock Option:              [  ] Incentive Stock Option

                                             [X] Nonqualified Stock Option

     1. Exercise of Option.

         1.1.  Exercise.  Pursuant  to  exercise  of that  certain  option  (the
"Option") granted to Purchaser under the Plan and the Stock Option Agreement and
subject to the terms and conditions of this Exercise Agreement, Purchaser hereby
purchases from the Company, and the Company hereby sells to Purchaser, the Total
Number of Shares set forth above (the "Shares") of the Company's Common Stock at
the Exercise Price Per Share set forth above (the "Exercise Price").  As used in
this Exercise Agreement,  the term "Shares" refers to the Shares purchased under
this Exercise Agreement and includes all securities  received (a) in replacement
of the Shares,  (b) as a result of stock  dividends or stock splits with respect
to the Shares, and (c) all securities received in replacement of the Shares in a
merger, recapitalization, reorganization or similar corporate transaction.

         1.2.  Title to Shares.  The exact  spelling of the name(s)  under which
Purchaser will take title to the Shares is: ____________________________________
_________________________.

<PAGE>

         Purchaser desires to take title to the Shares as follows:

         [  ]     Individual, as separate property

         [  ]     Husband and wife, as community property

         [  ]     Joint Tenants

         [  ]     Other; please specify: _______________________________________

         1.3.  Payment.  Purchaser hereby delivers payment of the Exercise Price
in cash (by check),  whether or not acquired through a loan from the Company, in
the amount of $___________, receipt of which is acknowledged by the Company.

     2. Delivery.

         2.1. Deliveries by Purchaser.  Purchaser hereby delivers to the Company
(a) this Exercise Agreement, (b) if Purchaser is married, a consent of spouse in
the form of Exhibit A attached  hereto executed by Purchaser's  spouse,  (c) the
Exercise Price and payment or other provision for any applicable tax obligations
in the form of a check, or a secured full recourse  promissory note ("Note") and
(d) if the  Purchaser  has provided a Note for  exercise of the Shares,  a stock
pledge agreement executed by Purchaser  ("Pledge  Agreement") and two (2) copies
of a blank  stock  power  ("Stock  Power"),  both  executed  by  Purchaser  (and
Purchaser's spouse, if any).

         2.2. Deliveries by the Company. Upon its receipt of the Exercise Price,
payment  or other  provision  for any  applicable  tax  obligations  and all the
documents to be executed and delivered by Purchaser to the Company under Section
2.1 hereof, the Company will issue a duly executed stock certificate  evidencing
the Shares in the name of  Purchaser,  provided  however,  if the  Purchaser has
provided a Note for  exercise of the  Shares,  such stock  certificate  shall be
placed  in escrow as  provided  in  Section  10  hereof  to  secure  payment  of
Purchaser's obligation under the Note.

     3.  Representations and Warranties of Purchaser.  Purchaser  represents and
warrants to the Company that:

         3.1. Agrees to Terms of the Plan.  Purchaser has received a copy of the
Plan and the Stock Option  Agreement,  has read and understands the terms of the
Plan, the Stock Option Agreement and this Exercise  Agreement,  and agrees to be
bound by their terms and conditions.  Purchaser  acknowledges  that there may be
adverse  tax  consequences  upon  exercise of the Option or  disposition  of the
Shares,  and that Purchaser  should consult a tax advisor prior to such exercise
or disposition.

         3.2.  Purchase for Own Account for Investment.  Purchaser is purchasing
the Shares for Purchaser's own account for investment purposes only and not with
a view to, or for sale in connection  with, a distribution  of the Shares within
the meaning of the Securities Act. Purchaser has no present intention of selling
or otherwise disposing of all or any portion of the Shares and no one other than
Purchaser has any beneficial ownership of any of the Shares.

         3.3. Access to Information. Purchaser has had access to all information
regarding  the  Company  and  its  present  and  prospective  business,  assets,
liabilities  and  financial  condition  that  Purchaser   reasonably   considers
important in making the decision to purchase the Shares, including the Company's
most recent  balance  sheet and income  statement,  and  Purchaser has had ample

                                       2
<PAGE>

opportunity to ask questions of the Company's  representatives  concerning  such
matters and this investment.

         3.4.  Understanding  of Risks.  Purchaser  is fully  aware of:  (a) the
highly  speculative  nature of the  investment in the Shares;  (b) the financial
hazards  involved;  (c) the lack of liquidity of the Shares and the restrictions
on  transferability  of the Shares (e.g., that Purchaser may not be able to sell
or  dispose  of the  Shares  or use  them  as  collateral  for  loans);  (d) the
qualifications and backgrounds of the management of the Company; and (e) the tax
consequences of investment in the Shares. Purchaser is capable of evaluating the
merits and risks of this investment,  has the ability to protect Purchaser's own
interests in this transaction and is financially capable of bearing a total loss
of this investment.

         3.5. No General  Solicitation.  At no time was Purchaser presented with
or  solicited by any  publicly  issued or  circulated  newspaper,  mail,  radio,
television or other form of general  advertising or  solicitation  in connection
with the offer, sale and purchase of the Shares.

     4. Compliance with Securities Laws. Purchaser  understands and acknowledges
that the Shares have not been  registered  with the SEC under the Securities Act
and that,  notwithstanding  any other provision of the Stock Option Agreement to
the  contrary,  the  exercise of any rights to purchase  any Shares is expressly
conditioned  upon  compliance  with the Securities Act and all applicable  state
securities  laws.  Purchaser  agrees to  cooperate  with the  Company  to ensure
compliance with such laws.

     5. Restricted Securities.

         5.1. No Transfer  Unless  Registered or Exempt.  Purchaser  understands
that  Purchaser  may not transfer any Shares  unless such Shares are  registered
under the Securities Act or qualified under  applicable state securities laws or
unless,  in  the  opinion  of  counsel  to the  Company,  exemptions  from  such
registration and qualification requirements are available. Purchaser understands
that only the Company may file a  registration  statement  with the SEC and that
the  Company  is  under  no  obligation  to do so with  respect  to the  Shares.
Purchaser  has  also  been  advised  that  exemptions  from   registration   and
qualification  may not be available or may not permit  Purchaser to transfer all
or any of the Shares in the amounts or at the times proposed by Purchaser.

         5.2.  SEC Rule 144. In  addition,  Purchaser  has been advised that SEC
Rule 144  promulgated  under the Securities  Act, which permits  certain limited
sales of unregistered securities, is not presently available with respect to the
Shares and, in any event,  requires that the Shares be held for a minimum of one
(1) year, and in certain cases two (2) years, after they have been purchased and
paid for (within the meaning of Rule 144).  Purchaser  understands that Rule 144
may indefinitely restrict transfer of the Shares so long as Purchaser remains an
"affiliate" of the Company or if "current public  information" about the Company
(as defined in Rule 144) is not publicly available.

         5.3.  SEC Rule 701.  If the Shares are issued  pursuant to SEC Rule 701
promulgated  under the Securities Act, the Shares may become freely tradeable by
non-affiliates  (under limited  conditions  regarding the method of sale) ninety
(90) days after the first  sale of Common  Stock of the  Company to the  general
public pursuant to a registration statement filed with and declared effective by
the SEC, subject to the lengthier market standoff agreement contained in Section
7 hereof or any other  agreement  entered  into by  Purchaser.  Affiliates  must
comply with the provisions (in addition to the holding period  requirements)  of
Rule 144.

                                       3
<PAGE>

     6. Restrictions on Transfers.

         6.1.  Disposition  of Shares.  Purchaser  hereby agrees that  Purchaser
shall  make no  disposition  of the  Shares  (other  than as  permitted  by this
Exercise Agreement) unless and until:

             (a)  Purchaser  shall have  notified  the  Company of the  proposed
disposition  and provided a written  summary of the terms and  conditions of the
proposed disposition;

             (b) Purchaser  shall have complied  with all  requirements  of this
Exercise Agreement applicable to the disposition of the Shares;

             (c)  Purchaser   shall  have  provided  the  Company  with  written
assurances,  in form and substance satisfactory to counsel for the Company, that
(i) the proposed  disposition does not require  registration of the Shares under
the Securities Act or (ii) all appropriate actions necessary for compliance with
the  registration  requirements  of the  Securities Act or of any exemption from
registration  available  under the Securities Act (including Rule 144) have been
taken; and

             (d)  Purchaser   shall  have  provided  the  Company  with  written
assurances, in form and substance satisfactory to the Company, that the proposed
disposition will not result in the  contravention  of any transfer  restrictions
applicable to the Shares pursuant to the provisions of Section 4 hereof.

         6.2.  Transferee  Obligations.  Each person (other than the Company) to
whom the  Shares  are  transferred  by means of one of the  permitted  transfers
specified  in this  Exercise  Agreement  must,  as a condition  precedent to the
validity  of such  transfer,  acknowledge  in writing to the  Company  that such
person  is bound  by the  provisions  of this  Exercise  Agreement  and that the
transferred  Shares are subject to (a) both the Company's  Repurchase Option, if
any, and (b) the market  stand-off  provisions of Section 7 hereof,  to the same
extent such Shares would be so subject if retained by the Purchaser.

                                       4
<PAGE>

     7.  Market  Standoff  Agreement.  In the case of the  initial  underwritten
public  offering by the Company of shares of Common  Stock,  if the officers and
directors  of the  Company  agree not to effect  any  disposition  of any equity
security of the Company or of any security  convertible  into or exchangeable or
exercisable for any equity security of the Company (in each case,  other than as
part of such underwritten public offering),  Purchaser agrees to the same during
the one  hundred  eighty  (180)  day  period  (or such  longer  period as may be
reasonably  requested  by the  underwriter  of such  offering)  beginning on the
effective  date  of  such  registration  statement  (except  as a part  of  such
registration),  provided  that  Purchaser  has received  written  notice of such
registration prior to such effective date; provided, however, that any waiver of
the foregoing  restriction  by the Company or the Company's  underwriters  shall
apply to all persons subject to such  restrictions  pro rata based on the number
of shares of Company capital stock owned.

     8. Rights as a  Stockholder.  Subject to the terms and  conditions  of this
Exercise  Agreement,  Purchaser  will have all of the rights of a stockholder of
the Company  with  respect to the Shares from and after the date that Shares are
issued to Purchaser until such time as Purchaser disposes of the Shares.

     9. Escrow. If the Purchaser has provided a Note for exercise of the Shares,
as security for  Purchaser's  faithful  performance of this Exercise  Agreement,
Purchaser  agrees,   immediately  upon  receipt  of  the  stock   certificate(s)
evidencing the Shares, to deliver such  certificate(s),  together with the Stock
Powers  executed by Purchaser and by Purchaser's  spouse,  if any (with the date
and number of Shares  left  blank),  to the  Secretary  of the  Company or other
designee of the Company (the "Escrow  Holder"),  who is hereby appointed to hold
such  certificate(s) and Stock Powers in escrow and to take all such actions and
to  effectuate  all such  transfers  and/or  releases  of such  Shares as are in
accordance with the terms of this Exercise Agreement.  Purchaser and the Company
agree  that  Escrow  Holder  will not be liable  to any  party to this  Exercise
Agreement  (or to any other  party) for any actions or omissions  unless  Escrow
Holder is grossly  negligent  or  intentionally  fraudulent  in carrying out the
duties of Escrow  Holder under this Exercise  Agreement.  Escrow Holder may rely
upon any letter,  notice or other document executed with any signature purported
to be genuine  and may rely on the  advice of counsel  and obey any order of any
court with respect to the transactions  contemplated by this Exercise Agreement.
The  Shares  will  remain in escrow so long as they are  subject  to the  Pledge
Agreement.

     10. Restrictive Legends and Stop-Transfer Orders.

         10.1. Legends.  Purchaser  understands and agrees that the Company will
place the legends set forth below or similar legends on any stock certificate(s)
evidencing  the Shares,  together with any other legends that may be required by
state  or  U.S.   Federal   securities   laws,  the  Company's   Certificate  of
Incorporation or Bylaws,  any other agreement  between Purchaser and the Company
or any agreement between Purchaser and any third party:

         THE  SECURITIES  REPRESENTED  HEREBY  HAVE  NOT  BEEN
         REGISTERED  UNDER  THE  SECURITIES  ACT OF  1933,  AS
         AMENDED  (THE   "SECURITIES   ACT"),   OR  UNDER  THE
         SECURITIES LAWS OF CERTAIN STATES.  THESE  SECURITIES
         ARE SUBJECT TO  RESTRICTIONS ON  TRANSFERABILITY  AND
         RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
         PERMITTED  UNDER THE  SECURITIES  ACT AND  APPLICABLE
         STATE  SECURITIES  LAWS,  PURSUANT TO REGISTRATION OR
         EXEMPTION  THEREFROM.  INVESTORS SHOULD BE AWARE THAT
         THEY MAY BE REQUIRED TO BEAR THE  FINANCIAL  RISKS OF
         THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE

                                       5
<PAGE>

         ISSUER OF THESE  SECURITIES MAY REQUIRE AN OPINION OF
         COUNSEL  IN FORM AND  SUBSTANCE  SATISFACTORY  TO THE
         ISSUER TO THE EFFECT  THAT ANY  PROPOSED  TRANSFER OR
         RESALE IS IN COMPLIANCE  WITH THE  SECURITIES ACT AND
         ANY APPLICABLE STATE SECURITIES LAWS.

         THE  SHARES   REPRESENTED  BY  THIS  CERTIFICATE  ARE
         SUBJECT TO CERTAIN  RESTRICTIONS ON PUBLIC RESALE AND
         TRANSFER, INCLUDING THE RIGHT OF FIRST REFUSAL OPTION
         HELD BY THE  ISSUER  AND/OR  ITS  ASSIGNEE(S)  AS SET
         FORTH IN A STOCK OPTION  EXERCISE  AGREEMENT  BETWEEN
         THE ISSUER AND THE ORIGINAL  HOLDER OF THESE  SHARES.
         SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS  INCLUDING
         THE RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES
         OF THESE SHARES.

         10.2.  Stop-Transfer  Instructions.  Purchaser  agrees that,  to ensure
compliance with the restrictions imposed by this Exercise Agreement, the Company
may issue  appropriate  "stop-transfer"  instructions  to its transfer agent, if
any, and if the Company  transfers its own securities,  it may make  appropriate
notations to the same effect in its own records.

         10.3.  Refusal to  Transfer.  The Company  will not be required  (a) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Exercise Agreement or (b) to treat as
owner of such  Shares,  or to accord the right to vote or pay  dividends  to any
purchaser or other transferee to whom such Shares have been so transferred.

                                       6
<PAGE>

     11. Tax  Consequences.  PURCHASER  UNDERSTANDS  THAT  PURCHASER  MAY SUFFER
ADVERSE TAX  CONSEQUENCES AS A RESULT OF PURCHASER'S  PURCHASE OR DISPOSITION OF
THE SHARES. PURCHASER REPRESENTS: (a) THAT PURCHASER. HAS CONSULTED WITH ANY TAX
ADVISOR  THAT  PURCHASER  DEEMS  ADVISABLE  IN  CONNECTION  WITH THE PURCHASE OR
DISPOSITION  OF THE SHARES AND (b) THAT  PURCHASER IS NOT RELYING ON THE COMPANY
FOR ANY TAX ADVICE.

     12. Compliance with Laws and Regulations.  The issuance and transfer of the
Shares will be subject to and  conditioned  upon  compliance  by the Company and
Purchaser with all applicable state, local and U.S. Federal laws and regulations
and  with  all  applicable  requirements  of any  stock  exchange  or  automated
quotation  system on which the Company's Common Stock may be listed or quoted at
the time of such issuance or transfer.

     13. Successors and Assigns.  The Company may assign any of its rights under
this Exercise Agreement. This Exercise Agreement shall be binding upon and inure
to the  benefit of the  successors  and assigns of the  Company.  Subject to the
restrictions  on transfer  herein set forth,  this  Exercise  Agreement  will be
binding upon Purchaser and Purchaser's heirs, executors,  administrators,  legal
representatives, successors and assigns.

     14. Governing Law; Severability.  This Exercise Agreement shall be governed
by and construed in accordance with the laws of the State of California  without
giving  effect to its  conflict  of law  principles.  If any  provision  of this
Exercise   Agreement  is  determined  by  a  court  of  law  to  be  illegal  or
unenforceable,  then such  provision  will be  enforced  to the  maximum  extent
possible and the other provisions will remain fully effective and enforceable.

     15.  Notices.  Any notice  required to he given or delivered to the Company
shall be in writing and addressed to the  Corporate  Secretary of the Company at
its principal corporate offices. Any notice required to be given or delivered to
Purchaser  shall  be in  writing  and  addressed  to  Purchaser  at the  address
indicated  above or to such other  address as Purchaser may designate in writing
from time to time to the Company.  All notices shall be deemed effectively given
upon  personal  delivery,  (a) five (5) days after  deposit in the United States
mail by certified or registered  mail (return  receipt  requested),  (b) two (2)
business  day  after  its  deposit  with  any  return  receipt  express  courier
(prepaid), or (c) one (1) business day after transmission by facsimile.

     16.  Further  Instruments.  The  parties  agree  to  execute  such  further
instruments  and to take such further  action as may be reasonably  necessary to
carry out the purposes and intent of this Exercise Agreement.

     17.  Headings.  The captions and headings of this  Exercise  Agreement  are
included for ease of reference only and will be disregarded in  interpreting  or
construing this Exercise Agreement.

     18.  Entire  Agreement.  The Plan,  the  Stock  Option  Agreement  and this
Exercise  Agreement,  together with all Exhibits thereto,  constitute the entire
agreement and understanding of the parties with respect to the subject matter of
this Exercise Agreement,  and supersede all prior understandings and agreements,
whether oral or written, between the parties hereto with respect to the specific
subject matter hereof. If there is any  inconsistency  between the terms of this
Exercise  Agreement  and the terms of the Plan and Stock Option  Agreement,  the
terms of the Plan and Stock Option Agreement shall govern and control.

                                       7
<PAGE>

     In witness  whereof,  the Company has caused this Exercise  Agreement to be
executed in triplicate by its duly authorized  representative  and Purchaser has
executed  this  Exercise  Agreement  in  triplicate  as of the  Effective  Date,
indicated above.

                                            LANDBANK GROUP, INC.

                                            By:
                                                --------------------------------

                                            Printed Name:
                                                          ----------------------

                                            Title:
                                                   -----------------------------

                                            PARTICIPANT

                                            (Signature)

                                            Printed Name:
                                                          ----------------------

                                       8
<PAGE>

                                    EXHIBIT A

                                 Spouse Consent

<PAGE>

                                 SPOUSE CONSENT

     The undersigned  spouse of (the  "Purchaser")  has read,  understands,  and
hereby approves the Stock Option Exercise  Agreement (the  "Agreement")  between
Purchaser and Landbank Group, Inc., a Delaware  corporation (the "Company").  In
consideration  of the  Company's  granting my spouse the right to  purchase  the
Shares  as set  forth in the  Agreement,  the  undersigned  hereby  agrees to be
irrevocably  bound by the  Agreement  and  further  agrees  that  any  community
property  interest  I may have in the  Shares  shall  similarly  be bound by the
Agreement. The undersigned hereby appoints Purchaser as my attorney-in-fact with
respect to any amendment or exercise of any rights under the Agreement.

                                            Dated:
                                                   -----------------------------

                                            SPOUSE

                                            (Signature)

                                            Printed Name:
                                                          ----------------------

                                            Address:
                                                     ---------------------------

                                       2Exhibit 10.1

                       THIRD AMENDMENT TO PROMISSORY NOTE

         As of the 10th day of November,  2006,  each of Cubic  Energy,  Inc., a
Texas corporation, and Tauren Exploration,  Inc., a Texas corporation,  agree to
this third amendment of a promissory note.

         WHEREAS,  on February 6, 2006,  Cubic  Energy,  Inc.  ("Cubic")  made a
promissory note in favor of Tauren Exploration, Inc. ("Tauren") in the amount of
US$1,300,000.00 (the "NOTE");

         WHEREAS,  the NOTE was  amended on or about March 30,  2006;  and on or
about June 27, 2006;

         WHEREAS,  Cubic and  Tauren  each  agree to amend the NOTE as  provided
herein; and

         WHEREAS, other than as amended herein, the NOTE, as previously amended,
shall remain in full force and effect.

         NOW THEREFORE,  FOR ALL GOOD AND VALUABLE CONSIDERATION,  including but
not limited to all  consideration  recited  herein,  the sufficiency of which is
hereby acknowledged, Cubic and Tauren agree as follows:

1.           Pursuant to Section  1.1.  of the Note,  the  maturity  date of all
principal  and  interest due under the Note is amended to now read "on or before
October 5, 2007", in the stead of "on or before July 15, 2007".

2.          The first  clause of the first  sentence of the third  paragraph  in
Section 2.2.1.  of the Note is now amended to read "At any time after October 5,
2007", in the stead of "At any time after July 15, 2007"

3.          Other than as amended  herein,  the Note,  and all of its provisions
and covenants, and as previously amended, shall remain in full force and effect.

         EXECUTED AS OF THE DATE WRITTEN ABOVE.

Cubic Energy, Inc.                                      Tauren Exploration, Inc.

________________________                                ________________________
By:                                                     By:
Its:                                                    Its:

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