April 26, 2012 Australian-Canadian Oil Royalties Limited Ely Sakhai Post Office Box 1629 Cisco, Texas 76437 Re: Transaction Cost Sharing – Terra Nova Farm-Out Gentlemen:Transaction Cost Sharing Agreement • May 15th, 2012 • Holloman Energy Corp • Crude petroleum & natural gas
In connection with Sections 2.1 and 2.4(a) of the Farm-in Agreement among Holloman Energy Corporation (“Holloman”), Eli Sakhai (“Sakhai”), Australian-Canadian Oil Royalties Ltd. (“ACOR”), and Terra Nova Minerals Inc. (“Terra Nova”), dated April __, 2012, (the "Farm-in Agreement"), Terra Nova is obligated to pay Holloman an aggregate cash amount of $350,000 (the “Funds”). Although the Funds are unrestricted, Holloman intends to utilize these proceeds to offset transaction costs related to the pursuit, support and finalization of the Farm-In Agreement (“Transaction Costs”). Without limiting the foregoing, the Transaction Costs are expected to include legal fees, consulting fees, commissions, engineering costs and such other costs as may be incurred for these purposes.
