EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the " AGREEMENT "), made and entered into as of this 6 ^th day of October 2006, by and between Universal Energy Corp., a Delaware corporation (the " CORPORATION "), and Kevin Tattersall (the " EXECUTIVE ").

WITNESSETH THAT:

WHEREAS, the Corporation desires to employ the Executive in the capacity hereinafter stated, and  the Executive desires to enter into the employ of the Corporation in such capacity for the period and on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is hereby covenanted and agreed by the Corporation and the Executive as follows:

1. Employment Period .  The Corporation hereby agrees to employ the Executive as its Chief Exploration Officer, in such capacity, agrees to provide services to the Corporation for the period beginning on October 6, 2006 and ending October 6, 2008 (the " TERMINATION DATE ") (or such later date as may be agreed to by the parties within 120 days prior to the Termination Date) (the " EMPLOYMENT PERIOD ").
2. Performance of Duties . The Executive agrees that during the Employment Period,  while he is employed by the Corporation, he shall devote his full time,  energies and talents exclusively to serving in the capacity of Chief Exploration Officer  of  the  Corporation  in  the best  interests  of  the Corporation,  and  to  perform  duties assigned to his by the Board of Directors  faithfully,  efficiently  and  in  a  professional  manner.  The Executive shall devote his working time and attention as he deems appropriate to the business and affairs of the Company (excluding any vacation and sick leave to which the Executive is entitled), render such services to the best of his ability, and use his reasonable best efforts to promote the interests of the Company. It shall not be a violation of this Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions, and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive's responsibilities as an employee of the Company in accordance with this Agreement.

Specifically,  as  Chief Exploration Officer,  you will be responsible for supporting the identification and evaluation of new business  opportunities  such  as  new  property acquisition or merger opportunities, supporting both near-term  and  long-range marketing activities,  and  the  oversight  and  evaluation of the company's top level  managers. Your responsibility will be to  management  and  the  Board  of Directors,  and  as  such, policy and direction  from  the  board  will  flow  through  you  to the company.

3. Compensation .  Subject to the terms and conditions of this Agreement, during  the Employment  Period, the Executive shall be compensated by the Corporation  for  his services  as  follows:
4. 1. He shall receive $60,000 per year beginning October 6, 2006. The commencement of the payments will require approval by the Board of Directors of the Company. Executive shall be solely responsible for all income taxes, payroll taxes and other amounts imposed on Executive by reasons of any cash or non-cash compensation and benefits provided to Executive pursuant to this Agreement.
   2. Restricted Stock Grant. The Company hereby grants to the Executive 325,000 shares of the common stock of the Company that is currently traded on the Over the Counter Bulletin Board under the symbol UVEC. The stock is restricted as defined by the Securities Act of 1933, as amended.   
   3. Vesting.             The restricted stock issued will vest over a period of two years (24 equal monthly installments) beginning with date hereof. Vesting is contingent upon your continued employment with the Company. Any remaining unvested stock at the time of termination or resignation from the Company will be forfeited by the Executive.
5. Compensation Due Upon Termination .  The  Executive's  right  to compensation  for  periods after  the  date  his  employment with the Corporation  terminates shall be determined in the accordance with the following:
6. 1. Discharge Without Cause .  If  the  Corporation  terminates  the Executive's employment  under  this Agreement without "cause" (as defined  Below),  the Executive shall be entitled to receive one month  base  salary.  Should the Executive be terminated under this provision (without cause) within the last three months of the Corporate accounting year (now currently the calendar year) the employee will also be entitled to any potential bonus based on paragraph (3) (b) above on a Pro-Rata Basis, e.g. 10 months of employment would equal 10/12 of a year or approximately 83.3% of the bonus the Executive could have earned if employed for the entire year.
   2. Voluntary Resignation .  The Corporation shall have no obligation to  make  payments  to  the  Executive  in  accordance  with  the provisions of paragraph 3 for periods after the date on which the Executive's employment with the Corporation terminates due to the Executive's  voluntary  resignation.
   3. Discharge  for Cause . The Corporation shall have no obligation to make payments to the Executive in accordance with the provisions of paragraph 3 for periods after the Executive's employment with the Corporation is terminated on account of the Executive's discharge for cause. The Executive shall be considered discharged for "cause" if he is discharged by the Corporation on account of the  occurrence  of  one  or  more  of  the  following  events:
   4. 1. the Executive  becomes  habitually  addicted  to  drugs  or alcohol;
      2. the  Executive  discloses  confidential  information  in violation  of  paragraph  5;
      3. the Executive  engages  in  competition  in  violation of paragraph  5;
      4. the  Corporation  is  directed by regulatory or governmental authorities  to terminate the employment of the Executive or the Executive engages in activities that cause actions to be taken  by regulatory or governmental authorities that have a material  or  adverse  effect  on  the  Corporation;
      5. the Executive is indicted for a felony (other than a felony resulting from  a  traffic  violation);
      6. the Executive  disregards  his duties under this Agreement
      7. any  event of misconduct involving serious moral turpitude to the extent that, in the reasonable judgment of the Board of  Directors, the Executive's credibility and reputation no longer  conform  to  the standard  of  the  Corporation's executives;  or
      8. the  Executive  commits  an  act  of  fraud  against  the Corporation  or  violates  a  duty  of  loyalty  to  the Corporation.
   5. Disability .  The  Corporation  shall  have  no obligation to make payments  to  the  Executive in accordance with the provisions in paragraph 3 for periods after the date the Executive'