Exhibit 10.3

SUPPLEMENTAL FARM- OUT ASSIGNMENT

THIS FARM-OUT ASSIGNMENT made and entered into this the 10th day of December,
2007, by and between K & D ENERGY, a Kentucky Partnership, by Partners, Danny
Thomasson, of P. O. Box 360, Bremen, Kentucky 42325, and Keith Conn, 85 Tyson
Lane, Dunmore, Kentucky 42339, being all partners in the partnership,
hereinafter ASSIGNOR and KY USA ENERGY, INC., C/O Steve Eversole, 321 Somerset
Road, London, Kentucky 40741, hereinafter ASSIGNEE;

WITNESSETH: Whereas, ASSIGNOR owns certain oil and gas leases in West Central,
Kentucky, more specifically described hereinafter and desire to do this Farm-Out
Assignment to ASSIGNEE to form a core basis for a publicly traded company so
that money can be raised to fully develop the project from which ASSIGNOR will
receive a carried working interest and by their signatures below the parties
agree to this Assignment on the following terms and conditions:

WHEREAS, ASSIGNOR has previously assigned the three (3) leases described below
to ASSIGNEE, but these three (3) leases were about to expire; and

WHEREAS, ASSIGNOR has acquired a new lease to replace those that were about to
expire and does now desire to assign the new leases under the same terms and
conditions as set out in the previous assignment;

NOW, THEREFORE, for and in consideration of the above terms and conditions, and
one dollar ($1.00) plus other good and valuable considerations, the receipt and
sufficiency of which are acknowledged, the ASSIGNOR does hereby bargain,
transfer and assign to ASSIGNEE the following described Oil and Gas Leases:

Lease Name
 
County
 
Lease Book/Page
 
Date
 
Acreage
                     
Lakefield/Taylor
 
Muhlenberg
 
94/734
 
10/18/07
 
130
 
Freda/Jeff Johnston
 
Todd
 
22/697
 
10/8/07
 
323
 
Jeff Johnston
  
Christian
  
43/464
  
10/8/07
  
326
  

 
 

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TO HAVE AND TO HOLD unto ASSIGNEE, its successors and assigns, a 75% Net Revenue
Interest as the 100% Working Interest in above described leases, subject to all
the aforesaid terms and conditions, as well as all terms and conditions in the
original leases with only such Warranty of title as ASSIGNOR actually possesses,
subject to all terms and conditions of a prior Assignment dated October 4, 2007
and recorded as follows:

Todd County
Lease Book 22, Page ______
Muhlenberg County
Lease Book 94, Page 697
Christian County
Lease Book 43, Page 484

ASSIGNOR does warrant that there are no undisclosed material defects in the
above leases of which ASSIGNOR is aware and the ASSIGNOR has taken no action or
made no omissions in actions that would render any of the above leases invalid
or of no effect.

WITNESS the signatures of the parties hereto on this the ____ day of October,
2007.

 
K & D ENERGY
     
BY:
       
DANNY THOMASSON, Partner
     
BY:
       
KEITH CONN, Partner
   
By: Danny Thomas son, POA
 
ASSIGNOR
     
KY USA ENERGY, INC.
     
BY:
       
STEVE EVERSOLE
   
ASSIGNEE

 
 

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COMMONWEALTH OF KENTUCKY

COUNTY OF____________________

SIGNED AND ACKNOWLEDGED to before me by K & D ENERGY, by and through its
partner, DANNY THOMASSON, who personally appeared before me and known to me or
satisfactorily identified by me, to be his free act and deed, on this the 10th
day of October, 2007.

__________________________________
NOTARY PUBLIC
My Commission Expires:_____________

COMMONWEALTH OF KENTUCKY

COUNTY OF ______________

SIGNED AND ACKNOWLEDGED to before me by K & D ENERGY, by and through its
partner, KEITH CONN, who personally appeared before me and known to me or
satisfactorily identified by me, to be his free act and deed, on this the 10th
day of October, 2007.

__________________________________
NOTARY PUBLIC
My Commission Expires:____________

COMMONWEALTH OF KENTUCKY

COUNTY OF ______________

SIGNED AND ACKNOWLEDGED to before me by KY USA ENERGY, INC. by and through STEVE
EVERSOLE, who personally appeared before me or satisfactorily identified by me,
to be his free act and deed, on this the 10th day of October, 2007.

 
 

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___________________________________
NOTARY PUBLIC,
My Commission Expires:

THIS INSTRUMENT PREPARED BY:

BASIL LAW FIRM
231 West Main Street
Glasgow, Kentucky 42141
TELEPHONE: 270-651-9822
FAX: 270-651-8026

BY:
     
DANNY J. BASIL
 

My Documents,GG; Contracts; Farm-Out Assignment, K & D Energy   
 
 
 

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