----

| ·   | annual base compensation of $20,000; |
|--------------------|--------------------------------------|

| ·   | $2,000 per regularly scheduled board meeting attended; |
|--------------------|--------------------------------------------------------|

| ·   | $750 per regularly scheduled audit committee meeting attended; |
|--------------------|----------------------------------------------------------------|

| ·   | $25,000 per year for service as the Audit Committee chairman; |
|--------------------|---------------------------------------------------------------|

| ·   | $20,000 per year for service as the Compensation Committee chairman; |
|--------------------|----------------------------------------------------------------------|

| ·   | $20,000 per year for service as the Nomination and Governance Committee chairman; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | an annual grant of 6,000 shares of restricted common stock (12,000 for the chairman of the Nomination and Governance Committee); and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | reimbursement of reasonable out-of-pocket expenses incurred in attending board meetings. |
|--------------------|------------------------------------------------------------------------------------------|

| David N. Pierce   | $367,500 |
|-------------------|----------|
| Thomas B. Lovejoy | 262,500  |
| Andrew W. Pierce  | 283,500  |
| Jerzy B. Maciolek | 283,500  |
| Clay Newton       | 225,000  |

| ·   | the Company’s various stock option and incentive plans, under which stock options or other equity compensation may be granted from time to time as determined by the board of directors, and which may be based on factors such as the level of base pay and individual performance; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | short-term incentive compensation, which is determined from time to time by the board of directors, under which cash bonuses in varying amounts may be granted based on the Company and individual achieving predetermined goals; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company’s 401(k) profit-sharing plan and other health and benefit plans generally available to Company employees; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company’s Executive Royalty Plan under which a 3% royalty pool, proportionally reduced to our working interest, on our oil and gas revenues from wells, excluding all wells and geologic structures for which we had proved and probable reserves at the end of 2009, is allocated among our executives, including our Named Executive Officers as follows: |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name              | Percent of Participation in Royalty Plan |
|-------------------|------------------------------------------|
|              |                                     |
| David N. Pierce   | 0.5283%                                  |
| Thomas B. Lovejoy | 0.3019                    |
| Andrew W. Pierce  | 0.4717                    |
| Jerzy B. Maciolek | 0.4717                              |
| Clay Newton       | 0.2830                         |
|              |                                     |
| Total             | 3.0000%                                  |

| ·   | other compensation arrangements as determined by the board of directors. |
|--------------------|--------------------------------------------------------------------------|

----