Document:

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                                  EXHIBIT 10.6

                 LETTER OF CREDIT AND SECURITY DEPOSIT AGREEMENT

     THIS LETTER OF CREDIT AND SECURITY DEPOSIT AGREEMENT (this "Agreement") is
made as of September 9, 2005, by and between TABB Realty, LLC, a Michigan
limited liability company ("Borrower"), and PNC Bank, National Association, its
successors and assigns ("Lender").

     A. Contemporaneously with this Agreement, Borrower has executed and
delivered its Promissory Note (the "Note") to Lender evidencing Lender's loan to
Borrower in the amount of $100,000,000.00 (the "Loan").

     B. The Note is secured by, among other security: (i) the Security
Instruments (as defined in the Note) encumbering certain property located in
Jefferson County, Alabama, Hillsborough County, Florida, Rapides Parish,
Louisiana, Champaign County, Illinois, Hampden County, Massachusetts, Monroe
County, Michigan, Wayne County, Michigan, Shelby County, Ohio, Allen County,
Ohio, Medina County, Ohio, Dallas County, Texas and Harris County, Texas
(collectively, the "Property"); and (ii) the Other Security Documents (as
defined in the Security Instruments). The Note, the Security Instruments and the
Other Security Documents are hereinafter collectively referred to as the "Loan
Documents".

     C. The Property is comprised of 14 separate sites. Thirteen of the sites
are leased by the Borrower, as Landlord, to Plastipak Packaging, Inc.
("Plastipak"), as Tenant and one site is leased by the Borrower, as Landlord to
Clean Tech, Inc. ("CleanTech"), as Tenant (hereinafter collectively the
"Tenants"), pursuant to 14 separate Lease Agreements (collectively the "Leases"
and individually a "Lease").

     D. Pursuant to the Leases, Tenants have collectively, in lieu of a cash
security deposit, agreed to deliver to Borrower as Landlord a $1,000,000.00
letter of credit, (the "Tenant Letter of Credit") which Tenant Letter of Credit
has on or prior to the date hereof been transferred to Lender.

     E. Lender requires, as a condition of the Loan, that Borrower so transfer
the Tenant Letter of Credit to Lender, designating Lender as Beneficiary, which
Tenant Letter of Credit is to be held, used and released as provided in this
Agreement.

     NOW, THEREFORE, in consideration of the foregoing, the covenants and
conditions contained in this Agreement and other good and valuable
consideration, the receipt and legal sufficiency of which are hereby
acknowledged, Borrower and Lender hereby agree as follows:

     1. Delivery of Funds. All sums from time to time deposited with Lender
through draws against the Letter of Credit (as defined below) in connection with
this Agreement are hereinafter collectively referred to as the "Funds." The
Funds shall be held, used and released by Lender in accordance with the terms
and conditions of this Agreement. Lender (or a designated representative of
Lender) shall have the sole right to make withdrawals of the Funds.

     2. Agreement for Delivery of Letter of Credit and Transfer Form.

     (a) Concurrently with the execution of this Agreement, Borrower

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shall deliver to Lender the original unconditional, transferable, irrevocable
Tenant Letter of Credit and an executed transfer form directing Comerica Bank to
designate Lender as Beneficiary under the Tenant Letter of Credit along with any
applicable transfer fee due Comerica Bank, a copy of which Tenant Letter of
Credit is attached hereto as Exhibit A. The Tenant Letter of Credit shall, inter
alia (1) be in an amount of at least $1,000,000.00, (2) provide that it shall
automatically renew annually, unless written notice is received by Lender at
least sixty (60) days prior to the then current expiration date; (3) permit a
draw upon presentation of a draft accompanied by a statement signed by an
individual purporting to be an officer of Lender or its assignee stating that
the beneficiary is entitled to draw under the Tenant Letter of Credit because
any Tenant has defaulted under any Lease; (4) permit partial draws; (5) permit a
draw upon presentation of a draft accompanied by a statement signed by an
individual purporting to be an officer of Lender or its assignee stating that
the beneficiary is entitled to draw under the Tenant Letter of Credit because
the Tenant Letter of Credit has not been renewed or extended at least sixty (60)
days prior to its then current expiration date. Borrower hereby acknowledges
that, except as provided in paragraph 2(b) below: (1) the Tenant Letter of
Credit shall at no time be construed to be within the meaning of Funds (although
funds drawn under the Tenant Letter of Credit may be held as provided
hereinafter), and (2) except as set forth in Section 4 hereunder, the proceeds
of the Tenant Letter of Credit shall not be made available at any time to
Borrower.

     (b) The Tenant Letter of Credit shall be for an initial period of not less
than one (1) year and shall automatically renew annually, unless written notice
is received by Lender, at least sixty (60) days prior to the expiration of the
Tenant Letter of Credit, without any requirement of notice or demand by Lender
until the Lease Expiration Date. Upon Lender's receipt of the sixty (60) day
notice that the Tenant Letter of Credit will not be automatically renewed,
Lender shall provide a copy of same to Borrower, at which time Borrower and
Tenant shall have fifteen (15) business days from Lender's receipt of said
notice to provide a replacement Tenant Letter of Credit in form and content
acceptable to Lender and subject to the same terms and conditions herein
relating to the initial Tenant Letter of Credit issued. In the event Borrower
and/or Tenant fail to provide an acceptable replacement Tenant Letter of Credit
as set forth above, Lender shall have the unconditional right to draw against
the entire amount of the Tenant Letter of Credit prior to the expiration
thereof, the proceeds of which shall be held by Lender as Funds. The failure of
(i) the issuing financial institution to honor a draw request of Lender which
complies with the draw requirements of the Tenant Letter of Credit, or (ii) the
Borrower and/or Tenant to provide an acceptable Tenant Letter of Credit shall
constitute an Event of Default (as such term is defined in Section 6 hereunder).
The initial Tenant Letter of Credit and any replacement Tenant Letter of Credit
shall be deemed as the "Tenant Letter of Credit" unless the context otherwise
indicates. Upon any transfer of the Tenant Letter of Credit from Lender and/or
any successor in interest of Lender to any assignee or transferee, Borrower
shall pay within three (3) days from demand any transfer fee

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imposed by the issuing bank and shall execute any and all documents necessary to
effectuate such transfer.

     The Tenant Letter of Credit shall be maintained in full force and effect
throughout the term of the Loan and shall be maintained by Borrower in
accordance with the terms of the Leases. Lender agrees that the Tenant Letter of
Credit shall be drawn by Lender only upon compliance with the conditions set
forth in the Leases for application of security deposits.

     3. Security Interest; Deposit of Funds. In order to secure Borrower's
repayment of the Note and performance of all other covenants and conditions
required on the part of Borrower to be observed or performed hereunder and under
the other Loan Documents, Borrower hereby pledges to and grants to Lender a
continuing security interest in all proceeds and Funds derived from any Lender
draw against the Tenant Letter of Credit. Until expended or applied as above
provided, the Tenant Letter of Credit and all proceeds and Funds derived thereby
and therefrom shall constitute additional security for the Indebtedness (as
defined in the Security Instruments). The Funds shall not constitute a trust
fund and may be commingled with other monies held by Lender. Unless otherwise
required by applicable law, no earnings or interest on the Funds shall be
payable to Borrower even if Lender or its servicer is paid a fee and/or receives
interest or other income in connection with the deposit or placement of such
fund.

     4. Satisfaction of Loan and Return of Tenant Letter of Credit. Subject to
Borrower's compliance with the following terms and conditions, as determined by
Lender in its sole discretion, Lender shall deliver the Funds and the Tenant
Letter of Credit, to the extent it then exists, to Borrower, with instructions
to the issuing bank that Borrower be named as Beneficiary, or transfer the
remaining Funds to Borrower:

     (a)  Borrower shall have provided a written request to Lender for the
          delivery and transfer of the Tenant Letter of Credit to Borrower, or
          the transfer of the remaining Funds to Borrower; and

     (b)  Borrower has repaid the Debt (as defined in the Note) and all amounts
          due and owing under the Loan Documents in full.

     4A. Draw Upon Tenant Default under the Lease. Upon either (i) Borrower
providing written notice to Lender that a default has occurred under any Lease
entitling a draw upon the Tenant Letter of Credit, or (ii) upon Lender
determining that a default has occurred under any Lease entitling a draw upon
the Tenant Letter of Credit; Lender shall request a draw under the Tenant Letter
of Credit on behalf of Borrower and shall hold the proceeds thereof in escrow
hereunder as additional security for the entire term of the Loan. Upon the
occurrence of an Event of Default under the Loan Documents, Lender may utilize
the proceeds from the Tenant Letter of Credit in accordance with the terms of
Section 6 hereunder.

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     5. Restriction on Disbursement. Lender shall have no duty or obligation to
disburse the Funds except in accordance with this Agreement and only upon
satisfaction of all obligations of Borrower in connection therewith.

     6. Default by Borrower. Upon the occurrence and during the continuation of
an Event of Default (as defined in the Security Instruments) and further
provided that a default has occurred under any of the Leases entitling Lender to
draw upon the Tenant Letter of Credit, Lender shall have the right, but not the
obligation, to disburse and apply the Funds and/or proceeds of the Tenant Letter
of Credit to the satisfaction of any of Borrower's obligations hereunder or
under any of the Loan Documents. No further direction or authorization from
Borrower shall be necessary to warrant such direct disbursement by Lender and
all such disbursements shall satisfy the obligation of Lender hereunder.

     7. Performance under Note. In no event shall any term or provision of this
Agreement modify, alter or amend the obligations of Borrower under the Note, nor
shall any term or provision of this Agreement modify or amend the Note.

     8. Term; Termination. Upon the payment in full of all sums payable to
Lender under the Loan Documents, Lender shall deliver the then existing Funds to
Borrower. Notwithstanding the foregoing but subject to the terms of section 6
hereof, upon the occurrence of an Event of Default, Lender may terminate this
Agreement and retain all Funds then being held pursuant to this Agreement and
apply such Funds in such order and in such amounts as Lender shall elect, in its
sole and absolute discretion, to payment of the Debt evidenced by the Note and
the Loan Documents.

     9. Remedies Cumulative. No right or remedy conferred upon or reserved to
Lender under this Agreement is intended to be exclusive of any other right or
remedy, and each and every such right and remedy shall be cumulative and
concurrent and may be enforced separately, successively or together, and may be
exercised from time to time as often as may be deemed necessary by Lender.

     10. Miscellaneous.

          (a) Any capitalized term utilized herein shall have the meaning as
     specified in the Security Instruments, unless such term is otherwise
     specifically defined herein.

          (b) Except as otherwise expressly provided herein, in any instance
     where the consent or approval of Lender is required or may be given or
     where any determination, judgment or decision is to be rendered by Lender
     under this Agreement, such approval and consent shall be given or withheld
     in Lender's sole and absolute discretion.

          (c) All notices hereunder shall be given in accordance with the
     provisions of the Security Instruments.

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          (d) This Agreement shall be binding upon Borrower and its heirs,
     devisees, representatives, successors and assigns, including successors in
     interest of Borrower in and to all or any part of the Property, and shall
     inure to the benefit of and may be enforced by and binding upon Lender and
     its heirs, successors, legal representatives, substitutes and assigns.
     Borrower shall not assign any of its rights or obligations under this
     Agreement.

          (e) This Agreement is intended solely for the benefit of Lender, its
     successors and assigns, and no other third party shall have any right or
     interest in this Agreement, nor any right to enforce this Agreement against
     any party hereto.

          (f) This Agreement may not be modified, amended, waived, extended,
     changed, discharged or terminated orally or by any act or failure to act on
     the part of Borrower and Lender, but only by an agreement in writing signed
     by the party against whom the enforcement of any modification, amendment,
     waiver, extension, change, discharge or termination is sought.

          (g) Nothing herein or in the Loan Documents is intended to create, nor
     creates, nor shall be deemed to create, a joint venture, partnership,
     tenancy-in-common, or joint tenancy relationship between Borrower and
     Lender, nor to grant Lender any interest in the Property other than that of
     creditor or mortgagee.

          (h) This Agreement contains the complete and entire understanding of
     the parties with respect to the subject matter thereof. If any provisions
     of this Agreement shall conflict with any provisions of the other Loan
     Documents regarding the Funds the provisions contained in this Agreement
     shall control.

          (i) The invalidity, illegality, or unenforceability of any provision
     of this Agreement pursuant to judicial decree shall not affect the
     validity, legality or enforceability of any other provisions of this
     Agreement which can be effected with such invalid, illegal or unenforceable
     provision, all of which shall remain in full force and effect.

          THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE
     LAWS, FROM TIME TO TIME IN EFFECT, IN THE STATE OF MICHIGAN AND THE LAWS OF
     THE UNITED STATES OF AMERICA.

     IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement as of
the date first above written.

Witness                                 "Borrower"

                                        TABB Realty, LLC,
                                        a Michigan limited liability company

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                                        By: TABB Management, Inc.,
                                            a Michigan corporation,
                                            its Manager

/s/ Leann M. Underhill                  By: /s/ Michael J. Plotzke
-------------------------------------       ------------------------------------
                                        Name: Michael J. Plotzke
                                        Title: Vice President and Treasurer
                                        Taxpayer Id. No.: 52-2172947

                                        PNC BANK:

                                        PNC BANK, NATIONAL ASSOCIATION

/s/ Stephanie Cook                      By: /s/ Jeannette Butler
-------------------------------------       ------------------------------------
                                            Jeannette Butler, Vice-President

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                                    EXHIBIT A

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                                                                    EXHIBIT 10.1

                              MANAGEMENT AGREEMENT

      THIS MANAGEMENT AGREEMENT (the "Agreement") is made as of the _____ day of
___________, 2005 by and between Ensource Reserves Management LLC, a Delaware
limited liability company ("Reserves"), and Ensource Energy Company LLC, a
Delaware limited liability company ("Manager").

                                    RECITALS:

      WHEREAS, subject to the terms hereof, Reserves desires to engage Manager,
and Manager desires to be engaged, to (i) manage Reserves' assets and Business,
(ii) provide or cause to be provided the reports and other information described
herein relating Reserves' assets and Business, and (iii) provide the other
services described herein.

      NOW, THEREFORE, in consideration of the mutual covenants herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto (each, a "Party" and together, the "Parties")
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      1.1 Defined Terms. Capitalized terms used in this Agreement shall have the
meanings ascribed to them in this Section 1.1 or otherwise throughout this
Agreement regardless of whether such terms appear before or after the place
where they are defined.

      "Acquisition" means any acquisition by Reserves of (i) all or
substantially all of the interest in any company or business (whether by a
purchase of assets, purchase of stock, merger or otherwise); (ii) any
acquisition or series of acquisitions during any Fiscal Year of the interests in
any companies or businesses (whether by a purchase of assets, purchase of stock,
merger or otherwise), even if such acquisition or series of acquisitions
involves less than substantially all of such interests, that involves the
payment of consideration with a total value in excess of $25,000,000; or (iii)
any Properties acquired after the date of this Agreement.

      "Agreement" means this Agreement, as it may be amended from time to time.

      "Affiliate" means, with respect to a Person, any other Person controlling,
controlled by or under common control with such Person.

      "Base NPI" means an amount calculated as (a) the sum of net revenues
received from the sale of Hydrocarbons produced from or attributable to the
Properties pursuant to third-party marketing agreements, less (b) the sum of (i)
severance and ad valorem taxes attributable to the Properties, (ii) direct
operating expenditures attributable to the Properties and (iii) Reserves G&A.

      "Base NPI Net Proceeds" means the net proceeds of the Base NPI earned
during the quarter in respect of which the determination is being made.

      "Board" means the Board of Directors of EEP.

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      "Business" means the oil and gas exploration, development, production,
marketing, sale or other disposition of Hydrocarbons produced from or
attributable to the Properties, in each case as now or hereafter conducted after
the date hereof.

      "Business Day" means any day that is not a Saturday, Sunday or day on
which banks are authorized by law to close in the State of Texas.

      "Confidential Information" means all information furnished to Manager or
its representatives by or on behalf of Reserves or created or developed by
Manager or its representatives relating to the Business, Properties or assets of
Reserves (irrespective of the form of communication and whether such information
is furnished before, on or after the date hereof), and all analyses,
compilations, data, studies, notes, interpretations, memoranda or other
documents prepared by Manager or its representatives containing or based in
whole or in part on any such furnished information.

      "Divestiture" means the transfer, sale, lease, farmout, exchange,
abandonment or other disposition (or related series of such transactions) of all
or any portion of the Properties.

      "EEP" means Ensource Energy Partners LP.

      "Fiscal Year" means the fiscal year of Reserves for US GAAP purposes.

      "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, administrative tribunal, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government, and any
corporation or other entity owned or controlled, through stock or capital
ownership or otherwise, by any of the foregoing.

      "Hydrocarbons" means oil, gas, casinghead gas, condensate, distillate,
liquid hydrocarbons, gaseous hydrocarbons and all products refined or extracted
therefrom, together with all other minerals produced in association with these
substances.

      "LLC Agreement" means the Limited Liability Company Agreement of Ensource
Reserves Management LLC dated as of ____________, 2005, as amended from time to
time.

      "LP Agreement" means the Amended and Restated Agreement of Limited
Partnership of Ensource Energy Partners LP dated as of ____________, 2005, as
amended from time to time.

      "Manager" has the meaning set forth in the above preamble.

      "Management Incentive Fee" means an amount calculated as a percentage of
Base NPI Net Proceeds as determined from the following table:

                  -     2.0% of Base NPI Net Proceeds of up to an including $25
                        million, plus

                  -     1.75% of Base NPI Net Proceeds in excess of $25 million
                        and up to and including $50 million, plus

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                  -     1.0% of Base NPI Net Proceeds in excess of $50 million.

      "Material Decisions" has the meaning provided in Section 3.2.

      "Permits" means licenses, permits, variances, exemptions, orders,
franchises, approvals and other authorizations of or from any Governmental
Authority.

      "Person" means any individual, corporation, partnership, business trust,
limited liability company, joint venture, association, joint-stock company,
trust, unincorporated organization, government or any agency or political
subdivision thereof or any other entity.

      "Proceedings" means all proceedings, actions, claims, suits and notices of
investigations by or before any arbitrator or Governmental Authority.

      "Properties" means the oil and gas properties now owned or hereafter
acquired by Reserves, including oil and gas leases, mineral interests, royalty
interests, overriding royalty interests, pipelines, flow lines, gathering lines,
gathering systems, compressors, dehydration units, separators, meters, injection
facilities, salt water disposal wells and facilities, plants, wells, downhole
and surface equipment, fixtures, improvements, easements, rights-of-way, surface
leases, licenses, permits and other surface rights, and other real or personal
property appurtenant thereto or used in conjunction therewith.

      "Reserves G&A" means the general and administrative expenses incurred by
or on behalf of Reserves in the operation of the Business, including any
expenditures for legal, tax, accounting and other services provided by any Third
Party, but excluding, (i) severance and ad valorem taxes attributable to the
Properties and (ii) direct operating expenditures attributable to the
Properties.

      "Services" means the services and items provided (or to be provided) by
Manager pursuant to this Agreement.

      "Taxes" means any and all foreign, federal, state, local and municipal
taxes, including ad valorem, property, gross receipts, sales, use, excise,
transaction, import duties and charges, customs broker fees and other costs of
importation, non-U.S. value-added taxes, other non-U.S. taxes or charges, or
increases in any of the foregoing, now existing or otherwise applicable, on any
item or service that is the subject of this Agreement, other than taxes (whether
foreign, federal, state, local or municipal) based on net income, net worth,
capital or profit.

      "Third Party" means any Person other than Manager or Reserves or any of
their respective Affiliates.

      "US GAAP" means those generally accepted accounting principles and
practices that are recognized as such by the Financial Accounting Standards
Board (or any generally recognized successor).

      1.2 Other Definitions. Any capitalized term used but not defined herein
shall have the meaning given the term in the LLC Agreement. Words not otherwise
defined herein (or by reference to the LLC Agreement) that have well-known and
generally accepted technical or trade

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meanings in the oil and gas industry are used herein in accordance with such
recognized meanings.

      1.3 Construction. As used in this Agreement, unless expressly stated
otherwise, references to "includes" and its derivatives mean "includes, but is
not limited to," and corresponding derivative expressions. Unless otherwise
specified, all references in this Agreement to "Sections" and "Exhibits" are
references to the corresponding sections in and exhibits attached to this
Agreement; all such exhibits are incorporated herein by reference.

                                   ARTICLE II
                                MANAGER SERVICES

      2.1 Services to be provided by Manager. For and in consideration of the
Management Incentive Fee, Manager shall perform all management and
administrative services as may be required by Reserves for the reasonable
conduct of the Business as hereafter conducted, including the following:

            (a) General Administration and Management. Manager will provide, or
will contract with a Third Party to provide, in accordance with the Annual
Budget (or other express authorization(s) of the Board): (i) services relating
to the sale of Hydrocarbons produced, saved and marketed from the Properties,
(ii) contract administration services in connection with the sale of such
production, (iii) contract administration services regarding contracts and
agreements of Reserves, and management supervision of contractors and vendors of
Reserves, relating to the exploration, development, operation, maintenance and
disposition of Reserves' assets, and (iv) management of the personnel needs, and
administration of any employment and consulting contracts, for any employees and
consultants of Reserves.

            (b) Land Administration Services. Manager shall provide (or, subject
to the other terms of this Agreement, arrange to be provided) all lease,
division order and other land administration services (collectively, "Land
Administration Services"), including the following:

                  (i) Administering and maintaining leases and agreements
               relating to the Properties;

                  (ii) Maintaining and updating lease, ownership, contract and
               property records and databases relating to the Properties;

                  (iii) Maintaining and updating royalty payment and division
               order reports and databases;

                  (iv) Generating, verifying, and processing internal and
               external division orders and transfer orders required in the
               normal course of business;

                  (v) Identifying, paying and invoicing rentals, rights of way,
               shut-in payments and other payments required by the leases or
               other agreements relating to the Properties;

                                      -4-
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                  (vi) Maintaining land, contract, division of interest, lease
               files and other files relating to the subject land administration
               functions; and

                  (vii) Performing such other reasonable and customary land
               administration services as Reserves deems necessary to administer
               or maintain the leases or agreements relating to the Properties.

            (c) Accounting Services. Manager shall provide (or, subject to the
other terms of this Agreement, will contract with a Third Party to provide)
financial, revenue and expense accounting services relating to the Business
(collectively, "Accounting Services"), including the following:

                  (i) On or before forty-five (45) days after the end of every
               calendar month, Manager shall prepare a settlement statement for
               Reserves indicating all cash, checks or other proceeds received
               and expenses during the previous calendar month. All remittances
               shall be deposited into, and all expenses shall be paid from, the
               appropriate bank accounts of Reserves, as such bank account may
               be designated by Reserves from time to time.

                  (ii) Manager shall prepare and file on behalf of Reserves
               applicable reporting and filing requirements of Governmental
               Authorities;

                  (iii) Manager shall perform expenditure accounting functions
               relating to the Properties, including arranging Reserves' payment
               of invoices;

                  (iv) Within forty-five (45) days after the end of each month,
               Manager shall prepare a hedging report showing Reserves' hedging
               positions as of the last day of such month, and forecasting the
               projected amount of production that is hedged for the three-year
               period following the date of such report; and

                  (v) To the extent Reserves hires any employees, Manager shall
               perform, or cause to be performed, all payroll and employment
               benefit requirements with respect to any of Reserves' employees.

            (d) Risk Management. Manager, subject to the other terms of this
Agreement, shall arrange for the benefit of Reserves insurance coverage with
respect to the Properties in accordance with Reserves' risk management policies
as established from time to time by the Board or as required by Reserves'
contractual obligations.

            (e) Bonding. Manager, subject to the other terms of this Agreement,
shall arrange for Reserves' production tax withholding, plugging and abandonment
and surface restoration bonds, letters of credit or other surety required under
applicable law or under specified contracts to which Reserves is bound with
respect to the Properties.

            (f) Engineering. Manager, subject to the other terms of this
Agreement, will provide engineering support relating to the Properties,
including reserve evaluations and production forecasting, monitoring of
allowables, monitoring of well profitability, preparation and review of, and
making of recommendations and elections with respect to, proposals for

                                      -5-
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drilling, completion, workovers or other operations with respect to the
Properties and recommendation of opportunities for enhancement of existing
Hydrocarbon production. Other than for specific Acquisitions, the Manager will
provide an internal engineering report on the Properties by October 1st of each
Fiscal Year and will deliver an engineering report prepared by a third party
acceptable to the Board and Reserves' senior lenders, if any, by March 1st of
each Fiscal Year.

            (g) Exploration; Acquisitions and Divestitures. Manager will make
recommendations to Reserves with respect to the exploration and development of
the Properties and recommendations for Acquisitions and Divestitures, including
the following:

                  (i) Geological and Geophysical. Manager will provide, or
               arrange for a Third Party to provide, services relating to the
               acquisition, processing and interpretation of seismic data
               (whether internally or externally) and evaluation of internally
               and externally developed prospect proposals and review of logs,
               isopach maps and structure maps;

                  (ii) Prospect Generation; Exploration and Development
               Proposals. Manager will provide services relating to the
               generation of internal, and evaluation of outside, proposals for
               the exploration and development of the Properties, including
               proposals for exploration, development or other operations
               received from other working interest owners under applicable
               joint operating agreements, or recommendations to propose
               exploration, development or other operations to other working
               interest owners under applicable joint operating agreements;

                  (iii) Acquisitions. Manager will make recommendations to the
               Board with respect to potential Acquisitions;

                  (iv) Divestitures. Manager will make recommendations to the
               Board relating to proposed Divestitures, including
               recommendations with respect to Divestiture of underperforming or
               non-core Properties.

            (h) Purchasing. Manager, subject to the other terms of this
Agreement, shall arrange for the procurement of equipment, supplies and other
goods and services reasonably necessary for the efficient day to day operation
of the Business.

            (i) Compliance. Manager shall provide (or, subject to the other
terms of this Agreement, arrange to be provided) services relating to regulatory
compliance, including arranging the application for, maintenance of and
compliance with all required Permits with respect to the Properties or the
Business; preparation and filing of all applications, reports, notices and other
regulatory filings or reports required by any Governmental Authority; and
participation in hearings and other administrative Proceedings on behalf of
Reserves.

            (j) Reporting to Reserves. Manager shall prepare and submit (or,
subject to the other terms of this Agreement, arrange to be provided) to the
Board the following information and reports:

                                      -6-
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                  (i) Annual Budget and Operating Plan. On or before each
               December 15th during the term of this Agreement with respect to
               the next, entire Fiscal Year (e.g., on or before December 15,
               2005, with respect to the next entire Fiscal Year commencing on
               January 1, 2006), Manager will prepare for the consideration and
               adoption of the Board a proposed annual operating, capital
               expenditure, maintenance and acquisition budget, and shall from
               time to time propose such amendments thereof as the Manager deems
               necessary and appropriate (collectively, the "Annual Budget").
               Such Annual Budget shall set forth on a monthly basis the
               estimated receipts and expenditures (capital, operating and
               other) of Reserves in sufficient detail to provide an estimate of
               net income, taxable income, cash flow, capital proceeds and other
               financial requirements of Reserves for such year. The general and
               administrative expense estimates of such Annual Budget will be
               provided separately and broken out in detail in a line item
               format. Each Annual Budget shall also include such other
               information or other matters reasonably necessary in order to
               enable the Board to make an informed decision with respect to
               approval of such Annual Budget. Following any calendar quarter,
               the Manager may propose changes to any Annual Budget (or any line
               item therein) previously submitted to the Board, and the Board
               will consider any such proposed changes at its next scheduled
               meeting.

                  (ii) Quarterly Production Reports. Within 30 days after the
               end of each calendar quarter, Manager will provide the Board with
               a production report containing a summary of production from or
               attributable to the Properties and a summary of operations on the
               Properties, together with a summary of any significant issues,
               including an analysis of any material variations from the Annual
               Budget.

                  (iii) Quarterly Financial Statements. Within 30 days after the
               end of each calendar quarter, Manager will provide the Board with
               a balance sheet, income statement and cash statement for the
               current month and year-to-date setting forth the actual results
               for the periods presented together with a comparison to the
               respective amounts in the Annual Budget. Except as the Manager
               and the Board may otherwise agree, such financial statements
               shall be prepared in accordance with US GAAP other than footnotes
               and subject to year-end audit adjustments, and shall contain a
               detailed narrative description of variances to the Annual Budget.
               Such financial statements shall also include an analysis of
               Reserves' outstanding debt and a calculation of all financial
               ratios required or relevant under the terms of such debt
               documents.

                  (iv) Quarterly Capital Investment Reports. Within 30 days
               after the end of each calendar quarter, Manager will provide the
               Board with a report describing in reasonable detail the progress
               of all drilling, completion, reworking, secondary, tertiary or
               other recovery technique and other capital investment activities
               conducted during such quarter with respect to the Properties,
               including a statement of the cost of wells completed or abandoned
               and an explanation of the abandonment of any well abandoned
               during such

                                      -7-
<PAGE>

               month, and a forecast of expected capital investment activities
               during the next three (3) months. Such report will contain an
               analysis of material variations from the Annual Budget and an
               analysis of the performance of such capital investments over time
               as is reasonably necessary for the understanding of the financial
               and operating performance of Reserves.

                  (v) Audited Financial Statements. Manager will cause to be
               prepared and will furnish to the Board within 90 days after the
               end of each Fiscal Year (commencing with the Fiscal Year ending
               December 31, 2005), an [audited] balance sheet, audited income
               statement and audited statement of cash flows, all prepared in
               accordance with US GAAP, together with an audit opinion from a
               nationally recognized accounting firm that, to the extent
               reasonably within the Manager's control, is unqualified; and such
               report and opinion shall also include, on an audited basis (to
               the extent the same can be practicably obtained from the auditor)
               or on an unaudited basis (to the extent the same cannot be
               practicably obtained from the auditor), a statement of changes in
               the member's equity in Reserves.

                  (vi) Forecasted Distributions. Within 45 days after the end of
               each calendar quarter, Manager will furnish a forecast of the net
               cash flow and the NPI proceeds payable by Reserves to the Fund
               for the remainder of the Fiscal Year.

                  (vii) Income Tax Returns. The Manager shall use its best
               efforts to cause to be prepared federal and required state income
               tax returns to be filed by Reserves within 75 days after the end
               of a Fiscal Year. Contemporaneously with filing by Reserves,
               Manager shall distribute copies of such returns and Schedule K-1
               (or similar state schedule) to EEP.

                  (viii) Other reports. The Manager shall provide the Board with
               copies of (i) all material reports delivered to Reserves and (ii)
               all material information related to any pending or, to the
               knowledge of Manager, threatened Proceedings, insurance or
               required permits, together with such other reports and
               information relating to the Business or the Services as the Board
               may reasonably request, to the extent such information is in the
               possession of Manager or can be readily obtained by Manager
               without undue effort or unreimbursed expense.

                  (ix) Meetings. At each meeting of the Board, Manager will
               provide information relevant to (a) any Material Decision,
               together with Manager's recommendation with respect thereto and
               reasons therefor, and a summary of actions taken pursuant to
               Material Decisions since the preceding meeting of the Board, (b)
               any material Proceedings that are pending or, to the knowledge of
               Manager, threatened against Reserves or in connection with the
               Properties or the Business and (c) any other material
               developments with respect to the Properties or the Business.

                                      -8-
<PAGE>

            (k) Maintenance of Books and Records. Manager shall maintain the
books and records of Reserves. Manager agrees to retain all such books and
records in accordance with all reasonable records retention policies that may
from time to time be adopted by Reserves.

            (l) Other. Manager will perform such other functions as are usually
and customarily performed by an oil and gas exploration and production company
not heretofore enumerated in this Article II.

      2.2 Affect on LLC Agreement. Nothing in this Agreement shall be deemed to
modify the LLC Agreement, affect any of EEP's obligations under the LLC
Agreement, or affect the standard to which EEP is held in performing its
obligations under the LLC Agreement. In connection with the performance of this
Agreement, Manager shall not take any action that would be prohibited or would
otherwise require the approval of the Board under the LLC Agreement.

      2.3 Reserves Information. It is contemplated that during the term of this
Agreement, (a) Reserves will be required to provide certain notices, information
and data necessary for Manager to perform the Services and its obligations under
this Agreement, and (b) one or more of the officers or individual members of
Manager would also be an officer of EEP or a member of the Board, and would be
involved in collecting or providing to Manager certain notices, information and
data necessary for Manager to perform the Services and its obligations under
this Agreement. However, if there is a time during the term of this Agreement
when none of the officers or individual members of Manager are officers of
Reserves, or a member of the Board, then, for such period, Manager shall be
permitted to rely on any information or data provided by Reserves to Manager in
connection with the performance of its duties and provision of Services under
this Agreement, except to the extent that Manager has actual knowledge that such
information or data is inaccurate or incomplete.

                                  ARTICLE III
                           MATTERS RESERVED TO COMPANY

      3.1 Execution of Contracts. Manager is an independent contractor of
Reserves. Subject to the other terms and provisions of this Agreement, Manager
may enter into subcontracts with service providers in connection with the
performance of its obligations hereunder. Manager is authorized hereunder to
execute contracts, assignments, certificates, applications, authorizations,
regulatory filings or any other documents or instruments in Reserves' name.

      3.2 Further Restrictions. Manager shall not undertake any of the following
actions (each a "Material Decision") with respect to the Properties or the
Business without the prior approval of the Board:

            (a) Entering into any contract, or incurring any other expense or
liability, for which Manager will seek reimbursement or payment from Reserves
(or arranging for any contract or agreement to be entered into by Reserves), (i)
with a term of greater than 36 months that is not included in, and even if
within the Annual Budget within the economic parameters so reflected in, such
Annual Budget or other express authority granted Manager by the Board, or (ii)

                                      -9-
<PAGE>

involves the incurrence of an obligation or liability by (or for the expense of)
Reserves in excess of, individually, $1,000,000, or, in the aggregate,
$5,000,000, unless otherwise previously approved by the Board or permitted in
the LP Agreement (and such $5,000,000 amount shall be in the aggregate, taking
into account all other contracts, expenses or liabilities not otherwise
expressly approved by the Board or in the Annual Budget). Any expenses or
liabilities incurred by Manager in violation of this Agreement shall be incurred
at Manager's sole risk and liability.

            (b) Any other actions or restrictions identified or imposed, from
time to time, by the Board.

                                   ARTICLE IV
                                STANDARD OF CARE

      4.1 Standard of Care. Manager shall perform the Services in a good, safe
and workmanlike manner, with due diligence and dispatch, in accordance with good
business practice and in compliance with applicable laws, regulations,
contracts, leases, orders, security instruments and other agreements to which
Reserves is a party or by which Reserves or any of its Properties are bound; but
in no event shall it have any liability as Manager to Reserves for losses
sustained or liabilities incurred except such as may result from gross
negligence or willful misconduct.

      4.2 Procurement of Goods and Services. To the extent that Manager arranges
contracts with Third Parties for goods and services in connection with the
operation of the Properties, Manager shall use commercially reasonable efforts
(i) to obtain such goods and services at rates competitive with those otherwise
generally available in the area in which services or materials are to be
furnished; and (ii) to obtain from such Third Parties such customary best
warranties and guarantees as may be reasonably required with respect to the
goods and services so furnished.

      4.3 Protection from Liens. Manager shall not permit any liens,
encumbrances or charges upon any of the Properties arising from the provision of
Services or materials under this Agreement except as approved, or consented to,
by the Board.

      4.4 Commingling of Assets. Manager shall separately maintain and not
commingle the assets of Reserves with those of Manager.

      4.5 Insurance. Manager shall obtain and maintain during the term of this
Agreement, from insurers who are reliable and acceptable to Reserves and
authorized to do business in the state or states or jurisdictions in which
Services are to be performed by Manager, insurance coverages in the types and
minimum limits set forth on Exhibit A attached hereto. Manager agrees to provide
the Board with certificates of insurance evidencing such insurance coverage and,
upon request of the Board, shall furnish copies of such policies. Except with
respect to workers' compensation coverage, the policies shall name Reserves as
an additional insured and shall contain waivers by the insurers of any and all
rights of subrogation to pursue any claims or causes of action against Reserves.
The policies shall provide that they will not be cancelled or reduced without
giving Reserves at least 10 days' prior written notice of such cancellation or
reduction.

                                      -10-
<PAGE>

      4.6 Intellectual Property Rights. If Manager uses intellectual property
owned by Third Parties in the performance of the Services, Manager shall obtain
and maintain any such licenses and authorizations necessary to authorize its use
of such intellectual property in connection with the Services.

                                   ARTICLE V
                 MANAGER'S COMPENSATION; CONTINUING OBLIGATIONS

      5.1 Management Incentive Fee; Continuing Obligations. On the first
Business Day of the second calendar month following each calendar quarter during
the term hereof commencing on _______, 2005, Reserves shall pay Manager, in
cash, the Management Incentive Fee as a fee for Services rendered hereunder;
provided, however, that a Management Incentive Fee shall neither be deemed
earned, nor shall it be payable, in respect of any calendar quarter during the
term of this Agreement if Ensource Energy Income Fund LP has not declared paid
(or declared and set aside for payment) in respect of such calendar quarter a
cash distribution payable to its common unitholders in an amount of not less
than $0.50 per common unit (excluding amounts in respect of common unit
arrearages and subject to appropriate adjustment for any split, combination or
similar transaction in respect of the common units).

      5.2 Other Expenditures. Manager's general and administrative costs and
similar overhead costs that are incurred by Manager in performing Services
hereunder shall be charged to Reserves without mark-up, interest or other profit
to Manager.

      5.3 Cash Advances. On or before the 15th day of each calendar month,
Manager may elect to receive a cash advance from Reserves to cover the estimated
costs of Manager in the following month with respect to the performance of
Services. In the event actual expenditures are less than the amount advanced by
Reserves, Manager shall apply any excess advance to the following month's
estimated expenditures. If the actual expenditures are more than the amount
advanced by Reserves, Manager shall include (and Reserves shall advance) any
excess expenses on the following month's estimated expenditures.

      5.4 No Set-Off. All payments, including the Management Incentive Fee
earned and payable in accordance this Agreement, shall be made without deduction
whether on account of set-off or otherwise.

      5.5 Taxes. Reserves shall be responsible for all applicable Taxes levied
on items, goods or services that are sold, purchased or obtained pursuant to
this Agreement, including the Services, except for Taxes (whether foreign,
federal, state, local or municipal taxes) imposed on the net income, net worth,
capital or profits of Manager.

                                   ARTICLE VI
                          INDEMNIFICATION; LIMITATIONS

      6.1 Indemnification by Manager.

            (a) Employees, Agents and Representatives of Manager. Manager hereby
agrees to DEFEND, INDEMNIFY AND HOLD HARMLESS Reserves and EEP and their
respective officers, managers, members, directors, employees, agents and
Affiliates (collectively,

                                      -11-
<PAGE>

the "Reserves Indemnitees") from any and all threatened or actual claims,
demands, causes of action, suits, proceedings, losses, damages, fines,
penalties, liabilities, costs and expenses of any nature, including attorneys'
fees and court costs (collectively, "Liabilities"), sustained by, incurred by,
arising in favor of or asserted by any employees, agents and representatives of
Manager, or any contractors or subcontractors of Manager, in any way relating to
the performance of Services hereunder (including any claims for personal injury,
property loss or damage, bodily injury, illness or death).

            (b) Manager's own Property. Manager hereby agrees to RELEASE,
DEFEND, INDEMNIFY AND HOLD HARMLESS each member of Reserves Indemnitees from any
and all Liabilities sustained or incurred by Manager with respect to any damage
to or loss of Manager's property, whether real, personal or mixed property, in
any way relating to the performance of Services hereunder.

            (c) Other Reserves and Third Party Claims. In addition to the
indemnities in Section 6.1(a) and Section 6.1(b), Manager hereby agrees to
DEFEND, INDEMNIFY AND HOLD HARMLESS each of the Reserves Indemnitees from any
and all Liabilities sustained or incurred by any of Reserves Indemnitees or
asserted against any of Reserves Indemnitees by Third Parties, in any way
relating to the performance of Services, to the extent, and only to the extent,
such Liabilities are finally judicially determined not to be the result of (i)
the gross negligence or willful misconduct of Reserves or such Reserves
Indemnitee or (ii) the breach of this Agreement.

      6.2 Indemnification by Reserves.

            (a) Employees, Agents and Representatives of Reserves. Reserves
hereby agrees to DEFEND, INDEMNIFY AND HOLD HARMLESS Manager and its respective
officers, managers, members, employees, agents and Affiliates (collectively, the
"Manager Indemnitees") from any and all Liabilities sustained by, incurred by,
arising in favor of or asserted by any employees, agents and representatives of
Reserves, in any way relating to the performance of Services hereunder
(including any claims for personal injury, property loss or damage, bodily
injury, illness or death); provided, however, that for purposes hereof,
"employees, agents and representatives of Reserves" shall not include Manager,
any employees, agents or representatives of Manager or any other member of the
Manager Indemnitees.

            (b) Other Third Party Claims. Subject to the provisions and
indemnities set forth in Sections 6.1, Reserves hereby agrees to DEFEND,
INDEMNIFY AND HOLD HARMLESS Manager Indemnitees from any and all Liabilities
sustained or incurred by or asserted against the Manager Indemnitees by Third
Parties (other than by Affiliates of Manager Indemnitees) in connection with the
performance of Services, to the extent, and only to the extent that, such
Liabilities are finally judicially determined to result from (i) the gross
negligence or willful misconduct of Reserves or (ii) the breach of this
Agreement.

      6.3 Negligence; Strict Liability. THE RELEASE, DEFENSE AND INDEMNITY
OBLIGATIONS IN SECTIONS 6.1 AND SECTION 6.2 SHALL APPLY REGARDLESS OF CAUSE OR
OF ANY NEGLIGENT ACTS OR OMISSIONS (INCLUDING SOLE NEGLIGENCE, CONCURRENT
NEGLIGENCE OR STRICT LIABILITY), BREACH OF

                                      -12-
<PAGE>

DUTY (STATUTORY OR OTHERWISE), VIOLATION OF LAW OR OTHER FAULT OF ANY
INDEMNIFIED PARTY, OR ANY PRE-EXISTING DEFECT; PROVIDED, HOWEVER, THAT THIS
PROVISION SHALL IN NO WAY LIMIT OR ALTER ANY QUALIFICATIONS SET FORTH IN SUCH
RELEASE, DEFENSE AND INDEMNITY OBLIGATIONS EXPRESSLY RELATING TO GROSS
NEGLIGENCE, INTENTIONAL MISCONDUCT OR BREACH OF THIS AGREEMENT. BOTH PARTIES
AGREE THAT THIS STATEMENT COMPLIES WITH THE REQUIREMENT KNOWN AS THE `EXPRESS
NEGLIGENCE RULE' TO EXPRESSLY STATE IN A CONSPICUOUS MANNER AND TO AFFORD FAIR
AND ADEQUATE NOTICE THAT THIS SECTION HAS PROVISIONS REQUIRING ONE PARTY TO BE
RESPONSIBLE FOR THE NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF ANOTHER
PARTY.

      6.4 Limitations of Liability.

            (a) MANAGER SHALL NOT BE LIABLE OR RESPONSIBLE HEREUNDER FOR BREACH
OF WARRANTY OR STANDARD OF PERFORMANCE WITH RESPECT TO THE PROVISION OF
SERVICES, OR ACCOUNTABLE IN DAMAGES OF ANY KIND TO RESERVES WITH RESPECT
THERETO: (I) FOR ANY ACT, OR OMISSION PERFORMED OR OMITTED BY MANAGER IN GOOD
FAITH AND IN A MANNER REASONABLY BELIEVED BY MANAGER TO BE WITHIN THE SCOPE OF
THIS AGREEMENT AND IN THE BEST INTERESTS OF RESERVES, OR (II) FOR A FAILURE OR
INABILITY TO ACT IN RENDERING THE SERVICES DUE SOLELY TO A FAILURE OR
NON-PERFORMANCE BY RESERVES; PROVIDED, HOWEVER, THAT SUCH DAMAGES IN SUBSECTIONS
(I) OR (II) DO NOT ARISE FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
MANAGER OR FROM A BREACH OF THIS AGREEMENT BY MANAGER.

            (b) NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN CONTAINED, THE
AGGREGATE LIABILITY OF MANAGER ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT AND THE PERFORMANCE OR NON-PERFORMANCE THEREOF, WHETHER BASED ON
CONTRACT, INDEMNITY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE,
SHALL IN NO EVENT EXCEED THE AMOUNT OF THE MANAGEMENT INCENTIVE FEES PAID TO
MANAGER DURING THE PREVIOUS TWELVE (12) MONTH; PROVIDED, HOWEVER, THAT THIS
LIMITATION OF LIABILITY SHALL NOT APPLY (A) TO THE EXTENT ATTRIBUTABLE TO
MANAGER'S (OR ANY OF MANAGER INDEMNITEES') FRAUD OR INTENTIONAL MISCONDUCT, OR
(B) WITH RESPECT TO THE INDEMNITIES PROVIDED IN SECTION 6.1.

      6.5 Limitations of Damages and Waiver of Damages. IN CONNECTION WITH ANY
BREACH OF THIS AGREEMENT, NO PARTY AND NONE OF THEIR AFFILIATES, OFFICERS,
DIRECTORS, EMPLOYEES, AGENTS, MEMBERS, SHAREHOLDERS, PARTNERS OR REPRESENTATIVES
SHALL BE LIABLE FOR ANY CONSEQUENTIAL OR INDIRECT LOSS OR DAMAGE OF THE
NON-BREACHING PARTY, INCLUDING LOSS OF REVENUES, COST OF CAPITAL, LOSS OF
GOODWILL, INCREASED OPERATING COSTS, DELAY COSTS OR ANY OTHER SPECIAL OR
PUNITIVE DAMAGES OF THE NON-BREACHING PARTY. THE PARTIES FURTHER AGREE THAT

                                      -13-
<PAGE>

THE WAIVERS AND DISCLAIMERS OF LIABILITY, RELEASES FROM LIABILITY AND
LIMITATIONS ON LIABILITY EXPRESSED IN THIS AGREEMENT SHALL SURVIVE TERMINATION
OR EXPIRATION OF THIS AGREEMENT, AND SHALL APPLY WHETHER CLAIMS ARISE IN
CONTRACT, EQUITY, TORT OR OTHERWISE, EVEN IN THE EVENT OF THE FAULT, NEGLIGENCE,
INCLUDING SOLE NEGLIGENCE, STRICT LIABILITY OR BREACH OF THE PARTY RELEASED OR
WHOSE LIABILITIES ARE LIMITED.

      6.6 No Warranties or Guarantees. EXCEPT AS EXPRESSLY PROVIDED IN THIS
AGREEMENT, NEITHER PARTY MAKES ANY WARRANTIES OR GUARANTEES TO THE OTHER, EITHER
EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTIES, THE SERVICES OR ANY OTHER
SUBJECT MATTER OF THIS AGREEMENT, AND THE PARTIES DISCLAIM AND WAIVE ANY IMPLIED
WARRANTIES OR WARRANTIES IMPOSED BY APPLICABLE LAW, INCLUDING IMPLIED WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

      6.7 Anti-Indemnity. IN THE EVENT THIS AGREEMENT IS SUBJECT TO THE
INDEMNITY LIMITATIONS IN CHAPTER 127 OF THE TEXAS CIVIL PRACTICE AND REMEDIES
CODE (OR ANY SUCCESSOR STATUTE), AND SO LONG AS SUCH LIMITATIONS ARE IN FORCE
DURING THE TERM OF THIS AGREEMENT, EACH PARTY COVENANTS AND AGREES TO SUPPORT
THE MUTUAL INDEMNITY AND RELEASE OBLIGATIONS CONTAINED IN SECTION 6.1 AND
SECTION 6.2, BY CARRYING DURING THE TERM OF THIS AGREEMENT NOT LESS THAN THE
MINIMUM LIMITS AND TYPES OF INSURANCE (OR QUALIFIED SELF-INSURANCE) SPECIFIED IN
SECTION 4.5; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL REQUIRE RESERVES TO
OBTAIN OR MAINTAIN WORKERS COMPENSATION OR SIMILAR INSURANCE TO THE EXTENT
RESERVES HAS NO EMPLOYEES.

      6.8 Survival. The provisions of this Article VI shall survive the
termination of this Agreement.

                                   ARTICLE VII
                                 CONFIDENTIALITY

      Manager shall maintain the confidentiality of all Confidential Information
with respect to Reserves, the Business and the Properties; provided, however,
that Manager may disclose such Confidential Information (i) in any judicial or
alternative dispute resolution Proceeding to resolve disputes between Reserves
and Manager arising hereunder; (ii) to the extent disclosure is legally required
under applicable laws (including applicable securities and tax laws) or any
agreement to which Reserves is a party or by which it is bound; provided,
however, that prior to making any legally required disclosures in any judicial,
regulatory or dispute resolution Proceeding, Manager shall, if so advised by
counsel, seek a protective order or other relief to prevent or reduce the scope
of such disclosure; and (iii) to Reserves' existing or potential lenders,
investors, joint interest owners, purchasers or other parties with whom Reserves
may enter into contractual relationships, to the extent deemed by Manager to be
reasonably necessary or desirable to enable it to perform the Services;
provided, however, that Manager shall require such Third Parties to agree to
maintain the confidentiality of the Confidential Information so

                                      -14-
<PAGE>

disclosed; and (iv) if authorized by the Board. Manager acknowledges that the
Confidential Information is being furnished to Manager for the sole and
exclusive purpose of enabling it to perform the Services, and the Confidential
Information may not be used by it for any other purpose. The provisions of this
Article VII shall survive the termination of this Agreement.

                                  ARTICLE VIII
                              TERM AND TERMINATION

      8.1 Term.

            (a) Unless sooner terminated in accordance with the provisions of
Section 8.1(b), this Agreement shall remain in force and effect for an initial
term ending on December 31, 2010 (the "Initial Term"), and shall continue on a
year-to-year basis after that unless terminated by either Party by written
notice delivered to the other Party at least 60 days prior to the end of the
Initial Term or any such year, as the case may be.

            (b) Notwithstanding anything stated herein to the contrary, this
Agreement may be terminated at any time prior to the expiration of the Initial
Term, or, as the case may be, prior to the expiration of any applicable annual
term thereafter, upon any of the following:

                  (i) upon mutual agreement of the Parties; or

                  (ii) By Reserves at its election upon the occurrence of any of
               the following:

                        (A) Manager's gross negligence or willful misconduct in
                  the performance of the Services; or

                        (B) Manager's material breach of this Agreement, if such
                  (I) breach is not remedied within 60 days after Manager's
                  receipt of Reserves' written notice thereof, or such longer
                  period as is reasonably required to cure such breach, provided
                  that Manager commences to cure such breach within such 60-day
                  period and proceeds with due diligence to cure such breach and
                  (II) such breach is continuing at the time notice of
                  termination is delivered to Manager; or

                        (C) the conviction of Manager or any chairman,
                  vice-chairman, president, chief executive officer, chief
                  operating officer, chief financial officer, senior vice
                  president or other senior executive officer of Manager of any
                  felony; or

                        (D) Manager's undertaking of material activities with
                  respect to the Properties or the Business that are not
                  authorized by the Board or Manager's disregard of the Board's
                  lawful written instructions which undertaking or disregard
                  continues unabated for 30 days after Manager's receipt of
                  written notice thereof from the Board and is continuing at the
                  time notice of termination is delivered to Manager; or

                                      -15-
<PAGE>

                        (E) the sale of all or substantially all of the
                  Properties, either in a single transaction or series of
                  transactions, or a winding-up of the Business; or

                        (F) Reserves' receipt of written notice from the
                  majority in interest of the ownership of EEP in the event cash
                  distributions paid by Ensource Energy Income Fund LP to both
                  common and any subordinated unitholders are less than $0.50
                  per unit per calendar quarter for 8 successive calendar
                  quarters (subject to appropriate adjustment for any split,
                  combination or similar transaction in respect of the common or
                  subordinated units); or

                  (iii) By Manager at its election upon:

                        (A) Reserves' material breach of this Agreement, if (I)
                  such breach is not remedied within 60 days after the Board's
                  receipt of Manager's written notice thereof, or such longer
                  period as is reasonably required to cure such breach, provided
                  that Reserves commences to cure such breach within such 60-day
                  period and proceeds with due diligence to cure such breach and
                  (II) such breach is continuing at the time notice of
                  termination is delivered to Reserves;

                        (B) EEP ceasing to own any member interests in Reserves;
                  or

                        (C) Manager ceasing to own any ownership interests in
                  EEP.

      8.2 Post-Termination Transition. Upon termination of this Agreement,
Manager will:

            (a) provide to a successor Manager designated by EEP all original
files and records in Manager's possession or under Manager's control relating to
the Properties or the Services rendered by Manager hereunder, excluding,
however, employee records (provided that Manager may retain a duplicate of files
and records furnished to such successor Manager);

            (b) to the extent assignable, assign to EEP or its designee all
permits and licenses, if any, held by Manager on behalf of Reserves that are
necessary or desirable for the continued operation of the Properties in the
manner in which they were operated upon termination of this Agreement;

            (c) cooperate with EEP's transfer of the management of the
Properties in the manner provided under this Agreement and execute such
instruments and take such further action as EEP may reasonably request to
transfer the same; and

            (d) at EEP's request, provide transition services for up to 90 days
after termination of this Agreement in order to facilitate the transfer of
operations of the Properties to a new operator designated by Reserves; provided,
however, that during such transition period, Reserves shall continue to pay
Manager the Management Incentive Fee, prorated to the number of days of
transition services provided by Manager and continue to reimburse Manager, as

                                      -16-
<PAGE>

provided in Section 5.3, for costs and expenses incurred by Manager in
connection with transition services.

                                   ARTICLE IX
                       AUDIT RIGHTS AND DISPUTE RESOLUTION

      9.1 Audit Rights. At any time during the term of this Agreement, the Board
shall have the right to review and, at Reserves' expense, to copy the books and
records maintained by Manager relating to the Properties. In addition, to the
extent necessary to verify the performance by Manager of its obligations under
this Agreement, the Board shall have the right, at Reserves' expense, to audit,
examine and make copies of or extracts from the books and records of Manager
(the "Audit Right"). The Board may exercise the Audit Right through such
auditors as the Board may determine in its sole discretion. The Board shall (i)
exercise the Audit Right only upon reasonable notice to Manager and (ii) use
reasonable efforts to conduct the Audit Right in such a manner as to minimize
the inconvenience and disruption to Manager.

      9.2 Dispute Resolution. The Parties shall use the dispute resolution
procedures set forth in Exhibit B to resolve in good faith any dispute,
controversy or claim related to this Agreement, including any dispute over the
payment of indemnification pursuant to the provisions of Article VI.

                                   ARTICLE X
                            MISCELLANEOUS PROVISIONS

      10.1 Notices. All notices or advices required or permitted to be given by
or pursuant to this Agreement, shall be given in writing. All such notices and
advices shall be (i) delivered personally, (ii) delivered by facsimile or
delivered by U.S. registered or certified mail, return receipt requested mail,
or (iii) delivered for overnight delivery by a nationally recognized overnight
courier service. Such notices and advices shall be deemed to have been given (i)
on the date of delivery if delivered personally or by facsimile, (ii) on the
third Business Day following the date of mailing if mailed by U.S. registered or
certified mail, return receipt requested, or (iii) on the date of receipt if
delivered for overnight delivery by a nationally recognized overnight courier
service. All such notices and advices and all other communications related to
this Agreement shall be given as follows:

            If to RESERVES:

            Ensource Reserves Management LLC
            7500 San Felipe, Suite 440
            Houston, Texas 77063
            Telephone: 713-659-1794
            Fax: 713-659-1799

            If to MANAGER:

            Ensource Energy Company LLC
            7500 San Felipe, Suite 440
            Houston, Texas 77063

                                      -17-
<PAGE>

            Attn: President
            Telephone: 713-659-1794
            Fax: 713-659-1799

or to such other address as the party may have furnished to the other parties in
accordance herewith, except that notice of change of addresses shall be
effective only upon receipt.

      10.2 Governing Law. This Agreement shall be subject to, and interpreted by
and in accordance with, the laws (excluding conflict of law provisions) of the
State of Texas.

      10.3 Attorneys' Fees and Expenses. In any action brought by a Party to
enforce the obligations of the other Party, the prevailing Party shall be
entitled to collect from the opposing Party to such action such Party's
reasonable litigation costs and attorneys' fees and expenses (including court
costs, reasonable fees of accountants and experts and other expenses incidental
to the litigation).

      10.4 Entire Agreement. This Agreement is the entire Agreement of the
Parties respecting the subject matter hereof. There are no other agreements,
representations or warranties, whether oral or written, respecting the subject
matter hereof, and this Agreement supersedes and replaces any such prior
agreements, representations or warranties.

      10.5 Jointly Drafted. This Agreement, and all the provisions of this
Agreement, shall be deemed drafted by both of the Parties, and shall not be
construed against either Party on the basis of that Party's role in drafting
this Agreement.

      10.6 Further Assurances. In connection with this Agreement, each Party
shall execute and deliver any additional documents and instruments and perform
any additional acts that may be necessary or appropriate to effectuate and
perform the provisions of this Agreement.

      10.7 Successors and Assigns. This Agreement may not be assigned by either
Party without the prior written consent of the other Party. This Agreement shall
be binding upon and shall inure to the benefit of the Parties and their
respective successors and permitted assigns.

      10.8 No Third Party Beneficiaries. Nothing in this Agreement (except as
provided in Article VI) shall provide any benefit to any Third Party or entitle
any Third Party to any claim, cause of action, remedy or right of any kind, it
being the intent of the Parties that this Agreement shall not be construed as a
third-party beneficiary contract.

      10.9 Relationship of the Parties. Except as provided in Section 3.1,
nothing in this Agreement shall be construed to create a partnership or joint
venture, nor to authorize either Party to act as agent for or representative of
the other Party. Except as provided in Section 3.1, each Party shall be deemed
an independent contractor and neither Party shall act as, or hold itself out as
acting as, agent for any other Party.

      10.10 No Waiver. A Party to this Agreement may decide not to require, or
fail to require, full or timely performance of any obligation arising under this
Agreement. The decision not to require, or failure of a Party to require, full
or timely performance of any obligation arising under this Agreement (whether on
a single occasion or on multiple occasions) shall not be

                                      -18-
<PAGE>

deemed a waiver of any such obligation. No such decisions or failures shall give
rise to any claim of estoppel, laches, course of dealing, amendment of this
Agreement by course of dealing or other defense of any nature to any obligation
arising hereunder.

      10.11 Amendments. This Agreement may be amended or modified only in a
writing signed by both Parties that specifically references this Agreement.

      10.12 Time of the Essence. Time is of the essence with respect to each
obligation arising under this Agreement.

      10.13 Unenforceability. In the event any provision of this Agreement, or
the application of such provision to any person or set of circumstances, shall
be determined to be invalid, unlawful or unenforceable to any extent for any
reason, the remainder of this Agreement, and the application of such provision
to Persons or circumstances other than those as to which it is determined to be
invalid, unlawful or unenforceable, shall not be affected and shall continue to
be enforceable to the fullest extent permitted by law.

      10.14 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which
together shall constitute but a single agreement.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                      -19-
<PAGE>

      IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly
adopted by them as of the date set forth above.

                                    "MANAGER"

                                    ENSOURCE ENERGY COMPANY LLC

                                    By:_________________________________________
                                    Name:_______________________________________
                                    Title:______________________________________
                                    Date:_______________________________________

                                    "RESERVES"

                                    ENSOURCE RESERVES MANAGEMENT LLC

                                        By: Ensource Energy Partners LP

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________
                                            Date:_______________________________

<PAGE>

                                    EXHIBIT A

                               MANAGER'S INSURANCE

      Manager shall at all times, during the term of this Agreement, procure and
maintain with responsible insurance companies, the following minimum types and
coverages of insurance, and shall name as an additional insured (other than with
respect to worker's compensation insurance) Reserves, together with a full
waiver of subrogation against Reserves with respect thereto:

1.    Workers Compensation Insurance and Employers Liability Insurance in
      compliance with all applicable federal and state laws where Reserves
      operates.

2.    Onshore Property Physical Damage Insurance - replacement cost insurance
      with $7,500 deductible per occurrence. Like kind and quality.

3.    Directors and Officers Liability Insurance with aggregate limit of $10
      million, Employment Practices claims deductible of $75,000, Securities
      Claims deductible of $150,000, all other claims deductible of $150,000.

4.    Comprehensive General Liability Insurance with combined single limit of
      not less than $1 million per occurrence, $2 million in the aggregate and
      $50,000 deductible. This policy shall be endorsed to provide coverage for:
      explosion, collapse and underground damage hazards to property of others
      contractual liability, disposal well operations, Louisiana pollutant and
      pollutions examples, maritime operations and products and completed
      operations.

                                    EXH-A-1
<PAGE>

                                    EXHIBIT B

                               DISPUTE RESOLUTION

1. Mediation. Either Party may initiate non-binding mediation by sending notice
in writing to the other Party identifying the issues in dispute and requesting
that they be resolved through mediation and proposing a neutral mediator. The
Party receiving the request for mediation shall have 7 business days after
receipt of the request to accept or reject the mediation request and to respond
to the initiating Party's suggestion of a mediator.

2. Binding Arbitration.

      (a) Any dispute arising out of or relating to this Agreement, including
claims sounding in contract, tort, statutory or otherwise (a "Dispute"), shall
be settled exclusively and finally by arbitration in accordance with this
EXHIBIT B.

      (b) Such arbitration shall be governed by and conducted pursuant to the
Federal Arbitration Act (including case law), except as expressly provided
otherwise in this Agreement. The making, validity, construction and
interpretation of this EXHIBIT B, and all procedural aspects of the arbitration
conducted pursuant hereto, shall be decided by the arbitrators. Except as
modified by this Agreement the arbitration shall be conducted in accordance with
the Federal Arbitration Act and, to the extent an issue is not addressed by the
federal law of arbitration, by the Commercial Arbitration Rules of the American
Arbitration Association (collectively, the "Rules").

      (c) The arbitrators shall permit discovery and rule on matters of
confidentiality as they determine is appropriate in the circumstances.

      (d) All arbitration proceedings hereunder shall be conducted in Houston,
Texas or such other location as the parties to such Dispute shall mutually
agree.

      (e) All arbitration proceedings hereunder shall be before a panel of 3
arbitrators consisting of individuals (which can include lawyers), having at
least 10 years of experience in or relating to the oil and gas industry. Within
30 days of the notice of initiation of the arbitration procedure, each Party
shall select 1 arbitrator. If either Party shall fail to select an arbitrator
within the required time, the other Party (that has selected an arbitrator)
shall select 2 arbitrators. The 2 arbitrators so selected shall select a third
arbitrator, failing agreement on which, the third arbitrator shall be selected
in accordance with the Rules.

      (f) In deciding the substance of the Dispute, the arbitrators shall refer
to the substantive laws of the State of Texas for guidance (excluding
choice-of-law principles that might call for the application of the laws of
another jurisdiction).

      (e) The arbitrators shall conduct an initial hearing as soon as reasonably
practicable but in no event later than 60 days after appointment of the third
arbitrator, and render a final decision completely disposing of the Dispute that
is the subject of such proceedings as soon as reasonably practicable but in no
event later than 15 days after the final hearing.

                                    EXH-B-1
<PAGE>

      (g) Notwithstanding any other provision in this Agreement to the contrary,
the Parties expressly agree that the arbitrators shall have absolutely no
authority to award consequential, incidental, special, treble, exemplary or
punitive damages of any type under any circumstances regardless of whether such
damages may be available under Texas law, or any other laws, or under the
Federal Arbitration Act or the Rules.

      (h) The Parties shall request that final decision of the arbitrators be in
writing, set forth the reasons for such final decision, and if the arbitrators
award monetary damages to a party, contain a certification by the arbitrators
that they have not included any consequential, incidental, special, treble,
exemplary or punitive damages. To the fullest extent permitted by law, the
arbitration proceeding and the arbitrators' decision and award shall be
maintained in confidence by the Parties and the Parties shall instruct the
arbitrators to likewise maintain such matters in confidence.

      (i) The fees and expenses of the arbitrators shall be borne equally by the
parties, but the decision of the arbitrators may include such award of the
arbitrators' expenses and of other costs.

      (j) The decision and award of the arbitrators shall be binding upon the
Parties and final and non-appealable to the maximum extent permitted by law, and
judgment thereon may be entered in a court of competent jurisdiction and
enforced by any Party as a final judgment of such court.

                                    EXH-B-2

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