Document:

Exhibit
      10.9

    

    PLEDGE
      AGREEMENT

    

    THIS
      PLEDGE AGREEMENT,
      made as
      of February 14, 2008 (this “Agreement”),
      is
      between SONTERRA
      OIL & GAS, INC.
      (f/k/a
      Sonterra Resources, Inc.), a Delaware corporation (“Pledgor”),
      and
VIKING
      ASSET MANAGEMENT LLC,
      a
      California limited liability company, in its capacity as collateral agent for
      Buyer identified below (in such capacity, together with its successors and
      assigns, the “Pledgee”).
      

    

    WHEREAS:

    

    A. Pledgor,
      The
      Longview Fund, L.P., a California limited partnership (“Buyer”)
      and
      certain officers of Pledgor are parties to that certain Amended and Restated
      Securities Purchase Agreement, dated effective as of July 9, 2007 (as amended,
      restated, supplemented, or otherwise modified from time to time, the
“Purchase
      Agreement”),
      pursuant to which Buyer purchased (i) 333 shares (the “New
      Sonterra Shares”)
      of
      common stock, no par value, of Pledgor (“Sonterra
      Common Stock”);
      for
      an aggregate amount of $9,990, which shares constitute 100% of the issued and
      outstanding Capital Stock of Pledgor, and (ii) a senior secured note of Pledgor
      in the initial principal amount of $322,500 (the “Deposit
      Note”).

    

    B. Contemporaneously
      with the execution and delivery of that certain Securities Exchange and
      Additional Note Purchase Agreement between Sonterra Resources, Inc. (f/k/a
      River
      Capital Group, Inc.), a Delaware corporation (“Sonterra”)
      and
      Buyer, dated as of August 3, 2007 (as amended by the February 2008 Amendment
      Agreement, dated as of February 14, 2008, and as may be further amended,
      modified, restated or supplemented and in effect from time to time, the
“Exchange
      Agreement”),
      the
      transactions contemplated by the Purchase Agreement to occur at the Equity
      Closing (as defined in the Purchase Agreement) and the transactions contemplated
      by the Cinco Purchase Agreement were consummated; without limiting the
      foregoing, pursuant to the Purchase Agreement, Buyer purchased from Pledgor
      a
      senior secured note of Pledgor in the initial principal amount of $5,990,010
      (of
      which $322,500 represented refinancing of the Deposit Note, which was then
      being
      surrendered to Pledgor) (as amended, restated, supplemented, or otherwise
      modified from time to time, the “Sonterra
      Equity Note”)
      and a
      warrant to purchase 50 shares of Sonterra Common Stock (as amended, restated,
      supplemented, or otherwise modified from time to time, the “Sonterra
      Warrants”).

    

    C. At
      the
      Flash Acquisition Closing (as defined in the Purchase Agreement), the
      transactions contemplated by the Purchase Agreement to occur at the Flash
      Acquisition Closing and the transactions contemplated by the Flash Purchase
      Agreement were consummated subject to the terms and conditions of the Purchase
      Agreement; without limiting the foregoing, pursuant to the Purchase Agreement,
      at the Flash Acquisition Closing Buyer purchased an additional senior secured
      note of Pledgor in the initial principal amount of $2,000,000 (as amended,
      restated, supplemented, or otherwise modified from time to time, the
“Sonterra
      Non-Equity Note”).

    

    
      
        
        

      

      
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    D. At
      the
      Exchange Closing, subject to the terms and conditions thereof, Buyer (i) is
      exchanging all of its Sonterra Common Stock and the Sonterra Equity Note for
      common stock of Sonterra, par value $0.001 per share (the common stock of
      Sonterra being referred to herein as “RCGI
      Common Stock”;
      and
      any shares thereof being referred to herein as “RCGI
      Common Shares”)
      (the
      RCGI Common Shares received by Buyer in such exchange being referred to as
      the
“New
      RCGI Common Shares”),
      (ii)
      is exchanging the Sonterra Warrant for a warrant (such warrant, together with
      any warrants or other securities issued in exchange or substitution therefor
      or
      replacement thereof, and as any of the same may be amended or modified and
      in
      effect from time to time, the “RCGI
      Warrant”)
      to
      purchase RCGI Common Shares (subject to adjustment as provided in the RCGI
      Wararant) (the “Warrant
      Shares”),
      which
      RCGI Warrant shall have a term of five years and be exercisable into the Warrant
      Shares at a price per Warrant Share (the “Warrant
      Exercise Price”)
      equal
      to 110% of the quotient of $6,000,000 divided by the number of New RCGI Common
      Shares issued to Buyer at the Exchange Closing Closing (subject to adjustment
      as
      provided in the RCGI Warrant); and (iii) is exchanging the Sonterra Non-Equity
      Note, if issued, for a senior secured note of Sonterra in an initial principal
      amount equal to the principal amount owing under the Sonterra Non-Equity Note
      on
      the Exchange Closing Date (such note, together with any promissory notes or
      other securities issued in exchange or substitution therefor or replacement
      thereof, and as any of the same may be amended or modified from time to time,
      the “Initial
      RCGI Note”).

    

    E. Subject
      to
      the terms and conditions set forth in the Exchange Agreement, during the
      Additional Note Issuance Period (as defined therein), Sonterra will have the
      option to sell, and if Sonterra exercises such option Buyer shall be obligated
      to purchase, additional senior secured notes (including any promissory notes
      or
      other securities issued in exchange or substitution for such senior secured
      notes or replacement thereof, and as any of the same may be amended, restated,
      modified or supplemented and in effect from time to time, the “Additional
      RCGI Notes”;
      and,
      collectively with the Initial RCGI Note, the “Notes”),
      each
      with a maturity date of August 31, 2010, in an original aggregate principal
      amount of up to the result of $10,000,000 minus the original principal amount
      of
      the Initial RCGI Note.

    

    F. The
      Pledgor legally and beneficially owns one hundred percent (100%) of the issued
      and outstanding shares of Capital Stock of Sonterra Operating, Inc., a Delaware
      corporation (“Operations”;
      Operations and any other corporation or other entity, the stock or other equity
      interests and securities of which are owned or acquired by Pledgor and described
      on an addendum hereto from time to time executed by Pledgor in form and
      substance satisfactory to Pledgee, is referred to herein as a “Pledge
      Entity”
and
      collectively as the “Pledge
      Entities”;
      provided that the parties hereto agree that, as of the date hereof, Operations
      is the only Pledged Entity).

    

    G. Pursuant
      to that certain Security Agreement dated as of July 9, 2007 between Pledgor
      and
      Pledgee (as the same may be amended, restated, modified or supplement and in
      effect from time to time, the “Security
      Agreement”),
      Pledgor has granted Pledgee, for the benefit of Buyer, a first priority security
      interest in, lien upon and pledge of its rights in the Pledgor’s Collateral (as
      defined in the Security Agreement).

    

    
      
        
        

      

      
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    H. To
      induce
      Buyer to make the Loans, and in order to secure the payment and performance
      by
      Pledgor of the Liabilities (as defined in the Security Agreement), Pledgor
      has
      agreed to pledge to Pledgee all of the capital stock and other equity interests
      and securities of the Pledge Entities now or hereafter owned or acquired by
      Pledgor to secure the Liabilities (as defined in the Security
      Agreement).

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and in order to induce Buyer to purchase the
      Notes
      under the Exchange Agreement and for other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, Pledgor hereby agrees
      with Pledgee as follows:

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    
      	XXX.	
              Defined
                Terms.
                Unless otherwise defined herein, all capitalized terms used herein
                shall
                have the meanings given them in the Exchange
                Agreement. 

            

    

     

    
      	XXXI.	
              Pledge.

            

    

     

    
      	A.	
              Pledgor
                hereby pledges, assigns, hypothecates, delivers and grants to Pledgee,
                for
                the benefit of itself and Buyer, a first lien on and first priority
                perfected security interest in (i) all of the Capital Stock or other
                equity interests of the Pledge Entities now owned or hereafter acquired
                by
                Pledgor (collectively, the “Pledged
                Shares”),
                (ii) all other property hereafter delivered to, or in the possession
                or in
                the custody of, Pledgee, in substitution for or in addition to the
                Pledged
                Shares, (iii) any other property of Pledgor described in Section
                4
                below or otherwise, whether now or hereafter delivered to, or in
                the
                possession or custody of Pledgor, and (iv) all proceeds of the collateral
                described in the preceding clauses
                (i),
                (ii)
                and (iii)
                (the collateral described in clauses
                (i)
                through (iv)
                of
                this Section
                2
                being collectively referred to as the “Pledged
                Collateral”),
                as collateral security for the prompt and complete payment and performance
                when due (whether at the stated maturity, by acceleration or otherwise)
                of
                the Liabili-ties (as defined in the Security Agreement). All of the
                Pledged Shares now owned by Pledgor which are presently represented
                by
                certificates are listed on Exhibit A
                hereto, which certificates, with undated assignments separate from
                certificates or stock powers duly executed in blank by Pledgor and
                irrevocable proxies, are being delivered to Pledgee simultaneously
                herewith. Upon the creation or acquisition of any new Pledged Shares,
                Pledgor shall execute an Addendum in the form of Exhibit
                B
                attached hereto (a “Pledge
                Addendum”).
                Any Pledged Collateral described in a Pledge Addendum executed by
                Pledgor
                shall thereafter be deemed to be listed on Exhibit
                A
                hereto. Pledgee shall maintain possession and custody of the certificates
                representing the Pledged Shares and any additional Pledged
                Collateral.

            

    

     

    
      	B.	
              Pledgor
                shall cause each Pledged Share consisting of either (i) a membership
                interest in a Person that is a limited liability company or (ii)
                a
                partnership interest in a Person that is a partnership (if any) to
                be
                “securities” governed by Article 8 of the UCC at all times. Pledgor shall
                cause the applicable Persons to issue certificates evidencing such
                membership interests or partnership interests (if any) to Pledgor.
                Pledgor
                shall not cause and shall not permit any Pledged Entity which is
                not a
                corporation to “opt-out” of Article 8 of the UCC. Pledgor shall not take,
                and shall not permit any Pledged Entity which is not a corporation
                to
                take, any actions to cause the capital stock, membership interests,
                partnership interests or similar equity interests of such Pledged
                Entity
                to cease to be classified as “securities” governed by Article 8 of the
                UCC.

            

    

     

    
      	XXXII.	
              Representations
                and Warranties of Pledgor. Pledgor
                represents and warrants to Pledgee, and covenants with Pledgee,
                that:

            

    

     

    
      	A.	
              Exhibit
                A
                sets forth (i) the authorized capital stock or other equity interests
                of
                each Pledge Entity, (ii) the number of shares of capital stock or
                other
                equity interests of each Pledge Entity that are issued and outstanding
                as
                of the date hereof, and (iii) the percentage of the issued and outstanding
                shares of capital stock or other equity interests of each Pledge
                Entity
                held by Pledgor. Pledgor is the record and beneficial owner of, and
                has
                good and marketable title to, the Pledged Shares, and such shares
                are and
                will remain free and clear of all pledges, liens, security interests
                and
                other encumbrances and restrictions whatsoever, except the liens
                and
                security interests in favor of Pledgee created by this
                Agreement;

            

    

     

    
      	B.	
              Except
                as set forth on Exhibit
                A,
                there are no outstanding options, warrants or other similar agreements
                with respect to the Pledged Shares or any of the other Pledged
                Collateral;

            

    

     

    
      	C.	
              this
                Agreement is the legal, valid and binding obligation of Pledgor,
                enforceable against Pledgor in accordance with its terms except to
                the
                extent that such enforceability is subject to applicable bankruptcy,
                insolvency, reorganization, fraudulent conveyance and moratorium
                laws and
                other laws of general application affecting enforcement of creditors’
                rights generally, or the availability of equitable remedies, which
                are
                subject to the discretion of the court before which an action may
                be
                brought;

            

    

     

    
      	D.	
              the
                Pledged Shares have been duly and validly authorized and issued,
                are fully
                paid and non-assessable, and the Pledged Shares listed on Exhibit
                A
                constitute all of the issued and outstanding capital stock or other
                equity
                interests of the Pledge Entities;

            

    

     

    
      	E.	
              no
                consent, approval or authorization of or designation or filing with
                any
                governmental or regulatory authority on the part of Pledgor is required
                in
                connection with the pledge and security interest granted under this
                Agreement;

            

    

     

    
      	F.	
              the
                execution, delivery and performance of this Agreement will not violate
                any
                provision of any applicable law or regulation or of any order, judgment,
                writ, award or decree of any court, arbitrator or governmental authority,
                domestic or foreign, which are applicable to Pledgor, or of the articles
                or certificate of incorporation, bylaws or
                any other similar organizational documents of
                Pledgor or any Pledge Entity or of any securities issued by Pledgor
                or any
                Pledge Entity or of any mortgage, indenture, lease, contract, or
                other
                agreement, instrument or undertaking to which Pledgor or any Pledge
                Entity
                is a party or which is binding upon Pledgor or any Pledge Entity
                or upon
                any of the assets of Pledgor or any Pledge Entity, and will not result
                in
                the creation or imposition of any lien, charge or encumbrance on
                or
                security interest in any of the assets of Pledgor or any Pledge Entity,
                except as otherwise contemplated by this
                Agreement;

            

    

     

    
      	G.	
              assuming
                the Pledgee retains control of and holds all certificates and executed
                stock powers for the Pledged Shares and the Pledged Collateral, the
                pledge, assignment and delivery of the Pledged Shares and the other
                Pledged Collateral pursuant to this Agreement creates a valid first
                lien
                on and perfected first priority security interest in such Pledged
                Shares
                and Pledged Collateral and the proceeds thereof in favor of Pledgee,
                subject to no prior pledge, lien, mortgage, hypothecation, security
                interest, charge, option or encumbrance or to any agreement purporting
                to
                grant to any third party a security interest in the property or assets
                of
                Pledgor which would include the Pledged Shares or any other Pledged
                Collateral. Until this Agreement is terminated pursuant to Section
                11
                hereof, Pledgor covenants and agrees that it will defend, for the
                benefit
                of Pledgee, Pledgee’s right, title and security interest in and to the
                Pledged Shares, the other Pledged Collateral and the proceeds thereof
                against the claims and demands of all other persons or entities;
                and

            

    

     

    
      	H.	
              Neither
                Pledgor nor any Pledged Entity (i) will become a person whose property
                or
                interests in property are blocked or subject to blocking pursuant
                to
                Section 1 of Executive Order 13224 of September 23, 2001 Blocking
                Property
                and Prohibiting Transactions with Persons Who Commit, Threaten to
                Commit
                or Support Terrorism (66 Fed. Reg. 49079(2001), (ii) will engage
                in any
                dealings or transactions prohibited by Section 2 of such executive
                order,
                or (iii) will otherwise become a person on the list of Specially
                Designated Nationals and Blocked Persons or subject to the limitations
                or
                prohibitions under any other Office of Foreign Asset Control regulation
                or
                executive order.

            

    

     

    
      	XXXIII.	
              Dividends,
                Distributions, Etc. If,
                prior to irrevocable repayment in full in cash of the Liabilities,
                Pledgor
                shall receive any certificate (including, without limitation, any
                certificate representing a dividend or a distribution in connection
                with
                any reclassification, increase or reduction of capital, or issued
                in
                connection with any reorganization, merger or consolidation), or
                any
                options or rights, whether as an addition to, in substitution for,
                or in
                exchange for any of the Pledged Shares or otherwise, Pledgor agrees,
                in
                each case, to accept the same as Pledgee’s agent and to hold the same in
                trust for Pledgee, and to deliver the same promptly (but in any event
                within five Business Days) to Pledgee in the exact form received,
                with the
                endorsement of Pledgor when necessary and/or with appropriate undated
                assignments separate from certificates or stock powers duly executed
                in
                blank, to be held by Pledgee subject to the terms hereof, as additional
                Pledged Collateral. Pledgor shall promptly deliver to Pledgee (i)
                a Pledge
                Addendum with respect to such additional certificates, and (ii) any
                financing statements or amendments to financing statements as requested
                by
                Pledgee in writing. Pledgor hereby authorizes Pledgee to attach each
                such
                Pledge Addendum to this Agreement. In case any distribution of capital
                shall be made on or in respect of the Pledged Shares or any property
                shall
                be distributed upon or with respect to the Pledged Shares pursuant
                to the
                recapitalization or reclassification of the capital of the issuer
                thereof
                or pursuant to the reorganization thereof, the property so distributed
                shall be delivered to Pledgee to be held by it as additional Pledged
                Collateral. Except as provided in Section
                5(b)
                below, all sums of money and property so paid or distributed in respect
                of
                the Pledged Shares which are received by Pledgor shall, until paid
                or
                delivered to Pledgee, be held by Pledgor in trust as additional Pledged
                Collateral.

            

    

     

    
      	XXXIV.	
              Voting
                Rights; Dividends; Certificates.

            

    

     

    
      	A.	
              So
                long as no Event of Default (as defined in the Notes) has occurred
                and is
                continuing, Pledgor shall be entitled (subject to the other provisions
                hereof, including, without limitation, Section
                8
                below) to exercise its voting and other consensual rights with respect
                to
                the Pledged Shares and otherwise exercise the incidents of ownership
                thereof in any manner not inconsistent with this Agreement or the
                Exchange
                Agreement and the other Transaction Documents. Pledgor hereby grants
                to
                Pledgee or its nominee, an irrevocable proxy to exercise all voting
                and
                corporate rights relating to the Pledged Shares in any instance,
                which
                proxy shall be effective, at the discretion of Pledgee, upon the
                occurrence and during the continuance of an Event of Default. Upon
                the request of Pledgee at any time, Pledgor agrees to deliver to
                Pledgee
                such further evidence of such irrevocable proxy or such further
                irrevocable proxies to vote the Pledged Shares as Pledgee may
                request.

            

    

     

    
      	B.	
              So
                long as no Event of Default shall have occurred and be continuing,
                Pledgor
                shall be entitled to receive cash dividends or other distributions
                made in
                respect of the Pledged Shares, to the extent permitted to be made
                pursuant
                to the terms of the Notes. Upon the occurrence and during the continuance
                of an Event of Default, in the event that Pledgor, as record and
                beneficial owner of the Pledged Shares, shall have received or shall
                have
                become entitled to receive, any cash dividends or other distributions
                in
                the ordinary course, Pledgor shall deliver to Pledgee, and Pledgee
                shall
                be entitled to receive and retain, for the benefit of Pledgee and
                Buyer,
                all such cash or other distributions as additional security for the
                Liabilities.

            

    

     

    
      	C.	
              Subject
                to any sale or other disposition by Pledgee of the Pledged Shares,
                any
                other Pledged Collateral or other property pursuant to this Agreement,
                upon the indefeasible full payment in cash, satisfaction and termination
                of all of the Liabilities and the termination of this Agreement pursuant
                to Section
                11
                hereof and of the liens and security interests hereby granted, the
                Pledged
                Shares, the other Pledged Collateral and any other property then
                held as
                part of the Pledged Collateral in accordance with the provisions
                of this
                Agreement shall be returned to Pledgor or to such other persons or
                entities as shall be legally entitled
                thereto.

            

    

     

    
      	D.	
              Pledgor
                shall cause all Pledged Shares to be certificated at all times while
                this
                Agreement is in effect.

            

    

     

    
      	XXXV.	
              Rights
                of Pledgee. Pledgee
                shall not be liable for failure to collect or realize upon the Liabilities
                or any collateral security or guaranty therefor, or any part thereof,
                or
                for any delay in so doing, nor shall Pledgee be under any obligation
                to
                take any action whatsoever with regard thereto. Any or all of the
                Pledged
                Shares held by Pledgee hereunder may, if an Event of Default has
                occurred
                and is continuing, without notice, be registered in the name of Pledgee
                or
                its nominee, and Pledgee or its nominee may thereafter without notice
                exercise all voting and corporate rights at any meeting with respect
                to
                any Pledge Entity and exercise any and all rights of conversion,
                exchange,
                subscription or any other rights, privileges or options pertaining
                to any
                of the Pledged Shares as if it were the absolute owner thereof, including,
                without limitation, the right to vote in favor of, and to exchange
                at its
                discretion any and all of the Pledged Shares upon, the merger,
                consolidation, reorganization, recapitalization or other readjustment
                with
                respect to any Pledge Entity or upon the exercise by any Pledge Entity,
                Pledgor or Pledgee of any right, privilege or option pertaining to
                any of
                the Pledged Shares, and in connection therewith, to deposit and deliver
                any and all of the Pledged Shares with any committee, depository,
                transfer
                agent, registrar or other designated agency upon such terms and conditions
                as Pledgee may reasonably determine, all without liability except
                to
                account for property actually received by Pledgee, but Pledgee shall
                have
                no duty to exercise any of the aforesaid rights, privileges or options
                and
                shall not be responsible for any failure to do so or delay in so
                doing.

            

    

     

    
      	XXXVI.	
              Remedies. Upon
                the occurrence and during the continuance of an Event of Default,
                Pledgee
                may exercise in respect of the Pledged Collateral, in addition to
                other
                rights and remedies provided for herein or otherwise available to
                it, all
                the rights and remedies of a secured party under the Uniform Commercial
                Code (“UCC”)
                in effect in the State of New York from time to time, whether or
                not the
                UCC applies to the affected Pledged Collateral (or the Uniform Commercial
                Code as in effect in any other relevant jurisdiction). Pledgee also,
                without demand of performance or other demand, advertisement or notice
                of
                any kind (except the notice specified below of time and place of
                public or
                private sale) to or upon Pledgor or any other person or entity (all
                and
                each of which demands, advertisements and/or notices are hereby expressly
                waived), may upon the occurrence and during the continuance of an
                Event of
                Default forthwith collect, receive, appropriate and realize upon
                the
                Pledged Collateral, or any part thereof, and/or may forthwith date
                and
                otherwise fill in the blanks on any assignments separate from certificates
                or stock power or otherwise sell, assign, give an option or options
                to
                purchase, contract to sell or otherwise dispose of and deliver said
                Pledged Collateral, or any part thereof, in one or more portions
                at one or
                more public or private sales or dispositions, at any exchange or
                broker’s
                board or at any of Pledgee’s offices or elsewhere upon such terms and
                conditions as Pledgee may deem advisable and at such prices as it
                may deem
                best, for any combination of cash and/or securities or other property
                or
                on credit or for future delivery without assumption of any credit
                risk,
                with the right to Pledgee upon any such sale, public or private,
                to
                purchase the whole or any part of said Pledged Collateral so sold,
                free of
                any right or equity of redemption in Pledgor, which right or equity
                is
                hereby expressly waived or released. Pledgee shall apply the net
                proceeds
                of any such collection, recovery, receipt, appropriation, realization,
                sale or disposition, after deducting all costs and expenses of every
                kind
                incurred therein or incidental to the safekeeping of any and all
                of the
                Pledged Collateral or in any way relating to the rights of Pledgee
                hereunder, including attorneys’ fees and legal expenses, to the payment,
                in whole or in part, of the Liabilities, in such order as Pledgee
                may
                elect. Pledgor shall remain liable for any deficiency remaining unpaid
                after such application. Only after so paying over such net proceeds
                and
                after the payment by Pledgee of any other amount required by any
                provision
                of law, including, without limitation, Section 9-608 of the UCC,
                need
                Pledgee account for the surplus, if any, to Pledgor. Pledgor agrees
                that
                Pledgee need not give more than ten (10) days’ notice of the time and
                place of any public sale or of the time after which a private sale
                or
                other intended disposition is to take place and that such notice
                is
                reasonable notification of such matters. No notification need be
                given to
                Pledgor if it has signed after default a statement renouncing or
                modifying
                any right to notification of sale or other intended disposition.
                

            

    

     

    
      	XXXVII.	
              No
                Disposition, Etc. Until
                the irrevocable payment in full in cash of the Liabilities, Pledgor
                agrees
                that it will not sell, assign, transfer, exchange, or otherwise dispose
                of, or grant any option with respect to, the Pledged Shares or any
                other
                Pledged Collateral, nor will Pledgor create, incur or permit to exist
                any
                pledge, lien, mortgage, hypothecation, security interest, charge,
                option
                or any other encumbrance with respect to any of the Pledged Shares
                or any
                other Pledged Collateral, or any interest therein, or any proceeds
                thereof, except for the lien and security interest of Pledgee provided
                for
                by this Agreement and the Security Agreement and Permitted Liens,
                as
                defined in the Exchange
                Agreement.

            

    

     

    
      
        
        

      

      
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      	XXXVIII.	
              Sale
                of Pledged Shares.

            

    

     

    
      	A.	
              Pledgor
                recognizes that Pledgee may be unable to effect a public sale or
                disposition (including, without limitation, any disposition in connection
                with a merger of a Pledge Entity) of any or all the Pledged Shares
                by
                reason of certain prohibitions contained in the Securities Act of
                1933, as
                amended (the “1933
                Act”),
                and applicable state securities laws, but may be compelled to resort
                to
                one or more private sales or dispositions thereof to a restricted
                group of
                purchasers who will be obliged to agree, among other things, to acquire
                such securities for their own account, for investment and not with
                a view
                to the distribution or resale thereof. Pledgor acknowledges and agrees
                that any such private sale or disposition may result in prices and
                other
                terms (including the terms of any securities or other property received
                in
                connection therewith) less favorable to the seller than if such sale
                or
                disposition were a public sale or disposition and, notwithstanding
                such
                circumstances, agrees that any such private sale or disposition shall
                be
                deemed to be reasonable and affected in a commercially reasonable
                manner.
                Pledgee shall be under no obligation to delay a sale or disposition
                of any
                of the Pledged Shares in order to permit Pledgor or a Pledge Entity
                to
                register such securities for public sale under the 1933 Act, or under
                applicable state securities laws, even if Pledgor or a Pledge Entity
                would
                agree to do so.

            

    

     

    
      	B.	
              Pledgor
                further agrees to do or cause to be done all such other acts and
                things as
                may be reasonably necessary to make such sales or dispositions of
                the
                Pledged Shares valid and binding and in compliance with any and all
                applicable laws, regulations, orders, writs, injunctions, decrees
                or
                awards of any and all courts, arbitrators or governmental
                instrumentalities, domestic or foreign, having jurisdiction over
                any such
                sales or dispositions, all at Pledgor's expense; provided that Pledgor
                shall not have any obligation to register the Pledged Shares as securities
                under the 1933 Act or the applicable state securities laws solely
                by
                virtue of this Section
                9(b).
                Pledgor further agrees that a breach of any of the covenants contained
                in
                Sections
                4,
                5(a),
                5(b),
                8,
                9
                and 24
                will cause irreparable injury to Pledgee and that Pledgee has no
                adequate
                remedy at law in respect of such breach and, as a consequence, agrees,
                without limiting the right of Pledgee to seek and obtain specific
                performance of other obligations of Pledgor contained in this Agreement,
                that each and every covenant referenced above shall be specifically
                enforceable against Pledgor, and Pledgor hereby waives and agrees
                not to
                assert any defenses against an action for specific performance of
                such
                covenants.

            

    

     

    
      	C.	
              Pledgor
                further agrees to indemnify and hold harmless Buyer, Pledgee and
                their
                respective successors and assigns, their respective officers, directors,
                employees, attorneys and agents, and any person or entity in control
                of
                any thereof, from and against any loss, liability, claim, damage
                and
                expense, including, without limitation, legal fees and expenses (in
                this
                paragraph collectively called the “Indemnified
                Liabilities”),
                under federal and state securities laws or otherwise insofar as such
                Indemnified Liability (i) arises out of or is based upon any untrue
                statement or alleged untrue statement of a material fact contained
                in any
                registration statement, prospectus or offering memorandum or in any
                preliminary prospectus or preliminary offering memorandum or in any
                amendment or supplement to any thereof or in any other writing prepared
                by
                Pledgor in connection with the offer, sale or resale of all or any
                portion
                of the Pledged Collateral unless such untrue statement of material
                fact
                was provided by Pledgee, in writing, specifically for inclusion therein,
                or (ii) arises out of or is based upon any omission or alleged omission
                to
                state therein a material fact required to be stated or necessary
                to make
                the statements therein not misleading, such indemnification to remain
                operative regardless of any investigation made by or on behalf of
                Pledgee
                or any successor thereof, or any person or entity in control of any
                thereof. In connection with a public sale or other distribution,
                Pledgor
                will provide customary indemnification to any underwriters, their
                successors and assigns, officers and directors and each person or
                entity
                who controls any such underwriter (within the meaning of the 1933
                Act). If
                and to the extent that the foregoing undertakings in this paragraph
                may be
                unenforceable for any reason, Pledgor agrees to make the maximum
                contribution to the payment and satisfaction of each of the Indemnified
                Liabilities which is permissible under applicable law. The obligations
                of
                Pledgor under this paragraph
                (c)
                shall survive any termination of this
                Agreement.

            

    

     

    
      	D.	
              Pledgor
                further agrees to waive any and all rights of subrogation it may
                have
                against a Pledge Entity upon the sale or disposition of all or any
                portion
                of the Pledged Collateral by Pledgee pursuant to the terms of this
                Agreement until the termination of this Agreement in accordance with
                Section
                11
                below.

            

    

     

    
      	XXXIX.	
              No
                Waiver; Cumulative Remedies.
                Pledgee shall not by any act, delay, omission or otherwise be deemed
                to
                have waived any of its remedies hereunder, and no waiver by Pledgee
                shall
                be valid unless in writing and signed by Pledgee, and then only to
                the
                extent therein set forth. A waiver by Pledgee of any right or remedy
                hereunder on any one occasion shall not be construed as a bar to
                any right
                or remedy which Pledgee would otherwise have on any further occasion.
                No
                course of dealing between Pledgor and Pledgee and no failure to exercise,
                nor any delay in exercising on the part of Pledgee or Buyer of, any
                right,
                power or privilege hereunder or under the other Transaction Documents
                shall impair such right or remedy or operate as a waiver thereof;
                nor
                shall any single or partial exercise of any right, power or privilege
                hereunder preclude any other or further exercise thereof or the exercise
                of any other right, power or privilege. The rights and remedies herein
                provided are cumulative and may be exercised singly or concurrently,
                and
                are not exclusive of any rights or remedies provided by law or in
                the
                Exchange Agreement.

            

    

     

    
      	XL.	
              Termination. This
                Agreement and the liens and security interests granted hereunder
                shall
                terminate and Pledgee shall return any Pledged Shares or other Pledged
                Collateral then held by Pledgee in accordance with the provisions
                of this
                Agreement to Pledgor upon the termination of the Notes and the full
                and
                complete performance and indefeasible satisfaction of all of the
                Liabilities (i) in respect of the Notes (including, without limitation,
                the indefeasible payment in full in cash of all such Liabilities)
                and (ii)
                with respect to which claims have been asserted by Pledgee and/or
                Buyer.

            

    

     

    
      	XLI.	
              Possession
                of Collateral. Beyond
                the exercise of reasonable care to assure the safe custody of the
                Pledged
                Shares in the physical possession of Pledgee pursuant hereto, neither
                Pledgee, nor any nominee of Pledgee, shall have any duty or liability
                to
                collect any sums due in respect thereof or to protect, preserve or
                exercise any rights pertaining thereto (including any duty to ascertain
                or
                take action with respect to calls, conversions, exchanges, maturities,
                tenders or other matters relating to the Pledged Collateral and any
                duty
                to take any necessary steps to preserve rights against any parties
                with
                respect to the Pledged Collateral), and shall be relieved of all
                responsibility for the Pledged Collateral upon surrendering them
                to
                Pledgor. Pledgor assumes the responsibility for being and keeping
                itself
                informed of the financial condition of a Pledge Entity and of all
                other
                circumstances bearing upon the risk of non-payment of the Liabilities,
                and
                Pledgee shall have no duty to advise Pledgor of information known
                to
                Pledgee regarding such condition or any such circumstance. Pledgee
                shall
                have no duty to inquire into the powers of a Pledge Entity or its
                officers, directors, managers, members, partners or agents thereof
                acting
                or purporting to act on its behalf.

            

    

     

    
      	XLII.	
              Taxes
                and Expenses.
                Pledgor will upon demand pay to Pledgee, (a) any taxes (excluding
                income
                taxes, franchise taxes or other taxes levied on gross earnings, profits
                or
                the like of Pledgee) payable or ruled payable by any Governmental
                Authority (as defined in the Security Agreement) in respect of this
                Agreement, together with interest and penalties, if any, and (b)
                all
                expenses, including the fees and expenses of counsel for Pledgee
                and of
                any experts and agents that Pledgee may incur in connection with
                (i) the
                administration, modification or amendment of this Agreement, (ii)
                the
                custody or preservation of, or the sale of, collection from, or other
                realization upon, any of the Pledged Collateral, (iii) the exercise
                or
                enforcement of any of the rights of Pledgee hereunder, or (iv) the
                failure
                of Pledgor to perform or observe any of the provisions
                hereof.

            

    

     

    
      	XLIII.	
              Pledgee
                Appointed Attorney-In-Fact.
                Pledgor hereby irrevocably appoints Pledgee as Pledgor’s attorney-in-fact,
                with full authority in the place and stead of Pledgor and in the
                name of
                Pledgor or otherwise, from time to time in Pledgee’s discretion, to take
                any action and to execute any instrument that Pledgee deems reasonably
                necessary or advisable to accomplish the purposes of this Agreement,
                including, without limitation, to receive, endorse and collect all
                instruments made payable to Pledgor representing any dividend, interest
                payment or other distribution in respect of the Pledged Collateral
                or any
                part thereof and to give full discharge for the same, when and to
                the
                extent permitted by this Agreement; provided that the power of attorney
                granted hereunder shall only be exercised by Pledgee after the occurrence
                and during the continuance of an Event of
                Default.

            

    

     

    
      	XLIV.	
              Governing
                Law; Jurisdiction; Jury Trial.
                All questions concerning the construction, validity, enforcement
                and
                interpretation of this Agreement shall be governed by the internal
                laws of
                the State of New York, without giving effect to any choice of law
                or
                conflict of law provision or rule (whether of the State of New York
                or any
                other jurisdiction) that would cause the application of the laws
                of any
                jurisdiction other than the State of New York. Each party hereby
                irrevocably submits to the non-exclusive jurisdiction of the state
                and
                federal courts sitting in the City of New York, borough of Manhattan,
                for
                the adjudication of any dispute hereunder or in connection herewith
                or
                with any transaction contemplated hereby or discussed herein, and
                hereby
                irrevocably waives, and agrees not to assert in any suit, action
                or
                proceeding, any claim that it is not personally subject to the
                jurisdiction of any such court, that such suit, action or proceeding
                is
                brought in an inconvenient forum or that the venue of such suit,
                action or
                proceeding is improper. Each party hereby irrevocably waives personal
                service of process and consents to process being served in any such
                suit,
                action or proceeding by mailing a copy thereof to such party at the
                address for such notices to it under this Agreement and agrees that
                such
                service shall constitute good and sufficient service of process and
                notice
                thereof. Nothing contained herein shall be deemed to limit in any
                way any
                right to serve process in any manner permitted by law. Notwithstanding
                the
                foregoing, the Pledgee may enforce its rights and remedies in any
                other
                jurisdiction applicable to the Pledged Collateral. EACH PARTY HEREBY
                IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
                A
                JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
                HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
                HEREBY.

            

    

     

    
      	XLV.	
              Counterparts.
                This Agreement may be executed in two or more identical counterparts,
                all
                of which shall be considered one and the same agreement and shall
                become
                effective when counterparts have been signed by each party and delivered
                to the other party; provided that a facsimile, .pdf or similar
                electronically transmitted signature shall be considered due execution
                and
                shall be binding upon the signatory thereto with the same force and
                effect
                as if the signature were an original
                signature.

            

    

     

    
      	XLVI.	
              Headings.
                The headings of this Agreement are for convenience of reference and
                shall
                not form part of, or affect the interpretation of, this
                Agreement.

            

    

     

    
      	XLVII.	
              Severability.
                If any provision of this Agreement shall be invalid or unenforceable
                in
                any jurisdiction, such invalidity or unenforceability shall not affect
                the
                validity or enforceability of the remainder of this Agreement in
                that
                jurisdiction or the validity or enforceability of any provision of
                this
                Agreement in any other
                jurisdiction.

            

    

     

    
      	XLVIII.	
              Entire
                Agreement; Amendments.
                This Agreement supersedes all other prior oral or written agreements
                between each Pledgor, Pledgee, Buyer and their affiliates and persons
                acting on their behalf with respect to the matters discussed herein,
                and
                this Agreement and the Transaction Documents and instruments referenced
                herein and therein contain the entire understanding of the parties
                with
                respect to the matters covered herein and
                therein.

            

    

     

    
      	XLIX.	
              Notices.
                All notices, approvals, requests, demands and other communications
                hereunder shall be delivered or made in the manner set forth in,
                and shall
                be effective in accordance with the terms of, the Exchange Agreement,
                in
                the case of communications to the Collateral Agent, directed to the
                notice
                address set forth in the Security
                Agreement.

            

    

     

    
      	L.	
              Successors
                and Assigns.
                This Agreement shall be binding upon and inure to the benefit of
                the
                parties and their respective successors and assigns, including any
                purchasers of the Notes. Pledgor shall not assign this Agreement
                or any
                rights or obligations hereunder without the prior written consent
                of
                Pledgee. Pledgee may assign its rights hereunder without the consent
                of
                Pledgor, in which event such assignee shall be deemed to be Pledgee
                hereunder with respect to such assigned
                rights.

            

    

     

    
      	LI.	
              No
                Third Party Beneficiaries.
                This Agreement is intended for the benefit of the parties hereto
                and their
                respective successors and permitted assigns, and is not for the benefit
                of, nor may any provision hereof be enforced by, any other person
                or
                entity.

            

    

     

    
      	LII.	
              Survival.
                All representations, warranties, covenants and agreements of Pledgor
                and
                Pledgee shall survive the execution and delivery of this
                Agreement.

            

    

     

    
      	LIII.	
              Further
                Assurances.
                Pledgor agrees that at any time and from time to time upon the written
                request of Pledgee, Pledgor will execute and deliver all assignments
                separate from certificates or stock powers, financing statements
                and such
                further documents and do such further acts and things as Pledgee
                may
                reasonably request consistent with the provisions hereof in order
                to carry
                out the intent and accomplish the purpose of this Agreement and the
                consummation of the transactions contemplated
                hereby.

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	LIV.	
              No
                Strict Construction.
                The language used in this Agreement will be deemed to be the language
                chosen by the parties to express their mutual intent, and no rules
                of
                strict construction will be applied against any
                party.

            

    

     

    
      	LV.	
              Pledgee
                Authorized.
                Pledgor hereby authorizes Pledgee to file one or more financing or
                continuation statements and amendments thereto (or similar documents
                required by any laws of any applicable jurisdiction) relating to
                all or
                any part of the Pledged Shares or other Pledged Collateral without
                the
                signature of Pledgor.

            

    

     

    
      	LVI.	
              Pledgee
                Acknowledgement.
                Pledgor
                acknowledges receipt of an executed copy of this Agreement. The Pledgor
                waives the right to receive any amount that it may now or hereafter
                be
                entitled to receive (whether by way of damages, fine, penalty, or
                otherwise) by reason of the failure of the Pledgee to deliver to
                the
                Pledgor a copy of any financing statement or any statement issued
                by any
                registry that confirms registration of a financing statement relating
                to
                this Agreement.

            

    

     

    
      	LVII.	
              Collateral
                Agent.
                The
                terms and provisions of Section
                5.12
                of the Security Agreement which set forth the appointment of the
                Collateral Agent and the indemnifications to which the Collateral
                Agent is
                entitled are hereby incorporated by reference herein as if fully
                set forth
                herein.

            

    

     

    [Signature
      Page Follows]

    

 

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be
      duly
      executed and delivered by their duly authorized officers on the date first
      above
      written.

    

    

     

    
      	 	
              PLEDGOR:

            
	 	 	 
	 	
              SONTERRA
                OIL & GAS, INC. (f/k/a Sonterra Resources, Inc.), a Delaware
                corporation 

            
	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Michael J. Pawelek

            
	 	
              Name:

            	
              Michael
                J. Pawelek

            
	 	
              Title:

            	
              President

            
	 	 	 

    

    

    
      	 	
              PLEDGEE:

            	 
	 	 	 
	 	
              VIKING
                ASSET MANAGEMENT LLC, a California limited liability company, in
                its capacity as collateral agent for Buyer

            
	 	 
	 	 	 
	 	
              By:

            	
              /s/
                S. Michael Rudolph

            
	 	
              Name:

            	
              S.
                Michael Rudolph

            
	 	
              Title:

            	
              Chief
                Financial Officer

            
	 	 	 

    

     

    [Signature
      Page to Pledge Agreement]

    

    
      
        
        

      

      
        7Exhibit
      10.10

    

    FIRST
      AMENDMENT TO 

    MORTGAGE,
      DEED OF TRUST, ASSIGNMENT OF PRODUCTION, SECURITY 

    AGREEMENT,
      FIXTURE FILING AND FINANCING STATEMENT

    

    FROM

    

    SONTERRA
      RESOURCES, INC.,
      a
      Delaware corporation

    

    TO

    

    WALTER
      H.
      WALNE, III,
      AS
      TRUSTEE

    

    FOR
      THE BENEFIT OF

    

    VIKING
      ASSET MANAGEMENT, LLC

    

    NOTICE
      OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE
      ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR
      RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S
      LICENSE NUMBER.

     

    A
      CARBON, PHOTOGRAPHIC, FACSIMILE OR OTHER REPRODUCTION OF THIS INSTRUMENT IS
      SUFFICIENT AS A FINANCING STATEMENT.

     

    PORTIONS
      OF THE MORTGAGED PROPERTY ARE GOODS WHICH ARE OR ARE TO BECOME AFFIXED TO OR
      FIXTURES ON THE LAND DESCRIBED IN OR REFERRED TO IN EXHIBIT
      A
      HERETO. THIS FINANCING STATEMENT IS TO BE FILED FOR RECORD OR RECORDED, AMONG
      OTHER PLACES, IN THE REAL ESTATE RECORDS OR SIMILAR RECORDS OF EACH COUNTY
      IN
      WHICH SAID LAND OR ANY PORTION THEREOF IS LOCATED. THE MORTGAGOR IS THE OWNER
      OF
      RECORD INTEREST IN THE REAL ESTATE CONCERNED. THIS INSTRUMENT IS ALSO TO BE
      INDEXED IN THE INDEX OF FINANCING STATEMENTS.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    FIRST
      AMENDMENT TO 

    MORTGAGE,
      DEED OF TRUST, ASSIGNMENT OF PRODUCTION, SECURITY 

    AGREEMENT,
      FIXTURE FILING AND FINANCING STATEMENT

     

    THIS
      FIRST AMENDMENT
      TO MORTGAGE, DEED OF TRUST, ASSIGNMENT OF PRODUCTION, SECURITY AGREEMENT,
      FIXTURE FILING AND
      FINANCING STATEMENT (this
      “Amendment”)
      is
      made as of the 29th day of August, 2007, by SONTERRA RESOURCES, INC., a Delaware
      corporation, whose address for notice is 300 East Sonterra Boulevard, Suite
      1220, San Antonio, Texas to WALTER H. WALNE, III, as Trustee, whose address
      for
      notice is 17 South Briar Hollow, Houston, Texas 77027 (“Trustee”),
      for
      the benefit of VIKING
      ASSET MANAGEMENT, LLC,
      a
      California limited liability company, 600 Montgomery Street, 44th Floor, San
      Francisco, CA 94111, on its own behalf and in its capacity as collateral agent
      for the benefit of the holders of the Notes (as defined in the Mortgage
      described below) (together with its successors and assigns, the “Mortgagee”).
      Capitalized terms used but not defined herein shall have the respective meanings
      ascribed to such terms in the Mortgage describe below.

     

    R
      E C I T A L S

     

    A. Mortgagor
      has previously executed and delivered in favor of Mortgagee
      a certain Mortgage, Deed of Trust, Assignment of Production, Security Agreement,
      Fixture Filing and Financing Statement made as of August 3, 2007, and recorded
      on
      August
      10, 2007 in the office of the County Clerk in Calhoun County, Texas as
      Instrument #107284 and on August 14, 2007 in the office of the County Clerk
      in
      Matagorda County, Texas as Instrument #03500175898001, Year 2007, No. 076321
      (the “Mortgage”),
      which
      Mortgage encumbers Mortgagor’s interest in the land legally described on
Exhibit
      A
      attached
      hereto (the “Land”),
      in
      addition to various other real and personal property pledged to the Mortgagee
      as
      more fully described in the Mortgage.

     

    B. Mortgagor
      and Mortgagee have agreed to modify the Mortgage upon the terms and conditions
      contained herein.

     

    NOW
      THEREFORE,
      in
      consideration of the premises and other good and valuable consideration, the
      receipt and legal sufficiency whereof are hereby acknowledged, the parties
      hereby agree as follows:

     

    Recitals.

     

    The
      Recitals set forth above are incorporated herein by this reference thereto
      as if
      fully set forth herein.

     

    Amendment
      of Mortgage.

     

    Effective
      as of the date hereof, Exhibit A of the Mortgage is hereby amended in its
      entirety and as so amended shall read as set forth on Exhibit A
      hereto

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    No
      Further Amendment.

     

    This
      Amendment is given solely to amend and modify the Mortgage
      as
      set
      forth herein. No further amendment or modification of the Mortgage is made
      or
      intended, and the respective terms and provisions thereof shall, as expressly
      amended and modified hereby, continue in full force and effect after the date
      hereof. The warranties, representations, covenants and agreements contained
      in
      the Mortgage as herein expressly amended, are hereby ratified, approved and
      confirmed in every respect. Mortgagor also hereby (i)
      expressly ratifies and confirms, as of the date of the Mortgage and as of the
      date hereof, the grant by Mortgagor of the lien on the Land and all of the
      other
      property and interests in property created or intended to be created by the
      Mortgage, in each case as amended and modified hereby and (ii)
      represents and warrants that Mortgagor has not created or suffered or permitted
      to exist any other lien upon or in any such property or interests in property
      subsequent to the execution and delivery of the Mortgage, other than as
      expressly permitted pursuant to the terms and provisions thereof. Mortgagor
      has
      no claims, claims of offset or causes of action against Mortgagee, and no
      defenses to its performance of all Indebtedness (as such term is defined in
      the
      Mortgage after giving effect to this Amendment).

     

    No
      Release.

     

    The
      indebtedness, liabilities and other obligations secured by the Mortgage are
      continuing obligations and nothing contained herein shall be deemed to release,
      terminate or subordinate any lien created or evidenced thereby and all such
      liens and the priority thereof shall relate back to the recordation date for
      the
      Mortgage as referenced herein. This Amendment is not intended and shall not
      be
      deemed or construed to in any way affect the enforceability or priority of
      the
      Mortgage or constitute a novation, termination or replacement of all or any
      part
      of the indebtedness, liabilities or other obligations secured
      thereby.

     

    Governing
      Law; Severability.

     

    This
      Amendment shall be governed by and construed in accordance with the laws of
      the
      State of New York. The invalidity, illegality or unenforceability of any
      provision of this Amendment shall not affect or impair the validity, legality
      or
      enforceability of the remainder of this Amendment or the Mortgage, and to this
      end, the provisions of this Amendment are declared to be severable.

     

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      Mortgagor and Mortgagee have each executed this Amendment on the date set forth
      in their respective acknowledgments hereto, to be effective as of the date
      first
      above written.

     

    
      	 	
              MORTGAGOR:

            
	 	 	 
	 	
              SONTERRA
                RESOURCES, INC.,
                a
                Delaware corporation

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Michael J. Pawelek

            
	 	
              Name:

            	
              Michael
                J. Pawelek

            
	 	
              Title:

            	
              President

            

    

    
 

     

    
 

    
      
        
          Signature
            Page to Mortgage Amendment

        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	 	
              MORTGAGEE:

            
	 	 	 
	 	
              VIKING
                ASSET MANAGEMENT, LLC, a California limited liability
                company

            
	 	 
	 	 	 
	 	
              By:

            	
              S.
                Michael Rudolph

            
	 	
              Name:

            	
              S.
                Michael Rudolph

            
	 	
              Title:

            	
              Chief
                Financial Officer

            

    

     

    
 

    

    
      
        
          Signature
            Page to Mortgage Amendment

        

      

      
        5

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    Property
      Descriptions

    

    Property
      Description (Cinco)

    

    Shark
      Prospect 

    

    

    
      	 	
              1.

            	
              Oil
                and Gas Lease dated July 1, 2003, from the State of Texas, as Lessor,
                to
                Cinco Natural Resources Corporation, as Lessee, covering Oil and
                Gas Lease
                No. M-103194, being the south one-half (S/2) of State Tract 150,
                Matagorda
                Bay, Calhoun County, Texas, containing approximately 320.0 acres,
                recorded
                in File No. 82095, Volume 349, Page 1 of the Official Records of
                Calhoun
                County, Texas.

            

    

     

    Lease
      Interest:

     

    Surface
      down to 9400' true vertical depth as seen in the Cockrell Corporation -
      Aquamarine Unit Well No. 1 (API No. 42-057-31600).

     

    37.80%
      WI
      / 29.862% NRI

     

    Rights
      between 9401' and 50' below the stratigraphic equivalent of the top of the
      9800'
      Sand, said top of the 9800' Sand being equal to 9790' TVD as seen on the
      electric log for the Cockrell Corporation - Aquamarine Unit Well No. 1 (API
      No.
      42-057-31600).

     

    30.30%
      WI
      / 23.55825% NRI

     

    Rights
      below 50' below the stratigraphic equivalent of the top o the 9800' Sand, said
      top of the 9800' Sand being equal to 9790' TVD as seen on the electric log
      for
      the Cockrell Corporation - Aquamarine Unit Well No. 1 (API No.
      42-057-31600).

     

    30.30%
      WI
      / 23.331% NRI

     

    Well
      Interest:

     

    Flash
      -
      State Tract 150 No. 1: 37.80% WI / 29.862% NRI

     

    BOSS
      -
      State Tract 150 No. 2: 36.708% WI BPO / 28.54047% NRI BPO / 30.30% WI APO /
      23.55825% NRI APO

     

    

    Ray
      Prospect

    

    
      	 	
              2.

            	
              Oil
                and Gas Lease dated October 19, 2004, from the State of Texas, by
                and
                through the Commissioner of the General Land office of the State
                of Texas,
                as Lessor, to Cinco Natural Resources Corporation, as Lessee, covering
                Oil
                and Gas Lease Number M-104265, being the South One-Half (S/2) of
                Tract
                175, Matagorda Bay, Matagorda and Calhoun Counties, Texas, containing
                approximately 320 acres as shown on the applicable Official Submerged
                Area
                Map on file in the Texas General Land Office, Austin, Texas, and
                recorded
                in the Official Records of Matagorda County, Texas, as File No. 050427,
                and recorded in the Official Records of Calhoun County, Texas, as
                File No.
                91879, Volume 400, Page 525.

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    Lease
      Interest:
      30.30%
      WI / 23.55825% NRI

     

    

    
      	 	
              3.

            	
              Oil
                and Gas Lease dated October 19, 2004, from the State of Texas, by
                and
                through the Commissioner of the General Land office of the State
                of Texas,
                as Lessor, to Cinco Natural Resources Corporation, as Lessee, covering
                Oil
                and Gas Lease Number M-104266, being the South One-Half (S/2) of
                Tract
                178, Matagorda Bay, Matagorda County, Texas, containing approximately
                320
                acres as shown on the applicable Official Submerged Area Map on file
                in
                the Texas General Land Office, Austin, Texas, and recorded in the
                Official
                Records of Matagorda County, Texas, as File No.
                050428.

            

    

    

     

    Lease
      Interest:
      30.30%
      WI / 23.55825% NRI

     

    

    
      	 	
              4.

            	
              Oil
                and Gas Lease dated October 19, 2004, from the State of Texas, by
                and
                through the Commissioner of the General Land office of the State
                of Texas,
                as Lessor, to Cinco Natural Resources Corporation, as Lessee, covering
                Oil
                and Gas Lease Number M-104267, being the North One-Half (N/2) of
                Tract
                179, Matagorda Bay, Matagorda County, Texas, containing approximately
                320
                acres as shown on the applicable Official Submerged Area Map on file
                in
                the Texas General Land Office, Austin, Texas, and recorded in the
                Official
                Records of Matagorda County, Texas, as File No.
                050429.

            

    

    

    Lease
      Interest:
      30.30%
      WI / 23.55825% NRI

     

    

    Starfish
      Prospect 

    

    
      	 	
              5.

            	
              Oil
                and Gas Lease dated April 5, 2005, from the State of Texas, by and
                through
                the Commissioner of the General Land office of the State of Texas,
                as
                Lessor, to Cinco Energy Corporation, as Lessee, covering Oil and
                Gas Lease
                Number M-104829, being the South One-Half (S/2) of Tract 96, Matagorda
                Bay, Calhoun County, Texas, containing approximately 320 acres as
                shown on
                the applicable Official Submerged Area Map on file in the Texas General
                Land Office, Austin, Texas, and recorded in the Official Records
                of
                Calhoun County, Texas, as File No. 92724, Volume 406, Page
                35.

            

    

    

    Lease
      Interest:
      30.30%
      WI / 23.1795% NRI

     

    
      	 	
              6.

            	
              Oil
                and Gas Lease dated July 19, 2005, from the State of Texas, by and
                through
                the Commissioner of the General Land office of the State of Texas,
                as
                Lessor, to Cinco Resources, Inc., as Lessee, covering Oil and Gas
                Lease
                Number M-105371, being the North One-Half (N/2) of Tract 104, Matagorda
                Bay, Calhoun County, Texas, containing approximately 320 acres as
                shown on
                the applicable Official Submerged Area Map on file in the Texas General
                Land Office, Austin, Texas, and recorded in the Official Records
                of
                Calhoun County, Texas, as File No. 96377, Volume 426, Page
                912.

            

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Lease
      Interest: 30.30%
      WI
      / 23.1795% NRI

     

    Barracuda
      Prospect 

    

    
      	 	
              7.

            	
              Oil
                and Gas Lease dated April 5, 2005, from the State of Texas, by and
                through
                the Commissioner of the General Land office of the State of Texas,
                as
                Lessor, to Cinco Energy Corporation, as Lessee, covering Oil and
                Gas Lease
                Number M-104827, being the North One-Half (N/2) of Tract 94, Matagorda
                Bay, Calhoun County, Texas, containing approximately 320 acres as
                shown on
                the applicable Official Submerged Area Map on file in the Texas General
                Land Office, Austin, Texas, and recorded in the Official Records
                of
                Calhoun County, Texas, as File No. 92722, Volume 406, Page
                21.

            

    

    

    Lease
      Interest:
      30.30%
      WI / 23.1795% NRI

     

    
      	 	
              8.

            	
              Oil
                and Gas Lease dated April 5, 2005, from the State of Texas, by and
                through
                the Commissioner of the General Land office of the State of Texas,
                as
                Lessor, to Cinco Energy Corporation, as Lessee, covering Oil and
                Gas Lease
                Number M-104828, being the South One-Half (S/2) of Tract 94, Matagorda
                Bay, Calhoun County, Texas, containing approximately 320 acres as
                shown on
                the applicable Official Submerged Area Map on file in the Texas General
                Land Office, Austin, Texas, and recorded in the Official Records
                of
                Calhoun County, Texas, as File No. 92723, Volume 406, Page
                28.

            

    

    

    Lease
      Interest:
      30.30%
      WI / 23.1795% NRI

     

    Mackerel
      Prospect

    

    
      	 	
              9.

            	
              Oil
                and Gas Lease dated July 19, 2005, from the State of Texas, by and
                through
                the Commissioner of the General Land office of the State of Texas,
                as
                Lessor, to Cinco Resources, Inc., as Lessee, covering Oil and Gas
                Lease
                Number M-105373, being the North One-Half (N/2) of Tract 175, Matagorda
                Bay, Calhoun and Matagorda Counties, Texas, containing approximately
                320
                acres as shown on the applicable Official Submerged Area Map on file
                in
                the Texas General Land Office, Austin, Texas, and recorded in the
                Official
                Records of Calhoun County, Texas, as File No. 96378, Volume 426,
                Page 919,
                and recorded in the Official Records of Matagorda County, Texas,
                as File
                No. 063722.

            

    

     

    Lease
      Interest:
      30.30%
      WI / 23.1795% NRI

     

    
      	 	
              10.

            	
              Oil
                and Gas Lease dated October 4, 2005, from the State of Texas, by
                and
                through the Commissioner of the General Land office of the State
                of Texas,
                as Lessor, to Cinco Resources, Inc., as Lessee, covering Oil and
                Gas Lease
                Number M-105679, being the North One-Half (N/2) of Tract 178, Matagorda
                Bay, Matagorda County, Texas, containing approximately 320 acres
                as shown
                on the applicable Official Submerged Area Map on file in the Texas
                General
                Land Office, Austin, Texas, and recorded in the Official Records
                of
                Matagorda County, Texas, as File No.
                059741.

            

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Lease
      Interest:
      30.30%
      WI / 23.1795% NRI

     

    
      	 	
              11.

            	
              Oil
                and Gas Lease dated October 4, 2005, from the State of Texas, by
                and
                through the Commissioner of the General Land office of the State
                of Texas,
                as Lessor, to Cinco Resources, Inc., as Lessee, covering Oil and
                Gas Lease
                Number M-105678, being the South One-Half (S/2) of Tract 176, Matagorda
                Bay, Calhoun and Matagorda Counties, Texas, containing approximately
                320
                acres as shown on the applicable Official Submerged Area Map on file
                in
                the Texas General Land Office, Austin, Texas, and recorded in the
                Official
                Records of Calhoun County, Texas, as File No. 96971, Volume 429,
                Page 918,
                and recorded in the Official Records of Matagorda County, Texas,
                as File
                No. 059740.

            

    

    

    Lease
      Interest:
      30.30%
      WI / 23.1795% NRI

    

    Property
      Description (Flash)

    

    1. All
      of
      Flash Gas & Oil Southwest, Inc.’s undivided leasehold interest, being 35.00%
      working interest and 27.65% net revenue interest in and to Oil
      and
      Gas Lease dated July 1, 2003, from the State of Texas, by and through the
      Commissioner of the General Land office of the State of Texas, as Lessor, to
      Cinco Natural Resources Corporation, as Lessee, covering Oil and Gas Lease
      Number M-103194, being the South One-Half (S/2) of Tract 150, Matagorda Bay,
      Calhoun County, Texas, containing approximately 320 acres, INSOFAR
      AND ONLY INSOFAR
      as to
      rights from the surface down to 9,400' true vertical depth, as seen in the
      Cockerell Corporation-Aquamarine Unit Well No. 1, which tract is shown on the
      applicable Official Submerged Area Map on file in the Texas General Land Office,
      Austin, Texas, and recorded in the Official Records of Calhoun County, Texas,
      as
      File No. 82095, Volume 349, Page 1, INCLUDING the following producing well
      bores:

    

    a.
      State
      Tract 150 No. 1 Well, API No. 42-057-31600, and any production therefrom,
      together with a like interest in and to all personal property and equipment
      located thereon or used in connection therewith, which well is currently
      producing in the 9100' sand; and

    

    b.
      State
      Tract 150 No. 2 Well, insofar
      only
      as
      rights above the stratigraphic equivalent
      of 9,400 feet TVD, as seen in the Cockrell Corporation-Aquamarine Unit Well
      No.
1,
      API
      #42-057-31600-00.

    

    2. All
      of
      Flash Gas & Oil Southwest, Inc.’s undivided 100.0% interest in and to the
      seven (7) mile six-inch (6") S80 Gr B pipeline connecting Matagorda Bay, Calhoun
      County, Texas State Tract 150 No. 1 line heater platform to the Keller Bay
      Facility onshore, which is more specifically described in Exhibit
      A-1.

    

    3. Miscellaneous
      Easement No. ME20010086 dated August 1, 2001, ending July 31, 2011, from the
      State of Texas to Millennium Pipeline, LLC d/b/a Millennium Energy LLC, recorded
      in File #0070093, Volume 286, page 887, Official Public Records of Calhoun
      County, Texas, for 6” pipeline across State Tracts 100, 123, 124, 126, 127 and
      150, being 1073.59 rods long and 30 feet wide with 15 feet either side of a
      center line.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    4. Miscellaneous
      Easement No. ME20040057 dated April 1, 2004, ending March 31, 2014, from the
      State of Texas to Flash Gas & Oil Southwest, Inc., recorded in File
      #00087233, Volume 376, page 275, Official Public Records of Calhoun County,
      Texas, for subsurface easement across State Tract 150, being 35.5 rods long
      and
      30 feet wide with 15 feet either side of a center line.

    

    5. Pipeline
      Easement Agreement dated effective July 27, 2001, from Margaret S. Moss and
      Associates to Millennium Pipeline, LLC d/b/a Millennium Energy LLC, a Memorandum
      of which is recorded in Volume 285, page 297, Official Public Records of Calhoun
      County, Texas.

     

    6. Gas
      Pipeline Easement and Right-of-Way Agreement dated effective June 20, 2001,
      from
      W. H. Bauer, Jr. to Millennium Pipeline, LLC d/b/a Millennium Energy LLC, a
      Memorandum of which is recorded in Volume 284, page 743, Official Public Records
      of Calhoun County, Texas.

    

     

    
      
        
        

      

      
        10

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