Document:

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                                                                  EXHIBIT 10.131

                           MANAGEMENT RIGHTS AGREEMENT

     This Management Rights Agreement is entered into as of February 6, 2001 by
and among Crescent Operating, Inc., a Delaware corporation ("COPI"), Crescent
Machinery Company, a Texas corporation ("CMC"), Crescent Machinery Company, LP,
a Delaware limited partnership ("CMCLP", collectively with COPI and CMC, the
"PORTFOLIO COMPANIES") and SunTx Capital Management Corp. ("SUNTX").

                             PRELIMINARY STATEMENTS

     A. An affiliate of SunTx (the "FUND") contemplates entering into a
Securities Purchase Agreement (the "SECURITIES PURCHASE AGREEMENT") by and among
the Portfolio Companies, CRE Equipment Holdings, LLC, a Delaware limited
liability company and the Fund, under which the Fund will purchase, subject to
the satisfaction of certain conditions, an equity interest in CMCLP (the "CMCLP
INTEREST").

     B. Subject to certain conditions, the CMCLP Interest may be exchangeable
for equity securities of COPI (the "COPI INTEREST", collectively with the CMCLP
Interest, the "PORTFOLIO COMPANY INTERESTS").

                             STATEMENT OF AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants, agreements, and conditions hereafter set forth, and for other good,
valuable and binding consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound hereby,
agree as follows:

     1. General Management Rights. The Portfolio Companies hereby (i) engage
SunTx to provide general administrative and financial advice regarding all
matters not otherwise reserved for the board of directors or general partner, as
applicable, of a Portfolio Company and (ii) in addition to following the
covenants in Section 3.1 of the Securities Purchase Agreement, agree and
covenant to consult with, and consider the advice of, SunTx prior to making any
decisions outside the ordinary course of business. In furtherance of, and not in
limitation of, the preceding, SunTx will have access to the Chief Operating
Officer of COPI, during reasonable business hours, to facilitate the purposes of
this Section 1. The advice provided by SunTx under this Section 1 will
constitute, inclusive of any services previously provided by SunTx to the
Portfolio Companies, the "SERVICES". Subject to earlier termination as set forth
in Section 6 hereof, this Section 1 shall terminate upon the earlier of the date
of termination of the Securities Purchase Agreement, date of the closing of the
transactions contemplated by the Securities Purchase Agreement, or December 31,
2001 (the earliest such date being the "TERMINATION DATE").

     2. Compensation. In consideration for the Services, the Portfolio Companies
agree to pay an aggregate fee to SunTx of $1,000,000 (the "SERVICES FEE"). The
parties acknowledge that $950,000 of the Services Fee has been paid by the
Portfolio Companies and received by SunTx.

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The $50,000 remainder of the Services Fee will be payable on June 22, 2001. The
obligation of the Portfolio Companies to pay the Services Fee is joint and
several.

     3. Scope of Liability and Indemnification.

     (a) To the fullest extent permitted by law, SunTx (which shall include for
purposes of this Section 3 SunTx's stockholders, directors, officers and
employees and their respective affiliates) and its affiliates (each an
"INDEMNITEE") shall not be liable in excess of an aggregate amount (the
"LIABILITY CAP") of $200,000 to any Portfolio Company or any of their
stockholders or partners for any losses, damages, expenses or claims occasioned
by any act or omission of SunTx in connection with the performance of the
Services (including, without limitation information, supplied to a Portfolio
Company by SunTx based on, or SunTx's acts or failures to act in reasonable
reliance on, financial information supplied to SunTx by third parties) other
than as a result of SunTx's willful misconduct. In the case of such willful
misconduct, the Liability Cap will be increased to $1,000,000. Each of the
Portfolio Companies explicitly recognizes that the advisory opinions,
recommendations and actions of SunTx have been and will continue to be based on
advice and information considered to be reliable by, but not guaranteed by or
to, SunTx. Notwithstanding anything else in this Section 3(a), the Liability Cap
is subject to adjustment under Section 7 hereof.

     (b) To the fullest extent permitted by law, each Portfolio Company shall
indemnify and hold harmless each Indemnitee from and against any expense, loss,
liability or damage arising out of any claim asserted or threatened to be
asserted in connection with the Services; provided, however, that no Indemnitee
shall be entitled to any such indemnification with respect to any expense, loss,
liability or damage which was caused by willful misconduct, gross negligence, or
reckless disregard of its obligations under this Management Rights Agreement,
and the aggregate liability of the Portfolio Companies for indemnification
hereunder shall not exceed an aggregate amount of $200,000. In the event that
SunTx or any other Indemnitee entitled to indemnification pursuant to this
Section 3 is or becomes a party to any action or proceeding in respect of which,
or there otherwise exists a claim pursuant to which, it may be entitled to seek
indemnification hereunder, the Indemnitee shall promptly notify the Portfolio
Companies thereof; provided, however, that failure to so notify the Portfolio
Companies shall not affect the Indemnitee's rights hereunder. The Portfolio
Companies shall advance to the Indemnitee the reasonable costs and expenses of
investigating and/or defending such claim, subject to receiving a written
undertaking from the Indemnitee to repay such amounts if and to the extent of
any subsequent final determination by a court or other tribunal of competent
jurisdiction that the Indemnitee was not entitled to indemnification hereunder.
The obligations of the Portfolio Companies under this Section 3(b) are joint and
several.

     (c) The provisions of this Section 3 shall survive the termination of
Section 1 of this Management Rights Agreement and any termination effectuated
under Section 6 hereof.

     4. Standard of Performance. All Services performed by SunTx hereunder shall
be performed in a good and workmanlike manner, in accordance with good and
customary industry practices using competent and experienced personnel (the
"SERVICE Standard"). In performing the Services, SunTx agrees to comply with all
federal, state and local laws, rules and regulations

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that are now or may in the future become applicable to the Portfolio Companies
or the performance of the Services.

     5. Amendment. This Management Rights Agreement may be modified or amended
only by the agreement of the parties hereto in writing, duly executed by the
authorized representatives of each party.

     6. Termination. The Portfolio Companies may terminate Section of 1 of this
Management Rights Agreement and the provision of Services thereunder at any time
in the event SunTx breaches any of the terms and conditions hereof and SunTx
fails to cure any such breach within ten (10) days after the written notice of
such breach (a breach not cured within such time period being an "UNCURED
BREACH").

     7. Partial Refund.

     (a) In the event that the Fund does not perform its obligations under the
Securities Purchase Agreement for any reason, other than the Enumerated Reasons
(as defined in Section 7(b) below), SunTx will refund $500,000 of the Services
Fee to the Portfolio Companies within nine months following any such
nonperformance (the "PARTIAL REFUND").

     (b) For the purposes of this Section 7, the "Enumerate Reasons" are (i)
termination of the Securities Purchase Agreement due to lack of approval by the
stockholders of COPI of the transactions contemplated by the Securities Purchase
Agreement, (ii) termination of the Securities Purchase Agreement by the Fund due
to an affirmative misrepresentation made by a Portfolio Company, Crescent Real
Estate Equities Company or an affiliate thereof, (iii) the failure of any of the
Portfolio Companies to attain the required material consents as provided for in
the Securities Purchase Agreement, (iv) the failure of registration rights to be
granted as provided for in the Securities Purchase Agreement, (v) the failure of
COPI to grant an acknowledgement that the CMLP and CMC interests are convertible
into stock of COPI as provided for in the Securities Purchase Agreement, (vi)
the failure of COPI to amend its Poison Pill (as defined in the Securities
Purchase Agreement), (vii) the failure of the parties to consummate the actions
listed on Schedule 2.1(h), (viii) the failure of COPI to execute the General
Partner Letter Agreement (as defined in the Securities Purchase Agreement), (ix)
the failure of Thompson & Knight to give a legal opinion satisfactory to SunTx
or CEH as provided for in the Securities Purchase Agreement, (x) the failure of
CEH to make the investment in SunTx Fulcrum Fund, L.P. as provided for in the
Securities Purchase Agreement, (x) the failure of COPI to make a taxable REIT
subsidiary election as provided for in the Securities Purchase Agreement, (xi)
the failure of CMC to merge into CMLP as provided for in the Securities Purchase
Agreement, (xii) the failure of COPI to maintain the assets and liabilities
before the Closing Date as provided for in the Securities Purchase Agreement,
and (xiii) the failure of CMLP to maintain a required cash balance before the
Closing Date as provided for in the Securities Purchase Agreement.

     (c) In the event that an obligation to pay the Partial Refund is incurred,
the Liability Cap shall be reduced, both retroactively and prospectively, to $0.

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     8. Assignment. This Management Rights Agreement shall not be assignable by
either party without the prior written consent of the other party hereto. When
duly assigned in accordance with the foregoing, this Management Rights Agreement
shall be binding upon and shall inure to the benefit of the assignee.

     9. Prior Agreements. This Management Rights Agreement constitutes the
entire agreement between the parties and supersedes any prior understandings or
agreements concerning the subject matter hereof.

     10. Severability. Any provision of this Management Rights Agreement that is
prohibited or unenforceable in any jurisdiction will not invalidate the
remaining provisions of this Management Rights Agreement or affect the validity
or enforceability of such provision in any other jurisdiction. In addition, any
such prohibited or unenforceable provision will be given effect to the extent
possible in the jurisdiction where such provision is prohibited or
unenforceable.

     11. Governing Law. This Management Rights Agreement shall be governed by
and construed in accordance with the substantive laws of the State of Texas,
excluding its conflict of law principles.

     12. Headings. Section and subsection headings in this Management Rights
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Management Rights Agreement for any other purpose.

     13. Counterparts. This Management Rights Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument, and any of the parties hereto may execute this Management
Rights Agreement by signing any such counterpart.

     14. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered personally or mailed by
registered or certified mail (return receipt requested) to the parties at the
following addresses (or at such other address for a party as shall be specified
by like notice):

     if to CMCLP:

          Crescent Machinery Company, LP
          777 Taylor Street, Suite 1050
          Fort Worth, Texas 76102
          Telephone: (817) 339-2200
          Facsimile: (817) 339-2220

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     with a copy by mail and fax which will not constitute notice, to:

          Thompson & Knight, LLP
          801 Cherry Street, Suite 1600
          Fort Worth, Texas 76102
          Attn: Stephen B. Norris, Esq.
          Telephone: (817) 347-1715
          Facsimile: (817) 347-1799

     if to CMC:

          Crescent Machinery Company
          777 Taylor Street, Suite 1050
          Fort Worth, Texas 76102
          Telephone: (817) 339-2200
          Facsimile: (817) 339-2220

     with a copy by mail and fax which will not constitute notice, to:

          Thompson & Knight, LLP
          801 Cherry Street, Suite 1600
          Fort Worth, Texas  76102
          Attn: Stephen B. Norris, Esq.
          Telephone: (817) 347-1715
          Facsimile: (817) 347-1799

     if to COPI:

          Crescent Machinery Company
          306 W. 7th Street, Suite 1000
          Fort Worth, Texas 76102
          Telephone: (817)  339-2212
          Facsimile: (817)  339-2220

     with a copy by mail and fax which will not constitute notice, to:

          Thompson & Knight, LLP
          801 Cherry Street, Suite 1600
          Fort Worth, Texas 76102
          Attn: Stephen B. Norris, Esq.
          Telephone: (817) 347-1715
          Facsimile: (817) 347-1799

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     if to SunTx:

          SunTx Capital Management Corp.
          1700 Pacific Avenue, Suite 1600
          Dallas, Texas 75201
          Attn: Ned Fleming
          Telephone: (214) 855-5060 x15
          Facsimile: (214) 855-0640

     with a copy by mail and fax which will not constitute notice, to:

          Akin, Gump, Strauss, Hauer & Feld, L.L.P.
          1700 Pacific Avenue, Suite 4100
          Dallas, TX 75201
          Attn: Michael A. Slaney, Esq.
          Telephone: (214) 969-2864
          Facsimile: (214) 969-4343

     15. Construction. The parties hereto have cooperated in the drafting and
preparation of this Management Rights Agreement. Hence, in any construction to
be made of this Management Rights Agreement, the same shall not be construed
against any party on the basis that the party was the drafter.

                            [SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the undersigned have executed, or have caused to be
executed, this Management Rights Agreement as of the day and year first above
written.

                                       CRESCENT MACHINERY COMPANY, LP

                                       By:  COPI CMC GP, Inc.
                                       Its: General Partner

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                       CRESCENT MACHINERY COMPANY

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                       SUNTX CAPITAL MANAGEMENT CORP.

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                       CRESCENT OPERATING, INC.

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                       7<PAGE>   1
                                                                    EXHIBIT 10.5

                      FOURTH AMENDMENT TO CREDIT AGREEMENT

         This Fourth Amendment to Credit Agreement ("Amendment") is entered into
between Compass Bank, an Alabama state bank, (the "Lender") and Trek Resources,
Inc., a Delaware corporation, (the "Borrower"), formerly Trek Resources, Inc., a
Utah corporation, and is dated as of July 31, 2001. Terms defined in the Credit
Agreement between the Lender and the Borrower, under its previous name, McGowen
Resources Company, Inc., dated December 24, 1997, as amended (the "Credit
Agreement"), are used herein as therein defined, unless otherwise defined herein
or the context otherwise requires.

                                    RECITALS:

         WHEREAS, the Borrower has requested that the Lender amend the Credit
Agreement; and

         WHEREAS, the Lender is willing to amend the Credit Agreement under the
terms and conditions set forth herein;

         NOW, THEREFORE, the Borrower and the Lender hereby agree as follows:

1. The following definitions are hereby added to Section 1.1 of the Credit
Agreement as follows:

         "ADDITIONAL COSTS" shall mean costs which the Lender determines are
attributable to its obligation to make or its making or maintaining any
Eurodollar Rate Loan, or any reduction in any amount receivable by the Lender in
respect of any such obligation or any Eurodollar Rate Loan, resulting from any
Regulatory Change which (a) changes the basis of taxation of any amounts payable
to the Lender under this Agreement or the Note in respect of any Eurodollar Rate
Loan (other than taxes imposed on the overall net income of the Lender), (b)
imposes or modifies any reserve, special deposit, minimum capital, capital
rates, or similar requirements relating to any extensions of credit or other
assets of, or any deposits with or other liabilities of, the Lender (including
Eurodollar Rate Loans and Dollar deposits in the London interbank market in
connection with Eurodollar Rate Loans), or any commitments of the Lender
hereunder, or (c) imposes any other condition affecting this Agreement or any of
such extensions of credit, liabilities, or commitments.

         "ADJUSTED EURODOLLAR RATE" shall mean, for a Eurodollar Rate Loan, an
interest rate per annum determined by the Lender to be equal to the sum of the
Eurodollar Rate plus the Applicable Margin, but in no event in excess of the
Highest Lawful Rate.

         "APPLICABLE LENDING OFFICE" means the Lender's Domestic Lending Office
in the case of a Floating Rate Loan and the Lender's Eurodollar Lending Office
in the case of a Eurodollar Rate Loan.

         "APPLICABLE MARGIN" means, at any time of determination, the rate of
2.5%.

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         "CONVERT," "CONVERSION," AND "CONVERTED" each refers to a conversion of
Loans of one type into Loans of another type pursuant to Section 3.4.

         "DOMESTIC LENDING OFFICE" means the office of the Lender specified
opposite its name on the signature page of the Fourth Amendment to Credit
Agreement or such other office of the Lender as the Lender may from time to time
specify to the Borrower.

         "EUROCURRENCY LIABILITIES" has the meaning assigned to that term in
Regulation D of the Federal Reserve Board (or any successor), as in effect from
time-to-time.

         "EURODOLLAR LENDING OFFICE" means the office of the Lender specified as
its "Eurodollar Lending Office" by the Lender (or, if no such office is
specified, its Domestic Lending Office) or such other office of the Lender as
the Lender may from time to time specify to the Borrower.

         "EURODOLLAR RATE" means, for the Interest Period for each Eurodollar
Rate Loan, the interest rate per annum (rounded upward to the nearest whole
multiple of 1/100 of 1% per annum) set forth on the applicable Telerate Page as
the London Interbank Offered Rate, for deposits in Dollars at 11:00 a.m.
(London, England time) two Business Days before the first day of such Interest
Period, in an amount substantially equal to the Lender's Eurodollar Rate Loan
and for a period equal to such Interest Period; provide that, if no such
quotation appears on the applicable Telerate Page, the Eurodollar Rate shall be
an interest rate per annum equal to the rate per annum at which deposits in
Dollars are offered in London, England to prime banks in the London interbank
market at 11:00 a.m. (London, England time) two Business Days before the first
day of such Interest Period in an amount substantially equal to the Eurodollar
Rate Loan to be maintained by the Lender in respect of such Borrowing and for a
period equal to such Interest Period.

         "EURODOLLAR RATE LOAN" means a Loan which bears interest at the
Adjusted Eurodollar Rate.

         "EURODOLLAR RATE RESERVE PERCENTAGE" of any Lender for the Interest
Period for any Eurodollar Rate Loan means the reserve percentage applicable
during such Interest Period (or if more than one such percentage shall be so
applicable, the daily average of such percentages for those days in such
Interest Period during which any such percentage shall be so applicable) under
regulations issued from time-to-time by the Federal Reserve Board for
determining the maximum reserve requirement (including, without limitation, any
emergency, supplemental or other marginal reserve requirement) for such Lender
with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities having a term equal to such Interest Period.

         "FLOATING RATE LOAN" means a Loan which bears interest at the Floating
Rate.

         "FOURTH AMENDMENT TO CREDIT AGREEMENT" means the Fourth Amendment to
Credit Agreement dated July 9, 2001, between the Lender and the Borrower.

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         "INTEREST PERIOD" means for each Eurodollar Rate Loan, the period
commencing on the date of such Loan or the date of the Conversion of any
Floating Rate Loan into a Eurodollar Rate Loan and ending on the last day of the
period selected by the Borrower pursuant to the provisions below and thereafter,
each subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by the
Borrower pursuant to the provisions below. The duration of each such Interest
Period shall be one, two or three months, in each case as the Borrower may, upon
notice received by the Lender not later than 10:00 a.m. (Dallas, Texas time) on
the third Business Day prior to the first day of such Interest Period select;
provided, however, that:

         (a) the Borrower may not select any Interest Period for any Loan which
ends after any principal repayment date or Borrowing Base reduction date unless,
after giving effect to such selection, the aggregate unpaid principal amount of
Loans that are Floating Rate Loans and Loans having Interest Periods which end
on or before such principal repayment date shall be at least equal to the amount
of Loans due and payable on or before such date;

         (b) whenever the last day of any Interest Period would otherwise occur
on a day other than a Business Day, the last day of such Interest Period shall
be extended to occur on the next succeeding Business Day; provided that if such
extension would cause the last day of such Interest Period to occur in the next
following calendar month, the last day of such Interest Period shall occur on
the next preceding Business Day; and

         (c) any Interest Period which begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall end on the last
Business Day of the calendar month in which it would have ended if there were a
numerically corresponding day in such calendar month.

         "REGULATION D" means Regulation D of the Federal Reserve Board as time
to time in effect.

         "REGULATORY CHANGE" shall mean the passage, adoption, institution, or
amendment of any federal, state, local, or foreign Requirement of Law
(including, without limitation, Regulation D), or any interpretation, directive,
or request (whether or not having the force of law) of any Governmental
Authority or monetary authority charged with the enforcement, interpretation, or
administration thereof, occurring after the date of the Fourth Amendment to
Credit Agreement and applying to a class of banks including the Lender or its
Applicable Lending Office.

2. The definitions of "Business Day" and "Notice of Borrowing" in Section 1.1 of
the Credit Agreement are hereby amended and restated in their respective
entireties as follows:

         "BUSINESS DAY" means a day of the year on which banks are not required
or authorized to close in New York City, Dallas, Texas, or Birmingham, Alabama,
provided,

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that when used in connection with a Eurodollar Rate Loan, the term "Business
Day" shall also exclude any day on which banks are not open for dealings in
Dollar deposits in the London interbank market.

         "NOTICE OF BORROWING" has the meaning given such term in Section 2.2
and shall be substantially in the form of Exhibit 2.2(a) attached to the Fourth
Amendment to Credit Agreement.

3. Sections 2.1, 2.2 and 2.5 of the Credit Agreement are hereby amended and
restated in their respective entireties as follows:

         SECTION 2.1 Commitment.

         (a) During the Revolving Credit Period, the Lender agrees, subject to
the other terms and conditions of this Agreement:

                  (i) To lend to the Borrower subject to clause (ii) below from
time to time amounts not to exceed in the aggregate at any one time outstanding
an amount equal to the Borrowing Base (the "Revolving Commitment"). Subject to
the terms of this Agreement, the Borrower may borrow under this Section, repay
Loans and reborrow and Convert Loans of one type or with one Interest Period
into Loans of another type or with different Interest Periods at any time during
the Revolving Credit Period. Except for prepayments made pursuant to Section
2.4, each borrowing, Conversion, and prepayment of principal of Loans shall be
in an amount at least equal to $50,000, unless such borrowing represents all of
the available Revolving Commitment or such prepayment represents the remaining
principal balance of all of the Loans. Each borrowing, prepayment, or Conversion
of or into a Loan of a different type or, in the case of a Eurodollar Rate Loan,
having a different Interest Period, shall be deemed a separate borrowing,
Conversion, and prepayment for purposes hereof. Anything in this Agreement to
the contrary notwithstanding, the aggregate principal amount of Eurodollar Rate
Loans having the same Interest Period shall be at least equal to $1,000,000; and
if any Eurodollar Rate Loan would otherwise be in a lesser principal amount for
any period, such Loan shall be a Floating Rate Loan during such period.

                  (ii) To issue letters of credit for the account of the
Borrower from time to time in amounts not to exceed the aggregate at any one
time outstanding the lesser of the amount of $250,000 or the unused Revolving
Commitment, it being understood that outstanding funding obligations under
Letters of Credit shall reduce the unused Revolving Commitment hereunder.

         (b) The Lender shall not be obligated to lend to the Borrower, and the
Borrower shall not be entitled to borrow hereunder, any amount which would cause
the sum of the outstanding principal amount of all Loans made by the Lender and
the undrawn amount of all outstanding Letters of Credit to exceed the Revolving
Commitment of the Lender then in effect.

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         (c) The Lender shall not be obligated to issue a letter of credit
pursuant to Section 2.1(a) or to renew a Letter of Credit, and the Borrower
shall not be entitled to have a letter of credit issued pursuant to such Section
or to have a Letter of Credit renewed, if the issuance of the requested letter
of credit or the renewal of an existing Letter of Credit would cause, after
taking into account the mandatory reductions in the Borrowing Base required
during the proposed term of such requested letter of credit or existing Letter
of Credit, the undrawn amount of all Letters of Credit to ever exceed the
Revolving Commitment.

         SECTION 2.2. Method of Borrowing and Obtaining Letters of Credit. (a)
The Borrower shall give the Lender an irrevocable notice (a "Notice of
Borrowing") prior to 12:00 p.m. (Dallas time) (i) on the third Business Day
before the date of the proposed borrowing or Conversion into a Eurodollar Rate
Loan or a continuation of a Eurodollar Rate Loan or (ii) on the day of the
proposed borrowing in the case of a Floating Rate Loan under Section 2.1, in the
form of Exhibit 2.2(a) attached to the Fourth Amendment to Credit Agreement. In
the event that the Borrower fails to select the duration of any Interest Period
for any Eurodollar Rate Loan within the time period and otherwise as provided
herein, such Loan (if outstanding as a Eurodollar Rate Loan) will be
automatically Converted into a Floating Rate Loan on the last day of the then
current Interest Period for such Loan or (if outstanding as a Floating Rate
Loan) will remain as, or (if not then outstanding) will be made as, a Floating
Rate Loan.

         (b) Unless the Lender determines that any applicable condition
specified in Article V or elsewhere herein has not been satisfied, the Lender
will make the funds available to the Borrower at the Lender's Domestic Lending
Office or Eurodollar Lending Office.

         (c) The Borrower shall give the Lender a request for letter of credit
prior to 12:00 p.m. (Dallas time) at least three (3) Business Days before each
requested letter of credit under Section 2.1, by completing and delivering a
Letter of Credit Application. The expiry date of such requested letter of credit
cannot be later than the earlier of (A) one (1) year from the date of issuance
or (B) the last date before which the Borrowing Base is scheduled to reduce to
an amount less than the aggregate undrawn amount of the requested letter of
credit and the outstanding Letters of Credit which, by their terms, might be
outstanding on such reduction date. The Letter of Credit Application must be
completed in a manner and shall use such wording as is acceptable to the Lender.

         (d) Upon receipt of the Letter of Credit Application, the Lender shall
issue such letter of credit if the conditions of Article V or elsewhere herein
have been satisfied.

         (e) Subject to the terms hereof, in the event that any beneficiary of a
Letter of Credit shall have taken the steps necessary to obligate the Lender to
make a payment under such Letter of Credit, the Borrower shall be deemed to have
delivered to the Lender an irrevocable Notice of Borrowing under Section 2.2 for
a Loan in the amount of such payment amount, regardless of any limitations set
forth herein. The Lender shall pay over the proceeds of such Loan to itself as
reimbursement for amounts paid under such Letter of Credit.

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         SECTION 2.5 Interest. (a) The unpaid principal balance of the Loans
shall bear interest, payable monthly as it accrues on the 1st day of each month,
commencing August 1, 2001, and at maturity (stated or by acceleration), at a
rate per annum equal to the lesser of the (i) Highest Lawful Rate or (ii) the
Floating Rate for each Floating Rate Loan and the Adjusted Eurodollar Rate for
each Eurodollar Rate Loan.

         (b) Each change in the rate of interest charged hereunder shall become
effective automatically and without notice to the Borrower upon the effective
date of each change in the Floating Rate or the Highest Lawful Rate, as the case
may be.

4. The Borrowing Base shall be $12,000,000 as of July 9, 2001, and the amount by
which the Borrowing Base shall automatically be reduced on August 1, 2001, and
on the first day of each month thereafter shall be $125,000 per month; until
each is redetermined in accordance with the Credit Agreement. All principal
outstanding under the Note shall be due and payable on the Revolving Credit
Termination Date (or such earlier date as required by the Credit Agreement)
together with all accrued, unpaid interest on the Note.

5. The reference to "the 45th day" in Section 7.2(a)(ii) of the Credit Agreement
is amended to be "the 60th day".

6. Section 7.15(a) of the Credit Agreement is hereby amended and restated in its
entirety as follows:

                  "(a) EBITDA to Interest Expense. The Borrower will not permit
the ratio of its EBITDA to its Interest Expense for any fiscal quarter to less
than (i) 2.50 to 1.00 for the quarters ending on September 30, 2001, and
December 31, 2001, or (ii) 3.00 to 1.00, for each quarter thereafter.

                  "EBITDA" means, for any fiscal quarter of the Borrower, net
income of the Borrower plus depreciation, depletion and amortization, interest
expense, losses arising from asset dispositions or hedging activities, other
non-cash losses and taxes of the Borrower, minus gains arising from asset
dispositions or hedging activities and other non-cash income for such quarter.

                  "Interest Expense" means, for any fiscal quarter of the
Borrower, total interest expense of the Borrower for such quarter."

7. The following sections are hereby added to the Credit Agreement:

         SECTION 3.4 Voluntary Prepayments and Conversions of Loans. Subject to
applicable provisions of this Agreement, the Borrower shall have the right at
any time or from time to time to prepay Loans and to Convert Loans of one type
or with one Interest Period into Loans of another type or with a different
Interest Period; provided, however, that (a) the Borrower shall give the Lender
notice of each such prepayment or Conversion of all or any portion of a
Eurodollar Rate Loan no less than three(3) Business Days prior to prepayment or
Conversion, (b) any Eurodollar Rate Loan may be prepaid or Converted only on the
last day of an Interest Period for such Loan, (c) the Borrower shall

                                       6
<PAGE>   7

pay all accrued and unpaid interest on the amounts prepaid or Converted, and (d)
no such prepayment or Conversion shall serve to postpone the repayment when due
of any Obligation.

         (b) Yield Protection. (a) Without limiting the effect of the other
provisions of this Section (but without duplication), the Borrower shall pay to
the Lender from time to time on request such amounts as the Lender may determine
are necessary to compensate it for any Additional Costs incurred by the Lender.

         (c) Without limiting the effect of the other provisions of this Section
(but without duplication), the Borrower shall pay to the Lender from time to
time on request such amounts as the Lender may determine are necessary to
compensate the Lender for any costs attributable to the maintenance by the
Lender (or any Applicable Lending Office), pursuant to any Regulatory Change, of
capital in respect of the Commitment, such compensation to include, without
limitation, an amount equal to any reduction of the rate of return on assets or
equity of the Lender (or any Applicable Lending Office) to a level below that
which the Lender (or any Applicable Lending Office) could have achieved but for
such Regulatory Change.

         (d) Without limiting the effect of the other provisions of this Section
(but without duplication), in the event that any Requirement of Law or
Regulatory Change or the compliance by the Lender therewith shall (i) impose,
modify, or hold applicable any reserve, special deposit, or similar requirement
against any Letter of Credit or obligation to issue Letters of Credit, or (ii)
impose upon the Lender any other condition regarding any Letter of Credit or
obligation to issue Letters of Credit, and the result of any such event shall be
to increase the cost to the Lender of issuing or maintaining any Letter of
Credit or obligation to issue Letters of Credit or any liability with respect to
payments by the Lender under Letters of Credit, or to reduce any amount
receivable in connection therewith, then upon demand by the Lender, the Borrower
shall pay to the Lender, from time to time as specified by the Lender,
additional amounts which shall be sufficient to compensate the Lender for such
increased cost or reduced amount receivable.

         (e) Without limiting the effect of the other provisions of this Section
(but without duplication), the Borrower shall pay to the Lender such amounts as
shall be sufficient in the reasonable opinion of the Lender to compensate it for
any loss, cost, or expense incurred by and as a result of:

               (i) any payment, prepayment, or conversion by the Borrower of a
Eurodollar Rate Loan on a date other than the last day of an Interest Period for
such Loan; or

               (ii) any failure by the Borrower to borrow a Eurodollar Rate Loan
from the Lender on the date for such borrowing specified in the relevant
Borrowing Request;

         such compensation to include, without limitation, with respect to any
Eurodollar Rate Loan, an amount equal to the excess, if any, of (A) the amount
of interest which

                                       7
<PAGE>   8

would have accrued on the principal amount so paid, prepaid, Converted, or not
borrowed for the period from the date of such payment, prepayment, conversion,
or failure to borrow to the last day of the then current Interest Period for
such Loan (or, in the case of a failure to borrow, the Interest Period for such
Loan which would have commenced on the date of such failure to borrow) at the
applicable rate of interest for such Loan provided for herein over (B) the
interest component (as reasonably deter-mined by the Lender) of the amount (as
reasonably determined by the Lender) the Lender would have bid in the London
interbank market for Dollar deposits of amounts comparable to such principal
amount and maturities comparable to such period.

         (f) Determinations by the Lender for purposes of this Section of the
effect of any Regulatory Change on capital maintained, its costs or rate of
return, maintaining Loans or issuing Letters of Credit, its obligation to make
Loans or issue Letters of Credit, or on amounts receivable by it in respect of
Loans or Letters of Credit, or such obligations, and the additional amounts
required to compensate the Lender under this Section shall be conclusive, absent
manifest error, provided that such determinations are made on a reasonable
basis. The Lender shall furnish the Borrower with a certificate setting forth in
reasonable detail the basis and amount of increased costs incurred or reduced
amounts receivable as a result of any such event, and the statements set forth
therein shall be conclusive, absent manifest error. The Lender shall (i) notify
the Borrower, as promptly as practicable after the Lender obtains knowledge of
any Additional Costs or other sums payable pursuant to this Section and
determines to request compensation therefor; and (ii) designate a different
Applicable Lending Office for the Loans of the Lender affected by such event if
such designation will avoid the need for or reduce the amount of such
compensation and will not, in the sole opinion of the Lender, be disadvantageous
to the Lender. If the Lender requests compensation from the Borrower under this
Section, the Borrower may, by notice to the Lender, require that the Loans by
the Lender of the type with respect to which such compensation is requested be
converted into Floating Rate Loans in accordance with Section. Any compensation
requested by the Lender pursuant to this Section shall be due and payable to the
Lender within five days of delivery of any such notice by the Lender to the
Borrower.

         (g) The Lender agrees that it shall not request, and the Borrower shall
not be obligated to pay, any Additional Costs or other sums payable pursuant to
this Section unless similar additional costs and other sums payable are also
generally assessed by the Lender against other customers of the Lender similarly
situated where such customers are subject to documents providing for such
assessment.

         SECTION 3.6 Limitation on Types of Loans. Anything herein to the
contrary notwithstanding, no more than five(5) separate Loans shall be
outstanding at any one time, with, for purposes of this Section, all Floating
Rate Loans constituting one Loan and all Eurodollar Rate Loans for the same
Interest Period constituting one Loan. Anything herein to the contrary
notwithstanding, if, on or prior to the determination of any interest rate for
any Eurodollar Rate Loan for any Interest Period therefor:

         the Lender determines (which determination shall be conclusive) that
quotations of interest rates for the deposits referred to in the definition of
"Eurodollar Rate" are not

                                       8
<PAGE>   9

being provided in the relevant amounts or for the relevant maturities for
purposes of determining the rate of interest for such Loan as provided in this
Agreement; or

         the Lender determines (which determination shall be conclusive) that
the rates of interest referred to in the definition of "Eurodollar Rate" upon
the basis of which the rate of interest for such Loan for such Interest Period
is to be determined do not accurately reflect the cost to the Lender of making
or maintaining such Loan for such Interest Period,

         the Lender shall give the Borrower prompt notice thereof; and so long
as such condition remains in effect, the Lender shall be under no obligation to
make Eurodollar Rate Loans or to convert Loans of any other type into Eurodollar
Rate Loans, and the Borrower shall, on the last day of the then current Interest
Period for each outstanding Eurodollar Rate Loan, either prepay such Eurodollar
Rate Loan or convert such Loan into another type of Loan in accordance with
Section . Before giving such notice pursuant to this Section, the Lender will
designate a different available Applicable Lending Office for Eurodollar Rate
Loans or take such other action as the Borrower may request if such designation
or action will avoid the need to suspend the obligation of the Lender to make
Eurodollar Rate Loans hereunder and will not, in the opinion of the Lender, be
disadvantageous to the Lender.

         SECTION 3.7 Illegality. Notwithstanding any other provision of this
Agreement, in the event that it becomes unlawful for the Lender or its
Applicable Lending Office to (a) honor its obligation to make any type of
Eurodollar Rate Loans hereunder, or (b) maintain any type of Eurodollar Rate
Loans hereunder, then the Lender shall promptly notify the Borrower thereof; and
the obligation of the Lender hereunder to make such type of Eurodollar Rate
Loans and to Convert other types of Loans into Eurodollar Rate Loans of such
type shall be suspended until such time as the Lender may again make and
maintain Eurodollar Rate Loans of such type, and the outstanding Eurodollar Rate
Loans of such type shall be Converted into Floating Rate Loans. Before giving
such notice pursuant to this Section, the Lender will designate a different
available Applicable Lending Office for Eurodollar Rate Loans or take such other
action as the Borrower may request if such designation or action will avoid the
need to suspend the obligation of the Lender to make Eurodollar Rate Loans and
will not, in the opinion of the Lender, be disadvantageous to the Lender.

         SECTION 3.8 Regulatory Change. In the event that by reason of any
Regulatory Change, the Lender (a) incurs Additional Costs based on or measured
by the excess above a specified level of the amount of a category of deposits or
other liabilities of the Lender which includes deposits by reference to which
the interest rate on any Eurodollar Rate Loan is determined as provided in this
Agreement or a category of extensions of credit or other assets of such Lender
which includes any Eurodollar Rate Loan, or (b) becomes subject to restrictions
on the amount of such a category of liabilities or assets which it may hold,
then, at the election of the Lender with notice to the Borrower, the obligation
of the Lender to make such Eurodollar Rate Loans and to convert Floating Rate
Loans into such Eurodollar Rate Loans shall be suspended until

                                       9
<PAGE>   10

such time as such Regulatory Change ceases to be in effect, and all such
outstanding Eurodollar Rate Loans shall be Converted into Floating Rate Loans.

         SECTION 3.9 Limitations on Interest Periods. Each Interest Period
selected by the Borrower (a) which commences on the last Business Day of a
calendar month (or, with respect to any Eurodollar Rate Loan, any day for which
there is no numerically corresponding day in the appropriate subsequent calendar
month) shall end on the last Business Day of the appropriate subsequent calendar
month, (b) which would otherwise end on a day which is not a Business Day shall
end on the next succeeding Business Day (or, if such next succeeding Business
Day falls in the next succeeding calendar month, on the next preceding Business
Day), (c) which would otherwise commence before and end after the Revolving
Credit Termination Date shall end on the Revolving Credit Termination Date, and
(d) shall have a duration of not less than 30 days, and, if any Interest Period
would otherwise be a shorter period, the relevant Loan shall be a Floating Rate
Loan during such period.

8. The Borrower shall execute such amendments to mortgages and other security
instruments as the Lender may from time to time reasonably request to amend the
existing mortgages and other security instruments to reflect the terms of this
Amendment.

9. The addresses of the Borrower and the Lender for purposes of the Credit
Agreement are those specified on the signature page of this Amendment.

10. (a) THIS AGREEMENT HAS BEEN NEGOTIATED, IS BEING EXECUTED AND DELIVERED, AND
WILL BE PERFORMED IN WHOLE OR IN PART, IN THE STATE OF TEXAS, AND THE
SUBSTANTIVE LAWS OF SUCH STATE AND THE APPLICABLE FEDERAL LAWS OF THE UNITED
STATES OF AMERICA SHALL GOVERN THE VALIDITY, CONSTRUCTION, ENFORCEMENT AND
INTERPRETATION OF THE LOAN DOCUMENTS, EXCEPT TO THE EXTENT THE LAWS OF ANY
JURISDICTION WHERE COLLATERAL IS LOCATED REQUIRE APPLICATION OF SUCH LAWS WITH
RESPECT TO SUCH COLLATERAL.

         (b) THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE
JURISDICTION OF ANY UNITED STATES FEDERAL OR TEXAS STATE COURT SITTING IN
HOUSTON, HARRIS COUNTY, TEXAS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER HEREBY IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
THE RIGHT OF THE LENDER TO BRING PROCEEDINGS AGAINST THE BORROWER IN THE COURTS
OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY THE BORROWER AGAINST THE
LENDER OR ANY

                                       10
<PAGE>   11

AFFILIATE OF THE LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY
ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT SHALL BE BROUGHT
ONLY IN A COURT IN HOUSTON, HARRIS COUNTY, TEXAS.

         (c) THE BORROWER AND THE LENDER HEREBY KNOWINGLY, VOLUNTARILY,
INTENTIONALLY, IRREVOCABLY, AND UNCONDITIONALLY WAIVE ALL RIGHTS TO TRIAL BY
JURY IN ANY ACTION, SUIT, PROCEEDING, COUNTERCLAIM, OR OTHER LITIGATION THAT
RELATES TO OR ARISES OUT OF ANY OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR
THE ACTS OR OMISSIONS OF THE LENDER IN THE ENFORCEMENT OF ANY OF THE TERMS OR
PROVISIONS OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHERWISE WITH
RESPECT THERETO. THE PROVISIONS OF THIS SECTION ARE A MATERIAL INDUCEMENT FOR
THE LENDER ENTERING INTO THIS AGREEMENT."

11. Counterparts. For the convenience of the parties, this Amendment may be
executed in multiple counterparts, each of which for all purposes shall be
deemed to be an original, and all such counterparts shall together constitute
but one and the same agreement.

12. Effect. Except as amended hereby, the Credit Agreement shall remain
unchanged and in full force and effect.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       11
<PAGE>   12

13. ENTIRE AGREEMENT. THIS AGREEMENT CONSTITUTES THE ENTIRE AGREEMENT BETWEEN
THE PARTIES HERETO WITH RESPECT TO THE SUBJECT HEREOF. FURTHERMORE, IN THIS
REGARD, THIS AGREEMENT AND THE OTHER WRITTEN LOAN DOCUMENTS REPRESENT,
COLLECTIVELY, THE FINAL AGREEMENT AMONG THE PARTIES THERETO AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF SUCH PARTIES.

         THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH PARTIES.

         IN WITNESS WHEREOF, this Amendment is deemed executed effective as of
the date first above written.

                                          BORROWER:

                                          TREK RESOURCES, INC.
4925 Greenville Avenue, Suite 955
Dallas, Texas  75206
Telecopy: 214/373-8035                    By: /s/ MICHAEL E. MONTGOMERY
                                              ----------------------------------
                                              Name:  Michael E. Montgomery
                                              Title: President

                                          LENDER:

                                          COMPASS BANK
24 Greenway Plaza, Suite 1400
Houston, Texas  77046
Telecopy:  713/968-8292                   By: /s/ DOROTHY MARCHAND
                                              ----------------------------------
                                              Name:  Dorothy Marchand
                                              Title: Senior Vice President

                                       12

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