Document:

Exhibit 10.1

 

 

 

 

 

CREDIT AGREEMENT

 

 

DATED AS OF

JANUARY 3, 2007

 

AMONG

 

NAMI HOLDING COMPANY, LLC,

AS BORROWER,

 

 

CITIBANK, N.A.,

AS ADMINISTRATIVE AGENT,

 

AND

 

THE LENDERS PARTY HERETO

 

 

CO-LEAD ARRANGER, SOLE BOOKRUNNER
AND CO-SYNDICATION AGENT

 

CITIBANK, N.A.

 

 

CO-LEAD ARRANGER AND
CO-SYNDICATION AGENT

 

BNP PARIBAS

 

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE I

  
	
  Definitions and
  Accounting Matters

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
   

  	
  Terms Defined Above

  	
   

  	
  1

  
	
  Section 1.02.

  	
   

  	
  Certain Defined Terms

  	
   

  	
  1

  
	
  Section 1.03.

  	
   

  	
  Types of Loans and Borrowings

  	
   

  	
  21

  
	
  Section 1.04.

  	
   

  	
  Terms Generally; Rules of Construction

  	
   

  	
  21

  
	
  Section 1.05.

  	
   

  	
  Accounting Terms and Determinations; GAAP

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
  The Credits

  
	
  Section 2.01.

  	
   

  	
  Commitments

  	
   

  	
  22

  
	
  Section 2.02.

  	
   

  	
  Loans and Borrowings

  	
   

  	
  22

  
	
  Section 2.03.

  	
   

  	
  Requests for Borrowings

  	
   

  	
  23

  
	
  Section 2.04.

  	
   

  	
  Interest Elections

  	
   

  	
  24

  
	
  Section 2.05.

  	
   

  	
  Funding of Borrowings

  	
   

  	
  26

  
	
  Section 2.06.

  	
   

  	
  Termination and Reduction of Aggregate Maximum
  Credit Amounts

  	
   

  	
  26

  
	
  Section 2.07.

  	
   

  	
  Borrowing Base

  	
   

  	
  27

  
	
  Section 2.08.

  	
   

  	
  Letters of Credit

  	
   

  	
  29

  
	
  Section 2.09.

  	
   

  	
  Collateral

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
  Payments of
  Principal and Interest; Prepayments; Fees

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Repayment of Loans

  	
   

  	
  38

  
	
  Section 3.02.

  	
   

  	
  Interest

  	
   

  	
  38

  
	
  Section 3.03.

  	
   

  	
  Alternate Rate of Interest

  	
   

  	
  39

  
	
  Section 3.04.

  	
   

  	
  Prepayments

  	
   

  	
  39

  
	
  Section 3.05.

  	
   

  	
  Fees

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
  Payments; Pro
  Rata Treatment; Sharing of Set-offs

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Payments Generally; Pro Rata Treatment; Sharing of
  Set-offs

  	
   

  	
  42

  
	
  Section 4.02.

  	
   

  	
  Presumption of Payment by the Borrower

  	
   

  	
  43

  
	
  Section 4.03.

  	
   

  	
  Certain Deductions by the Administrative Agent

  	
   

  	
  44

  
	
  Section 4.04.

  	
   

  	
  Disposition of Proceeds

  	
   

  	
  44

  

 

 i
 

 

	
  ARTICLE V

  
	
  Increased Costs;
  Break Funding Payments; Taxes; Illegality

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Increased Costs

  	
   

  	
  44

  
	
  Section 5.02.

  	
   

  	
  Break Funding Payments

  	
   

  	
  45

  
	
  Section 5.03.

  	
   

  	
  Taxes

  	
   

  	
  46

  
	
  Section 5.04.

  	
   

  	
  Mitigation Obligations; Replacement of Lenders

  	
   

  	
  48

  
	
  Section 5.05.

  	
   

  	
  Illegality

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
  Conditions
  Precedent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Effective Date

  	
   

  	
  49

  
	
  Section 6.02.

  	
   

  	
  Each Credit Event

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
  Representations
  and Warranties

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
   

  	
  Organization; Powers

  	
   

  	
  53

  
	
  Section 7.02.

  	
   

  	
  Authority; Enforceability

  	
   

  	
  53

  
	
  Section 7.03.

  	
   

  	
  Approvals; No Conflicts

  	
   

  	
  54

  
	
  Section 7.04.

  	
   

  	
  Financial Condition; No Material Adverse Change

  	
   

  	
  54

  
	
  Section 7.05.

  	
   

  	
  Litigation

  	
   

  	
  55

  
	
  Section 7.06.

  	
   

  	
  Environmental Matters

  	
   

  	
  55

  
	
  Section 7.07.

  	
   

  	
  Compliance with the Laws and Agreements; No Defaults

  	
   

  	
  56

  
	
  Section 7.08.

  	
   

  	
  Investment Company Act

  	
   

  	
  56

  
	
  Section 7.09.

  	
   

  	
  Taxes

  	
   

  	
  57

  
	
  Section 7.10.

  	
   

  	
  ERISA

  	
   

  	
  57

  
	
  Section 7.11.

  	
   

  	
  Disclosure; No Material Misstatements

  	
   

  	
  58

  
	
  Section 7.12.

  	
   

  	
  Insurance

  	
   

  	
  58

  
	
  Section 7.13.

  	
   

  	
  Restriction on Liens

  	
   

  	
  59

  
	
  Section 7.14.

  	
   

  	
  Subsidiaries

  	
   

  	
  59

  
	
  Section 7.15.

  	
   

  	
  Location of Business and Offices

  	
   

  	
  59

  
	
  Section 7.16.

  	
   

  	
  Properties; Titles, Etc.

  	
   

  	
  59

  
	
  Section 7.17.

  	
   

  	
  Maintenance of Properties

  	
   

  	
  60

  
	
  Section 7.18.

  	
   

  	
  Gas Imbalances, Prepayments

  	
   

  	
  61

  
	
  Section 7.19.

  	
   

  	
  Marketing of Production

  	
   

  	
  61

  
	
  Section 7.20.

  	
   

  	
  Swap Agreements

  	
   

  	
  61

  
	
  Section 7.21.

  	
   

  	
  Use of Loans and Letters of Credit and Proceeds of
  Equity Event

  	
   

  	
  62

  
	
  Section 7.22.

  	
   

  	
  Solvency

  	
   

  	
  62

  
	
  Section 7.23.

  	
   

  	
  Sanctioned Persons

  	
   

  	
  62

  
	
  Section 7.24.

  	
   

  	
  Security Instruments

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
  Affirmative
  Covenants

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
   

  	
  Financial Statements; Other Information

  	
   

  	
  63

  

 

 ii
 

 

	
  Section 8.02.

  	
   

  	
  Notices of Material Events

  	
   

  	
  66

  
	
  Section 8.03.

  	
   

  	
  Existence; Conduct of Business

  	
   

  	
  67

  
	
  Section 8.04.

  	
   

  	
  Payment of Obligations

  	
   

  	
  67

  
	
  Section 8.05.

  	
   

  	
  Performance of Obligations under Loan Documents

  	
   

  	
  67

  
	
  Section 8.06.

  	
   

  	
  Operation and Maintenance of Properties

  	
   

  	
  67

  
	
  Section 8.07.

  	
   

  	
  Insurance

  	
   

  	
  69

  
	
  Section 8.08.

  	
   

  	
  Books and Records; Inspection Rights

  	
   

  	
  69

  
	
  Section 8.09.

  	
   

  	
  Compliance with Laws

  	
   

  	
  69

  
	
  Section 8.10.

  	
   

  	
  Environmental Matters

  	
   

  	
  69

  
	
  Section 8.11.

  	
   

  	
  Further Assurances

  	
   

  	
  70

  
	
  Section 8.12.

  	
   

  	
  Reserve Reports

  	
   

  	
  71

  
	
  Section 8.13.

  	
   

  	
  Title Information

  	
   

  	
  72

  
	
  Section 8.14.

  	
   

  	
  Additional Collateral; Additional Guarantors

  	
   

  	
  72

  
	
  Section 8.15.

  	
   

  	
  ERISA Compliance

  	
   

  	
  74

  
	
  Section 8.16.

  	
   

  	
  Swap Agreements and Put Option Contracts

  	
   

  	
  74

  
	
  Section 8.17.

  	
   

  	
  Termination of Scheduled Swap Agreements

  	
   

  	
  74

  
	
  Section 8.18.

  	
   

  	
  Administrative Agent as Principal Depository

  	
   

  	
  75

  
	
  Section 8.19.

  	
   

  	
  Chief Financial Officer

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
  Negative
  Covenants

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
   

  	
  Financial Covenants

  	
   

  	
  75

  
	
  Section 9.02.

  	
   

  	
  Debt

  	
   

  	
  76

  
	
  Section 9.03.

  	
   

  	
  Liens

  	
   

  	
  76

  
	
  Section 9.04.

  	
   

  	
  Dividends, Distributions and Redemptions

  	
   

  	
  77

  
	
  Section 9.05.

  	
   

  	
  Investments, Loans and Advances

  	
   

  	
  77

  
	
  Section 9.06.

  	
   

  	
  Nature of Business; International Operations

  	
   

  	
  79

  
	
  Section 9.07.

  	
   

  	
  Limitation on Leases

  	
   

  	
  79

  
	
  Section 9.08.

  	
   

  	
  Proceeds of Notes

  	
   

  	
  79

  
	
  Section 9.09.

  	
   

  	
  ERISA Compliance

  	
   

  	
  79

  
	
  Section 9.10.

  	
   

  	
  Sale or Discount of Receivables

  	
   

  	
  80

  
	
  Section 9.11.

  	
   

  	
  Mergers, Etc.

  	
   

  	
  81

  
	
  Section 9.12.

  	
   

  	
  Sale of Properties

  	
   

  	
  81

  
	
  Section 9.13.

  	
   

  	
  Environmental Matters

  	
   

  	
  81

  
	
  Section 9.14.

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  81

  
	
  Section 9.15.

  	
   

  	
  Subsidiaries

  	
   

  	
  81

  
	
  Section 9.16.

  	
   

  	
  Negative Pledge Agreements; Dividend Restrictions

  	
   

  	
  82

  
	
  Section 9.17.

  	
   

  	
  Gas Imbalances, Take-or-Pay or Other Prepayments

  	
   

  	
  82

  
	
  Section 9.18.

  	
   

  	
  Swap Agreements

  	
   

  	
  82

  
	
  Section 9.19.

  	
   

  	
  Marketing Activities

  	
   

  	
  82

  
	
  Section 9.20.

  	
   

  	
  Management Fees

  	
   

  	
  83

  

 

 iii
 

 

	
  ARTICLE X

  
	
  Events of
  Default; Remedies

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
   

  	
  Events of Default

  	
   

  	
  83

  
	
  Section 10.02.

  	
   

  	
  Remedies

  	
   

  	
  85

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  
	
  The Agents

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
   

  	
  Appointment; Powers

  	
   

  	
  86

  
	
  Section 11.02.

  	
   

  	
  Duties and Obligations of Administrative Agent

  	
   

  	
  87

  
	
  Section 11.03.

  	
   

  	
  Action by Administrative Agent

  	
   

  	
  87

  
	
  Section 11.04.

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  88

  
	
  Section 11.05.

  	
   

  	
  Subagents

  	
   

  	
  89

  
	
  Section 11.06.

  	
   

  	
  Resignation or Removal of Administrative Agent

  	
   

  	
  89

  
	
  Section 11.07.

  	
   

  	
  Agents as Lenders

  	
   

  	
  89

  
	
  Section 11.08.

  	
   

  	
  No Reliance

  	
   

  	
  90

  
	
  Section 11.09.

  	
   

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  90

  
	
  Section 11.10.

  	
   

  	
  Authority of Administrative Agent to Release
  Collateral and Liens

  	
   

  	
  91

  
	
  Section 11.11.

  	
   

  	
  The Arranger, Bookrunner, Etc.

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.01.

  	
   

  	
  Notices

  	
   

  	
  92

  
	
  Section 12.02.

  	
   

  	
  Waivers; Amendments

  	
   

  	
  94

  
	
  Section 12.03.

  	
   

  	
  Expenses, Indemnity; Damage Waiver

  	
   

  	
  95

  
	
  Section 12.04.

  	
   

  	
  Successors and Assigns

  	
   

  	
  97

  
	
  Section 12.05.

  	
   

  	
  Survival; Revival; Reinstatement

  	
   

  	
  100

  
	
  Section 12.06.

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  101

  
	
  Section 12.07.

  	
   

  	
  Severability

  	
   

  	
  101

  
	
  Section 12.08.

  	
   

  	
  Right of Setoff

  	
   

  	
  102

  
	
  Section 12.09.

  	
   

  	
  GOVERNING LAW;
  JURISDICTION; CONSENT TO SERVICE OF PROCESS; WAIVER OF JURY TRIAL

  	
   

  	
  102

  
	
  Section 12.10.

  	
   

  	
  Headings

  	
   

  	
  103

  
	
  Section 12.11.

  	
   

  	
  Confidentiality

  	
   

  	
  103

  
	
  Section 12.12.

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  103

  
	
  Section 12.13.

  	
   

  	
  EXCULPATION PROVISIONS

  	
   

  	
  104

  
	
  Section 12.14.

  	
   

  	
  Collateral Matters; Swap Agreements

  	
   

  	
  105

  
	
  Section 12.15.

  	
   

  	
  No Third Party Beneficiaries

  	
   

  	
  105

  
	
  Section 12.16.

  	
   

  	
  USA Patriot Act Notice

  	
   

  	
  105

  

 

 iv
 

ANNEXES,
EXHIBITS AND SCHEDULES

	
  Annex I

  	
   

  	
  List of Maximum Credit Amounts

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Note

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of Borrowing Request

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Form of Interest Election Request

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  Form of Compliance Certificate

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  Security Instruments

  	
   

  	
   

  
	
  Exhibit F

  	
   

  	
  Form of Assignment and Assumption

  	
   

  	
   

  
	
  Exhibit G

  	
   

  	
  Affidavit of Payment of Trade Bills

  	
   

  	
   

  
	
  Exhibit H

  	
   

  	
  Property Certificate

  	
   

  	
   

  
	
  Exhibit I

  	
   

  	
  Reconciliation Schedule

  	
   

  	
   

  
	
  Exhibit J

  	
   

  	
  Form of Release of Lien

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 2.09(c)(1)

  	
   

  	
  Proved Developed Oil and Gas Properties

  	
   

  	
   

  
	
  Schedule 2.09(c)(2)

  	
   

  	
  Proved Undeveloped Oil and Gas Properties

  	
   

  	
   

  
	
  Schedule 2.09(d)

  	
   

  	
  Post-Closing Title Opinions

  	
   

  	
   

  
	
  Schedule 7.05

  	
   

  	
  Litigation

  	
   

  	
   

  
	
  Schedule 7.06

  	
   

  	
  Environmental

  	
   

  	
   

  
	
  Schedule 7.12

  	
   

  	
  Insurance

  	
   

  	
   

  
	
  Schedule 7.14

  	
   

  	
  Subsidiaries and Partnerships

  	
   

  	
   

  
	
  Schedule 7.18

  	
   

  	
  Gas Imbalances

  	
   

  	
   

  
	
  Schedule 7.19

  	
   

  	
  Marketing Contracts

  	
   

  	
   

  
	
  Schedule 7.20

  	
   

  	
  Current Swap Agreements

  	
   

  	
   

  
	
  Schedule 7.24

  	
   

  	
  Mortgage Filing Offices

  	
   

  	
   

  
	
  Schedule 8.16

  	
   

  	
  Minimum Swap Requirements and Minimum Put Option
  Requirements

  	
   

  	
   

  
	
  Schedule 9.03

  	
   

  	
  Existing Liens

  	
   

  	
   

  
	
  Schedule 9.05

  	
   

  	
  Investments

  	
   

  	
   

  

 

 v

THIS CREDIT AGREEMENT
dated as of January 3, 2007, is among NAMI HOLDING COMPANY, LLC,
a limited liability company duly formed and existing under the laws of the
Commonwealth of Kentucky (the “Borrower”); each of the Lenders from time to time
party hereto; and CITIBANK, N.A. (in
its individual capacity, “Citibank”),
as administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, the “Administrative Agent”).

R E C I T A L S

A.            The
Borrower has requested that the Lenders provide certain loans to and extensions
of credit on behalf of the Borrower.

B.            The
Lenders have agreed to make such loans and extensions of credit subject to the
terms and conditions of this Agreement.

C.            In
consideration of the mutual covenants and agreements herein contained and of
the loans, extensions of credit and commitments hereinafter referred to, the
parties hereto agree as follows:

ARTICLE I

Definitions and Accounting Matters

Section 1.01.          Terms
Defined Above.  As used in this
Agreement, each term defined above has the meaning indicated above.

Section 1.02.          Certain
Defined Terms.  As used in this
Agreement, the following terms have the meanings specified below:

“ABR”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Alternate Base
Rate.

“Adjusted LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the LIBO
Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

“Administrative Questionnaire” means an Administrative
Questionnaire in a form supplied from time to time by the Administrative Agent.

“Affected Loans” has the meaning assigned such term in
Section 5.05.

“Affidavit of Payment of
Trade Bills” has the meaning assigned such term in Section
6.01(p).

“Affiliate” means, with respect to a specified Person,
another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person
specified.

 1
 

“Agents” means, collectively, the Administrative Agent
and other agents subsequently named; and “Agent” shall mean either the
Administrative Agent or such other agent, as the context requires.

“Aggregate Maximum Credit Amounts” at any time shall
equal the sum of the Maximum Credit Amounts of the respective Lenders, as the
same may be reduced or terminated pursuant to Section 2.06.

“Agreement” means this Credit Agreement, as the same
may from time to time be amended, modified, supplemented or restated.

“Alternate Base Rate” means, for any day, a rate per
annum equal to the greater of (a) the Prime Rate in effect on such day and (b)
the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1%.  Any change in the Alternate Base Rate due to
a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective from and including the effective date of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively.

“Applicable Margin”
means, for any day, with respect to any ABR Loan or Eurodollar Loan, or with
respect to the Commitment Fee Rate, as the case may be, the rate per annum set
forth in the Borrowing Base Utilization Grid below based upon the Borrowing
Base Utilization Percentage then in effect:

Borrowing
Base Utilization Grid

	
  Borrowing Base Utilization Percentage

  	
   

  	
  <25%

  	
   

  	
  >25%
  <50%

  	
   

  	
  >50%
  <75%

  	
   

  	
  >75%

  	
   

  
	
  Eurodollar Loans

  	
   

  	
  1.375%

  	
   

  	
  1.50%

  	
   

  	
  1.75%

  	
   

  	
  2.00%

  	
   

  
	
  ABR Loans

  	
   

  	
  .25%

  	
   

  	
  .50%

  	
   

  	
  .75%

  	
   

  	
  1.00%

  	
   

  
	
  Commitment Fee Rate

  	
   

  	
  .25%

  	
   

  	
  .375%

  	
   

  	
  .375%

  	
   

  	
  .50%

  	
   

  
	
  Letter of Credit Fee

  	
   

  	
  1.375%

  	
   

  	
  1.50%

  	
   

  	
  1.75%

  	
   

  	
  2.00%

  	
   

  

 

Each change in the Applicable Margin shall apply
during the period commencing on the effective date of such change and ending on
the date immediately preceding the effective date of the next such change,
provided, however, that if at any time the Borrower fails to deliver a Reserve
Report pursuant to Section 8.12(a), then the “Applicable Margin”
means the rate per annum set forth on the grid when the Borrowing Base
Utilization Percentage is at its highest level. 
Notwithstanding the foregoing grid, if an Equity Event has not resulted
in the repayment of at least $80,000,000 of Indebtedness on or before
July 1, 2007, then the Applicable Margin commencing July 1, 2007 and
continuing to the Maturity Date shall be as follows:

	
  Eurodollar Loans

  	
   

  	
  3.00

  	
  %

  
	
  ABR Loans

  	
   

  	
  4.00

  	
  %

  
	
  Commitment Fee
  Rate

  	
   

  	
  0.50

  	
  %

  
	
  Letter of Credit Fee

  	
   

  	
  3.00

  	
  %

  

 

“Applicable Percentage” means, with respect to any
Lender, the percentage of the Aggregate Maximum Credit Amounts represented by
such Lender’s Maximum Credit Amount 

 2
 

as such percentage is set
forth on Annex I.  If the Maximum Credit
Amounts have terminated or expired, the Applicable Percentages shall be
determined based upon the Maximum Credit Amounts most recently in effect,
giving effect to any assignments.

“Approved Counterparty” means (a) any Lender or any
Affiliate of a Lender, or (b) any other Person engaged in the business of
writing Swap Agreements whose long term senior unsecured debt rating is A-/A3
by S&P or Moody’s (or their equivalent) or higher and that is acceptable to
the Administrative Agent, or (c) any other Person from time to time
approved by the Majority Lenders.

“Approved Fund” means any Person (other than a natural
person) that is engaged in making, purchasing, holding or investing in bank
loans and similar extensions of credit in the ordinary course of its business
and that is administered or managed by (a) a Lender, (b) an Affiliate of a
Lender or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

“Approved Petroleum Engineers” means
(a) Netherland, Sewell & Associates, Inc., (b) Ryder Scott
Company Petroleum Consultants, L.P., and (c) any other independent
petroleum engineers acceptable to the Administrative Agent.

“Ariana”  means Ariana Energy, LLC, a Tennessee limited liability
company.

“Arranger” means (a) Citibank, in its capacities
as the co-lead arranger, sole bookrunner and co-syndication agent hereunder,
and (b) BNP Paribas, in its capacities as co-lead arranger and co-syndication
agent hereunder.

“Assignment and Assumption” means an assignment and
assumption entered into by a Lender and an Eligible Assignee (with the consent
of any party whose consent is required by Section 12.04(b)), and
accepted by the Administrative Agent, in the form of Exhibit F or
any other form approved by the Administrative Agent.

“Availability Period” means the period from and
including the Effective Date to but excluding the Termination Date.

“Board” means the Board of Governors of the Federal
Reserve System of the United States of America or any successor Governmental
Authority.

“Borrowing” means Loans of the same Type, made,
converted or continued on the same date and, in the case of Eurodollar Loans,
as to which a single Interest Period is in effect.

“Borrowing Base” means at any time an amount equal to
the amount determined in accordance with Section 2.07, as the same
may be adjusted from time to time pursuant to Section 6.01(p), Section 8.13(c)
or Section 9.12.

“Borrowing Base Deficiency” occurs if at any time the
total Revolving Credit Exposures exceeds the Borrowing Base then in effect.

 3
 

“Borrowing Base Utilization Percentage” means, as of
any day, the fraction expressed as a percentage, the numerator of which is the
sum of the Revolving Credit Exposures of the Lenders on such day, and the
denominator of which is the Borrowing Base in effect on such day.

“Borrowing Request” means a request by the Borrower
for a Borrowing in accordance with Section 2.03.

“Business Day” means any day that is not a Saturday,
Sunday or other day on which commercial banks in New York City or Dallas, Texas
are authorized or required by law to remain closed; and if such day relates to
a Borrowing or continuation of, a payment or prepayment of principal of or
interest on, or a conversion of or into, or the Interest Period for, a
Eurodollar Loan or a notice by the Borrower with respect to any such Borrowing
or continuation, payment, prepayment, conversion or Interest Period, any day
which is also a day on which dealings in dollar deposits are carried out in the
London interbank market.

“Capital Expenditures” means, in respect of any
Person, for any period, the aggregate (determined without duplication) of all
exploration and development expenditures and costs that are capital in nature
and any other expenditures that are capitalized on the balance sheet of such
Person in accordance with GAAP.

“Capital Leases” means, in respect of any Person, all
leases which shall have been, or should have been, in accordance with GAAP,
recorded as capital leases on the balance sheet of the Person liable (whether
contingent or otherwise) for the payment of rent thereunder.

“Casualty Event” means any loss, casualty or other
insured damage to, or any nationalization, taking under power of eminent domain
or by condemnation or similar proceeding of, any Property of the Borrower or
any of its Subsidiaries having a fair market value in excess of $2,000,000.

“Change in Control” means (a) the acquisition of
ownership, directly or indirectly, beneficially or of record, by any Person or
group (within the meaning of the Securities Exchange Act of 1934 and the rules
of the SEC thereunder as in effect on the date hereof) of Equity Interests
representing more than 25% of the aggregate ordinary voting power represented
by the issued and outstanding Equity Interests of the Borrower; provided that the transfer of Equity Interests of the Borrower
pursuant to the Nami Restructure Plan shall not be deemed to be a violation of
this clause; or (b) occupation of a majority of the seats (other than vacant
seats) on the board of managers of the Borrower by Persons who were neither
(i) nominated by the board of managers of the Borrower nor
(ii) appointed by managers so nominated.

“Change in Law” means (a) the adoption of any law,
rule, regulation or treaty after the date of this Agreement, (b) any change in
any law, rule, regulation or treaty or in the interpretation or application
thereof by any Governmental Authority after the date of this Agreement or
(c) compliance by any Lender or the Issuing Bank (or, for purposes of Section 5.01(b)),
by any lending office of such Lender or by such Lender’s or the Issuing Bank’s
holding company, (if any) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after
the date of this Agreement.

 4
 

“Code” means the Internal Revenue Code of 1986, as
amended from time to time, and any successor statute.

“Commitment” means, with respect to each Lender, the
commitment of such Lender to make Loans and to acquire participations in
Letters of Credit hereunder, expressed as an amount representing the maximum
aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such
commitment may be (a) modified from time to time pursuant to Section 2.06
and (b) modified from time to time pursuant to assignments by or to such
Lender pursuant to Section 12.04(b), and “Commitments”
means the aggregate amount of the Commitments of all of the Lenders.  The amount representing each Lender’s
Commitment shall at any time be the lesser of such Lender’s Maximum Credit
Amount and such Lender’s Applicable Percentage of the then effective Borrowing
Base.

“Commitment Fee Rate” has the meaning set forth in the
definition of “Applicable
Margin”.

“Consolidated Subsidiaries” means each Subsidiary of
the Borrower (whether now existing or hereafter created or acquired) the financial
statements of which shall be (or should have been) consolidated with the
financial statements of the Borrower in accordance with GAAP.

“Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.  For the purposes
of this definition, and without limiting the generality of the foregoing, any
Person that owns directly or indirectly 10% or more of the Equity Interests
having ordinary voting power for the election of the managers or other
governing body of a Person will be deemed to “control” such other Person.  “Controlling” and “Controlled”
have meanings correlative thereto.

“Debt” means, for any Person, the sum of the following
(without duplication):  (a) all
obligations of such Person for borrowed money or evidenced by bonds, bankers’
acceptances, debentures, notes or other similar instruments; (b) all
obligations of such Person (whether contingent or otherwise) in respect of
letters of credit, surety or other bonds and similar instruments; (c) all
accounts payable and all accrued expenses, liabilities or other obligations of
such Person to pay the deferred purchase price of Property or services; (d) all
obligations under Capital Leases; (e) all obligations under Synthetic Leases;
(f) all Debt (as defined in the other clauses of this definition) of others
secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) a Lien on any Property of such
Person, whether or not such Debt is assumed by such Person; (g) all Debt (as
defined in the other clauses of this definition) of others guaranteed by such
Person or in which such Person otherwise assures a creditor against loss of the
Debt (howsoever such assurance shall be made) to the extent of the lesser of
the amount of such Debt and the maximum stated amount of such guarantee or
assurance against loss; (h) all obligations or undertakings of such Person to
maintain or cause to be maintained the financial position or covenants of
others or to purchase the Debt or Property of others; (i) obligations to
deliver commodities, goods or services, including, without limitation,
Hydrocarbons, in consideration of one or more advance payments, other than gas
balancing arrangements in the ordinary course of business; (j) obligations to
pay for goods or services even

 5
 

if such goods or services
are not actually received or utilized by such Person; (k) any Debt of a
partnership for which such Person is liable either by agreement, by operation
of law or by a Governmental Requirement but only to the extent of such
liability; (l) Disqualified Capital Stock; and (m) the undischarged balance of
any production payment created by such Person or for the creation of which such
Person directly or indirectly received payment. 
The Debt of any Person shall include all obligations of such Person of
the character described above to the extent such Person remains legally liable
in respect thereof notwithstanding that any such obligation is not included as
a liability of such Person under GAAP.

“Default” means any event or condition which
constitutes an Event of Default or which upon notice, lapse of time or both
would, unless cured or waived, become an Event of Default.

“Disqualified Capital Stock” means any Equity Interest
that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable) or upon the happening of any
event, matures or is mandatorily redeemable for any consideration other than
other Equity Interests (which would not constitute Disqualified Capital Stock),
pursuant to a sinking fund obligation or otherwise, or is convertible or
exchangeable for Debt or redeemable for any consideration other than other
Equity Interests (which would not constitute Disqualified Capital Stock) at the
option of the holder thereof, in whole or in part, or requires the payment of
any cash dividend or any other scheduled payment constituting a return of
capital, in the case of each of the foregoing, on or prior to the date that is
after the earlier of (a) the Maturity Date and (b) the date on which
there are no Loans, LC Exposure or other obligations hereunder outstanding and
all of the Commitments are terminated.

“dollars” or “$” refers to lawful money
of the United States of America.

“Domestic Subsidiary” means any Subsidiary that is
organized under the laws of the United States of America or any state thereof
or the District of Columbia.

“EBITDA” means, for any
twelve-month period (except as otherwise expressly provided) ending on the last
day of any fiscal quarter, consolidated net income, excluding any non-cash
revenue or expense associated with Swap Agreements resulting from FAS 133,
plus without
duplication and to the extent deducted from revenues in determining
consolidated net income, the sum of (a) the aggregate amount of
consolidated Interest Expense for such period, (b) the aggregate amount of
income tax expense for such period, (c) all amounts attributable to
depletion, depreciation and amortization for such period, and (d) all
other non-cash charges, all determined on a consolidated basis with respect to
Borrower and its Subsidiaries in accordance with GAAP, using the results of the
twelve-month period ending with that reporting period (except as otherwise
herein provided).

“Effective Date” means the date on which the
conditions specified in Section 6.01 are satisfied (or waived in
accordance with Section 12.02).

“Electing Party”
has the meaning assigned to such term in Section 2.09(c).

“Eligible
Assignee” means (a) a Lender, (b) an Affiliate of a
Lender, (c) an Approved Fund, and (d) any other Person (other than a
natural person) approved by (i) the Administrative

 6
 

Agent,
(ii) in the case of any assignment of a Commitment, the Issuing Bank, and
(iii) unless an Event of Default has occurred and is continuing, the
Borrower (each such approval not to be unreasonably withheld or delayed); provided
that notwithstanding the foregoing, “Eligible Assignee” shall not include the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

“Engineering Reports” has the meaning assigned such
term in Section 2.07(c)(i).

“Environmental Laws”  means any and all Governmental Requirements relating to the
environment or to emissions, discharges, releases or threatened releases of
pollutants, contaminants, chemicals, or industrial, toxic or hazardous
substances or wastes into the environment including ambient air, surface water,
ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, chemicals, or industrial, toxic or hazardous
substances or wastes.

“Equity Event” means the receipt of proceeds from a
public offering of any equity securities of the Borrower or the entity owning
the Equity Interests of the Borrower or the contribution of any capital to the
Borrower pursuant to the Nami Restructure Plan.

“Equity Interests” means shares of capital stock,
partnership interests, membership interests in a limited liability company,
beneficial interests in a trust or other equity ownership interests in a
Person, and any warrants, options or other rights entitling the holder thereof
to purchase or acquire any such Equity Interest.

“ERISA” means the Employee Retirement Income Security
Act of 1974, as amended, and any successor statute.

“ERISA Affiliate” means each trade or business
(whether or not incorporated) which together with the Borrower or a Subsidiary
would be deemed to be a “single employer” within the meaning of section
4001(b)(1) of ERISA or subsections (b), (c), (m) or (o) of section 414 of the
Code.

“ERISA Event” means (a) a “Reportable Event” described
in section 4043 of ERISA and the regulations issued thereunder, (b) the
withdrawal of the Borrower, a Subsidiary or any ERISA Affiliate from a Plan
during a plan year in which it was a “substantial employer” as defined in
section 4001(a)(2) of ERISA, (c) the filing of a notice of intent to terminate
a Plan or the treatment of a Plan amendment as a termination under section 4041
of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC,
(e) receipt of a notice of withdrawal liability pursuant to Section 4202 of
ERISA or (f) any other event or condition which might constitute grounds under
section 4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any Plan.

“Eurodollar”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Adjusted LIBO
Rate.

“Event of Default” has the meaning assigned such term
in Section 10.01.

 7
 

“Excepted Liens” means:  (a) Liens for Taxes, assessments or other
governmental charges or levies which are not delinquent or which are being
contested in good faith by appropriate action and for which adequate reserves
have been established and maintained in accordance with GAAP; (b) Liens in
connection with workers’ compensation, unemployment insurance or other social
security, old age pension or public liability obligations which are not
delinquent or which are being contested in good faith by appropriate action and
for which adequate reserves have been established and maintained in accordance
with GAAP; (c) statutory landlord’s liens, operators’, vendors’, carriers’,
warehousemen’s, repairmen’s, mechanics’, suppliers’, workers’, materialmen’s,
construction or other like Liens arising by operation of law in the ordinary
course of business or incident to the exploration, development, operation and
maintenance of Oil and Gas Properties each of which is in respect of
obligations that are not delinquent or which are being contested in good faith
by appropriate action and for which adequate reserves have been established and
maintained in accordance with GAAP; (d) contractual Liens which arise in the
ordinary course of business under operating agreements, joint venture
agreements, oil and gas partnership agreements, oil and gas leases, farm-out
agreements, division orders, contracts for the sale, transportation or exchange
of oil and natural gas, unitization and pooling declarations and agreements,
area of mutual interest agreements, overriding royalty agreements, marketing
agreements, processing agreements, net profits agreements, development
agreements, gas balancing or deferred production agreements, injection,
repressuring and recycling agreements, salt water or other disposal agreements,
seismic or other geophysical permits or agreements, and other agreements which
are usual and customary in the oil and gas business and are for claims which
are not delinquent or which are being contested in good faith by appropriate
action and for which adequate reserves have been established and maintained in
accordance with GAAP, provided that any such Lien referred to in this clause
does not materially impair the use of the Property covered by such Lien for the
purposes for which such Property is held by the Borrower or any Subsidiary or
materially impair the value of such Property subject thereto; (e) Liens arising
solely by virtue of any statutory or common law provision relating to banker’s
liens, rights of set-off or similar rights and remedies and burdening only
deposit accounts or other funds maintained with a creditor depository
institution, provided that no such deposit account is a dedicated cash
collateral account or is subject to restrictions against access by the
depositor in excess of those set forth by regulations promulgated by the Board
and no such deposit account is intended by Borrower or any of its Subsidiaries
to provide collateral to the depository institution; (f) easements,
restrictions, servitudes, permits, conditions, covenants, exceptions or
reservations in any Property of the Borrower or any Subsidiary for the purpose
of roads, pipelines, transmission lines, transportation lines, distribution
lines for the removal of gas, oil, coal or other minerals or timber, and other
like purposes, or for the joint or common use of real estate, rights of way,
facilities and equipment, which do not secure any monetary obligations and
which in the aggregate do not materially impair the use of such Property for
the purposes of which such Property is held by the Borrower or any Subsidiary
or materially impair the value of such Property subject thereto; (g) minor
defects and irregularities in title to any Property which do not secure any
monetary obligations and which in the aggregate do not materially impair use of
such Property for the purposes for which such Property is held by the Borrower
and any Subsidiary or materially impair the value of such Property subject
thereto; (h) Liens on cash or securities pledged to secure performance of
tenders, surety and appeal bonds, government contracts, performance and return
of money bonds, bids, trade contracts, leases, statutory obligations,
regulatory obligations and other obligations of

 8
 

a like nature incurred in
the ordinary course of business and (i) judgment and attachment Liens not
giving rise to an Event of Default, provided that any appropriate legal
proceedings which may have been duly initiated for the review of such judgment
shall not have been finally terminated or the period within which such
proceeding may be initiated shall not have expired and no action to enforce
such Lien has been commenced; provided, further that Liens described in clauses
(a) through (e) shall remain “Excepted Liens” only for so long as no action to
enforce such Lien has been commenced and no intention to subordinate the first
priority Lien granted in favor of the Administrative Agent and the Lenders is
to be hereby implied or expressed by the permitted existence of such Excepted
Liens.

“Excluded Taxes” means, with respect to the
Administrative Agent, any Lender, the Issuing Bank or any other recipient of
any payment to be made by or on account of any obligation of the Borrower or
any Guarantor hereunder or under any other Loan Document, (a) income or
franchise taxes imposed on (or measured by) its net income by the United States
of America or such other jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which the Borrower or any Guarantor is
located and (c) in the case of a Foreign Lender (other than an assignee
pursuant to a request by the Borrower under Section 5.04(b)), any
withholding tax that is imposed on amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party to this Agreement (or designates a
new lending office) or is attributable to such Foreign Lender’s failure to
comply with Section 5.03(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a
new lending office (or assignment), to receive additional amounts with respect
to such withholding tax pursuant to Section 5.03(a) or Section 5.03(c).

“Existing Credit Agreements” means the following loan
agreements:

(a)           that certain
Restated Loan Agreement originally dated June 30, 2003, as amended, by and
among NRC, Ariana, as guarantor, Bank of Texas, N.A., as Agent, Bank of Texas,
N.A. and Local Oklahoma Bank.

(b)           that certain Note
Purchase Agreement originally dated December 30, 2004, as amended, by and
among TEC, TCW Asset Management Company, as Administrative Agent, and TCW
Energy Fund X Investors providing for the issuance of $40,000,000 of
senior secured notes.

“FAS 133” means Statement of Financial Accounting
Standard 133 (and any statements replacing, modifying or superseding such
statement) adopted by the Financial Accounting Standards Board.

“Federal Funds Effective Rate” means, for any day, the
weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of
the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received

 9
 

by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.

“Financial Officer” means, for any Person, the chief
financial officer, principal accounting officer, treasurer or controller of
such Person.  Unless otherwise specified,
all references herein to a Financial Officer means a Financial Officer of the
Borrower.

“Financial Statements” means the financial statement
or statements of the Borrower and its Consolidated Subsidiaries referred to in Section 7.04(a).

“Foreign Lender” means any Lender that is organized
under the laws of a jurisdiction other than that in which the Borrower is
located.  For purposes of this
definition, the United States of America, each State thereof and the District
of Columbia shall be deemed to constitute a single jurisdiction.

“Foreign Subsidiary” means any Subsidiary that is not
a Domestic Subsidiary.

“Forfeited PUD Properties”
has the meaning assigned to such term in Section 2.09(c).

“GAAP” means generally accepted accounting principles
in the United States of America as in effect from time to time subject to the
terms and conditions set forth in Section 1.05.

“Governmental Authority” means the government of the
United States of America, any other nation or any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government (including any supranational bodies such as the
European Union or the European Central Bank) over the Borrower, any Subsidiary,
any of their Properties, any Agent, the Issuing Bank or any Lender.

“Governmental Requirement” means any law, statute,
code, ordinance, order, determination, rule, regulation, judgment, decree,
injunction, franchise, permit, certificate, license, authorization or other
directive or requirement, whether now or hereinafter in effect, including,
without limitation, Environmental Laws, energy regulations and occupational,
safety and health standards or controls, of any Governmental Authority.

“Guarantors” means (a) NRC until released as provided
in Section 2.09(c), (b) all Subsidiaries of the Borrower and (c) each
other Subsidiary that guarantees the Indebtedness pursuant to Section 8.14(b).

“Guaranty Agreement” means an agreement executed by
the Guarantors in form and substance satisfactory to the Administrative Agent,
unconditionally guarantying on a joint and several basis, payment of the
Indebtedness, as the same may be amended, modified or supplemented from time to
time.

“Highest Lawful Rate” means, with respect to each
Lender, the maximum nonusurious interest rate, if any, that at any time or from
time to time may be contracted for, taken, reserved,

 10
 

charged or received on
the Notes or on other Indebtedness under laws applicable to such Lender which
are presently in effect or, to the extent allowed by law, under such applicable
laws which may hereafter be in effect and which allow a higher maximum
nonusurious interest rate than applicable laws allow as of the date hereof.

“Hydrocarbon Interests” means all rights, titles,
interests and estates now or hereafter acquired in and to oil and gas leases,
oil, gas and mineral leases (excluding coal and timber), or other liquid or
gaseous hydrocarbon leases, mineral fee interests, overriding royalty and
royalty interests, net profit interests and production payment interests,
including any reserved or residual interests of whatever nature.  Unless other indicated herein, each reference
to the term “Hydrocarbon Interests” shall
mean Hydrocarbon Interests of the Borrower and its Subsidiaries.

“Hydrocarbons” means oil, gas, casinghead gas, drip
gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons,
gaseous hydrocarbons and all products refined or separated therefrom.  Unless otherwise indicated herein, each
reference to the term “Hydrocarbons”
shall mean Hydrocarbons of the Borrower and its Subsidiaries.

“Indebtedness” means any and all amounts owing or to
be owing by the Borrower, any Subsidiary or any Guarantor (whether direct or
indirect (including those acquired by assumption), absolute or contingent, due
or to become due, now existing or hereafter arising):  (a) to the Administrative Agent, the Issuing
Bank or any Lender under any Loan Document; (b) to any Swap Lender under any
Swap Agreement between the Borrower or any Subsidiary and such Swap Lender
(which shall be deemed to be the Swap Termination Value as of the date the
amount of Indebtedness is being determined) and (c) all renewals, extensions
and/or rearrangements of any of the above.

“Indemnified Taxes” means Taxes other than Excluded
Taxes.

“Initial Reserve Report” means the report of
Netherland, Sewell & Associates, Inc., with respect to certain Oil and Gas
Properties of the Borrower and its Subsidiaries as of July 1, 2006.

“Interest Election Request” means a request by the
Borrower to convert or continue a Borrowing in accordance with Section 2.04.

“Interest Expense” means, for any period, the sum
(determined without duplication) of the aggregate gross interest expense of the
Borrower and the Consolidated Subsidiaries for such period, including to the
extent included in interest expense under GAAP: 
(a) amortization of debt discount, (b) capitalized interest and (c) the
portion of any payments or accruals under Capital Leases allocable to interest
expense, minus (i) the portion of any payments or accruals under Synthetic
Leases allocable to interest expense, and (ii) and any imputed interest
pursuant to asset retirement obligations whether or not the same constitutes
interest expense under GAAP.

“Interest Payment Date” means (a) with respect to any
ABR Loan, the last day of each March, June, September and December and (b) with
respect to any Eurodollar Loan, the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, in the case of

 11
 

a Eurodollar Borrowing
with an Interest Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of three months’
duration after the first day of such Interest Period.

“Interest Period” means with respect to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing and ending on
the numerically corresponding day in the calendar month that is one, two, three
or six months thereafter, as the Borrower may elect; provided, that (a) if any
Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (b) any
Interest Period pertaining to a Eurodollar Borrowing that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end
on the last Business Day of the last calendar month of such Interest
Period.  Interest shall accrue from and
including the first day of an Interest Period to but excluding the last day of
such Interest Period.  For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

“Interim Redetermination” has the meaning assigned
such term in Section 2.07(b).

“Interim Redetermination Date” means the date on which
a Borrowing Base that has been redetermined pursuant to an Interim
Redetermination becomes effective as provided in Section 2.07(d).

“Investment” means, for any Person:  (a) the acquisition (whether for cash,
Property, services or securities or otherwise) of Equity Interests of any other
Person or any agreement to make any such acquisition (including, without
limitation, any “short sale” or any sale of any securities at a time when such
securities are not owned by the Person entering into such short sale) or any
capital contribution to any other Persons; (b) the making of any deposit
with, or advance, loan or capital contribution to, assumption of Debt of,
purchase or other acquisition of any other Debt or equity participation or
interest in, or other extension of credit to, any other Person (including the
purchase of Property from another Person subject to an understanding or
agreement, contingent or otherwise, to resell such Property to such Person, but
excluding any such advance, loan or extension of credit having a term not
exceeding ninety (90) days representing the purchase price of inventory or
supplies sold by such Person in the ordinary course of business); (c) the
purchase or acquisition (in one or a series of transactions) of Property of
another Person that constitutes a business unit or (d) the entering into of any
guarantee of, or other contingent obligation (including the deposit of any
Equity Interests to be sold) with respect to, Debt or other liability of any
other Person and (without duplication) any amount committed to be advanced,
lent or extended to such Person.

“Issuing Bank” means
Citibank, in its capacity as the issuer of Letters of Credit hereunder,
and its successors in such capacity as provided in Section 2.08(i).  The Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of the
Issuing Bank, in which case the term “Issuing Bank” shall
include any such Affiliate with respect to Letters of Credit issued by such
Affiliate.

 12
 

“LC Collection Account” has the meaning assigned such
term in Section 2.08(j).

“LC Commitment” at any time means twenty percent (20%)
of the then existing Borrowing Base.

“LC Disbursement” means a payment made by the Issuing
Bank pursuant to a Letter of Credit.

“LC Exposure” means, at any time, the sum of (a) the
aggregate undrawn amount of all outstanding Letters of Credit at such time plus
(b) the aggregate amount of all LC Disbursements that have not yet been
reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender at any time
shall be its Applicable Percentage of the total LC Exposure at such time.

“Lenders” means the Persons listed on Annex I and any
Person that shall have become a party hereto pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party.

“Letter of Credit” means any letter of credit issued
pursuant to this Agreement.

“Letter of Credit Agreements” means all letter of
credit applications and other agreements (including any amendments,
modifications or supplements thereto) submitted by the Borrower, or entered
into by the Borrower (whether for itself or any Subsidiary as the account
party), with the Issuing Bank relating to any Letter of Credit.

“LIBO Rate” means, with respect to any Eurodollar
Borrowing for any Interest Period, the rate appearing on Page 3750 of the Dow
Jones Market Service (or on any successor or substitute page of such Service,
or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as
determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period.  In the event that such rate is not available
at such time for any reason, then the “LIBO Rate” with respect
to such Eurodollar Borrowing for such Interest Period shall be the rate at
which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

“Lien” means any interest in Property securing an
obligation owed to, or a claim by, a Person other than the owner of the
Property, whether such interest is based on the common law, statute or
contract, and whether such obligation or claim is fixed or contingent, and
including but not limited to (a) the lien or security interest arising from a
mortgage, encumbrance, pledge, security agreement, conditional sale or trust
receipt or a lease, consignment or bailment for security purposes or (b)
production payments and the like payable out of Oil and Gas Properties.  The term “Lien”
shall include easements, restrictions, servitudes, permits, conditions,
covenants,

 13
 

exceptions or
reservations. For the purposes of this Agreement, the Borrower and its
Subsidiaries, as applicable, shall be deemed to be the owner of any Property
which they have acquired or hold subject to a conditional sale agreement, or
leases under a financing lease or other arrangement pursuant to which title to
the Property has been retained by or vested in some other Person in a transaction
intended to create a financing.

“Loan Documents” means this Agreement, the Notes, the
Letter of Credit Agreements, the Title Indemnity Agreement, the Affidavit of
Payment of Trade Bills, the Property Certificate, the Reconciliation Schedule,
and the Security Instruments.

“Loans” means the loans made by the Lenders to the
Borrower pursuant to this Agreement.

“Majority Lenders” means, at any time, Lenders having
Loans, LC Exposure and unused Commitments representing more than 66.67% of the
sum of all Loans outstanding, LC Exposure and unused Commitments at such time
(without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)).

“Material Adverse Effect” means a material adverse
change in, or material adverse effect on (a) the business, operations,
Property, condition (financial or otherwise) or prospects of the Borrower and
the Subsidiaries taken as a whole, (b) the ability of the Borrower, any
Subsidiary or any Guarantor to perform any of its obligations under any Loan
Document, (c) the validity or enforceability of any Loan Document or (d) the
rights and remedies of or benefits available to the Administrative Agent, any
other Agent, the Issuing Bank or any Lender under any Loan Document.

“Material Gas Imbalance”
means, with respect to all gas balancing agreements to which the Borrower or
any Subsidiary is a party or by which any mineral interest owned by the
Borrower or any Subsidiary is bound, a net gas imbalance to the Borrower or any
Subsidiary, individually or taken as a whole in excess of $2,000,000. 
Gas imbalances will be determined based on written agreements, if any,
specifying the method of calculation thereof, or, alternatively, if no such
agreements are in existence, gas imbalances will be calculated by multiplying
(x) the volume of gas imbalance as of the date of calculation (expressed
in thousand cubic feet) by (y) the heating value in btu’s per thousand
cubic feet, times the Henry Hubb average daily spot
price for the month immediately preceding the date of calculation.

“Material Indebtedness” means Debt (other than the
Loans and Letters of Credit but including obligations in respect of one or more
Swap Agreements) of any one or more of the Borrower and its Subsidiaries in an
aggregate principal amount exceeding $2,000,000.  For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of the Borrower or any
Subsidiary in respect of any Swap Agreement at any time shall be the Swap
Termination Value.

“Maturity Date” means January 3, 2011.

“Maximum Credit Amount” means, as to each Lender, the
amount set forth opposite such Lender’s name on Annex I under the caption “Maximum
Credit Amounts”, as the same

 14
 

may be (a) reduced or
terminated from time to time in connection with a reduction or termination of
the Aggregate Maximum Credit Amounts pursuant to Section 2.06(b) or
(b) modified from time to time pursuant to any assignment permitted by Section 12.04(b).

“Midstream Assets”  has the meaning assigned to such term in Section 2.09(c).

“Moody’s” means Moody’s Investors Service, Inc. and
any successor thereto that is a nationally recognized rating agency.

“Mortgaged Property” means any Property owned by the
Borrower or any Guarantor which is subject to the Liens existing and to exist
under the terms of the Security Instruments.

“Mortgages” means the mortgages, deeds of trust,
leasehold mortgages, assignments of leases and rents, assignments of proceeds
of production, security documents and the like (including all amendments,
modifications and supplements thereto) delivered pursuant to this Agreement in
order to grant Liens in Oil and Gas Properties of the Borrower and its
Subsidiaries.

“Multiemployer Plan” means a Plan which is a
multiemployer plan as defined in Section 3(37) or 4001 (a)(3) of ERISA.

“Nami Restructure Plan”  means the restructuring of the ownership and the assets of
the Borrower and its Affiliates resulting in the creation of an entity owning
the Borrower which will offer its Equity Interests for sale in the public
market through a public offering, the proceeds of which will be used to repay
at least $80,000,000 of the Indebtedness.

“New Borrowing Base Notice” has the meaning assigned
such term in Section 2.07(d).

“Newco I”
has the meaning assigned to such term in Section 2.09(c).

“Newco II”
has the meaning assigned to such term in Section 2.09(c).

“Newco III”
has the meaning assigned to such term in Section 2.09(c).

“Newco Manager”
has the meaning assigned to such term in Section 2.09(c).

“Non-PDP Reserves”
has the meaning assigned such term in Section 2.09(c).

“Notes” means the promissory notes of the Borrower
described in Section 2.02(d) and being substantially in the form of
Exhibit A, together with all amendments, modifications,
replacements, extensions and rearrangements thereof.

“NRC” means
Nami Resources Company L.L.C., a Kentucky limited liability company.

“Oil and Gas Properties” means (a) Hydrocarbon
Interests; (b) the Properties now or hereafter pooled or unitized with
Hydrocarbon Interests; (c) all presently existing or future unitization,
pooling agreements and declarations of pooled units and the units created
thereby (including without limitation all units created under orders,
regulations and rules of any Governmental Authority) which may affect all or
any portion of the Hydrocarbon Interests;

 15
 

(d) all operating
agreements, contracts and other agreements, including production sharing
contracts and agreements, which relate to any of the Hydrocarbon Interests or
the production, sale, purchase, exchange or processing of Hydrocarbons from or
attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and under
and which may be produced and saved or attributable to the Hydrocarbon
Interests, including all oil in tanks, and all rents, issues, profits,
proceeds, products, revenues and other incomes from or attributable to the
Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and
Properties in any manner appertaining, belonging, affixed or incidental to the
Hydrocarbon Interests and (g) all Properties, rights, titles, interests and
estates described or referred to above, including any and all Property, real or
personal, now owned or hereinafter acquired and situated upon, used, held for
use or useful in connection with the operating, working or development of any
of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive
equipment, rental equipment or other personal Property which may be on such
premises for the purpose of drilling a well or for other similar temporary
uses) and including any and all oil wells, gas wells, injection wells or other
wells, buildings, structures, fuel separators, liquid extraction plants, plant
compressors, pumps, pumping units, field gathering systems, tanks and tank
batteries, fixtures, valves, fittings, machinery and parts, engines, boilers,
meters, apparatus, equipment, appliances, tools, implements, cables, wires,
towers, casing, tubing and rods, surface leases, rights-of-way, easements and
servitudes together with all additions, substitutions, replacements, accessions
and attachments to any and all of the foregoing.  Unless otherwise indicated herein, each
reference to the term “Oil and Gas Properties”
shall mean Oil and Gas Properties of the Borrower and its Subsidiaries.

“Operating Assets” has the meaning
assigned to such term in Section 2.09(c).

“Organizational Documents” mean, (a) with respect to
any corporation, the certificate or articles of incorporation and the bylaws
(or equivalent or comparable constitutive documents with respect to any non US jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

“Other Oil and Gas Leases” has the
meaning assigned to such term in Section 2.09(c).

“Other Taxes” means any and all present or future
stamp or documentary taxes or any other excise or Property taxes, charges or
similar levies arising from any payment made hereunder or from the execution,
delivery or enforcement of, or otherwise with respect to, this Agreement and
any other Loan Document.

“Participant” has the meaning set forth in Section 12.04(c)(i).

“PBGC” means the Pension Benefit Guaranty Corporation,
or any successor thereto.

 16
 

“PDP Reserves”
has the meaning assigned such term in Section 2.09(c).

“Person” means any natural person, corporation,
limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity.

“Plan” means any employee pension benefit plan, as
defined in section 3(2) of ERISA, which (a) is currently or hereafter
sponsored, maintained or contributed to by the Borrower, a Subsidiary or an
ERISA Affiliate or (b) was at any time during the six calendar years preceding
the date hereof, sponsored, maintained or contributed to by the Borrower or a
Subsidiary or an ERISA Affiliate.

“Prime Rate” means the rate of interest per annum
publicly announced from time to time by Citibank
as its prime rate for loans in dollars; each change in the Prime Rate
shall be effective from and including the date such change is publicly
announced as being effective.  Such rate
is set by Citibank as a general reference rate of interest, taking into account
such factors as Citibank may deem appropriate; it being understood that many of
Citibank’s commercial or other loans are priced in relation to such rate, that
it is not necessarily the lowest or best rate actually charged to any customer
and that Citibank may make various commercial or other loans at rates of
interest having no relationship to such rate.

“Producing Strata” has the meaning
assigned to such term in Section 2.09(c).

“Production Payment”
has the meaning assigned such term in Section 7.16(f).

“Production Unit” has the meaning
assigned to such term in Section 2.09(c).

“Property” means any interest in any kind of property or
asset, whether real, personal or mixed, or tangible or intangible, including,
without limitation, cash, securities, accounts and contract rights.

“Property Certificate”
has the meaning assigned such term in Section 6.01(q).

“Proposed Borrowing Base” has the meaning assigned to
such term in Section 2.07(c)(i).

“Proposed Borrowing Base Notice” has the meaning
assigned to such term in Section 2.07(c)(ii).

“Proved Developed Oil and Gas Properties”
or “PD Properties” has the meaning
assigned to such term in Section 2.09(c).

“Proved Undeveloped Oil and Gas Properties”
or “PUD Properties” has the meaning
assigned to such term in Section 2.09(c).

“Purchase Agreement”
has the meaning assigned such term in Section 7.16(f).

“Reconciliation Schedule”
has the meaning assigned such term in Section 6.01(r).

 17
 

“Redemption” means with respect to any Debt, the
repurchase, redemption, prepayment, repayment, defeasance or any other
acquisition or retirement for value (or the segregation of funds with respect
to any of the foregoing) of such Debt.  “Redeem”
has the correlative meaning thereto.

“Redetermination Date” means, with respect to any
Scheduled Redetermination or any Interim Redetermination, the date that the
redetermined Borrowing Base related thereto becomes effective pursuant to Section 2.07(d).

“Register” has the meaning assigned such term in Section 12.04(b)(iv).

“Regulation D” means Regulation D of the Board, as the
same may be amended, supplemented or replaced from time to time.

“Related Parties” means, with respect to any specified
Person, such Person’s Affiliates and the respective directors, managers,
officers, employees, agents and advisors (including attorneys, accountants and
experts) of such Person and such Person’s Affiliates.

“Remedial Work” has the meaning assigned such term in Section 8.10(a).

“Reserve Report” means the Initial Reserve Report and
each other report, in form and substance satisfactory to the Administrative
Agent, setting forth, as of each December 31st or June 30th
(or such other date in the event of an Interim Redetermination) the oil and gas
reserves attributable to the Oil and Gas Properties of the Borrower and the
Subsidiaries, together with a projection of the rate of production and future
net income, taxes, operating expenses and Capital Expenditures with respect
thereto as of such date, based upon the economic and pricing assumptions
consistent with the Administrative Agent’s lending requirements at the time.

“Responsible Officer” means, as to any Person, the
chief executive officer, the president, any Financial Officer or any vice
president of such Person.  Unless
otherwise specified, all references to a Responsible Officer herein shall mean
a Responsible Officer of the Borrower.

“Restricted Payment” means any dividend or other
distribution (whether in cash, securities or other Property) with respect to
any Equity Interests in the Borrower or any of its Subsidiaries, or any payment
(whether in cash, securities or other Property), including any sinking fund or
similar deposit, on account of the purchase, Redemption, retirement,
acquisition, cancellation or termination of any such Equity Interests in the
Borrower or any of its Subsidiaries or any option, warrant or other right to
acquire any such Equity Interests in the Borrower or any of its Subsidiaries.

“Revolving Credit Exposure” means, with respect to any
Lender at any time, the sum of the outstanding principal amount of such Lender’s
Loans and its LC Exposure at such time.

“S&P” means Standard & Poor’s Ratings Group, a
division of The McGraw-Hill Companies, Inc., and any successor thereto that is
a nationally recognized rating agency.

“Scheduled Redetermination” has the meaning assigned
such term in Section 2.07(b).

 18
 

“Scheduled Redetermination Date” means the date on
which a Borrowing Base that has been redetermined pursuant to a Scheduled
Redetermination becomes effective as provided in Section 2.07(d).

“SEC” means the Securities and Exchange Commission or
any successor Governmental Authority.

“Security Instruments” means the Guaranty Agreements,
the Subsidiary Pledge Agreements, the Mortgages, and other agreements,
instruments or certificates described or referred to in Exhibit E-1, and
any and all other agreements, instruments, consents or certificates now or
hereafter executed and delivered by the Borrower or any other Person (other
than Swap Agreements with the Lenders or any Affiliate of a Lender or
participation or similar agreements between any Lender and any other lender or
creditor with respect to any Indebtedness pursuant to this Agreement) in
connection with, or as security for or to guarantee the payment or performance
of the Indebtedness, the Notes, this Agreement, or reimbursement obligations
under the Letters of Credit, as such agreements may be amended, modified,
supplemented or restated from time to time.

“Smith Employment Agreement”
means that certain Employment Agreement between Scott W. Smith and the
Borrower dated as of October 9, 2006, pursuant to which Mr. Smith has been
employed to devote his entire business time, attention, skill and energy to the
business of the Borrower and to carry out the Nami Restructure Plan.

“Statutory Reserve Rate” means a fraction (expressed
as a decimal), the numerator of which is the number one and the denominator of
which is the number one minus the aggregate of the maximum reserve percentages
(including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board to which the Administrative Agent is
subject, with respect to the Adjusted LIBO Rate, for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the
Board).  Such reserve percentages shall
include those imposed pursuant to such Regulation D.  Eurodollar Loans shall be deemed to
constitute eurocurrency funding and to be subject to such reserve requirements
without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D or any
comparable regulation.  The Statutory
Reserve Rate shall be adjusted automatically on and as of the effective date of
any change in any reserve percentage.

“Subsidiary” means: 
(a) any Person of which at least a majority of the outstanding Equity
Interests having by the terms thereof ordinary voting power to elect a majority
of the board of directors, board of managers or other governing body of such
Person (irrespective of whether or not at the time Equity Interests of any
other class or classes of such Person shall have or might have voting power by reason
of the happening of any contingency) is at the time directly or indirectly
owned or controlled by the Borrower or one or more of its Subsidiaries or by
the Borrower and one or more of its Subsidiaries and (b) any partnership of
which the Borrower or any of its Subsidiaries is a general partner.  Unless otherwise indicated herein, each
reference to the term “Subsidiary” shall mean a Subsidiary of the
Borrower.

 19

“Subsidiary Pledge
Agreements” means one or more pledge agreements in form and
substance satisfactory to the Administrative Agent pursuant to which the Equity
Interests of a Subsidiary are pledged to the Administrative Agent for the
ratable benefit of the Lenders to secure the payment of the Indebtedness and
the reimbursement of obligations under the Letters of Credit, as such
agreements may be amended, modified or supplemented from time to time.

“Swap Agreement” means any agreement with respect to
any swap, forward, future or derivative transaction or option or similar
agreement, whether exchange traded, “over-the-counter” or otherwise, involving,
or settled by reference to, one or more rates, currencies, commodities, equity
or debt instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services
provided by current or former directors, managers,
officers, employees or consultants of the Borrower or the Subsidiaries shall be
a Swap Agreement.

“Swap Lender”
means any Person that is a counterparty to a Swap Agreement with the Borrower
or any Subsidiary that is a Lender or an Affiliate of a Lender or was a Lender
or an Affiliate of a Lender at the time such Swap Agreement was entered into.

“Swap Termination Value” means, in respect of any one
or more Swap Agreements, after taking into account the effect of any legally
enforceable netting agreement relating to such Swap Agreements, (a) for any
date on or after the date such Swap Agreements have been closed out and
termination value(s) determined in accordance therewith, such termination value(s)
and (b) for any date prior to the date referenced in clause (a), the amount(s)
determined as the mark-to-market value(s) for such Swap Agreements, as
determined by the counterparties to such Swap Agreements.

“Synthetic Lease” means, as to any Person, any lease
(including a lease that may be terminated by the lessee at any time) of any
Property (whether real, personal or mixed) (a) that is accounted for as an
operating lease under GAAP and (b) in respect of which the lessee retains or
obtains ownership of the Property so leased for U.S. Federal income tax
purposes, other than any such lease under which such Person is the lessor.

“Taxes” means any and all present or future taxes,
levies, imposts, duties, deductions, withholdings, assessments, fees or other
charges imposed by any Governmental Authority, including any interest additions
to tax or penalties applicable thereto.

“TEC” means
Trust Energy Company, a Kentucky limited liability company.

“Termination Date” means the earlier of the Maturity
Date and the date of termination of the Commitments.

“Title Indemnity Agreement”
has the meaning assigned such term in Section 6.01(k).

“Total Debt” means, at any date, all Debt of the
Borrower and the Consolidated Subsidiaries on a consolidated basis, excluding
(i) non-cash obligations under FAS 133 and

 20
 

(ii) accounts payable and
other accrued liabilities (for the deferred purchase price of Property or
services) from time to time incurred in the ordinary course of business which
are not greater than sixty (60) days past the date of invoice or delinquent or
which are being contested in good faith by appropriate action and for which
adequate reserves are maintained in accordance with GAAP.

“Transactions” means, with respect to (a) the
Borrower, the execution, delivery and performance by the Borrower of this
Agreement, and each other Loan Document to which it is a party, the borrowing
of Loans, the use of the proceeds thereof and the issuance of Letters of Credit
hereunder, and the grant of Liens by the Borrower on Mortgaged Properties and
other Properties pursuant to the Security Instruments and (b) each Guarantor,
the execution, delivery and performance by such Guarantor of each Loan Document
to which it is a party, the guaranteeing of the Indebtedness and the other
obligations under the Guaranty Agreement by such Guarantor and such Guarantor’s
grant of the security interests and provision of collateral under the Security
Instruments, and the grant of Liens by such Guarantor on Mortgaged Properties
and other Properties pursuant to the Security Instruments.

“Transportation Agreement”
has the meaning assigned to such term in Section 2.09(c).

“Type”, when used in reference to any Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans
comprising such Borrowing, is determined by reference to the Alternate Base
Rate or the Adjusted LIBO Rate.

“Wholly-Owned Subsidiary” means (a) any Subsidiary of
which all of the outstanding Equity Interests, on a fully-diluted basis, are
owned by the Borrower or one or more of the Wholly-Owned Subsidiaries or are
owned by the Borrower and one or more of the Wholly-Owned Subsidiaries or (b)
any Subsidiary that is organized in a foreign jurisdiction and is required by
the applicable laws and regulations of such foreign jurisdiction to be
partially owned by the government of such foreign jurisdiction or individual or
corporate citizens of such foreign jurisdiction, provided that the Borrower,
directly or indirectly, owns the remaining Equity Interests in such Subsidiary
and, by contract or otherwise, controls the management and business of such
Subsidiary and derives economic benefits of ownership of such Subsidiary to
substantially the same extent as if such Subsidiary were a Wholly-Owned
Subsidiary.

Section 1.03.          Types of Loans and
Borrowings.  For purposes of this
Agreement, Loans and Borrowings, respectively, may be classified and referred
to by Type (e.g., a “Eurodollar Loan” or a “Eurodollar Borrowing”).

Section 1.04.          Terms Generally;
Rules of Construction.  The
definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be
construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth in the Loan Documents), (b) any reference herein to any law shall be

 21
 

construed as
referring to such law as amended, modified, codified or reenacted, in whole or
in part, and in effect from time to time, (c) any reference herein to any
Person shall be construed to include such Person’s successors and assigns
(subject to the restrictions contained in the Loan Documents), (d) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision
hereof, (e) except as otherwise specified herein, with respect to the
determination of any time period, the word “from” means “from and including”
and the word “to” means “to and including”, (f) any reference herein to
Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer
to Articles and Sections of, and Annexes, Exhibits and Schedules to, this
Agreement and (g) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including, cash, securities, accounts and
contract rights.  No provision of this
Agreement or any other Loan Document shall be interpreted or construed against
any Person solely because such Person or its legal representative drafted such
provision.

Section 1.05.          Accounting Terms and
Determinations; GAAP.  Unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all determinations with respect to accounting matters hereunder
shall be made, and all financial statements and certificates and reports as to
financial matters required to be furnished to the Administrative Agent or the
Lenders hereunder shall be prepared, in accordance with GAAP, applied on a
basis consistent with the Financial Statements except for changes in which the
Borrower’s independent certified public accountants concur and which are
disclosed to Administrative Agent on the next date on which financial statements
are required to be delivered to the Lenders pursuant to Section 8.01(a);
provided that, unless the Borrower and the Majority Lenders shall otherwise
agree in writing, no such change shall modify or affect the manner in which
compliance with the covenants contained herein is computed such that all such
computations shall be conducted utilizing financial information presented
consistently with prior periods.

ARTICLE
II

The Credits

Section 2.01.          Commitments.  Subject to the terms and conditions and relying
upon the representations and warranties herein set forth, each Lender agrees to
make Loans to the Borrower during the Availability Period in an aggregate
principal amount that will not result in (a) such Lender’s Revolving Credit
Exposure exceeding such Lender’s Commitment or (b) the total Revolving Credit
Exposures exceeding the total Commitments. 
Within the foregoing limits and subject to the terms and conditions set
forth herein, the Borrower may borrow, repay and reborrow the Loans.

Section 2.02.          Loans and Borrowings.

(a)           Borrowings; Several Obligations.  Each Loan shall be made as part of a
Borrowing consisting of Loans made by the Lenders ratably in accordance with
their respective Commitments.  The
failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder; provided that the
Commitments are several and no Lender shall be responsible for any other Lender’s
failure to make Loans as required.

 22
 

(b)           Types of Loans.  Subject to Section 3.03, each
Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the
Borrower may request in accordance herewith. 
Each Lender at its option may make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of
the Borrower to repay such Loan in accordance with the terms of this Agreement.

(c)           Minimum Amounts; Limitation on Number of
Borrowings.  At the commencement of
each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in
an aggregate amount that is an integral multiple of $500,000 and not less than
$2,500,000.  At the time that each ABR
Borrowing is made, such Borrowing shall be in an aggregate amount that is an
integral multiple of $100,000 and not less than $1,000,000; provided that an
ABR Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the total Commitments or that is required to finance the reimbursement
of an LC Disbursement as contemplated by Section 2.08(e).  Borrowings of more than one Type may be
outstanding at the same time, provided that there shall not at any time be more
than a total of eight Eurodollar Borrowings outstanding.  Notwithstanding any other provision of this
Agreement, the Borrower shall not be entitled to request, or to elect to
convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Maturity Date.

(d)           Notes.  The Loans made by each Lender shall be
evidenced by a single promissory note of the Borrower in substantially the form
of Exhibit A, dated, in the case of (i) any Lender party hereto as
of the date of this Agreement, as of the date of this Agreement, or
(ii) any Lender that becomes a party hereto pursuant to an Assignment and
Assumption, as of the effective date of the Assignment and Assumption, payable
to the order of such Lender in a principal amount equal to its Maximum Credit
Amount as in effect on such date, and otherwise duly completed.  In the event that any Lender’s Maximum Credit
Amount increases or decreases for any reason (whether pursuant to Section 2.06,
Section 12.04(b) or otherwise), the Borrower shall deliver or cause
to be delivered on the effective date of such increase or decrease, a new Note
payable to the order of such Lender in a principal amount equal to its Maximum
Credit Amount after giving effect to such increase or decrease, and otherwise
duly completed.  The date, amount, Type,
interest rate and, if applicable, Interest Period of each Loan made by each
Lender, and all payments made on account of the principal thereof, shall be
recorded by such Lender on its books for its Note, and, prior to any transfer,
may be endorsed by such Lender on a schedule attached to such Note or any
continuation thereof or on any separate record maintained by such Lender.  Failure to make any such notation or to
attach a schedule shall not affect any Lender’s or the Borrower’s rights or
obligations in respect of such Loans or affect the validity of such transfer by
any Lender of its Note.

Section 2.03.          Requests for
Borrowings.  To request a Borrowing,
the Borrower shall notify the Administrative Agent of such request by telephone
(a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., Dallas,
Texas time, three Business Days before the date of the proposed Borrowing or
(b) in the case of an ABR Borrowing, not later than 11:00 a.m., Dallas, Texas
time, on the date of the proposed Borrowing; provided that no such notice shall
be required for any deemed request of an ABR Borrowing to finance the
reimbursement of an LC Disbursement as provided in Section 2.08(e).  Each such telephonic Borrowing Request shall
be

 23
 

irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Borrowing Request in
substantially the form of Exhibit B and signed by the Borrower.  Each such telephonic and written Borrowing
Request shall specify the following information in compliance with Section 2.02:

(i)            the aggregate amount of the requested
Borrowing;

(ii)           the date of such Borrowing, which shall be a
Business Day;

(iii)          whether such Borrowing is to be an ABR
Borrowing or a Eurodollar Borrowing;

(iv)          in the case of a Eurodollar Borrowing, the
initial Interest Period to be applicable thereto, which shall be a period
contemplated by the definition of the term “Interest Period”;

(v)           the amount of the then effective Borrowing
Base, the current total Revolving Credit Exposures (without regard to the
requested Borrowing) and the pro forma
total Revolving Credit Exposures (giving effect to the requested Borrowing);
and

(vi)          the location and number of the Borrower’s
account to which funds are to be disbursed, which shall comply with the
requirements of Section 2.05.

If no election as to the Type of Borrowing is
specified, then the requested Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with
respect to any requested Eurodollar Borrowing, then the Borrower shall be
deemed to have selected an Interest Period of one month’s duration.  Each Borrowing Request shall constitute a
representation that the amount of the requested Borrowing shall not cause the
total Revolving Credit Exposures to exceed the total Commitments (i.e., the
lesser of the Aggregate Maximum Credit Amounts and the then effective Borrowing
Base).

Promptly following receipt of a Borrowing Request in
accordance with this Section 2.03, the Administrative Agent shall
advise each Lender of the details thereof and of the amount of such Lender’s
Loan to be made as part of the requested Borrowing.

Section 2.04.          Interest Elections.

(a)           Conversion and Continuance.  Each Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurodollar
Borrowing, shall have an initial Interest Period as specified in such Borrowing
Request.  Thereafter, the Borrower may
elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest
Periods therefor, all as provided in this Section 2.04.  The Borrower may elect different options with
respect to different portions of the affected Borrowing, in which case each
such portion shall be allocated ratably among the Lenders holding the Loans
comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing.

 24
 

(b)           Interest Election Requests.  To make an election pursuant to this Section 2.04,
the Borrower shall notify the Administrative Agent of such election by
telephone by the time that a Borrowing Request would be required under Section 2.03
if the Borrower were requesting a Borrowing of the Type resulting from such
election to be made on the effective date of such election.  Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery
or telecopy to the Administrative Agent of a written Interest Election Request
in substantially the form of Exhibit C and signed by the Borrower.

(c)           Information in Interest Election Requests.  Each telephonic and written Interest Election
Request shall specify the following information in compliance with Section 2.02:

(i)            the Borrowing to which such Interest
Election Request applies and, if different options are being elected with
respect to different portions thereof, the portions thereof to be allocated to
each resulting Borrowing (in which case the information to be specified
pursuant to Section 2.04(c)(iii) and (iv) shall be specified
for each resulting Borrowing);

(ii)           the effective date of the election made
pursuant to such Interest Election Request, which shall be a Business Day;

(iii)          whether the resulting Borrowing is to be an
ABR Borrowing or a Eurodollar Borrowing; and

(iv)          if the resulting Borrowing is a Eurodollar
Borrowing, the Interest Period to be applicable thereto after giving effect to
such election, which shall be a period contemplated by the definition of the
term “Interest Period”.

If any such Interest Election Request requests a
Eurodollar Borrowing but does not specify an Interest Period, then the Borrower
shall be deemed to have selected an Interest Period of one month’s
duration.  If such Interest Election
Request does not specify a Type, then the Borrower shall be deemed to have
selected a Type of ABR Borrowing.

(d)           Notice to Lenders by the Administrative
Agent.  Promptly following receipt of
an Interest Election Request, the Administrative Agent shall advise each Lender
of the details thereof and of such Lender’s portion of each resulting
Borrowing.

(e)           Effect of Failure to Deliver Timely
Interest Election Request and Events of Default and Borrowing Base Deficiencies
on Interest Election.  If the
Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable
thereto, then, unless such Borrowing is repaid as provided herein, at the end
of such Interest Period such Borrowing shall be converted to an ABR Borrowing.  Notwithstanding any contrary provision
hereof, if an Event of Default or a Borrowing Base Deficiency has occurred and
is continuing:  (i) no outstanding
Borrowing may be converted to or continued as a Eurodollar Borrowing (and any
Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective)
and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto.

 25
 

Section 2.05.          Funding of Borrowings.

(a)           Funding by Lenders.  Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 1:00 p.m., New York City time, to the account of the Administrative
Agent most recently designated by it for such purpose by notice to the
Lenders.  The Administrative Agent will
make such Loans available to the Borrower by promptly crediting the amounts so
received, in like funds, to an account of the Borrower maintained with the
Administrative Agent and designated by the Borrower in the applicable Borrowing
Request; provided that ABR Loans made to finance the reimbursement of an LC
Disbursement as provided in Section 2.08(e) shall be remitted by
the Administrative Agent to the Issuing Bank. 
Nothing herein shall be deemed to obligate any Lender to obtain the
funds for its Loan in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for
its Loan in any particular place or manner.

(b)           Presumption of Funding by the Lenders.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Borrowing that
such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender
has made such share available on such date in accordance with Section 2.05(a)
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the
date such amount is made available to the Borrower to but excluding the date of
payment to the Administrative Agent, at (i) in the case of such Lender, the greater
of the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation and
(ii) in the case of the Borrower, the interest rate applicable to ABR Loans.  If
the Borrower and such Lender shall pay such interest to the Administrative
Agent for the same or an overlapping period, the Administrative Agent shall
promptly remit to the Borrower the amount of such interest paid by the Borrower
for such period.  If such Lender pays its
share of the applicable Borrowing to the Administrative Agent, then the amount
so paid shall constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Administrative Agent.

Section 2.06.          Termination and
Reduction of Aggregate Maximum Credit Amounts.

(a)           Scheduled Termination of Commitments.  Unless previously terminated, the Commitments
shall terminate on the Maturity Date.  If
at any time the Aggregate Maximum Credit Amounts or the Borrowing Base is
terminated or reduced to zero, then the Commitments shall terminate on the
effective date of such termination or reduction.

(b)           Optional Termination and Reduction of
Aggregate Credit Amounts.

(i)            The Borrower may at any time terminate, or
from time to time reduce, the Aggregate Maximum Credit Amounts; provided that
(A) each reduction of the

 26
 

Aggregate Maximum Credit Amounts shall be in an amount that is an
integral multiple of $500,000 and not less than $2,500,000 and (B) the Borrower
shall not terminate or reduce the Aggregate Maximum Credit Amounts if, after
giving effect to any concurrent prepayment of the Loans in accordance with Section 3.04(c),
the total Revolving Credit Exposures would exceed the total Commitments.

(ii)           The Borrower shall notify the Administrative
Agent of any election to terminate or reduce the Aggregate Maximum Credit
Amounts under Section 2.06(b)(i) at least three Business Days prior
to the effective date of such termination or reduction, specifying such
election and the effective date thereof. 
Promptly following receipt of any notice, the Administrative Agent shall
advise the Lenders of the contents thereof. 
Each notice delivered by the Borrower pursuant to this Section 2.06(b)(ii)
shall be irrevocable.  Any termination or
reduction of the Aggregate Maximum Credit Amounts shall be permanent and may
not be reinstated.  Each reduction of the
Aggregate Maximum Credit Amounts shall be made ratably among the Lenders in
accordance with each Lender’s Applicable Percentage.

Section 2.07.          Borrowing Base.

(a)           Initial Borrowing Base.  The term “Borrowing Base” means, as of the date of the determination
thereof, the designated loan value as calculated by the Lenders in their sole
discretion assigned to the discounted present value of future net income
accruing to the Mortgaged Property, based upon the Lenders’ in-house evaluation
of the Mortgaged Property.  The Lenders’
determination of the Borrowing Base will be made in accordance with
then-current practices, economic and pricing parameters, methodology,
assumptions, and customary procedures and standards established by each Lender
from time to time for its petroleum industry customers.  The Borrower acknowledges that the
determination of the Borrowing Base contains an equity cushion (market value in
excess of loan amount) which the Borrower acknowledges to be essential for the
adequate protection of the Lenders.  For
the period from and including the Effective Date to but excluding the first
Redetermination Date, the amount of the Borrowing Base shall be
$115,500,000.  Notwithstanding the
foregoing, the Borrowing Base may be subject to further adjustments from time
to time pursuant to Section 8.13(c) or Section 9.12.

(b)           Scheduled and Interim Redeterminations.  The Borrowing Base shall be redetermined
semi-annually in accordance with this Section 2.07 (a “Scheduled
Redetermination”), and, subject to Section 2.07(d),
such redetermined Borrowing Base shall become effective and applicable to the
Borrower, the Agents, the Issuing Bank and the Lenders on April 1st and October
1st of each year, commencing April 1, 2007.  In addition, the Borrower may, by notifying
the Administrative Agent thereof, not more than two (2) times during any 12-month
period, and the Administrative Agent may at any time, at the direction of the
Majority Lenders, by notifying the Borrower thereof, each elect to cause the
Borrowing Base to be redetermined between Scheduled Redeterminations (an “Interim
Redetermination”) in accordance with this Section 2.07.  The Borrower acknowledges that the
Administrative Agent may elect to cause the Borrowing Base to be redetermined
if an Equity Event has not taken place prior to July 1, 2007 (which
redetermination will be in addition to any Scheduled Redeterminations).

 27
 

(c)           Scheduled and Interim Redetermination
Procedure.

(i)            Each Scheduled Redetermination and each
Interim Redetermination shall be effectuated as follows:  Upon receipt by the Administrative Agent of
(A) the Reserve Report and the certificate required to be delivered by the
Borrower to the Administrative Agent, in the case of a Scheduled
Redetermination, pursuant to Section 8.12(a) and (c), and, in the
case of an Interim Redetermination, pursuant to Section 8.12(b) and
(c), and (B) such other reports, data and supplemental information,
including, without limitation, the information provided pursuant to Section 8.12(c),
as may, from time to time, be reasonably requested by the Majority Lenders (the
Reserve Report, such certificate and such other reports, data and supplemental
information being the “Engineering Reports”), the Administrative Agent shall
evaluate the information contained in the Engineering Reports and shall, in good
faith, propose a new Borrowing Base (the “Proposed Borrowing Base”)
based upon such information and such other information (including, without
limitation, the status of title information with respect to the Oil and Gas
Properties as described in the Engineering Reports and the existence of any
other Debt) as the Administrative Agent deems appropriate in its sole
discretion and consistent with its normal oil and gas lending criteria as it
exists at the particular time.  In no
event shall the Proposed Borrowing Base exceed the Aggregate Maximum Credit
Amounts.

(ii)           The Administrative Agent shall notify the
Borrower and the Lenders of the Proposed Borrowing Base (the “Proposed
Borrowing Base Notice”):

(A)          in the case of a Scheduled Redetermination
(1) if the Administrative Agent shall have received the Engineering Reports
required to be delivered by the Borrower pursuant to Section 8.12(a)
and (c) in a timely and complete manner, then on or before the
March 1st and September 1st of such year following the date of
delivery or (2) if the Administrative Agent shall not have received the
Engineering Reports required to be delivered by the Borrower pursuant to Section 8.12(a)
and (c) in a timely and complete manner, then promptly after the
Administrative Agent has received complete Engineering Reports from the
Borrower and has had a reasonable opportunity to determine the Proposed
Borrowing Base in accordance with Section 2.07(c)(i), and in any
event, with thirty (30) days after the Administrative Agent has received the
required Engineering Reports; and

(B)           in the case of an Interim Redetermination,
promptly, and in any event, within fifteen (15) days after the Administrative
Agent has received the required Engineering Reports.

(iii)          Any Proposed Borrowing Base that would
increase the Borrowing Base then in effect must be approved or deemed to have
been approved by all of the Lenders as provided in this Section 2.07(c)(iii);
and any Proposed Borrowing Base that would decrease or maintain the Borrowing
Base then in effect must be approved or be deemed to have been approved by the
Majority Lenders as provided in this Section 2.07(c)(iii).  Upon receipt of the Proposed Borrowing Base
Notice, each Lender shall have fifteen (15) days to agree with the Proposed
Borrowing Base or disagree with the Proposed Borrowing Base by proposing an
alternate Borrowing Base.  If at the end
of such fifteen (15) days, any Lender has not communicated its approval or
disapproval in writing to the Administrative Agent, such silence shall be deemed
to be an approval of the Proposed Borrowing Base.  If, at the end of such 15-day

 28
 

period, all of the Lenders, in the case of a Proposed Borrowing Base
that would increase the Borrowing Base then in effect, or the Majority Lenders,
in the case of a Proposed Borrowing Base that would decrease or maintain the
Borrowing Base then in effect, have approved or deemed to have approved, as
aforesaid, then the Proposed Borrowing Base shall become the new Borrowing
Base, effective on the date specified in Section 2.07(d).  If, however, at the end of such 15-day
period, all of the Lenders or the Majority Lenders, as applicable, have not
approved or deemed to have approved, as aforesaid, then the Administrative
Agent shall poll the Lenders to ascertain the highest Borrowing Base then
acceptable to all of the Lenders or the Majority Lenders, as applicable, and,
so long as such amount does not increase the Borrowing Base then in effect,
such amount shall become the new Borrowing Base, effective on the date
specified in Section 2.07(d).

(d)           Effectiveness of a Redetermined Borrowing
Base.  After a redetermined Borrowing
Base is approved or is deemed to have been approved by all of the Lenders or
the Majority Lenders, as applicable, pursuant to Section 2.07(c)(iii),
the Administrative Agent shall notify the Borrower and the Lenders of the
amount of the redetermined Borrowing Base (the “New Borrowing Base Notice”),
and such amount shall become the new Borrowing Base, effective and applicable
to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders:

(i)            in the case of a Scheduled Redetermination,
(A) if the Administrative Agent shall have received the Engineering Reports
required to be delivered by the Borrower pursuant to Section 8.12(a)
and (c) in a timely and complete manner, then on the April 1st or
October 1st, as applicable, following such notice, or (B) if the Administrative
Agent shall not have received the Engineering Reports required to be delivered
by the Borrower pursuant to Section 8.12(a) and (c) in a
timely and complete manner, then on the Business Day next succeeding delivery
of such notice; and

(ii)           in the case of an Interim Redetermination,
on the Business Day next succeeding delivery of such notice.

Such amount shall then become the Borrowing Base until
the next Scheduled Redetermination Date, the next Interim Redetermination Date
or the next adjustment to the Borrowing Base under Section 8.13(c)
or Section 9.12, whichever occurs first.  Notwithstanding the foregoing, no Scheduled
Redetermination or Interim Redetermination shall become effective until the New
Borrowing Base Notice related thereto is received by the Borrower.

Section 2.08.          Letters of Credit.

(a)           General.  Subject to the terms and conditions set forth
herein, the Borrower may request the issuance of dollar denominated Letters of
Credit for its own account or for the account of any of its Subsidiaries, in a
form reasonably acceptable to the Administrative Agent and the Issuing Bank, at
any time and from time to time during the Availability Period; provided that
the Borrower may not request the issuance, amendment, renewal or extension of
Letters of Credit hereunder if a Borrowing Base Deficiency exists at such time
or would exist as a result thereof.  In
the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of letter of credit

 29
 

application or other agreement submitted by the Borrower to, or entered
into by the Borrower with, the Issuing Bank relating to any Letter of Credit,
the terms and conditions of this Agreement shall control.

(b)           Notice of Issuance, Amendment, Renewal,
Extension; Certain Conditions.  To
request the issuance of a Letter of Credit (or the amendment, renewal or
extension of an outstanding Letter of Credit), the Borrower shall hand deliver
or telecopy (or transmit by electronic communication, if arrangements for doing
so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (not less than three (3) Business Days in advance of the
requested date of issuance, amendment, renewal or extension) a notice:

(i)            requesting the issuance of a Letter of
Credit or identifying the Letter of Credit to be amended, renewed or extended;

(ii)           specifying the date of issuance, amendment,
renewal or extension (which shall be a Business Day);

(iii)          specifying the date on which such Letter of
Credit is to expire (which shall comply with Section 2.08(c));

(iv)          specifying the amount of such Letter of
Credit;

(v)           specifying the name and address of the
beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit; and

(vi)          specifying the amount of the then effective
Borrowing Base and whether a Borrowing Base Deficiency exists at such time, the
current total Revolving Credit Exposures (without regard to the requested
Letter of Credit or the requested amendment, renewal or extension of an
outstanding Letter of Credit) and the pro
forma total Revolving Credit Exposures (giving effect to the requested
Letter of Credit or the requested amendment, renewal or extension of an
outstanding Letter of Credit).

Each notice shall constitute a representation that
after giving effect to the requested issuance, amendment, renewal or extension,
as applicable, (i) the LC Exposure shall not exceed the LC Commitment and (ii)
the total Revolving Credit Exposures shall not exceed the total Commitments
(i.e. the lesser of the Aggregate Maximum Credit Amounts and the then effective
Borrowing Base).

If requested by the
Issuing Bank, the Borrower also shall submit a letter of credit application on
the Issuing Bank’s standard form in connection with any request for a Letter of
Credit.

(c)           Expiration Date.  Each Letter of Credit shall expire at or
prior to the close of business on the earlier of (i) the date one year after
the date of the issuance of such Letter of Credit (or, in the case of any
renewal or extension thereof, one year after such renewal or extension) and
(ii) the date that is five Business Days prior to the Maturity Date; provided,
however, that a Letter of Credit may, upon the request of the Borrower, include
a provision

 30
 

whereby such Letter of Credit shall be renewed automatically for
additional consecutive periods of 12 months or less (but not beyond the date
that is five Business Days prior to the Maturity Date) unless the Issuing Bank
notifies the beneficiary thereof at least 30 days (or such longer period as may
be specified in such Letter of Credit) prior to the then-applicable expiration
date that such Letter of Credit will not be renewed.

(d)           Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Lender, and each Lender hereby acquires from the Issuing
Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such
Letter of Credit.  In consideration and
in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of
the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement
made by the Issuing Bank and not reimbursed by the Borrower on the date due as
provided in Section 2.08(e), or of any reimbursement payment
required to be refunded to the Borrower for any reason.  Each Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this Section 2.08(d)
in respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including any amendment, renewal or
extension of any Letter of Credit or the occurrence and continuance of a
Default, the existence of a Borrowing Base Deficiency or reduction or
termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.

(e)           Reimbursement.  If the Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrower shall reimburse
such LC Disbursement by paying to the Administrative Agent an amount equal to
such LC Disbursement not later than 12:00 noon, New York City time, on the date
that such LC Disbursement is made, if the Borrower shall have received notice
of such LC Disbursement prior to 10:00 a.m., New York City time, on such date,
or, if such notice has not been received by the Borrower prior to such time on
such date, then not later than 12:00 noon, New York City time, on (i) the
Business Day that the Borrower receives such notice, if such notice is received
prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the
Business Day immediately following the day that the Borrower receives such
notice, if such notice is not received prior to such time on the day of
receipt; provided that if such LC Disbursement is not less than $1,000,000, the
Borrower shall, subject to the conditions to Borrowing set forth herein, be
deemed to have requested, and the Borrower does hereby request under such
circumstances, that such payment be financed with an ABR Borrowing in an
equivalent amount and, to the extent so financed, the Borrower’s obligation to
make such payment shall be discharged and replaced by the resulting ABR
Borrowing.  If the Borrower fails to make
such payment when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Borrower in respect
thereof and such Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice,
each Lender shall pay to the Administrative Agent its Applicable Percentage of
the payment then due from the Borrower, in the same manner as provided in Section 2.05
with respect to Loans made by such Lender (and Section 2.05 shall
apply, mutatis mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the Issuing Bank the amounts so received by it from the Lenders.  Promptly following receipt by the
Administrative Agent of

 31
 

any payment from the Borrower pursuant to this Section 2.08(e),
the Administrative Agent shall distribute such payment to the Issuing Bank or,
to the extent that Lenders have made payments pursuant to this Section 2.08(e)
to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as
their interests may appear.  Any payment
made by a Lender pursuant to this Section 2.08(e) to reimburse the
Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as
contemplated above) shall not constitute a Loan and shall not relieve the
Borrower of its obligation to reimburse such LC Disbursement.

(f)            Obligations Absolute.  The Borrower’s obligation to reimburse LC
Disbursements as provided in Section 2.08(e) shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit, any Letter of Credit Agreement or this Agreement, or any term or
provision therein, (ii) any draft or other document presented under a Letter of
Credit proving to be forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect, (iii) payment by the Issuing
Bank under a Letter of Credit against presentation of a draft or other document
that does not comply with the terms of such Letter of Credit or any Letter of
Credit Agreement, or (iv) any other event or circumstance whatsoever, whether
or not similar to any of the foregoing, that might, but for the provisions of
this Section 2.08(f), constitute a legal or equitable discharge of,
or provide a right of setoff against, the Borrower’s obligations
hereunder.  Neither the Administrative
Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties shall
have any liability or responsibility by reason of or in connection with the
issuance or transfer of any Letter of Credit or any payment or failure to make
any payment thereunder (irrespective of any of the circumstances referred to in
the preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the Issuing Bank; provided
that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by the Issuing Bank’s failure to exercise care when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof.  The parties
hereto expressly agree that, in the absence of gross negligence or willful
misconduct on the part of the Issuing Bank (as finally determined by a court of
competent jurisdiction), the Issuing Bank shall be deemed to have exercised all
requisite care in each such determination. 
In furtherance of the foregoing and without limiting the generality
thereof, the parties agree that, with respect to documents presented which
appear on their face to be in substantial compliance with the terms of a Letter
of Credit, the Issuing Bank may, in its sole discretion, either accept and make
payment upon such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse to accept
and make payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit.

(g)           Disbursement Procedures.  The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit.  The
Issuing Bank shall promptly notify the Administrative Agent and the

 32
 

Borrower by telephone (confirmed by telecopy) of such demand for
payment and whether the Issuing Bank has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving such notice
shall not relieve the Borrower of its obligation to reimburse the Issuing Bank
and the Lenders with respect to any such LC Disbursement.

(h)           Interim Interest.  If the Issuing Bank shall make any LC
Disbursement, then, until the Borrower shall have reimbursed the Issuing Bank
for such LC Disbursement (either with its own funds or a Borrowing under Section 2.08(e)),
the unpaid amount thereof shall bear interest, for each day from and including
the date such LC Disbursement is made to but excluding the date that the
Borrower reimburses such LC Disbursement, at the rate per annum then applicable
to ABR Loans.  Interest accrued pursuant
to this Section 2.08(h) shall be for the account of the Issuing
Bank, except that interest accrued on and after the date of payment by any
Lender pursuant to Section 2.08(e) to reimburse the Issuing Bank
shall be for the account of such Lender to the extent of such payment.

(i)            Replacement of the Issuing Bank.  The Issuing Bank may be replaced at any time
by written agreement among the Borrower, the Administrative Agent, the replaced
Issuing Bank and the successor Issuing Bank. 
The Administrative Agent shall notify the Lenders of any such replacement
of the Issuing Bank.  At the time any
such replacement shall become effective, the Borrower shall pay all unpaid fees
accrued for the account of the replaced Issuing Bank pursuant to Section 3.05(b).  From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of the Issuing Bank under this Agreement with respect to Letters of
Credit to be issued thereafter and (ii) references herein to the term “Issuing
Bank” shall be deemed to refer to such successor or to any previous Issuing
Bank, or to such successor and all previous Issuing Banks, as the context shall
require.  After the replacement of the
Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto
and shall continue to have all the rights and obligations of the Issuing Bank
under this Agreement with respect to Letters of Credit issued by it prior to
such replacement, but shall not be required to issue additional Letters of
Credit.

(j)            Cash Collateralization.  If (i) any Event of Default shall occur and
be continuing and the Borrower receives notice from the Administrative Agent or
the Majority Lenders demanding the deposit of cash collateral pursuant to this Section
2.08(j), or (ii) the Borrower is required to pay to the Administrative
Agent the excess attributable to an LC Exposure in connection with any
prepayment pursuant to Section 3.04(c), then the Borrower shall deposit,
in an account with the Administrative Agent (the “LC Collection Account”),
in the name of the Administrative Agent and for the benefit of the Lenders, an
amount in cash equal to, in the case of an Event of Default, the LC Exposure,
and in the case of a payment required by Section 3.04(c), the amount of
such excess as provided in Section 3.04(c), as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to deposit
such cash collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any kind,
upon the occurrence of any Event of Default with respect to the Borrower or any
Subsidiary described in Section 10.01(h) or Section 10.01(i).  The Borrower hereby grants to the
Administrative Agent, for the benefit of the Issuing Bank and the Lenders, an
exclusive first priority and continuing perfected security interest in and Lien
on the LC Collection Account and all cash, checks, drafts, certificates and
instruments, if

 33
 

any, from time to time deposited or held in the LC Collection Account,
all deposits or wire transfers made thereto, any and all investments purchased
with funds deposited in such account, all interest, dividends, cash,
instruments, financial assets and other Property from time to time received,
receivable or otherwise payable in respect of, or in exchange for, any or all
of the foregoing, and all proceeds, products, accessions, rents, profits,
income and benefits therefrom, and any substitutions and replacements
therefor.  The Borrower’s obligation to
deposit amounts pursuant to this Section 2.08(j) shall be absolute and
unconditional, without regard to whether any beneficiary of any such Letter of
Credit has attempted to draw down all or a portion of such amount under the
terms of a Letter of Credit, and, to the fullest extent permitted by applicable
law, shall not be subject to any defense or be affected by a right of set-off,
counterclaim or recoupment which the Borrower or any of its Subsidiaries may
now or hereafter have against any such beneficiary, the Issuing Bank, the
Administrative Agent, the Lenders or any other Person for any reason
whatsoever.  Such deposit shall be held
as collateral securing the payment and performance of the Borrower’s and the
Guarantors’ obligations under this Agreement and the other Loan Documents.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over the LC
Collection Account.  Other than any
interest earned on the investment of such deposits, which investments shall be
made at the option and sole discretion of the Administrative Agent and at the
Borrower’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such
investments shall accumulate in the LC Collection Account.  Moneys in the LC Collection Account shall be
applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated, be applied to satisfy other obligations of the Borrower
and the Guarantors under this Agreement or the other Loan Documents.  If the Borrower is required to provide an
amount of cash collateral hereunder as a result of the occurrence of an Event
of Default, and the Borrower is not otherwise required to pay to the
Administrative Agent the excess attributable to an LC Exposure in connection
with any prepayment pursuant to Section 3.04(c), then such amount (to
the extent not applied as aforesaid) shall be returned to the Borrower within
three Business Days after all Events of Default have been cured or waived.  If the Borrower is required to provide an
amount in cash collateral hereunder as a result of any prepayment pursuant to Section
3.04(c) and the Borrower is not otherwise required to pay to the
Administrative Agent an amount equal to the LC Exposure as a result of the
occurrence of an Event of Default, then if the total Revolving Credit Exposure
is reduced (whether pursuant to Section 3.04(a), the expiration of
Letters of Credit or otherwise) and/or the Borrowing Base is increased in
accordance with Section 2.07, as a result of which a Borrowing Base
Deficiency no longer exists and so long no Default has occurred and is
continuing, the Administrative Agent shall return to the Borrower such amount
but only to the extent that the then effective Borrowing Base exceeds the total
Revolving Credit Exposures by not less than $1,000,000.

Section 2.09.          Collateral.

(a)           Mortgaged Property.  The payment and performance of the Notes and
all of the other Indebtedness hereunder and under the Loan Documents, and under
the Swap Agreements, and the reimbursement obligations under the Letters of
Credit, shall be secured by a first and superior Lien against the entire
interest of the Borrower and each Subsidiary and NRC

 34
 

(subject to Section 2.09(c) hereof) in substantially all of
their Oil and Gas Properties, pursuant to the terms of one or more Mortgages in
favor of the Administrative Agent for the ratable benefit of the Lenders and
the Swap Lenders, which Mortgages shall be satisfactory in form and substance
to the Administrative Agent.

(b)           Guarantees and Pledges of Equity
Interests.  The payment and
performance of the Notes and all of the other Indebtedness hereunder, under the
Loan Documents, and under the Swap Agreements, and the reimbursement
obligations under the Letters of Credit, (A) shall be unconditionally
guaranteed by each Subsidiary pursuant to one or more Guaranty Agreements, and
(B) shall be secured by a first priority Lien against the Equity Interests of
each Subsidiary pursuant to a Subsidiary Pledge Agreement.  Reference is made to Section 8.14 of
this Agreement for further provisions with respect to additional Guarantors and
additional collateral.

(c)           Collateral Releases Per Restructuring of
Assets Per Nami Restructure Plan.  As
used in this subparagraph, the following terms shall have the following
meanings:

“Proved
Developed Oil and Gas Properties” or “PD
Properties” shall mean all Proved Developed Producing and Proved
Non-Producing Oil and Gas Properties in existence at the time of the
Administrative Agent’s execution and delivery of the releases described in Section 2.09(c)
hereof including those associated with the wells described on Schedule
2.09(c)(1) attached hereto which are within the Producing Strata and which
are within the Production Unit for each well, together with all subsurface and
surface equipment necessary to produce oil and or gas from the well for
delivery into a gathering or flowline at the well site, including any well,
wellhead equipment, well-meter, pumping units and tank batteries present at a
well site.

“Proved
Undeveloped Oil and Gas Properties” or “PUD
Properties” shall mean all Oil and Gas Properties associated
with the Producing Strata on the leases described on Schedule 2.09(c)(2)
together with all subsurface and surface equipment which may be installed
thereon and which may be necessary to produce oil and or gas from a well for
delivery into a gathering or flowline at the well site, including any well,
wellhead equipment, well-meter, pumping unit and tank batteries present at a
well site.

“Management
Services Agreement” shall mean the form of agreement to be
entered into by TEC and or Ariana with one or more Newco entities (“Newco Manager”) for the operation
and management of their respective PDP Properties and PUD Properties. With
regard to the drilling, operation and management of wells drilled on PDP
Properties or PUD Properties of TEC or Ariana, such Management Services
Agreement shall contain terms which would be standard and customary for an
operating agreement in the oil and gas industry, including the manner in which
the PD Properties and PUD Properties will be operated, managed and developed
and specifying the costs associated with operating and managing such properties

“Operating
Assets” means all office equipment, furniture, fixtures,
furnishings, vehicles, machinery, inventory and other personalty or property
and not otherwise defined herein as “PD Properties,” “PUD Properties,” “Other
Oil and Gas Leases,” or “Midstream Assets.”

 35
 

“Other Oil
and Gas Leases” means Oil and Gas Properties of Ariana, NRC and
TEC which are not included as part of the PD Properties or PUD Properties.

“Midstream
Assets” means all gathering facilities, gathering systems,
related pipelines and contracts for the gathering, transportation or sale of
oil and gas production and shall include all equipment downstream or beyond the
wellhead and well meter of each well, except for that equipment included in the
definition of PD Properties or PUD Properties.

“Producing
Strata” shall mean, for each field, those geologic formations
identified in Schedule 2.09(c)(1) as the Producing Strata for the field.

“Production
Unit” shall mean, for each well (i) in Kentucky, an area
configured in a circle with a diameter of 1,000 feet (or approximately 18.03
acres) around such well, or such greater or lesser area as may be, or may have
been, established for such well by the relevant Kentucky regulatory authority
and (ii) in Tennessee, an area configured in a square or rectangle containing
20 acres centered on the well bore or such greater or lesser area as may be, or
may have been, established for such well by the relevant Tennessee regulatory
authority.

“PUD
Non-Participation Election” shall mean an election by Ariana or
TEC (the “Electing Party”) not to
participate in the drilling of a well or wells on the PUD Properties proposed
by the Newco Manager under the Management Services Agreement.  Pursuant to the terms of the Management
Services Agreement, a PUD Non-Participation Election shall result in a
forfeiture by the Electing Party of its interest in the PUD Properties to the
extent (i) of the proposal for which an election was required to be made, and
(ii) insofar as said PUD Properties are included in a Production Unit (the “Forfeited PUD Properties”).

“Transportation
Agreement” shall mean the agreement for the gathering and
transportation of oil and gas from the PD Properties and PUD Properties of
Ariana and TEC, which agreement shall contain terms standard and customary for
such agreements in the locality of the properties, including the charges for
gathering, treatment, compression and transportation, and which shall obligate
Newco II (or its successors) to provide gathering, treatment, compression,
and transportation of gas from a well to a point of sale for so long as such
well is commercially productive.

Subsequent to the Effective Date and pursuant to the
implementation of the Nami Restructure Plan, the following shall occur:

1.             NRC will transfer to TEC,
(i) 100% of NRC’s PD Properties; (ii) a 35% interest in NRC’s PUD Properties;
and (iii) a 35% interest in NRC’s Other Oil and Gas Leases;

2.             NRC will thereafter convey
to a newly formed entity (“Newco I”)
all of NRC’s remaining interest in the PUD Properties and Other Oil and Gas
Leases;

3.             TEC will convey to
Newco I (i) 100% of its interest in Other Oil and Gas Leases, inclusive of
the interest conveyed to it by NRC referenced in paragraph 1 above, and
(ii) a 65% interest in all PUD Properties, save and except its 35%
interest in NRC’s PUD Properties to be conveyed to TEC by NRC as referenced in
paragraph 1 above;

 36
 

4.             Ariana will convey to Newco
100% of its interest in Other Oil and Gas Leases and a 65% interest in all of
its PUD Properties;

5.             NRC will thereafter convey
to a newly formed entity (“Newco II”)
all of NRC’s Midstream Assets;

6.             TEC will thereafter convey
to Newco II all of TEC’s Midstream Assets;

7.             Ariana will thereafter
convey to Newco II all of Ariana’s Midstream Assets;

8.             NRC will thereafter convey
to a newly formed entity (“Newco III”)
all of NRC’s Operating Assets;

9.             Ariana will thereafter
convey to Newco III all of Ariana’s Operating Assets;

10.           TEC will thereafter convey
to Newco III all of TEC’s Operating Assets; and

11.           All PD Properties and PUD
Properties of TEC and Ariana shall be made subject to the terms of a Management
Services Agreement and a Transportation Agreement.  Further, the charges allocated to TEC and
Ariana under such agreements shall not be greater than the costs of operating
the PDP Properties and PUD Properties and transporting oil and gas production
from the PDP Properties and PUD Properties as utilized by Netherland, Sewell &
Associates, Inc. in valuing the PD Properties and PUD Properties as reflected
in the Initial Reserve Report, subject to reasonable adjustment not more than
once per year, based upon the annual percentage change in the COPAS Overhead
Adjustment Index published by the Council for Petroleum Accountants Societies
(COPAS).

In connection with such
transfers, the Administrative Agent agrees to release its liens and security
interests against (i) the Midstream Assets, retaining, however, a security
interest in any and all gathering, transportation or marketing agreements,
whether now existing or hereafter entered into, affecting or relating to the
production of oil and gas produced from the Oil and Gas Properties in which
Lenders have been granted a lien pursuant to the Security Documents and not
released pursuant to the terms of this subparagraph, (ii) 100% of the Other Oil
and Gas Leases, (iii) a 65% interest in the PUD Properties and (iv) 100% of the
Operating Assets.  With respect to the
release of its lien on PUD Properties, the form of release attached hereto as Exhibit J
shall be used with inclusion of appropriate descriptions of the interests to be
released based on Schedules 2.09(c)(1) and 2.09(c)(2)
attached hereto.  The Administrative
Agent shall execute such releases at the expense of the Borrower and NRC.  The Administrative Agent will release NRC
from its obligations under its Guaranty Agreement when (i) all of NRC’s PD
Properties have been transferred to TEC and (ii) TEC has executed such
supplemental Mortgages and other documents as the Administrative Agent may
require to confirm that the Lien granted by NRC continues to secure all of the
obligations of the Borrower hereunder following the transfer of title to such
PD Properties.

 37
 

In the event a PUD Non-Participation
Election results in Ariana or TEC forfeiting its interest in any PUD Properties
and an assignment of such party’s interest in such PUD Properties is required
to be made by Ariana or TEC to a Newco entity or other third party, the
Administrative Agent agrees to release its liens and security interests against
the Forfeited PUD Properties. The Administrative Agent shall execute such
release within a reasonable time after receipt of an assignment of the
Forfeited PUD Properties duly executed by Ariana or TEC.  The release to be executed by the
Administrative Agent shall at the expense of the Borrower.

(d)           Post-Closing Title Opinions.  Within 60 days from the date of this
Agreement, the Borrower shall cause to be delivered to the Administrative Agent
title opinions addressed to the Administrative Agent with respect to the
properties listed on Schedule 2.09(d). 
These title opinions shall state that the Borrower or its Subsidiary or
NRC, as the case may be, has good and defensible title to the Oil and Gas
Properties free and clear of all Liens, other than Excepted Liens, in favor of
the Administrative Agent for the ratable benefit of the Lenders and the Swap
Lenders.  Such title opinions shall also
state the net revenue interests and working interests, before and after payout,
of such Oil and Gas Properties and shall otherwise be satisfactory in form and
substance to the Administrative Agent.

ARTICLE
III

Payments of Principal and Interest; Prepayments; Fees

Section 3.01.          Repayment of Loans.  The Borrower hereby unconditionally promises
to pay to the Administrative Agent for the account of each Lender the then
unpaid principal amount of each Loan on the Termination Date.

Section 3.02.          Interest.

(a)           ABR Loans.  The Loans comprising each ABR Borrowing shall
bear interest at the Alternate Base Rate plus the Applicable Margin, but in no
event to exceed the Highest Lawful Rate.

(b)           Eurodollar Loans.  The Loans comprising each Eurodollar
Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period
in effect for such Borrowing plus the Applicable Margin, but in no event to
exceed the Highest Lawful Rate.

(c)           Post-Default Rate.  Notwithstanding the foregoing, (i) if an
Event of Default has occurred and is continuing, or if any principal of or interest
on any Loan or any fee or other amount payable by the Borrower or any Guarantor
hereunder or under any other Loan Document is not paid when due, whether at
stated maturity, upon acceleration or otherwise, and including any payments in
respect of a Borrowing Base Deficiency under Section 3.04(c), then
all Loans outstanding, in the case of an Event of Default, and such overdue
amount, in the case of a failure to pay amounts when due, shall bear interest,
after as well as before judgment, at a rate per annum equal to three percent
(3%) plus the rate applicable to ABR Loans as provided in Section 3.02(a),
but in no event to exceed the Highest Lawful Rate, and (ii)  during any
Borrowing Base Deficiency (after the expiration of the 30-day or 90-day period
provided in Section 3.04(c)(ii), as applicable), all Loans outstanding
at such time shall bear interest, after as 

 38
 

well as before judgment, at the rate then applicable to such Loans,
plus the Applicable Margin, if any, plus an additional three percent (3%), but
in no event to exceed the Highest Lawful Rate.

(d)           Interest Payment Dates.  Accrued interest on each Loan shall be
payable in arrears on each Interest Payment Date for such Loan and on the
Termination Date; provided that (i) interest accrued pursuant to Section 3.02(c)
shall be payable on demand, (ii)  in the event of any repayment or
prepayment of any Loan (other than an optional prepayment of an ABR Loan prior
to the Termination Date), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment, and (iii)
in the event of any conversion of any Eurodollar Loan prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be
payable on the effective date of such conversion.

(e)           Interest Rate Computations.  All interest hereunder shall be computed on
the basis of a year of 360 days, unless such computation would exceed the
Highest Lawful Rate, in which case interest shall be computed on the basis of a
year of 365 days (or 366 days in a leap year), except that interest computed by
reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of 365 days
(or 366 days in a leap year), and in each case shall be payable for the actual
number of days elapsed (including the first day but excluding the last
day).  The applicable Alternate Base
Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative
Agent, and such determination shall be conclusive absent manifest error, and be
binding upon the parties hereto.

Section 3.03.          Alternate Rate of
Interest.  If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

(a)           the Administrative Agent determines (which
determination shall be conclusive absent manifest error) that adequate and
reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the
LIBO Rate for such Interest Period; or

(b)           the Administrative Agent is advised by the
Majority Lenders that the Adjusted LIBO Rate or LIBO Rate, as applicable, for
such Interest Period will not adequately and fairly reflect the cost to such
Lenders of making or maintaining their Loans included in such Borrowing for
such Interest Period;

then the Administrative Agent shall give notice
thereof to the Borrower and the Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice no
longer exist, (i) any Interest Election Request that requests the conversion of
any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing
shall be ineffective (and shall be deemed to be a request for an ABR
Borrowing), and (ii) if any Borrowing Request requests a Eurodollar Borrowing,
such Borrowing shall be made as an ABR Borrowing.

Section 3.04.          Prepayments.

(a)           Optional Prepayments.  The Borrower shall have the right at any time
and from time to time to prepay any Borrowing in whole or in part, subject to
prior notice in accordance with Section 3.04(b).

 39

(b)                                 Notice and Terms of
Optional Prepayment.  The Borrower
shall notify the Administrative Agent by telephone (confirmed by telecopy) of
any prepayment hereunder (i) in the case of prepayment of a Eurodollar
Borrowing, not later than 11:00 a.m., Dallas, Texas time, three Business Days
before the date of prepayment, or (ii) in the case of prepayment of an ABR
Borrowing, not later than 11:00 a.m. Dallas, Texas time, one Business Day
before the date of prepayment.  Each such
notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid.  Promptly following receipt of any such notice
relating to a Borrowing, the Administrative Agent shall advise the Lenders of
the contents thereof.  Each partial
prepayment of any Borrowing shall be in an amount that would be permitted in
the case of an advance of a Borrowing of the same Type as provided in Section 2.02.  Each prepayment of a Borrowing shall be
applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by accrued
interest to the extent required by Section 3.02.

(c)                                  Mandatory
Prepayments.

(i)                                     If, after giving
effect to any termination or reduction of the Aggregate Maximum Credit Amounts
pursuant to Section 2.06(b), the total Revolving Credit Exposures
exceeds the total Commitments, then the Borrower shall (A) prepay the
Borrowings on the date of such termination or reduction in an aggregate
principal amount equal to such excess, and (B) if any excess remains after
prepaying all of the Borrowings as a result of an LC Exposure, pay to the
Administrative Agent on behalf of the Lenders an amount equal to such excess to
be held as cash collateral as provided in Section 2.08(j).

(ii)                                  If, upon any
redetermination of or adjustment to the amount of the Borrowing Base in
accordance with Section 2.07 or pursuant to Section 8.13(c),
a Borrowing Base Deficiency exists, then the Borrower shall either prepay the
Borrowings in an aggregate principal amount equal to such deficiency, or
provide additional Mortgaged Property to secure Indebtedness having a fair
market value equal to or greater than the amount of such deficiency (or the
remaining balance of such deficiency after any prepayments), and if any
deficiency remains after prepaying all of the Borrowings or providing
additional Mortgaged Property as a result of any LC Exposure, the Borrower
shall pay to the Administrative Agent on behalf of the Lenders an amount equal
to such deficiency to be held as cash collateral as provided in Section 2.08(j).  The Borrower shall be obligated to make any
such principal prepayment or deposit of cash collateral in an amount equal to
such deficiency within 30 days, or in six monthly installments beginning within
30 days, following its receipt of the New Borrowing Base Notice in accordance
with Section 2.07(d) or the date the adjustment occurs, and/or to
provide additional Mortgaged Property within 90 days following its receipt of
such New Borrowing Base Notice or the date such adjustment occurs; provided
that all payments and/or deposits required to be made pursuant to this Section 3.04(c)(ii)
must be made on or prior to the Termination Date.

(iii)                               If, upon any adjustments
to the Borrowing Base pursuant to Section 9.12, a Borrowing Base
deficiency exists, then the Borrower shall (A) prepay the Borrowings in an
aggregate principal amount equal to such deficiency, and (B) if any deficiency
remains after prepaying all of the Borrowings as a result of an LC Exposure,
pay to the Administrative Agent on behalf of the Lenders an amount equal to
such deficiency to be held as

 40
 

cash collateral as provided in Section 2.08(j).  The Borrower shall be obligated to make such
prepayment and/or deposit of cash collateral on the date it or any Subsidiary
receives cash proceeds as a result of such disposition; provided that all
payments required to be made pursuant to this Section 3.04(c)(iii)
must be made on or prior to the Termination Date.

(iv)                              Each prepayment of
Borrowings pursuant to this Section 3.04(c) shall be applied,
first, ratably to any ABR Borrowings then outstanding, and, second, to any
Eurodollar Borrowings then outstanding, and if more than one Eurodollar
Borrowing is then outstanding, to each such Eurodollar Borrowing in order of
priority beginning with the Eurodollar Borrowing with the least number of days
remaining in the Interest Period applicable thereto and ending with the
Eurodollar Borrowing with the most number of days remaining in the Interest
Period applicable thereto.

(v)                                 Each prepayment of
Borrowings pursuant to this Section 3.04(c) shall be applied
ratably to the Loans included in the prepaid Borrowings.  Prepayments pursuant to this Section 3.04(c)
shall be accompanied by accrued interest to the extent required by Section 3.02.

(d)                                 No Premium or
Penalty.  Prepayments permitted or
required under this Section 3.04 shall be without premium or
penalty, except as required under Section 5.02.

(e)                                  No Effect on Swap
Agreements.  Prepayments permitted or
required under this Section 3.04 shall not affect the Borrower’s
obligation to continue making payments under any Swap Agreement, which shall
remain in full force and effect notwithstanding such prepayment, subject to the
terms of such Swap Agreement.

Section 3.05.                             Fees.

(a)                                  Commitment Fees.  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the applicable Commitment Fee Rate on the average daily amount
of the unused amount of the Commitment of such Lender during the period from
and including the Effective Date to but excluding the Termination Date.  Accrued commitment fees shall be payable in
arrears on the last day of March, June, September and December of each year and
on the Termination Date, commencing on the first such date to occur after the
date hereof.  All commitment fees shall
be computed on the basis of a year of 360 days, unless such computation would
exceed the Highest Lawful Rate, in which case interest shall be computed on the
basis of a year of 365 days (or 366 days in a leap year), and shall be payable
for the actual number of days elapsed (including the first day but excluding
the last day).

(b)                                 Letter of Credit
Fees.  The Borrower agrees to pay (i)
to the Administrative Agent for the account of each Lender a participation fee
with respect to its participations in Letters of Credit, which shall accrue at
the same Applicable Margin used to determine the interest rate applicable to
Eurodollar Loans on the average daily amount of such Lender’s LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date on which such Lender’s Commitment terminates and the date on
which such

 41
 

Lender ceases to have any LC Exposure, (ii) to the Issuing Bank a
fronting fee, which shall accrue at the rate of 0.125% per annum on the average
daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date of termination of the
Commitments and the date on which there ceases to be any LC Exposure, provided
that in no event shall such fee be less than $500 during any quarter, and (iii)
to the Issuing Bank, for its own account, its standard fees with respect to the
issuance, amendment, renewal or extension of any Letter of Credit or processing
of drawings thereunder.  Participation
fees and fronting fees accrued through and including the last day of March,
June, September and December of each year shall be payable on the third
Business Day following such last day, commencing on the first such date to
occur after the Effective Date; provided that all such fees shall be payable on
the Termination Date and any such fees accruing after the Termination Date
shall be payable on demand.  Any other
fees payable to the Issuing Bank pursuant to this Section 3.05(b)
shall be payable within 10 days after demand. 
All participation fees and fronting fees shall be computed on the basis
of a year of 360 days, unless such computation would exceed the Highest Lawful
Rate, in which case interest shall be computed on the basis of a year of 365
days (or 366 days in a leap year), and shall be payable for the actual number
of days elapsed (including the first day but excluding the last day).

(c)                                  Administrative
Agent Fees.  The Borrower agrees to
pay to the Administrative Agent, for its own account, fees payable in the
amounts and at the times separately agreed upon between the Borrower and the
Administrative Agent.

ARTICLE
IV

Payments; Pro Rata Treatment; Sharing of Set-offs

Section 4.01.                             Payments
Generally; Pro Rata Treatment; Sharing of Set-offs.

(a)                                  Payments by the
Borrower.  The Borrower shall make
each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable
under Section 5.01, Section 5.02, Section 5.03
or otherwise) prior to 12:00 noon, New York City time, on the date when due, in
immediately available funds, without defense, deduction, recoupment, set-off or
counterclaim.  Fees, once paid, shall be
fully earned and shall not be refundable under any circumstances.  Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon.  All such payments
shall be made to the Administrative Agent at its offices specified in Section 12.01,
except payments to be made directly to the Issuing Bank as expressly provided
herein and except that payments pursuant to Section 5.01, Section 5.02,
Section 5.03 and Section 12.03 shall be made directly
to the Persons entitled thereto.  The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt
thereof.  If any payment hereunder shall
be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day, and, in the case of any payment
accruing interest, interest thereon shall be payable for the period of such
extension.  All payments hereunder shall
be made in dollars.

 42
 

(b)                                 Application of
Insufficient Payments.  If at any
time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements,
interest and fees then due hereunder, such funds shall be applied (i) first,
towards payment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (ii) second, towards payment of principal and
unreimbursed LC Disbursements then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal and unreimbursed
LC Disbursements then due to such parties.

(c)                                  Sharing of
Payments by Lenders.  If any Lender
shall, by exercising any right of set-off or counterclaim or otherwise, obtain
payment in respect of any principal of or interest on any of its Loans or
participations in LC Disbursements resulting in such Lender receiving payment
of a greater proportion of the aggregate amount of its Loans and participations
in LC Disbursements and accrued interest thereon than the proportion received
by any other Lender, then the Lender receiving such greater proportion shall
notify the Administrative Agent of such fact and purchase (for cash at face
value) participations in the Loans and participations in LC Disbursements of
other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Loans and
participations in LC Disbursements; provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and (ii) the
provisions of this Section 4.01(c) shall not be construed to apply
to any payment made by the Borrower pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or participations in LC Disbursements to any assignee or Participant,
other than to the Borrower or any Subsidiary or Affiliate thereof (as to which
the provisions of this Section 4.01(c) shall apply).  The Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against the Borrower rights of set-off and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation.

Section 4.02.                             Presumption
of Payment by the Borrower.  Unless
the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Administrative Agent for the
account of the Lenders or the Issuing Bank that the Borrower will not make such
payment, the Administrative Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the Issuing Bank, as the case may be,
the amount due.  In such event, if the
Borrower has not in fact made such payment, then each of the Lenders or the
Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment
to the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

 43
 

Section 4.03.                             Certain
Deductions by the Administrative Agent. 
If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.05(a), Section 2.08(d), Section 2.08(e)
or Section 4.02 then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender
to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

Section 4.04.                             Disposition
of Proceeds.  The Security
Instruments contain an assignment by the Borrower and/or the Guarantors unto
and in favor of the Administrative Agent for the benefit of the Lenders of all
of the Borrower’s or each Guarantor’s interest in and to production and all
proceeds attributable thereto which may be produced from or allocated to the
Mortgaged Property.  The Security
Instruments further provide in general for the application of such proceeds to
the satisfaction of the Indebtedness and other obligations described therein
and secured thereby.  Notwithstanding the
assignment contained in such Security Instruments, until the occurrence of an
Event of Default, (a) the Administrative Agent and the Lenders agree that they
will neither notify the purchaser or purchasers of such production nor take any
other action to cause such proceeds to be remitted to the Administrative Agent
or the Lenders, but the Lenders will instead permit such proceeds to be paid to
the Borrower and its Subsidiaries and (b) the Lenders hereby authorize the
Administrative Agent to take such actions as may be necessary to cause such
proceeds to be paid to the Borrower and/or such Subsidiaries.

ARTICLE V

Increased Costs; Break Funding Payments; Taxes; Illegality

Section 5.01.                             Increased
Costs.

(a)                                  Eurodollar Changes
in Law.  If any Change in Law shall:

(i)                                     impose, modify or
deem applicable any reserve, special deposit, compulsory loan, insurance charge
or similar requirement against assets of, deposits with or for the account of,
or credit extended by, any Lender or the Issuing Bank (except any such reserve
requirement reflected in the Adjusted LIBO Rate);

(ii)                                  subject any Lender or the Issuing Bank to any
tax of any kind whatsoever with respect to this Agreement, any Letter of
Credit, any participation in a Letter of Credit or any Eurodollar Loan made by
it, or change the basis of taxation of payments to such Lender or the Issuing Bank
in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section
5.03 and the imposition of, or any change in the rate of, any Excluded Tax
payable by such Lender or the Issuing Bank); or

(iii)                               impose on any Lender or
the Issuing Bank or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans made by such Lender or any Letter of Credit
or participation therein;

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurodollar Loan
(or of maintaining its obligation to make any such Loan) or to increase the
cost to such Lender or the Issuing Bank of participating in, issuing or
maintaining

 44
 

any Letter of Credit or to reduce the amount of any sum
received or receivable by such Lender or the Issuing Bank (whether of
principal, interest or otherwise), then the Borrower will pay to such Lender or
the Issuing Bank, as applicable, such additional amount or amounts as will
compensate such Lender or Issuing Bank, as applicable, for such additional
costs incurred or reduction suffered.

(b)                                 Capital
Requirements.  If any Lender or the
Issuing Bank determines that any Change in Law regarding capital requirements
has or would have the effect of reducing the rate of return on such Lender’s or
the Issuing Bank’s capital or on the capital of such Lender’s or the Issuing
Bank’s holding company, if any, as a consequence of this Agreement or the Loans
made by, or participations in Letters of Credit held by, such Lender, or the
Letters of Credit issued by the Issuing Bank, to a level below that which such
Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding
company could have achieved but for such Change in Law (taking into
consideration such Lender’s or the Issuing Bank’s policies and the policies of
such Lender’s or the Issuing Bank’s holding company with respect to capital
adequacy), then from time to time the Borrower will pay to such Lender or the
Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s
holding company for any such reduction suffered.

(c)                                  Certificates.  A certificate of a Lender or the Issuing Bank
setting forth the amount or amounts necessary to compensate such Lender or the
Issuing Bank or its holding company, as the case may be, as specified in Section 5.01(a)
or (b) shall be delivered to the Borrower and shall be conclusive absent
manifest error.  The Borrower shall pay
such Lender or the Issuing Bank, as the case may be, the amount shown as due on
any such certificate within 10 days after receipt thereof.

(d)                                 Effect of Failure
or Delay in Requesting Compensation. 
Failure or delay on the part of any Lender or the Issuing Bank to demand
compensation pursuant to this Section 5.01 shall not constitute a
waiver of such Lender’s or the Issuing Bank’s right to demand such
compensation; provided that the Borrower shall not be required to compensate a
Lender or the Issuing Bank pursuant to this Section 5.01 for any
increased costs or reductions incurred more than 270 days prior to the date
that such Lender or the Issuing Bank, as the case may be, notifies the Borrower
of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s or the Issuing Bank’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then such period of retroactivity shall be added
to such 270 day period for the purpose of determining the earliest such cost or
reduction which may be compensated.

(e)                                  Protection
Absolute.  The protection of this
Section shall be available to each Lender and the Issuing Bank regardless of
any possible contention of the invalidity or inapplicability of the Change in
Law that shall have occurred or been imposed.

Section 5.02.                             Break
Funding Payments.  In the event of
(a) the payment of any principal of any Eurodollar Loan other than on the last
day of an Interest Period applicable thereto (including as a result of an Event
of Default), (b) the conversion of any Eurodollar Loan into an ABR Loan other
than on the last day of the Interest Period applicable thereto, (c) the failure
to borrow, convert, continue or prepay any Eurodollar Loan on the date
specified in any notice

 45
 

delivered pursuant hereto, or (d) the assignment of any Eurodollar
Loan other than on the last day of the Interest Period applicable thereto as a
result of a request by the Borrower pursuant to Section 5.04(b),
then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense attributable to such event.  In the case of a Eurodollar Loan, such loss,
cost or expense to any Lender shall be deemed to include an amount determined
by such Lender to be the excess, if any, of (i) the amount of interest which
would have accrued on the principal amount of such Loan had such event not
occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then
current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period
for such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would
bid were it to bid, at the commencement of such period, for dollar deposits of
a comparable amount and period from other banks in the eurodollar market.

A certificate of any Lender setting forth any amount
or amounts that such Lender is entitled to receive pursuant to this Section 5.02
shall be delivered to the Borrower and shall be conclusive absent manifest
error.  The Borrower shall pay such
Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

Section 5.03.                             Taxes.

(a)                                  Payments Free of
Taxes.  Any and all payments by or on
account of any obligation of the Borrower or any Guarantor under any Loan
Document shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided that if the Borrower or any
Guarantor shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section 5.03(a)), the
Administrative Agent, Lender or Issuing Bank (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower or such Guarantor shall make such deductions and
(iii) the Borrower or such Guarantor shall pay the full amount deducted to
the relevant Governmental Authority in accordance with applicable law.

(b)                                 Payment of Other
Taxes by the Borrower.  The Borrower
shall pay any Other Taxes to the relevant Governmental Authority in accordance
with applicable law.

(c)                                  Indemnification by
the Borrower.  The Borrower shall
indemnify the Administrative Agent, each Lender and the Issuing Bank, within 10
days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes paid by the Administrative Agent, such Lender or the
Issuing Bank, as the case may be, on or with respect to any payment by or on
account of any obligation of the Borrower or any Guarantor hereunder or any
other Loan Document (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 5.03)
and any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate of the Administrative
Agent, a Lender or the Issuing

 46
 

Bank as to the amount of such payment or liability under this Section 5.03
shall be delivered to the Borrower and shall be conclusive absent manifest
error.

(d)                                 Evidence of
Payments.  As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by the Borrower or a
Guarantor to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

(e)                                  Foreign
Lenders.  Any Foreign Lender that is
entitled to an exemption from or reduction of withholding tax under the law of
the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement or any
other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate. 
In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

Without limiting the generality of the foregoing, in
the event that the Borrower is resident for tax purposes in the United States
of America, any Foreign Lender shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the request
of the Borrower or the Administrative Agent, but only if such Foreign Lender is
legally entitled to do so), whichever of the following is applicable:

(i)                                     duly completed
copies of Internal Revenue Service Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States of America is a
party,

(ii)                                  duly completed copies
of Internal Revenue Service Form W-8ECI,

(iii)                               in the case of a Foreign
Lender claiming the benefits of the exemption for portfolio interest under
section 881(c) of the Code, (x) a certificate to the effect that such Foreign
Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of the Borrower within the meaning of
section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation”
described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal
Revenue Service Form W-8BEN, or

(iv)                              any other form prescribed
by applicable law as a basis for claiming exemption from or a reduction in
United States Federal withholding tax duly completed together

 47
 

with such supplementary documentation as may be prescribed by
applicable law to permit the Borrower to determine the withholding or deduction
required to be made.

(f)                                    Treatment of
Certain Refunds.  If the
Administrative Agent, a Lender or the Issuing Bank determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to
the Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this
Section with respect to the Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket expenses of the Administrative Agent, such Lender or
the Issuing Bank, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund), provided that the Borrower, upon the request of the
Administrative Agent, such Lender or the Issuing Bank, agrees to repay the
amount paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent,
such Lender or the Issuing Bank in the event the Administrative Agent, such
Lender or the Issuing Bank is required to repay such refund to such Governmental
Authority.  This paragraph shall not be
construed to require the Administrative Agent, any Lender or the Issuing Bank
to make available its tax returns (or any other information relating to its
taxes that it deems confidential) to the Borrower or any other Person.

Section 5.04.                             Mitigation
Obligations; Replacement of Lenders.

(a)                                  Designation of
Different Lending Office.  If any
Lender requests compensation under Section 5.01, or gives a notice
pursuant to Section 5.05,  or
if the Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 5.03, then such Lender
shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 5.01 or Section 5.03, as the case may be,
in the future and (ii) would not subject such Lender to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

(b)                                 Replacement
of Lenders.  If (i) any Lender
requests compensation under Section 5.01, (ii) the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 5.03,
or (iii) any Lender defaults in its obligation to fund Loans hereunder, then
the Borrower may, at its sole expense and effort, upon notice to such Lender
and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained
in Section 12.04(b)), all its interests, rights and obligations
under this Agreement to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided
that (i) the Borrower shall have received the prior written consent of the
Administrative Agent, (ii) such Lender shall have received payment of an amount
equal to the outstanding principal of its Loans and participations in LC

 48
 

Disbursements, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts) (iii) in the case of any such assignment
resulting from a claim for compensation under Section 5.01 or
payments required to be made pursuant to Section 5.03, such
assignment will result in a reduction in such compensation or payments
thereafter, and (iv) such assignment does not conflict with the applicable
law.  A Lender shall not be required to
make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

Section 5.05.                             Illegality.  Notwithstanding any other provision of this
Agreement, in the event that it becomes unlawful for any Lender or its
applicable lending office to honor its obligation to make or maintain
Eurodollar Loans either generally or having a particular Interest Period
hereunder, then (a) such Lender shall promptly notify the Borrower and the
Administrative Agent thereof and such Lender’s obligation to make such Eurodollar
Loans shall be suspended (the “Affected Loans”) until such time as such Lender may
again make and maintain such Eurodollar Loans and (b) all Affected Loans which
would otherwise be made by such Lender shall be made instead as ABR Loans (and,
if such Lender so requests by notice to the Borrower and the Administrative
Agent, all Affected Loans of such Lender then outstanding shall be
automatically converted into ABR Loans on the date specified by such Lender in
such notice) and, to the extent that Affected Loans are so made as (or
converted into) ABR Loans, all payments of principal which would otherwise be
applied to such Lender’s Affected Loans shall be applied instead to its ABR
Loans.

ARTICLE
VI

Conditions Precedent

Section 6.01.                             Effective
Date.  The obligations of the Lenders
to make Loans and of the Issuing Bank to issue Letters of Credit hereunder
shall not become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section 12.02):

(a)                                  The Administrative
Agent, the Arranger and the Lenders shall have received all commitment,
facility and agency fees and all other fees and amounts due and payable on or
prior to the Effective Date, including, (1) an upfront fee to each Lender in an
amount equal to 50 basis points of its allocated facility amount, and (2) to
the extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Borrower hereunder (including, without
limitation, the fees and expenses of Winstead Sechrest & Minick P.C. and
Wyatt, Tarrant & Combs, LLP, counsel to the Administrative Agent).

(b)                                 The Administrative
Agent shall have received evidence that (i) Thomas H. Blake has been
appointed a member of the board of managers of the Borrower and (ii) the
Smith Employment Agreement is in full force and effect and Scott W. Smith
has assumed and is performing his duties thereunder.

(c)                                  The Administrative
Agent shall have received a certificate of the Secretary, an Assistant
Secretary or other duly authorized officer satisfactory to the Administrative
Agent of the Borrower (or the managing member
thereof) and each Guarantor

 49
 

setting forth (i) resolutions of its board of directors or board of
managers (or equivalent body) or its managing member authorizing the execution,
delivery and performance of the Loan Documents to which it is a party and, in
the case of the Borrower, the borrowings hereunder, and that such resolutions
have not been modified, rescinded or amended and are in full force and effect,
(ii) the officers of the Borrower (or any managing member thereof) or such
Guarantor (y) who are authorized to sign the Loan Documents to which the
Borrower or such Guarantor is a party and (z) who will, until replaced by
another officer or officers duly authorized for that purpose, act as its
representative for the purposes of signing documents and giving notices and
other communications in connection with this Agreement and the transactions
contemplated hereby, (iii) specimen signatures of such authorized officers, and
(iv) the articles or certificate of incorporation and bylaws or certificate of
formation and partnership agreement or certificate of formation and limited
liability company agreement (as the case may be) of the Borrower, and each
Guarantor, certified as being true and complete.  The Administrative Agent and the Lenders may
conclusively rely on such certificate until the Administrative Agent receives
notice in writing from the Borrower to the contrary.

(d)                                 The Administrative
Agent shall have received certificates of the appropriate State agencies with
respect to the existence, qualification and good standing of the Borrower and
each Guarantor.

(e)                                  The Administrative
Agent shall have received a compliance certificate which shall be substantially
in the form of Exhibit D, duly and properly executed by a Responsible
Officer and dated as of the date of Effective Date.

(f)                                    The Administrative
Agent shall have received from each party hereto counterparts (in such number
as may be requested by the Administrative Agent) of this Agreement signed on
behalf of such party.

(g)                                 The Administrative
Agent shall have received duly executed Notes payable to the order of each
Lender in a principal amount equal to its Maximum Credit Amount dated as of the
date hereof.

(h)                                 The Administrative
Agent shall have received from each party thereto duly executed counterparts
(in such number as may be requested by the Administrative Agent) of the
Security Instruments, including the Guaranty Agreement and the other Security Instruments
described on Exhibit E-1.  In
connection with the execution and delivery of the Security Instruments, the
Administrative Agent shall:

(1)                                  be satisfied that the
Security Instruments create first priority, perfected Liens (subject only to
Excepted Liens identified in clauses (a), (b), (c) and (f) of the definition
thereof, but subject to the provisos at the end of such definition) on at least
90% of the total value of the Oil and Gas Properties evaluated in the Initial
Reserve Report;

(2)                                  have received
certificates, together with undated, blank stock powers (if applicable) for
each such certificate, representing all of the certificated issued and
outstanding Equity Interest of each Person the Equity Interest of which are
required to be pledged pursuant to the Loan Documents.

 50
 

(i)                                     The Administrative
Agent shall have received an opinion of (i) Howard Mann, special counsel
to the Borrower, in form and substance satisfactory to the Administrative Agent
and (ii) local counsel in Tennessee and any other jurisdictions requested by
the Administrative Agent, in form and substance satisfactory to the
Administrative Agent.

(j)                                     The Administrative
Agent shall have received a certificate of insurance coverage of the Borrower
evidencing that the Borrower is carrying insurance in accordance with Section 7.13.

(k)                                  The Administrative
Agent shall have received title opinions and other title information and data
as the Administrative Agent may reasonably request satisfactory to the
Administrative Agent setting forth the status of title to at least 80% of the
total value of the Oil and Gas Properties evaluated in the Initial Reserve
Report.  Title opinions shall state that
the Borrower or its Subsidiary, as the case may be, has good and defensible
title to the Oil and Gas Properties to be mortgaged free and clear of all
Liens, other than Excepted Liens, in favor of the Administrative Agent for the
ratable benefit of the Lenders.  Such
title opinions shall also state the net revenue interests and working
interests, before and after payout, of the Oil and Gas Properties to be
mortgaged, and shall otherwise be satisfactory in form and substance to the
Administrative Agent.  Such title
assurances shall also include a title indemnity from the NRC, Ariana and TEC
pursuant to the terms of an agreement (the “Title Indemnity Agreement”), which shall be satisfactory
in form and substance to the Administrative Agent.

(l)                                     The Administrative
Agent shall be satisfied with the working capital position of the Borrower and
its Subsidiaries and the environmental condition of the Oil and Gas Properties
of the Borrower and its Subsidiaries.

(m)                               The Administrative Agent
shall have received a certificate of a Responsible Officer of the Borrower
certifying that the Borrower has received all consents and approvals required
by Section 7.03.

(n)                                 The Administrative
Agent shall have received the financial statements referred to in Section 7.04(a)
and the Initial Reserve Report accompanied by a certificate covering the
matters described in Section 8.12(c).

(o)                                 The Administrative
Agent shall have received appropriate UCC search certificates reflecting no
prior Liens encumbering the Properties of the Borrower and the Subsidiaries for
each of the following jurisdictions:  Kentucky
and Tennessee and any other jurisdiction requested by the Administrative Agent;
other than those being assigned or released on or prior to the Effective Date
or Liens permitted by Section 9.03.

(p)                                 The Administrative
Agent shall have received an affidavit in the form of Exhibit G attached
hereto (the “Affidavit of Payment of Trade
Bills”) containing the information as provided therein.

(q)                                 The Administrative
Agent shall have received certificates (whether one or more, the “Property Certificate”) for each Oil and
Gas Property described as an exhibit to a

 51
 

Mortgage, which Property Certificates shall be in the form of Exhibit
H attached hereto containing the information as provided therein.

(r)                                    The Administrative
Agent shall have received a schedule (the “Reconciliation
Schedule”) in the form of Exhibit I confirming that,
except as otherwise shown on the Reconciliation Schedule, (i) each well or unit
described on the exhibits to the Mortgages is also included in the Initial
Reserve Report, and (ii) the respective net revenue interests and working
interests for each well or unit described on the exhibits to the Mortgages are
also the net revenue interests and working interests for the same well or unit
included in the Initial Reserve Report.

(s)                                  The Administrative
Agent shall have received evidence of the payment in full of all amounts due
under the Existing Credit Agreements, the termination of all commitments to
lend thereunder and the release of all Liens securing such obligations and any
other obligations secured thereby.

(t)                                    The Administrative
Agent shall be satisfied with the working capital position of the Borrower and
its Subsidiaries.

(u)                                 The Administrative
Agent shall have received true, correct and complete copies of all documents
relating to the Nami Restructure Plan then in existence and such other
documents as the Administrative Agent or special counsel to the Administrative
Agent may reasonably request.

(v)                                 There is an unused
amount of Commitments of at least $5,000,000 as of the Effective Date after
giving effect to the Loans to be made on such date.

The Administrative Agent shall notify the Borrower and
the Lenders of the Effective Date, and such notice shall be conclusive and
binding.  Notwithstanding the foregoing,
the obligations of the Lenders to make Loans and of the Issuing Bank to issue
Letters of Credit hereunder shall not become effective unless each of the
foregoing conditions is satisfied (or waived pursuant to Section 12.02)
at or prior to 2:00 p.m., Dallas, Texas time, on January 16, 2007 (and, in
the event such conditions are not so satisfied or waived, the Commitments shall
terminate at such time).

Section 6.02.                             Each
Credit Event.  The obligation of each
Lender to make a Loan on the occasion of any Borrowing (including the initial
funding), and of the Issuing Bank to issue, amend, renew or extend any Letter
of Credit, is subject to the satisfaction of the following conditions:

(a)                                  At the time of and
immediately after giving effect to such Borrowing or the issuance, amendment,
renewal or extension of such Letter of Credit, as applicable, no Default shall
have occurred and be continuing.

(b)                                 At the time of and
immediately after giving effect to such Borrowing or the issuance, amendment,
renewal or extension of such Letter of Credit, as applicable, no event,

 52
 

development or circumstance has occurred or shall then exist that has
resulted in, or could reasonably be expected to have, a Material Adverse
Effect.

(c)                                  The representations
and warranties of the Borrower and the Guarantors set forth in this Agreement
and in the other Loan Documents shall be true and correct on and as of the date
of such Borrowing or the date of issuance, amendment, renewal or extension of
such Letter of Credit, as applicable, except to the extent any such
representations and warranties are expressly limited to an earlier date, in
which case, on and as of the date of such Borrowing or the date of issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, such
representations and warranties shall continue to be true and correct as of such
specified earlier date.

(d)                                 The making of such
Loan or the issuance, amendment, renewal or extension of such Letter of Credit,
as applicable, would not conflict with, or cause any Lender or the Issuing Bank
to violate or exceed, any applicable Governmental Requirement, and no Change in
Law shall have occurred, and no litigation shall be pending or threatened,
which does or, with respect to any threatened litigation, seeks to, enjoin,
prohibit or restrain, the making or repayment of any Loan, the issuance,
amendment, renewal, extension or repayment of any Letter of Credit or any
participations therein or the consummation of the transactions contemplated by
this Agreement or any other Loan Document.

(e)                                  The receipt by the
Administrative Agent of a Borrowing Request in accordance with Section 2.03
or a request for a Letter of Credit in accordance with Section 2.08(b),
as applicable.

Each request for a Borrowing and each request for the
issuance, amendment, renewal or extension of any Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date
thereof as to the matters specified in Section 6.02(a) through (e).

ARTICLE
VII

Representations and Warranties

The Borrower represents and warrants to the
Administrative Agent, the Issuing Bank and the Lenders that:

Section 7.01.                             Organization;
Powers.  Each of the Borrower and the
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority, and has all material governmental licenses, authorizations, consents
and approvals necessary, to own its assets and to carry on its business as now
conducted, and is qualified to do business in, and is in good standing in,
every jurisdiction where such qualification is required, except where failure
to have such power, authority, licenses, authorizations, consents, approvals
and qualifications could not reasonably be expected to have a Material Adverse
Effect.

Section 7.02.                             Authority;
Enforceability.  The Transactions are
within the Borrower’s and each Guarantor’s limited liability company,
partnership, and corporate powers (as applicable) and have been duly authorized
by all necessary limited liability company and, if

 53
 

required, member action (including, without limitation, any action
required to be taken by any class of managers,
directors or partners (as applicable) of the Borrower or any other
Person, whether interested or disinterested, in order to ensure the due
authorization of the Transactions).  Each
Loan Document to which the Borrower and each Guarantor is a party has been duly
executed and delivered by the Borrower and such Guarantor and constitutes a
legal, valid and binding obligation of the Borrower and such Guarantor, as applicable,
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law.

Section 7.03.                             Approvals;
No Conflicts.  The Transactions (a)
do not require any consent or approval of, registration or filing with, or any
other action by, any Governmental Authority or any other third Person
(including members or any class of managers, whether interested or
disinterested, of the Borrower or any other Person), nor is any such consent,
approval, registration, filing or other action necessary for the validity or
enforceability of any Loan Document or the consummation of the transactions
contemplated thereby, except such as have been obtained or made and are in full
force and effect other than (i) the recording and filing of the Security
Instruments as required by this Agreement, (ii) those third party approvals or
consents which, if not made or obtained, would not cause a Default hereunder,
could not reasonably be expected to have a Material Adverse Effect or do not
have an adverse effect on the enforceability of the Loan Documents, and (iii)
consents by, required notices to, or other actions by state and federal
governmental entities in connection with the assignment of state and federal
oil and gas leases or other interests therein that are customarily obtained
subsequent to such assignments, (b) will not violate any applicable law or
Organizational Documents of the Borrower or any Subsidiary or any order of any
Governmental Authority, (c) will not violate or result in a default under any
indenture, agreement or other instrument binding upon the Borrower or any
Subsidiary or its Properties, or give rise to a right thereunder to require any
payment to be made by the Borrower or such Subsidiary and (d) will not result
in the creation or imposition of any Lien on any Property of the Borrower or
any Subsidiary (other than the Liens created by the Loan Documents).

Section 7.04.                             Financial
Condition; No Material Adverse Change.

(a)                                  The Borrower has
heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, members’ equity and cash flows (A) as of and for the
fiscal year ended December 31, 2005, reported on by Charles M.
Stivers, independent public accountant and (B) as of and for the fiscal quarter
and the portion of the fiscal year ended November 30, 2006, certified by
its chief financial officer.  Such
financial statements present fairly, in all material respects, the financial
condition and results of operations and cash flows of the Borrower and its
Consolidated Subsidiaries as of such dates and for such periods in accordance
with GAAP, subject to year-end audit adjustments and the absence of footnotes
in the case of the unaudited quarterly financial statements.  Such balance sheets and the notes thereto
disclose all material liabilities, direct or contingent, of the Borrower and its
Consolidated Subsidiaries as of the dates thereof.

 54
 

(b)                                 Since
November 30, 2006, (i) there has been no event, development or
circumstance that has had or could reasonably be expected to have a Material
Adverse Effect and (ii) the business of the Borrower and its Subsidiaries
has been conducted only in the ordinary course consistent with past business
practices.

(c)                                  Neither the Borrower
nor any Subsidiary has on the date hereof any material Debt (including
Disqualified Capital Stock) or any contingent liabilities, off-balance sheet
liabilities or partnerships, liabilities for taxes, unusual forward or
long-term commitments or unrealized or anticipated losses from any unfavorable
commitments, except as referred to or reflected or provided for in the Financial
Statements.

Section 7.05.                             Litigation.

(a)                                  Except as set forth
on Schedule 7.05, there are no actions, suits, investigations or
proceedings by or before any arbitrator or Governmental Authority pending
against or, to the knowledge of the Borrower, threatened against or affecting the
Borrower or any Subsidiary (i) not fully covered by insurance (except for
normal deductibles) as to which there is a reasonable possibility of an adverse
determination that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect,
(ii) that involve any Loan Document or the Transactions or (iii) that
could impair the consummation of the Acquisition on the time and in the manner
contemplated by the Acquisition Documents.

(b)                                 Since the date of this
Agreement, there has been no change in the status of the matters disclosed in Schedule 7.05
that, individually or in the aggregate, has resulted in, or materially
increased the likelihood of, a Material Adverse Effect.

Section 7.06.                             Environmental
Matters.  Except as set forth in Schedule
7.06 and as could not be reasonably expected to have a Material Adverse
Effect (or with respect to (c), (d) and (e) below, where the failure to take
such actions could not be reasonably expected to have a Material Adverse
Effect):

(a)                                  neither any Property
of the Borrower or any Subsidiary nor the operations conducted thereon violate
any order or requirement of any court or Governmental Authority or any
Environmental Laws.

(b)                                 no Property of the
Borrower or any Subsidiary nor the operations currently conducted thereon or,
to the knowledge of the Borrower, by any prior owner or operator of such
Property or operation, are in violation of or subject to any existing, pending
or threatened action, suit, investigation, inquiry or proceeding by or before
any court or Governmental Authority or to any remedial obligations under
Environmental Laws.

(c)                                  all notices, permits,
licenses, exemptions, approvals or similar authorizations, if any, required to
be obtained or filed in connection with the operation or use of any and all
Property of the Borrower and each Subsidiary, including, without limitation,
past or present treatment, storage, disposal or release of a hazardous
substance, oil and gas waste or solid waste into the environment, have been
duly obtained or filed, and the Borrower and each

 55
 

Subsidiary are in compliance with the terms and conditions of all such
notices, permits, licenses and similar authorizations.

(d)                                 all hazardous
substances, solid waste and oil and gas waste, if any, generated at any and all
Property of the Borrower or any Subsidiary have in the past been transported,
treated and disposed of in accordance with Environmental Laws and so as not to
pose an imminent and substantial endangerment to public health or welfare or
the environment, and, to the knowledge of the Borrower, all such transport
carriers and treatment and disposal facilities have been and are operating in
compliance with Environmental Laws and so as not to pose an imminent and
substantial endangerment to public health or welfare or the environment, and
are not the subject of any existing, pending or threatened action,
investigation or inquiry by any Governmental Authority in connection with any
Environmental Laws.

(e)                                  the Borrower has
taken all steps reasonably necessary to determine and has determined that no
oil, hazardous substances, solid waste or oil and gas waste, have been disposed
of or otherwise released and there has been no threatened release of any oil, hazardous
substances, solid waste or oil and gas waste on or to any Property of the
Borrower or any Subsidiary except in compliance with Environmental Laws and so
as not to pose an imminent and substantial endangerment to public health or
welfare or the environment.

(f)                                    neither the
Borrower nor any Subsidiary has any known contingent liability or Remedial Work
in connection with any release or threatened release of any oil, hazardous
substance, solid waste or oil and gas waste into the environment.

Section 7.07.                             Compliance
with the Laws and Agreements; No Defaults.

(a)                                  Each of the Borrower
and each Subsidiary is in compliance with all Governmental Requirements
applicable to it or its Property and all agreements and other instruments
binding upon it or its Property, and possesses all licenses, permits,
franchises, exemptions, approvals and other governmental authorizations
necessary for the ownership of its Property and the conduct of its business,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

(b)                                 Neither the Borrower
nor any Subsidiary is in default nor has any event or circumstance occurred
which, but for the expiration of any applicable grace period or the giving of
notice, or both, would constitute a default or would require the Borrower or a
Subsidiary to Redeem or make any offer to Redeem under any indenture, note,
credit agreement or instrument pursuant to which any Material Indebtedness is
outstanding or by which the Borrower or any Subsidiary or any of their
Properties is bound.

(c)                                  No Default has
occurred and is continuing.

Section 7.08.                             Investment
Company Act.  Neither the Borrower
nor any Subsidiary is an “investment company” or a company “controlled” by an “investment
company,” within the meaning of, or subject to regulation under, the Investment
Company Act of 1940, as amended.

 56

Section 7.09.                             Taxes.  Each of the Borrower and its Subsidiaries has
timely filed or caused to be filed all Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been
paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary, as
applicable, has set aside on its books adequate reserves in accordance with
GAAP or (b) to the extent that the failure to do so could not reasonably be
expected to result in a Material Adverse Effect.  The charges, accruals and reserves on the
books of the Borrower and its Subsidiaries in respect of Taxes and other
governmental charges are adequate.  No
Tax Lien has been filed and, to the knowledge of the Borrower, no claim is
being asserted with respect to any such Tax or other such governmental charge.

Section 7.10.                             ERISA.

(a)                                  The Borrower, the
Subsidiaries and each ERISA Affiliate have complied in all material respects
with ERISA and, where applicable, the Code regarding each Plan.

(b)                                 Each Plan is, and has
been, maintained in substan­tial compliance with ERISA and, where applicable,
the Code.

(c)                                  No act, omission or
transaction has occurred which could result in imposition on the Borrower, any
Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i)
either a civil penalty assessed pursuant to subsections (c), (i) or (l) of
section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D
of the Code or (ii) breach of fiduciary duty liability damages under section
409 of ERISA.

(d)                                 No Plan (other than a
defined contribu­tion plan) or any trust created under any such Plan has been
terminated since September 2, 1974. 
No liability to the PBGC (other than for the payment of current premiums
which are not past due) by the Borrower, any Subsidiary or any ERISA Affiliate
has been or is expected by the Borrower, any Subsidiary or any ERISA Affiliate
to be incurred with respect to any Plan. 
No ERISA Event with respect to any Plan has occurred.

(e)                                  Full payment when due
has been made of all amounts which the Borrower, the Subsidiaries or any ERISA
Affiliate is required under the terms of each Plan or applicable law to have
paid as contribu­tions to such Plan as of the date hereof, and no accumulated
funding deficiency (as defined in section 302 of ERISA and section 412 of the
Code), whether or not waived, exists with respect to any Plan.

(f)                                    The actuarial
present value of the benefit liabili­ties under each Plan which is subject to
Title IV of ERISA does not, as of the end of the Borrower’s most recently
ended fiscal year, exceed the current value of the assets (computed on a plan
termination basis in accordance with Title IV of ERISA) of such Plan
allocable to such benefit liabilities. 
The term “actuarial present value of the benefit liabilities” shall have
the meaning specified in section 4041 of ERISA.

(g)                                 Neither the Borrower,
the Subsidiaries nor any ERISA Affiliate sponsors, maintains, or contributes to
an employee welfare benefit plan, as defined in section 3(1) of

 57
 

ERISA, including, without limitation, any such plan maintained to
provide benefits to former employees of such entities, that may not be
terminated by the Borrower, a Subsidiary or any ERISA Affiliate in its sole discretion
at any time without any material liability.

(h)                                 Neither the Borrower,
the Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to,
or has at any time in the six-year period preceding the date hereof sponsored,
maintained or contributed to, any Multiemployer Plan.

(i)                                     Neither the
Borrower, the Subsidiaries nor any ERISA Affiliate is required to provide
security under section 401(a)(29) of the Code due to a Plan amendment that
results in an increase in current liability for the Plan.

Section 7.11.                             Disclosure;
No Material Misstatements.  The
Borrower has disclosed to the Administrative Agent and the Lenders all
agreements, instruments and corporate or other restrictions to which it or any
of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  None of the
other reports, financial statements, certificates or other information furnished
by or on behalf of the Borrower or any Subsidiary to the Administrative Agent
or any Lender or any of their Affiliates in connection with the negotiation of
this Agreement or any other Loan Document or delivered hereunder or under any
other Loan Document (as modified or supplemented by other information so
furnished) contains any material misstatement of fact or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with
respect to projected financial information, the Borrower represents only that
such information was prepared in good faith based upon assumptions believed to
be reasonable at the time.  There is no
fact peculiar to the Borrower or any Subsidiary which could reasonably be
expected to have a Material Adverse Effect or in the future is reasonably
likely to have a Material Adverse Effect and which has not been set forth in
this Agreement or the Loan Documents or the other documents, certificates and
statements furnished to the Administrative Agent or the Lenders by or on behalf
of the Borrower or any Subsidiary prior to, or on, the date hereof in
connection with the transactions contemplated hereby.  There are no statements or conclusions in any
Reserve Report which are based upon or include misleading information or fail
to take into account material information regarding the matters reported
therein, it being understood that projections concerning volumes attributable
to the Oil and Gas Properties and production and cost estimates contained in
each Reserve Report are necessarily based upon professional opinions, estimates
and projections and that the Borrower and the Subsidiaries do not warrant that
such opinions, estimates and projections will ultimately prove to have been
accurate.

Section 7.12.                             Insurance.  Schedule 7.12 sets forth a true,
complete and correct description of all insurance maintained by the Borrower or
by the Borrower for its Subsidiaries or by each Subsidiary for itself, as the
case may be, as of the date hereof and the Effective Date.  The Borrower has, and has caused all of its
Subsidiaries to have, (a) all insurance policies sufficient for the
compliance by each of them with all material Governmental Requirements and all
material agreements and (b) insurance coverage in at least amounts and
against such risk (including, without limitation, public liability) that are
commercially reasonable and usually insured against by companies similarly
situated and engaged in the same or a similar business for

 58
 

the assets and operations of the Borrower and its Subsidiaries.  The Administrative Agent has been named as an
additional insured in respect of such liability insurance policies, and the
Administrative Agent has been named as loss payee with respect to Property loss
insurance.

Section 7.13.                             Restriction
on Liens.  Neither the Borrower nor
any of the Subsidiaries is a party to any material agreement or arrangement
(other than Capital Leases creating Liens permitted by Section 9.03(c),
but then only on the Property subject of such Capital Lease), or subject to any
order, judgment, writ or decree, which either restricts or purports to restrict
its ability to grant Liens to the Administrative Agent and the Lenders on or in
respect of their Properties to secure the Indebtedness and the Loan Documents.

Section 7.14.                             Subsidiaries.  Except as set forth on Schedule 7.14
or as disclosed in writing to the Administrative Agent (which shall promptly
furnish a copy to the Lenders), which shall be a supplement to Schedule 7.14,
the Borrower has no Subsidiaries and the Borrower has no Foreign
Subsidiaries.  Each Subsidiary on such
schedule is a Wholly-Owned Subsidiary and a disregarded entity for federal
income tax purposes.

Section 7.15.                             Location
of Business and Offices.  The
Borrower’s jurisdiction of organization is Kentucky; the name of the Borrower
as listed in the public records of its jurisdiction of organization is Nami
Holding Company, LLC; and the organizational identification number of the
Borrower in its jurisdiction of organization is 0601349 (or, in each case, as
set forth in a notice delivered to the Administrative Agent pursuant to Section 8.01(n)
in accordance with Section 12.01). 
The Borrower’s principal place of business is located at the address in
London, Kentucky specified in Section 12.01 (or as set forth in a notice
delivered pursuant to Section 8.01(n) and Section 12.01(c)), and
its chief executive offices is located at the San Felipe street address in
Houston, Texas specified in Section 12.01 (or as set forth in a
notice delivered pursuant to Section 8.01(n) and Section 12.01(c)).  Each Subsidiary’s jurisdiction of
organization, name as listed in the public records of its jurisdiction of
organization, organizational identification number in its jurisdiction of
organization, and the location of its principal place of business and chief
executive office is stated on Schedule 7.14 (or as set forth in a notice
delivered pursuant to Section 8.01(n)).

Section 7.16.                             Properties;
Titles, Etc.

(a)                                  Each of the Borrower
and the Subsidiaries has good and defensible title to the Oil and Gas
Properties evaluated in the most recently delivered Reserve Report and good
title to all its personal Properties, in each case, free and clear of all Liens
except Liens permitted by Section 9.03.  After giving full effect to the Excepted
Liens, the Borrower or the Subsidiary specified as the owner owns the net
interests in production attributable to the Hydrocarbon Interests as reflected
in the most recently delivered Reserve Report, and the ownership of such
Properties shall not in any material respect obligate the Borrower or such
Subsidiary to bear the costs and expenses relating to the maintenance,
development and operations of each such Property in an amount in excess of the
working interest of each Property set forth in the most recently delivered
Reserve Report that is not offset by a corresponding proportionate increase in
the Borrower’s or such Subsidiary’s net revenue interest in such Property.  The ownership by the Borrower or any
Subsidiary of the Hydrocarbons and the undivided interests therein specified on

 59
 

the exhibits to the Mortgages are the same interests reflected in the
most recently delivered Reserve Report.

(b)                                 All material leases
and agreements necessary for the conduct of the business of the Borrower and
the Subsidiaries are valid and subsisting, in full force and effect, and there
exists no default or event or circumstance which with the giving of notice or
the passage of time or both would give rise to a default under any such lease
or leases, which could reasonably be expected to have a Material Adverse
Effect.

(c)                                  The rights and
Properties presently owned, leased or licensed by the Borrower and the
Subsidiaries including, without limitation, all easements and rights of way,
include all rights and Properties necessary to permit the Borrower and the
Subsidiaries to conduct their business in all material respects in the same
manner as its business has been conducted prior to the date hereof.

(d)                                 All of the Properties
of the Borrower and the Subsidiaries which are reasonably necessary for the
operation of their businesses are in good working condition and are maintained
in accordance with prudent business standards.

(e)                                  The Borrower and each
Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights,
patents and other intellectual Property material to its business, and the use
thereof by the Borrower and such Subsidiary does not infringe upon the rights
of any other Person, except for any such infringements that, in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect.  The Borrower and its Subsidiaries either own
or have valid licenses or other rights to use all databases, geological data,
geophysical data, engineering data, seismic data, maps, interpretations and
other technical information used in their businesses as presently conducted,
subject to the limitations contained in the agreements governing the use of the
same, which limitations are customary for companies engaged in the business of
the exploration and production of Hydrocarbons, with such exceptions as could
not reasonably be expected to have a Material Adverse Effect.

(f)                                    With regard to the
Volumetric Production Payment (the “Production
Payment”) and the Natural Gas Purchase Agreement (the “Purchase Agreement”) (both as further
described in Exhibit A to the Mortgage and Security Agreement dated
March 23, 2001 and recorded, inter alia, at
Mortgage Book 104, Page 228 in the Office of the McCreary County Clerk):  (i) the Production Payment and the
Purchase Agreement have expired in accordance with their terms,
(ii) neither O.G. Investment, L.L.C., nor Joint Investment and
Development, L.L.C. any longer have any interest in the Production Payment
and/or the Purchase Agreement; and (iii) all of the rights of any party to
receive gas, or the payment therefor, pursuant to the Production Payment or the
Purchase Agreement have terminated and have reverted to the Borrower or to an
Affiliate of the Borrower which is giving security pursuant to this Agreement.

Section 7.17.                             Maintenance
of Properties.  Except for such acts
or failures to act as could not be reasonably expected to have a Material
Adverse Effect, and subject to the prior rights and limitations of Borrower as
an owner of non-operated working interests, the Oil and Gas Properties (and
Properties unitized therewith) of the Borrower and its Subsidiaries have been
maintained, operated and developed in a good and workmanlike manner and in
conformity with

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all Governmental Requirements and in conformity with the provisions of
all leases, subleases or other contracts comprising a part of the Hydrocarbon
Interests and other contracts and agreements forming a part of the Oil and Gas
Properties of the Borrower and its Subsidiaries.  Specifically in connection with the
foregoing, except for those as could not be reasonably expected to have a
Material Adverse Effect, (i) no Oil and Gas Property of the Borrower or any
Subsidiary is subject to having allowable production reduced below the full and
regular allowable (including the maximum permissible tolerance) because of any
overproduction (whether or not the same was permissible at the time) and (ii)
none of the wells comprising a part of the Oil and Gas Properties (or Properties
unitized therewith) of the Borrower or any Subsidiary is deviated from the
vertical more than the maximum permitted by Governmental Requirements (except
with respect to horizontal wells permitted by Governmental Authority), and such
wells are, in fact, bottomed under and are producing from, and the well bores
are wholly within, the Oil and Gas Properties (or in the case of wells located
on Properties unitized therewith, such unitized Properties) of the Borrower or
such Subsidiary.  All pipelines, wells,
gas processing plants, platforms and other material improvements, fixtures and
equipment owned in whole or in part by the Borrower or any of its Subsidiaries
that are necessary to conduct normal operations are being maintained in a state
adequate to conduct normal operations, and with respect to such of the
foregoing which are operated by the Borrower or any of its Subsidiaries, in a
manner consistent with the Borrower’s or its Subsidiaries’ past practices
(other than those the failure of which to maintain in accordance with this Section 7.18
could not reasonably be expected to have a Material Adverse Effect).

Section 7.18.                             Gas
Imbalances, Prepayments.  Except as
set forth on Schedule 7.18 or on the most recent certificate delivered
pursuant to Section 8.12(c), on a net basis there are no Material
Gas Imbalances, take or pay or other prepayments which would require the
Borrower or any of its Subsidiaries to deliver Hydrocarbons produced from the
Oil and Gas Properties at some future time without then or thereafter receiving
full payment therefor.

Section 7.19.                             Marketing
of Production.  Except for contracts
listed and in effect on the date hereof on Schedule 7.19, and thereafter
either disclosed in writing to the Administrative Agent or included in the most
recently delivered Reserve Report (with respect to all of which contracts the
Borrower represents that it or its Subsidiaries are receiving a price for all
production sold thereunder which is computed substantially in accordance with
the terms of the relevant contract and are not having deliveries curtailed
substantially below the subject Property’s delivery capacity), no material
agreements exist which are not cancelable on 60 days notice or less without
penalty or detriment for the sale of production from the Borrower’s or its
Subsidiaries’ Hydrocarbons (including, without limitation, calls on or other
rights to purchase, production, whether or not the same are currently being
exercised) that (a) pertain to the sale of production at a fixed price and (b)
have a maturity or expiry date of longer than six (6) months from the date
hereof.

Section 7.20.                             Swap
Agreements.  Schedule 7.20, as
of the date hereof, and after the date hereof, each report required to be
delivered by the Borrower pursuant to Section 8.01(f), sets forth,
a true and complete list of all Swap Agreements of the Borrower and each
Subsidiary, the material terms thereof (including the type, term, effective
date, termination date and notional

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amounts or volumes), the net mark to market value thereof, all credit
support agreements relating thereto (including any margin required or supplied)
and the counterparty to each such agreement.

Section 7.21.                             Use
of Loans and Letters of Credit and Proceeds of Equity Event.  The proceeds of the Loans and the Letters of
Credit shall be used to provide working capital for exploration and production
operations, to refinance Debt under the Existing Credit Agreements, to pay fees
and expenses related to the Transaction, to make a one time distribution of up
to $14,000,000 (subject to compliance with clause (i) of Section 9.04
hereof) to Majeed S. Nami, and for general corporate purposes.  The Borrower and its Subsidiaries are not
engaged principally, or as one of its or their important activities, in the
business of extending credit for the purpose, whether immediate, incidental or
ultimate, of buying or carrying margin stock (within the meaning of Regulation
T, U or X of the Board).  No part of the
proceeds of any Loan or Letter of Credit will be used for any purpose which
violates the provisions of Regulations T, U or X of the Board.  The first $80,000,000 of the proceeds
received from an Equity Event shall be applied to the repayment of the
Indebtedness.

Section 7.22.                             Solvency.  After giving effect to the transactions
contemplated hereby and the Nami Restructure Plan, (a) the aggregate assets
(after giving effect to amounts that could reasonably be received by reason of
indemnity, offset, insurance or any similar arrangement), at a fair valuation,
of the Borrower and the Guarantors, taken as a whole, will exceed the aggregate
Debt of the Borrower and the Guarantors on a consolidated basis, as the Debt
becomes absolute and matures, (b) each of the Borrower and the Guarantors will
not have incurred or intended to incur, and will not believe that it will
incur, Debt beyond its ability to pay such Debt (after taking into account the
timing and amounts of cash to be received by each of the Borrower and the
Guarantors and the amounts to be payable on or in respect of its liabilities,
and giving effect to amounts that could reasonably be received by reason of
indemnity, offset, insurance or any similar arrangement) as such Debt becomes
absolute and matures and (c) each of the Borrower and the Guarantors will not
have (and will have no reason to believe that it will have thereafter)
unreasonably small capital for the conduct of its business.

Section 7.23.                             Sanctioned
Persons.  Neither the Borrower or any
Subsidiary nor, to the knowledge of the Borrower, any director, officer, agent,
employee or Affiliate of the Borrower or any Subsidiary is currently subject to
any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. Treasury Department (“OFAC”);
and the Borrower will not directly or indirectly use the proceeds of the Loans
or the Letters of Credit or otherwise make available such proceeds to any
Person or entity, for the purpose of financing the activities of any Person
currently subject to any U.S. sanctions administered by OFAC.

Section 7.24.                             Security
Instruments.  The Mortgages are
effective to create in favor of the Administrative Agent, for the ratable
benefit of the Lenders, a legal, valid and enforceable Lien on all of the
Borrower’s and each Guarantor’s right, title and interest in and to the Mortgaged
Property thereunder and the proceeds thereof, and when the Mortgages are filed
in the offices specified on Schedule 7.24, the Mortgages shall
constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the Borrower and each Guarantor in such Mortgaged
Property and the proceeds thereof, in each case prior and superior in right to
any other Person,

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other than with respect to the rights of persons pursuant to Liens
expressly permitted by Section 9.03.

ARTICLE
VIII

Affirmative Covenants

Until the Commitments have expired or been terminated
and the principal of and interest on each Loan and all fees payable hereunder
and all other amounts payable under the Loan Documents shall have been paid in
full and all Letters of Credit shall have expired or terminated and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees
with the Lenders that:

Section 8.01.                             Financial
Statements; Other Information.  The
Borrower will furnish to the Administrative Agent and each Lender:

(a)                                  Annual Financial
Statements.  As soon as available,
but in any event in accordance with then applicable law and not later than 90
days after the end of each fiscal year of the Borrower, its audited
consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such year, setting forth in each
case in comparative form the figures for the previous fiscal year, all reported
on by an independent public accountant of recognized national standing (without
a “going concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit) to the effect that
such consolidated financial statements present fairly in all material respects
the financial condition and results of operations of the Borrower and its
Consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied.

(b)                                 Quarterly Financial
Statements.  As soon as available,
but in any event in accordance with then applicable law and not later than 45
days after the end of each of the first three fiscal quarters of each fiscal
year of the Borrower (beginning with the first quarter of 2007), its
consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such fiscal quarter and the then
elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of
the balance sheet, as of the end of) the previous fiscal year, all certified by
one of its Financial Officers as presenting fairly in all material respects the
financial condition and results of operations of the Borrower and its
Consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes.

(c)                                  Certificate of
Financial Officer — Compliance. 
Concurrently with any delivery of financial statements under Section 8.01(a)
or Section 8.01(b), a certificate of a Financial Officer in
substantially the form of Exhibit D hereto (i) certifying as
to whether a Default has occurred and, if a Default has occurred, specifying
the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations demonstrating
compliance with Section 8.13(b) and Section 9.01 and
(iii) stating whether any change in GAAP or in the application thereof has
occurred since the date of the audited financial statements referred to in Section 7.04
(or, if later, the most recently delivered

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audited financial statements pursuant to Section 8.01(a))
and, if any such change has occurred, specifying the effect of such change on
the financial statements accompanying such certificate.

(d)                                 Certificate of
Accounting Firm — Defaults. 
Concurrently with any delivery of financial statements under Section 8.01(a),
a certificate of the accounting firm that reported on such financial statements
stating whether they obtained knowledge during the course of their examination
of such financial statements of any Default (which certificate may be limited
to the extent required by accounting rules or guidelines).

(e)                                  Certificate of
Financial Officer — Consolidating Information.  If, at any time, all of the Consolidated
Subsidiaries of the Borrower are not Consolidated Subsidiaries, then
concurrently with any delivery of financial statements under Section 8.01(a)
or Section 8.01(b), a certificate of a Financial Officer setting
forth consolidating spreadsheets that show all Consolidated Subsidiaries and
the eliminating entries, in such form as would be presentable to the auditors
of the Borrower.

(f)                                    Certificate of
Financial Officer — Swap Agreements. 
Concurrently with any delivery of financial statements under Section 8.01(a)
and Section 8.01(b), a certificate of a Financial Officer, in form
and substance satisfactory to the Administrative Agent, setting forth as of the
last Business Day of such fiscal quarter or fiscal year, a true and complete
list of all Swap Agreements of the Borrower and each Subsidiary, the material
terms thereof (including the type, term, effective date, termination date and
notional amounts or volumes), the net mark-to-market value therefor, any new
credit support agreements relating thereto not listed on Schedule 7.20,
any margin required or supplied under any credit support document, and the
counterparty to each such agreement.

(g)                                 Certificate of
Insurer — Insurance Coverage. 
Concurrently with any delivery of financial statements under Section 8.01(a),
a certificate of insurance coverage from each insurer with respect to the
insurance required by Section 8.07, in form and substance
satisfactory to the Administrative Agent, and, if requested by the
Administrative Agent or any Lender, all copies of the applicable policies.

(h)                                 Other Accounting
Reports.  Promptly upon receipt
thereof, a copy of each other report or letter submitted to the Borrower or any
of its Subsidiaries by independent accountants in connection with any annual,
interim or special audit made by them of the books of the Borrower or any such
Subsidiary, and a copy of any response by the Borrower or any such Subsidiary,
or the board of managers of the Borrower or any such Subsidiary, to such letter
or report.

(i)                                     SEC and Other
Filings; Reports to Shareholders.  If
the Borrower or one of its Subsidiaries or Affiliates seeks to become a
publicly traded company, a copy of its S-1 Registration Statement
simultaneously with its filing with the SEC and thereafter promptly after the
same become publicly available, copies of all periodic and other reports, proxy
statements and other materials filed by the Borrower or any Subsidiary or
Affiliate with the SEC, or with any national securities exchange, or
distributed by the Borrower to its shareholders generally, as the case may
be.  Documents required to be delivered
pursuant to this clause (i) may be delivered electronically and if so
delivered shall be deemed to have been delivered on the date (x) on

 64
 

which the Borrower posts such documents, or provides a link thereto on
the Borrower’s website on the Internet; or (ii) on which such documents
are posted on the Borrower’s behalf on IntraLinks/SyndTrak or another relevant
website, if any, to which each Lender and the Administrative Agent have access
(whether a commercial, third-party website or whether sponsored by the
Administrative Agent); provided that: 
(i) upon written request by the Administrative Agent, the Borrower shall
deliver paper copies of such documents to the Administrative Agent for further
distribution to each Lender until a written request to cease delivering paper
copies is given by the Administrative Agent and (ii) the Borrower shall notify
(which may be by facsimile or electronic mail) the Administrative Agent of the
posting of any such documents and provide to the Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such documents.

(j)                                     Notices Under
Material Instruments.  Promptly after
the furnishing thereof, copies of any financial statement, report or notice
furnished to or by any Person pursuant to the terms of any preferred stock
designation, indenture, loan or credit or other similar agreement, other than
this Agreement and not otherwise required to be furnished to the Lenders
pursuant to any other provision of this Section 8.01.

(k)                                  Lists of
Purchasers.  Concurrently with the
delivery of any Reserve Report to the Administrative Agent pursuant to Section 8.12,
a list of the names and addresses of all Persons purchasing Hydrocarbons from
the Borrower or any Subsidiary.

(l)                                     Notice of Sales
of Oil and Gas Properties.  In the
event the Borrower or any Subsidiary intends to sell, transfer, assign or
otherwise dispose of any Oil or Gas Properties or any Equity Interests in any
Subsidiary in accordance with Section 9.12, prior written notice of
such disposition, the price thereof and the anticipated date of closing and any
other details thereof requested by the Administrative Agent or any Lender.

(m)                               Notice of Casualty
Events.  Prompt written notice, and
in any event within three Business Days, of the occurrence of any Casualty
Event or the commencement of any action or proceeding that could reasonably be
expected to result in a Casualty Event.

(n)                                 Information
Regarding Borrower and Guarantors. 
Prompt written notice (and in any event within thirty (30) days prior
thereto) of any change (i) in the Borrower or any Guarantor’s corporate
name or in any trade name used to identify such Person in the conduct of its
business or in the ownership of its Properties, (ii) in the location of
the Borrower or any Guarantor’s chief executive office or principal place of
business, (iii) in the Borrower or any Guarantor’s identity or corporate
structure or in the jurisdiction in which such Person is incorporated or
formed, (iv) in the Borrower or any Guarantor’s jurisdiction of organization or
such Person’s organizational identification number in such jurisdiction of
organization, and (v) in the Borrower or any Guarantor’s federal taxpayer
identification number, if any.

(o)                                 Production Reports
and Lease Operating Statements. 
Within 45 days after the end of each fiscal quarter, a report setting
forth, for each calendar month during the then current fiscal year to date, (i)
the volume of production and sales attributable to production (and the prices
at which such sales were made and the revenues derived from such sales) for
each such calendar month from the Oil and Gas Properties, individually and in
the aggregate, and

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(ii) the related ad valorem, severance and production taxes and lease
operating expenses attributable thereto and incurred for each such calendar
month.

(p)                                 Gas Balancing
Reports.  Within 45 days after the
end of each fiscal quarter, a report setting forth, for the quarter during the
then current fiscal year to date, the existence of any Material Gas Imbalances
listed on a property-by-property basis.

(q)                                 Notices of Certain
Changes.  Promptly, but in any event
within five (5) Business Days after the execution thereof, copies of any
amendment, modification or supplement to the Organizational Documents of the
Borrower or any Subsidiary.

(r)                                    Ratings Change.  If the Borrower or one of its Affiliates
becomes a publicly traded company, promptly after Moody’s or S&P shall have
announced a change in the rating of the Borrower or one of its Affiliates,
written notice of such rating change.

(s)                                  PATRIOT Act.  Promptly after the request by any Lender, all
documentation and other information that such Lender reasonably requests in
order to comply with its ongoing obligations under applicable “know your
customer” and anti-money laundering rules and regulations, including the USA
PATRIOT Act.

(t)                                    Nami Restructure
Plan.  Promptly, but in any event
within five (5) Business Days after the execution thereof, copies of all
material documents relating to the Nami Restructure Plan.  Documents required to be delivered pursuant
to this clause (t) may be delivered as provided in Section 8.01(i)
above.  In addition, the Borrower will
keep the Administrative Agent informed as to the completion of each step of the
Nami Restructure Plan, as to all material actions and transactions taken in
connection with the Nami Restructure Plan, and as to any material changes to
the Nami Restructure Plan.

(u)                                 Other Requested
Information.  Promptly following any
request therefor, such other information regarding the operations, business
affairs and financial condition of the Borrower or any Subsidiary or Affiliates
(including, without limitation, the Nami Restructure Plan, any Plan or
Multiemployer Plan and any reports or other information required to be filed
under ERISA), or compliance with the terms of this Agreement or any other Loan
Document, as the Administrative Agent or any Lender may reasonably request.

Section 8.02.                             Notices
of Material Events.  The Borrower
will furnish to the Administrative Agent and each Lender prompt written notice
of the following:

(a)                                  the occurrence of any
Default;

(b)                                 the filing or
commencement of, or the threat in writing of, any action, suit, proceeding,
investigation or arbitration by or before any arbitrator or Governmental
Authority against or affecting the Borrower or any Affiliate thereof not
previously disclosed in writing to the Lenders or any material adverse
development in any action, suit, proceeding, investigation or arbitration
(whether or not previously disclosed to the Lenders) that, in either case, if
adversely determined, could reasonably be expected to result in a Material
Adverse Effect;

 66
 

(c)                                  the occurrence of any
ERISA Event that, alone or together with any other ERISA Events that have
occurred, could reasonably be expected to result in liability of the Borrower
and its Subsidiaries in an aggregate amount exceeding $500,000; and

(d)                                 any other development
that results in, or could reasonably be expected to result in, a Material
Adverse Effect.

Each notice delivered under this Section 8.02
shall be accompanied by a statement of a Responsible Officer setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

Section 8.03.                             Existence;
Conduct of Business.  The Borrower
will, and will cause each Subsidiary to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business and maintain, if necessary, its qualification to
do business in each other jurisdiction in which its Oil and Gas Properties is
located or the ownership of its Properties requires such qualification, except
where the failure to so qualify could not reasonably be expected to have a
Material Adverse Effect; provided that the foregoing shall not prohibit any
merger, consolidation, liquidation or dissolution permitted under Section 9.11.

Section 8.04.                             Payment
of Obligations.  The Borrower will,
and will cause each Subsidiary to, pay its obligations, including Tax
liabilities of the Borrower and all of its Subsidiaries before the same shall
become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect or result in the seizure or levy of any Property of the Borrower
or any Subsidiary.

Section 8.05.                             Performance
of Obligations under Loan Documents. 
The Borrower will pay the Notes according to the reading, tenor and
effect thereof, and the Borrower will, and will cause each Subsidiary to, do
and perform every act and discharge all of the obligations to be performed and
discharged by them under the Loan Documents, including, without limitation,
this Agreement, at the time or times and in the manner specified.

Section 8.06.                             Operation
and Maintenance of Properties.  The
Borrower, at its own expense, will, and will cause each Subsidiary to:

(a)                                  operate its Oil and
Gas Properties and other material Properties or cause such Oil and Gas
Properties and other material Properties to be operated in a careful and
efficient manner in accordance with the practices of the industry and in
compliance with all applicable contracts and agreements and in compliance with
all Governmental Requirements, including, without limitation, applicable pro
ration requirements and Environmental Laws, and all applicable laws, rules and
regulations of every other Governmental Authority from time to time constituted
to regulate the development and operation of its Oil and Gas Properties and the
production and sale of Hydrocarbons and other minerals therefrom, except, in
each case, in those circumstances where a reasonably prudent operator under
similar circumstances and in

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accordance with customary industry practice would be prudent not to do
so, and the failure to comply could not reasonably be expected to have a
Material Adverse Effect.

(b)                                 operate and maintain
in a careful and efficient manner in accordance with the practices of the
industry and in compliance with all applicable contracts and agreements and in
compliance with all Governmental Requirements, including, without limitation,
all applicable laws, rules and regulations of every other Governmental
Authority from time to time constituted to regulate the gathering,
transportation or processing of Hydrocarbons and other minerals therefrom,
except, in each case, in those circumstances where a reasonably prudent
operator under similar circumstances and in accordance with customary industry
practice would be prudent not to do so, and the failure to comply could not
reasonably be expected to have a Material Adverse Effect, all pipelines,
compressor stations, wells, gas or crude oil processing facilities, field
gathering systems, tanks, tank batteries, pumps, pumping units, fixtures,
valves, fittings, machinery, parts, engines, boilers, meters, apparatus,
appliances, tools, implements, casing, tubing, rods, cables, wires, towers,
surface and other material improvements, fixtures and equipment owned in whole
or in part by the Borrower or any of its Subsidiaries that are useful or
necessary to conduct normal operations relating to gathering, transportation,
processing or removal of Hydrocarbons and other minerals or CO2 therefrom.

(c)                                  keep and maintain all
Property material to the conduct of its business in good working order and
condition, ordinary wear and tear excepted, and preserve, maintain and keep in
good repair, working order and efficiency (ordinary wear and tear excepted) all
of its material Oil and Gas Properties, all gas or crude oil processing
facilities and other material Properties, including, without limitation, all
equipment, machinery and facilities.

(d)                                 promptly pay and
discharge, or make reasonable and customary efforts to cause to be paid and
discharged, all delay rentals, royalties, expenses and indebtedness accruing
under the leases or other agreements affecting or pertaining to its Oil and Gas
Properties or gas or crude oil processing facilities and will do all other
things necessary to keep unimpaired their rights with respect thereto and
prevent any forfeiture thereof or default thereunder.

(e)                                  promptly perform or
make reasonable and customary efforts to cause to be performed, in accordance
with industry standards, the obligations required by each and all of the
assignments, deeds, leases, sub-leases, contracts and agreements affecting its
interests in its Oil and Gas Properties, all gas or crude oil processing
facilities and other material Properties.

(f)                                    operate its Oil and
Gas Properties, all gas or crude oil processing facilities and other material
Properties or cause or make reasonable and customary efforts to cause such Oil
and Gas Properties, gas or crude oil processing facilities and other material
Properties to be operated in accordance with the practices of the industry and
in material compliance with all applicable contracts and agreements and in compliance
in all material respects with all Governmental Requirements.

To the extent the
Borrower is not the operator of any Property, the Borrower shall use reasonable
efforts to cause the operator to comply with this Section 8.06.

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Section 8.07.                             Insurance.  The Borrower will, and will cause each
Subsidiary to, maintain, with financially sound and reputable insurance
companies, insurance in such amounts and against such risks as are customarily
maintained by companies engaged in the same or similar businesses operating in
the same or similar locations.  The loss
payable clauses or provisions in said insurance policy or policies insuring any
of the collateral for the Loans shall be endorsed in favor of and made payable
to the Administrative Agent as its interests may appear and such policies shall
name the Administrative Agent and the Lenders as “additional insureds” and
provide that the insurer will endeavor to give at least 30 days prior notice of
any cancellation to the Administrative Agent.

Section 8.08.                             Books
and Records; Inspection Rights.  The
Borrower will, and will cause each Subsidiary to, keep proper books of record
and account in which full, true and correct entries are made of all dealings
and transactions in relation to its business and activities.  The Borrower will, and will cause each
Subsidiary to, permit any representatives designated by the Administrative
Agent or any Lender, upon reasonable prior notice, to visit and inspect its
Properties, to examine and make extracts from its books and records, and to
discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested.

Section 8.09.                             Compliance
with Laws.  The Borrower will, and
will cause each Subsidiary to, comply with all laws, rules, regulations and
orders of any Governmental Authority applicable to it or its Property, except
where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

Section 8.10.                             Environmental
Matters.

(a)                                  The Borrower shall at
its sole expense:  (i) comply, and shall
cause its Properties and operations and each Subsidiary and each Subsidiary’s
Properties and operations to comply, with all applicable Environmental Laws,
the breach of which could be reasonably expected to have a Material Adverse
Effect; (ii) not dispose of or otherwise release, and shall cause each
Subsidiary not to dispose of or otherwise release, any oil, oil and gas waste,
hazardous substance, or solid waste on, under, about or from any of the
Borrower’s or its Subsidiaries’ Properties or any other Property to the extent
caused by the Borrower’s or any of its Subsidiaries’ operations except in
compliance with applicable Environmental Laws, the disposal or release of which
could reasonably be expected to have a Material Adverse Effect; (iii) timely
obtain or file, and shall cause each Subsidiary to timely obtain or file, all
notices, permits, licenses, exemptions, approvals, registrations or other
authorizations, if any, required under applicable Environmental Laws to be
obtained or filed in connection with the operation or use of the Borrower’s or
its Subsidiaries’ Properties, which failure to obtain or file could reasonably
be expected to have a Material Adverse Effect; (iv) promptly commence and
diligently prosecute to completion, and shall cause each Subsidiary to promptly
commence and diligently prosecute to completion, any assessment, evaluation,
investigation, monitoring, containment, cleanup, removal, repair, restoration,
remediation or other remedial obligations (collectively, the “Remedial Work”)
in the event any Remedial Work is required or reasonably necessary under
applicable Environmental Laws because of or in connection with the actual or
suspected past, present or future disposal or other release of any oil, oil and
gas waste, hazardous

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substance or solid waste on, under, about or from any of the Borrower’s
or its Subsidiaries’ Properties, which failure to commence and diligently prosecute
to completion could reasonably be expected to have a Material Adverse Effect;
and (v) establish and implement, and shall cause each Subsidiary to
establish and implement, such procedures as may be necessary to continuously
determine and assure that the Borrower’s and its Subsidiaries’ obligations
under this Section 8.10(a) are timely and fully satisfied, which
failure to establish and implement could reasonably be expected to have a
Material Adverse Effect.

(b)                                 The Borrower will
promptly, but in no event later than five days of the occurrence of a
triggering event, notify the Administrative Agent and the Lenders in writing of
any threatened action, investigation or inquiry by any Governmental Authority
or any threatened demand or lawsuit by any landowner or other third party
against the Borrower or its Subsidiaries or their Properties of which the
Borrower has knowledge in connection with any Environmental Laws (excluding
routine testing and corrective action) if the Borrower reasonably anticipates that
such action will result in liability (whether individually or in the aggregate)
in excess of $500,000, not fully covered by insurance, subject to normal
deductibles.

(c)                                  The Borrower will,
and will cause each Subsidiary to, provide environmental audits and tests in
accordance with American Society of Testing Materials standards upon request by
the Administrative Agent and the Lenders in connection with any future
acquisitions of Oil and Gas Properties or other Properties.

Section 8.11.                             Further
Assurances.

(a)                                  The Borrower at its
sole expense will, and will cause each Subsidiary to, promptly execute and
deliver to the Administrative Agent all such other documents, agreements and
instruments reasonably requested by the Administrative Agent to comply with, cure
any defects or accomplish the conditions precedent, covenants and agreements of
the Borrower or any Subsidiary, as the case may be, in the Loan Documents,
including the Notes, or to further evidence and more fully describe the
collateral intended as security for the Indebtedness, or to correct any
omissions in this Agreement or the Security Instruments, or to state more fully
the obligations secured therein, or to perfect, protect or preserve any Liens
created pursuant to this Agreement or any of the Security Instruments or the
priority thereof, or to make any recordings, file any notices or obtain any
consents, all as may be reasonably necessary or appropriate, in the sole
discretion of the Administrative Agent, in connection therewith.

(b)                                 The Borrower hereby
authorizes the Administrative Agent to file one or more financing or
continuation statements, and amendments thereto, relative to all or any part of
the Mortgaged Property or other Property covered by the Lien of the Security
Instruments without the signature of the Borrower or any other Guarantor where
permitted by law.  A carbon, photographic
or other reproduction of the Security Instruments or any financing statement
covering the Mortgaged Property such other Property or any part thereof shall
be sufficient as a financing statement where permitted by law.

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Section 8.12.                             Reserve
Reports.

(a)                                  On or before March 1st and September 1st of
each year, commencing March 1, 2007, the Borrower shall furnish to the
Administrative Agent and the Lenders a Reserve Report evaluating the Oil and
Gas Properties of the Borrower and its Subsidiaries as of the immediately
preceding December 31st and June 30th. 
The Reserve Report as of December 31 of each year shall be prepared by
one or more Approved Petroleum Engineers, and the June 30 Reserve Report of
each year shall be prepared by or under the supervision of the chief operating
officer of the Borrower who shall certify such Reserve Report to be true and
accurate and to have been prepared in accordance with the procedures used in
the immediately preceding June 30 Reserve Report.

(b)                                 In the event of an
Interim Redetermination, the Borrower shall furnish to the Administrative Agent
and the Lenders a Reserve Report prepared by or under the supervision of the
chief operating officer of the Borrower who shall certify such Reserve Report
to be true and accurate and to have been prepared in accordance with the
procedures used in the immediately preceding December 31 Reserve Report.  For any Interim Redetermination requested by
the Administrative Agent or the Borrower pursuant to Section 2.07(b),
the Borrower shall provide such Reserve Report with an “as of” date as required
by the Administrative Agent as soon as possible, but in any event no later than
thirty (30) days following the receipt of such request.

(c)                                  With the delivery of
each Reserve Report, the Borrower shall provide to the Administrative Agent and
the Lenders a certificate from a Responsible Officer certifying that:  (i) the information contained in the Reserve
Report and any other information delivered in connection therewith is true and
correct in all material respects, (ii) the Borrower or its Subsidiaries own
good and defensible title to the Oil and Gas Properties evaluated in such
Reserve Report and such Properties are free of all Liens except for Liens
permitted by Section 9.03, (iii) except as set forth on an
exhibit to the certificate, on a net basis there are no Material Gas
Imbalances, take or pay or other prepayments in excess of the volume specified
in Section 7.19 with respect to its Oil and Gas Properties
evaluated in such Reserve Report which would require the Borrower or any
Subsidiary to deliver Hydrocarbons either generally or produced from such Oil
and Gas Properties at some future time without then or thereafter receiving
full payment therefor, (iv) none of their Oil and Gas Properties have been sold
since the date of the last Borrowing Base determination except as set forth on
an exhibit to the certificate, which certificate shall list all of its Oil and
Gas Properties sold and in such detail as reasonably required by the
Administrative Agent, (v) attached to the certificate is a list of all
marketing agreements entered into subsequent to the later of the date hereof or
the most recently delivered Reserve Report which the Borrower could reasonably
be expected to have been obligated to list on Schedule 7.20 had such
agreement been in effect on the date hereof and (vi) attached thereto is a
schedule of the Oil and Gas Properties evaluated by such Reserve Report that
are Mortgaged Properties and demonstrating the percentage of the total value of
the Oil and Gas Properties that the value of such Mortgaged Properties
represent in compliance with Section 8.14(a).

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Section 8.13.                             Title
Information.

(a)                                  On or before the
delivery to the Administrative Agent and the Lenders of each Reserve Report
required by Section 8.12(a), the Borrower will deliver title
information in form and substance acceptable to the Administrative Agent
covering enough of the Oil and Gas Properties evaluated by such Reserve Report
that were not included in the immediately preceding Reserve Report, so that the
Administrative Agent shall have received together with title information
previously delivered to the Administrative Agent, satisfactory title
information on at least 80% of the total value of the Oil and Gas Properties
evaluated by such Reserve Report.

(b)                                 If the Borrower has
provided title information for additional Properties under Section 8.13(a),
the Borrower shall, within 60 days of notice from the Administrative Agent that
title defects or exceptions exist with respect to such additional Properties,
either (i) cure any such title defects or exceptions (including defects or
exceptions as to priority) which are not permitted by Section 9.03
raised by such information, (ii) substitute acceptable Mortgaged
Properties with no title defects or exceptions except for Excepted Liens (other
than Excepted Liens described in clauses (e), (g) and (h) of such definition)
having an equivalent value or (iii) deliver title information in form and
substance acceptable to the Administrative Agent so that the Administrative
Agent shall have received, together with title information previously delivered
to the Administrative Agent, satisfactory title information on at least 80% of
the value of the Oil and Gas Properties evaluated by such Reserve Report.

(c)                                  If the Borrower is
unable to cure any title defect requested by the Administrative Agent or the
Lenders to be cured within the 60-day period or the Borrower does not comply
with the requirements to provide acceptable title information covering 80% of
the value of the Oil and Gas Properties evaluated in the most recent Reserve
Report, such default shall not be a Default, but instead the Administrative Agent
and/or the Majority Lenders shall have the right to exercise the following
remedy in their sole discretion from time to time, and any failure to so
exercise this remedy at any time shall not be a waiver as to future exercise of
the remedy by the Administrative Agent or the Lenders.  To the extent that the Administrative Agent
or the Majority Lenders are not satisfied with title to any Mortgaged Property
after the 60-day period has elapsed, such unacceptable Mortgaged Property shall
not count towards the 80% requirement, and the Administrative Agent may send a
notice to the Borrower and the Lenders that the then outstanding Borrowing Base
shall be reduced by an amount as determined by the Majority Lenders to cause
the Borrower to be in compliance with the requirement to provide acceptable
title information on 80% of the value of the Oil and Gas Properties.  This new Borrowing Base shall become
effective immediately after receipt of such notice.

Section 8.14.                             Additional
Collateral; Additional Guarantors.

(a)                                  In connection with
each redetermination of the Borrowing Base, the Borrower shall review the
Reserve Report and the list of current Mortgaged Properties (as described in Section 8.12(c)(vi))
to ascertain whether the Mortgaged Properties represent at least 90% of the
total value of the Oil and Gas Properties evaluated in the most recently
completed Reserve Report after giving effect to exploration and production
activities, acquisitions, dispositions and production.  In the event that the Mortgaged Properties do
not represent at least

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90% of such total value, then the Borrower shall, and shall cause its
Subsidiaries to, grant, within thirty (30) days of delivery of the certificate
required under Section 8.12(c), to the Administrative Agent as
security for the Indebtedness a first-priority Lien interest (provided that
Excepted Liens of the type described in clauses (a) to (d) and (f) of the
definition thereof may exist, but subject to the provisos at the end of such
definition) on additional Oil and Gas Properties not already subject to a Lien
of the Security Instruments such that after giving effect thereto, the
Mortgaged Properties will represent at least 90% of such total value.  All such Liens will be created and perfected
by and in accordance with the provisions of Mortgages, deeds of trust, security
agreements and financing statements or other Security Instruments, all in form
and substance reasonably satisfactory to the Administrative Agent and in
sufficient executed (and acknowledged where necessary or appropriate)
counterparts for recording purposes.  In
order to comply with the foregoing, if any Subsidiary places a Lien on its Oil
and Gas Properties and such Subsidiary is not a Guarantor, then it shall become
a Guarantor and comply with Section 8.14(b).

(b)                                 The Borrower shall
promptly cause each Subsidiary to guarantee the Indebtedness pursuant to a
Guaranty Agreement.  In connection with
any such guaranty, the Borrower shall, or shall cause such Subsidiary to, (A) pledge
all of the Equity Interests of such new Subsidiary pursuant to a Subsidiary
Pledge Agreement (including, without limitation, delivery of original stock
certificates, if any, evidencing the Equity Interests of such Subsidiary,
together with an appropriate undated stock powers for each certificate duly
executed in blank by the registered owner thereof) and (B) execute and
deliver such other additional closing documents, certificates and legal
opinions as shall reasonably be requested by the Administrative Agent.

(c)                                  If the Borrower elects
to provide additional Mortgaged Properties in lieu of making any mandatory
prepayment pursuant to Section 3.04(c), then the Borrower shall, or
shall cause its Subsidiaries to, grant to the Administrative Agent as security
for the Indebtedness a first-priority Lien interest (subject only to Excepted
Liens) on additional Oil and Gas Properties not already subject to a Lien of
the Security Instruments.  All such Liens
will be created and perfected by and in accordance with the provisions of
Mortgages, deeds of trust, security agreements and financing statements or
other Security Instruments, all in form and substance satisfactory to the
Administrative Agent and in sufficient executed (and acknowledged where
necessary or appropriate) counterparts for recording purposes.  In order to comply with the foregoing, if any
Subsidiary places such a Lien on its Oil and Gas Properties and such Subsidiary
is not a Guarantor, then it shall become a Guarantor and comply with Section 8.14(b).

(d)                                 In the event that the
Borrower or any Domestic Subsidiary becomes the owner of a Foreign Subsidiary
which has total assets in excess of $1,000,000, then the Borrower shall
promptly, or shall cause such Domestic Subsidiary to promptly, guarantee the
Indebtedness pursuant to the Guaranty Agreement.  In connection with any such guaranty, the
Borrower shall, or shall cause such Domestic Subsidiary to, (i) execute
and deliver a supplement to the Guaranty Agreement, (ii) pledge 65% of all
the Equity Interests of such Foreign Subsidiary (including, without limitation,
delivery of original stock certificates evidencing such Equity Interests of
such Foreign Subsidiary, together with appropriate stock powers for each
certificate duly executed in blank by the registered owner thereof) and (iii) execute
and deliver such other additional closing

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documents, certificates and legal opinions as shall reasonably be
requested by the Administrative Agent.

Section 8.15.                             ERISA
Compliance.  The Borrower will
promptly furnish and will cause the Subsidiaries and any ERISA Affiliate to
promptly furnish to the Administrative Agent (i) promptly after the filing
thereof with the United States Secretary of Labor, the Internal Revenue Service
or the PBGC, copies of each annual and other report with respect to each Plan
or any trust created thereunder, (ii) immediately upon becoming aware of the
occurrence of any ERISA Event or of any “prohibited transaction,” as described
in section 406 of ERISA or in section 4975 of the Code, in connection with any
Plan or any trust created thereunder, a written notice signed by the President
or the principal Financial Officer, the Subsidiary or the ERISA Affiliate, as
the case may be, specifying the nature thereof, what action the Borrower, the
Subsidiary or the ERISA Affiliate is taking or proposes to take with respect
thereto, and, when known, any action taken or proposed by the Internal Revenue
Service, the Department of Labor or the PBGC with respect thereto, and (iii)
immediately upon receipt thereof, copies of any notice of the PBGC’s intention
to terminate or to have a trustee appointed to administer any Plan.  With respect to each Plan (other than a
Multiemployer Plan), the Borrower will, and will cause each Subsidiary and
ERISA Affiliate to, (i) satisfy in full and in a timely manner, without
incurring any late payment or underpayment charge or penalty and without giving
rise to any lien, all of the contribution and funding requirements of section
412 of the Code (determined without regard to subsections (d), (e), (f) and (k)
thereof) and of section 302 of ERISA (determined without regard to sections
303, 304 and 306 of ERISA), and (ii) pay, or cause to be paid, to the PBGC in a
timely manner, without incurring any late payment or underpayment charge or
penalty, all premiums required pursuant to sections 4006 and 4007 of ERISA.

Section 8.16.                             Swap
Agreements and Put Option Contracts. 
On or before January 8, 2007, the Borrower shall provide, or cause
one or more of its Subsidiaries to provide, and thereafter the Borrower shall
maintain in effect, and shall cause its Subsidiaries to maintain in effect, a
commodity price hedge position establishing minimum fixed prices acceptable to
the Administrative Agent on a volume of Hydrocarbons set forth on Schedule
8.16 which is equal to approximately 85% of the projected production from
proved, developed, producing Oil and Gas Properties of the Borrower and its
Subsidiaries for July through December 2007 and the years 2008, 2009, 2010 and
2011, through December 31, 2011, with one or more Approved
Counterparties.  On or before January 8,
2007, the Borrower shall provide, or cause one or more of its Subsidiaries to
provide, and thereafter the Borrower shall maintain in effect, and cause its
Subsidiaries to maintain in effect, a production put option contract for the
years 2007, 2008 and 2009 at the production volumes or MMBtu equivalents and
the minimum price set forth on Schedule 8.16, with one or more Approved
Counterparties.  The Majority Lenders may
direct the Administrative Agent to cause an Interim Redetermination of the
Borrowing Base in the event the Swap Agreements entered into pursuant to this Section
8.16 are not hedged at prices sufficient to support, in the opinion of the
Majority Lenders, the current Borrowing Base.

Section 8.17.                             Termination
of Scheduled Swap Agreements.  Within
ten (10) days from the date of this Agreement, the Borrower shall cause the
termination of all Swap Agreements listed on Schedule 7.20, and the
Borrower shall pay or cause to be paid to the counterparties

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thereto to the Swap Termination Values owed by it, if any, under each
of such Swap Agreements.

Section 8.18.                             Administrative
Agent as Principal Depository.  The
Borrower shall maintain the Administrative Agent as its principal depository
bank, including for the maintenance of business, cash management, operating and
administrative deposit accounts

Section 8.19.                             Chief
Financial Officer.  The Borrower
shall employ an individual to hold the position of chief financial officer, and
the Borrower shall keep such position filled through the Maturity Date.

ARTICLE
IX

Negative Covenants

Until the Commitments have expired or terminated and
the principal of and interest on each Loan and all fees payable hereunder and
all other amounts payable under the Loan Documents have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements shall
have been reimbursed, the Borrower covenants and agrees with the Lenders that:

Section 9.01.                             Financial
Covenants.

(a)                                  Interest Coverage
Ratio.  The Borrower will not, as of
the last day of any fiscal quarter beginning with the fiscal quarter ending
March 31, 2007, permit its ratio of EBITDA to Interest Expense (i) for the
one fiscal quarter period ending March 31, 2007 times four, (ii) for the two
consecutive fiscal quarter period ending June 20, 2007 times two, (iii)
for the three consecutive fiscal quarter period ending September 30, 2007
times 4/3 or (iv) for each four consecutive fiscal quarter period ending on and
after December 31, 2007, to be less than 2.5 to 1.0.

(b)                                 Ratio of Total Debt
to EBITDA.  The Borrower will not, as
of the last day of any fiscal quarter beginning with the fiscal quarter ending
March 31, 2007, permit its ratio of Total Debt as of such time to EBITDA
(i) for the one fiscal quarter period ending March 31, 2007 times
four, (ii) for the two fiscal quarter period ending June 30, 2007 times
two, (iii) for the three consecutive fiscal quarter period ending
September 30, 2007 times 4/3, or (iv) for each four consecutive
fiscal quarter period ending on and after December 31, 2007, to be greater
than 4.0 to 1.0.

(c)                                  Current Ratio.  The Borrower will not permit, as of the last
day of any fiscal quarter, its ratio of (i) consolidated current assets
(including the unused amount of the total Commitments, but excluding non-cash
assets under FAS 133) to (ii) consolidated current liabilities (excluding
non-cash obligations under FAS 133 and current maturities under this Agreement)
to be less than 1.0 to 1.0.

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Section 9.02.                             Debt.  The Borrower will not, and will not permit
any Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

(a)                                  the Notes or other
Indebtedness arising under the Loan Documents or any guaranty of or suretyship
arrangement for the Notes or other Indebtedness arising under the Loan
Documents.

(b)                                 accounts payable and
accrued expenses, liabilities or other obligations to pay the deferred purchase
price of Property or services, from time to time incurred in the ordinary
course of business which are not greater than sixty (60) days past the date of
invoice or delinquent or which are being contested in good faith by appropriate
action and for which adequate reserves have been maintained in accordance with
GAAP.

(c)                                  Debt under Capital
Leases not to exceed $1,000,000.

(d)                                 Debt associated with
bonds or surety obligations required by Governmental Requirements in connection
with the operation of the Oil and Gas Properties.

(e)                                  intercompany Debt
between the Borrower and any Subsidiary or between Subsidiaries to the extent
permitted by Section 9.05(g); provided that such Debt is not held,
assigned, transferred, negotiated or pledged to any Person other than the
Borrower or one of its Wholly-Owned Subsidiaries, and, provided further, that
any such Debt owed by either the Borrower or a Guarantor shall be subordinated
to the Indebtedness on terms satisfactory to the Administrative Agent.

(f)                                    endorsements of
negotiable instruments for collection in the ordinary course of business.

(g)                                 other Debt, including
purchase-money obligations, not to exceed $1,000,000 in the aggregate at any
one time outstanding.

(h)                                 Debt arising under
Swap Agreements permitted under Section 9.18 hereof.

Section 9.03.                             Liens.  The
Borrower will not, and will not permit any Subsidiary to, create, incur, assume
or permit to exist any Lien on any of its Properties (now owned or hereafter
acquired), except:

(a)                                  Liens securing the
payment of any Indebtedness.

(b)                                 Excepted Liens.

(c)                                  Liens securing
Capital Leases permitted by Section 9.02(c) but only on the
Property under lease.

(d)                                 Liens on any Property of the Borrower and its
Subsidiaries existing on the date hereof and set forth on Schedule 9.03;
provided that such Liens shall secure only those obligations which they secure
on the date hereof.

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(e)                                  Liens on Property not
constituting collateral for the Indebtedness and not otherwise permitted by the
foregoing clauses of this Section 9.03; provided that the aggregate
principal or face amount of all Debt secured under this Section 9.03(e)
shall not exceed $2,000,000 at any time.

Section 9.04.                             Dividends,
Distributions and Redemptions.   The
Borrower will not, and will not permit any of its Subsidiaries to, declare or
make, or agree to pay or make, directly or indirectly, any Restricted Payment,
return any capital to its stockholders, members or partners or make any
distribution of its Property to its Equity Interest holders, except
(i) the Borrower may pay a one time cash distribution to Majeed S.
Nami promptly following the Effective Date consisting of up to $14,000,000 of
proceeds of the Loan so long as after giving effect thereto (v) no Default
has occurred and there is an unused amount of Commitments of at least
$5,000,000, (w) the Debt under the Existing Credit Agreements has been
repaid in full, (x) all amounts required to be paid pursuant to the
provisions of Section 6.01(a) have been paid in full, (y) all Swap
Agreements and put option contracts required to be in effect pursuant to Section
8.16 hereof shall be in effect, and (z) all Swap Agreements to be
terminated pursuant to Section 8.17 hereof have terminated and all
amounts owed by NRC to the counterparties thereto have been paid in full;
(ii) the Borrower may declare and pay cash distributions to its Equity
Interest holders to permit such holders to pay federal and state taxes due with
respect to the income of the Borrower; (iii) the Borrower may declare and pay
dividends with respect to its Equity Interests payable solely in additional
shares of its Equity Interests (other than Disqualified Capital Stock); (iv) Subsidiaries
may declare and pay dividends ratably with respect to their Equity Interests;
(v) the Borrower may make Restricted Payments pursuant to and in accordance
with stock option plans or other benefit plans for management or employees of
the Borrower and its Subsidiaries; and (vi) after the occurrence of an
Equity Event consisting of an initial public offering, the Borrower may make
Restricted Payments to its Equity Interest holders provided that (x) no
Default has occurred and is continuing or would result from the making of such
Restricted Payment, (y) after giving effect to the application of the
proceeds of such initial public offering, the Revolving Credit Exposure is less
than 50% of the Borrowing Base as of such date, and (z) after giving effect
to such Restricted Payment, the Aggregate Maximum Credit Amounts exceed the
Revolving Credit Exposure by an amount equal to or greater than 20% of the
Aggregate Maximum Credit Amounts.

Section 9.05.                             Investments,
Loans and Advances.  The Borrower
will not, and will not permit any Subsidiary to, make or permit to remain
outstanding any Investments in or to any Person, except that the foregoing
restriction shall not apply to:

(a)                                  Investments reflected
in the Financial Statements or which are disclosed to the Lenders in Schedule
9.05.

(b)                                 accounts receivable
arising in the ordinary course of business.

(c)                                  direct obligations of
the United States or any agency thereof, or obligations guaranteed by the
United States or any agency thereof, in each case maturing within one year from
the date of creation thereof.

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(d)                                 commercial paper
maturing within one year from the date of creation thereof rated in the highest
grade by S&P or Moody’s.

(e)                                  deposits maturing
within one year from the date of creation thereof with, including certificates
of deposit issued by, any Lender or any office located in the United States of
any other bank or trust company which is organized under the laws of the United
States or any state thereof, has capital, surplus and undivided profits
aggregating at least $100,000,000 (as of the date of such bank or trust company’s
most recent financial reports) and has a short term deposit rating of no lower
than A2 or P2, as such rating is set forth from time to time, by S&P or
Moody’s, respectively or, in the case of any Foreign Subsidiary, a bank organized
in a jurisdiction in which the Foreign Subsidiary conducts operations having
assets in excess of $500,000,000 (or its equivalent in another currency).

(f)                                    deposits in money
market funds investing exclusively in Investments described in Section 9.05(c),
Section 9.05(d) or Section 9.05(e).

(g)                                 Investments (i) made
by the Borrower in or to the Guarantors, (ii) made by any Subsidiary in or
to the Borrower or any Guarantor and (iii) made by the Borrower or any
Subsidiary in or to all other Domestic Subsidiaries which are not Guarantors in
an aggregate amount at any one time outstanding not to exceed $1,000,000.

(h)                                 Investments
(including, without limitation, capital contributions) in general or limited
partnerships or other types of entities (each a “venture”) entered into
by the Borrower or a Subsidiary with others in the ordinary course of business;
provided that (i) any such venture is engaged exclusively in oil and gas
exploration, development, production, processing and related activities,
including transportation, (ii) the interest in such venture is acquired in the
ordinary course of business and on fair and reasonable terms and (iii) such
venture interests acquired and capital contributions made (valued as of the
date such interest was acquired or the contribution made) do not exceed, in the
aggregate at any time outstanding an amount equal to $1,000,000.

(i)                                     Investments made
by the Borrower or a Guarantor in direct ownership interests in additional Oil
and Gas Properties and gas gathering systems related thereto or related to
farm-out, farm-in, joint operating, joint venture or area of mutual interest
agreements, gathering systems, pipelines or other similar arrangements which
are usual and customary in the oil and gas exploration and production business
located within the geographic boundaries of the United States of America,
provided that (A) the Borrower shall be in compliance, on a pro forma basis
after giving effect to any such Investment, with the financial covenants set
forth in Section 9.01 recomputed as at
the last day of the most recently ended fiscal quarter of the Borrower for
which financial statements are available, and (B) no Default shall have
occurred and be continuing or would result therefrom.

(j)                                     Investments in
stock, obligations or securities received in settlement of debts arising from
Investments permitted under this Section 9.05 owing to the Borrower
or any Subsidiary as a result of a bankruptcy or other insolvency proceeding of
the obligor in respect of such debts or upon the enforcement of any Lien in
favor of the Borrower or any of its Subsidiaries; provided that the Borrower
shall give the Administrative Agent prompt written

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notice in the event that the aggregate amount of all Investments held
at any one time under this Section 9.05(k) exceeds $1,000,000.

(k)                                  other Investments not
to exceed $1,000,000 in the aggregate at any time.

Section 9.06.                             Nature
of Business; International Operations. 
The Borrower will not, and will not permit any Subsidiary to, allow any
material change to be made in the character of its business as currently
conducted by it and business activities reasonably incidental thereto as an
independent oil and gas exploration and production company with operations in
the continental United States.  From and
after the date hereof, the Borrower and its Subsidiaries will not acquire or
make any other expenditure (whether such expenditure is capital, operating or
otherwise) in or related to, any Oil and Gas Properties not located within the
geographical boundaries of the United States.

Section 9.07.                             Limitation
on Leases.  The Borrower will not,
and will not permit any Subsidiary to, create, incur, assume or suffer to exist
any obligation for the payment of rent or hire of Property of any kind
whatsoever (real or personal but excluding Capital Leases and leases of
Hydrocarbon Interests), under leases or lease agreements which would cause the
aggregate amount of all payments made by the Borrower and the Subsidiaries
pursuant to all such leases or lease agreements, including, without limitation,
any residual payments at the end of any lease, to exceed $2,000,000 in any
period of twelve consecutive calendar months during the life of such leases.

Section 9.08.                             Proceeds
of Notes.  The Borrower will not
permit the proceeds of the Notes to be used for any purpose other than those
permitted by Section 7.21. 
Neither the Borrower nor any Person acting on behalf of the Borrower has
taken or will take any action which might cause any of the Loan Documents to
violate Regulations T, U or X or any other regulation of the Board or to
violate Section 7 of the Securities Exchange Act of 1934 or any rule or
regulation thereunder, in each case as now in effect or as the same may
hereinafter be in effect.  If requested
by the Administrative Agent, the Borrower will furnish to the Administrative
Agent and each Lender a statement to the foregoing effect in conformity with
the requirements of FR Form U-1 or such other form referred to in Regulation U,
Regulation T or Regulation X of the Board, as the case may be.

Section 9.09.                             ERISA
Compliance.  The Borrower will not,
and will not permit any Subsidiary to, at any time:

(a)                                  engage in, or permit
any ERISA Affiliate to engage in, any transaction in connection with which the
Borrower, a Subsidiary or any ERISA Affiliate could be subjected to either a
civil penalty assessed pursuant to subsections (c), (i) or (l) of section 502
of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code.

(b)                                 terminate, or permit
any ERISA Affiliate to terminate, any Plan in a manner, or take any other
action with respect to any Plan, which could result in any liability of the
Borrower, a Subsidiary or any ERISA Affiliate to the PBGC.

 79
 

(c)                                  fail to make, or
permit any ERISA Affiliate to fail to make, full payment when due of all
amounts which, under the provisions of any Plan, agreement relating thereto or
applicable law, the Borrower, a Subsidiary or any ERISA Affiliate is required
to pay as contribu­tions thereto.

(d)                                 permit to exist, or
allow any ERISA Affiliate to permit to exist, any accumulated funding
deficiency within the meaning of section 302 of ERISA or section 412 of the
Code, whether or not waived, with respect to any Plan.

(e)                                  permit, or allow any
ERISA Affiliate to permit, the actuarial present value of the benefit
liabilities under any Plan maintained by the Borrower, a Subsidiary or any
ERISA Affiliate which is regulated under Title IV of ERISA to exceed the
current value of the assets (computed on a plan termination basis in accordance
with Title IV of ERISA) of such Plan allocable to such benefit
liabilities.  The term “actuarial present
value of the benefit liabilities” shall have the meaning specified in section
4041 of ERISA.

(f)                                    contribute to or
assume an obligation to contribute to, or permit any ERISA Affiliate to
contribute to or assume an obligation to contribute to, any Multiemployer Plan.

(g)                                 acquire, or permit any
ERISA Affiliate to acquire, an interest in any Person that causes such Person
to become an ERISA Affiliate with respect to the Borrower or a Subsidiary or
with respect to any ERISA Affiliate of the Borrower or a Subsidiary if such
Person sponsors, maintains or contributes to, or at any time in the six-year
period preceding such acquisition has sponsored, maintained, or contributed to,
(1) any Multiemployer Plan, or (2) any other Plan that is subject to
Title IV of ERISA under which the actuarial present value of the benefit
liabilities under such Plan exceeds the current value of the assets (computed
on a plan termination basis in accordance with Title IV of ERISA) of such
Plan allocable to such benefit liabilities.

(h)                                 incur, or permit any
ERISA Affiliate to incur, a liability to or on account of a Plan under sections
515, 4062, 4063, 4064, 4201 or 4204 of ERISA.

(i)                                     contribute to or
assume an obligation to contribute to, or permit any ERISA Affiliate to
contribute to or assume an obligation to contribute to, any employee welfare
benefit plan, as defined in section 3(1) of ERISA, including, without
limitation, any such plan maintained to provide benefits to former employees of
such entities, that may not be terminated by such entities in their sole
discretion at any time without any material liability.

(j)                                     amend, or permit
any ERISA Affiliate to amend, a Plan resulting in an increase in current
liability such that the Borrower, a Subsidiary or any ERISA Affiliate is
required to provide security to such Plan under section 401(a)(29) of the Code.

Section 9.10.                             Sale
or Discount of Receivables.  Except
for receivables obtained by the Borrower or any Subsidiary out of the ordinary
course of business or the settlement of joint interest billing accounts in the
ordinary course of business or discounts granted to settle collection of
accounts receivable or the sale of defaulted accounts arising in the ordinary
course

 80
 

of business in connection with the compromise or collection thereof and
not in connection with any financing transaction, the Borrower will not, and
will not permit any Subsidiary to, discount or sell (with or without recourse)
any of its notes receivable or accounts receivable.

Section 9.11.                             Mergers,
Etc.  Neither the Borrower not any of
its Subsidiaries will merge into or with or consolidate with any other Person,
or sell, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its Property to any other
Person, except that any Wholly-Owned Subsidiary may merge with any other
Wholly-Owned Subsidiary and the Borrower may merge with any Wholly-Owned
Subsidiary so long as the Borrower is the survivor.

Section 9.12.                             Sale
of Properties.  The Borrower will
not, and will not permit any Subsidiary to, sell, assign, farm-out, convey or
otherwise transfer any Property except for (a) the sale of Hydrocarbons in the
ordinary course of business; (b) farmouts of undeveloped acreage and
assignments in connection with such farmouts; (c) the sale or transfer of
equipment that is no longer necessary for the business of the Borrower or such
Subsidiary or is replaced by equipment of at least comparable value and use;
(d) transfers described in Section 2.09(c) hereof; and
(e) sales and other dispositions of Property not regulated by Sections 9.01(a)
through 9.01(d) having a fair market value not in excess of 3% of the
Borrowing Base (as determined by the Administrative Agent), individually or in
the aggregate during any 12-month period.

Section 9.13.                             Environmental
Matters.  The Borrower will not, and
will not permit any Subsidiary to, cause or permit any of its Property which it
or a Subsidiary operates to be in violation of, or do anything or permit
anything to be done which will subject any such Property to any Remedial Work
under any Environmental Laws, assuming disclosure to the applicable
Governmental Authority of all relevant facts, conditions and circumstances, if
any, pertaining to such Property where such violations or remedial obligations
could reasonably be expected to have a Material Adverse Effect.  The
Borrower will use its reasonable efforts to cause the operator of Properties
which the Borrower or any Subsidiary does not operate to comply with the terms
and provisions of this Section 9.13.

Section 9.14.                             Transactions
with Affiliates.  The Borrower will
not, and will not permit any Subsidiary to, enter into any transaction,
including, without limitation, any purchase, sale, lease or exchange of
Property or the rendering of any service, with any Affiliate (other than the
Guarantors and Wholly-Owned Subsidiaries of the Borrower) unless such
transactions are otherwise permitted under this Agreement and are upon fair and
reasonable terms no less favorable to it than it would obtain in a comparable
arm’s length transaction with a Person not an Affiliate.

Section 9.15.                             Subsidiaries.  The Borrower will not, and will not permit
any Subsidiary to, create or acquire any additional Subsidiary unless the
Borrower gives written notice to the Administrative Agent of such creation or
acquisition and complies with Section 8.14(b) and Section 8.14(c).  The Borrower shall not, and shall not permit
any Subsidiary to, sell, assign or otherwise dispose of any Equity Interests in
any Subsidiary except in compliance with Section 9.12(d).  Neither the Borrower nor any Subsidiary shall
have any Foreign Subsidiaries.

 81
 

Section 9.16.                             Negative
Pledge Agreements; Dividend Restrictions. 
The Borrower will not, and will not permit any Subsidiary to, create,
incur, assume or suffer to exist any contract, agreement or understanding
(other than this Agreement, the Security Instruments or Capital Leases creating
Liens permitted by Section 9.03(c)) which in any way prohibits or
restricts the granting, conveying, creation or imposition of any Lien on any of
its Property in favor of the Administrative Agent and the Lenders or restricts
any Subsidiary from paying dividends or making distributions to the Borrower or
any Guarantor, or which requires the consent of or notice to other Persons in
connection therewith.

Section 9.17.                             Gas
Imbalances, Take-or-Pay or Other Prepayments.  The Borrower will not, and will not permit
any Subsidiary to, (a) incur, become or remain liable for, any Material Gas
Imbalance, or (b) allow take-or-pay or other prepayments with respect to the
Oil and Gas Properties of the Borrower or any Subsidiary that would require the
Borrower or such Subsidiary to deliver Hydrocarbons at some future time without
then or thereafter receiving full payment therefor.

Section 9.18.                             Swap
Agreements.  The Borrower will not,
and will not permit any Subsidiary to, enter into any Swap Agreements with any
Person other than (a) Swap Agreements in respect of commodities (i) with an
Approved Counterparty and (ii) the notional volumes for which (when aggregated
with other commodity Swap Agreements then in effect other than basis
differential swaps on volumes already hedged pursuant to other Swap Agreements)
do not exceed, as of the date such Swap Agreement is executed, 95% of the
reasonably anticipated projected production from proved, developed, producing
Oil and Gas Properties for each month during the period during which such Swap
Agreement is in effect for each of crude oil and natural gas, calculated
separately and (b) Swap Agreements in respect of interest rates with an
Approved Counterparty with the purpose and effect of fixing interest rates on a
principal amount of indebtedness of the Borrower that is accruing interest at a
variable rate, provided that (i) the aggregate notional amount of such
contracts never exceeds 75% of the anticipated outstanding principal balance of
the indebtedness to be hedged by such contracts or an average of such principal
balances calculated by using a generally accepted method of matching interest
swap contracts to declining principal balances, and (ii) the floating rate
index of each such contract generally matches the index used to determine the
floating rates of interest on the corresponding indebtedness to be hedged by
such contract, and (c) Swap Agreements required by Section 8.16.  In no event shall any Swap Agreement contain
any requirement, agreement or covenant for the Borrower or any Subsidiary to
post collateral (other than Letters of Credit) or margin to secure their
obligations under such Swap Agreement or to cover market exposures.

Section 9.19.                             Marketing
Activities.  The Borrower will not,
and will not permit any of its Subsidiaries to, engage in marketing activities
for any Hydrocarbons or enter into any contracts related thereto other than (i)
contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be
produced from their proved Oil and Gas Properties during the period of such
contract, (ii) contracts for the sale of Hydrocarbons scheduled or reasonably
estimated to be produced from proved Oil and Gas Properties of third parties
during the period of such contract associated with the Oil and Gas Properties
of the Borrower and its Subsidiaries that the Borrower or one of its
Subsidiaries has the right to market pursuant to joint operating agreements,
unitization agreements or other similar contracts that are usual and customary
in the

 82
 

oil and gas business and (iii) other contracts for the purchase and/or
sale of Hydrocarbons of third parties (A) which have generally offsetting
provisions (i.e. corresponding pricing mechanics, delivery dates and points and
volumes) such that no “position” is taken and (B) for which appropriate credit
support has been taken to alleviate the material credit risks of the
counterparty thereto.

Section 9.20.                             Management
Fees.  The Borrower will not, and
will not permit any Subsidiary to, enter into any agreement to pay a management
fee for the operation of its Properties without the prior approval of the
Administrative Agent.

ARTICLE X

Events of Default; Remedies

Section 10.01.                       Events
of Default.  One or more of the
following events shall constitute an “Event of Default”:

(a)                                  the Borrower shall
fail to pay any principal of any Loan or any reimbursement obligation in
respect of any LC Disbursement when and as the same shall become due and
payable (other than LC Disbursements which are repaid through an ABR Borrowing
as permitted by Section 2.8(e) hereof), whether at the due date thereof
or at a date fixed for prepayment thereof, by acceleration or otherwise.

(b)                                 the Borrower shall
fail to pay any interest on any Loan or any fee or any other amount (other than
an amount referred to in Section 10.01(a)) payable under any Loan
Document, when and as the same shall become due and payable, and such failure
shall continue unremedied for a period of five (5) Business Days.

(c)                                  any representation or
warranty made or deemed made by or on behalf of the Borrower or any Subsidiary
in or in connection with any Loan Document or any amendment or modification of
any Loan Document or waiver under such Loan Document, or in any report,
certificate, financial statement or other document furnished pursuant to or in
connection with any Loan Document or any amendment or modification thereof or
waiver thereunder, shall prove to have been incorrect when made or deemed made.

(d)                                 the Borrower or any
Subsidiary shall fail to observe or perform any covenant, condition or
agreement contained in Section 8.01(j), Section 8.01(n),
Section 8.01(q), Section 8.02, Section 8.03,
Section 8.14, Section 8.15 or in ARTICLE IX.

(e)                                  the Borrower or any
Subsidiary shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement (other than those specified in Section
10.01(a), Section 10.01(b) or Section 10.01(d)) or
any other Loan Document, and such failure shall continue unremedied for a
period of 30 days after the earlier to occur of (A) notice thereof from the
Administrative Agent to the Borrower (which notice will be given at the request
of any Lender) or (B) a Responsible Officer of the Borrower or such Subsidiary
otherwise becoming aware of such default.

 83
 

(f)                                    the Borrower or any
Subsidiary shall fail to make any payment (whether of principal or interest and
regardless of amount) in respect of any Material Indebtedness, when and as the
same shall become due and payable (after giving effect to any applicable notice
and cure period).

(g)                                 any event or condition
occurs that results in any Material Indebtedness becoming due prior to its
scheduled maturity or that enables or permits (with or without the giving of
notice, the lapse of time or both) the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the Redemption thereof or
any offer to Redeem to be made in respect thereof, prior to its scheduled
maturity or require the Borrower or any Subsidiary to make an offer in respect
thereof.

(h)                                 an involuntary
proceeding shall be commenced or an involuntary petition shall be filed seeking
(i) liquidation, reorganization or other relief in respect of the Borrower or
any Subsidiary or its debts, or of a substantial part of its assets, under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for the Borrower or any Subsidiary
or for a substantial part of its assets, and, in any such case, such proceeding
or petition shall continue undismissed for 30 days or an order or decree
approving or ordering any of the foregoing shall be entered.

(i)                                     the Borrower or
any Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other relief under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii) consent to the institution of, or fail to contest in
a timely and appropriate manner, any proceeding or petition described in Section 10.01(h),
(iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower or
any Subsidiary or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or (vi)
take any action for the purpose of effecting any of the foregoing.

(j)                                     the Borrower or
any Subsidiary shall become unable, admit in writing its inability or fail
generally to pay its debts as they become due.

(k)                                  (i) one or more
judgments for the payment of money in an aggregate amount in excess of $1,000,000  (to
the extent not covered by independent third party insurance provided by
insurers of the highest claims paying rating or financial strength as to which
the insurer does not dispute coverage and is not subject to an insolvency
proceeding) or (ii) any one or more non-monetary judgments that have, or could
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect, shall be rendered against the Borrower, any Subsidiary or any combination
thereof and the same shall remain undischarged for a period of 30 consecutive
days during which execution shall not be effectively stayed, or any action
shall be legally taken by a judgment creditor to attach or levy upon any assets
of the Borrower or any Subsidiary to enforce any such judgment.

 84
 

(l)                                     the Loan Documents
after delivery thereof shall for any reason, except to the extent permitted by
the terms thereof, cease to be in full force and effect and valid, binding and
enforceable in accordance with their terms against the Borrower or a Guarantor
party thereto or shall be repudiated by any of them, or cease to create a valid
and perfected Lien of the priority required thereby on any of the collateral
purported to be covered thereby, except to the extent permitted by the terms of
this Agreement, or the Borrower or any Subsidiary or any of their Affiliates
shall so state in writing.

(m)                               an ERISA Event shall
have occurred that, in the opinion of the Majority Lenders, when taken together
with all other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Borrower and its Subsidiaries in an aggregate amount
exceeding $1,000,000 in any year.

(n)                                 There occurs under any
Swap Agreement an early Termination Date (as defined in such Swap Agreement)
resulting from (i) any event of default under such Swap Agreement to which the
Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap
Agreement), or (ii) any Termination Event (as so defined) under such Swap
Agreement as to which the Borrower or any Subsidiary is an Affected Party (as
so defined) and, in either event, the Swap Termination Value owed by the
Borrower or such Subsidiary as a result thereof constitutes Material
Indebtedness.

(o)                                 a Change in Control
shall occur.

(p)                                 (i) Thomas H.
Blake shall cease for any reason to be a full time member of the board of
managers of the Borrower, and a successor to the Mr. Blake acceptable to
the Administrative Agent has not been appointed within 60 days thereof, or
(ii) Scott W. Smith shall cease for any reason to perform his duties
pursuant to the terms and provisions of the Smith Employment Agreement, and a
successor to Mr. Smith acceptable to the Administrative Agent has not been
appointed within 60 days.

Section 10.02.                       Remedies.

(a)                                  In the case of an
Event of Default other than one described in Section 10.01(h), Section 10.01(i)
or Section 10.01(j), at any time thereafter during the continuance
of such Event of Default, the Administrative Agent may, and at the request of
the Majority Lenders, shall, by notice to the Borrower, take either or both of
the following actions, at the same or different times:  (i) terminate the Commitments, and thereupon
the Commitments shall terminate immediately, and (ii) declare the Notes and the
Loans then outstanding to be due and payable in whole (or in part, in which
case any principal not so declared to be due and payable may thereafter be
declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Borrower and the Guarantors accrued hereunder
and under the Notes and the other Loan Documents (including, without
limitation, the payment of cash collateral to secure the LC Exposure as
provided in Section 2.08(j)), shall become due and payable
immediately, without presentment, demand, protest, notice of intent to
accelerate, notice of acceleration or other notice of any kind, all of which
are hereby waived by the Borrower and each Guarantor; and in case of an Event
of Default described in Section 10.01(h),

 85
 

Section 10.01(i) or Section 10.01(j),
the Commitments shall automatically terminate and the Notes and the principal
of the Loans then outstanding, together with accrued interest thereon and all
fees and the other obligations of the Borrower and the Guarantors accrued
hereunder and under the Notes and the other Loan Documents (including, without
limitation, the payment of cash collateral to secure the LC Exposure as
provided in Section 2.08(j)), shall automatically become due and
payable, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower and each Guarantor.

(b)                                 In the case of the
occurrence of an Event of Default, the Administrative Agent and the Lenders
will have all other rights and remedies available at law and equity.

(c)                                  All proceeds realized
from the liquidation or other disposition of collateral or otherwise received
after maturity of the Notes, whether by acceleration or otherwise, shall be
applied:

(i)                                     first, to payment or reimbursement of that
portion of the Indebtedness constituting fees, expenses and indemnities payable
to the Administrative Agent in its capacity as such;

(ii)                                  second, pro rata to payment or
reimbursement of that portion of the Indebtedness constituting fees, expenses
and indemnities payable to the Lenders;

(iii)                               third, pro rata to payment of accrued
interest on the Loans;

(iv)                              fourth, pro rata to payment of principal
outstanding on the Loans and Indebtedness owed to any Swap Lender;

(v)                                 fifth, pro rata to any other Indebtedness;

(vi)                              sixth, to serve as cash collateral to be
held by the Administrative Agent to secure the LC Exposure; and

(vii)                           seventh, any excess, after all of the Indebtedness shall
have been indefeasibly paid in full in cash, shall be paid to the Borrower or
as otherwise required by any Governmental Requirement.

ARTICLE
XI

The Agents

Section 11.01.                       Appointment;
Powers.  Each of the Lenders and the
Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent
and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Administrative Agent by the
terms hereof and the other Loan Documents, together with such actions and
powers as are reasonably incidental thereto. 
The provisions of this Article
are solely for the benefit of the Administrative Agent, the Lenders and the
Issuing Bank, and neither the Borrower nor any Subsidiary shall have rights as
a third party beneficiary of any of such provisions.

 86
 

Section 11.02.                       Duties
and Obligations of Administrative Agent. 
The Administrative Agent shall not have any duties or obligations except
those expressly set forth in the Loan Documents.  Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing (the use of the term “agent” herein and in the other Loan Documents
with reference to the Administrative Agent is not intended to connote any
fiduciary or other implied (or express) obligations arising under agency
doctrine of any applicable law; rather, such term is used merely as a matter of
market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties), (b) the Administrative
Agent shall have no duty to take any discretionary action or exercise any
discretionary powers, except as provided in Section 11.03, and (c)
except as expressly set forth herein, the Administrative Agent shall not have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity.  The Administrative Agent shall not be liable
for any action taken or not taken by it (i) with the consent or at the
request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in
good faith shall be necessary, under the circumstances as provided in Sections 10.02
and 12.02) or (ii) in the absence of its own gross negligence or
willful misconduct.  The
Administrative Agent shall be deemed not to have knowledge of any Default
unless and until written notice thereof is given to the Administrative Agent by
the Borrower or a Lender, and shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
under any other Loan Document or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein or in any other Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document, (v) the satisfaction
of any condition set forth in ARTICLE VI or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent or as to those conditions precedent expressly required to
be to the Administrative Agent’s satisfaction, (vi) the existence, value,
perfection or priority of any collateral security or the financial or other
condition of the Borrower and its Subsidiaries or any other obligor or
guarantor, or (vii) any failure by the Borrower or any other Person (other than
itself) to perform any of its obligations hereunder or under any other Loan
Document or the performance or observance of any covenants, agreements or other
terms or conditions set forth herein or therein.  For purposes of determining compliance with
the conditions specified in ARTICLE VI, each Lender shall be deemed to have
consented to, approved or accepted or to be satisfied with, each document or
other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received written notice from such Lender prior to the proposed closing
date specifying its objection thereto.

Section 11.03.                       Action
by Administrative Agent.  The
Administrative Agent shall have no duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Loan Documents that the Administrative
Agent is required to exercise in writing as directed by the Majority Lenders
(or

 87
 

such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 12.02) and in all
cases the Administrative Agent shall be fully justified in failing or refusing
to act hereunder or under any other Loan Documents unless it shall (a) receive
written instructions from the Majority Lenders or the Lenders, as applicable,
(or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 12.02) specifying the
action to be taken and (b) be indemnified to its satisfaction by the Lenders
against any and all liability and expenses which may be incurred by it by
reason of taking or continuing to take any such action.  The instructions as aforesaid and any action
taken or failure to act pursuant thereto by the Administrative Agent shall be
binding on all of the Lenders.  If a
Default has occurred and is continuing, then the Administrative Agent shall
take such action with respect to such Default as shall be directed by the
requisite Lenders in the written instructions (with indemnities) described in
this Section 11.03, provided that, unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default as it shall deem advisable in
the best interests of the Lenders.  In no
event, however, shall the Administrative Agent be required to take any action
which exposes the Administrative Agent to personal liability or which is
contrary to this Agreement, the Loan Documents or applicable law.  The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Majority Lenders or the Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section 12.02),
and otherwise the Administrative Agent shall not be liable for any action taken
or not taken by it hereunder or under any other Loan Document or under any
other document or instrument referred to or provided for herein or therein or
in connection herewith or therewith INCLUDING ITS OWN ORDINARY NEGLIGENCE,
except to the extent such liability is determined by a court of competent
jurisdiction by final and non-appealable judgment to have resulted primarily
from its own gross negligence or willful misconduct.

Section 11.04.                       Reliance
by Administrative Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including electronic message,
Internet or intranet web posting or other distribution) believed by it to be
genuine and to have been signed, sent or otherwise authenticated by the proper
Person.  The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by
it to be made by the proper Person, and shall not incur any liability for
relying thereon and each of the Borrower, the Lenders and the Issuing Bank hereby
waives the right to dispute the Administrative Agent’s record of such
statement, except in the case of gross negligence or willful misconduct by the
Administrative Agent.  In determining compliance with any condition
hereunder to the making of a Loan, or the issuance of a Letter of Credit, that
by its terms must be fulfilled to the satisfaction of a Lender or the Issuing
Bank, the Administrative Agent may presume that such condition is satisfactory
to such Lender or the Issuing Bank unless the Administrative Agent shall have
received notice to the contrary from such Lender or the Issuing Bank prior to
the making of such Loan or the issuance of such Letter of Credit.  The Administrative Agent may consult
with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.  The
Administrative Agent may deem and treat the payee of any Note as the holder

 88
 

thereof for all purposes hereof unless and until a written notice of
the assignment or transfer thereof permitted hereunder shall have been filed
with the Administrative Agent.

Section 11.05.                       Subagents.  The Administrative Agent may perform any and
all its duties and exercise its rights and powers by or through any one or more
sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. 
The exculpatory provisions of the preceding Sections of this
ARTICLE XI shall apply to any such sub-agent and to the Related Parties of
the Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

Section 11.06.                       Resignation
or Removal of Administrative Agent. 
Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this Section 11.06, the Administrative Agent
may resign at any time by notifying the Lenders, the Issuing Bank and the
Borrower.  Upon any such resignation or
removal, the Majority Lenders shall have the right, in consultation with the
Borrower, to appoint a successor; provided that, no consultation with the
Borrower shall be required if an Event of Default has occurred and is
continuing.  If no successor shall have
been so appointed by the Majority Lenders and shall have accepted such
appointment within 30 days after the retiring Agent gives notice of its
resignation or removal of the retiring Administrative Agent, then the retiring
Administrative Agent may, on behalf of the Lenders and the Issuing Bank,
appoint a successor.  Administrative Agent meeting the
qualifications set forth above provided that if the Administrative Agent shall
notify the Borrower and the Lenders that no qualifying Person has accepted such
appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder and under the
other Loan Documents and (2) all payments, communications and determinations
provided to be made by, to or through the Administrative Agent shall instead be
made by or to each Lender and the Issuing Bank directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above
in this paragraph.  Upon the
acceptance of its appointment as Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder (if not already
discharged as provided for above in this paragraph).  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After the Administrative
Agent’s resignation hereunder, the provisions of this ARTICLE XI and Section 12.03
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while it was acting as
Administrative Agent.

Section 11.07.                       Agents
as Lenders.  The Person serving as the Administrative Agent hereunder shall have the
same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent and the term “Lender”
or “Lenders” shall, unless otherwise expressly indicated or unless the context
otherwise requires, include the Person serving as the Administrative Agent
hereunder in its individual capacity.

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Such
Person and its Affiliates may accept deposits from, lend money to, act as the
financial advisor or in any other advisory capacity for and generally engage in
any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not the Administrative Agent hereunder and
without any duty to account therefor to the Lenders.

Section 11.08.                       No Reliance.

(a)                                  Each Lender
acknowledges that it has, independently and without reliance upon the
Administrative Agent, any other Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement and each other Loan Document
to which it is a party.  Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent, any other Agent or any other Lender and based on such
documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or
based upon this Agreement, any other Loan Document, any related agreement or
any document furnished hereunder or thereunder. 
The Agents shall not be required to keep themselves informed as to the
performance or observance by the Borrower or any of its Subsidiaries of this
Agreement, the Loan Documents or any other document referred to or provided for
herein or to inspect the Properties or books of the Borrower or its
Subsidiaries.  Except for notices,
reports and other documents and information expressly required to be furnished
to the Lenders by the Administrative Agent hereunder, no Agent or the Arranger
shall have any duty or responsibility to provide any Lender with any credit or
other information concerning the affairs, financial condition or business of
the Borrower (or any of its Affiliates) which may come into the possession of
such Agent or any of its Affiliates.  In
this regard, each Lender acknowledges that Winstead Sechrest & Minick P.C.
is acting in this transaction as special counsel to the Administrative Agent
only, except to the extent otherwise expressly stated in any legal opinion or
any Loan Document.  Each other party
hereto will consult with its own legal counsel to the extent that it deems
necessary in connection with the Loan Documents and the matters contemplated
therein.

(b)                                 The Lenders
acknowledge that the Administrative Agent and the Arranger are acting solely in
administrative capacities with respect to the structuring and syndication of
this facility and have no duties, responsibilities or liabilities under this
Agreement and the other Loan Documents other than their administrative duties,
responsibilities and liabilities specifically as set forth in the Loan
Documents and in their capacity as Lenders hereunder.  In structuring, arranging or syndicating this
facility, each Lender acknowledges that the Administrative Agent and/or Arranger
may be an agent or lender under these Notes, other loans or other securities
and waives any existing or future conflicts of interest associated with the
their role in such other debt instruments. 
If in its administration of this facility or any other debt instrument,
the Administrative Agent determines (or is given written notice by any Lender)
that a conflict exists, then it shall eliminate such conflict within 90 days or
resign pursuant to Section 11.06 and shall have no liability for
action taken or not taken while such conflict existed.

Section 11.09.                       Administrative
Agent May File Proofs of Claim.  In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding
relative to the Borrower or any of its

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Subsidiaries, the Administrative Agent (irrespective of whether the
principal of any Loan shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether the Administrative Agent
shall have made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise:

(a)                                  to file and prove a
claim for the whole amount of the principal and interest owing and unpaid in
respect of the Loans and all other Indebtedness that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have
the claims of the Lenders and the Administrative Agent (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Lenders and the Administrative Agent and their respective agents and counsel
and all other amounts due the Lenders and the Administrative Agent under Section 12.03)
allowed in such judicial proceeding; and

(b)                                 to collect and receive
any monies or other property payable or deliverable on any such claims and to
distribute the same;

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Section 12.03.

Nothing contained herein shall be deemed to authorize
the Administrative Agent to authorize or consent to or accept or adopt on
behalf of any Lender any plan of reorganization, arrangement, adjustment or
composition affecting the Indebtedness or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any
Lender in any such proceeding.

Section 11.10.                       Authority
of Administrative Agent to Release Collateral and Liens.  Each Lender and the Issuing Bank hereby
authorizes the Administrative Agent to release any collateral that is permitted
to be sold or released pursuant to the terms of the Loan Documents.  Each Lender and the Issuing Bank hereby
authorizes the Administrative Agent to execute and deliver to the Borrower, at
the Borrower’s sole cost and expense, any and all releases of Liens,
termination statements, assignments or other documents reasonably requested by
the Borrower in connection with any sale or other disposition of Property to
the extent such sale or other disposition is permitted by the terms of Section 9.12
or is otherwise authorized by the terms of the Loan Documents.

Section 11.11.                       The
Arranger, Bookrunner, Etc.  Anything
herein to the contrary notwithstanding, none of the Arrangers, shall have any
powers, duties, responsibilities or liabilities under this Agreement and the
other Loan Documents other than its powers, duties, responsibilities and
liabilities in its capacity, as applicable, as the Administrative Agent, a
Lender or the Issuing Bank hereunder.

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ARTICLE
XII

Miscellaneous

Section 12.01.                       Notices.

(a)                                  Except in the case of
notices and other communications expressly permitted to be given by telephone
(and subject to Section 12.01(b)), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows:

(i)                                     if to the
Borrower, to it at

Nami
Holding Company, LLC

7500
San Felipe, Suite 440

Houston,
TX  77063

Attention:  Mr. Scott W. Smith

Telecopy:  713-659-1799

Telephone:  713-659-1794

with a copy to the
Borrower at:

Nami
Holding Company, LLC

14825
St. Mary’s Lane, Suite 100

Houston,
TX  77079

Attention:  Mr. Lasse Wagene

Telecopy:  832-327-2262

Telephone:  832-327-2245

with a copy to the
Borrower at:

Nami
Holding Company, LLC

One
Nami Plaza

London,
KY  40741

Attention:  Mr. Majeed S. Nami

Telecopy:  606-862-6403

Telephone:  606-862-6402

(ii)                                  if to the
Administrative Agent or the Issuing Bank, to it at

Citibank,
N.A.

8401
N. Central Expressway, Suite 500

Dallas,
TX  75225

Attention:  Ms. Angela McCracken

Telecopy:  972-419-3334

Telephone:  972-419-3343

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with a copy to the
Administrative Agent at:

Citibank,
N.A.

8401
N. Central Expressway, Suite 500

Dallas,
TX  75225

Attention:  Ms. Donna Schwark

Telecopy:  972-419-3334

Telephone:  972-419-3369

(iii)                               if to any other Lender,
to it at its address (or telecopy number) set forth in its Administrative
Questionnaire.

Notices sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier shall be deemed to have been given when
sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next
Business Day for the recipient).  Notices
delivered through electronic communications to the extent provided in
paragraph (b) below, shall be effective as provided in said
paragraph (b).

(b)                                 Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communications (including e-mail and Internet or intranet
websites) pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to ARTICLE II,
ARTICLE III, ARTICLE IV and ARTICLE V if such Lender or the
Issuing Bank, as applicable, has notified the Administrative Agent that it is
incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it;
provided that approval of such procedures may be limited to particular notices
or communications.

Unless the
Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next Business Day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address
therefor.

(c)                                  Any party hereto may
change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto.  All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt.

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Section 12.02.                       Waivers;
Amendments.

(a)                                  No failure on the
part of the Administrative Agent, any other Agent, the Issuing Bank or any
Lender to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power or privilege, or any abandonment or discontinuance
of steps to enforce such right, power or privilege, under any of the Loan
Documents shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege under any of the Loan Documents preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege.  The rights and remedies of
the Administrative Agent, any other Agent, the Issuing Bank and the Lenders
hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement
or any other Loan Document or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
Section 12.02(b), and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which
given.  Without limiting the generality
of the foregoing, the making of a Loan or issuance of a Letter of Credit shall
not be construed as a waiver of any Default, regardless of whether the
Administrative Agent, any other Agent, any Lender or the Issuing Bank may have
had notice or knowledge of such Default at the time.

(b)                                 Neither this Agreement
nor any provision hereof nor any Security Instrument nor any provision thereof
may be waived, amended or modified, except pursuant to an agreement or
agreements in writing entered into by the Borrower and the Majority Lenders or
by the Borrower and the Administrative Agent with the consent of the Majority
Lenders; provided that no such agreement shall (i) increase the Commitment or
the Maximum Credit Amount of any Lender without the written consent of such
Lender, (ii) increase the Borrowing Base without the written consent of each
Lender, decrease or maintain the Borrowing Base without the consent of the
Majority Lenders, or modify Section 2.07 in any manner without the
consent of each Lender, (iii) reduce the principal amount of any Loan or LC
Disbursement or reduce the rate of interest thereon, or reduce any fees payable
hereunder, or reduce any other Indebtedness hereunder or under any other Loan
Document, without the written consent of each Lender affected thereby, (iv)
postpone the scheduled date of payment or prepayment of the principal amount of
any Loan or LC Disbursement, or any interest thereon, or any fees payable
hereunder, or any other Indebtedness hereunder or under any other Loan
Document, or reduce the amount of, waive or excuse any such payment, or postpone
or extend the Termination Date without the written consent of each Lender
affected thereby, (v) change Section 4.01(b) or Section 4.01(c)
in a manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender, (vi) waive or amend Section 8.14,
without the written consent of each Lender, (vii) amend Section 10.02(c)
or Section 12.14 in such a manner that any repayment amounts owed by
Borrower, any Subsidiary or any Guarantor to any Swap Lender shall cease to be
ranked, secured and be guaranteed on a pari passu basis with respect to the
repayment of principal outstanding on the Loans due under this Agreement,
without the written consent of each Swap Lender affected thereby, (viii)
release any Guarantor (except as set forth herein or in the Guaranty
Agreement), release all or substantially all of the collateral (other than as
provided in Section 2.09(c) and Section 11.10), or reduce
the percentage set forth in Section 8.14(a) to less than 90%,
without the written consent of each Lender, or (ix) change any of the
provisions of this Section 12.02(b) or the definition of “Majority
Lenders” or any other

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provision hereof specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or under any other Loan
Documents or make any determination or grant any consent hereunder or any other
Loan Documents, without the written consent of each Lender; provided further
that (A) no such agreement shall amend, modify or otherwise affect the rights
or duties of the Administrative Agent, any other Agent, or the Issuing Bank
hereunder or under any other Loan Document without the prior written consent of
the Administrative Agent, such other Agent or the Issuing Bank, as the case may
be, and (B) nothing in this Section 12.02 shall cause any waiver,
amendment, modification or consent to (I) any fee letter between the Borrower
and any Lender, Agent or the Administrative Agent or Issuing Bank to require
the consent of the Majority Lenders, (II) any Letter of Credit Agreements
between the Borrower or any Subsidiary of the Borrower and the Issuing Bank to
require the consent of the Majority Lenders, (III) any Letter of Credit issued
by the Issuing Bank pursuant to the terms of this Agreement to require the
consent of the Majority Lenders except as specifically required by Section
2.08 and (IV) any Swap Agreement between the Borrower or any of its
Subsidiaries, and the Administrative Agent, any Agent or any Lender, or any
Affiliate of any thereof, to require the consent of the Majority Lenders.

Section 12.03.                       Expenses,
Indemnity; Damage Waiver.

(a)                                  The Borrower shall
pay (i) all reasonable out-of-pocket expenses incurred by the Administrative
Agent and its Affiliates, including, without limitation, the reasonable fees,
charges and disbursements of counsel and other outside consultants for the
Administrative Agent, the reasonable travel, photocopy, mailing, courier,
telephone and other similar expenses, and the cost of environmental audits and
surveys and appraisals, in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration (both before and after the execution hereof and
including advice of counsel to the Administrative Agent as to the rights and
duties of the Administrative Agent and the Lenders with respect thereto) of
this Agreement and the other Loan Documents and any amendments, modifications
or waivers of or consents related to the provisions hereof or thereof (whether
or not the transactions contemplated hereby or thereby shall be consummated),
(ii) all costs, expenses, Taxes, assessments and other charges incurred by any
Agent or any Lender in connection with any filing, registration, recording or
perfection of any security interest contemplated by this Agreement or any
Security Instrument or any other document referred to therein, (iii) all
reasonable out-of-pocket expenses incurred by the Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder, (iv) all out-of-pocket expenses incurred by
any Agent, the Issuing Bank or any Lender, including the fees, charges and
disbursements of any counsel for any Agent, the Issuing Bank or any Lender, in
connection with the enforcement or protection of its rights in connection with
this Agreement or any other Loan Document, including its rights under this Section 12.03,
or in connection with the Loans made or Letters of Credit issued hereunder,
including, without limitation, all such out-of-pocket expenses incurred during
any workout, restructuring or negotiations in respect of such Loans or Letters
of Credit.

(b)                                 THE BORROWER SHALL INDEMNIFY THE
ADMINISTRATIVE AGENT (AND ANY SUB-AGENT THEREOF), EACH LENDER AND THE ISSUING
BANK, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH

 95
 

SUCH
PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD EACH INDEMNITEE
HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES
(INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY
INDEMNITEE), AND SHALL INDEMNIFY AND HOLD HARMLESS EACH INDEMNITEE FROM ALL
FEES AND TIME CHARGES AND DISBURSEMENTS FOR ATTORNEYS WHO MAY BE EMPLOYEES OF
ANY INDEMNITEE, INCURRED BY ANY INDEMNITEE OR ASSERTED AGAINST ANY INDEMNITEE
BY ANY THIRD PARTY OR BY THE BORROWER OR ANY SUBSIDIARY ARISING OUT OF, IN
CONNECTION WITH, OR AS A RESULT OF (I) THE EXECUTION OR DELIVERY OF THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED
HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OF THEIR RESPECTIVE
OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY, (II) ANY LOAN OR LETTER OF CREDIT OR THE
USE OR PROPOSED USE OF THE PROCEEDS THEREFROM (INCLUDING ANY REFUSAL BY THE
ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE
DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH
THE TERMS OF SUCH LETTER OF CREDIT), (III) ANY ACTUAL OR ALLEGED PRESENCE
OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY
THE BORROWER OR ANY OF ITS SUBSIDIARIES, OR ANY ENVIRONMENTAL LIABILITY RELATED
IN ANY WAY TO THE BORROWER OR ANY OF ITS SUBSIDIARIES, OR (IV) ANY ACTUAL
OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY
OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER
BROUGHT BY A THIRD PARTY OR BY THE BORROWER OR ANY SUBSIDIARY, AND REGARDLESS OF
WHETHER ANY INDEMNITEE IS A PARTY THERETO, PROVIDED THAT SUCH INDEMNITY
SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES,
CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES (X) ARE DETERMINED BY A
COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE
RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE OR
(Y) RESULT FROM A CLAIM BROUGHT BY THE BORROWER OR ANY OTHER LOAN PARTY
AGAINST AN INDEMNITEE FOR BREACH IN BAD FAITH OF SUCH INDEMNITEE’S OBLIGATIONS
HEREUNDER OR UNDER ANY OTHER LOAN DOCUMENT, IF THE BORROWER OR SUCH LOAN PARTY
HAS OBTAINED A FINAL AND NONAPPEALABLE JUDGMENT IN ITS FAVOR ON SUCH CLAIM AS
DETERMINED BY A COURT OF COMPETENT JURISDICTION.

(c)                                  To the extent that
the Borrower fails to indefeasibly pay any amount required to be paid by it to
any Agent, the Arranger or the Issuing Bank under Section 12.03(a)
or (b), each Lender severally agrees to pay to such Agent, the Arranger
or the Issuing Bank, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against such Agent,
the Arranger or the

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Issuing Bank in its capacity as such. 
The obligations of the Lenders under this paragraph (c) are several
and not joint.

(d)                                 To the fullest extent
permitted by applicable law, the Borrower shall not assert, and hereby waives,
any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby or
thereby, the Transactions, any Loan or Letter of Credit or the use of the
proceeds thereof.  No Indemnitee referred to in paragraph (b)
above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.

(e)                                  All amounts due under
this Section 12.03 shall be payable promptly/not later than three
Business Days after written demand therefor.

(f)                                    The provisions of
this Section 12.03 shall remain operative and in full force and
effect regardless of the expiration of the term of this Agreement, the
consummation of the transactions contemplated hereby, the repayment of any of
the Loans, the expiration of the Commitments, the expiration of any Letter of
Credit, the invalidity or unenforceability of any term or provision of this
Agreement or any other Loan Document, or any investigation made by or on behalf
of the Administrative Agent, any Lender or the Issuing Bank.

Section 12.04.                       Successors
and Assigns.

(a)                                  The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby (including
any Affiliate of the Issuing Bank that issues any Letter of Credit), except
that (i) the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its rights
or obligations hereunder except (i) to
an assignee in accordance with the provisions of paragraph (b) of this Section,
(ii) by way of participation in accordance with the provisions of paragraph (d)
of this Section or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of paragraph (f) of this Section (and any other
attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in Section 12.04(c)) and, to the extent
expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

(b)                                  (i) Subject to the
conditions set forth in Section 12.04(b)(ii), any Lender may assign
to one or more assignees all or a portion of its rights and obligations under
this

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Agreement (including all or a portion of its Commitment and the Loans
at the time owing to it) with the prior written consent (such consent not to be
unreasonably withheld or delayed) of:

(A)                              the Borrower, provided
that no consent of the Borrower shall be required if such assignment is to a
Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default
has occurred and is continuing, is to any other assignee; and

(B)                                the Administrative
Agent, provided that no consent of the Administrative Agent shall be required
for an assignment to an assignee that is a Lender immediately prior to giving
effect to such assignment.

(ii)                                  Assignments shall be
subject to the following additional conditions:

(A)                              except in the case of an
assignment to a Lender or an Affiliate of a Lender or an assignment of the entire
remaining amount of the assigning Lender’s Commitment or Loans, the amount of
the Commitment or Loans of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
$5,000,000 unless each of the Borrower and the Administrative Agent otherwise
consent, provided that no such consent of the Borrower shall be required if an
Event of Default has occurred and is continuing;

(B)                                each partial assignment
shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement;

(C)                                the parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption, together with a processing and recordation fee of $3,500 (which
fee may be waived or reduced in the sole discretion of the Administrative
Agent); and

(D)                               the assignee, if it
shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire.

(iii)                               Subject to Section 12.04(b)(iv)
and the acceptance and recording thereof by the Administrative Agent, from and
after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of
a Lender under this Agreement, and the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Assumption, be
released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Section 5.01, Section 5.02,
Section 5.03 and Section 12.03).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 12.04
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section 12.04(c).

 98
 

(iv)                              The Administrative Agent,
acting solely for this purpose as an agent of the Borrower, shall maintain at
one of its offices a copy of each Assignment and Assumption delivered to it and
a register for the recordation of the names and addresses of the Lenders, and
the Maximum Credit Amount of, and principal amount of the Loans and LC
Disbursements owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Bank and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.  In connection with any changes to the
Register, if necessary, the Administrative Agent will reflect the revisions on
Annex I and forward a copy of such revised Annex I to the Borrower, the Issuing
Bank and each Lender.

(v)                                 Upon its receipt of a
duly completed Assignment and Assumption executed by an assigning Lender and an
assignee, the assignee’s completed Administrative Questionnaire (unless the
assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in Section 12.04(b) and any written consent to such
assignment required by Section 12.04(b), the Administrative Agent
shall accept such Assignment and Assumption and record the information
contained therein in the Register.  No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this Section 12.04(b).

(c)                                  (i)                                     Any Lender may,
without the consent of the Borrower, the Administrative Agent or the Issuing
Bank, sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to
it); provided that (A) such Lender’s obligations under this Agreement
shall remain unchanged, (B) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations and
(C) the Borrower, the Administrative Agent, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent
of the Participant, agree to any amendment, modification or waiver described in
the proviso to Section 12.02 that affects such Participant.  In addition such agreement must provide that
the Participant be bound by the provisions of Section 12.03.  Subject to Section 12.04(c)(ii),
the Borrower agrees that each Participant shall be entitled to the benefits of Section 5.01,
Section 5.02 and Section 5.03 to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to Section 12.04(b).  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 12.08
as though it were a Lender, provided such Participant agrees to be subject to Section 4.01(c)
as though it were a Lender.

 99
 

(ii)                                  A Participant shall
not be entitled to receive any greater payment under Section 5.01
or Section 5.03 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower’s
prior written consent.  A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 5.03 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 5.03(e) as though
it were a Lender.

(d)                                 Any Lender may at any
time pledge or assign a security interest in all or any portion of its rights
under this Agreement to secure obligations of such Lender, including, without
limitation, any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section 12.04(d) shall not apply to any such pledge
or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

(e)                                  Notwithstanding any
other provisions of this Section 12.04, no transfer or assignment
of the interests or obligations of any Lender or any grant of participations
therein shall be permitted if such transfer, assignment or grant would require
the Borrower and the Guarantors to file a registration statement with the SEC
or to qualify the Loans under the “Blue Sky” laws of any state.

Section 12.05.                       Survival;
Revival; Reinstatement.

(a)                                  All covenants,
agreements, representations and warranties made by the Borrower herein and in
the certificates or other instruments delivered in connection with or pursuant
to this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of this Agreement and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, any other
Agent, the Issuing Bank or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid or any Letter of Credit
is outstanding and so long as the Commitments have not expired or
terminated.  The provisions of Section 5.01,
Section 5.02, Section 5.03 and Section 12.03
and ARTICLE XI shall survive and remain in full force and effect
regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Letters of Credit
and the Commitments or the termination of this Agreement, any other Loan
Document or any provision hereof or thereof.

(b)                                 To the extent that any
payments on the Indebtedness or proceeds of any collateral are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
to be repaid to a trustee, debtor in possession, receiver or other Person under
any bankruptcy law, common law or equitable cause, then to such extent, the
Indebtedness so satisfied shall be revived and continue as if such payment or
proceeds had not been received and

 100
 

the Administrative Agent’s and the Lenders’ Liens, security interests,
rights, powers and remedies under this Agreement and each Loan Document shall
continue in full force and effect.  In
such event, each Loan Document shall be automatically reinstated and the
Borrower shall take such action as may be reasonably requested by the
Administrative Agent and the Lenders to effect such reinstatement.

Section 12.06.                       Counterparts;
Integration; Effectiveness.

(a)                                  This Agreement may be
executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract.

(b)                                 This Agreement, the
other Loan Documents and any separate letter agreements with respect to fees
payable to the Administrative Agent constitute the entire contract among the
parties relating to the subject matter hereof and thereof and supersede any and
all previous agreements and understandings, oral or written, relating to the
subject matter hereof and thereof.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

(c)                                  Except as provided in
Section 6.01, this Agreement shall become effective when it shall
have been executed by the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof which, when taken together, bear
the signatures of each of the other parties hereto, and thereafter shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns. 
Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

(d)                                 Electronic Execution of Assignments.  The
words “execution,” “signed,” “signature,” and words of like import in any
Assignment and Assumption shall be deemed to include electronic signatures or
the keeping of records in electronic form, each of which shall be of the same
legal effect, validity or enforceability as a manually executed signature or
the use of a paper-based recordkeeping system, as the case may be, to the
extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

Section 12.07.                       Severability.  Any provision of this Agreement or any other
Loan Document held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof or thereof; and
the invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

 101
 

Section 12.08.                       Right of
Setoff.  If an Event of Default shall
have occurred and be continuing, each Lender, the Issuing Bank, and each of
their respective Affiliates are hereby authorized at any time and from time to
time, to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (of whatsoever kind,
including, without limitation, obligations under Swap Agreements) at any time
owing by such Lender or Affiliate to or for the credit or the account of the
Borrower or any Subsidiary against any of and all the obligations of the
Borrower or any Subsidiary owed to such Lender now or hereafter existing under
this Agreement or any other Loan Document, irrespective of whether or not such
Lender shall have made any demand under this Agreement or any other Loan
Document and although such obligations may be unmatured.  The rights of each Lender under this Section 12.08
are in addition to other rights and remedies (including other rights of setoff)
which such Lender or its Affiliates may have.  Each Lender and the Issuing Bank
agrees to notify the Borrower and the Administrative Agent promptly after any
such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application.

Section 12.09.                       GOVERNING
LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS; WAIVER OF JURY TRIAL.

(a)                                  Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the law of the State of Texas.

(b)                                 Submission to
Jurisdiction.  The Borrower
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of the courts of the State of Texas sitting in Dallas
County and of the United States District Court of the Northern Division of
Texas, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement or any other Loan Document, or for
recognition or enforcement of any judgment, and each of the parties hereto
irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such Texas State court or,
to the fullest extent permitted by applicable law, in such Federal court.  Each of the parties hereto agrees that a
final, non-appealable judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. 
Nothing in this Agreement or in any other Loan Document shall affect any
right that the Administrative Agent, any Lender or the Issuing Bank may otherwise
have to bring any action or proceeding relating to this Agreement or any other
Loan Document against the Borrower or any Subsidiary or its Properties in the
courts of any jurisdiction.

(c)                                  Waiver of Venue.  The Borrower irrevocably and unconditionally
waives, to the fullest extent permitted by applicable law, any objection that
it may now or hereafter have to the laying of venue of any action or proceeding
arising out of or relating to this Agreement or any other Loan Document in any
court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

 102
 

(d)                                 Service of Process.  Each party hereto irrevocably consents to
service of process in the manner provided for notices in Section 12.01.  Nothing in this Agreement will affect the
right of any party hereto to serve process in any other manner permitted by
applicable law.

Section 12.10.                       Headings.  Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

Section 12.11.                       Confidentiality.  Each of the Administrative Agent, the Issuing
Bank and the Lenders agrees to maintain the confidentiality of the Information
(as defined below), except that Information may be disclosed (a) to its and its
Affiliates’ respective partners, directors, managers, officers, advisors,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this Agreement
or any other Loan Document, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any suit, action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section 12.11,
to (i) any assignee of or Participant in, or any prospective assignee of
or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any Swap
Agreement relating to the Borrower and its obligations, (g) with the consent of
the Borrower or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section 12.11
or (ii) becomes available to the Administrative Agent, the Issuing Bank or
any Lender on a nonconfidential basis from a source other than the
Borrower.  For the purposes of this Section 12.11,
“Information”
means all information received from the Borrower or any Subsidiary relating to
the Borrower or any Subsidiary and their businesses, other than any such
information that is available to the Administrative Agent, the Issuing Bank or
any Lender on a nonconfidential basis prior to disclosure by the Borrower or a
Subsidiary; provided that, in the case of information received from the
Borrower or any Subsidiary after the date hereof, such information is clearly
identified at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section 12.11
shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of
such Information as such Person would accord to its own confidential
information.

Section 12.12.                       Interest
Rate Limitation.  It is the intention
of the parties hereto that each Lender shall conform strictly to usury laws
applicable to it.  Accordingly, if the
transactions contemplated hereby would be usurious as to any Lender under laws
applicable to it (including the laws of the United States of America and the
State of Texas or any other jurisdiction whose laws may be mandatorily
applicable to such Lender notwithstanding the other provisions of this
Agreement), then, in that event, notwithstanding anything to the contrary in
any of the Loan Documents or any agreement entered into in connection with or
as security for the Notes, it is

 103
 

agreed as follows:  (i) the aggregate
of all consideration which constitutes interest under law applicable to any
Lender that is contracted for, taken, reserved, charged or received by such
Lender under any of the Loan Documents or agreements or otherwise in connection
with the Notes shall under no circumstances exceed the maximum amount allowed
by such applicable law, and any excess shall be canceled automatically and if
theretofore paid shall be credited by such Lender on the principal amount of
the Indebtedness (or, to the extent that the principal amount of the
Indebtedness shall have been or would thereby be paid in full, refunded by such
Lender to the Borrower); and (ii) in the event that the maturity of the Notes
is accelerated by reason of an election of the holder thereof resulting from
any Event of Default under this Agreement or otherwise, or in the event of any
required or permitted prepayment, then such consideration that constitutes
interest under law applicable to any Lender may never include more than the
maximum amount allowed by such applicable law, and excess interest, if any,
provided for in this Agreement or otherwise shall be canceled automatically by
such Lender as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited by such Lender on the principal amount of
the Indebtedness (or, to the extent that the principal amount of the
Indebtedness shall have been or would thereby be paid in full, refunded by such
Lender to the Borrower).  All sums paid
or agreed to be paid to any Lender for the use, forbearance or detention of
sums due hereunder shall, to the extent permitted by law applicable to such
Lender, be amortized, prorated, allocated and spread throughout the stated term
of the Loans evidenced by the Notes until payment in full so that the rate or
amount of interest on account of any Loans hereunder does not exceed the
maximum amount allowed by such applicable law. 
If at any time and from time to time (i) the amount of interest payable
to any Lender on any date shall be computed at the Highest Lawful Rate
applicable to such Lender pursuant to this Section 12.12 and (ii)
in respect of any subsequent interest computation period the amount of interest
otherwise payable to such Lender would be less than the amount of interest
payable to such Lender computed at the Highest Lawful Rate applicable to such
Lender, then the amount of interest payable to such Lender in respect of such
subsequent interest computation period shall continue to be computed at the
Highest Lawful Rate applicable to such Lender until the total amount of
interest payable to such Lender shall equal the total amount of interest which
would have been payable to such Lender if the total amount of interest had been
computed without giving effect to this Section 12.12.  To the extent that Chapter 303 of the Texas
Finance Code is relevant for the purpose of determining the Highest Lawful Rate
applicable to a Lender, such Lender elects to determine the applicable rate
ceiling under such Chapter by the weekly ceiling from time to time in
effect.  Chapter 346 of the Texas Finance
Code does not apply to the Borrower’s obligations hereunder.

Section 12.13.                       EXCULPATION
PROVISIONS.  EACH OF THE PARTIES
HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF
THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT
READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF
THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN
REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE
NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY

 104
 

IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT
IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS
OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH
LIABILITY.  EACH PARTY HERETO AGREES AND
COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY
EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE
BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE
PROVISION IS NOT “CONSPICUOUS.”

Section 12.14.                       Collateral
Matters; Swap Agreements.  The
benefit of the Security Instruments and of the provisions of this Agreement
relating to any collateral securing the Indebtedness shall also extend to and
be available to any Swap Lender with respect to amounts payable by the
Borrower, any Subsidiary, and any Guarantor under any Swap Agreement on a pari
passu basis with respect to repayment of principal outstanding on Loans due
under this Agreement.  Except as
otherwise provided in Section 12.02(b)(vii), no Swap Lender shall have
any voting rights under any Loan Document as a result of the existence of
obligations owed to it under any such Swap Agreements.

Section 12.15.                       No Third
Party Beneficiaries.  This Agreement,
the other Loan Documents, and the agreement of the Lenders to make Loans and
the Issuing Bank to issue, amend, renew or extend Letters of Credit hereunder
are solely for the benefit of the Borrower, and no other Person (including,
without limitation, any Subsidiary of the Borrower, any obligor, contractor,
subcontractor, supplier or materialman) shall have any rights, claims, remedies
or privileges hereunder or under any other Loan Document against the Administrative
Agent, any other Agent, the Issuing Bank or any Lender for any reason
whatsoever.  There are no third party
beneficiaries.

Section 12.16.                       USA
Patriot Act Notice.  Each Lender
hereby notifies the Borrower that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”),
it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender to identify the Borrower in
accordance with the Act.

[SIGNATURES BEGIN
NEXT PAGE]

 105

The parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

	
  BORROWER:

  	
  NAMI HOLDING COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Scott W. Smith

  	
   

  
	
   

  	
   

  	
  Scott W. Smith

  
	
   

  	
   

  	
  President and Chief Executive Officer

  

 

 1
 

 

	
  ADMINISTRATIVE AGENT:

  	
  CITIBANK, N.A.

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Angela McCracken

  	
   

  
	
   

  	
   

  	
  Angela McCracken

  
	
   

  	
   

  	
  Vice President

  

 

 2
 

 

	
  LENDERS:

  	
  CITIBANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Angela McCracken

  	
   

  
	
   

  	
   

  	
  Angela McCracken

  
	
   

  	
   

  	
  Vice President

  

 

 3
 

 

	
  LENDERS:

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Larry Robinson

  	
   

  
	
   

  	
  Name:

  	
  Larry Robinson

  
	
   

  	
  Title:   Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Robert Long

  	
   

  
	
   

  	
  Name:

  	
  Robert Long

  
	
   

  	
  Title:   Vice President

  
						

 

 4

ANNEX I

LIST OF MAXIMUM CREDIT AMOUNTS

Aggregate
Maximum Credit Amounts

	
  Name of Lender

  	
   

  	
  Applicable Percentage

  	
   

  	
  Maximum Credit Amount

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  50

  	
  %

  	
  $

  	
  100,000,000

  	
   

  
	
  BNP Paribas

  	
   

  	
  50

  	
  %

  	
  $

  	
  100,000,000

  	
   

  
	
  TOTAL

  	
   

  	
  100.00

  	
  %

  	
  $

  	
  200,000,000

  	
   

  

 

 I-1

EXHIBIT A

FORM OF NOTE

	
  $[                          ]

  	
  January 3, 2007

  

 

FOR VALUE RECEIVED, NAMI HOLDING
COMPANY, LLC, a Kentucky limited liability company (the “Borrower”)
hereby promises to pay to the order of                                           
(the “Lender”),
at the principal office of CITIBANK, N.A.
(the “Administrative
Agent”), the principal sum of                                   
Dollars ($                  )
(or such lesser amount as shall equal the aggregate unpaid principal amount of
the Loans made by the Lender to the Borrower under the Credit Agreement, as
hereinafter defined), in lawful money of the United States of America and in
immediately available funds, on the dates and in the principal amounts provided
in the Credit Agreement, and to pay interest on the unpaid principal amount of
each such Loan, at such office, in like money and funds, for the period
commencing on the date of such Loan until such Loan shall be paid in full, at
the rates per annum and on the dates provided in the Credit Agreement.

The date, amount, Type, interest rate, Interest Period
and maturity of each Loan made by the Lender to the Borrower, and each payment
made on account of the principal thereof, shall be recorded by the Lender on
its books and, prior to any transfer of this Note, may be endorsed by the
Lender on the schedules attached hereto or any continuation thereof or on any
separate record maintained by the Lender. 
Failure to make any such notation or to attach a schedule shall not
affect any Lender’s or the Borrower’s rights or obligations in respect of such
Loans or affect the validity of such transfer by any Lender of this Note.

This Note is one of the Notes referred to in the
Credit Agreement dated as of January 3, 2007 among the Borrower, the
Administrative Agent, and the other agents and lenders signatory thereto
(including the Lender), and evidences Loans made by the Lender thereunder (such
Credit Agreement as the same may be amended, supplemented or restated from time
to time, the “Credit
Agreement”).  Capitalized
terms used in this Note have the respective meanings assigned to them in the
Credit Agreement.

This Note is issued pursuant to, and is subject to the
terms and conditions set forth in, the Credit Agreement and is entitled to the
benefits provided for in the Credit Agreement and the other Loan
Documents.  The Credit Agreement provides
for the acceleration of the maturity of this Note upon the occurrence of
certain events, for prepayments of Loans upon the terms and conditions
specified therein and other provisions relevant to this Note.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 A-1
 

 

	
  

  	
  NAMI HOLDING COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Scott W. Smith

  
	
   

  	
   

  	
  President and
  Chief Executive Officer

  

 

 A-2

EXHIBIT B

FORM OF BORROWING REQUEST

                            ,
20    

NAMI HOLDING COMPANY, LLC, a
Kentucky limited liability company (the “Borrower”), pursuant to Section 2.03
of the Credit Agreement dated as of January 3, 2007 (together with all
amendments, restatements, supplements or other modifications thereto, the “Credit Agreement”)
among the Borrower, CITIBANK, N.A.,
as Administrative Agent and the other agents and lenders (the “Lenders”)
which are or become parties thereto (unless otherwise defined herein, each
capitalized term used herein is defined in the Credit Agreement), hereby
requests a Borrowing as follows:

(i)            Aggregate amount of
the requested Borrowing is $                    ;

(ii)           Date of such
Borrowing is                             ,
20    ;

(iii)          Requested Borrowing
is to be [an ABR Borrowing] [a Eurodollar Borrowing];

(iv)          In the case of a
Eurodollar Borrowing, the initial Interest Period applicable thereto is                           ;

(v)           Amount of Borrowing
Base in effect on the date hereof is $                            ;

(vi)          Total Revolving
Credit Exposures on the date hereof (i.e., outstanding principal amount of
Loans and total LC Exposure) is $                          ;
and

(vii)         Pro forma total Revolving Credit
Exposures (giving effect to the requested Borrowing) is $                            ;
and

(viii)        Location and number
of the Borrower’s account to which funds are to be disbursed, which shall
comply with the requirements of Section 2.05 of the Credit
Agreement, is as follows:

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 B-1
 

The undersigned certifies that he/she is the                           
of the Borrower, and that as such he/she is authorized to execute this
certificate on behalf of the Borrower. 
The undersigned further certifies, represents and warrants on behalf of
the Borrower that the Borrower is entitled to receive the requested Borrowing
under the terms and conditions of the Credit Agreement.

	
  

  	
  NAMI HOLDING COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 B-2

EXHIBIT C

FORM OF INTEREST ELECTION REQUEST

                              ,
20    

NAMI HOLDING COMPANY, LLC, a
Kentucky limited liability company (the “Borrower”), pursuant to Section 2.04
of the Credit Agreement dated as of January 3, 2007 (together with all
amendments, restatements, supplements or other modifications thereto, the “Credit Agreement”)
among the Borrower, CITIBANK, N.A.,
as Administrative Agent and the other agents and lenders which are or become
parties thereto (unless otherwise defined herein, each capitalized term used
herein is defined in the Credit Agreement), hereby makes an Interest Election
Request as follows:

(i)            The
Borrowing to which this Interest Election Request applies, and if different
options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the
information specified pursuant to (iii) and (iv) below shall be specified for
each resulting Borrowing) is [                ];

(ii)           The
effective date of the election made pursuant to this Interest Election Request
is                           ,
20    ;[and]

(iii)          The
resulting Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing][; and]

[(iv)         [If
the resulting Borrowing is a Eurodollar Borrowing] The Interest Period
applicable to the resulting Borrowing after giving effect to such election is
[                ]].

The undersigned certifies that he/she is the
[                ]
of the Borrower, and that as such he/she is authorized to execute this
certificate on behalf of the Borrower. 
The undersigned further certifies, represents and warrants on behalf of
the Borrower that the Borrower is entitled to receive the requested
continuation or conversion under the terms and conditions of the Credit
Agreement.

	
  

  	
  NAMI HOLDING COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 C-1

EXHIBIT D

FORM OF

COMPLIANCE CERTIFICATE

The undersigned hereby certifies that he/she is the                               
of NAMI HOLDING COMPANY, LLC, a Kentucky
limited liability company (the “Borrower”), and that as such he/she is authorized to
execute this certificate on behalf of the Borrower.  With reference to the Credit Agreement dated
as of January 3, 2007 (together with all amendments, restatements,
supplements or other modifications thereto being the “Agreement”)
among the Borrower, CITIBANK, N.A.,
as Administrative Agent, and the other agents and lenders (the “Lenders”)
which are or become a party thereto, and such Lenders, the undersigned
represents and warrants as follows (each capitalized term used herein having
the same meaning given to it in the Agreement unless otherwise specified):

(a)           The
representations and warranties of the Borrower contained in Article VII of the
Agreement and in the Loan Documents and otherwise made in writing by or on
behalf of the Borrower pursuant to the Agreement and the Loan Documents were
true and correct in all material respects when made, and are repeated at and as
of the time of delivery hereof and are true and correct in all material
respects at and as of the time of delivery hereof, except to the extent such
representations and warranties are expressly limited to an earlier date or the
Majority Lenders have expressly consented in writing to the contrary.

(b)           The
Borrower has performed and complied with all agreements and conditions
contained in the Agreement and in the Loan Documents required to be performed
or complied with by it prior to or at the time of delivery hereof [or specify
default and describe].

(c)           Since
                                  ,
200  , no change has occurred, either in any case or in the
aggregate, in the condition, financial or otherwise, of the Borrower or any
Subsidiary which could reasonably be expected to have a Material Adverse Effect
[or specify event].

(d)           There
exists no Default or Event of Default [or specify Default and describe].

(e)           Attached
hereto are the detailed computations necessary to determine whether the
Borrower is in compliance with Section 9.01 and Section 8.14
as of the end of the [fiscal quarter][fiscal year] ending
[                              ].

EXECUTED AND DELIVERED this                   
day of                     ,
20    .

	
  

  	
  NAMI HOLDING COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 D-1
 

For the Quarter/Year
ended                                       (“Statement Date”)

 

SCHEDULE 2

to the Compliance
Certificate

($ in 000’s)

	
  I.              Section
  9.01(a) – Interest Coverage Ratio.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A.            EBITDA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.             consolidated
  net income, less

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.             non-cash
  revenue or expense associated with Swap Agreements resulting from FAS 133, less

  	
   

  	
  $

  	
  (                           

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  3.             income
  or plus loss from discontinued operations and extraordinary items, plus

  	
   

  	
  $

  	
  (                           

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  4.             income
  taxes, plus

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.             interest
  expense, plus

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.             depreciation,
  plus

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.             depletion,
  plus

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.             amortization,
  plus

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.             non-cash
  and extraordinary items

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.           Total EBITDA

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B.            Interest Expense

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  C.            Ratio (Line I.A.10 ÷
  Line I.B)

  	
   

  	
  to 1.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Minimum Required: 2.5
  to 1.0

  	
   

  	
   

  	
   

  

 

 D-2
 

 

	
  II.            Section 9.01(b) –
  Ratio of Total Debt to EBITDA.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A.            Total Debt

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.             Debt,
  less

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.             Non-cash
  obligations under FAS 133, less

  	
   

  	
  $

  	
  (                           

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  3.             Accounts
  payable and other accrued liabilities not greater than 60 days past due or
  which are being contested in good faith

  	
   

  	
  $

  	
  (                           

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  4.             Total
  Debt

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B.            EBITDA (amount on
  Line I.A.10)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  C.            Ratio (Line II.A.4 ÷
  Line II.B)

  	
   

  	
  to 1.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Maximum Permitted:  4.0 to 1.0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  III.           Section 9.01(c) –
  Current Ratio.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A.            Current Assets  (including Borrowing Base availability)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B.            Current Liabilities (excluding
  current maturities of Indebtedness owed to Lenders)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  C.            Ratio (Line III.A ÷
  Line III.B):

  	
   

  	
  to 1.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Minimum Required:  1.0 to 1.0

  	
   

  	
   

  	
   

  

 

 D-3

EXHIBIT E

SECURITY INSTRUMENTS

1.                                        Guaranty
Agreements dated as of January 3, 2007 by each Guarantor, in favor of the
Administrative Agent and the Lenders.

2.                                        Limited
Liability Company Interests Security Agreement dated as of January 3,
2007, by Borrower in favor of the Administrative Agent and the Lenders.

3.                                        Financing
Statements in respect of item 2, by the Borrower - Kentucky Secretary of
State.

4.                                        Mortgage dated as of January 3, 2007 – Trust
Energy Company, LLC – Kentucky – in favor of the Administrative Agent for the
benefit of the Lenders.

5.                                        Mortgage
dated as of January 3, 2007
– Trust Energy Company, LLC – Campbell County, Tennessee – in favor of Richard
C. Raines, as Trustee for the benefit of the Administrative Agent and the
Lenders.

6.                                        Amended
and Restated Mortgages dated as of
January 3, 2007 – Nami Resources Company L.L.C. (amending and
restating 3/23/01 Mortgage to Bank of Texas) – in favor of the Administrative Agent for the benefit of the Lenders.

7.                                        Amended
and Restated Mortgages dated as of January 3,
2007 – Nami Resources Company L.L.C. (amending and restating
3/23/01 Pipeline Mortgage to Bank of Texas) – in favor of the Administrative Agent for the benefit of the Lenders.

8.                                        Amended
and Restated Mortgage dated as of
January 3, 2007 – Nami Resources Company L.L.C. (amending and
restating 7/18/01 Mortgage to Bank of Texas) – in favor of the Administrative Agent for the benefit of the Lenders.

9.                                        Amended
and Restated Mortgages dated as of
January 3, 2007 – Ariana Energy, LLC (amending and restating
3/16/06 Mortgage to Bank of Texas as Agent) – in favor of Richard C. Raines, as
Trustee for the benefit of the Administrative Agent and the Lenders.

10.                                 Financing
Statements for Mortgages.

a.                                       Borrower
- Kentucky Secretary of State

b.                                      Ariana
Energy, LLC - Tennessee Secretary of State

c.                                       Trust
Energy Company, LLC - Kentucky Secretary of State

d.                                      Nami
Resources Company L.L.C. – Kentucky Secretary of State

 E-1

EXHIBIT F

FORM OF ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (the “Assignment and
Assumption”) is dated as of the Effective Date set forth below
and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, the “Credit Agreement”), receipt of a copy of which is
hereby acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby
agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby
irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as
of the Effective Date inserted by the Administrative Agent as contemplated
below (i) all of the Assignor’s rights and obligations in its capacity as a
Lender under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of
the Assignor under the respective facilities identified below (including any
letters of credit and guarantees included in such facilities) and (ii) to the extent
permitted to be assigned under applicable law, all claims, suits, causes of
action and any other right of the Assignor (in its capacity as a Lender)
against any Person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered
pursuant thereto or the loan transactions governed thereby or in any way based
on or related to any of the foregoing, including contract claims, tort claims,
malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i)
above (the rights and obligations sold and assigned pursuant to clauses (i) and
(ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

	
  1.

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Assignee:

  	
   

  	
   

  
	
   

  	
   

  	
  [and is an Affiliate/Approved Fund of [identify
  Lender](1)]

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative Agent:

  	
  Citibank, N.A., as the administrative agent under
  the Credit Agreement

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Credit Agreement:

  	
  The Credit Agreement dated as of January 3,
  2007 among Nami Holding Company, LLC, the Lenders parties thereto, Citibank,
  N.A., as Administrative Agent, and the other agents parties thereto

  

 

(1)           Select as
applicable.

 F-1
 

6.             Assigned Interest:

 

	
  Commitment

  Assigned

  	
   

  	
  Aggregate Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage Assigned

  of

  Commitment/Loans(2)

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  	
   

  

 

 

Effective Date:                            
      , 20      
[TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE
OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this
Assignment and Assumption are hereby agreed to:

	
  

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

 

(2) Set forth, to at least 9 decimals, as a percentage of the
Commitment/Loans of all Lenders thereunder.

 

 F-2
 

[Consented to and](3)
Accepted:

 

	
  CITIBANK, N.A.,

  
	
  as Administrative Agent

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
  [Consented to:](4)

  
	
   

  
	
  [NAME OF RELEVANT PARTY]

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

(3) To be added only if the consent of the Administrative Agent is
required by the terms of the Credit Agreement.

(4) To be added only if the consent of the Borrower and/or other
parties (e.g. Issuing Bank) is required by the terms of the Credit Agreement.

 

 F-3
 

ANNEX 1

 

STANDARD TERMS AND
CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.  Representations and Warranties.

1.1   Assignor.  The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other
Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of the Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

1.2.  Assignee.  The Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the Credit
Agreement that are required to be satisfied by it in order to acquire the
Assigned Interest and become a Lender, (iii) from and after the Effective Date,
it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it is sophisticated with respect
to decisions to acquire assets of the type represented by the Assigned Interest
and either it, or the person exercising discretion in making its decision to
acquire the Assigned Interest, is experienced in acquiring assets of such type,
(v) it has received a copy of the Credit Agreement, together with copies of the
most recent financial statements delivered pursuant to Section 8.01
thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Lender, and (vi) if it is a
Foreign Lender, attached to the Assignment and Assumption is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

 F-4
 

2.   Payments.    From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts which have accrued to but excluding the Effective Date
and to the Assignee for amounts which have accrued from and after the Effective
Date.

3.  General Provisions. This Assignment
and Assumption shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns.  This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument.  Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by telecopy
shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption.  This
Assignment and Assumption shall be governed by, and construed in accordance
with, the law of the State of Texas.

 F-5

EXHIBIT G

AFFIDAVIT OF PAYMENT OF TRADE BILLS

TO:         Citibank, N.A., as Administrative Agent

Reference is made to that certain Credit Agreement
among NAMI HOLDING COMPANY, LLC, the Lenders
from time to time party thereto, and CITIBANK, N.A., as Administrative Agent dated as of
January 3, 2007 (the “Credit  Agreement”). The
terms used herein shall have the same meanings as provided therefor in the
Credit Agreement, unless the context hereof otherwise requires or provides.

The undersigned Annie Muniz, the Controller of NRC,
Ariana and TEC, LLC, HEREBY CERTIFIES on behalf of NRC, Ariana Energy, LLC and
Trust Energy Company, LLC to the Administrative Agent that, after reasonable
investigation and except to the extent indicated on Schedule I (if no Schedule
I is attached, then there are no such exceptions), she has no knowledge of
the existence of unpaid debts owing to Persons for the furnishing of goods,
labor, services or materials in connection with the Mortgaged Property, which
debts are more than 60 days past due and which debts if unpaid could result in
the creation of a lien against such Mortgaged Property.

Executed on the date of the notary certification below
to be effective as of January       , 2007.

 

 

	
  

  	
   

  	
   

  
	
   

  	
  Annie Muniz, on behalf of Nami Resources

  Company L.L.C., Ariana Energy, LLC and Trust

  Energy Company, LLC

  
	
   

  	
   

  
	
  STATE OF TEXAS

  	
  §

  	
   

  
	
   

  	
  §

  	
   

  
	
  COUNTY OF HARRIS

  	
  §

  	
   

  
	
   

  	
   

  	
   

  
	
  SWORN TO AND
  SUBSCRIBED before me on January       ,
  2007, by Annie Muniz.

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary Public, State of Texas

  

 

 1

EXHIBIT H

PROPERTY CERTIFICATE

TO:         Citibank, N.A., as Administrative Agent

Reference is made to that certain Credit Agreement
dated as of January 3, 2007 (the “Credit Agreement”), among NAMI HOLDING COMPANY, LLC, the Lenders from time to time
party thereto, and CITIBANK, N.A., as
Administrative Agent.  The defined terms
used in this Certificate shall have the same meanings as provided therefor in
the Credit Agreement, unless the context hereof otherwise requires or provides.
This is the Property Certificate referred to in the Credit Agreement.

                                            
(“Mortgagor”) has mortgaged to the
Administrative Agent its entire interest in the Mortgaged Property.  Mortgagor HEREBY
CERTIFIES to the Administrative Agent that the responses for items A
through E below are true, complete and correct in all material respects as
combined and described on the             
page exhibit to this Property Certificate for each Mortgaged Property owned by
Mortgagor:

A.            Well, lease or unit name, as appropriate.

B.            Operator’s name and address.

C.            Lease number or other designation used by payor to
identify lease or leases in accounting for revenues, costs and joint interest
transactions.

D.            The ownership interest of Mortgagor with respect
to the well, lease or unit. Such ownership interest does and will entitle Mortgagor to receive a
decimal share of all oil, gas or other hydrocarbons produced from, or allocated
to, such well or unit equal to not less than the decimal share set forth in the
column headed “Net
Revenue Interest.”
Such ownership interest shall cause Mortgagor to be obligated to bear a decimal
share of the cost of the operation of such well, lease or unit equal to not
more than the decimal share set forth in the column headed “Working Interest.”

E.             Attached is a description of the underlying lease or
leases or units including the names of the lessor and lessee, the date of the
lease or unit, the recording information of such lease or unit, a complete
description of assignments and farmouts of such lease or unit and a complete
legal description of the property covered thereby.

All of the information listed on the attachments to
this Property Certificate is true, complete and correct in all material
respects. This Property Certificate is given for the purpose of inducing the
Lenders to enter into the Credit Agreement, and the undersigned recognizes that
the Lenders are relying upon this Property Certificate in connection with the
transactions

 1
 

contemplated by the Loan
Agreement and that but for the statements made herein, the Lenders would not
enter into the Credit Agreement.

EXECUTED on the date of the notary certification below
to be effective as of January       , 2007.

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Scott Gilbert

  	
   

  
	
   

  	
   

  	
  Vice President

  	
   

  
					

 

SWORN TO AND
SUBSCRIBED before me this           day
of January, 2007, by Scott Gilbert, a Vice President of                                      ,
a                         
limited liability company, on behalf of said limited liability company.

 

 

 

	
  

  	
   

  	
   

  
	
   

  	
  Notary Public in and for

  
	
   

  	
  the State of Kentucky

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission
  expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

 2

EXHIBIT I

RECONCILIATION SCHEDULE

TO:         Citibank, N.A., as Administrative Agent

Reference is made to that certain Credit Agreement
among NAMI HOLDING COMPANY, LLC, the Lenders
from time to time party thereto, and CITIBANK, N.A., as
Administrative Agent  dated as of January 3, 2007 (the “Credit Agreement”).  The defined terms used herein have the same
meanings as are provided in the Credit Agreement.  This is the Reconciliation Schedule described
in the Credit Agreement.

The Borrower has previously furnished the
Administrative Agent with a reserve appraisal prepared by Netherland Sewell
& Associates, Inc., as of July 1, 2006 (the “Reserve
Appraisal”), which appraises Oil and Gas Properties owned by the
Borrower.  The names on the Oil and Gas
Properties listed on the Reserve Appraisal vary from the names of the Oil and
Gas Properties mortgaged to the Administrative Agent pursuant to the
Mortgages.  Attached to this
Reconciliation Schedule is a chart which reconciles the discrepancies in these
names.  The undersigned certifies
individually and on behalf of the Borrower as follows:

(a)                                  Each well and unit that is described on
the exhibits attached to the Mortgages is also listed in the Reserve Appraisal
and on the attached reconciliation chart.

(b)                                 The property listed in column A of
the attached reconciliation chart which has the same number as the property
listed in column B of the attached reconciliation chart is one and the
same property.

IN WITNESS WHEREOF, the undersigned has executed this
Reconciliation Schedule as of         ,
2007.

 

 

	
  

  	
   

  
	
   

  	
                               ,
  as                                
  of Nami

  
	
   

  	
  Holding Company, LLC

  

 

 1
 

PROPERTY RECONCILIATION
CHART

The information listed in
column A is reproduced exactly from the Reserve Appraisal.  The information listed in column B is
reproduced exactly from the descriptions attached to the Mortgages.  The property listed in column A which has the
same number as the property listed in column B is one and the same
property.  If a property in column B is
left blank, it is not mortgaged to Lender.

 

	
  A

  Reserve Appraisal

  	
   

  	
  B

  Mortgage Exhibits

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  	
  WI

  	
   

  	
  NRI

  	
   

  	
   

  	
   

  	
  Name

  	
   

  	
  WI

  	
   

  	
  NRI

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  13.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  14.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  15.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  16.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  17.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  18.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  19.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 2
 

 

	
  A

  Reserve Appraisal

  	
   

  	
  B

  Mortgage Exhibits

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  	
  WI

  	
   

  	
  NRI

  	
   

  	
   

  	
   

  	
  Name

  	
   

  	
  WI

  	
   

  	
  NRI

  	
   

  
	
  21.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  21.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  23.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  25.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  26.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  27.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  28.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  29.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  30.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  31.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  32.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  33.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  34.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  35.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  36.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  37.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  38.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  39.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  40.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  41.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  42.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  43.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  44.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 3
 

 

	
  A

  Reserve Appraisal

  	
   

  	
  B

  Mortgage Exhibits

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  	
  WI

  	
   

  	
  NRI

  	
   

  	
   

  	
   

  	
  Name

  	
   

  	
  WI

  	
   

  	
  NRI

  	
   

  
	
  45.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  45.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  46.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  47.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  48.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  48.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 4

EXHIBIT J

PARTIAL RELEASE OF LIEN

	
  STATE OF
                       

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF
                   

  	
  §

  

 

PARTIAL RELEASE OF LIEN
dated as of       , 200    ,
is from CITIBANK, N.A., a national banking
association having an office at One Lincoln Park, 8401 N. Central Expressway,
Suite 500, LB 36, Dallas, Texas 75225, as administrative agent (the “Administrative Agent”) for the
Lenders (as defined in the Mortgage referred to below) in favor of           [Mortgagor]                                                    (“Mortgagor”).

R
E C I T A L S

Pursuant to that certain
Mortgage, Security Agreement, Assignment of Production and Financing Statement
dated as of                           ,
2007 (the “Original Mortgage”),
Mortgagor (i) granted, bargained, sold, mortgaged, warranted, assigned,
transferred and conveyed unto the Administrative Agent, as collateral agent for
the ratable benefit of the Lenders (as defined in the Mortgage), all of
Mortgagor’s right, title and interest in and to certain oil and gas properties
and interests more particularly described in the Mortgage, including the oil
and gas leases described on Exhibit A attached hereto and incorporated herein
by reference (collectively the “Leases”) and (ii) transferred, assigned,
warranted and conveyed to the Administrative Agent for the pro rata and pari
passu use and benefit of such Lenders the production (and the proceeds thereof)
from said oil and gas wells and interests located on the Leases.

The Mortgage has been
recorded, among other places, in the Official Public Records of                   County,
              
at Book           , Page             
on     , 2007.

The Mortgagor has requested
that the Administrative Agent release from the lien and security interest of
the Mortgage certain interests in the Leases as hereinafter defined (the “Released Property”)

Agreement

As used in this Partial
Release of Lien, the following terms shall have the following meanings:

Section 12.17.        “Released Property” means the Released
Subsurface Intervals, the Released Interests and the Released Leases, as such
terms are herein defined.

Section 12.18.        “Released Subsurface Intervals” shall
with respect the Leases described in Exhibit A and included in the field
specified in Exhibit A, all subsurface formations above and below the Producing
Strata for such field as specified for such field in Exhibit A.

 1
 

Section 12.19.        “Released Interests” means sixty five
percent (65%) of Mortgagor’s interest in and to the Leases described in Exhibit
A and included in the field specified in Exhibit A, insofar as said Leases
cover the Producing Strata for such field as specified in Exhibit A and only
insofar as said Leases cover acreage outside the boundaries of the production
unit for a well located in the field

[Alternative 1 (Kentucky): 
being the area configured in a circle with a diameter of 1,000 feet (or
approximately 18.03 acres) around such well, or such greater or lesser area as
may have been established by the relevant Kentucky regulatory authority.]

 

[Altnernative 2 (Tennessee): 
being an area configured in a square or rectangle containing 20 acres
centered on the well bore, or such greater or lesser area as has been
established for such well by the relevant Tennessee regulatory authority.]

Section 12.20.        “Released Leases” means the oil and gas
leases described in Exhibit B attached hereto.

NOW THEREFORE, in
consideration of the payment of One Dollar ($1.00) and other good and valuable
consideration, the receipt, sufficiency and adequacy of which are hereby
acknowledged the Administrative Agent, as administrative agent for the Lenders,
as the holders of the indebtedness secured by the Mortgage, hereby releases
from the lien and security interest of the Mortgage, without any
representation, warranties or recourse whatsoever, the Released Property;
provided, however, that this is a partial release only and shall in no way
affect the lien and security interest of the Mortgage or the assignment of
production therein contained insofar as such lien and security interest or
assignment relates to any property or interest, including Mortgagor’s interest
in the Leases, other than the Released Property, and the Mortgage is hereby
ratified, approved and confirmed by the parties hereto in all respects except
as expressly set forth in this Partial Release of Lien.  This Partial Release of Lien shall not affect
the obligation of the Mortgagor to pay the indebtedness secured by the Mortgage
according to its tenor and effect

The Administrative Agent, as
collateral agent for the Lenders, as the holders of the indebtedness secured by
the Mortgage, hereby releases, without any representations, warranties or
recourse whatsoever, all of the right, title and interest in and to the
production from the Released Interests and all of the income, rents, royalties,
revenue, issues, profits and proceeds thereof.

This Partial Release of Lien
may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same
document.

[Signature pages follow]

 2
 

IN WITNESS WHEREOF, the
Administrative Agent has caused to be executed and delivered this Partial
Release of Lien on the date of the notary certification below to be effective
as of the date and year first above written.

	
  

  	
  CITIBANK, N.A., as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Angela McCracken

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF TEXAS

  	
  §

  	
   

  
	
   

  	
  §

  	
   

  
	
  COUNTY OF DALLAS

  	
  §

  	
   

  

 

This instrument
was acknowledged before me on the      day of       ,
200    , by Angela McCracken, a Vice President of Citibank,
N.A., a national banking association on behalf of said bank.

 

	
  

  	
   

  	
   

  
	
   

  	
  Notary Public, State of Texas

  

 

 3
 

IN WITNESS
WHEREOF, the Mortgagor has caused to be executed and delivered this Partial
Release of Lien on the date of the notary certification below to be effective
as of the date and year first above written.

	
  

  	
  [Mortgagor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STATE OF

  	
  §

  	
   

  	
   

  	
   

  
	
   

  	
  §

  	
   

  
	
  COUNTY OF

  	
  §

  	
   

  
						

 

This instrument
was acknowledged before me on the      day of       ,
200    , by                                 ,
                                                                            of
                                                      ,
a                                                         ,
on behalf of said                                                                     .

	
  

  	
   

  	
   

  
	
   

  	
  Notary Public, State of Oklahoma

  	
   

  

 

 4

EXHIBIT A

to

Partial Release of Lien

EXHIBIT B

to

Partial Release of Liens

SCHEDULE 2.09(c)(1)

PROVED DEVELOPED OIL AND GAS PROPERTIES

The following is a listing of wells located on oil and gas leases which
are part of the Oil and Gas Properties under the Credit Agreement as of January
3, 2007.  The wells (with the number of
the permit for such well issued by the relevant regulatory agency) are listed
by the field in which such wells are located. 
It is agreed that with respect to the wells in any field as set forth
below that the Proved Developed Oil and Gas Properties shall include those
reserves which are within the Producing Strata in the Production Unit for such
wells.

 

	
  Wartburg Field

  	
   

  
	
  Morgan County, Tennessee

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Monteagle Formation as found in the Johnny Dagley #1 well at the subsurface
depth of 1,800 feet (the location of which well is contained in Well Permit
Number 10280) and 100 feet below the stratigraphic equivalent of the base of
the Chattanooga Shale Formation as found in the Johnny Dagley #1 well as at a
subsurface depth of 2,272 feet (the location of which is contained in Well
Permit Number 10280).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Martin Heidel #1

  	
   

  	
  9983

  	
   

  
	
  MCCARTT 1

  	
   

  	
  9991

  	
   

  
	
  MCCARTT 2

  	
   

  	
  10013

  	
   

  
	
  McCartt #3

  	
   

  	
  10055

  	
   

  
	
  Chilton #1

  	
   

  	
  10202

  	
   

  
	
  Long #1

  	
   

  	
  10269

  	
   

  
	
  Long #2

  	
   

  	
  10267

  	
   

  
	
  MCCARTT 6

  	
   

  	
  10274

  	
   

  
	
  Dagley #1

  	
   

  	
  10280

  	
   

  
	
  MCCARTT 7

  	
   

  	
  10385

  	
   

  
	
  Long #3

  	
   

  	
  10379

  	
   

  
	
  MCCARTT 8

  	
   

  	
  10981

  	
   

  
	
  MCCARTT 9

  	
   

  	
  10982

  	
   

  

 

 1
 

 

	
  WindrockField

  	
   

  
	
  Anderson County, Tennessee

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Monteagle Formation as found in the Coal Creek #30 well at the subsurface depth
of 2,857 feet (the location of which well is contained in Well Permit Number
10800) and 100 feet below the stratigraphic equivalent of the base of the
Chattanooga Shale Formation as found in the Coal Creek #30 well as at a
subsurface depth of 3,318 feet (the location of which is contained in Well
Permit Number 10800).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Coal Creek Mining &
  Manufacturing #1

  	
   

  	
  1131

  	
   

  
	
  Coal Creek Mining &
  Manufacturing #1

  	
   

  	
  9885

  	
   

  
	
  Coal Creek Mining &
  Manufacturing C #2

  	
   

  	
  9892

  	
   

  
	
  Coal Creek Mining &
  Mfg Co #3

  	
   

  	
  10072

  	
   

  
	
  Coal Creek
  Mining/Ariana #5

  	
   

  	
  10064

  	
   

  
	
  R D Parten #1

  	
   

  	
  10054

  	
   

  
	
  Coal Creek Mining #4

  	
   

  	
  10095

  	
   

  
	
  Ariana/Hoskins #1

  	
   

  	
  10080

  	
   

  
	
  Coal Creek Mining #6

  	
   

  	
  10133

  	
   

  
	
  Coal Creek Mining #7

  	
   

  	
  10109

  	
   

  
	
  Coal Creek Mining &
  MFG #8

  	
   

  	
  10590

  	
   

  
	
  Coal Creek Mining #9

  	
   

  	
  10134

  	
   

  
	
  Coal Creek Mining #10

  	
   

  	
  10175

  	
   

  
	
  Coal Creek Mining #11

  	
   

  	
  10157

  	
   

  
	
  Coal Creek #12

  	
   

  	
  10297

  	
   

  
	
  Coal Creek Mining #13

  	
   

  	
  10305

  	
   

  
	
  Coal Creek Mining #14

  	
   

  	
  10375

  	
   

  
	
  Coal Creek #15

  	
   

  	
  10362

  	
   

  
	
  Coal Creek Mining #16

  	
   

  	
  10301

  	
   

  
	
  Coal Creek Mining #17

  	
   

  	
  10430

  	
   

  
	
  R. D. Parten #2

  	
   

  	
  10397

  	
   

  
	
  RD Parten etal #3

  	
   

  	
  10421

  	
   

  
	
  Mark E. Lively #1

  	
   

  	
  10497

  	
   

  
	
  Coal Creek Mining &
  MFG Co #18

  	
   

  	
  10522

  	
   

  
	
  Coal Creek Mining &
  Mfg. #19

  	
   

  	
  10532

  	
   

  
	
  Coal Creek #20

  	
   

  	
  10802

  	
   

  
	
  Coal Creek Mining &
  MFG #21

  	
   

  	
  10540

  	
   

  
	
  Coal Creek Mining #22

  	
   

  	
  10607

  	
   

  
	
  Half Moon #3

  	
   

  	
  10593

  	
   

  
	
  Coal Creek Mining &
  Mfg. Co. #24

  	
   

  	
  10646

  	
   

  
	
  The Coal Creek Company
  #25

  	
   

  	
  10698

  	
   

  
	
  Coal Creek #26

  	
   

  	
  10713

  	
   

  
	
  The Coal Creek Company #27

  	
   

  	
  10714

  	
   

  

 

 2
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Coal Creek #28

  	
   

  	
  10801

  	
   

  
	
  Hoskins #2

  	
   

  	
  10745

  	
   

  
	
  Coal Creek #30

  	
   

  	
  10800

  	
   

  
	
  Coal Creek #31

  	
   

  	
  10933

  	
   

  
	
  Coal Creek #33

  	
   

  	
  10932

  	
   

  
	
  R.D. Parten #4

  	
   

  	
  11007

  	
   

  
	
  Windrock #2

  	
   

  	
  1212

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Windrock/ARM #4

  	
   

  	
  8281

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Windrock/ARM #5

  	
   

  	
  8294

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Co Windrock/Arm #6

  	
   

  	
  8285

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Windrock/Arm #7

  	
   

  	
  8287

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Windrock/Arm #8

  	
   

  	
  8335

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Windrock/Arm #9

  	
   

  	
  8345

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Windrock/Arm #11

  	
   

  	
  8321

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Co Windrock/Arm #12

  	
   

  	
  8374

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Co Windrock/Arm #13

  	
   

  	
  8384

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Co. Windrock/Arm #14

  	
   

  	
  8407

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Company Windrock/Arm #15

  	
   

  	
  8439

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Co. Windrock/Arm #16

  	
   

  	
  8447

  	
   

  
	
  Coal Creek Mining and
  Manufacturing Co. Windrock/Arm #18

  	
   

  	
  8461

  	
   

  
	
  Coal Creek Mining &
  MFG., Co. Windrock/ARM #19

  	
   

  	
  8602

  	
   

  
	
  Coal Creek-Windrock/ARM
  #23

  	
   

  	
  8608

  	
   

  
	
  Buck #1

  	
   

  	
  10942

  	
   

  

 

	
  Asher Field

  	
   

  
	
  Bell and Knox Counties, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the Asher #36 well at the subsurface depth of
2,824 feet (the location of which well is contained in Well Permit Number
95451) and 100 feet below the stratigraphic equivalent of the base of the
Corniferous Formation as found in the Asher #36 well as at a subsurface depth
of 3,681 feet (the location of which is contained in Well Permit Number 95451).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Asher Land &
  Mineral LTD #1

  	
   

  	
  86953

  	
   

  
	
  Asher Land &
  Mineral LTD #11

  	
   

  	
  87422

  	
   

  
	
  Asher Land &
  Mineral LTD #12

  	
   

  	
  87564

  	
   

  
	
  Asher Land &
  Mineral LTD #15

  	
   

  	
  91895

  	
   

  
	
  Asher Land &
  Mineral #18

  	
   

  	
  91900

  	
   

  
	
  Miller Brothers
  Construction Et Al #2

  	
   

  	
  94530

  	
   

  
	
  Asher Land &
  Mineral LTD #22

  	
   

  	
  94838

  	
   

  
	
  Asher Land & Mineral LTD #25

  	
   

  	
  95468

  	
   

  

 

 3
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Asher Land &
  Mineral LTD #20

  	
   

  	
  95748

  	
   

  
	
  Asher Land &
  Mineral LTD #26

  	
   

  	
  95749

  	
   

  
	
  Asher Land &
  Mineral LTD #27

  	
   

  	
  95750

  	
   

  
	
  Asher Land &
  Mineral LTD #28

  	
   

  	
  95751

  	
   

  
	
  Asher Land &
  Mineral LTD #24

  	
   

  	
  95456

  	
   

  
	
  Asher Land &
  Mineral LTD #29

  	
   

  	
  96050

  	
   

  
	
  Asher Land &
  Mineral LTD #14B

  	
   

  	
  96158

  	
   

  
	
  Asher Land &
  Mineral LTD #30

  	
   

  	
  96316

  	
   

  
	
  Asher Land &
  Mineral LTD #32

  	
   

  	
  96346

  	
   

  
	
  Asher Land &
  Mineral LTD #31

  	
   

  	
  96503

  	
   

  
	
  Asher Land &
  Mineral LTD #33

  	
   

  	
  96400

  	
   

  
	
  Asher Land &
  Mineral LTD #34

  	
   

  	
  96442

  	
   

  
	
  Asher Land &
  Mineral LTD #35

  	
   

  	
  96437

  	
   

  
	
  Asher Land &
  Mineral LTD #36

  	
   

  	
  96451

  	
   

  
	
  Taylor Heirs Et Al#1

  	
   

  	
  96863

  	
   

  
	
  Taylor, Harrison Heirs
  #2

  	
   

  	
  96810

  	
   

  
	
  Taylor Heirs Et Al #3

  	
   

  	
  96864

  	
   

  
	
  Slusher, Matt #1(Matt
  Slusher Heirs #1)

  	
   

  	
  96905

  	
   

  
	
  Asher Land &
  Mineral LTD #37

  	
   

  	
  97034

  	
   

  

 

	
  Brushy
  Branch, Artemus and  Flat Lick Field

  	
   

  
	
  Knox County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Maxon Formation as found in the Nally & Hamilton et al #9 well at the
subsurface depth of 2,314 feet (the location of which well is contained in Well
Permit Number 95828) and 100 feet below the stratigraphic equivalent of the
base of the Chattanooga Shale Formation as found in the Nally & Hamilton et
al #9 well as at a subsurface depth of 3,178 feet (the location of which is
contained in Well Permit Number 95828).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Clyde Hammond (Hammons,
  Clyde Unit #CH-1)

  	
   

  	
  45130

  	
   

  
	
  Chester Hammons
  (Hammons, Chester multiple wells)

  	
   

  	
  57371

  	
   

  
	
  Columbus Mills (Mills,
  Columbus #1)

  	
   

  	
  49664

  	
   

  
	
  R.E. Mills (multiple
  wells)

  	
   

  	
  46916

  	
   

  
	
  Arena (multiple wells)

  	
   

  	
  39272

  	
   

  
	
  Nora Campbell (multiple
  wells)

  	
   

  	
  41124

  	
   

  
	
  Parker 1,2,3 (multiple
  wells)

  	
   

  	
  41400

  	
   

  
	
  Ron Dickson # 1

  	
   

  	
  45127

  	
   

  
	
  Valentine

  	
   

  	
  91169

  	
   

  
	
  Valentine (NRC)

  	
   

  	
  45128

  	
   

  
	
  Hampton #1(New #442032)
  (Martin Hampton #1)

  	
   

  	
  91881

  	
   

  
	
  Hamilton #1(New#442033) (Rondel Hamilton #1)

  	
   

  	
  91882

  	
   

  

 

 4
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Hampton #2(New #442034)
  (Martin Hampton #2)

  	
   

  	
  93162

  	
   

  
	
  B. Hembree #1 (New
  #442035) (Hembree, Barry Et Al #1)

  	
   

  	
  93163

  	
   

  
	
  Sowders Etal #1(New #442036)
  (Sowders, Ernest Et Al #1)

  	
   

  	
  93642

  	
   

  
	
  Blevins #2(New #442037)
  (Blevins, Burchell Et Al #2)

  	
   

  	
  93477

  	
   

  
	
  Knox Traders Group #1
  (442038) (Knox Traders Group #1)

  	
   

  	
  94166

  	
   

  
	
  Lewis Partin #1(New
  #442039) (Partin, Lewis #1)

  	
   

  	
  93475

  	
   

  
	
  Alva Howard/Payne
  #1(Howard, Alva & Payne, Lonnie #1)

  	
   

  	
  94446

  	
   

  
	
  Sowder Heirs Et Al #1
  (Sowders Heirs Et Al #1)

  	
   

  	
  93301

  	
   

  
	
  Alva Howard Et Al
  #442042 (Howard, Alva Et Al #2)

  	
   

  	
  93476

  	
   

  
	
  H. Sowders #1B(New
  #442043) (Sowders, Harry #1B)

  	
   

  	
  93302

  	
   

  
	
  Blevins #1(New #442044)
  (Blevins Et Al #1)

  	
   

  	
  93857

  	
   

  
	
  Kenneth Campbell #1
  (Campbell, Kenneth #1)

  	
   

  	
  93606

  	
   

  
	
  Hamilton #2(New
  #442049) (Rondal Hamilton #2)

  	
   

  	
  93300

  	
   

  
	
  Hampton #3(New #442050)
  (Martin Hampton #3)

  	
   

  	
  93474

  	
   

  
	
  Corb Hembree #1
  (Hembree, Corb #1)

  	
   

  	
  94165

  	
   

  
	
  J.T. Detherage #1
  (Detherage, J T #1)

  	
   

  	
  93608

  	
   

  
	
  Marcum #1 (Marcum, Jim
  #1)

  	
   

  	
  93607

  	
   

  
	
  NALLY& HAMILTON #1
  (Nally & Hamilton Et Al #1)

  	
   

  	
  95901

  	
   

  
	
  NALLY & HAMILTON
  ETAL 2 (Nally & Hamillton Et Al #2)

  	
   

  	
  95073

  	
   

  
	
  BRUNER, JOAN #1
  (Bruner, Joan #1)

  	
   

  	
  93704

  	
   

  
	
  Cobb #1 (New # 442062)
  (Cobb, Garrett (UNIT) #1)

  	
   

  	
  94040

  	
   

  
	
  K. Lay Et Al #1 (Lay,
  Kenneth Et Al #1)

  	
   

  	
  93861

  	
   

  
	
  Waligorski #1
  (Waligorski-Stony Fork #1)

  	
   

  	
  93858

  	
   

  
	
  Waligorski #2

  	
   

  	
  82743

  	
   

  
	
  DAVIES #2 (Davies, Sam
  #2)

  	
   

  	
  94159

  	
   

  
	
  Earnest King Et Al
  (King, Ernest Et Al #1)

  	
   

  	
  94378

  	
   

  
	
  Alva Howard #1A (New
  #442068) (Howard, Alva #1A)

  	
   

  	
  94445

  	
   

  
	
  Julie Logan #2 (Logan,
  Julie #2)

  	
   

  	
  94164

  	
   

  
	
  White Log Jellico
  (White Log Jellico Coal #1)

  	
   

  	
  94518

  	
   

  
	
  Julie Logan #1 (Logan,
  Julie Et Al #1)

  	
   

  	
  94501

  	
   

  
	
  Roy Partin #1 (Partin,
  Roy Et Al #1)

  	
   

  	
  94529

  	
   

  
	
  Hamilton #3 (Rondel
  Hamilton Et Al #3)

  	
   

  	
  94638

  	
   

  
	
  Milford Muse (Muse,
  Milford Et Al #1)

  	
   

  	
  94639

  	
   

  
	
  Ted Hampton #1
  (Hampton, Ted #1)

  	
   

  	
  94383

  	
   

  
	
  Nally-Hamilton #3
  (Nally & Hamilton #3)

  	
   

  	
  94711

  	
   

  
	
  Nally-Hamilton #4
  (Nally & Hamilton #4)

  	
   

  	
  94712

  	
   

  
	
  Rita Blevins Et Al #1
  (Blevins, Rita Et Al #1)

  	
   

  	
  94782

  	
   

  
	
  Martin Hampton #4 (Hampton,
  Martin #4)

  	
   

  	
  94764

  	
   

  
	
  Sam Davies #3 (Davies,
  Sam Et Al #3)

  	
   

  	
  94376

  	
   

  
	
  R.BlevinETAL #2
  (Blevins, Rita Et Al #2)

  	
   

  	
  94825

  	
   

  
	
  Matilda Hampton #1
  (Hampton, Matilda Et Al #1)

  	
   

  	
  95002

  	
   

  
	
  Rita Blevins Et Al #2A
  (Blevins, Rita Et Al #2A)

  	
   

  	
  95184

  	
   

  
	
  Detherrage, J T Et Al
  #2

  	
   

  	
  95281

  	
   

  
	
  Nally & Hamilton #5

  	
   

  	
  95096

  	
   

  

 

 5
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  NALLY & HAMILTON #6
  (Nally & Hamilton #6)

  	
   

  	
  95128

  	
   

  
	
  J. T. Detherage #4
  (Detherage, J T #4)

  	
   

  	
  95029

  	
   

  
	
  Sam Davies #1 (TJ)
  (Davies, Samuel E #1)

  	
   

  	
  89143

  	
   

  
	
  Nally & Hamilton
  #2A (Nally & Hamilton Et Al #2A)

  	
   

  	
  95383

  	
   

  
	
  NALLY & HAMILTON #8
  (Nally & Hamilton #8)

  	
   

  	
  95406

  	
   

  
	
  J T Detherage #1 (TJ)

  	
   

  	
  89197

  	
   

  
	
  EQUITABLE #1 (Equitable
  Production Co. #1)

  	
   

  	
  95721

  	
   

  
	
  E. KING #2 (Equitable
  Prod Co/Ernest King #2)

  	
   

  	
  95799

  	
   

  
	
  Ted Hampton #3
  (Hampton, Ted Et Al #3)

  	
   

  	
  96100

  	
   

  
	
  Nally & Hamilton Et
  Al #9

  	
   

  	
  95828

  	
   

  
	
  Equitable Production Co
  Et Al #3

  	
   

  	
  96247

  	
   

  
	
  BAYS HEIRS #1

  	
   

  	
  96528

  	
   

  
	
  JOHN CARTER #1 (Carter,
  John Et Al #1)

  	
   

  	
  96535

  	
   

  
	
  Bays, John Et Al #1

  	
   

  	
  96621

  	
   

  
	
  RON HAMILTON #4
  (Hamilton, Ronald #4)

  	
   

  	
  96661

  	
   

  
	
  White Log Jellico Coal
  Et Al #1

  	
   

  	
  96762

  	
   

  
	
  Davies, Sam #4

  	
   

  	
  96923

  	
   

  
	
  Swan Pond, Inc #1

  	
   

  	
  97181

  	
   

  
	
  Detherage #7
  (Detherage, J T #7)

  	
   

  	
  97213

  	
   

  
	
  Main, John #3

  	
   

  	
  97420

  	
   

  

 

	
  Falls Field

  	
   

  
	
  Whitley County, Kentucky

  

 

Producing Strata: All subsurface formations and depths between the
stratigraphic equivalent of the top of the Big Lime Formation as found in the
CH Development #1 well at the subsurface depth of 1,322 feet (the location of
which well is contained in Well Permit Number 98101) and 100 feet below the
stratigraphic equivalent of the base of the Chattanooga Shale Formation as
found in the CH Development #1 well as at a subsurface depth of 1,944 feet (the
location of which is contained in Well Permit Number 98101).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  C H Development #1

  	
   

  	
  98101

  	
   

  
	
  C H Development #5

  	
   

  	
  98102

  	
   

  
	
  C H Development #4

  	
   

  	
  98391

  	
   

  
	
  C H Development #3

  	
   

  	
  98485

  	
   

  
	
  C H Development #6

  	
   

  	
  98634

  	
   

  
	
  C H Development #2

  	
   

  	
  99274

  	
   

  

 

 6
 

 

	
  Gausdale Field

  	
   

  
	
  Whitley and Knox Counties, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the James Mills et al #1 well at the subsurface
depth of 1,492 feet (the location of which well is contained in Well Permit
Number 98470) and 100 feet below the stratigraphic equivalent of the base of
the Chattanooga  Shale Formation as found
in the James Mills et al #1 well as at a subsurface depth of 2,106 feet (the
location of which is contained in Well Permit Number 98470).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Hensley, R. #1
  (Hensley, Roy #1)

  	
   

  	
  69283

  	
   

  
	
  Clark, J. #1 (Clark,
  Jack #1)

  	
   

  	
  69339

  	
   

  
	
  Siler, WW #1 (Siler,
  Herbert and Willard #1)

  	
   

  	
  69050

  	
   

  
	
  Smith Heirs-Sears
  (Smith Heirs-Sears Unit #1)

  	
   

  	
  68778

  	
   

  
	
  Siler, J.E. #1 (James
  & Willard Siler/Miller/Hill/Mays Unit #1)

  	
   

  	
  68419

  	
   

  
	
  Perkins, K. #1
  (Perkins, Kyle #1)

  	
   

  	
  69199

  	
   

  
	
  Brown, R. #1 (Brown,
  Robert L #1)

  	
   

  	
  71783

  	
   

  
	
  Siler, W. #1 (Siler,
  Willard Et Al #1)

  	
   

  	
  71511

  	
   

  
	
  Brown, R. L. #3 (Brown,
  Robert L Et Al #3)

  	
   

  	
  72224

  	
   

  
	
  Croley, G. #1 (Croley,
  Glen Et Al #1)

  	
   

  	
  71893

  	
   

  
	
  Hensley, R. #2
  (Hensley, Roy Et Al #2)

  	
   

  	
  72130

  	
   

  
	
  Clark, J. #2 (Clark,
  Jack #2)

  	
   

  	
  72408

  	
   

  
	
  A. Bennett #1 (Bennett,
  Alvin Et Al #1)

  	
   

  	
  72035

  	
   

  
	
  Smith Heirs #2

  	
   

  	
  72036

  	
   

  
	
  Ray Hill #1 (Hill, Ray
  Et Al #1)

  	
   

  	
  71998

  	
   

  
	
  Smith-Johnson (Donald
  Smith, Fred, Howard & Jeff Johnson Unit #1)

  	
   

  	
  50739

  	
   

  
	
  Mackey-Elswick #1
  (Mackey, Jasper-Elswick, John Unit #1)

  	
   

  	
  68926

  	
   

  
	
  Mackey, J. #1 (Mackey,
  Jasper #1)

  	
   

  	
  68887

  	
   

  
	
  Robert L. Brown #2
  (Brown, Robert L #2)

  	
   

  	
  71782

  	
   

  
	
  Crabtree 1 (Crabtree,
  Alfred Et Al #1)

  	
   

  	
  72225

  	
   

  
	
  S. Hill #4 (Hill, Sammy
  #4)

  	
   

  	
  70954

  	
   

  
	
  W. Siler 2

  	
   

  	
  72227

  	
   

  
	
  Henry Siler 1

  	
   

  	
  68885

  	
   

  
	
  Hill, S. #5 (Hill,
  Sammy Et Al #5)

  	
   

  	
  71999

  	
   

  
	
  Wynn, Willard #1 (Wynn,
  Willard Et Al #1)

  	
   

  	
  72128

  	
   

  
	
  Teague, S. #1 (Teague,
  Stanley #1)

  	
   

  	
  69661

  	
   

  
	
  Teague-Horsley-Lawson

  	
   

  	
  49958

  	
   

  
	
  Stanley Teague 2
  (Teague, Stanley-Bennett, James-Davis, Gladys #2)

  	
   

  	
  69662

  	
   

  
	
  Chandler, R. #1
  (Chandler, Raymond Et Al #1)

  	
   

  	
  71822

  	
   

  
	
  Hill, S. #2 (Hill,
  Sammy #2)

  	
   

  	
  69051

  	
   

  
	
  Bunch Heirs

  	
   

  	
  71781

  	
   

  

 

 7
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Otto Gambrel #2

  	
   

  	
  72198

  	
   

  
	
  P. Hodge #1

  	
   

  	
  68031

  	
   

  
	
  HodgePartinJohnson
  (Hodge, Pauline-Partin, Denver-Johnson, Warren #1)

  	
   

  	
  69045

  	
   

  
	
  Clyde Terrell #2

  	
   

  	
  72418

  	
   

  
	
  Goodwin, Charles #1
  (Goodwin, Charles Et Al #1)

  	
   

  	
  72431

  	
   

  
	
  Hill, R. #3 (Hill, Ray
  Et Al #3)

  	
   

  	
  72449

  	
   

  
	
  Reeves, James #1
  (Reeves, James Et Al #1)

  	
   

  	
  74247

  	
   

  
	
  Carl Wilder # 1

  	
   

  	
  72406

  	
   

  
	
  Hamblin, Mont #1
  (Hamblin, Mont Et Al #1)

  	
   

  	
  74271

  	
   

  
	
  Otto Gambrel #1

  	
   

  	
  74324

  	
   

  
	
  Miles, John #1 (Miles,
  John Et Al #1)

  	
   

  	
  74323

  	
   

  
	
  Calvin Wilson #1
  (Wilson, Calvin Et Al #2)

  	
   

  	
  74312

  	
   

  
	
  Calvin Peace (Peace
  Heirs Et Al #1)

  	
   

  	
  74283

  	
   

  
	
  Clyde Pence #1 (Pence,
  Clyde D #1)

  	
   

  	
  74282

  	
   

  
	
  G.B. Hendrickson (Hendrickson,
  G B Et Al #1)

  	
   

  	
  74348

  	
   

  
	
  Johnson, Howard
  (Johnson, Howard F #1)

  	
   

  	
  72448

  	
   

  
	
  Powers, Albert #1
  (Powers, Albert Et Al #1)

  	
   

  	
  74313

  	
   

  
	
  Louisa Hill #1 (Hill,
  Louisa Et Al #1)

  	
   

  	
  74376

  	
   

  
	
  Loyal Hill #1 (Hill,
  Loyal Et Al #1)

  	
   

  	
  74281

  	
   

  
	
  Cecil Mackey #1

  	
   

  	
  75304

  	
   

  
	
  Myrtle Wood #1

  	
   

  	
  75436

  	
   

  
	
  ‘Chandler, Raymond #2
  (Chandler, Raymond Et Al #2)

  	
   

  	
  75067

  	
   

  
	
  Willard Hubbs #1(Hubbs,
  Willard Et Al #1)

  	
   

  	
  75399

  	
   

  
	
  Sharp #2(Sharp,
  Clifford #2)

  	
   

  	
  75572

  	
   

  
	
  Sharp #3(Sharp,
  Clifford #3)

  	
   

  	
  75571

  	
   

  
	
  Frank Berry #1(Berry,
  Frank Et Al #1)

  	
   

  	
  75642

  	
   

  
	
  Magline Decker
  #1(Decker, Magline Et Al #1)

  	
   

  	
  75739

  	
   

  
	
  Dorman Helton
  #1(Helton, Dorman Et Al #1)

  	
   

  	
  75352

  	
   

  
	
  Emma Woods #1(Woods,
  Emma #1)

  	
   

  	
  75986

  	
   

  
	
  Clark, J. #3(Clark,
  Jack Et Al #3)

  	
   

  	
  75200

  	
   

  
	
  lucy Lawson #1(Lawson,
  Luck Et Al #1)

  	
   

  	
  76019

  	
   

  
	
  Clyde Terrell
  #3(Terrell, Clyde #3)

  	
   

  	
  76025

  	
   

  
	
  Otto Gambrel
  #3(Gambrel, Otto Et Al #3)

  	
   

  	
  76022

  	
   

  
	
  Kathleen Mackey
  #2(Mackey, Kathleen #2)

  	
   

  	
  76024

  	
   

  
	
  Elmer Cox #1(Cox, Elmer
  #1)

  	
   

  	
  75989

  	
   

  
	
  Milford Monhollen
  #1(Monhollen, Milford Et Al #1)

  	
   

  	
  76061

  	
   

  
	
  Mays 1(Mays, Carrie #1)

  	
   

  	
  76084

  	
   

  
	
  Gatliff #1(Gatliff
  Heirs #1)

  	
   

  	
  76023

  	
   

  
	
  B. Hill #1(Hill, Bertha
  Et Al #1)

  	
   

  	
  76133

  	
   

  
	
  Ola Miller (Miller, Ola
  Et Al #1)

  	
   

  	
  76110

  	
   

  
	
  Mackey #3(Mackey,
  Kathleen #3)

  	
   

  	
  76060

  	
   

  
	
  Earl Campbell
  #1(Campbell, Earl Et Al #1)

  	
   

  	
  76135

  	
   

  
	
  Branum #1(Branum, Arthur Et Al #1)

  	
   

  	
  76134

  	
   

  

 

 8
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Otis Mays #1(Mays,
  Ottis #1)

  	
   

  	
  76109

  	
   

  
	
  Jerome Hill #1(Hill,
  Jerome #1)

  	
   

  	
  76186

  	
   

  
	
  Gatliff #2(Gatliff
  Heirs #2)

  	
   

  	
  76185

  	
   

  
	
  Terry Forcht #1

  	
   

  	
  76149

  	
   

  
	
  Clark 1(Clark, Buford
  #1)

  	
   

  	
  68418

  	
   

  
	
  W. Siler #3(Siler,
  Willard Et Al #3)

  	
   

  	
  77278

  	
   

  
	
  Wilder, Carl # 2

  	
   

  	
  77408

  	
   

  
	
  Virgie Faulkner
  #1(Faulkner, Virgie #1)

  	
   

  	
  75567

  	
   

  
	
  Henry Bryant #2(Bryant,
  Henry Et Al #2)

  	
   

  	
  75566

  	
   

  
	
  E. Mayne 1(Mayne,
  Ernest H #1)

  	
   

  	
  81358

  	
   

  
	
  JE Smith(Smith, James
  Eli #1)

  	
   

  	
  81419

  	
   

  
	
  E. Elliott 2(Elliott,
  Ernest A #2)

  	
   

  	
  81602

  	
   

  
	
  Harris 1(Waddell, Roscoe
  Et Al #1)

  	
   

  	
  75690

  	
   

  
	
  Foley 1(Foley, Arthur
  Et Al Unit #1)

  	
   

  	
  82106

  	
   

  
	
  Eugene Clark #7(Clark,
  Egune W Et Al Unit #1)

  	
   

  	
  82334

  	
   

  
	
  J. Collingsworth
  #1(Collingsworth, Jerry #1)

  	
   

  	
  82582

  	
   

  
	
  June Dixon #1(Dixon,
  June #1)

  	
   

  	
  82726

  	
   

  
	
  J. Patrick #1(Patrick,
  Joe #1)

  	
   

  	
  83128

  	
   

  
	
  J.Collingsworth
  #2(Collinsworth, Jerry #2)

  	
   

  	
  82984

  	
   

  
	
  Jackson #3(Jackson,
  Lemuel Et Al Unit #3)

  	
   

  	
  83556

  	
   

  
	
  M. Campbell, Etal
  #1(Campbell, Mary Sue Et Al #1)

  	
   

  	
  84798

  	
   

  
	
  Ray Hyatt #2(Hyatt, Ray
  Et Al #2)

  	
   

  	
  86565

  	
   

  
	
  Buford Clark #2(Clark,
  Buford Et Al #2)

  	
   

  	
  86566

  	
   

  
	
  Grace Rice(Rice, Grace
  Et Al #1)

  	
   

  	
  86600

  	
   

  
	
  J.E. Faulkner(Faulkner,
  JE #1)

  	
   

  	
  86723

  	
   

  
	
  Tommy Gambrel
  #1(Grambrel, Tommy #1)

  	
   

  	
  87709

  	
   

  
	
  Roy Partin, Etal
  #1(Partin, Roy #1)

  	
   

  	
  89764

  	
   

  
	
  Owen Gray #1(Gray, Owen
  #1)

  	
   

  	
  88024

  	
   

  
	
  Jack Foley #1

  	
   

  	
  89383

  	
   

  
	
  Roberta Evans #1

  	
   

  	
  89541

  	
   

  
	
  Forcht #10(Forcht,
  Terry Et Al #10)

  	
   

  	
  89669

  	
   

  
	
  Daugherty Mackey (DP)

  	
   

  	
  81276

  	
   

  
	
  Ruby Engle(Engle, Ruby
  #1)

  	
   

  	
  80939

  	
   

  
	
  Daughtery-Elliot
  #3(Elliot, Ernest Et Al Unit #3)

  	
   

  	
  82110

  	
   

  
	
  Amie Engle, Etal
  #1(Engle, Amie Et Al #1)

  	
   

  	
  82569

  	
   

  
	
  Grant #1 (DP)

  	
   

  	
  82301

  	
   

  
	
  Wentzloff-T.
  Gambrell(Gambrell, Tommy #1)

  	
   

  	
  82451

  	
   

  
	
  Forcht 1-A(Forcht,
  Terry Et Al #1)

  	
   

  	
  82525

  	
   

  
	
  Carter (DP)

  	
   

  	
  82341

  	
   

  
	
  Denvil Moore
  (DP)(Moore, Denvil Unit #1)

  	
   

  	
  82741

  	
   

  
	
  Detherage(Detherage,
  John Et Al Unit #1)

  	
   

  	
  82583

  	
   

  
	
  T. Sears (DP)(Sears,
  Terry #1)

  	
   

  	
  82616

  	
   

  
	
  Forcht 5 (DP)

  	
   

  	
  82745

  	
   

  
	
  TERREL #2 (DP)

  	
   

  	
  82914

  	
   

  

 

 9
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  J. Walters (DP)

  	
   

  	
  82570

  	
   

  
	
  Ola Miller (DP)

  	
   

  	
  83306

  	
   

  
	
  Toy Ferguson(Ferguson,
  Toy C Et Al #1)

  	
   

  	
  82952

  	
   

  
	
  Jackson #1 & #2

  	
   

  	
  82888 82927

  	
   

  
	
  Waligorski
  #3(Waligorski, William #3)

  	
   

  	
  82928

  	
   

  
	
  Waligorski #4(Waligorski,
  WM #4)

  	
   

  	
  83108

  	
   

  
	
  JW Johnson
  (DP)(Johnson, J Wesley II #1)

  	
   

  	
  77566

  	
   

  
	
  Perkins-Wentz
  (DP)(Perkins, Kyle #2)

  	
   

  	
  70668

  	
   

  
	
  Decker-Magline
  #2(DP)(Decker, Magline Et Al #2)

  	
   

  	
  75845

  	
   

  
	
  J. Patrick #2(Patrick,
  Joe #2)

  	
   

  	
  84012

  	
   

  
	
  Ralph Hill 1 (DP)(Hill,
  Ralph Et Al #1)

  	
   

  	
  73175

  	
   

  
	
  Wynn # 2 (DP)

  	
   

  	
  84013

  	
   

  
	
  Meachum 1

  	
   

  	
  84488

  	
   

  
	
  Keith Sears #1(Sears,
  Keith #1)

  	
   

  	
  84720

  	
   

  
	
  Richmond #1 (DP)

  	
   

  	
  84686

  	
   

  
	
  Wynn # 1 (DP)

  	
   

  	
  82887

  	
   

  
	
  Carr 1(DP)(Carr, Robert
  #1)

  	
   

  	
  92618

  	
   

  
	
  FUQUA #1&2

  	
   

  	
  85607

  	
   

  
	
  Fred & Nancy Jones
  #1(Jones, Fred & Nancy #1)

  	
   

  	
  85606

  	
   

  
	
  Arnold Warfield
  #1(Warfield, Arnold & Cleo Et Al #1)

  	
   

  	
  85661

  	
   

  
	
  J. Warfield
  #1-Unit(Warfield, Junior L & Arrie Et Al Unit #1)

  	
   

  	
  85662

  	
   

  
	
  Wayne Smith(Smith,
  Wayne & Ella #1)

  	
   

  	
  85677

  	
   

  
	
  Jones Penn 1(Johns,
  Thelma & Penn, Beula Et Al Unit #1)

  	
   

  	
  85751

  	
   

  
	
  Terry Forcht #9(Forcht,
  Terry Et Al #9)

  	
   

  	
  85752

  	
   

  
	
  William H.Jones
  #1(Jones, William H Et Al Unit #1)

  	
   

  	
  86252

  	
   

  
	
  Powers #1(Powers, James
  Et Al #1)

  	
   

  	
  86254

  	
   

  
	
  Nona Partin

  	
   

  	
  86262

  	
   

  
	
  Rutherford(Rutherford,
  Kenneth & Thelma #1)

  	
   

  	
  86424

  	
   

  
	
  Ray Hyatt #1(Hyatt, Ray
  Et Al #1)

  	
   

  	
  86256

  	
   

  
	
  Faulkner(Faulkner, John
  Thomas Et Al #1)

  	
   

  	
  86613

  	
   

  
	
  Lloyd
  Henderson(Henderson, Lloyd Et Al #1)

  	
   

  	
  87710

  	
   

  
	
  Johnson #1(Johnson,
  William #1)

  	
   

  	
  88029

  	
   

  
	
  Dan McAvoy #1(McAvoy,
  Dan #1)

  	
   

  	
  88028

  	
   

  
	
  Holdstock #1(Holdstock,
  Michael Et Al Unit #1)

  	
   

  	
  88027

  	
   

  
	
  Whitley Co Board Of Edu(Whitley
  County Board of Education #1)

  	
   

  	
  87118

  	
   

  
	
  A.L. Phipps(Phipps,
  A.L. #1)

  	
   

  	
  87172

  	
   

  
	
  A.L. Phipps #2(Phipps,
  A.L. #2)

  	
   

  	
  87172

  	
   

  
	
  Bill Mayne #1(Mayne,
  Bill #1)

  	
   

  	
  90298

  	
   

  
	
  Joe Patrick #1(Patrick,
  Joe #1)

  	
   

  	
  91385

  	
   

  
	
  Mary Campbell
  #1(Campbell, Mary #1)

  	
   

  	
  91474

  	
   

  
	
  Emmanuel Jackson #1

  	
   

  	
  91402

  	
   

  
	
  Reed Helton #1(Helton,
  Reed #1)

  	
   

  	
  91367

  	
   

  
	
  Bill Helton #1(Helton, Bill #1)

  	
   

  	
  91261

  	
   

  

 

 10

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Mike & Delbert
  Helton #1(Helton, Mike & Delbert #1)

  	
   

  	
  91403

  	
   

  
	
  Delbert Cooper
  #1(Cooper, Delbert #1)

  	
   

  	
  91383

  	
   

  
	
  Raleigh Engle #1(Engle,
  Raleigh #1)

  	
   

  	
  91484

  	
   

  
	
  Kenneth Engle #1(Engle,
  Kenneth #1)

  	
   

  	
  91382

  	
   

  
	
  Leon Watson #1(Watson,
  Leon #1)

  	
   

  	
  91485

  	
   

  
	
  Wilburn #2

  	
   

  	
  91578

  	
   

  
	
  Mike & Bill Helton
  #1(Helton, Bill & Mike #1)

  	
   

  	
  91532

  	
   

  
	
  Emmanuel Jackson #2

  	
   

  	
  91521

  	
   

  
	
  Kenneth Engle #2(Engle,
  Kenneth #2)

  	
   

  	
  91836

  	
   

  
	
  Roger Engle(Engle,
  Roger #1)

  	
   

  	
  91739

  	
   

  
	
  Garrison et
  al(Garrison, Matt, Doyle Rutherford, Herm #1)

  	
   

  	
  91848

  	
   

  
	
  Gambrell Lawson
  #1(Gambrell, Tommy and Shirley Lawson #1)

  	
   

  	
  91827

  	
   

  
	
  Brown, Howard &
  Cheryl #1

  	
   

  	
  92760

  	
   

  
	
  H. Engle(Engle, Henry
  #1)

  	
   

  	
  91520

  	
   

  
	
  Myrtle Davis(Davis,
  Myrtle #1)

  	
   

  	
  92257

  	
   

  
	
  Curtis Branum #1

  	
   

  	
  95377

  	
   

  
	
  Calvin Wynn #1(Wynn,
  Calvin #1)

  	
   

  	
  95752

  	
   

  
	
  Dan McAvoy #2(McAvoy,
  Dan #2)

  	
   

  	
  95827

  	
   

  
	
  Buford Clark #3(Clark,
  Buford #3)

  	
   

  	
  97227

  	
   

  
	
  Martin Hubb
  #1(Martin-Hubbs #1)

  	
   

  	
  97335

  	
   

  
	
  Hershell Mills
  #1(Mills, Hershell #1)

  	
   

  	
  97680

  	
   

  
	
  Lonzo Mills #1(Mills,
  Lonzo #1)

  	
   

  	
  97679

  	
   

  
	
  Roger Wells #1(Wells,
  Roger #1)

  	
   

  	
  97972

  	
   

  
	
  James Mills #1

  	
   

  	
  98366

  	
   

  
	
  James Mills ETAL #1

  	
   

  	
  98470

  	
   

  
	
  Jerry Collinsworth ETAL
  #1

  	
   

  	
  98750

  	
   

  

 

 11
 

 

	
  Mackey Bend Field

  	
   

  
	
  Whitley and Knox Counties, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the Paul Stewart #1 well at the subsurface depth
of 1,335 feet (the location of which well is contained in Well Permit Number
79454) and 100 feet below the stratigraphic equivalent of the base of the
Chattanooga Shale Formation as found in the Paul Stewart #1 well as at a
subsurface depth of 2,078 feet (the location of which is contained in Well
Permit Number 79454).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  McCreary, Jack #1

  	
   

  	
  79398

  	
   

  
	
  McCreary, Jack #2

  	
   

  	
  79412

  	
   

  
	
  Partin, Jack Unit #1

  	
   

  	
  79469

  	
   

  
	
  Shields, Gary #1

  	
   

  	
  79470

  	
   

  
	
  Stewart, Paul #1

  	
   

  	
  79454

  	
   

  
	
  Oxendine, William #1

  	
   

  	
  79480

  	
   

  
	
  Stewart, Paul #2

  	
   

  	
  79422

  	
   

  
	
  Stapelton, Don Unit #1

  	
   

  	
  79486

  	
   

  
	
  Brooks, Steve Unit #1

  	
   

  	
  79476

  	
   

  
	
  Wilson, Ernest #1

  	
   

  	
  79487

  	
   

  
	
  Wilson, Ernest #2

  	
   

  	
  79488

  	
   

  
	
  Bryant, Brenda Unit #1

  	
   

  	
  81138

  	
   

  
	
  Branum, E.J. Unit #1

  	
   

  	
  79475

  	
   

  
	
  Gambrel, Tommy #3

  	
   

  	
  79251

  	
   

  
	
  Gambrel, Tommy #4

  	
   

  	
  79252

  	
   

  
	
  Gambrel, Tommy Unit #5

  	
   

  	
  79465

  	
   

  
	
  Mays, Reese Unit #1

  	
   

  	
  79459

  	
   

  
	
  Partin, Jack Unit #2

  	
   

  	
  81224

  	
   

  
	
  J. Dixon #1

  	
   

  	
  82966

  	
   

  
	
  COGC/CAIN

  	
   

  	
  See Note

  	
   

  

 

	
  Smepa Field

  	
   

  
	
  Bell, Clay, Leslie and Knox Counties, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Maxon Formation as found in the Smepa #80 well at the subsurface depth of 2,736
feet (the location of which well is contained in Well Permit Number 96407) and
100 feet below the stratigraphic equivalent of the base of the Corniferous
Formation as found in the Smepa #80 well as at a subsurface depth of 3,785 feet
(the location of which is contained in Well Permit Number 96407).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Smepa #1(South
  Mississippi Electric Power Assoc #1)

  	
   

  	
  86005

  	
   

  
	
  Smepa #2(South Mississippi Electric Power Assoc #2)

  	
   

  	
  86004

  	
   

  

 

 12
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Smepa #3(South
  Mississippi Electric Power Assoc #3)

  	
   

  	
  86079

  	
   

  
	
  Smepa #10(South
  Mississippi Electric Power Association #10)

  	
   

  	
  88502

  	
   

  
	
  Smepa #21(South
  Mississippi Electric Power Assoc #21)

  	
   

  	
  88520

  	
   

  
	
  Smepa #22(South
  Mississippi Electric Power Assoc #22)

  	
   

  	
  88462

  	
   

  
	
  Smepa #24(South
  Mississippi Electric Power #24)

  	
   

  	
  87675

  	
   

  
	
  Smepa #25(South
  Mississippi Electric Power Assoc #25)

  	
   

  	
  88153

  	
   

  
	
  Cabot #2(South
  Mississippi Electric Power Association #2)

  	
   

  	
  44430

  	
   

  
	
  Cabot #4(South
  Mississippi Electric Power Co #4)

  	
   

  	
  44431

  	
   

  
	
  CABOT #6(South
  Mississippi Electric Power Assoc #6)

  	
   

  	
  45094

  	
   

  
	
  Cabot #8(South
  Mississippi Electric Power Association #8)

  	
   

  	
  45270

  	
   

  
	
  Cabot # 11

  	
   

  	
  46654

  	
   

  
	
  Riley # 14

  	
   

  	
  55516

  	
   

  
	
  Riley # 15

  	
   

  	
  58995

  	
   

  
	
  Smepa #42(South
  Mississippi Electric Power Assoc #42)

  	
   

  	
  91894

  	
   

  
	
  Smepa #44(South
  Mississippi Elec Power Assoc #44)

  	
   

  	
  92019

  	
   

  
	
  Smepa #9(South
  Mississippi Elec Power Assoc #9)

  	
   

  	
  92021

  	
   

  
	
  Smepa #26 A(South
  Mississippi  Electric Power Assoc #26A)

  	
   

  	
  93209

  	
   

  
	
  Smepa # 28A(South
  Mississippi Electric Power Assoc #28A)

  	
   

  	
  93213

  	
   

  
	
  Smepa #31A(South
  Mississippi Electric Power Assoc #31A)

  	
   

  	
  93212

  	
   

  
	
  Smepa #32A(South
  Mississippi Electric Power Assoc #32A)

  	
   

  	
  93211

  	
   

  
	
  Smepa #33A(South
  Mississippi Electric Power Assoc #33A)

  	
   

  	
  95585

  	
   

  
	
  Smepa #47(South
  Mississippi  Power & Electric #47)

  	
   

  	
  95629

  	
   

  
	
  Smepa #48(South
  Mississippi Electric Power #48)

  	
   

  	
  93576

  	
   

  
	
  Smepa #29A(South
  Mississippi Electric Power Assoc #29A)

  	
   

  	
  93803

  	
   

  
	
  Smepa #49(South
  Mississippi Electric Power Assoc #49)

  	
   

  	
  93802

  	
   

  
	
  Smepa #50(South
  Mississippi Electric Power Assoc #50)

  	
   

  	
  93800

  	
   

  
	
  Smepa #51(South
  Mississippi Electric Power Assoc #51)

  	
   

  	
  93801

  	
   

  
	
  Smepa #43A(South
  Mississippi Electric Power Assoc #43A)

  	
   

  	
  94270

  	
   

  
	
  Smepa #53(South
  Mississippi Electric Power Assoc #53)

  	
   

  	
  95565

  	
   

  
	
  SMEPA #54(South
  Mississippi Electric Power Assoc #54)

  	
   

  	
  96981

  	
   

  
	
  Smepa #55(South
  Mississippi Electric Power Assoc #55)

  	
   

  	
  94388

  	
   

  
	
  Smepa #60(South
  Mississippi Electric Power Assoc #60)

  	
   

  	
  94637

  	
   

  
	
  Smepa #35A(South
  Mississippi Electric Power Assoc #35A)

  	
   

  	
  94710

  	
   

  
	
  Smepa #61(South
  Mississippi Electric Power Assoc #61)

  	
   

  	
  94765

  	
   

  
	
  Smepa #64(South
  Mississippi Power & Electric #64)

  	
   

  	
  94925

  	
   

  
	
  Smepa #65(South Mississippi
  Power & Electric #65)

  	
   

  	
  94926

  	
   

  
	
  Smepa #63(South
  Mississippi Power & Electric #63)

  	
   

  	
  94824

  	
   

  
	
  SMEPA #67(South
  Mississippi Power & Electric #67)

  	
   

  	
  95003

  	
   

  
	
  SLUSHER HEIRS, GEORGE
  #1(Slusher, George Heirs #1)

  	
   

  	
  94403

  	
   

  
	
  Smepa #62(South
  Mississippi Electric Power Assoc #62)

  	
   

  	
  94823

  	
   

  
	
  SMEPA #68(South
  Mississippi Power & Electric #68)

  	
   

  	
  95389

  	
   

  
	
  Smepa #46(South
  Mississippi Power & Electric #46)

  	
   

  	
  95628

  	
   

  
	
  Smepa #34A(South
  Mississippi Electric Power Assoc #34A)

  	
   

  	
  94400

  	
   

  
	
  SMEPA #69(South Mississippi Power and Electric #69)

  	
   

  	
  95526

  	
   

  

 

 13
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  SMEPA #70(South
  Mississippi Power & Electric ET A #70)

  	
   

  	
  95900

  	
   

  
	
  SMEPA #72(South
  Mississippi Electric Power Assoc #72)

  	
   

  	
  96246

  	
   

  
	
  SMEPA #73(South
  Mississippi Electric Power Assoc #73)

  	
   

  	
  96345

  	
   

  
	
  SMEPA #75(South
  Mississippi Electric Power Assoc #75)

  	
   

  	
  96402

  	
   

  
	
  SMEPA #76(South
  Mississippi Electric Power Assoc #76)

  	
   

  	
  96403

  	
   

  
	
  SMEPA #77(South
  Mississippi Electric Power Assoc #77)

  	
   

  	
  96404

  	
   

  
	
  SMEPA #78(South
  Mississippi Electric Power Assoc # 78)

  	
   

  	
  96405

  	
   

  
	
  SMEPA #80(South
  Mississippi Electric Power Assoc #80)

  	
   

  	
  96407

  	
   

  
	
  SMEPA #82(South
  Mississippi Electric Power Assoc #82)

  	
   

  	
  96487

  	
   

  
	
  SMEPA #83(South
  Mississippi Electric Power Assoc #83)

  	
   

  	
  96484

  	
   

  
	
  SMEPA #84(South
  Mississippi Electric Power Assoc #84)

  	
   

  	
  96485

  	
   

  
	
  SMEPA #85(South
  Mississippi Electric Power Assoc #85)

  	
   

  	
  96501

  	
   

  
	
  SMEPA #86(South
  Mississippi Electric Power Assoc #86)

  	
   

  	
  96515

  	
   

  
	
  Smepa #90(South
  Mississippi Electric Power Assoc #90)

  	
   

  	
  96906

  	
   

  
	
  Smepa #91(South
  Mississippi Electric Power Assoc #91)

  	
   

  	
  97105

  	
   

  
	
  Smepa #92(South
  Mississippi Electric Power Assoc #92)

  	
   

  	
  97073

  	
   

  
	
  Smepa #93(South
  Mississippi Electric Power Assoc #93)

  	
   

  	
  97114

  	
   

  
	
  Smepa #94(South
  Mississippi Electric Power Assoc #94)

  	
   

  	
  97136

  	
   

  
	
  Smepa #91A(South
  Mississippi Electric Power Assoc #91A)

  	
   

  	
  97544

  	
   

  
	
  Smepa #95(South
  Mississippi Electric Power Assoc #95)

  	
   

  	
  97783

  	
   

  
	
  Smepa #97(South
  Mississippi Electric Power Assoc #97)

  	
   

  	
  98118

  	
   

  
	
  Smepa #98(South
  Mississippi Electric Power Assoc #98)

  	
   

  	
  98119

  	
   

  
	
  Smepa #101(South
  Mississippi Electric Power Assoc #101)

  	
   

  	
  98120

  	
   

  
	
  Smepa # 102(South
  Mississippi Electric Power Assoc #102)

  	
   

  	
  98121

  	
   

  
	
  Smepa #100(South
  Mississippi Electric Power Assoc #100)

  	
   

  	
  98268

  	
   

  
	
  Smepa #104(South
  Mississippi Electric Power Assoc #104)

  	
   

  	
  98269

  	
   

  
	
  Smepa #103(South
  Mississippi Electric Power Assoc #103)

  	
   

  	
  98368

  	
   

  
	
  Smepa #105(South
  Mississippi Electric Association #105)

  	
   

  	
  98369

  	
   

  
	
  Smepa #108(South
  Mississippi Electric Power Associa #108)

  	
   

  	
  98370

  	
   

  
	
  Smepa #99(South
  Mississippi Electrical Power Ass #99)

  	
   

  	
  98471

  	
   

  
	
  Smepa #112(South
  Mississippi Electrical Power Ass #112)

  	
   

  	
  98640

  	
   

  
	
  Smepa # 110(South
  Mississippi Electric Power Assoc #110)

  	
   

  	
  98752

  	
   

  
	
  Smepa #113(South
  Mississippi Electric Power Assoc #113)

  	
   

  	
  98778

  	
   

  
	
  Smepa #117(South
  Mississippi Electric Power Assoc #117)

  	
   

  	
  98779

  	
   

  
	
  Smepa #118(South
  Mississippi Electric Power Assoc #118)

  	
   

  	
  98799

  	
   

  
	
  Smepa # 106(South
  Mississippi Electric Power Assoc #106)

  	
   

  	
  99001

  	
   

  
	
  Smepa #115(South
  Mississippi Electric Power Assoc #115)

  	
   

  	
  99002

  	
   

  
	
  Smepa #116(South
  Mississippi Electric Power Assoc #116)

  	
   

  	
  99003

  	
   

  
	
  Smepa #119(South
  Mississippi Electric Power Assoc #119)

  	
   

  	
  99101

  	
   

  
	
  Smepa #96(South Mississippi Electric Power Assoc #119)

  	
   

  	
  99101

  	
   

  

 

 14
 

 

	
  Mudd Creek and South Addington Field

  	
   

  
	
  Whitley County, Kentucky and Campbell County,
  Tennessee

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Maxon Formation as found in the Windle et al #8 well at the subsurface depth of
2,146 feet (the location of which well is contained in Well Permit Number
100117) and 100 feet below the stratigraphic equivalent of the base of the
Chattanooga Shale Formation as found in the Windle et al #8 well as at a
subsurface depth of 2,936 feet (the location of which is contained in Well
Permit Number 100117).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Vann

  	
   

  	
  27886

  	
   

  
	
  Shelton Norton #1

  	
   

  	
  76119

  	
   

  
	
  BurtonFloyd #1(Floyd,
  Burton #1)

  	
   

  	
  73409

  	
   

  
	
  George Walden
  #1(Walden, George Ed #1)

  	
   

  	
  76321

  	
   

  
	
  Jim Bowman Etal #1

  	
   

  	
  76397

  	
   

  
	
  J.L. Cooper #1

  	
   

  	
  76358

  	
   

  
	
  BurtonFloyd #3(Floyd,
  Burton #3)

  	
   

  	
  76430

  	
   

  
	
  Robert Lawson #1

  	
   

  	
  76464

  	
   

  
	
  Shelton Norton #2

  	
   

  	
  76431

  	
   

  
	
  George Walden
  #2(Walden, George Ed #2)

  	
   

  	
  76587

  	
   

  
	
  Charles Davis #1(Davis,
  Charles R #1)

  	
   

  	
  76625

  	
   

  
	
  Walter Carroll
  #1(Carroll, Walter L #1)

  	
   

  	
  76524

  	
   

  
	
  Charles Prewitt
  #1(Prewitt, Charlie #1)

  	
   

  	
  76709

  	
   

  
	
  Walter Carroll #2

  	
   

  	
  76690

  	
   

  
	
  Gary Canada #1

  	
   

  	
  76987

  	
   

  
	
  Calvin Lawson #2

  	
   

  	
  76867

  	
   

  
	
  Emmanuel Smith
  #1(Smith, Emanual #1)

  	
   

  	
  77067

  	
   

  
	
  Willard Reynolds #1

  	
   

  	
  77048

  	
   

  
	
  Charles C. Smith

  	
   

  	
  77202

  	
   

  
	
  Ira Goley #1

  	
   

  	
  77245

  	
   

  
	
  Thomas Brown #2

  	
   

  	
  28455

  	
   

  
	
  James Clawson #1

  	
   

  	
  84269

  	
   

  
	
  James Clawson #2

  	
   

  	
  84270

  	
   

  
	
  Otis Bryant #1A(Parrot,
  Buck Et Al #1)

  	
   

  	
  84351

  	
   

  
	
  Parrott-Mountjoy(Parrot,
  Buck)

  	
   

  	
  84459

  	
   

  
	
  Hue Perkins #1(Perkins,
  Hugh Et Al #1)

  	
   

  	
  8678

  	
   

  
	
  John Perkins
  #2(Perkins, John Et Al #2)

  	
   

  	
  8714

  	
   

  
	
  Karis Loving #1A

  	
   

  	
  84590

  	
   

  
	
  ChamberCornett
  #1(Chambers, Dean & Cornett, John #1)

  	
   

  	
  84371

  	
   

  
	
  John Cornett Et al #1

  	
   

  	
  8701

  	
   

  
	
  Mattie A. Brown
  #2(Ahler, Mattie Brown #2)

  	
   

  	
  85269

  	
   

  
	
  George Jones #1(Jones,
  George Et Al #1)

  	
   

  	
  85689

  	
   

  
	
  Isham Lawson Heirs #1

  	
   

  	
  88325

  	
   

  

 

 15
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  CUMBERLAND TIMBER #1

  	
   

  	
  96186

  	
   

  
	
  CUMBERLAND TIMBER #2

  	
   

  	
  96380

  	
   

  
	
  CUMBERLAND TIMBER #3

  	
   

  	
  96182

  	
   

  
	
  CUMBERLAND TIMBER #4

  	
   

  	
  96381

  	
   

  
	
  CUMBERLAND TIMBER #5

  	
   

  	
  96508

  	
   

  
	
  CUMBERLAND TIMBER #6

  	
   

  	
  96559

  	
   

  
	
  CUMBERLAND TIMBER #7

  	
   

  	
  96560

  	
   

  
	
  Cumberland-Harlan (old
  well)

  	
   

  	
  79590

  	
   

  
	
  Windle — Cumberland
  Timbers #9

  	
   

  	
  97052

  	
   

  
	
  Darryl Centers #1

  	
   

  	
  97033

  	
   

  
	
  James Woodward #1

  	
   

  	
  99169

  	
   

  
	
  Billy Woodward #1

  	
   

  	
  99220

  	
   

  

 

	
  North Addington Field

  	
   

  
	
  Harland and Leslie Counties, Kentucky

  

 

Producing Strata: All subsurface formations and depths between the
stratigraphic equivalent of the top of the Big Lime Formation as found in the
Jamie Corum et al #1 well at the subsurface depth of 3,281 feet (the location
of which well is contained in Well Permit Number 99808) and 100 feet below the
stratigraphic equivalent of the base of the Corniferous Formation as found in
the Jamie Corum et al #1well as at a subsurface depth of 4,395 feet (the location
of which is contained in Well Permit Number 99808).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Addington Exploration
  Co, LLC NADD #6

  	
   

  	
  96581

  	
   

  
	
  Addington Exploration
  Co, LLC NADD #7

  	
   

  	
  96580

  	
   

  
	
  Addington Exploration
  Co, LLC NADD #5

  	
   

  	
  96907

  	
   

  
	
  Addington Exploration
  Co, LLC NADD #8

  	
   

  	
  96908

  	
   

  
	
  Addington Exploration
  Co, LLC NADD #9

  	
   

  	
  96909

  	
   

  
	
  NADD #1

  	
   

  	
  97439

  	
   

  
	
  Addington Exploration
  Co, LLC NADD #2

  	
   

  	
  97440

  	
   

  
	
  NADD #3

  	
   

  	
  97441

  	
   

  
	
  Addington Exploration
  Co, LLC NADD #10

  	
   

  	
  97462

  	
   

  
	
  Addington Exploration
  Co, LLC NADD #11

  	
   

  	
  97463

  	
   

  
	
  NADD #14

  	
   

  	
  98502

  	
   

  
	
  NADD #15

  	
   

  	
  98177

  	
   

  

 

 16
 

 

	
  Canadatown Field

  	
   

  
	
  Whitley County, Kentucky 

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the Mountjoy/Faulkner #5 well at the subsurface
depth of 1,068 feet (the location of which well is contained in Well Permit
Number 78424) and 100 feet below the stratigraphic equivalent of the base of
the Chattanooga Shale Formation as found in the Mountjoy/Faulkner #5 well as at
a subsurface depth of 1,660 feet (the location of which is contained in Well
Permit Number 78424).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  A.&M.
  Bryant(Bryant, Arthur # 1)

  	
   

  	
  61950

  	
   

  
	
  D. Walker (Bryant,
  Elmer-Walker, David Unit #348)

  	
   

  	
  68509

  	
   

  
	
   Ronald Shupe #1

  	
   

  	
  66798

  	
   

  
	
  Albert Ellis #1 (Ellis,
  Albert Heirs #1)

  	
   

  	
  67829

  	
   

  
	
  Ralph Williams #1

  	
   

  	
  67874

  	
   

  
	
  Homer Hart #1

  	
   

  	
  68195

  	
   

  
	
  Bob Massey #1

  	
   

  	
  68470

  	
   

  
	
  J.M. Meadors #1

  	
   

  	
  69019

  	
   

  
	
  Ralph Williams #2
  (Williams, Ralph & Williams, Webster #2)

  	
   

  	
  68928

  	
   

  
	
  L.B. Ellis #1 (multiple
  wells)

  	
   

  	
  69124

  	
   

  
	
  Frank Patrick #1

  	
   

  	
  69018

  	
   

  
	
  Albert Ellis #2,
  (multiple wells)

  	
   

  	
  67873

  	
   

  
	
  Edward Walker #1

  	
   

  	
  69817

  	
   

  
	
  Otto Sulfridge #1

  	
   

  	
  70560

  	
   

  
	
  Ernest Cupp #2

  	
   

  	
  70525

  	
   

  
	
  E.H. Meadors #1

  	
   

  	
  70710

  	
   

  
	
  Frank Cassidy #2

  	
   

  	
  71086

  	
   

  
	
  Frank Patrick #2

  	
   

  	
  71168

  	
   

  
	
  Bobby J. Petery # 1

  	
   

  	
  71532

  	
   

  
	
  Ronald Shupe #4

  	
   

  	
  71680

  	
   

  
	
  Homer Hart #3

  	
   

  	
  71745

  	
   

  
	
  Charles Cox #1

  	
   

  	
  73139

  	
   

  
	
  Edgar Meadors #1

  	
   

  	
  73302

  	
   

  
	
  Clyde E. Meadors #1
  (Meadors, Clyde #1)

  	
   

  	
  73482

  	
   

  
	
  Nola Harris #1 (Harris,
  Nola Et Al #1)

  	
   

  	
  72423

  	
   

  
	
  Lowell Prewitt #1

  	
   

  	
  73287

  	
   

  
	
  Oscar Hinkle #1

  	
   

  	
  72763

  	
   

  
	
  B.D. Sedam #1 (Sedam,
  Billy D #1)

  	
   

  	
  72963

  	
   

  
	
  Ernest Cupp #3

  	
   

  	
  72695

  	
   

  
	
  Oscar Hinkle #2

  	
   

  	
  72705

  	
   

  
	
  Leonard Petery #1

  	
   

  	
  73602

  	
   

  
	
  Homer Hart #6

  	
   

  	
  73008

  	
   

  
	
  HelmBeckstrom #3 (Helm, WM & Beckstrom, Gary #3)

  	
   

  	
  73254

  	
   

  

 

 17

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  HelmBeckstrom #4 (Helm,
  WM & Beckstrom, Gary #4)

  	
   

  	
  73255

  	
   

  
	
  HelmBeckstrom #5

  	
   

  	
  73306

  	
   

  
	
  Goldie Canada #2

  	
   

  	
  73725

  	
   

  
	
  James Brown #1

  	
   

  	
  73645

  	
   

  
	
  Goldie Canada #1

  	
   

  	
  73724

  	
   

  
	
  Edgar Meadors #2

  	
   

  	
  73777

  	
   

  
	
  Robert Byrd #1 (Byrd,
  Robert D #1)

  	
   

  	
  74325

  	
   

  
	
  E. Worley Heirs #1
  (Worley, Everette Heirs #1)

  	
   

  	
  74530

  	
   

  
	
  David Skeens #1 (Skeen,
  David A #1)

  	
   

  	
  75926

  	
   

  
	
  E. Worley Heirs #2
  (Worley, Everett Heirs #2)

  	
   

  	
  85772

  	
   

  
	
  MountJoyFaulkner #4

  	
   

  	
  78307

  	
   

  
	
  MountJoyFaulkner #5

  	
   

  	
  78424

  	
   

  
	
  MountJoyFaulkner #7

  	
   

  	
  85820

  	
   

  
	
  MountJoyFaulkner #10

  	
   

  	
  79250

  	
   

  
	
  MountJoyFaulkner #11

  	
   

  	
  79338

  	
   

  
	
  Bryant #1 (Champ)

  	
   

  	
  74206

  	
   

  
	
  Marsee #1 (Marssee
  Heirs #1)

  	
   

  	
  70565

  	
   

  
	
  Marsee #2

  	
   

  	
  79700

  	
   

  
	
  Marsee #3

  	
   

  	
  80714

  	
   

  
	
  Cumberland Minerals #1

  	
   

  	
  16615

  	
   

  
	
  Marsee #4 (Marsee,
  James #4)

  	
   

  	
  95457

  	
   

  
	
  Marsee #5

  	
   

  	
  95778

  	
   

  
	
  Erma Sublett #2

  	
   

  	
  97279

  	
   

  

 

	
  South Addington Field

  	
   

  
	
  Whitley County, Kentucky 

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Maxon Formation as found in the Windle et al #8 well at the subsurface depth of
2,146 feet (the location of which well is contained in Well Permit Number
100117) and 100 feet below the stratigraphic equivalent of the base of the
Chattanooga Shale Formation as found in the Windle et al #8 well as at a
subsurface depth of 2,936 feet (the location of which is contained in Well
Permit Number 100117).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  CUMBERLAND
  TIMBER #1

  	
   

  	
  96186

  	
   

  
	
  CUMBERLAND
  TIMBER #2

  	
   

  	
  96380

  	
   

  
	
  CUMBERLAND
  TIMBER #3

  	
   

  	
  96182

  	
   

  
	
  CUMBERLAND
  TIMBER #4

  	
   

  	
  96381

  	
   

  
	
  CUMBERLAND
  TIMBER #5

  	
   

  	
  96508

  	
   

  
	
  CUMBERLAND
  TIMBER #6

  	
   

  	
  96559

  	
   

  
	
  CUMBERLAND
  TIMBER #7

  	
   

  	
  96560

  	
   

  
	
  Cumberland-Harlan
  (old well)

  	
   

  	
  79590

  	
   

  

 

 18
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Windle —
  Cumberland Timbers #9

  	
   

  	
  97052

  	
   

  
	
  Darryl Centers
  #1

  	
   

  	
  97033

  	
   

  
	
  James Woodward
  #1

  	
   

  	
  99169

  	
   

  
	
  Billy Woodward
  #1

  	
   

  	
  99220

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
  Sugar
  Creek Field

  	
   

  
	
  Clay County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the Maude Napier #4 well at the subsurface depth
of 1,856 feet (the location of which well is contained in Well Permit Number
90550) and 100 feet below the stratigraphic equivalent of the base of the
Corniferous Formation as found in the Maude Napier #4 well as at a subsurface
depth of 2,671 feet (the location of which is contained in Well Permit Number
90550).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Bige Collett #1

  	
   

  	
  84283

  	
   

  
	
  Jackie Smith #1

  	
   

  	
  84637

  	
   

  
	
  Halcomb #1

  	
   

  	
  84583

  	
   

  
	
  Taft Napier #2

  	
   

  	
  85087

  	
   

  
	
  Roy Smallwood #1

  	
   

  	
  85440

  	
   

  
	
  Leroy Blackburn
  #1

  	
   

  	
  85442

  	
   

  
	
  Taft Napier #3

  	
   

  	
  85441

  	
   

  
	
  Wagers-Ledford
  #1

  	
   

  	
  84310

  	
   

  
	
  Rosen &
  Croner #1

  	
   

  	
  86313

  	
   

  
	
  Maudie Napier #
  4

  	
   

  	
  90550

  	
   

  
	
  Randall Wagers #
  2

  	
   

  	
  91077

  	
   

  
	
  Vivian Wagers #
  1

  	
   

  	
  91244

  	
   

  
	
  Maudie Napier #
  5

  	
   

  	
  91315

  	
   

  
	
  Nieman-Nolan # 1

  	
   

  	
  91316

  	
   

  
	
  Wagers-Griffin
  #1

  	
   

  	
  91404

  	
   

  

 

	
  Spruce Creek Field

  	
   

  
	
  Whitley County, Kentucky 

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the W.P. Anders #1 well at the subsurface depth
of 1,038 feet (the location of which well is contained in Well Permit Number
78614) and 100 feet below the stratigraphic equivalent of the base of the
Chattanooga Shale Formation as found in the W.P. Anders #1 well as at a
subsurface depth of 1,756 feet (the location of which is contained in Well
Permit Number 78614).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Fudold, Via

  	
   

  	
  77479

  	
   

  

 

 19
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Roaden OG #1

  	
   

  	
  77481

  	
   

  
	
  T. Roaden

  	
   

  	
  77482

  	
   

  
	
  Roaden, Scott #2

  	
   

  	
  77616

  	
   

  
	
  Roaden, Ova G.
  #4

  	
   

  	
  77664

  	
   

  
	
  Smith, S.F. #1

  	
   

  	
  77802

  	
   

  
	
  Fudold, John #1

  	
   

  	
  77479

  	
   

  
	
  Roaden, Scott #1

  	
   

  	
  77615

  	
   

  
	
  Matt Patterson

  	
   

  	
  77816

  	
   

  
	
  SMITH, SF #2

  	
   

  	
  77872

  	
   

  
	
  Knuckles, Julia
  #1

  	
   

  	
  77902

  	
   

  
	
  Smith, Roscoe #1

  	
   

  	
  77835

  	
   

  
	
  Powers Fore

  	
   

  	
  77904

  	
   

  
	
  Callihan/Patterson
  #1

  	
   

  	
  77937

  	
   

  
	
  Shackleford,
  Henry #1

  	
   

  	
  77663

  	
   

  
	
  Roaden, Scott #3

  	
   

  	
  77673

  	
   

  
	
  Baily, Sam #1

  	
   

  	
  77703

  	
   

  
	
  Baily, Sam #2

  	
   

  	
  77732

  	
   

  
	
  Gibbs, Nate #1

  	
   

  	
  77764

  	
   

  
	
  Kathleen Hart

  	
   

  	
  77874

  	
   

  
	
  Anders, W.P. #1

  	
   

  	
  78614

  	
   

  
	
  Philpot, Rita

  	
   

  	
  79336

  	
   

  
	
  Hamblin, T.

  	
   

  	
  51361

  	
   

  
	
  McKeehan, Emby
  #1

  	
   

  	
  76090

  	
   

  
	
  McKeehan, Emby
  #2

  	
   

  	
  76156

  	
   

  
	
  Veach, Buthel

  	
   

  	
  76273

  	
   

  

 

	
  Mountain Field

  	
   

  
	
  Whitley County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the Nami/Humfleet #1 well at the subsurface
depth of 1,753 feet (the location of which well is contained in Well Permit
Number 94115) and 100 feet below the stratigraphic equivalent of the base of
the Chattanooga Shale Formation as found in the Nami/Humfleet #1 well as at a
subsurface depth of 2,383 feet (the location of which is contained in Well
Permit Number 94115).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  ROBERTS-BRYANT-WILSON
  #1(Roberts)

  	
   

  	
  67373

  	
   

  
	
  Durham 2&5

  	
   

  	
  63995

  	
   

  
	
  Durham #4(Lee G.
  & Janice Durham #4)

  	
   

  	
  64961

  	
   

  
	
  Rains #1(Rains,
  Joe #1)

  	
   

  	
  67744

  	
   

  
	
  Rains #4(Rains,
  Joe #4)

  	
   

  	
  68416

  	
   

  
	
  Joe Rains #2
  & #3

  	
   

  	
  67743

  	
   

  
	
  Nami/Humfleet #1(Humfleet,
  George #1)

  	
   

  	
  94115

  	
   

  

 

 20
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Humfleet, George
  #2(Humfleet 2 (4))

  	
   

  	
  94116

  	
   

  
	
  Humfleet,George
  & Brewer, Randall #3(Humfleet 3)

  	
   

  	
  94295

  	
   

  

 

	
  Wofford Field

  	
   

  
	
  Whitley County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the Aurthur Tuggle #1 well at the subsurface
depth of 1,110 feet (the location of which well is contained in Well Permit
Number 64680) and 100 feet below the stratigraphic equivalent of the base of
the Big Lime Formation as found in the Aurthur Tuggle #1 well as at a
subsurface depth of 1,330 feet (the location of which is contained in Well
Permit Number 64680).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Reaves, C. #1

  	
   

  	
  64554

  	
   

  
	
  Tuggle, A. #1

  	
   

  	
  64680

  	
   

  
	
  Brooks, O. #1

  	
   

  	
  65741

  	
   

  
	
  Brooks, O. #2

  	
   

  	
  65740

  	
   

  
	
  Siler, J. #1

  	
   

  	
  64952

  	
   

  
	
  Teague-Cox #2

  	
   

  	
  68552

  	
   

  
	
  R. Brooks #2

  	
   

  	
  68457

  	
   

  
	
  Lawson

  	
   

  	
  68312

  	
   

  
	
  McKeehan

  	
   

  	
  71084

  	
   

  
	
  Gabbard-Tharpe

  	
   

  	
  72589

  	
   

  
	
  Joe Brown

  	
   

  	
  73690

  	
   

  
	
  R. Brooks #4

  	
   

  	
  72859

  	
   

  
	
  Bryant, William
  #1

  	
   

  	
  74184

  	
   

  
	
  D. Shupe #1

  	
   

  	
  74303

  	
   

  
	
  Stanley, Bertha
  #1

  	
   

  	
  74179

  	
   

  
	
  Brooks #1

  	
   

  	
  79639

  	
   

  

 

	
  Maple Creek Field

  	
   

  
	
  Whitley County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the B.T. Land #14 well at the subsurface depth
of 1,531 feet (the location of which well is contained in Well Permit Number
77898) and 100 feet below the stratigraphic equivalent of the base of the
Chattanooga Shale Formation as found in the B.T. Land #14 well as at a
subsurface depth of 2,192 feet (the location of which is contained in Well
Permit Number 77898).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  B.T. Land
  Development #1

  	
   

  	
  77864

  	
   

  
	
  B.T. Land
  Development #4

  	
   

  	
  77867

  	
   

  
	
  B.T. Land Development
  #9

  	
   

  	
  77894

  	
   

  

 

 21
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  B.T. Land
  Development #14

  	
   

  	
  77898

  	
   

  
	
  B.T. Land
  Development #13

  	
   

  	
  77934

  	
   

  
	
  B.T. Land
  Development #2

  	
   

  	
  77865

  	
   

  
	
  B.T. Land
  Development #7

  	
   

  	
  77892

  	
   

  
	
  B.T. Land
  Development #8

  	
   

  	
  77893

  	
   

  
	
  B.T. Land
  Development #12

  	
   

  	
  77897

  	
   

  
	
  B.T. Land
  Development #10

  	
   

  	
  77895

  	
   

  
	
  B.T. Land
  Development #11

  	
   

  	
  78975

  	
   

  
	
  B.T. Land
  Development #16

  	
   

  	
  79324

  	
   

  
	
  B.T. Land
  Development #17

  	
   

  	
  79207

  	
   

  
	
  Ranger Oil and
  Gas #1

  	
   

  	
  70217

  	
   

  
	
  Ranger Oil and
  Gas #2

  	
   

  	
  70218

  	
   

  
	
  Boyd, David #1

  	
   

  	
  78942

  	
   

  
	
  Robinson, JT #1

  	
   

  	
  78781

  	
   

  
	
  Sandlin, Sylvia
  #1

  	
   

  	
  79191

  	
   

  
	
  Watson, Buford
  #1

  	
   

  	
  79193

  	
   

  
	
  Houseman,
  Katherine #1

  	
   

  	
  79189

  	
   

  
	
  Houseman,
  Katherine #2(Housman, Kathern Unit #2)

  	
   

  	
  79299

  	
   

  
	
  Gambrel, Tommy
  #1(Gambrell, Tommy #1)

  	
   

  	
  78675

  	
   

  
	
  Gambrel, Tommy
  #2(Gambrell, Tommy #2)

  	
   

  	
  78676

  	
   

  
	
  B.T. Land
  Development #6

  	
   

  	
  77891

  	
   

  

 

	
  Flinn Heirs Field

  	
   

  
	
  Clay County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the Flinn Heirs #3 well at the subsurface depth
of 1,137 feet (the location of which well is contained in Well Permit Number
79397) and 100 feet below the stratigraphic equivalent of the base of the
Corniferous Formation as found in the Flinn Heirs #3 well as at a subsurface
depth of 2,023 feet (the location of which is contained in Well Permit Number
79397).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Flinn Heirs #2

  	
   

  	
  79396

  	
   

  
	
  Flinn Heirs #3

  	
   

  	
  79397

  	
   

  
	
  Flinn Heirs #5
  (multiple wells)

  	
   

  	
  79478

  	
   

  
	
  Flinn Heirs #6

  	
   

  	
  79453

  	
   

  
	
  Flinn Heirs #7

  	
   

  	
  80052

  	
   

  
	
  Flinn Heirs #8

  	
   

  	
  80053

  	
   

  
	
  Flinn Heirs #10

  	
   

  	
  80055

  	
   

  
	
  Flinn Heirs #11

  	
   

  	
  80056

  	
   

  
	
  Kelly Elihue
  (Kelly, Elihue Unit #1)

  	
   

  	
  79468

  	
   

  
	
  Bowling, Sarah
  #1

  	
   

  	
  79325

  	
   

  
	
  Spurlock, Woodrow
  (Spurlock, Woodrow Unit #1)

  	
   

  	
  79373

  	
   

  

 

 22
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Spurlock, Dave
  (Spurlock, David #1)

  	
   

  	
  77075

  	
   

  
	
  Stewart, Mark #1
  (Stewart, Mark & Wilson, Ralph #1)

  	
   

  	
  79253

  	
   

  
	
  Davidson, Clay
  (Davidson, Clay #1)

  	
   

  	
  79020

  	
   

  
	
  Ralph Wilson #1

  	
   

  	
  77940

  	
   

  

 

	
  Jellico Creek Field

  	
   

  
	
  Whitley and McCreary Counties, Kentucky and Campbell
  County, Tennessee

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the James 
Fraley #1 well at the subsurface depth of 1,280 feet (the location of
which well is contained in Well Permit Number 70785) and 100 feet below the
stratigraphic equivalent of the base of the Chattanooga Shale Formation as
found in the James Fraley #1 well as at a subsurface depth of 1,855 feet (the
location of which is contained in Well Permit Number 70785).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Henry Phillips
  #1

  	
   

  	
  50922

  	
   

  
	
  E. Rose #1

  	
   

  	
  49769

  	
   

  
	
  A. Higginbotham
  #2

  	
   

  	
  59925

  	
   

  
	
  Leonard Taylor
  #2(Taylor, Leonard #1)

  	
   

  	
  51569

  	
   

  
	
  Hayward Taylor
  #2

  	
   

  	
  60122

  	
   

  
	
  Ola Shelley #1

  	
   

  	
  48457

  	
   

  
	
  Prince Meadors
  #1

  	
   

  	
  51028

  	
   

  
	
  Georga Brown
  #1(Brown, George #1)

  	
   

  	
  48813

  	
   

  
	
  Milton
  Criscillas #1

  	
   

  	
  48814

  	
   

  
	
  Hugh Finley #1

  	
   

  	
  54817

  	
   

  
	
  Leo Meadors #2

  	
   

  	
  53060

  	
   

  
	
  Milton
  Criscillas #2

  	
   

  	
  54816

  	
   

  
	
  Mac Begley #1

  	
   

  	
  51437

  	
   

  
	
  Calestine
  Meadors #1

  	
   

  	
  53587

  	
   

  
	
  Harold Campbell
  #1(Campbell, Allie #1)

  	
   

  	
  51838

  	
   

  
	
  Ed Campbell #1

  	
   

  	
  55817

  	
   

  
	
  George Brown #2

  	
   

  	
  56509

  	
   

  
	
  George Brown #3

  	
   

  	
  56700

  	
   

  
	
  Ben Patrick #1

  	
   

  	
  56147

  	
   

  
	
  Marguerite Smith
  #1(Smith, Marguerite #1)

  	
   

  	
  63233

  	
   

  
	
  Baird,Shelley
  #1(Baird, Herbert #1)

  	
   

  	
  64238

  	
   

  
	
  Andy Begley #1

  	
   

  	
  64186

  	
   

  
	
  James Fraley #1

  	
   

  	
  70785

  	
   

  
	
  West Coal
  #2(West, Rose & Lay, Sharon & Baldwin, Alice #2)

  	
   

  	
  66509

  	
   

  
	
  Milton
  Criscillas #3

  	
   

  	
  84067

  	
   

  
	
  B. Philpot #1(Philpot,
  Bobby #1)

  	
   

  	
  85102

  	
   

  

 

 23
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Ronald Giles
  Etal #1

  	
   

  	
  8754

  	
   

  
	
  Ronald Giles
  Etal #2

  	
   

  	
  8750

  	
   

  
	
  Leo Meadors # 1

  	
   

  	
  51029

  	
   

  

 

	
  Lewis Heirs Field

  	
   

  
	
  Bell County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Maxon Formation as found in the Lewis Heirs #11B well at the subsurface depth
of 1,750 feet (the location of which well is contained in Well Permit Number
98358) and 100 feet below the stratigraphic equivalent of the base of the
Corniferous Formation as found in the Lewis Heirs #11B well as at a subsurface
depth of 2,753 feet (the location of which is contained in Well Permit Number
98358).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  LEWIS HEIRS #17

  	
   

  	
  95028

  	
   

  
	
  LEWIS HEIRS
  #25(Lewis, WE Heirs #25)

  	
   

  	
  95584

  	
   

  
	
  LEWIS HEIRS
  #21(Lewis, WE Heirs #21)

  	
   

  	
  96688

  	
   

  
	
  LEWIS HEIRS
  #23(Lewis, WE Heirs #23)

  	
   

  	
  96500

  	
   

  
	
  LEWIS HEIRS
  #26(Lewis, WE Heirs #26)

  	
   

  	
  96510

  	
   

  
	
  DONNA SMITH #1

  	
   

  	
  96509

  	
   

  
	
  LEWIS HEIRS
  #27(Lewis, WE Heirs #27)

  	
   

  	
  96498

  	
   

  
	
  LEWIS HEIRS
  #19(Lewis, WE Heirs #19)

  	
   

  	
  95642

  	
   

  
	
  LEWIS HEIRS #30

  	
   

  	
  97053

  	
   

  
	
  LEWIS HEIRS #29

  	
   

  	
  97042

  	
   

  
	
  DONNA SMITH
  #2(Smith, Donna E #2)

  	
   

  	
  97180

  	
   

  
	
  Lewis Heirs #31

  	
   

  	
  97209

  	
   

  
	
  Lewis Heirs #32

  	
   

  	
  97194

  	
   

  
	
  Lewis Heirs #33

  	
   

  	
  97195

  	
   

  
	
  LEWIS HEIRS #34

  	
   

  	
  97196

  	
   

  
	
  Lewis Heirs #35

  	
   

  	
  97210

  	
   

  
	
  DONNA SMITH #3

  	
   

  	
  97235

  	
   

  
	
  DONNA SMITH #4

  	
   

  	
  97211

  	
   

  
	
  DONNA SMITH #5

  	
   

  	
  97212

  	
   

  
	
  DONNA SMITH #6

  	
   

  	
  97269

  	
   

  
	
  LEWIS HEIRS #37

  	
   

  	
  97278

  	
   

  
	
  LEWIS HEIRS #38

  	
   

  	
  97416

  	
   

  
	
  LEWIS HEIRS #39

  	
   

  	
  97268

  	
   

  
	
  GATLIFF - HOWARD
  #1

  	
   

  	
  97417

  	
   

  
	
  GATLIFF - HOWARD
  #2

  	
   

  	
  97418

  	
   

  
	
  Lewis Heirs #6B

  	
   

  	
  97652

  	
   

  
	
  LEWIS HEIRS
  #1(Lewis, WE Heirs #1)

  	
   

  	
  88570

  	
   

  
	
  LEWIS HEIRS #3

  	
   

  	
  92087

  	
   

  
	
  LEWIS HEIRS #4

  	
   

  	
  92258

  	
   

  
	
  LEWIS HEIRS #9

  	
   

  	
  92621

  	
   

  

 

 24
 

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Lewis Heirs #10

  	
   

  	
  98163

  	
   

  
	
  Lewis Heirs #11B

  	
   

  	
  98358

  	
   

  
	
  Lewis Heirs #12B

  	
   

  	
  98625

  	
   

  
	
  Lewis Heirs #13B

  	
   

  	
  98150

  	
   

  
	
  Lewis Heirs #14B

  	
   

  	
  98266

  	
   

  
	
  Lewis Heirs #7B

  	
   

  	
  97658

  	
   

  
	
  LEWIS HEIRS #8

  	
   

  	
  97653

  	
   

  
	
  Tope/Owens(Tope-Owens
  #1)

  	
   

  	
  98131

  	
   

  
	
  Tope Owens - LH
  #1(Tope-Lewis #1)

  	
   

  	
  98132

  	
   

  
	
  LEWIS HEIRS
  #15(Lewis Heirs #14B)

  	
   

  	
  98267

  	
   

  
	
  Gatliff - Howard
  #6

  	
   

  	
  98324

  	
   

  
	
  Gatliff - Howard
  #7

  	
   

  	
  98339

  	
   

  
	
  Slusher, John #1

  	
   

  	
  98342

  	
   

  
	
  Slusher, John #2

  	
   

  	
  98341

  	
   

  
	
  Gatliff - Howard
  #5

  	
   

  	
  98357

  	
   

  
	
  Lewis Heirs #16B

  	
   

  	
  98444

  	
   

  
	
  Gatliff-Howard
  Et Al #3

  	
   

  	
  98731

  	
   

  
	
  Gatliff Howard
  #4

  	
   

  	
  99485

  	
   

  
	
  AY Evans etal #1

  	
   

  	
  98980

  	
   

  
	
  Lewis Heirs #18B

  	
   

  	
  98762

  	
   

  
	
  Lewis Heirs/Donna
  Smith #1

  	
   

  	
  98788

  	
   

  
	
  Lewis Heirs #24B

  	
   

  	
  98809

  	
   

  
	
  Edward Wilson
  Trust/LH #1(Lewis Heirs/Wilson #1)

  	
   

  	
  98975

  	
   

  
	
  Edward Wilson
  Trust #1(Wilson, Edward Trust #1)

  	
   

  	
  99000

  	
   

  
	
  Edward Wilson
  Trust #2

  	
   

  	
  99463

  	
   

  
	
  Lewis Heirs #20

  	
   

  	
  99351

  	
   

  
	
  Gatliff-Howard
  #9

  	
   

  	
  99513

  	
   

  
	
  Gatliff-Howard
  #10

  	
   

  	
  99546

  	
   

  
	
  Gatliff-Howard
  #11

  	
   

  	
  99547

  	
   

  
	
  Lewis Heirs #40

  	
   

  	
  99852

  	
   

  
	
  Lewis Heirs #28

  	
   

  	
  98879

  	
   

  
	
  Fred Gregory #1

  	
   

  	
  97113

  	
   

  
	
  Lewis Heirs #22

  	
   

  	
  96486

  	
   

  

 

 25
 

 

	
  Stinking Creek Field

  	
   

  
	
  Knox County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the William Hammons #1 well at the subsurface
depth of 1,891 feet (the location of which well is contained in Well Permit
Number 100129) and 100 feet below the stratigraphic equivalent of the base of
the Corniferous Formation as found in the William Hammons #1 well as at a
subsurface depth of 2,607 feet (the location of which is contained in Well
Permit Number 100129).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Tommy Smith #1

  	
   

  	
  97942

  	
   

  
	
  Southern
  Properties

  	
   

  	
  98072

  	
   

  

 

	
  Prewitt Bend 
  Field

  	
   

  
	
  Whitley County, Kentucky

  

 

Producing Strata: All subsurface
formations and depths between the stratigraphic equivalent of the top of the
Big Lime Formation as found in the Ed Prewitt well at the subsurface depth of
1,190 feet (the location of which well is contained in Well Permit Number
59658) and 100 feet below the stratigraphic equivalent of the base of the Big
Lime Formation as found in the Ed Prewitt well as at a subsurface depth of
1,400 feet (the location of which is contained in Well Permit Number 59658).

 

	
  Well Name

  	
   

  	
  Permit #

  	
   

  
	
  Ed Prewitt #1

  	
   

  	
  59658

  	
   

  
	
  Sarah Richardson
  #2

  	
   

  	
  58612

  	
   

  
	
  Sarah Richardson
  #1(Sarah and Wilma Richardson #1)

  	
   

  	
  48050

  	
   

  
	
  Ed Prewitt #2

  	
   

  	
  61490

  	
   

  
	
  Thomas Long #1

  	
   

  	
  61900

  	
   

  

 

 26

SCHEDULE 2.09(c)(2)

PROVED UNDEVELOPED OIL AND GAS PROPERTIES

Proved Undeveloped Oil and
Gas Properties shall mean all of the oil and gas leases in a field upon which
are located the wells listed on Schedule 2.09(c)(1) or which are pooled
and included in a Production Unit for such well, insofar as said leases cover
acreage outside the Production Unit for such well and insofar as said oil and
gas leases include those reserves which are within the Producing Strata for the
field where such leases are located.

 1

SCHEDULE
2.09(d)

OIL AND GAS PROPERTIES FOR WHICH

POST-CLOSING TITLE OPINIONS WILL BE PROVIDED

	
  Lease

  	
   

  	
  County

  	
   

  	
  State

  	
   

  
	
  1.

  	
   

  	
  SMEPA 085

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  2.

  	
   

  	
  SMEPA 029A

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  3.

  	
   

  	
  SMEPA 115

  	
   

  	
  LESLIE

  	
   

  	
  KY

  	
   

  
	
  4.

  	
   

  	
  SMEPA 112

  	
   

  	
  LESLIE

  	
   

  	
  KY

  	
   

  
	
  5.

  	
   

  	
  SMEPA 069

  	
   

  	
  CLAY

  	
   

  	
  KY

  	
   

  
	
  6.

  	
   

  	
  COAL CREEK 14

  	
   

  	
  ANDERSON

  	
   

  	
  TN

  	
   

  
	
  7.

  	
   

  	
  ASHER 028

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  8.

  	
   

  	
  HAMPTON 1

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  9.

  	
   

  	
  SMEPA 094

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  10.

  	
   

  	
  SMEPA 049

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  11.

  	
   

  	
  LEWIS HEIRS 23

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  12.

  	
   

  	
  E WORLEY HEIRS 1

  	
   

  	
  WHITLEY

  	
   

  	
  KY

  	
   

  
	
  13.

  	
   

  	
  ASHER 036

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  14.

  	
   

  	
  LEWIS HEIRS 37

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  15.

  	
   

  	
  ASHER 020

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  16.

  	
   

  	
  COAL CREEK 15

  	
   

  	
  ANDERSON

  	
   

  	
  TN

  	
   

  
	
  17.

  	
   

  	
  ASHER 018

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  18.

  	
   

  	
  BROOKS O 1

  	
   

  	
  WHITLEY

  	
   

  	
  KY

  	
   

  
	
  19.

  	
   

  	
  LEWIS HEIRS 38

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  

 

 1
 

 

	
  Lease

  	
   

  	
  County

  	
   

  	
  State

  	
   

  
	
  20.

  	
   

  	
  NALLY-HAMILTON 6

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  21.

  	
   

  	
  GATLIFF – HOWARD 1

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  22.

  	
   

  	
  VEACH BUTHEL

  	
   

  	
  WHITLEY

  	
   

  	
  KY

  	
   

  
	
  23.

  	
   

  	
  SMEPA 010

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  24.

  	
   

  	
  LEWIS HEIRS 14B

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  25.

  	
   

  	
  ASHER 032

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  26.

  	
   

  	
  ASHER 033

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  27.

  	
   

  	
  LEWIS HEIRS 12B

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  28.

  	
   

  	
  B HEMBREE 1

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  29.

  	
   

  	
  CMBRLND TMBR 05

  	
   

  	
  HARLAN

  	
   

  	
  KY

  	
   

  
	
  30.

  	
   

  	
  EARNEST KING ET AL

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  31.

  	
   

  	
  SMEPA 078

  	
   

  	
  CLAY

  	
   

  	
  KY

  	
   

  
	
  32.

  	
   

  	
  SMEPA 001

  	
   

  	
  LESLIE

  	
   

  	
  KY

  	
   

  
	
  33.

  	
   

  	
  SMEPA 113

  	
   

  	
  LESLIE

  	
   

  	
  KY

  	
   

  
	
  34.

  	
   

  	
  MCKEEHAN EMBY 2

  	
   

  	
  WHITLEY

  	
   

  	
  KY

  	
   

  
	
  35.

  	
   

  	
  CFC CONSTRUCTN/CM

  	
   

  	
  WHITLEY

  	
   

  	
  KY

  	
   

  
	
  36.

  	
   

  	
  COAL CREEK 18

  	
   

  	
  ANDERSON

  	
   

  	
  TN

  	
   

  
	
  37.

  	
   

  	
  SMEPA 117

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  38.

  	
   

  	
  GATLIFF – HOWARD 5

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  39.

  	
   

  	
  RAY HYATT 1

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  40.

  	
   

  	
  ASHER 014B

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  41.

  	
   

  	
  NAMI/HUMFLEET 1

  	
   

  	
  WHITLEY

  	
   

  	
  KY

  	
   

  

 

 2
 

 

	
  Lease

  	
   

  	
  County

  	
   

  	
  State

  	
   

  
	
  42.

  	
   

  	
  WHITE LOG JELICO 2

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  43.

  	
   

  	
  E KING 2

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  44.

  	
   

  	
  SMEPA 033A

  	
   

  	
  LESLIE

  	
   

  	
  KY

  	
   

  
	
  45.

  	
   

  	
  SMEPA 009

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  46.

  	
   

  	
  BLEVINS 1

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  
	
  47.

  	
   

  	
  CHANDLER R 2

  	
   

  	
  WHITLEY

  	
   

  	
  KY

  	
   

  
	
  48.

  	
   

  	
  SMEPA 043A

  	
   

  	
  BELL

  	
   

  	
  KY

  	
   

  
	
  49.

  	
   

  	
  EQUITABLE 1

  	
   

  	
  KNOX

  	
   

  	
  KY

  	
   

  

 

 3

SCHEDULE 7.05

LITIGATION

The Borrower and
Subsidiaries do not anticipate that any of the following litigation or claims
can reasonably be expected in the event of an adverse determination,
individually or in the aggregate, to result in a Material Adverse Effect.  Nonetheless the Borrower makes the following
disclosure concerning litigation and claims to the Lenders:

1.                                        James E. Francis v. Nami Resources Company, LLC;
U.S. District Court, Eastern District of Kentucky, London Division; Case No.
6-04-CV-510-KKC.  Mr. Francis was an
investor in two well-drilling programs conducted in 1999 and in 2000.  Mr. Francis invested approximately
$1,600,000.00 in certain wells that were a part of the 1999 program.  Mr. Francis has asserted that he has not been
provided accurate or sufficient information with regard to his investment in
the drilling programs, and that he has not been compensated properly.  He has sought compensatory damages in an
amount equal to his investment and unspecified punitive damages. Nami Resources
Company, LLC (the “Company”) has absolutely denied those contentions, and it
has asserted a counterclaim against the Plaintiff, inter alia,
to recover certain production costs not paid by the Plaintiff.  The Company has also asserted that all of the
parties’ claims should be submitted to arbitration pursuant to the terms of
their agreements.  The Company has,  vigorously defend the action, and it will
continue to do so.  The trial set in this
matter for November 14, 2006 was continued on the Court’s own motion and has
not been reset. A telephonic pre-hearing conference is set for January 3, 2007.

2.                                        Leonard K. Nave and Kentucky Natural Gas Service v.
Majeed Saiedynami, Nami Resources, LLC, et al. Laurel Circuit Court,
Division I, Civil Action No. 06-CI-1088. 
The Plaintiffs in this action (the “New Action”) assert that Nami
Resources Company, LLC (The “Company”) failed to perform a settlement agreement
pursuant to which the parties settled all of the claims asserted in the
litigation styled Leonard K. Nave, et al v. Majeed Saiedynami,
et al., Laurel Circuit, Civil Action No. 02-CI-817 (the “Original
Action”).  They also seek to reopen the
Original Action in which the Plaintiffs claimed the Company breached certain
written and oral contracts for the supply of natural gas to the Plaintiff,
Kentucky Natural Gas and made certain tort claims against the Company. The
damages sought in this action have not been quantified.  In the Original Action, the Company denied
the existence of the alleged contracts on which the Original Complaint was
based, and it further asserted that the Plaintiffs’ failure to perform prior
contracts with the Company by failing to pay for any gas received from the
Company was an absolute defense to the claims against the Company.

The Plaintiffs
previously attempted to reopen the Original Action based on the same assertions
of non-performance make.  The trial judge
denied that motion and the Plaintiffs appealed. 
That appeal is styled Leonard K. Nave and
Kentucky Natural Gas Service, LLC v. Majeed Saiedynami and Nami Resources
Company, LLC, Court of Appeals, Docket No. 2006-CA-000956. The
Plaintiffs/Appellants did not file a brief, and the Company has moved the Court
of Appeals to dismiss the appeal.

 1
 

NRC intends to vigorously
defend the New Action as it believes it has fully performed the settlement
agreement.  The Company further believes,
that this action should be dismissed as being barred by the doctrines of res judicata and collateral estoppel.

3.                                     Nami
Resources Company, LLC (the “Company”) has been involved in an ongoing dispute
with a significant lessor, Asher and Land and Mineral Company, Ltd. (“Asher”).  That dispute, includes claims by Asher that
the Company did not correctly calculate the royalties paid to it and that the
has Company otherwise failed to abide by certain terms of the leases relating
to the coordination of oil and gas development with coal development.

On September 8, 2006,
Asher filed a complaint to initiate an action styled Asher
Land and Mineral, Ltd. v. Nami Resources Company, LLC, Bell Circuit
Court, Civil Action No. 06-CI-00417. 
In that action, Asher sought damages and rescission of its leases with
the Company.  Before the Company filed a
responsive pleading, Asher voluntarily withdrew its complaint and dismissed that
action.

On December 15, 2006
Asher filed a new action styled Asher Land &
Mineral, Ltd. v. Nami Resources Company, LLC, Bell
Circuit Court, Civil Action No.  06-CI-00566. In
that action Asher makes the same allegations as in the prior suit, and adds a
claim for an undetermined amount of punitive damages.

4.                                   Jack Hall v. Nami Resources Company L.L.C.,
Bell Circuit Court, Civil Action Number
05-CI-00182. In this case, Mr. Hall, an elderly Bell County
resident, seeks damages for alleged damage to a water well at his rental
property which he claims was caused by NRC’s drilling activity. Plaintiffs have
previously offered to settle for under $10,000.00, and NRC has countered by
offering to drill him a new water well and pay a few hundred dollars nuisance
payment. Inasmuch as NRC had an oil and gas lease from the mineral owner, a
surface agreement from Mr. Hall, and a permit to lawfully drill at the place
and time, it appears this case is one of non-liability and should be settled
for a nuisance value, if not outright dismissed.

5.                                   Jeffrey Lynn Kelly v Nami Resources Company L.L.C.
and Huntington Energy, Clay Circuit Court, Civil
Action Number 04-CI-00343. This is a case where the heirs of Elihu
Kelly (a gentleman named Rich Kelly) are seeking payment of back royalties
allegedly due from the early ‘90s when this well was owned by Huntington Energy
Corporation. There is no claim that NRC has not paid royalties since acquiring
this well from Huntington, and it is believed that Huntington actually paid the
royalties on this well, but because Huntington is no longer doing business, it
has been difficult to reconstruct their payment history. However, from the
production records we have reviewed, it appears that the amount of royalties
involved for the time period in question are less than $2,500.00. Plaintiffs
have offered to settle for less than $7,500.00. Since Mr. Kelly now performs
some contract work for NRC, it is believed the case will be settled.

6.                                   James M. Skeen and Rita Skeen v Nami Resources
Company L.L.C.  Whitley Circuit Court,
Civil Action No. 05-CI-00848. This is a case where the Plaintiff
seeks to forfeit the lease and well (acquired from Huntington Energy
Corporation) for failure to drill additional wells. There is a claim that an
unspecified amount of royalties were missed for

 2
 

a period of time going back to the Huntington Energy Corporation
ownership. NRC views the amount of those royalties as being less than $5,000.
This is in the Canadatown area and engineering indicates it would not be
profitable to drill a new well.

 3

SCHEDULE 7.06

ENVIRONMENTAL

 

NONE

 1

SCHEDULE 7.12

INSURANCE

 

(The insurance
certificate follows this page)

 1

	
  

  	
  CERTIFICATE
  OF LIABILITY INSURANCE

  	
  DATE (MM/DD/YY)

  12/15/06

  
	
  PRODUCER

  	
  THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
  ONLY AND

  
	
        

  	
  CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS 

  
	
  Acordia-Morristown,
  TN

  	
  CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE

  
	
  628 East Morris
  Boulevard

  	
  AFFORDED BY THE POLICIES BELOW.

  
	
  P.O. Box 1379

  	
   

  
	
  Morristown TN
  37816-1379

  	
  COMPANIES
  AFFORDING COVERAGE

  
	
  (423) 586-2002

  	
  COMPANY

  
	
  INSURED

  	
  A           New Hampshire Insurance Co.

  
	
       

  	
  COMPANY

  
	
  Nami Resources
  Company, LLC; Ariana Energy, LLC;

  	
  B           American Int’l South Ins. Co.

  
	
  Trust Energy
  Company, LLC

  	
  COMPANY

  
	
  14825 St. Mary’s
  Lane

  	
  C           Illinois National Insurance Co.

  
	
  Suite 100

  	
  COMPANY

  
	
  Houston, TX 77079

  	
  D           American Home Assurance Co.

  
	
       

  	
   

  
	
  COVERAGES

  	
   

  
	
       

  	
   

  
	
  THIS IS TO CERTIFY THAT
  THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED
  ABOVE FOR THE POLICY PERIOD INDICATED, NOT WITHSTANDING ANY REQUIREMENT, TERM
  OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
  CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE
  POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND
  CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID
  CLAIMS.

  
					

 

	
  CO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  POLICY
  EFFECTIVE

  	
   

  	
  POLICY
  EXPIRATION

  	
   

  	
   

  	
   

  
	
  LTR

  	
   

  	
  TYPE OF
  INSURANCE

  	
   

  	
  POLICY
  NUMBER

  	
   

  	
  DATE
  (MM/DD/YY)

  	
   

  	
  DATE
  (MM/DD/YY)

  	
   

  	
  LIMITS

  	
   

  
	
       

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  GENERAL LIABILITY

  	
   

  	
  GL7565283

  	
   

  	
  11/15/06

  	
   

  	
  11/15/07

  	
   

  	
  GENERAL AGGREGATE

  	
  $

  	
  2,000,000

  	
   

  
	
  

  	
   

  	
  x COMMERCIAL GENERAL LIABILITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PRODUCTS-COMP/OP AGG

  	
  $

  	
  2,000,000

  	
   

  
	
  

  	
   

  	
  o  CLAIMS
  MADE     x  OCCUR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PERSONAL & ADV INJURY

  	
  $

  	
  1,000,000

  	
   

  
	
  

  	
   

  	
  o  OWNER’S
  & CONTRACTOR’S PROT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EACH OCCURRENCE

  	
  $

  	
  1,000,000

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  FIRE DAMAGE (Any one fire)

  	
  $

  	
  100,000

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MED EXP (Any one person)

  	
  $

  	
  5,000

  	
   

  
	
   

  	
   

  	
       

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  AUTOMOBILE LIABILITY

  	
   

  	
  CA7561278

  	
   

  	
  11/15/06

  	
   

  	
  11/15/07

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  x  ANY AUTO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  COMBINED SINGLE LIMIT

  	
  $

  	
  1,000,000

  	
   

  
	
  

  	
   

  	
  o  
  ALL OWNED AUTOS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BODILY INJURY

  	
  $

  	
   

  	
   

  
	
  

  	
   

  	
  o  
  SCHEDULED AUTOS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Per Person)

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  o  
  HIRED AUTOS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BODILY INJURY

  	
  $                            

  	
   

  	
   

  
	
  

  	
   

  	
  o  
  NON-OWNED AUTOS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Per accident)

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PROPERTY DAMAGE

  	
  $                            

  	
   

  	
   

  
	
  

  	
   

  	
       

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  GARAGE LIABILITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AUTO ONLY - EA ACCIDENT

  	
  $                            

  	
   

  	
   

  
	
  

  	
   

  	
  o  ANY AUTO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OTHER THAN AUTO ONLY:

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EACH ACCIDENT

  	
  $                            

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AGGREGATE

  	
  $                            

  	
   

  	
   

  
	
   

  	
   

  	
       

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  EXCESS LIABILITY

  	
   

  	
  BE7234807

  	
   

  	
  11/15/06

  	
   

  	
  11/15/07

  	
   

  	
  EACH OCCURRENCE

  	
  $

  	
  20,000,00

  	
   

  
	
  

  	
   

  	
  x  UMBRELLA FORM

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AGGREGATE

  	
  $

  	
  20,000,000

  	
   

  
	
  

  	
   

  	
  o  
  OTHER THAN UMBRELLA FORM

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $                            

  	
   

  	
   

  
	
   

  	
   

  	
       

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D

  	
   

  	
  WORKERS COMPENSATION AND EMPLOYERS’ LIABILITY

  	
   

  	
  WC7568308

  	
   

  	
  11/15/06

  	
   

  	
  11/15/07

  	
   

  	
  x

  	
  WC STATUTORY

  LIMITS

  	
  o  OTHER

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  THE PROPRIETOR/                       o  INCL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EL EACH ACCIDENT

  	
  $

  	
  1,000,000

  	
   

  
	
  

  	
   

  	
  PARTNERS/EXECUTIVE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EL DISEASE-POLICY LIMIT

  	
  $

  	
  1,000,000

  	
   

  
	
  

  	
   

  	
  OFFICERS ARE:                           o  EXCL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EL DISEASE-EA EMPLOYEE

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
  OTHER

  	
   

  	
   

  	
   

  	
   

  	
   

  
																

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
       

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
       

  	
   

  
	
  DESCRIPTION OF
  OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS

  
	
       

  
	
  General Liability Policy Contains Blanket Additional
  Insured Endorsement Per Attached

  
	
       

  
	
   

  
	
  CERTIFICATE HOLDER

  	
   

  	
   

  	
  CANCELLATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  SHOULD ANY OF THE ABOVE
  DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE
  ISSUING COMPANY WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN NOTICE TO THE
  CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL
  IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR
  REPRESENTATIVES.

  
	
   

  	
  Citibank, N.A., Administrative

  	
   

  	
   

  
	
   

  	
  Agent

  	
   

  	
   

  
	
   

  	
  ATTN: Angela McCracken

  	
   

  	
   

  
	
   

  	
  8401 North Central Expressway

  	
   

  	
   

  
	
   

  	
  Suite 500

  	
   

  	
   

  
	
   

  	
  Dallas, TX 75225

  	
   

  	
   

  	
  AUTHORIZED REPRESENTATIVE

  	
   

  
	
  ACORD 25-S (1/95)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/ Greg Shockley

  	
  Greg Shockley

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  ©ACORD
  CORPORATION 1988

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  CERTIFICATE:
  011/001/ 00026

  	
   

  

 

 2
 

IMPORTANT

If the certificate holder
is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this
certificate does not confer rights to the certificate holder in lieu of such
endorsement(s).

If SUBROGATION IS WAIVED,
subject to the terms and conditions of the policy, certain policies may require
an endorsement. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).

DISCLAIMER

The Certificate of Insurance on the reverse side of this form does not
constitute a contract between the issuing insurer(s), authorized representative
or producer, and the certificate holder, nor does it affirmatively or
negatively amend, extend or alter the coverage afforded by the policies listed
thereon.

 3
 

ENDORSEMENT

This endorsement
effective 12:01 AM. 11/15/2005 forms a part of policy No. GL 319-98-42 issued
to NAMI RESOURCES COMPANY LLC by NEW HAMPSHIRE INSURANCE COMPANY

THIS
ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL
INSURED - WHERE REQUIRED UNDER CONTRACT OR AGREEMENT

This endorsement modifies
insurance provided under the following:

COMMERCIAL GENERAL
LIABILITY COVERAGE FORM

Section II - Who is an Insured,
1., is amended to add:

f)                                        Any
person or organization to whom you become obligated to include as an additional
insured under this policy, as a result of any contract or agreement you enter
into which requires you to furnish insurance to that person or organization of
the type provided by this policy, but only with respect to liability arising
out of your operations or premises owned by or rented to you. However, the
insurance provided will not exceed the lesser of:

1.             The coverage and/or
limit of this policy, or

2.             The coverage and/or
limits required by said contract or agreement.

	
  

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Authorized
  Representative or

  
	
   

  	
  Countersignature
  (in States Where

  
	
   

  	
  Applicable)

  

 

 4
 

 

	
  

  	
  EVIDENCE
  OF PROPERTY INSURANCE

  	
  DATE (MM/DD/YY)

  12/15/06

  
	
   

  
	
  THIS IS EVIDENCE THAT
  INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE, AND CONVEYS ALL
  THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY.

  
	
  PRODUCER

  	
  PHONE

  	
  (423) 586-2002

  	
  COMPANY

  
	
   

  	
  (A/C. No. Ext):

  	
   

  	
   

  
	
  Acordia-Morristown,
  TN

  	
  Lexington
  Insurance Company

  
	
  628 East Morris
  Boulevard

  	
   

  
	
  P.O. Box 1379

  	
   

  
	
  Morristown TN
  37816-1379

  	
   

  
	
   

  	
   

  
	
  CODE:

  	
  SUB CODE:

  	
   

  
	
  AGENCY

  	
   

  
	
  CUSTOMER ID #: 165452

  	
   

  
	
   

  	
   

  
	
  INSURED

  	
  LOAN NUMBER

  	
  POLICY NUMBER

  
	
   

  	
   

  
	
  Nami Resources
  Company, LLC: Ariana Energy, LLC;

  	
   

  	
  7106072

  
	
  Trust Energy
  Company, LLC

  	
  EFFECTIVE DATE

  	
  EXPIRATION DATE

  	
   

  
	
  14825 St. Mary’s
  Lane

  Suite 100

  	
  9/23/06

  	
  9/23/07

  	
  o

  	
  CONTINUED UNTIL

  TERMINATED IF CHECKED

  
	
  Houston, TX 77079

  	
  THIS REPLACES EVIDENCE DATED:

  
	
   

  	
   

  
	
  PROPERTY
  INFORMATION

  	
   

  
	
  LOCATION/DESCRIPTION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Oil & Gas
  Drilling Equipment

  	
   

  
	
   

  	
   

  
	
  COVERAGE INFORMATION

  	
   

  
													

 

	
  COVERAGE/PERILS/FORMS

  	
   

  	
  AMOUNT OF INSURANCE

  	
   

  	
  DEDUCTIBLE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contractors
  Equipment Per Schedule Attached Deductible - 5% of Equipment Value Subject To
  $25,000 Minimum for Rigs, $10,000 Minimum All

  	
   

  	
  $

  	
  5,587,900

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

	
  REMARKS (Including Special
  Conditions)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CANCELLATION

  	
   

  
	
  THE POLICY IS SUBJECT TO
  THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD. SHOULD THE
  POLICY BE TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST
  IDENTIFIED BELOW 10 DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY
  CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE
  POLICY PROVISIONS OR AS REQUIRED BY LAW.

  
	
   

  	
   

  
	
  ADDITIONAL INTEREST

  	
   

  
	
  NAME AND ADDRESS

  	
   

  
	
   

  	
  MORTGAGEE

  	
  ADDITIONAL INSURED

  
	
  Citibank, N.A.,
  Administrative

  	
  x   LOSS PAYEE

  	
   

  
	
  Agent

  	
  LOAN #

  
	
  ATTN: Angola
  McCracken

  	
   

  
	
  8401 North
  Central Expressway

  	
   

  
	
  Suite 500

  	
  AUTHORIZED REPRESENTATIVE

  
	
  Dallas, TX 75225

  	
   

  
	
   

  	
  /s/ Greg Shockley

  	
   

  	
  Greg Shockley

  
	
  ACORD 27 (3/93)

  	
  © ACORD CORPORATION 1993

  
	
   

  	
  CERTIFICATE:
  008/001/ 00026

  
					

 

 5
 

 

	
  

  	
  SCHEDULE
  OF INSURANCE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Nami Resources Company,
  LLC

  
	
   

  	
   

  	
  14825 St. Mary’s Lane

  
	
   

  	
   

  	
  Suite 100

  
	
   

  	
   

  	
  Houston, TX 77079

  

 

	
  COVERAGE DESCRIPTION

  	
  COMPANY

  	
  POLICY NUMBER

  	
  EFFECTIVE

  	
  EXPIRATION

  
	
  Commercial Package

  	
  Lexington Insurance Company

  	
  7106072

  	
  09/23/2006

  	
  09/23/2007

  

 

	
  

  	
   

  	
   

  	
   

  	
  Year

  	
   

  	
  Serial Number

  	
   

  	
  Amount

  	
   

  
	
  Risk Information

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Oil & Gas
  Drilling Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 6

  	
   

  	
  Ajax Compressor Model 180 @

  Station 239

  Owned by Nami

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  100,000.00

  	
   

  
	
  # 7

  	
   

  	
  Ajax Compressor Model 280

  @ Station 135

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  175,000.00

  	
   

  
	
  # 8

  	
   

  	
  G342 Compressor Model 311 @

  Station 311 Old Brick Plant

  Unit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  18,000.00

  	
   

  
	
  # 9

  	
   

  	
  Ajax Compressor Model 60

  @ Station 615

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  50,000.00

  	
   

  
	
  # 10

  	
   

  	
  Ajax Compressor Model 360

  @ Station 137

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  270,000.00

  	
   

  
	
  # 11

  	
   

  	
  Ajax Compressor Model 180

  @ Station 136

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  100,000.00

  	
   

  
	
  # 12

  	
   

  	
  Ajax Compressor Model 280

  @ Station 442

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  175,000.00

  	
   

  
	
  # 13

  	
   

  	
  Ajax Compressor Model 360

  @ Station 443

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  270,000.00

  	
   

  
	
  # 14

  	
   

  	
  Ajax Compressor Model 140

  @ Station 720

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  90,000.00

  	
   

  
	
  # 15

  	
   

  	
  Arial JGM/2 Comp. w/Waukesha

  Eng. Model F817GU Spruce

  Creek, Station 629

  (LP - B&H Supply)

  	
   

  	
   

  	
   

  	
  F7376/402263

  	
   

  	
  $

  	
  66,000.00

  	
   

  
	
  # 16

  	
   

  	
  V6 225 Low Pressure Screw @

  Jellico Creek

  (LP - Jordan Tech Rental)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  48,000.00

  	
   

  

 

SCHEDULES
OF INSURANCE DO NOT PROVIDE COMPLETE INSURANCE COVERAGE INFORMATION.

PLEASE REFER TO THE POLICY(IES)
FOR COMPLETE AND CONTROLLING TERMS AND CONDITIONS.

 6
 

 

	
   

  	
   

  	
   

  	
   

  	
  Year

  	
   

  	
  Serial Number

  	
   

  	
  Amount

  	
   

  
	
  # 18

  	
   

  	
  Arial 325 Integral Comp.

  & Accessories Maple Creek

  Booster

  (LP - B&H Supply)

  	
   

  	
   

  	
   

  	
  E104

  	
   

  	
  $

  	
  75,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 21

  	
   

  	
  3508na/jgr/2-3 3 Stage 310 HP

  w/ (1) 13” & (1) 8.875”& (1)

  4.625” @ Windrock. TN

  (LP - Universal Compression)

  	
   

  	
   

  	
   

  	
  004400

  	
   

  	
  $

  	
  274,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 22

  	
   

  	
  379 TA/JG/4-4 4 Stage 415 HP

  w/ (1) 13.5” & (1) 8.875” &

  (1) 6.125” & (1) 3.625”

  @ Windrock, TN

  (LP - Universal Compression)

  	
   

  	
   

  	
   

  	
  103600

  	
   

  	
  $

  	
  336,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 23

  	
   

  	
  3412CLE/JGJ/4-3 3 Stage 637 HP

  w/ (2) 16.75” & (1) 11” & (1)

  5.5” @ Gausedale

  (LP - Universal Compression)

  	
   

  	
   

  	
   

  	
  105534

  	
   

  	
  $

  	
  365,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 24

  	
   

  	
  3306NA/SSU Rotary Screw 145 HP

  @ Coal Bed Hollow

  (LP - Universal Compression)

  	
   

  	
   

  	
   

  	
  400829

  	
   

  	
  $

  	
  138,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 25

  	
   

  	
  Unit 103552 3408TA Sullair

  Rotary Screw @ Strip Booster

  Location

  (LP - Universal Rental)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  150,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 26

  	
   

  	
  Ajax DPC360 2 Stage 360 HP w/

  (1) 15” & (1) 8” @ Station 442

  Gregory Branch

  (LP - Universal Compression)

  	
   

  	
   

  	
   

  	
  703820

  	
   

  	
  $

  	
  272,000.00

  	
   

  

 

SCHEDULES
OF INSURANCE DO NOT PROVIDE COMPLETE INSURANCE COVERAGE INFORMATION.

PLEASE REFER TO THE POLICY(IES)
FOR COMPLETE AND CONTROLLING TERMS AND CONDITIONS.

 7
 

 

	
   

  	
   

  	
   

  	
   

  	
  Year

  	
   

  	
  Serial Number

  	
   

  	
  Amount

  	
   

  
	
  # 27

  	
   

  	
  3304/JGP/2-44 Stage 95
  HP w/

  (1) 8.875” & (1)
  5.5” & (1)

  3.875” & (1) 2.25”
  in

  Warburg, TN

  (LP - Universal
  Compression)

  	
   

  	
   

  	
   

  	
  500907

  	
   

  	
  $

  	
  116,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 29

  	
   

  	
  3408NA/JGA/4-3
  3 HP Stage 255 

  w/ (2) 8.875” & (1)
  6.5” & (1)

  3.625” @ Station 340

  (LP - Universal Compression)

  	
   

  	
   

  	
   

  	
  102263

  	
   

  	
  $

  	
  220,400.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 33

  	
   

  	
  Waukesha/F-817
  Ariel Model 145

  @ 842.
  Unit #2

  	
   

  	
   

  	
   

  	
  549-91

  	
   

  	
  $

  	
  65,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 35

  	
   

  	
  Flatkick
  3304 Cat/Ariel JGP2

  @ Station 440

  Owned by Nami

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  100,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 36

  	
   

  	
  Waukesha
  817/JA17S Booster @

  Station 842 Mackey Bend

  Owned by Nami

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  66,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 37

  	
   

  	
  Liquid
  Ring Booster at

  Long Bottom

  Owned by Nami

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  45,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 38

  	
   

  	
  Liquid
  Ring Booster @ Vann #1

  Well

  Owned by Nami

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  32,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 39

  	
   

  	
  1197
  Ariel JGM2 @ Station 625

  (LP
  - B&H Supply)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  120,000,.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 40

  	
   

  	
  LeRo
  Screw Canada Booster #2

  60 HP GSC629

  (LP - Universal Compression)

  	
   

  	
   

  	
   

  	
  100566

  	
   

  	
  $

  	
  93,500.00

  	
   

  

 

SCHEDULES
OF INSURANCE DO NOT PROVIDE COMPLETE INSURANCE COVERAGE INFORMATION.

PLEASE REFER TO THE POLICY(IES)
FOR COMPLETE AND CONTROLLING TERMS AND CONDITIONS.

 8
 

 

	
   

  	
   

  	
   

  	
   

  	
  Year

  	
   

  	
  Serial Number

  	
   

  	
  Amount

  	
   

  
	
  # 41

  	
   

  	
  3406TA/JGA4/4
  Stage Booster

  @ Station
  634

  (LP - Universal
  Compression)

  	
   

  	
   

  	
   

  	
  402892

  	
   

  	
  $

  	
  305,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  #42

  	
   

  	
  Ajax
  DPC600 3 Stage @ Station

  450,
  Lewis Heirs

  (LP - Universal
  Compression)

  	
   

  	
   

  	
   

  	
  100048

  	
   

  	
  $

  	
  410,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 43

  	
   

  	
  6521
  GSI JGR/4 3 Stage at

  Lewis
  Heirs

  (LP
  - Universal Compression)

  	
   

  	
   

  	
   

  	
  106502

  	
   

  	
  $

  	
  473,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 44

  	
   

  	
  Natco
  Tower Reboiler

  @ Station 135 SMEPA

  	
   

  	
   

  	
   

  	
  EL9F7480102/EL3F8070

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 45

  	
   

  	
  Natco
  Tower Reboiler

  @ Station 138
  Enpro/Asher

  	
   

  	
   

  	
   

  	
  N19N1580102/N19N1570

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 46

  	
   

  	
  CE
  Natco Tower & Reboiler

  @ Station 239 Canada
  Town

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 47

  	
   

  	
  CE
  Natco Dehy Tower @ Station

  340 Jellico/Irish

  	
   

  	
   

  	
   

  	
  9A38601/EL908640101

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 48

  	
   

  	
  Natco
  Tower Natco Reboiler

  @ Station 442 Gregory
  Branch

  	
   

  	
   

  	
   

  	
  EL902580109/T9818802

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 49

  	
   

  	
  Natco
  Tower Reboiler @ Station

  443 Lay Branch

  	
   

  	
   

  	
   

  	
  ELT3C2460101/NX2909

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 50

  	
   

  	
  Natco
  Tower Natco Reboiler

  @
  Station 450 Lewis Heirs

  	
   

  	
   

  	
   

  	
  EL9F6730102/N19N1570

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 51

  	
   

  	
  New
  Dehy @ Station 615

  Mountain

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 52

  	
   

  	
  CE
  Natco Wireboiler Tower

  @ Station 623 Gausdale

  	
   

  	
   

  	
   

  	
  BA95601/EL9

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 53

  	
   

  	
  Natco
  Tower Reboiler @ Station

  629 Spruce Creck

  	
   

  	
   

  	
   

  	
  NTON1550103/EL9F5650

  	
   

  	
  $

  	
  40,000.00

  	
   

  

 

SCHEDULES
OF INSURANCE DO NOT PROVIDE COMPLETE INSURANCE COVERAGE INFORMATION.

PLEASE REFER TO THE POLICY(IES)
FOR COMPLETE AND CONTROLLING TERMS AND CONDITIONS.

 9
 

 

	
   

  	
   

  	
   

  	
   

  	
  Year

  	
   

  	
  Serial Number

  	
   

  	
  Amount

  	
   

  
	
  # 54

  	
   

  	
  CE
  Natco w/ Reboiler Tower

  @ Station 634 Mackey Bend

  	
   

  	
   

  	
   

  	
  IMC640370

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 55

  	
   

  	
  CE
  Natco w/ Reboiler Tower 

  @ 720 Mudd Creek

  	
   

  	
   

  	
   

  	
  72059/13601

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 56

  	
   

  	
  Liquid
  Ring Cub Booster @ 

  T-Hamlin NRC Owned

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  45,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  # 57

  	
   

  	
  4C91 Cub Liquid Ring
  Booster 

  @ Station 842 

  (LP - Jordan Tech Rental)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total For Oil & Gas
  Drilling Equipment

  	
   

  	
  $

  	
  5,587,900.00

  	
   

  
	
   

  	
   

  	
  Grand Total:

  	
   

  	
  $

  	
  5,587,900.00

  	
   

  

 

SCHEDULES
OF INSURANCE DO NOT PROVIDE COMPLETE INSURANCE COVERAGE INFORMATION.

PLEASE REFER TO THE POLICY(IES) FOR COMPLETE AND
CONTROLLING TERMS AND CONDITIONS.

 10

SCHEDULE 7.14

SUBSIDIARIES AND PARTNERSHIPS

	
  Subsidiaries

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Organizational

  Identification

  Number

  	
   

  	
  Principal Place of

  Business

  and Chief Executive

  Office

  	
   

  
	
  Ariana Energy, LLC

  	
   

  	
  Tennessee

  	
   

  	
  0425970

  	
   

  	
  Same
  as Borrower

  	
   

  
	
  Nami Resources Company
  L.L.C.

  	
   

  	
  Kentucky

  	
   

  	
  0478365

  	
   

  	
  Same
  as Borrower

  	
   

  
	
  Trust Energy Company, LLC

  	
   

  	
  Kentucky

  	
   

  	
  0601354

  	
   

  	
  Same as Borrower

  	
   

  

 

 1

SCHEDULE 7.18

GAS IMBALANCES

NONE

 1

SCHEDULE 7.19

MARKETING CONTRACTS

Transportation Agreement dated April 30, 1986, between
Southern Gas Company, Inc. and Delta Natural Gas Company, Inc., as amended by
Amendment to Transportation Agreement dated April 11, 1996, between Delta
Natural Gas Company, Inc. and Southern Gas Company of Delaware, Inc. re:  transportation of natural gas from Whitley
County, Kentucky to Clay County, Kentucky

Letter dated August 19, 1999, from Southern Gas Co. of
Delaware, Inc. to Nami Resources Company L.L.C. re:  conveyance of leases and wells by Southern
Gas Co. of Delaware, Inc. to Nami Resources Company L.L.C.

Agreement dated February 1, 2001, between Delta
Natural Gas Company, Inc. and Nami Resources Company L.L.C. re:  transportation of natural gas from southeast Kentucky
to Whitley County, Kentucky

Agreement dated August 24, 2004 between Delta Natural
Gas Company, Inc. and Nami Resources Company L.L.C. re:  transportation of natural gas in Knox County,
Kentucky

Agreement dated March 10, 2005, between Delta Natural
Gas Company, Inc. and Nami Resources Company L.L.C. re:  transportation of natural gas from Bell, Knox
and Harlan Counties, Kentucky

 1

SCHEDULE 7.20

CURRENT SWAP AGREEMENTS

NAMI RESOURCES COMPANY – 1 YEAR
(12 month) HEDGE w/ Bank of Oklahoma (Texas)

Dated:  12/07/06

	
  MONTH

  	
   

  	
  PRICE

  	
   

  	
  NYMEX

  SETTLEMENT

  	
   

  	
  VOLUME

  	
   

  	
  AMOUNT OWED

  TO/(FROM) BANK

  	
   

  
	
  JAN ‘07

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.7230

  	
   

  	
  217,000

  	
   

  	
  $

  	
  365,211.00

  	
   

  
	
  FEB

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.8030

  	
   

  	
  196,000

  	
   

  	
  $

  	
  345,548.00

  	
   

  
	
  MAR

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.7750

  	
   

  	
  217,000

  	
   

  	
  $

  	
  376,495.00

  	
   

  
	
  APR

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.6500

  	
   

  	
  210,000

  	
   

  	
  $

  	
  338,100.00

  	
   

  
	
  MAY

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.6550

  	
   

  	
  217,000

  	
   

  	
  $

  	
  350,455.00

  	
   

  
	
  JUN

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.7400

  	
   

  	
  210,000

  	
   

  	
  $

  	
  357,000.00

  	
   

  
	
  JUL

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.8430

  	
   

  	
  217,000

  	
   

  	
  $

  	
  391,251.00

  	
   

  
	
  AUG

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.9230

  	
   

  	
  217,000

  	
   

  	
  $

  	
  408,611.00

  	
   

  
	
  SEP

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.9880

  	
   

  	
  210,000

  	
   

  	
  $

  	
  409,080.00

  	
   

  
	
  OCT

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  8.1000

  	
   

  	
  217,000

  	
   

  	
  $

  	
  447,020.00

  	
   

  
	
  NOV

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  8.6400

  	
   

  	
  210,000

  	
   

  	
  $

  	
  546,000.00

  	
   

  
	
  DEC

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  9.1300

  	
   

  	
  217,000

  	
   

  	
  $

  	
  670,530.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Average

  	
   

  	
  $

  	
  6.0400

  	
   

  	
  $

  	
  7.998

  	
   

  	
  2,555,000

  	
   

  	
  $

  	
  (5,001,412.50

  	
  )

  

 

	
  STRIPS (1)

  	
   

  	
  PRICES

  	
   

  
	
  12
  MONTH (Jan - Dec)

  	
   

  	
  $

  	
  6.04

  	
   

  
					

 

(1) As locked in by Nami
Resources

Please
note:  All
NYMEX settlement prices are shown as current prices and are NOT final
expiration prices unless noted with an “S”.

“S” indicates
that the price is the FINAL settlement price for the month.

 1

SCHEDULE 7.24

MORTGAGE FILING OFFICES

I.                                         KENTUCKY

Attn: UCC Branch

Kentucky Secretary of State

700 Capital Avenue, Suite 153

Frankfurt, Kentucky 40601

Attn: Joan Ann Asher

Bell County Court Clerk

Bell County Courthouse

101 Courthouse Square

Pineville, Kentucky 40977

Attn: Freddy Wayne Thompson

Clay County Court Clerk

Clay County Courthouse

102 Richmond Rd., Suite 101

Manchester, Kentucky 40962

Attn: Wanda S. Clem

Harlan County Court Clerk

Harlan County Courthouse

129 South 1st Street

Harlan, Kentucky 40831

Attn: Mike Corey

Knox County Court Clerk

Knox County Courthouse

401 Court Square

Barbourville, Kentucky 40906

Attn: James Lewis

Leslie County Court Clerk

Leslie County Courthouse

22010 Main Street

Hyden, Kentucky 41749

Attn: Jo Kidd

McCreary County Court Clerk

McCreary County Courthouse

One North Main Street

Whitley City, Kentucky 42653

 1
 

Attn: Tom Rains

Whitley County Court Clerk

Whitley County Courthouse

200 Main Street

Williamsburg, Kentucky 40769

II.                                     TENNESSEE

Attn: Business Services

Tennessee Secretary of State

312 8th Avenue, North

6th Floor, Snodgrass Tower

Nashville, Tennessee 37243

Attn: Jeff Cole

Anderson County Register of Deeds

Anderson County Courthouse

100 N. Main Street

Clinton, Tennessee 37716-3608

Attn: Don L. Nance

Campbell County Register of Deeds

Campbell County Courthouse

195 Ky. Street

Jacksboro, Tennessee 37757

Attn: Sandy Leach-Dalton

Morgan County Register of Deeds

Morgan County Courthouse

415 S. Kingston St.

Wartburg, Tennessee 37887

Attn: Pat Phillips

Scott County Register of Deeds

Scott County Courthouse

283 Court Street

Huntsville, Tennessee 37756

 2

SCHEDULE 8.16

MINIMUM SWAP REQUIREMENTS

	
  Year

  	
   

  	
  Actual Hedged Volumes

  (MCfe)

  	
   

  	
  MMBtu

  	
   

  
	
  2007

  	
   

  	
  1,400,000

  	
   

  	
  1,708,355

  	
   

  
	
  2008

  	
   

  	
  2,400,000

  	
   

  	
  3,016,129

  	
   

  
	
  2009

  	
   

  	
  2,100,000

  	
   

  	
  2,649,361

  	
   

  
	
  2010

  	
   

  	
  1,900,000

  	
   

  	
  2,387,640

  	
   

  
	
  2011

  	
   

  	
  1,800,000

  	
   

  	
  2,196,009

  	
   

  

 

MINIMUM
PUT OPTION REQUIREMENTS

	
  Year

  	
   

  	
  Volume Subject to Put

  MMBtu

  	
   

  	
  Minimum Price

  (NYMEX)

  	
   

  
	
  2007

  	
   

  	
  1,356,478

  	
   

  	
  $

  	
  7.50

  	
   

  
	
  2008

  	
   

  	
  2,211,367

  	
   

  	
  $

  	
  7.50

  	
   

  
	
  2009

  	
   

  	
  1,840,135

  	
   

  	
  $

  	
  7.50

  	
   

  

 

 1

SCHEDULE 9.03

EXISTING
LIENS

Liens Granted by Nami Holding Company, LLC

 

None

 

Liens Granted by Trust Energy Company, LLC

 

None

 

Liens Granted by Ariana
Energy, LLC (Bank of Texas, N.A.)

1.                                       Deed of Trust and Security Agreement dated
March 16, 2006, from Ariana Energy, LLC to Bank of Texas, N. A. as
Administrative Agent, filed in the records shown of the following counties in
Tennessee:

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Anderson

  	
   

  	
  1420/148

  	
   

  	
  Trust Deed

  	
   

  
	
  Campbell

  	
   

  	
  T474/861

  	
   

  	
  Trust Deed

  	
   

  
	
  Morgan

  	
   

  	
  51/462

  	
   

  	
  Trust Deed

  	
   

  
	
  Scott

  	
   

  	
  223/708

  	
   

  	
  Trust Deed

  	
   

  
	
  Scott

  	
   

  	
  0/17

  	
   

  	
  Note Book

  	
   

  

 

2.                                       UCC Financing Statement naming Ariana Energy,
LLC as debtor and Bank of Texas, N.A. as Administrative Agent as secured party
[Deed of Trust and Security Agreement (Oil and Gas) dated March 16, 2006 from
Ariana Energy, LLC to Bank of Texas, N.A. as Administrative Agent]:

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tennessee Secretary of State

  	
   

  	
  206-021031

  	
   

  	
  4/17/06

  	
   

  

 

as amended:

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tennessee Secretary of State

  	
   

  	
  306-125487

  	
   

  	
  5/3/06

  	
   

  

 

 1
 

 

Liens Granted by Nami
Resources Company L.L.C. (Bank of Texas, N.A.)

1.                                      Mortgage dated December 17, 1985, from
Southern Gas Company, Inc. to First Security National Bank & Trust Company,
filed in the records shown of the following county in Kentucky:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Whitley

  	
   

  	
  139/236

  	
   

  	
  Mortgage

  	
   

  

 

2.                                      Mortgage dated April 10, 1987, from Southern
Gas company, Inc. to First Security National Bank & Trust company, filed in
the records shown of the following counties in Kentucky: 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Whitley

  	
   

  	
  148/499

  	
   

  	
  Mortgage

  	
   

  
	
  Leslie

  	
   

  	
  34/372

  	
   

  	
  Mortgage

  	
   

  
	
  Clay

  	
   

  	
  85/103

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  100/151

  	
   

  	
  Mortgage

  	
   

  
	
  Leslie

  	
   

  	
  1/346

  	
   

  	
  Fixture Filing

  	
   

  

 

3.                                      Mortgage and Security Interest dated November
1, 1988, from Natural Resource Services, Inc. and Southern Gas Company, Inc. to
Sequa Capital Corporation, filed in the records shown of the following counties
in Kentucky: 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Knox

  	
   

  	
  100/1

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  109/568

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  162/114

  	
   

  	
  Mortgage

  	
   

  

 

4.                                      Assignment of Note and Mortgage dated
December 27, 1990, from First Security National Bank & Trust Company to
Sequa Capital Corporation.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  38/48

  	
   

  	
  Miscellaneous

  	
   

  
	
  Whitley

  	
   

  	
  180/20

  	
   

  	
  Mortgage

  	
   

  

 

5.                                      Partial Release of Mortgage and Security
Agreement by First Security National Bank and Trust Company, dated December 9,
1991.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Whitley

  	
   

  	
  73/367

  	
   

  	
  Miscellaneous

  	
   

  
	
  Clay

  	
   

  	
  33/445

  	
   

  	
  Miscellaneous

  	
   

  

 

 2
 

 

6.                                      Mortgage and Security Interest dated March
23, 1993, from Southern Gas Holding Company, Inc. to National American Life
Insurance Company of Pennsylvania, filed in the records shown of the following
counties in Kentucky: 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Knox

  	
   

  	
  135/440

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  203/444

  	
   

  	
  Mortgage

  	
   

  

 

7.                                      Amended and Restated Mortgage, Collateral
Real Estate Mortgage, Deed of Trust, Indenture, Security Agreement, Financing
Statement and Assignment of Production dated February 24, 1994, from Southern
Gas Company, Inc. to Bank One, Texas, N.A., filed in the records shown of the
following counties in Kentucky:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  106/165

  	
   

  	
  Real Estate Mortgage

  	
   

  
	
  Knox

  	
   

  	
  143/515

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  215/293

  	
   

  	
  Mortgage

  	
   

  

 

8.                                      Partial Release of Mortgage dated February
26, 1994, from Southern Gas Company, Inc. to First Security National Bank &
Trust Company, recorded in Mortgage Book 139, page 236 and Mortgage Book 148,
page 499 and assigned to Sequa Capital Corporation by instrument of record in
Mortgage Book 180, page 120.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Whitley

  	
   

  	
  84/7

  	
   

  	
  Miscellaneous

  	
   

  

 

9.                                      Assignment of Notes, Liens, Security
Interests and Other Rights dated February 23, 1994, from National American Life
Insurance Company of Pennsylvania to Bank One, Texas, N.A, filed in the records
shown of the following counties in Kentucky:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Knox

  	
   

  	
  143/593

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  215/402

  	
   

  	
  Mortgage

  	
   

  

 

10.                                Mortgage, Collateral Real Estate Mortgage,
Deed of Trust, Indenture, Security Agreement, Financing Statement, and
Assignment of Production dated February 24, 1994, executed by American
Resources of Delaware, Inc. and Southern Gas Company of Delaware, Inc. in favor
of Bank One, Texas, N.A., and filed in the records shown of the following
counties in Kentucky: 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  106/206

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  144/1

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  215/406

  	
   

  	
  Mortgage

  	
   

  

 

 3
 

 

11.                                Ratification of and Amendment to Amended and
Restated Mortgage, Collateral Real Estate Mortgage, Deed of Trust, Indenture,
Security Agreement, Financing Statement and Assignment of Production dated as
of February 24, 1994, between Southern Gas Company of Delaware, Inc. and Bank
One, Texas, N.A., filed in the records shown of the following counties in
Kentucky:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  106/660

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  145/5

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  216/13

  	
   

  	
  Mortgage

  	
   

  

 

12.                                 Assignment of Notes, Liens, Security
Interests and Other Rights dated February 26, 1994, from Sequa Capital
Corporation to Bank One, Texas, National Association, recorded in the following
counties in Kentucky:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Record

  	
   

  
	
  Knox

  	
   

  	
  143/510

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  215/288

  	
   

  	
  Mortgage

  	
   

  

 

13.                                 Partial Release of Mortgage dated April 21,
1994, from Southern Gas Holding Company, Inc. to National American Life
Insurance Company of Pennsylvania, Inc., and assigned to Bank One, Texas, N.A.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Whitley

  	
   

  	
  85/257

  	
   

  	
  Miscellaneous

  	
   

  

 

14.                                Ratification of and Amendment to Mortgage,
Collateral Real Estate Mortgage, Deed of Trust, Indenture, Security Agreement,
Financing Statement and Assignment of Production dated as of September 28,
1995, by American Resources of Delaware, Inc., Southern Gas Company of
Delaware, Inc., and Den Norske Bank ASA, filed in the records shown of the
following counties in Kentucky: 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  44/302

  	
   

  	
  Miscellaneous

  	
   

  
	
  Knox

  	
   

  	
  158/667

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  228/572

  	
   

  	
  Mortgage

  	
   

  

 

 4
 

 

15.                                Assignment of Notes, Liens, Security
Interests, and Other Rights dated September 28, 1995, from Bank One, Texas,
National Association to Den Norske Bank AS, recorded in the following counties
in Kentucky: 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  44/314

  	
   

  	
  Miscellaneous

  	
   

  
	
  Knox

  	
   

  	
  158/655

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  228/583

  	
   

  	
  Mortgage

  	
   

  

 

16.                                Ratification of and Amendment to Mortgage,
Collateral Real Estate Mortgage, Deed of Trust, Indenture, Security Agreement,
Financing Statement and Assignment of Production dated as of August 7, 1996, by
American Resources of Delaware, Inc., Southern Gas Company of Delaware, Inc.,
and Den Norske Bank ASA, filed in the records shown of the following counties
in Kentucky: 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  45/367

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  165/685

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  238/482

  	
   

  	
  Mortgage

  	
   

  

 

17.                                Assignment of Notes, Liens, Security
Interests and Other Rights dated as of March 5, 1998, executed by Den Norske
Bank ASA, to DNB Assets, Inc., filed in the records shown of the following
counties in Kentucky: 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  47/594

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  182/219

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  260/603

  	
   

  	
  Mortgage

  	
   

  

 

18.                                Ratification of and Amendment to Mortgage,
Collateral Real Estate Mortgage, Deed of Trust, Indenture, Security Agreement,
Financing Statement and Assignment of Production dated March 5, 1998, by and
between American Resources of Delaware, Inc. Southern Gas Co. of Delaware, Inc.
and DNB Energy Assets, Inc., recorded in the following counties in Kentucky.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Whitley

  	
   

  	
  260/616

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  182/232

  	
   

  	
  Mortgage

  	
   

  
	
  Clay

  	
   

  	
  47/607

  	
   

  	
  Miscellaneous

  	
   

  

 

 5
 

 

19.                                Ratification of and Amendment of Mortgage,
Collateral Real Estate Mortgage, Deed of Trust, Indenture Security Agreement,
Financing Statement and Assignment of Production, dated March 5, 1998, from
American Resources of Delaware, Inc. and Southern Gas Co. of Delaware, Inc. and
DNB Energy Assets, Inc. (related to Second Amendment to First Amended and
Restated Credit Agreement, dated October 1, 1998) recorded in the following
counties in Kentucky:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Knox

  	
   

  	
  190/73

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  271/501

  	
   

  	
  Mortgage

  	
   

  
	
  Clay

  	
   

  	
  127/401

  	
   

  	
  Mortgage

  	
   

  

 

20.                                 Mortgage, Deed of
Trust, Assignment of Production, Security Agreement and Financing Statement,
dated May 5, 1998, from American Resources Offshore, Inc., American Resources
of Delaware and Southern Gas Co. of Delaware to Rayston K. Eustace, Trustee for
the benefit of TECO Oil & Gas, Inc., recorded in the following county in
Kentucky.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Knox

  	
   

  	
  182/242

  	
   

  	
  Mortgage

  	
   

  

 

21.                                Assumption, Renewal and Supplemental
Mortgage, Security Agreement, Assignment of Production, Fixture Filing and
Financing Statement dated September 10, 1999, executed by Nami Resources
Company L.L.C. in favor of Den Norske Bank ASA, and filed in the records shown
of the following counties in Kentucky:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Bell

  	
   

  	
  3/47

  	
   

  	
  Fixture Filing

  	
   

  
	
  Bell

  	
   

  	
  175/533

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  201/650

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  #42960 (12/6/99)

  	
   

  	
  Fixture

  	
   

  
	
  Laurel

  	
   

  	
  443/553

  	
   

  	
  Mortgage

  	
   

  
	
  Laurel

  	
   

  	
  8/564

  	
   

  	
  Fixture Filing

  	
   

  
	
  Leslie

  	
   

  	
  77/1

  	
   

  	
  Mortgage

  	
   

  
	
  Leslie

  	
   

  	
  3/492

  	
   

  	
  Fixture Filing

  	
   

  
	
  McCreary

  	
   

  	
  98/167

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  291/410

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  3/443

  	
   

  	
  Fixture Filing

  	
   

  
	
  Clay

  	
   

  	
  2/208

  	
   

  	
  Fixture Filing

  	
   

  
	
  Clay

  	
   

  	
  132/398

  	
   

  	
  Mortgage

  	
   

  
	
  Clay

  	
   

  	
  50/395

  	
   

  	
  Miscellaneous

  	
   

  

 

 6
 

 

22.                                Partial Release of Financing Documents dated May 5, 2000,  as referenced in Assumption, Renewal and
Supplemental Mortgage, Security Agreement, Assignment of Production, Fixture
Filing and Financing Statement (dated September 10, 1999).

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Whitley

  	
   

  	
  109/158

  	
   

  	
  Miscellaneous

  	
   

  

 

23.                                Mortgage, Security Agreement, Assignment of Production, and Financing
Statement, dated September 15, 2000, referring to Mortgage Book 136, page 710,
recorded May 21, 2001, executed by O. G. Investments, LLC, in favor of Den
Norske Bank ASA..

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  136/710

  	
   

  	
  Mortgage

  	
   

  
	
  McCreary

  	
   

  	
  100/721

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  309/148

  	
   

  	
  Mortgage

  	
   

  

 

24.                                First Modification of Assumption, Renewal and
Supplemental Mortgage, Security Agreement, Assignment of Production, Fixture
Filing and Financing Statement dated September 15, 2000, executed by Nami
Resources Company L.L.C. and Den Norske Bank ASA, and filed in the records
shown of the following counties in Kentucky.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Bell

  	
   

  	
  182/790

  	
   

  	
  Mortgage

  	
   

  
	
  Knox

  	
   

  	
  211/90

  	
   

  	
  Mortgage

  	
   

  
	
  Laurel

  	
   

  	
  461/369

  	
   

  	
  Mortgage

  	
   

  
	
  Leslie

  	
   

  	
  79/185

  	
   

  	
  Mortgage

  	
   

  
	
  McCreary

  	
   

  	
  100/743

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  309/195

  	
   

  	
  Mortgage

  	
   

  

 

25.                                Mortgage, Security Agreement, Assignment of
Production, and Financing Statement dated September 15, 2000, executed by Nami
Resources Company L.L.C. in favor of Den Norske Bank ASA, and filed in the
records shown of the following counties in Kentucky:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  136/732

  	
   

  	
  Mortgage

  	
   

  
	
  Harlan

  	
   

  	
  259/610

  	
   

  	
  Mortgage

  	
   

  

 

 7
 

 

26.                                Mortgage and Security Agreement (Oil and Gas)
dated as of March 23, 2001, executed by Nami Resources Company L.L.C. in favor
of Bank of Texas, N.A., recorded as follows: 

 

	
  Kentucky

  	
   

  	
  Volume/Page

  	
   

  	
  Records

  	
   

  
	
  Bell County

  	
   

  	
  186/693

  	
   

  	
  Mortgage

  	
   

  
	
  Clay County

  	
   

  	
  140/490

  	
   

  	
  Mortgage

  	
   

  
	
  Harlan County

  	
   

  	
  265/767

  	
   

  	
  Mortgage

  	
   

  
	
  Knox County

  	
   

  	
  219/325

  	
   

  	
  Mortgage

  	
   

  
	
  Leslie County

  	
   

  	
  81/240

  	
   

  	
  Mortgage

  	
   

  
	
  McCreary County

  	
   

  	
  104/246

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley County

  	
   

  	
  321/307

  	
   

  	
  Mortgage

  	
   

  

 

27.                                Mortgage and Security Agreement (Pipelines
and Gathering System) dated as of March 23, 2001, executed by Nami Resources
Company L.L.C. in favor of Bank of Texas, N.A., recorded as follows: 

 

	
  Kentucky

  	
   

  	
  Volume/Page

  	
   

  	
  Records

  	
   

  
	
  Bell County

  	
   

  	
  186/733

  	
   

  	
  Mortgage

  	
   

  
	
  Clay County

  	
   

  	
  140/455

  	
   

  	
  Mortgage

  	
   

  
	
  Harlan County

  	
   

  	
  266/1

  	
   

  	
  Mortgage

  	
   

  
	
  Knox County

  	
   

  	
  219/290

  	
   

  	
  Mortgage

  	
   

  
	
  Leslie County

  	
   

  	
  81/204

  	
   

  	
  Mortgage

  	
   

  
	
  McCreary County

  	
   

  	
  104/287

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley County

  	
   

  	
  321/272

  	
   

  	
  Mortgage

  	
   

  

 

28.                                Mortgage and Security Agreement (Production
Payment) between O.G. Investment, L.L.C. and Joint Investment and Development,
L.L.C. and Bank of Texas, National Association, dated March 23, 2001.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  McCreary

  	
   

  	
  104/228

  	
   

  	
  Mortgage

  	
   

  
	
  Clay

  	
   

  	
  140/437

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley

  	
   

  	
  321/254

  	
   

  	
  Mortgage

  	
   

  

 

29.                                 Financing
Statement recorded May 1, 2000, of record in Fixture Filing Book 3, page 201,
having been amended by that certain UCC-3 Financing Statement Amended recorded
October 18, 2000, of record in Fixture Filing Book 3, page 396, and having been
assigned to Den Norske Bank, ASA, by that certain Assignment of Financing
Statements recorded May 21, 2001, of record in Mortgage Book 186, page 690, and
Fixture Filing Book 3, page 467.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Bell

  	
   

  	
  3/201

  	
   

  	
  Fixture Filing

  	
   

  
	
  Bell

  	
   

  	
  3/396

  	
   

  	
  Fixture Filing

  	
   

  
	
  Bell

  	
   

  	
  3/467

  	
   

  	
  Fixture Filing

  	
   

  
	
  Bell

  	
   

  	
  186/690

  	
   

  	
  Mortgage

  	
   

  

 

 8
 

 

30.                                Financing Statement of record in Fixture
Filing Book 3, page 375 between Nami Resources Company L.L.C. and Bank of
Texas, N.A., including but not limited to accounts and equipment. 

 

	
  Location

  	
   

  	
  Volume Page

  	
   

  	
  Record Book

  	
   

  
	
  Clay

  	
   

  	
  3/375

  	
   

  	
  Fixture Filing

  	
   

  
	
  Clay

  	
   

  	
  140/437

  	
   

  	
  Mortgage

  	
   

  

 

31.                                Financing Statement of record in Fixture Filing Book 8, page 362
between Nami Resources Company L.L.C. and Bank of Texas, N.A., including but
not limited to accounts and equipment, and amended February 20, 2006, by UCC
Financing Statement recorded in Fixture Filing Book 8, Page 237.

 

	
  Location

  	
   

  	
  Volume Page

  	
   

  	
  Record Book

  	
   

  
	
  Leslie

  	
   

  	
  8/362

  	
   

  	
  Fixture Filing

  	
   

  
	
  Leslie

  	
   

  	
  8/237

  	
   

  	
  Fixture Filing

  	
   

  
	
  Leslie

  	
   

  	
  81/194

  	
   

  	
  Mortgage

  	
   

  

 

32.                                Financing Statement recorded April 26, 2006, of record in Fixture
Filing Book 8, Page 325 between Nami Resources Company L.L.C. and Bank of
Texas, N.A., including but not limited to accounts and equipment, and continued
February 20, 2006, by UCC Financing Statement recorded in Fixture Filing Book
8, Page 235.

 

	
  Location

  	
   

  	
  Volume Page

  	
   

  	
  Record Book

  	
   

  
	
  Leslie

  	
   

  	
  8/325

  	
   

  	
  Fixture Filing

  	
   

  
	
  Leslie

  	
   

  	
  8/235

  	
   

  	
  Fixture Filing

  	
   

  
	
  Leslie

  	
   

  	
  81/204

  	
   

  	
  Mortgage

  	
   

  

 

33.                                Financing Statement recorded March 23, 2001, of record in Fixture
Filing Book 8, Page 401 between Nami Resources Company L.L.C. and Bank of
Texas, N.A., including but not limited to accounts and equipment, and amended
February 20, 2006, by UCC Financing Statement recorded in Fixture Filing Book
8, Page 239.

 

	
  Location

  	
   

  	
  Volume Page

  	
   

  	
  Record Book

  	
   

  
	
  Leslie

  	
   

  	
  8/401

  	
   

  	
  Fixture Filing

  	
   

  
	
  Leslie

  	
   

  	
  8/239

  	
   

  	
  Fixture Filing

  	
   

  
	
  Leslie

  	
   

  	
  81/240

  	
   

  	
  Mortgage

  	
   

  

 

34.                                Mortgage and Security Agreement (Oil and Gas) dated as of July 18,
2001, executed by Nami Resources Company L.L.C. in favor of Bank of Texas,
N.A., recorded as follows:

 

	
  Location

  	
   

  	
  Volume Page

  	
   

  	
  Record Book

  	
   

  
	
  Clay County

  	
   

  	
  142/477

  	
   

  	
  Mortgage

  	
   

  
	
  Knox County

  	
   

  	
  M223/199

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley County

  	
   

  	
  326/497

  	
   

  	
  Mortgage

  	
   

  

 

 9
 

 

35.                                Partial Release, recorded September 30, 2002, from Bank of Texas
National Association to NAMI Resources Company, LLC.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Clay

  	
   

  	
  56/221

  	
   

  	
  Miscellaneous

  	
   

  

 

36.                                Assignment of Notes and Mortgages dated effective March 27, 2001,
executed by DNB Energy Assets, Inc. and Den Norske Bank ASA for the purpose of
transferring and assigning to Bank of Texas certain indebtedness and the liens
securing that indebtedness owned by Nami Resources Company L.L.C. recorded as
follows: 

 

	
  Location

  	
   

  	
  Volume/Page

  	
   

  	
  Records

  	
   

  
	
  Bell County

  	
   

  	
  186/681

  	
   

  	
  Mortgage

  	
   

  
	
  Clay County

  	
   

  	
  53/283

  	
   

  	
  Miscellaneous

  	
   

  
	
  Harlan County

  	
   

  	
  265/758

  	
   

  	
  Mortgage

  	
   

  
	
  Knox County

  	
   

  	
  219/284

  	
   

  	
  Mortgage

  	
   

  
	
  Laurel County

  	
   

  	
  487/624

  	
   

  	
  Mortgage

  	
   

  
	
  Leslie County

  	
   

  	
  81/194

  	
   

  	
  Mortgage

  	
   

  
	
  McCreary County

  	
   

  	
  104/219

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley County

  	
   

  	
  321/245

  	
   

  	
  Mortgage

  	
   

  

 

37.                                First Amendment to Mortgages dated as of June 30, 2003, executed by
Nami Resources Company L.L.C. and Bank of Texas, N.A., as Administrative Agent,
recorded as follows:

 

	
  Location

  	
   

  	
  Volume/Page

  	
   

  	
  Records

  	
   

  
	
  Bell County

  	
   

  	
  216/547

  	
   

  	
  Mortgage

  	
   

  
	
  Clay County

  	
   

  	
  57/506

  	
   

  	
  Mortgage

  	
   

  
	
  Harlan County

  	
   

  	
  300/720

  	
   

  	
  Mortgage

  	
   

  
	
  Knox County

  	
   

  	
  259/354

  	
   

  	
  Mortgage

  	
   

  
	
  Leslie County

  	
   

  	
  94/543

  	
   

  	
  Mortgage

  	
   

  
	
  McCreary County

  	
   

  	
  121/528

  	
   

  	
  Mortgage

  	
   

  
	
  Whitley County

  	
   

  	
  385/429

  	
   

  	
  Mortgage

  	
   

  

 

38.                                Assignment and Bill of Sale dated December 30, 2004 executed by Nami
Resources Company, LLC to Trust Energy Company, LLC, recorded as follows:

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  	
   

  
	
  Bell County

  	
   

  	
  45/89

  	
   

  	
  Lease

  	
   

  
	
  Clay County

  	
   

  	
  88/506

  	
   

  	
  Lease

  	
   

  
	
  Harlan County

  	
   

  	
  44/405

  	
   

  	
  Lease

  	
   

  
	
  Knox County

  	
   

  	
  99/395-483

  	
   

  	
  Lease

  	
   

  
	
  Laurel County

  	
   

  	
  48/665

  	
   

  	
  Miscellaneous

  	
   

  
	
  Leslie County

  	
   

  	
  65/643

  	
   

  	
  Lease

  	
   

  
	
  McCreary County

  	
   

  	
  18/667-755

  	
   

  	
  Miscellaneous

  	
   

  
	
  Whitley County

  	
   

  	
  85/15-102

  	
   

  	
  Lease

  	
   

  

 

 10

39.                                 Division and Partial Assignment of Notes and
Liens dated December 30, 2004 executed by First American Bank, SSB and Bank of
Texas, N.A., TCW Asset Management Company and Nami Resources Company, LLC.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Bell County

  	
   

  	
  236/570

  	
   

  	
  Mortgage

  
	
  Clay County

  	
   

  	
  170/58

  	
   

  	
  Mortgage

  
	
  Harlan County

  	
   

  	
  325/360

  	
   

  	
  Mortgage

  
	
  Knox County

  	
   

  	
  26/157-258

  	
   

  	
  Miscellaneous

  
	
  Laurel County

  	
   

  	
  49/01

  	
   

  	
  Miscellaneous

  
	
  Leslie County

  	
   

  	
  103/29

  	
   

  	
  Mortgage

  
	
  McCreary County

  	
   

  	
  135/307-409

  	
   

  	
  Notes & Liens

  
	
  Whitley County

  	
   

  	
  85/103-204

  	
   

  	
  Lease

  

 

40.                                 Amended and Restated Deed of Trust, Mortgage,
Assignment, Security Agreement, Fixture Filing and Financing Statement dated
December 30, 2004 executed by Trust Energy Company, LLC and TCW Asset
Management Company, Agent and Richard C. Raines, Trustee

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Bell County

  	
   

  	
  236/672

  	
   

  	
  Mortgage

  
	
  Bell County

  	
   

  	
  5/244

  	
   

  	
  Fixture

  
	
  Clay County

  	
   

  	
  170/160

  	
   

  	
  Mortgage

  
	
  Clay County

  	
   

  	
  3/1

  	
   

  	
  Fixture

  
	
  Harlan County

  	
   

  	
  325/463

  	
   

  	
  Mortgage

  
	
  Harlan County

  	
   

  	
  6/634

  	
   

  	
  Fixture

  
	
  Knox County

  	
   

  	
  289/1-115

  	
   

  	
  Mortgage

  
	
  Knox County

  	
   

  	
  4/374-487

  	
   

  	
  Fixture

  
	
  Laurel County

  	
   

  	
  706/138

  	
   

  	
  Mortgage

  
	
  Laurel County

  	
   

  	
  12/111

  	
   

  	
  Fixture

  
	
  Leslie County

  	
   

  	
  103/131

  	
   

  	
  Mortgage

  
	
  Leslie County

  	
   

  	
  7/319

  	
   

  	
  Fixture

  
	
  McCreary County

  	
   

  	
  135/410-524

  	
   

  	
  Record

  
	
  McCreary County

  	
   

  	
  135/525-639

  	
   

  	
  Record

  
	
  Whitley County

  	
   

  	
  424/590-704

  	
   

  	
  Mortgage

  
	
  Whitley County

  	
   

  	
  4/546-660

  	
   

  	
  Fixture

  

 

41.                                 Financing Statement between Nami Resources
Company, L.L.C. and Bank of Texas, N.A., recorded May 25, 2005, including but
not limited to accounts and equipment, referencing Mortgage Book 104, page 228.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  McCreary

  	
   

  	
  148/382

  	
   

  	
  Mortgage

  

 

 11
 

 

42.                                 Financing Statement recorded April 12, 2006,
regarding Bank of Oklahoma, from Nami Resources Company, L.L.C., and amended by
UCC Financing Statement recorded in Fixture Filing Book 5, Page 38, including
but not limited to fixtures, realty and personalty, referencing Mortgage and
Security Agreement attached.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Knox

  	
   

  	
  4/600

  	
   

  	
  Fixture Filing

  
	
  Knox

  	
   

  	
  5/38

  	
   

  	
  Fixture Filing

  

 

43.                                 Financing Statement recorded April 12, 2006,
from NAMI Resources Company, LLC to Bank of Texas, N.A., including but not
limited to fixtures, realty and personalty, referencing Mortgage and Security
Agreement attached.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Knox

  	
   

  	
  4/637

  	
   

  	
  Fixture Filing

  

 

44.                                 Financing Statement recorded April 7, 2006,
from Joint Investment and Development, LLC to Bank of Oklahoma, N.A., including
but not limited to fixtures, realty and personalty, referencing Mortgage and
Security Agreement attached, and amended by filing recorded at Fixture Filing
Book 3, Page 417.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  3/160

  	
   

  	
  Fixture Filing

  
	
  Clay

  	
   

  	
  3/417

  	
   

  	
  Fixture Filing

  

 

45.                                 Financing Statement recorded April 7, 2006,
from Nami Resources Company, L.L.C to Bank of Oklahoma, N.A., including but not
limited to fixtures, realty and personalty, recorded in Fixture Filing Book 8,
Page 241, and amended April 18, 2006, recorded in Fixture Filing Book 8, Page
321, and referencing Oil and Gas Mortgage dated March 23, 2001.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Leslie

  	
   

  	
  8/241

  	
   

  	
  Fixture Filing

  
	
  Leslie

  	
   

  	
  8/321

  	
   

  	
  Fixture Filing

  

 

46.                                 Financing Statement recorded April 10, 2006,
from Nami Resources Company, L.L.C to Bank of Oklahoma, N.A., including but not
limited to fixtures, realty and personalty, recorded in Fixture Filing Book 8,
Page 284, and amended April 6, 2006, in Fixture Filing Book 8, Page 323, amended
again May 1, 2006, in Fixture Filing Book 8, Page 399, and referencing a
Pipeline Mortgage dated March 23, 2001.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Leslie

  	
   

  	
  8/284

  	
   

  	
  Fixture Filing

  
	
  Leslie

  	
   

  	
  8/323

  	
   

  	
  Fixture Filing

  
	
  Leslie

  	
   

  	
  8/399

  	
   

  	
  Fixture Filing

  

 

 12
 

47.                                 Financing Statement recorded April 10, 2006,
from NAMI Resources Company, LLC to Bank of Oklahoma, N.A., and amended by UCC
Financing Statement recorded in Fixture Filing Book 3, Page 416, including but
not limited to fixtures, realty and personalty, referencing Mortgage and
Security Agreement attached.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  3/180

  	
   

  	
  Fixture Filing

  
	
  Clay

  	
   

  	
  3/416

  	
   

  	
  Fixture Filing

  

 

48.                                 Financing Statement recorded April 24, 2006,
from NAMI Resources Company, LLC to Bank of Oklahoma, N.A., and amended by UCC
Financing Statement recorded in Fixture Filing Book 3, Page 414, including but
not limited to accounts and equipment, referencing Miscellaneous Book 53, page
283.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  3/338

  	
   

  	
  Fixture Filing

  
	
  Clay

  	
   

  	
  3/414

  	
   

  	
  Fixture Filing

  

 

49.                                 Financing Statement recorded April 24, 2006,
from Nami Resources Company, L.L.C., to Bank of Texas, N.A., including but not
limited to accounts and equipment, referencing Mortgage Book 140, page 455.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  3/264

  	
   

  	
  Fixture Filing

  

 

50.                                 Financing Statement recorded April 25, 2006,
between Nami Resources Company L.L.C. and Bank of Texas, N.A., including but
not limited to accounts and equipment, referencing Mortgage Book 321, page 307.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Whitley

  	
   

  	
  4/761

  	
   

  	
  Fixture Filing

  

 

51.                                 Financing Statement recorded April 13, 2006,
between Nami Resources Company L.L.C. and Bank of Oklahoma, N.A., and amended
by UCC Financing Statement Amendment filed April 25, 2006 in Fixture Filing
Book 5, page 239, including but not limited to fixtures, realty and personalty,
referencing Mortgage and Security Agreement attached.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Whitley

  	
   

  	
  5/89

  	
   

  	
  Fixture Filing

  
	
  Whitley

  	
   

  	
  5/239

  	
   

  	
  Fixture Filing

  

 

 13
 

52.           Financing
Statement recorded April 10, 2006, from NAMI Resources Company, LLC to Bank of
Oklahoma, N.A., and amended by UCC Financing Statement filed in Fixture Filing
Book 3, Page 415, including but not limited to fixtures, realty and personalty,
referencing Mortgage and Security Agreement attached.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  3/217

  	
   

  	
  Fixture Filing

  
	
  Clay

  	
   

  	
  3/415

  	
   

  	
  Fixture Filing

  

 

53.                                 Financing Statement recorded April 26, 2006,
between Nami Resources Company, L.L.C and Bank of Texas, N.A., including but
not limited to accounts, fixtures and equipment. 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  3/301

  	
   

  	
  Fixture Filing

  

 

54.                                 Financing Statement recorded April 25, 2006,
between Nami Resources Company L.L.C. and Bank of Texas, N.A., including but
not limited to accounts and equipment, referencing Mortgage Book 321, page 254.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Whitley

  	
   

  	
  5/126

  	
   

  	
  Fixture Filing

  

 

55.                                 Financing Statement recorded April 25, 2006,
between Nami Resources Company L.L.C. and Bank of Texas, N.A., including but
not limited to accounts and equipment, referencing Mortgage Book 321, page 272.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Whitley

  	
   

  	
  5/163

  	
   

  	
  Fixture Filing

  

 

56.                                 Financing Statement recorded April 25, 2006,
of record in Fixture Filing Book 5, page 200 between Nami Resources Company
L.L.C. and Bank of Texas, N.A., including but not limited to accounts and
equipment, referencing Mortgage Book 321, page 245.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Whitley

  	
   

  	
  5/200

  	
   

  	
  Fixture Filing

  

 

57.                                 Financing Statement recorded April 13, 2006,
from Nami Resources Company, L.L.C., to Bank of Oklahoma, N.A., and amended by
UCC Financing Statement filed at Fixture Filing Book 5, Page 237, including but
not limited to fixtures, realty and personalty, referencing Mortgage and
Security Agreement attached.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Whitley

  	
   

  	
  5/1

  	
   

  	
  Fixture Filing

  
	
  Whitley

  	
   

  	
  5/237

  	
   

  	
  Fixture Filing

  

 

 14
 

58.                                 Financing Statement, with a recordation date
that is illegible, from Nami Resources Company, L.L.C. to Bank of Texas, N.A.,
including but not limited to accounts and equipment. 

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Knox

  	
   

  	
  5/40

  	
   

  	
  Fixture Filing

  

 

59.                                 Financing Statement, with a recordation date
which is illegible, from NAMI Resources Company, LLC to Bank of Texas, N.A.,
including but not limited to accounts and equipment.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Knox

  	
   

  	
  5/77

  	
   

  	
  Fixture Filing

  

 

60.                                 Financing Statement, of which the recordation
date is illegible, from NAMI Resources Company, LLC to Bank of Texas, N.A.,
including but not limited to accounts and equipment.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Knox

  	
   

  	
  5/1

  	
   

  	
  Fixture Filing

  

 

61.                                 Financing Statement, the recordation date of
which is April 12, 2006, from NAMI Resources Company, LLC to Bank of Texas,
N.A.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Knox

  	
   

  	
  4/700

  	
   

  	
  Fixture Filing

  

 

62.                                 Financing Statement, the recordation date of
which is illegible, from NAMI Resources Company, LLC to Bank of Texas, N.A.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  McCreary

  	
   

  	
  149/148

  	
   

  	
  Mortgage

  

 

63.                                 Financing Statement between Nami Resources
and Bank of Texas, N.A., recorded May 30, 2006, including but not limited to
accounts and equipment, referencing Mortgage Book 104, page 246.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  McCreary

  	
   

  	
  148/430

  	
   

  	
  Mortgage

  

 

64.                                 Financing Statement between Nami Resources
Company L.L.C. and Bank of Oklahoma, N.A., filed May 30, 2006, including but
not limited to accounts and equipment, referencing Mortgage Book 104, page 287.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  McCreary

  	
   

  	
  148/468

  	
   

  	
  Mortgage

  

 

 15
 

65.                                 Financing
Statement between Nami Resources Company, L.L.C. and Bank of Texas, N.A.,
recorded April 21, 2006, referencing attached Security Agreement for Oil and
Gas.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  McCreary

  	
   

  	
  149/105

  	
   

  	
  Mortgage

  

 

66.                                 Financing Statement Amendment referencing
Assignment of Mortgage filed of record in Miscellaneous Book 53, page 283.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  62/152

  	
   

  	
  Miscellaneous

  

 

67.                                 Financing Statement Amendment from Nami
Resources Company, L.L.C., to Bank of Texas, N.A., referencing Mortgage Book
140, page 437.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  62/153

  	
   

  	
  Miscellaneous

  

 

68.                                 Financing Statement Amendment, referencing
Mortgage recorded in Mortgage Book 140, page 455.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  62/154

  	
   

  	
  Miscellaneous

  

 

69.                                 Financing Statement Amendment, referencing
Mortgage recorded in Mortgage Book 140, page 490.

 

	
  Location

  	
   

  	
  Book/Page

  	
   

  	
  Records

  
	
  Clay

  	
   

  	
  62/155

  	
   

  	
  Miscellaneous

  

 

70.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Texas, N.A. as secured party [Mortgage and
Security Agreement (Oil and Gas) dated March 23, 2001 from Nami Resources
Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160911-68.01

  	
   

  	
  4/12/06

  

 

 16
 

71.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Oklahoma, N.A. as secured party [Mortgage
and Security Agreement (Oil and Gas) dated March 23, 2001 from Nami Resources
Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160770-51.01

  	
   

  	
  4/11/06

  

 

As
amended to change secured party to Bank of Texas, N.A.:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160770-51.02

  	
   

  	
  4/25/06

  

 

72.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Texas, N.A. as secured party [Mortgage and
Security Agreement (Oil and Gas) dated March 23, 2001 from Nami Resources Company
L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160751-20.01

  	
   

  	
  4/11/06

  

 

73.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Texas, N.A. as secured party [Mortgage and
Security Agreement (Pipelines and Gathering System) dated March 23, 2001 from
Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160742-10.01

  	
   

  	
  4/11/06

  

 

As
amended:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160742-10.02

  	
   

  	
  4/25/06

  

 

74.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Oklahoma, N.A. as secured party [Mortgage
and Security Agreement (Pipelines and Gathering System) dated March 23, 2001
from Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160740-98.01

  	
   

  	
  4/11/06

  

 

 17
 

As
amended to change secured party to Bank of Texas, N.A.:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160740-98.02

  	
   

  	
  4/25/06

  

 

75.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Oklahoma, N.A. as secured party [Mortgage
and Security Agreement (Pipelines and Gathering System) dated March 23, 2001
from Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160738-55.01

  	
   

  	
  4/11/06

  

 

As
amended to change secured party to Bank of Texas, N.A.:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160738-55.02

  	
   

  	
  4/25/06

  

 

76.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Oklahoma, N.A. as secured party [Mortgage
and Security Agreement (Pipelines and Gathering System) dated March 23, 2001
from Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160538-33.01

  	
   

  	
  4/10/06

  

 

As
amended to change secured party to Bank of Texas, N.A.:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160538-33.02

  	
   

  	
  4/25/06

  

 

77.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Oklahoma, N.A. as secured party [Mortgage
and Security Agreement (Pipelines and Gathering System) dated March 23, 2001
from Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160534-99.01

  	
   

  	
  4/10/06

  

 

 18
 

As
amended to change secured party to Bank of Texas, N.A.:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160534-99.02

  	
   

  	
  4/25/06

  

 

78.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Oklahoma, N.A. as secured party [Mortgage
and Security Agreement (Pipelines and Gathering System) dated March 23, 2001
from Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160521-45.01

  	
   

  	
  4/10/06

  

 

As
amended to change secured party to Bank of Texas, N.A.:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2160521-45.02

  	
   

  	
  4/25/06

  

 

79.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Oklahoma, N.A. as secured party [Mortgage
and Security Agreement (Pipelines and Gathering System) dated March 23, 2001
from Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2159532-45.01

  	
   

  	
  4/6/06

  

 

As
amended to change secured party to Bank of Texas, N.A.:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2159532-45.02

  	
   

  	
  4/18/06

  

 

80.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Oklahoma, N.A. as secured party [Mortgage
and Security Agreement (Oil and Gas) dated March 23, 2001 from Nami Resources
Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2159485-62.01

  	
   

  	
  4/6/06

  

 

 19
 

As
amended to change secured party to Bank of Texas, N.A.:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2159485-62.02

  	
   

  	
  6/1/06

  

 

81.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Texas, N.A. as secured party [Mortgage and
Security Agreement (Pipelines and Gathering System) dated March 23, 2001 from
Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2159485-62.02

  	
   

  	
  3/17/06

  

 

82.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Texas, N.A. as secured party [Mortgage and
Security Agreement (Oil and Gas) dated March 23, 2001 from Nami Resources
Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2153480-91.01

  	
   

  	
  3/13/06

  

 

83.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Texas, N.A. as secured party [Mortgage and
Security Agreement (Oil and Gas) dated March 23, 2001 from Nami Resources
Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2006-2153393-34.01

  	
   

  	
  3/13/06

  

 

84.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Texas, N.A. as secured party [Mortgage and
Security Agreement (Oil and Gas) dated March 23, 2001 from Nami Resources
Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of
  State

  	
   

  	
  2001-1608188-00

  	
   

  	
  6/4/01

  

 

 20
 

As
amended, assigned, continued:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2001-1608188-00

  	
   

  	
  8/23/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2001-1608188-00

  	
   

  	
  1/20/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2001-1608188-00

  	
   

  	
  1/20/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2001-1608188-00

  	
   

  	
  3/10/06

  

 

85.                                 UCC Financing Statement naming Nami Resources
Company L.L.C. as debtor and Bank of Texas, N.A. as secured party [Mortgage and
Security Agreement (Pipeline and Gathering System) dated March 23, 2001 from
Nami Resources Company L.L.C. to Bank of Texas, National Association]:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2001-1608187-00

  	
   

  	
  6/4/01

  

 

As continued:

 

	
  Filing Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2001-1608187-00

  	
   

  	
  3/10/06

  

 

Liens Granted by Nami
Resources Company L.L.C. (secured parties other than Bank of Texas, N.A.)

 

	
  Filing
  Location

  	
   

  	
  Filing Number

  	
   

  	
  Filing Date

  	
   

  	
  Secured Party

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2003-1913418-82

  	
   

  	
  4/4/03

  	
   

  	
  CitiCapital Commercial Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2005-2099912-49

  	
   

  	
  6/23/05

  	
   

  	
  Whayne Supply Company

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kentucky Secretary of State

  	
   

  	
  2006-2180362-30

  	
   

  	
  7/10/06

  	
   

  	
  Foxy Air, LLC/General Electric Capital Corporation

  

 

 21

SCHEDULE 9.05

INVESTMENTS

NONE, except for the ownership by the
Borrower of 100% of the Equity Interests of each of Ariana, NRC and TEC and any
described in the Financial Statements.

 1Exhibit 10.2

 

 

 

 

FIRST AMENDMENT TO CREDIT
AGREEMENT

Among

NAMI HOLDING COMPANY, LLC,

as
Borrower,

CITIBANK, N.A.,

as
Administrative Agent and L/C Issuer,

and

CITIBANK, N.A.,

as
Co-Lead Arranger, Sole Bookrunner

and
Co-Syndication Agent,

and

BNP PARIBAS,

as
Co-Lead Arranger and Co-Syndication Agent

and

THE LENDERS PARTY HERETO

Dated as of March 2, 2007

 

 

 

 

FIRST AMENDMENT TO CREDIT
AGREEMENT

FIRST AMENDMENT TO CREDIT
AGREEMENT made as of March 2, 2007 (this “First Amendment”
or “Amendment”), is entered into among NAMI HOLDING COMPANY, LLC, a limited liability company duly
formed and existing under the laws of the Commonwealth of Kentucky (the “Borrower”), the lenders listed on
the signature pages hereto as Lenders (the “Lenders”),
and CITIBANK, N.A., as Administrative Agent
and L/C Issuer.

R  E
C  I  T  A  L  S

A.            The Borrower, the Lenders, the Administrative Agent and
the L/C Issuer are parties to that certain Credit Agreement dated as of January
3, 2007 (the “Original Credit Agreement”).

B.            The parties desire to amend the Original Credit Agreement
as hereinafter provided.

NOW, THEREFORE, in
consideration of these premises and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

1.             Same Terms.  All terms used herein which are defined in
the Original Credit Agreement shall have the same meanings when used herein,
unless the context hereof otherwise requires or provides.  In addition, all references in the Loan
Documents to the “Agreement”  shall
mean the Original Credit Agreement, as amended by this Amendment, as the same
shall hereafter be amended from time to time. 
In addition, the following terms shall have the meanings set forth
below:

“Effective
Date” means March 2, 2007.

“Modification Papers” means this
Amendment, and all of the other documents and agreements executed in connection
with the transactions contemplated by this Amendment.

2.             Conditions Precedent.  The transactions contemplated by this
Amendment shall be deemed to be effective as of the Effective Date, when the
following conditions have been complied with to the satisfaction of the
Administrative Agent, unless waived in writing by the Administrative Agent:

A.            First Amendment to
Credit Agreement.  This
Amendment to Credit Agreement shall be in full force and effect.

B.            Fees and Expenses.  The Administrative Agent shall have received
payment of all out-of-pocket fees and expenses (including reasonable attorneys’
fees and expenses) incurred by The Administrative Agent in connection with the
preparation, negotiation and execution of the Modification Papers.

C.            Representations and Warranties  All representations and warranties contained
herein or in the documents referred to herein or otherwise made in writing in
connection herewith or therewith shall be true and correct with the same force
and effect as though such representations and warranties have been made on and
as of this date.

3.             Amendments to Original Credit Agreement.  On the Effective Date, the Original Credit
Agreement shall be deemed to be amended as follows:

 1
 

(a)           The last sentence of the definition of “Applicable Margin”
contained in Section 1.02 of the Original Credit Agreement shall be
amended to read in its entirety as follows:

“Notwithstanding the
foregoing grid, if an Equity Event has not resulted in the repayment of at
least $80,000,000 of Indebtedness on or before July 1, 2007, then the
Applicable Margin commencing July 1, 2007 and continuing until an Equity
Event has resulted in the repayment of at least $80,000,000 of Indebtedness,
shall be as follows:

	
  Eurodollar Loans

  	
   

  	
  3.00

  	
  %

  
	
  ABR Loans

  	
   

  	
  4.00

  	
  %

  
	
  Commitment Fee
  Rate

  	
   

  	
  0.50

  	
  %

  
	
  Letter of Credit Fee

  	
   

  	
  3.00

  	
  %”

  

 

(b)           Section 1.02 of the Original Credit Agreement shall
be amended by adding the following definitions thereto in appropriate
alphabetical order:

“‘Consolidated
Leverage Ratio’ means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, the ratio of (a) Total
Debt as of such date to (b) EBITDA (i) for the one fiscal quarter period
ending March 31, 2007 times four, (ii) for the two fiscal quarter
period ending June 30, 2007 times two, (iii) for the three consecutive
fiscal quarter period ending September 30, 2007 times 4/3, or
(iv) for each four consecutive fiscal quarter period ending on and after
December 31, 2007.  For purposes of
calculating the Consolidated Leverage Ratio at any date, EBITDA shall be
calculated on a pro forma basis (as certified by the Borrower to the
Administrative Agent and as approved by the Administrative Agent) assuming that
all acquisitions made, and all dispositions completed, during the four
consecutive fiscal quarters then most recently ended have been made on the
first day of such period (but without any adjustment for projected cost savings
or other synergies).”

(c)           Section 9.01(b) of the Original Credit Agreement
shall be amended to read in its entirety as follows:

“(b)         Consolidated Leverage
Ratio.  The Borrower will
not, as of the last day of any fiscal quarter beginning with the fiscal quarter
ending March 31, 2007, permit its Consolidated Leverage Ratio to be greater
than 4.0 to 1.0.”

4.             Certain Representations.  The Borrower represents and warrants that, as
of the Effective Date:  (a) the
Borrower has full power and authority to execute the Modification Papers and
the Modification Papers constitute the legal, valid and binding obligation of
the Borrower enforceable in accordance with their terms, except as
enforceability may be limited by general principles of equity and applicable
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting
the enforcement of creditors’ rights generally; and (b) no authorization,
approval, consent or other action by, notice to, or filing with, any
governmental authority or other person is required for the execution, delivery
and performance by the Borrower thereof. 
In addition, the Borrower represents that all representations and
warranties contained in the Original Credit Agreement are true and correct in
all material respects on and as of the Effective Date (except representations
and warranties that relate to a specific prior date are based upon the state of
facts as they exist as of such date).

5.             No Further Amendments.  Except as previously amended in writing or as
amended hereby, the Original Credit Agreement shall remain unchanged and all
provisions shall remain fully effective between the parties.

 2
 

6.             Limitation on Agreements.  The modifications set forth herein are
limited precisely as written and shall not be deemed (a) to be a consent
under or a waiver of or an amendment to any other term or condition in the
Original Credit Agreement or any of the Loan Documents, or (b) to
prejudice any right or rights which the Administrative Agent or any Lender now
has or may have in the future under or in connection with the Original Credit
Agreement and the Loan Documents, each as amended hereby, or any of the other
documents referred to herein or therein. The Modification Papers shall
constitute Loan Documents for all purposes.

7.             Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when executed and delivered shall be deemed an
original, but all of which constitute one instrument.  In making proof of this Amendment, it shall
not be necessary to produce or account for more than one counterpart thereof
signed by each of the parties hereto.

8.             Incorporation of Certain Provisions by Reference.  The provisions of Section 12.09 of the
Original Credit Agreement captioned “Governing Law; Jurisdiction; Consent to
Service of Process; Waiver of Jury Trial” are incorporated herein by reference
for all purposes.

9.             Entirety, Etc.  This instrument and all of the other Loan
Documents embody the entire agreement between the parties.  THIS AMENDMENT AND ALL OF THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Signatures begin on next page.]

 3

The parties hereto have
caused this Amendment to be duly executed as of the day and year first above
written.

	
  BORROWER:

  	
  NAMI HOLDING COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott W. Smith

  	
   

  
	
   

  	
   

  	
   

  	
  Scott W. Smith

  
	
   

  	
   

  	
   

  	
  President and Chief Executive Officer

  
					

 

 S-1
 

 

	
  ADMINISTRATIVE AGENT:

  	
  CITIBANK, N.A.

  
	
  as Administrative Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Angela McCracken

  	
   

  
	
   

  	
   

  	
   

  	
  Angela McCracken

  
	
   

  	
   

  	
   

  	
  Vice President

  
					

 

 

 S-2
 

 

	
  LENDERS:

  	
  CITIBANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Angela McCracken

  	
   

  
	
   

  	
   

  	
   

  	
  Angela McCracken

  
	
   

  	
   

  	
   

  	
  Vice President

  
					

 

 S-3
 

 

	
  LENDERS:

  	
  BNP PARIBAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian M. Malone

  
	
   

  	
  Name:

  	
  Brian M. Malone

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Betsy Jocher

  
	
   

  	
  Name:

  	
  Betsy Jocher

  
	
   

  	
  Title:

  	
  Director

  
						

 

 S-4

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