Document:

Exhibit 10.7

 

Vanguard Natural
Resources, LLC

Class B Unit Plan

Grant of Restricted
Class B Units

	
  Grantee:

  	
   

  	
   

  
	
  Grant
  Date:

  	
   

  	
  , 200  

  
				

 

1.                                                                                       Grant
of Restricted Units.  Vanguard Natural
Resources, LLC (the “Company”) hereby grants to you         
Restricted Class B Units under the Vanguard Natural Resources, LLC Class B Unit
Plan (the “Plan”) on the terms and conditions set forth herein and in the Plan,
which is incorporated herein by reference as a part of this Agreement. In the
event of any conflict between the terms of this Agreement and the Plan, the
Plan shall control.  And, in no event
shall anything in the Plan or this Agreement control over any provision in the
Amended and Restated Limited Liability Company Agreement of Vanguard Natural
Resources, LLC (the “Company Agreement”). 
Capitalized terms used in this Agreement but not defined herein shall
have the meanings ascribed to such terms in the Plan, unless the context
requires otherwise.

2.                                                                                       Vesting.  Except as otherwise provided in
Paragraph 3 below, the Restricted Class B Units granted hereunder, and any
distributions made by the Company with respect to the Restricted Class B Units,
shall vest on the anniversary of the Grant Date as follows:

 

	
  Anniversary of

  Grant Date

  	
   

  	
  Cumulative

  Vested Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [prior to 1st anniversary

  	
   

  	
  0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  On the 1st anniversary

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  on and after the 2nd anniversary

  	
   

  	
  100

  	
  %]

  

 

Distributions
on a Restricted Class B Unit shall be paid by the Company in accordance with
the Company Agreement.

3.                                                                                       Events
Occurring Prior to Full Vesting.

(a)                                  Death
or Disability. 
If your employment with the Company terminates as a result of your death
or a “disability” as defined in Section 409A(a)(2)(C) of the Code, the
Restricted Class B Units
then held by you automatically will become fully vested upon such termination.

 

(b)                                 Other
Terminations. 
If your employment with the Company terminates for any reason other than
as provided in Paragraph 3(a) above, all unvested Restricted Class B Units
then held by you automatically shall be forfeited without payment upon such
termination.

(c)                                  Change of Control.  All outstanding Restricted Class B Units
held by you automatically shall become fully vested upon a Change of Control.

For purposes of
this Paragraph 3, “employment with the Company” shall include being an Employee
or a Director of, or a Consultant to, the Company or an Affiliate.  However, if your Award is subject to Section
409A of the Code, whether your employment with the Company has terminated will
be determined in accordance with the regulations issued under Section 409A.

4.                                                                                       Unit
Certificates. 
A
certificate evidencing the Restricted Class B Units may be issued in your name,
pursuant to which you shall have all voting rights, if any.  The certificate shall bear the following
legend:

The Units evidenced by this certificate have been issued
pursuant to an agreement made as of              ,
200    , a copy of which is attached hereto and
incorporated herein, between the Company and the registered holder of the
Units, and are subject to forfeiture to the Company under certain circumstances
described in such agreement.  The sale,
assignment, pledge or other transfer of the Units evidenced by this certificate
is prohibited under the terms and conditions of such agreement, and such Units
may not be sold, assigned, pledged or otherwise transferred except as provided
in such agreement.

The
Company may cause the certificate to be delivered upon issuance to the
Secretary of the Company as a depository for safekeeping until the forfeiture
occurs or the restrictions lapse pursuant to the terms of this Agreement.  Upon request of the Company, you shall
deliver to the Company a unit power, endorsed in blank, relating to the Restricted
Class B Units then subject to the restrictions. 
Upon the lapse of the restrictions without forfeiture, the Company shall
cause a certificate or certificates to be issued without legend in your name in
exchange for the certificate evidencing the Restricted Class B Units.

In
lieu of a certificate, your Units may be recorded in book-entry form.

5.                                                                                       Limitations
Upon Transfer. 
All rights under this Agreement shall belong to you alone and may not be
transferred, assigned, pledged, or hypothecated by you in any way (whether by
operation of law or otherwise), other than by will or the laws of descent and
distribution and shall not be subject to execution, attachment, or similar
process.  Upon any attempt by you to transfer,
assign, pledge, hypothecate, or otherwise dispose of such rights contrary to
the provisions in this Agreement or the Plan, or upon the levy of any
attachment or similar process upon such rights, such rights shall immediately
become null and void.

 2
 

 

6.                                                                                       Restrictions. By accepting this grant, you
agree that any Restricted Class B Units that you may acquire upon vesting of
this award will not be sold or otherwise disposed of in any manner that would
constitute a violation of any applicable federal or state securities laws.  You also agree that (i) any certificates
representing the Units acquired under this award may bear such legend or
legends as the Committee deems appropriate in order to assure compliance with
applicable securities laws, (ii) the Company may refuse to register the transfer
of the Units acquired under this award on the transfer records of the Company
if such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities law, and (iii) the
Company may give related instructions to its transfer agent, if any, to stop
registration of the transfer of the Restricted Class B Units to be acquired
under this award.

7.                                                                                       Withholding
of Taxes. 
To  the  extent that the grant or vesting of a
Restricted Class B Unit
or distribution thereon results in the receipt of compensation by you with
respect to which the Company or an Affiliate has a tax withholding obligation
pursuant to applicable law, unless other arrangements have been made by you
that are acceptable to the Company or such Affiliate, you shall deliver to the
Company or the Affiliate such amount of money as the Company or the Affiliate
may require to meet its withholding obligations under such applicable law.  No issuance of unrestricted Class B Units
shall be made pursuant to this Agreement until you have paid or made
arrangements approved by the Company or the Affiliate to satisfy in full the
applicable tax withholding requirements of the Company or Affiliate with
respect to such event.

8.                                                                                       Conversion of Class B Units into Common Units.  Subject to the provisions of the Company
Agreement, the Class B Units may be converted into Common Units of the Company
on a one-for-one basis as follows:  (i)
up to one-half of your Class B Units on or after the first anniversary of the
closing of the Initial Public Offering of Common Units of the Company (“IPO”),
(ii) all or any portion of your Class B Units on or after the second
anniversary of the IPO, and (iii) all or any portion of your Class B Units on
or after they become vested due to your death, disability (as defined herein)
or a Change of Control.

9.                                                                                       Binding
Effect.  This Agreement
shall be binding upon and inure to the benefit of any successor or successors
of the Company and upon any person lawfully claiming under you.

10.                                                                                 Entire Agreement. 
This Agreement constitutes the entire agreement of the parties with
regard to the subject matter hereof, and contains all the covenants, promises,
representations, warranties and agreements between the parties with respect to
the Restricted Units granted hereby. 
Without limiting the scope of the preceding sentence, all prior
understandings and agreements, if any, among the parties hereto relating to the
subject matter hereof are hereby null and void and of no further force and
effect.

11.                                                                                 Modifications.  Except as provided below, any modification of
this Agreement shall be effective only if it is in writing and signed by both
you and an authorized officer of the Company.

 3
 

 

12.                                                                                 Governing
Law.  This grant shall be governed by, and construed in accordance with, the
laws of the State of Delaware, without regard to conflicts of laws principles
thereof.

	
  

  	
  VANGUARD NATURAL RESOURCES, LLC

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 4Exhibit 10.8

MANAGEMENT
SERVICES AGREEMENT

This MANAGEMENT SERVICES
AGREEMENT (this “Agreement”) is effective as of January 5, 2007, by and between
VINLAND ENERGY OPERATIONS, LLC, a Delaware limited liability company (“Manager”)
and VANGUARD NATURAL GAS, LLC, a Kentucky limited liability company, and its
subsidiaries, ARIANA ENERGY, LLC and TRUST ENERGY COMPANY, LLC (collectively
the “Company”).

RECITAL:

WHEREAS, Manager has
agreed to provide certain management and general and administrative support
services to Company for its Properties, and the Company has agreed to pay to
Manager the compensation provided for in this Agreement as set forth herein.

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein, the
premises set forth in the recital above, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties hereto do hereby agree as follows:

Definitions.  The following terms shall have the following
meaning when used in this Agreement:

“Acquisition”
means any acquisition or series of acquisitions by the Company or any of its
subsidiaries of (i) all or substantially all of the interest in any company or
business (whether by purchase of assets, purchase of stock, merger or
otherwise); or (ii) any natural gas or oil properties or interests, including
any related assets, acquired after the date of this Agreement.

“Acquisition Information” means any and all
information provided by or on behalf of Manager to the Company in the
performance of the Acquisition Services relating to any potential Acquisitions.

“Acquisition Services” has
the meaning given to such term in Section 2.

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

“Area of Mutual Interest” or “AMI”
means the AMIs established hereunder for Kentucky and Tennessee between the
Parties hereto which are outlined on the plats attached hereto as Exhibits A-1, A-2, A-3, A-4 and A-5.

“Audit Rights”
has the meaning given to such term in Section 6.

“Company Claim”
shall have the meaning given to such term in Section 8(b).

“Company Indemnitees”
has the meaning given to such term in Section 8(a).

“Confidential
Information” means all information (i) furnished to Manager or its
representatives by or on behalf of the Company or (ii) prepared by or at the
direction of Manager in the provision of the Services and (iii) all analyses,
compilations, data, studies, notes, interpretations, memoranda or other
documents prepared by Manager or its representatives containing or based in
whole or in part on any such furnished information.

“Credit
Agreement” means that certain Credit Agreement dated January 3, 2007
by and between Citibank N.A. and BNP Paribas, as Lenders and the Company, as
Borrower.

“Lease Level
Payables” means the following costs and expenses: (a) all severance
and ad valorem taxes relating to Company’s interests in the Properties or in
the production therefrom, (b) all reasonable costs of maintaining the Company’s
leasehold interests in connection with the Properties and costs incurred by
Manager to comply with the terms of any laws, rules, or regulations or the
terms of any oil, gas or other mineral leases and other contracts and
agreements forming a part of or pertaining to the Properties, and (c) all delay
rentals payable with respect to the Properties. 
The Lease Level Payables shall be the actual amounts due or expended and
shall not include any compensation to Manager.

“Liabilities”
has the meaning given to such term in Section 8(a).

“Management Fee”
shall have the meaning given to such term in Section 4.

“Manager Expenses”
has the meaning given to such term in Section 5.

“Manager Indemnitees”
has the meaning given to such term in Section 8(b).

“Operating
Agreement” means any operating agreement pertaining to the
Properties to which the Company and Manager are both Parties.

“Participation Agreement”
means that certain Participation Agreement of even date herewith, attached
hereto as Exhibit B.

 “Party” or “Parties” means each, one or more, or all of the Company or
the Manager, as the context requires.

“Permitted
Contracts” means all agreements and contracts with Third Parties for
a duration of one year or less that have a financial commitment of $500,000 or
less.  Agreements with a duration of more
than one year or have a financial commitment in excess of $500,000 shall
require the written consent of the Company, except those in existence at the
date of this Agreement.

“Person” means
an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization or other enterprise (including an
employee benefit plan), association, government agency or political subdivision
thereof or other entity.

“Proceedings”
means all proceedings, actions, claims, suits and notices of investigations by
or before any arbitrator or governmental authority.

 2
 

“Properties” means all of the oil and gas wells located
within the AMI in which the Company owns or holds any interest, whether now
existing or hereinafter acquired, including oil and gas leases, mineral
interests, royalty interests, overriding royalty interests, well lines,
separators, meters, downhole and well surface equipment, fixtures, easements,
licenses, permits and other surface rights, and other real or personal property
appurtenant thereto or used in conjunction therewith.

“SEC” means the U.S. Securities and Exchange Commission.

“Services”
has the meaning given to such term in Section 1.

“Third Party” means any Person other than the Company,
Manager or any of their respective affiliates, or any respective member of the
Company, or Manager.

“Well
Services Agreements” means those certain Well Services Agreements
(for Kentucky and Tennessee Operations, respectively) dated of even date
herewith by and between the Manager and the Company, of even date herewith,
attached hereto as Exhibit C.

Section 1.              Management
Services.

(a)  Included
Services.  During the term hereof,
Manager shall, with respect to the ordinary course of business concerning the
Company’s Properties: (i) advise and consult with Company regarding the Company’s
production and development operations, (ii) provide management and consulting
services in support of the development and implementation of operational and
financial plans of the Company and (iii) provide administrative support
services to the Company as may be necessary for the operations of the Company
(collectively, the “Services”),
including the following specific Services:

(i)            Overhead Services.  Manager will provide ordinary and customary
general and administrative overhead services associated with the administration
of the Properties; provided, however, the Services provided by Manager under
this Agreement shall not include arrangements or payment for insurance covering
the Company’s interest in the Properties, bonding for drilling or other
activity on the Properties.

(ii)           Reports and Information.  Manager will provide the Company the reports
and other information pertaining to the Properties, if any, required to be
furnished pursuant to the Credit Agreement by and between the Company and its
lenders, as well as the timely delivery of all information attributable to the
Company’s oil and gas production derived from the Company’s interest in the
Properties as required by the Company’s third party engineering consultants.

(iii)          Oil and Gas Sales.  Company will be solely responsible for
selling its own oil and gas as well as the arranging for and bearing the costs
of the transportation thereof, and for receiving the proceeds of such
sales.  Notwithstanding the foregoing,
Manager shall assist in the coordination of these sales as requested by the
Company from time to time under any transportation agreements held by the
Company.

 3
 

(iv)          Lease and Land Administration.  With respect to the Properties, Manager will,
with its own staff, provide ordinary and customary lease and land
administration services, including administering all oil and gas leases and
division orders, and maintaining all land, lease and other related records,
providing associated services, and paying rentals, shut-in payments and other
lease payments.

(v)           Accounting.  Manager will, with its own staff (except as
expressly provided below), perform ordinary and customary accounting functions
attributable to the Company’s interest in the Properties, including but not
limited to:

(i)            royalty
and other lease payments;

(ii)           payment
of accounts payable;

(iii)          collection,
on a non-recourse basis, of accounts receivable;

(iv)                              computation and payment
of severance and other taxes based on production together with real property
and ad valorem taxes relating to the Company’s interest in the Properties;

(v)           gas
balancing (using a third party provider);

(vi)          assistance in
preparations of property tax returns; and

(vii)         payroll for any
Company employees.

(vi)          Information Systems.  Manager will provide computer use and/or
facilities reasonably necessary to manage and operate the Properties and
maintain the Company’s well and property records for the Properties.

(vii)         Sales of Properties by Company.  If requested by the Company, the Manager will
cooperate with Company to facilitate any sale of the Company’s interest in the
Properties.  In such event, the Manager
and its affiliates shall retain the role of operator and gatherer for any
successor to the Company.

(viii)        Tax Returns.  Manager will provide information pertaining
to the Properties in order to assist the Company, or its designee, in providing
necessary information for the Company’s preparation of all federal, state and
local tax returns required of the Company, including any K-1 reporting which
may be required during the term of this Agreement.

(ix)           SEC Requirements.  Manager
will assist the Company in providing such information pertaining to the Properties
as may be reasonably requested by the Company in complying with SEC reporting
and other requirements.

(x)            Compliance.  Manager will take all actions, and file all
reports and notices reasonably necessary to cause the Company’s interest in the
Properties to be in compliance with all applicable laws, rules and regulations.

 4
 

(xi)           Outsourcing.  Where noted that Manager shall use its own
staff on the performance of the specific Services, Manager shall not be
permitted, without the prior written consent of the Company, to use third
parties to provide such Services to the Company.

(b)
Extraordinary Services.  Any
extraordinary management and administrative services pertaining to the
Properties not within the scope of the Services as described above shall be the
responsibility and expense of the Company. 
General overhead and expenses of the Company, including but not limited
to office rent, salaries, employee benefits and expenses pertaining to the
Company’s executive and general operations as well as any expenses unrelated to
the Properties shall be the responsibility and expense of the Company.

Section 2.              Acquisition
Services.  The
Company may request that Manager provide additional services in support of an
Acquisition (“Acquisition Services”), and upon agreement to do so, Manager
shall make reasonable efforts to provide the Acquisition Services in the manner
so requested and at the direction of the Company.  The Company and the Manager will negotiate
compensation for the Manager for said Acquisition Services on a case-by-case
basis.  In addition, the Company shall
reimburse Manager for all out of pocket expenses incurred in connection with
any contracted Acquisition Services to the extent related to an Acquisition.

Section
3.              Performance and
Authority.

(a)           Standard of Care.  Manager shall provide the Services in a
timely and current manner, consistent with the ordinary and customary standards
for management and administrative practices prevailing in the oil and gas
industry for such Services.

(b)           Independent Contractor
Relationship.  With respect to its
performance of the Services, Manager is an independent contractor, with the
authority to control, oversee and direct the performance of the details of the
Services.

(c)           No Joint Venture or Partnership.  This Agreement is not intended to and shall
not be construed as creating a joint venture, partnership, agency or other
association within the meaning of the common law or under the laws of any
state.

(d)           Procurement of Goods and Services. 
Without the prior written consent of the Company, Manager will not enter
in to any non Permitted Contracts.  To
the extent that Manager arranges for Permitted Contracts with Third Parties for
goods and services in connection with its obligations herein, Manager shall use
commercially reasonable efforts (i) to obtain such goods and services at rates
competitive with those generally available in the area in which services or
materials are to be furnished, and (ii) to obtain from such Third Parties such
customary warranties and guarantees as may be reasonably required with respect
to the goods and services so furnished. All goods and services obtained for the
Properties by the Manager from Third Parties shall be paid for by the Company
in the manner provided for under this Agreement.

(e)           Protection from Liens.  Manager shall not permit any liens,
encumbrances or charges upon any of the Properties arising from the provision
of the Services or materials under this

 5
 

Agreement, unless
caused due to non-payment of the reimbursable Manager Expenses by the Company.

(f)            Commingling of Assets.  To the extent Manager shall have charge or
possession of any of the Company’s assets in connection with providing the
Services, Manager shall separately maintain, and not commingle, the assets of
the Company with those of Manager or any other Person.

(g)           Insurance.  Each Party shall obtain and maintain during
the term of this Agreement, from insurers who are reliable and acceptable to
the other Party and authorized to do business in the state or states in which
Services are to be provided by Manager, insurance coverage in the types and
minimum limits as consistent with standard industry practice.  Each Party agrees upon the other Party’s
request from time to time or at any time to provide the other Party with
certificates of insurance evidencing such insurance coverage, and upon request
of the other Party, shall provide copies of such policies.  Except with respect to worker’s compensation
coverage, the policies shall name the other Party as an additional insured and
shall contain waivers by the insurers of any and all rights of subrogation to
pursue any claims or causes of action against the other Party.  The policies shall provide that they will not
be cancelled or reduced without giving the other Party at least thirty (30)
days prior written notice of such cancellation or reduction, except for at
least ten (10) days prior

(h)           Third Party Intellectual Property.  If Manager uses or licenses intellectual
property owned by Third Parties in providing the Services, Manager shall obtain
and maintain any such licenses and authorizations necessary to authorize its
use of such intellectual property in connection with the Services.

Section 4.              Compensation.  For the Services provided hereunder by
Manager to Company, the Company shall pay to Manager $60.00 per well per month
for (i) each producing oil and gas well within the AMIs in which the Company
owns or holds an interest that is listed on the December 31, 2006 report of
Netherland, Sewell and Associates, Inc., plus (ii) $60.00 per producing well
per month for all subsequent oil and gas wells drilled or acquired by the
Company within the AMI (or fraction thereof proportionate to the Company’s
respective working interest) (the “Management Fee”).

Beginning on 
January 1, 2011, the producing well rates stipulated in this Section 4
shall be increased by eleven percent (11%) and shall be adjusted annually
thereafter upon the wage index adjustment published by COPAS.

In addition, Company agrees to reimburse Manager for
any Lease Level Payables that may be paid with funds of Manager rather than
funds of Company.  If, due to the
occurrence of an unusual circumstance, Manager determines that it has incurred
extraordinary expenses in order to provide any of the Services, Manager may
request that the Company pay additional reasonable compensation for such
Services, and Company may determine to agree to any such request (in whole or
in part) in their sole and absolute discretion, respectively; however, the
Company shall not have any obligation to consent to the payment of such
additional compensation and nothing contained in this sentence shall be
construed to affect or otherwise alter the obligation of Manager to provide the
Services described herein.

 6
 

Section 5.              Manager
Reimbursements. 
The following provisions will govern the reimbursement of costs and
expenses incurred by the Manager in providing the Services:

(a)           Manager Expenses.  On or before the 30th day following each month during the term of
this Agreement, Manager shall provide the Company with an invoice for the
aggregate Manager Expenses, including all Lease Level Payables, relating to the
previous calendar month.  Manager’s
invoice shall provide reasonably detailed documentation supporting the Manager
Expenses.  Any such invoices will detail
the Services provided by the Manager hereunder during the subject calendar
month, all reasonable costs associated with providing such Services, as well as
any reasonable costs of Services or goods purchased from Third Parties in performance
of their Services (the “Manager Expenses”). 
If Manager has not received payment from the Company of the monthly
invoice for the Manager Expenses within 15 days following the receipt of the
invoice by the Company, any unpaid 
amounts shall bear interest at a rate equal to the prime rate designated
as such from time to time by Citibank, NA, plus 5%, on the unpaid balance.  The Company shall pay the Manager Expenses in
the manner provided in Section 5(b).

(b)           Manner of Payment.  All payments required under this Section 5
shall be made by wire of immediately available funds or check as follows:

If
by Wire: Account information to be provided by Manager.

If
by Check:  Payee information to be
provided by Manager.

(c)           Taxes.  The Company shall be responsible for all
applicable taxes (other than federal or state income taxes imposed on Manager)
levied on items, goods or services that are sold, purchased or obtained
pursuant to this Agreement.

(d)           Disputed Charges.  The Company may, within thirty (30) days
after receipt of a charge from Manager, take written exception to such charge
on the ground that such charge was not in accordance with the terms of this
Agreement.  In such event, the Company
shall nonetheless pay such amount to Manager as to which such written exception
is taken, or any part thereof, and if such charge is ultimately determined not
to be in accordance with the terms of this Agreement, such amount or portion
thereof (as the case may be) shall be repaid by the Manager together with any
interest thereon at a rate equal to the prime rate per annum established by
Citibank, N.A. as in effect on the date of this Agreement.  It is expressly understood that the Parties
will use their best efforts to resolve any and all disputed charges between the
Company and the Operator within twelve (12) months after the initial written
exception to the charge has been made.

(e)           No Duplication of Charges.  Notwithstanding anything herein to the
contrary, there shall be no duplication of charges or expenses under this Agreement
that are charged under the Well Services Agreements, the Participation
Agreement or the Operating Agreements.

Section 6.              Audit
Rights.  Not more
than two times in a calendar year during the term of the Agreement and for one
(1) year thereafter, the Company shall have the right to review and, at the
Company’s expense, to copy the books and records maintained by the Manager
relating to the Services.  In addition,
to the extent necessary to verify the performance by Manager of its obligations

 7
 

under this
Agreement, the Company shall have the rights, at the Company’s expense, to
audit, examine and make copies of or extracts from the books and records of
Manager (the “Audit Right”).  The Company
may exercise the Audit Right through such auditors as the Company may determine
in its sole discretion.  The Company
shall (i) exercise the Audit Right only by reasonable notice to Manager and
during normal business hours and (ii) use its reasonable efforts to conduct the
Audit Right in such a manner as to minimize the inconvenience and disruption to
Manager.

Section 7.              Confidential
Information.

(a)           Non disclosure of Confidential
Information.  Manager shall maintain
the confidentiality of all Confidential Information, provided  however,
that Manager may disclose such Confidential Information (i) in any judicial or
alternative dispute resolution Proceeding to resolve disputes between the
Parties hereto arising under this Agreement; (ii) to the extent disclosure is
legally required under applicable laws (including applicable securities and tax
laws) or any agreement existing as of the effective date hereof to which the
disclosing Party is obligated or by which it is bound; provided  however,
that prior to making any legally required disclosures in any judicial,
regulatory or dispute resolution Proceeding, the Manager shall, if requested by
the Company, seek a protective order or other relief to prevent or reduce the
scope of such disclosure, (iii) to the Manager’s existing or potential lenders
or potential lenders, investors, joint interest owners, purchasers or other
Third Parties with whom the Manager may enter contractual relationships, to the
extent deemed by the Manager to be reasonably necessary or desirable to enable
it to perform the Services; provided  however that each Party
shall require such Third Parties to agree to maintain the confidentiality of
the Confidential Information so disclosed, (iv) if authorized by the Company,
and (v) to the extent such Confidential Information becomes publicly available
other than through a breach by Manager of its obligation arising under this
Section 7(a).  Manager acknowledges and
agrees that the Confidential Information is being furnished to it for the sole
and exclusive purpose of the performance of this Agreement, and the Confidential
Information may not be used by it for any other purpose.

(b)           Remedies and Enforcement.  The Parties acknowledge and agree that a
breach of the obligations under this Section 7 would cause irreparable harm and
that monetary damages would not be adequate compensation.  Accordingly, each Party agrees that the
non-breaching Party shall be entitled to immediate relief equitable relief,
including a temporary or permanent injunction, to prevent any threatened, likely
or ongoing violation of this Section 7, without the necessity of posting bond
or other security.  Each Party’s right to
equitable relief shall be in addition to other rights and remedies available to
such Party, for monetary damages or otherwise.

Section
8.              Indemnification; Limitations.

(a)           Indemnification by Manager.  Manager hereby agrees to DEFEND, INDEMNIFY
AND HOLD HARMLESS the Company and its officers, managers, members, partners,
directors, employees, agents and affiliates (collectively the “Company
Indemnitees”) from any and all threatened or actual claims, demands, causes of
action, suits, proceedings, losses damages, fines, penalties, liabilities,
costs and expenses of any nature, including attorney’s fees and court costs
(collectively “Liabilities”), sustained by, or incurred by, arising in favor of
or asserted by any Third

 8
 

Parties, employees, agents and
representatives of Manager, or any contractors or subcontractors of Manager, in
any way relating to the performance of the Services hereunder (including any
claims for personal injury, property loss or damage, bodily injury, illness or
death), excluding, in all cases, Company Claims, as defined below.

(b)           Indemnification by Company.  Company hereby agrees to DEFEND, INDEMNIFY
AND HOLD HARMLESS the Manager and its officers, managers, members, partners,
directors, employees, agents and affiliates (collectively the “Manager
Indemnitees”) from any and all threatened or actual Liabilities sustained by,
or incurred by, arising in favor of or asserted by any Third Parties,
employees, agents and representatives of the Company, or any contractors or
subcontractors of Company, in any way relating to the Properties hereunder
(including any claims for personal injury, property loss or damage, bodily
injury, illness or death but excluding Liabilities arising from Manager’s gross
negligence, willful misconduct or breach of law or this Agreement), each of the
foregoing being a “Company Claim.”

(c)           Negligence; Strict Liability.  EXCEPT AS EXPRESSLY PROVIDED IN SECTION 8(a)
AND SECTION 8 (b) THE DEFENSE AND INDEMNITY OBLIGATIONS IN SECTION 8 (a) AND
SECTION 8 (b) SHALL APPLY REGARDLESS OF CAUSE OR OF ANY NEGLIGENT ACTS OR
OMISSIONS (INCLUDING SOLE NEGLIGENCE, CONCURRENT NEGLIGENCE OR STRICT
LIABILITY), BREACH OF DUTY (STATUTORY OR OTHERWISE), VIOLATION OF LAW OR OTHER
FAULT OF ANY INDEMNIFIED PARTY(S), OR ANY PRE-EXISTING DEFECT; PROVIDED ,
HOWEVER THAT THIS PROVISION SHALL IN NO WAY LIMIT OR ALTER ANY QUALIFICATIONS
SET FORTH IN SUCH DEFENSE AND INDEMNITY OBLIGATIONS EXPRESSLY RELATING TO GROSS
NEGLIGENCE, INTENTIONAL MISCONDUCT OR BREACH OF THIS AGREEMENT. BOTH PARTIES
AGREE THAT THIS STATEMENT COMPLIES WITH THE REQUIREMENT KNOWN AS THE “EXPRESS
NEGLIGENCE RULE” TO EXPRESSLY STATE IN A CONSPICUOUS MANNER AND TO AFFORD FAIR
AND ADEQUATE NOTICE THAT THIS SECTION 8(c) HAS PROVISIONS REQUIRING ONE PARTY
TO BE RESPONSIBLE FOR THE NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OF
ANOTHER PARTY.

(d)           Exclusion of Damages; Disclaimers.  NO PARTY SHALL BE LIABLE TO ANY OTHER PARTY
HERETO FOR EXEMPLARY, PUNITIVE, CONSEQUENTIAL, SPECIAL, INDIRECT OR INCIDENTAL
DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF
THE FORM IN WHICH ANY ACTION IS BROUGHT; PROVIDED, HOWEVER, THAT NOTHING IN
THIS AGREEMENT SHALL DIMINISH OR
OTHERWISE AFFECT THE PARTIES’ RIGHTS AND OBLIGATIONS TO BE INDEMNIFIED AGAINST,
AND PROVIDE INDEMNITY FOR, EXEMPLARY, PUNITIVE, CONSEQUENTIAL, SPECIAL,
INDIRECT OR INCIDENTAL DAMAGES AWARDED TO ANY THIRD PARTY IN CONNECTION WITH
ANY LIABILITY FOR WHICH INDEMNIFICATION IS PROVIDED IN THIS AGREEMENT.  MANAGER DISCLAIMS ANY AND ALL
WARRANTIES, CONDITIONS OR REPRESENTATIONS (EXPRESS OR IMPLIED, ORAL OR WRITTEN)
WITH RESPECT TO SERVICES RENDERED OR PRODUCTS PROCURED FOR THE COMPANY, OR ANY
PART THEREOF, INCLUDING ANY AND ALL WARRANTIES OF NON-INFRINGEMENT,
MERCHANTABILITY OR FITNESS OR SUITABILITY FOR ANY PURPOSE (WHETHER MANAGER
KNOWS, HAS REASON TO KNOW, HAS BEEN

 9
 

ADVISED, OR IS OTHERWISE
IN FACT AWARE OF ANY SUCH PURPOSE) WHETHER ALLEGED TO ARISE BY LAW, BY REASON
OF CUSTOM OR USAGE IN THE TRADE OR BY COURSE OF DEALING. HOWEVER, IN THE CASE
OF OUTSOURCED SERVICES PROVIDED SOLELY FOR THE COMPANY, IF THE THIRD PARTY
PROVIDER OF SUCH SERVICES MAKES AN EXPRESS WARRANTY TO THE COMPANY, THE COMPANY
IS ENTITLED TO CAUSE MANAGER TO RELY ON AND TO ENFORCE SUCH WARRANTY.  NOTHING IN THIS SECTION 8 SHALL LIMIT THE
STANDARD OF CARE REQUIRED OF MANAGER HEREUNDER PURSUANT TO SECTION 3.

(e)           THE PROVISIONS OF THIS SECTION 8
SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT.

Section 9.                Representations and
Warranties of Manager. 
Manager represents and warrants to Company that:

(a)           Organization
and Good Standing.  Manager is duly
organized, validly existing and in good standing under the Laws of its
jurisdiction of organization, having all powers required to carry on its
business and enter into and carry out the transactions contemplated
hereby.  Manager is duly qualified, in
good standing, and authorized to do business in all other jurisdictions within
the United States wherein the character of the properties owned or held by it
or the nature of the business transacted by it makes such qualification
necessary.

(b)           Authorization.  Manager has duly taken all action necessary
to authorize the execution and delivery by it of this Agreement and to
authorize the consummation of the transactions contemplated hereby and the
performance of its obligations hereunder.

(c)           No Conflicts or Consents.  The execution and delivery by Manager of this
Agreement and the related contracts, the performance by Manager of its
obligations hereunder and thereunder, and the consummation of the transactions
contemplated hereby and thereby, do not and will not (i) conflict with any
provision of (1) any law, (2) the organizational documents of Manager, or (3)
any judgment, license, order, permit or material agreement applicable to or
binding upon Manager, (ii) result in the acceleration of any indebtedness owed
by Manager, or (iii) result in or require the creation of any lien upon any
assets or properties of Manager.  No
permit, consent, approval, authorization or order of, and no notice to or
filing with, any governmental authority or third party is required in
connection with the execution, delivery or performance by Manager of this
Agreement and the related contracts or to consummate any transactions
contemplated hereby or thereby.

(d)           Enforceable Obligations.  This Agreement is the legal, valid and
binding obligation of Manager, enforceable in accordance with the terms thereof
except as such enforcement may be limited by bankruptcy, insolvency or similar
laws of general application relating to the enforcement of creditors’ rights.

Section 10.              Representations and
Warranties of Company. 
Company represents and warrants to Manager that:

 10
 

(a)           Organization and Good Standing.  Company is duly organized, validly existing
and in good standing under the Laws of its jurisdiction of organization, having
all powers required to carry on its business and enter into and carry out the
transactions contemplated hereby.  Company
is duly qualified, in good standing, and authorized to do business in all other
jurisdictions within the United States wherein the character of the properties
owned or held by it or the nature of the business transacted by it makes such
qualification necessary.

(b)           Authorization.  Company has duly taken all action necessary
to authorize the execution and delivery by it of this Agreement and to
authorize the consummation of the transactions contemplated hereby and the
performance of its obligations hereunder.

(c)           No Conflicts or Consents.  The execution and delivery by Company of this
Agreement, the performance by Company of its obligations hereunder and
thereunder, and the consummation of the transactions contemplated hereby and
thereby, do not and will not (i) conflict with any provision of (1) any law,
(2) the organizational documents of Company, or (3) any judgment, license,
order, permit or material agreement applicable to or binding upon Company, (ii)
result in the acceleration of any indebtedness owed by Company, or (iii) result
in or require the creation of any lien upon any assets or properties of
Company.  No permit, consent, approval,
authorization or order of, and no notice to or filing with, any governmental
authority or third party is required in connection with the execution, delivery
or performance by Company of this Agreement and the related contracts or to
consummate any transactions contemplated hereby or thereby.

(d)           Enforceable Obligations.  This Agreement is the legal, valid and
binding obligation of Company, enforceable in accordance with the terms thereof
except as such enforcement may be limited by bankruptcy, insolvency or similar
laws of general application relating to the enforcement of creditors’ rights.

Section 11.              Covenants.

(a)           Funds in Trust.  To the extent ever received by Manager, it
will handle, account for, and immediately pay over to the Company all proceeds
of oil and/or gas production from the Properties, all other proceeds of the
Properties, and all other funds in any way accruing to the Properties or otherwise
belonging to Company or its affiliates or subsidiaries.

(b)           Maintenance of Existence and
Qualifications.  Manager will
maintain and preserve its existence and its rights and franchises in full force
and effect and will qualify to do business in all states or jurisdictions where
required by applicable law.

Section 12.            Term.  The respective rights, duties, and
obligations of the Parties hereunder shall commence on the effective date
hereof and shall continue for an initial term of five (5) years, unless sooner
terminated as provided herein, and after the end of the initial term this
Agreement will automatically extend for additional one-year terms until
terminated by either Party by giving written notice of termination to the other
Parties at least twelve (12) months prior to the date as of which such
termination is to be effective.  In the
event such notice of termination is given, Manager shall provide Company with
copies of all databases, accounting records and related information pertaining
to the Properties at least six (6) months prior to the effective date of the
termination.  In the event the

 11
 

Gathering and
Compression Agreement, of even date, between the Company and the Manager’s
affiliate, Vinland Energy Gathering, LLC (“VEG”), is terminated for any reason
by the Company (other than for breach or default by VEG of its obligations
thereunder or the fraud or willful misconduct by VEG), the Manager shall have
the right, at its sole option, to terminate this Agreement upon six (6) months’
notice prior to the effective date of such termination as provided herein.

Section 13.            Default and Remedies.

(a)           The
following shall be Events of Default under the terms of this Agreement and the
terms “Events of Default” or “Default” shall mean, whenever they are used in
this Agreement, any one or more of the following events:

(i)            If Company shall fail to pay or
cause to be paid any sums due to the Manager within five (5) business days
after Manager has given Company written notice thereof;

(ii)           If either Party shall file a voluntary petition for bankruptcy or
shall be adjudicated bankrupt or insolvent, or shall file any petition or any
answer seeking or acquiescing in any reorganization, arrangement, composition,
adjustment, liquidation, dissolution, or similar relief for itself under any
then current federal, state or other statute, law, or regulation, or shall
seek, consent to, or acquiesce in the appointment of any trustee, receiver, or
liquidator of such Party, or shall make any general assignment for the benefit of
creditors, or shall admit in writing its inability to pay its debts generally
as they become due;

(iii)          If either Party shall materially fail
to perform or observe any covenant, provision, term, restriction, or condition
required to be performed or observed by such party under the terms of this
Agreement (other than the obligation to pay money referenced in Section 13 (a)
(i) above) which continues for more than ninety (90) days after such Party has
received written notice thereof; provided  however, that if such
failure cannot be cured within such ninety-day period, no default shall occur
if the relevant Party has begun good faith efforts to cure the failure within
such ninety days.  In the event of a
dispute between the Parties whether a material failure to perform has occurred,
no termination of this Agreement shall occur until the defaulting Party has the
opportunity to cure provided by this section, after the existence of such
failure has been determined in accordance with this Agreement.

(b)           If any of the Events of Default
enumerated in this Section 13 occurs, then in such event and as often as the
same occurs, the non-defaulting Party may, at its option terminate this
Agreement by providing ninety (90) days prior written notice to the other
Party.

(c)           Exercise of the foregoing remedies
shall not preclude the Parties from exercising every other remedy provided
herein or at law, it being the intention of the Parties that Parties’ remedies
shall be cumulative and shall survive termination of this Agreement.

Section 14.              Notices.  Any notice which may be given hereunder shall
be ineffective unless in writing and either delivered by registered or
certified mail with return receipt requested to

 12
 

the addresses set out below or delivered by hand with written acknowledgment
of receipt.  The addresses for notice are
as follows:

	
  For Manager:

  	
   

  	
  Vinland Energy Operations, LLC

  
	
   

  	
   

  	
  104 Nami Plaza,
  Suite 1

  
	
   

  	
   

  	
  London, Kentucky
  40741

  
	
   

  	
   

  	
  Attention:
  Thomas H. Blake, President

  
	
   

  	
   

  	
   

  
	
  For Company:

  	
   

  	
  Vanguard Natural Gas, LLC

  
	
   

  	
   

  	
  7700 San Felipe,
  Suite 485

  
	
   

  	
   

  	
  Houston, Texas
  77063

  
	
   

  	
   

  	
  Attention: Scott
  W. Smith, President

  

 

Any such address may be
changed at any time by written notice in accordance herewith.  Each notice hereunder shall be deemed to have
been given when delivered in person or by courier service and signed for
against receipt thereof, or three business days after depositing it in the
United States mail with postage prepaid and properly addressed.

Section 15.              Assigns.  The rights and obligations of the Manager may
not be assigned to a third party without the written consent of the Company.

Section
16.            Construction.  As used in this Agreement: the word “or” is
not exclusive; the word “including” (in its various forms) means “including
without limitation”; pronouns in masculine, feminine and neuter genders shall
be construed to include any other gender; and words in the singular form shall
be construed to include the plural and vice versa, unless the context otherwise
requires.  References herein to any
Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a
Schedule or an Exhibit hereof unless otherwise specifically provided.  This Agreement is the result of negotiations
between, and has been reviewed by, Manager, Company and their respective
counsel.  Accordingly, this Agreement
shall be deemed to be the joint product of the Parties hereto, and no ambiguity
shall be construed in favor of or against any Party hereto or beneficiary
hereof.

Section 17.              Amendment.  No amendment of any provision of this
Agreement shall be effective unless it is in writing and signed by all Parties
hereto, and no waiver of any provision of this Agreement, and no consent to any
departure by any Party hereto therefrom, shall be effective unless it is in writing
and signed by the Parties hereto, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

Section 18.              Unenforceability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or invalidity without
invalidating the remaining portions hereof or thereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

Section 19.              Governing Law; Submission to Process.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF KENTUCKY, WITHOUT
REGARD TO PRINCIPLES OF

 13
 

CONFLICTS
OF LAW.  EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY SUBMITS ITSELF TO THE NON-EXCLUSIVE JURISDICTION OF THE
STATE AND FEDERAL COURTS SITTING IN THE STATE OF KENTUCKY AND THE COUNTY OF
LAUREL AND AGREES AND CONSENTS THAT SERVICE OF PROCESS MAY BE MADE UPON IT IN
ANY LEGAL PROCEEDING RELATING HERETO BY ANY MEANS ALLOWED UNDER KENTUCKY OR
FEDERAL LAW.  EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY
SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

Section 20.              Waiver of Jury Trial,
Punitive Damages, Etc.  EACH
OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, AND
IRREVOCABLY (A) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
DIRECTLY OR INDIRECTLY AT ANY TIME ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR ASSOCIATED HEREWITH,
BEFORE OR AFTER MATURITY; (B) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY
LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY
PUNITIVE DAMAGES, (C) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR
AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVERS, AND (D) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION
20.

Section 21.            Arbitration.   Notwithstanding any other provision of this Agreement
to the contrary, if any controversy, claim or dispute arising out of or
relating to this Agreement or the breach or performance thereof occurs, the
Parties shall meet and exert reasonable efforts to reach an amicable settlement
for a period not to exceed twenty (20) days from the date written notice of the
controversy, claim or dispute is served by the complaining Party to the other
Party under this Agreement.  .  If for any reason such settlement fails to
occur within such twenty-day period (or such other period as the Parties may
agree in writing), the Parties will then enlist the services of a mutually
agreed upon industry representative to facilitate negotiations for an
additional twenty (20) day period in an attempt to resolve the controversy.  If a favorable resolution is not attained
within the additional twenty (20) day period, (or such other period as the parties may agree
in writing), the controversy, claim or dispute shall be finally and
conclusively resolved by binding
arbitration administered by the American Arbitration
Association in accordance with its Commercial Arbitration Rules (“AAA Rules”)
and subject to the Federal Arbitration Act, 9 U.S.C. Sections 1 et  seq.,
and judgment on any award thereby rendered may be entered in any court having
jurisdiction thereof.

 14
 

(a)     Any
such arbitration shall proceed as promptly and as expeditiously as possible
(and the Parties shall cooperate to this end) before three arbitrators,
consisting of one arbitrator appointed by the claimant, one arbitrator appointed
by the respondent, and the third arbitrator appointed by the two
party-appointed arbitrators.  Arbitration
shall be initiated by written notice of intention to arbitrate made pursuant
the AAA Rules.  The claimant shall
identify its appointed arbitrator in the notice of intention to arbitrate, and
the respondent shall identify its appointed arbitrator within ten (10) days of
its receipt of the notice of intention to arbitrate.  The two party-appointed arbitrators shall
agree upon and appoint the third arbitrator within the ten (10) day period
following the appointment of the second party-appointed arbitrator.  If either the claimant or the respondent fail
to appoint an arbitrator pursuant to the foregoing, or if the two
party-appointed arbitrators fail to agree upon and appoint the third arbitrator
within the above-referenced ten (10) day period, then such arbitrator or
arbitrators shall be appointed by the AAA pursuant to the AAA Rules.  The arbitrators chosen or appointed shall
have expertise and/or experience in the oil and gas industry.

(b)     Nothing
in this Section shall be deemed to preclude any Party from applying to any
court of competent jurisdiction at any time prior to the formation of the
arbitration panel (including before or during the 20-day negotiation period
referenced in the first sentence of this Section) for injunctive, provisional
or other emergency relief pertaining to the subject matter of a controversy,
claim or dispute that is arbitrable hereunder, or applying for such relief in aid
of arbitration after formation of the arbitration panel, where (i) the
arbitration award to which the Party may be entitled may be rendered
ineffectual without such relief, (ii) the Party seeking such relief is not in
breach of this Section, and (iii) the relief sought will not materially delay
or frustrate the arbitration.  The grant
or denial of any court-ordered relief pursuant to this paragraph shall not
constitute or be deemed to be a ruling on the merits of the matter to be
arbitrated, nor shall any application for such relief be deemed to be a waiver
of any right to arbitration hereunder.

(c)     The
Parties hereby agree that the costs and expenses, including attorneys’ fees,
incurred in connection with any arbitration or court proceeding hereunder shall
be awarded in favor of the prevailing Party and against the losing Party as
determined by the arbitration panel or court, as the case may be.

Section 22.            Entire
Agreement.  This
Agreement sets forth the entire agreement of the Parties with respect to the
subject matter hereof and any prior agreements, written or oral, relating
thereto are hereby superseded.

[THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK;

SIGNATURE PAGE IMMEDIATELY FOLLOWS]

 15
 

IN WITNESS WHEREOF, the undersigned have executed this
Management Services Agreement effective as of the date first above written.

	
   

  	
   

  	
  MANAGER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VINLAND ENERGY
  OPERATIONS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VANGUARD NATURAL
  GAS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARIANA ENERGY,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: VANGUARD
  NATURAL GAS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S. Nami

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TRUST ENERGY
  COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: VANGUARD
  NATURAL GAS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: MANAGER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: Manager

  

 

 16

EXHIBIT A-1

to the
Management Services Agreement

EXHIBIT A-2

to the
Management Services Agreement

EXHIBIT A-3

to the
Management Services Agreement

EXHIBIT A-4

to the
Management Services Agreement

EXHIBIT A-5

to the
Management Services Agreement

EXHIBIT B

to the Management Services
Agreement

PARTICIPATION
AGREEMENT

EXHIBIT C

to the Management Services
Agreement

Well
Services Agreements for Kentucky and Tennessee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]