Document:

Exhibit 10.1

    
      
        

      

    

     

     

     

    AMENDED
      AND RESTATED

     

    LIMITED
      LIABILITY COMPANY

     

    AGREEMENT

     

    OF

     

    IGNIS
      BARNETT SHALE, LLC

    (A
      Delaware Limited Liability Company)

     

    November
      15, 2006

     

     

    
      
        

        

      

       

    

    THE
      INTERESTS OF IGNIS BARNETT SHALE, LLC HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      THE
      SECURITIES LAWS OF ANY STATE OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE
      UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
      SUCH LAWS. SUCH INTERESTS MUST BE ACQUIRED FOR INVESTMENT ONLY AND MAY NOT
      BE
      OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED, OR TRANSFERRED AT
      ANY
      TIME EXCEPT IN COMPLIANCE WITH (A) THE SECURITIES ACT, ANY APPLICABLE STATE
      SECURITIES LAWS, AND ANY OTHER APPLICABLE SECURITIES LAWS; AND (B) THE TERMS
      AND
      CONDITIONS OF THIS LIMITED LIABILITY COMPANY AGREEMENT. SUCH INTERESTS MAY
      NOT
      BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS AND THIS LIMITED
      LIABILITY COMPANY AGREEMENT. THEREFORE, PURCHASERS OF SUCH INTERESTS WILL BE
      REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF
      TIME.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LIMITED
      LIABILITY COMPANY AGREEMENT

    OF

    IGNIS
      BARNETT SHALE, LLC

     

    TABLE
      OF CONTENTS

     

    
      
        	 	 	
                Page

              
	
                ARTICLE
                  I GENERAL

              
	
                1.1

              	
                Formation,
                  Continuation, Amendment, and Restatement

              	
                1

              
	
                1.2

              	
                Name

              	
                2

              
	
                1.3

              	
                Principal
                  Office

              	
                2

              
	
                1.4

              	
                Registered
                  Agent and Office

              	
                2

              
	
                1.5

              	
                Term

              	
                2

              
	
                1.6

              	
                Purpose

              	
                2

              
	
                1.7

              	
                Company
                  Property

              	
                2

              
	
                1.8

              	
                Tax
                  Treatment

              	
                2

              
	
                ARTICLE
                  II CERTAIN DEFINITIONS AND REFERENCES

              
	
                2.1

              	
                Certain
                  Defined Terms

              	
                3

              
	
                2.2

              	
                References
                  and Titles

              	
                3

              
	
                2.3

              	
                Standard
                  of Care

              	
                3

              
	
                ARTICLE
                  III MEMBERS

              
	
                3.1

              	
                Members

              	
                3

              
	
                3.2

              	
                Admission
                  of New Members

              	
                3

              
	
                3.3

              	
                No
                  Liability of Members

              	
                3

              
	
                3.4

              	
                Actions
                  by the Members

              	
                3

              
	
                3.5

              	
                Other
                  Activities of the Class A Members

              	
                4

              
	
                ARTICLE
                  IV MANAGEMENT AND VOTING

              
	
                4.1

              	
                A
                  Manager

              	
                4

              
	
                4.2

              	
                The
                  Plan

              	
                5

              
	
                4.3

              	
                Financing
                  and Hedging

              	
                6

              
	
                4.4

              	
                Delegation
                  to the B Manager

              	
                6

              
	
                4.5

              	
                Class
                  B Member Approvals

              	
                7

              
	
                4.6

              	
                Exculpation
                  and Indemnification

              	
                8

              
	
                4.7

              	
                Insurance

              	
                10

              
	
                ARTICLE
                  V CAPITALIZATION

              
	
                5.1

              	
                Commitments
                  and Capital Contributions

              	
                10

              
	
                5.2

              	
                Capital
                  Contributions

              	
                11

              
	
                5.3

              	
                Return
                  of Unused Capital Contributions

              	
                11

              
	
                5.4

              	
                Return
                  of Capital Contributions

              	
                11

              
	
                ARTICLE
                  VI INVESTMENTS AND ACTIVITIES; OTHER FUNDS

              
	
                6.1

              	
                The
                  PSA

              	
                11

              
	
                6.2

              	
                Other
                  Activities

              	
                12

              
	
                6.3

              	
                Confidential
                  Technology Information

              	
                12

              
	
                ARTICLE
                  VII DISTRIBUTIONS, ALLOCATIONS, AND TAX
                  MATTERS

              
	
                7.1

              	
                Distributions

              	
                13

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        	
                7.2

              	
                Restrictions
                  on Distributions

              	
                14

              
	
                7.3

              	
                Capital
                  Accounts

              	
                14

              
	
                7.4

              	
                Allocations
                  to Capital Accounts

              	
                15

              
	
                7.5

              	
                Tax
                  Allocations

              	
                17

              
	
                7.6

              	
                Determinations
                  under Article VII

              	
                18

              
	
                7.7

              	
                Restoration
                  of Negative Capital Accounts

              	
                18

              
	
                7.8

              	
                Withholding

              	
                18

              
	
                7.9

              	
                Tax
                  Elections

              	
                19

              
	
                7.10

              	
                Tax
                  Matters Partner

              	
                19

              
	
                ARTICLE
                  VIII FEES AND EXPENSES

              
	
                8.1

              	
                Company
                  Expenses and Reimbursement

              	
                19

              
	
                ARTICLE
                  IX CERTAIN MEMBER MATTERS

              
	
                9.1

              	
                Rights
                  of the Members

              	
                20

              
	
                9.2

              	
                Limitations
                  on Members

              	
                20

              
	
                9.3

              	
                Liability
                  of Members

              	
                20

              
	
                9.4

              	
                Agreements
                  of the Members

              	
                20

              
	
                9.5

              	
                Representations
                  and Warranties of all Members

              	
                20

              
	
                9.6

              	
                Additional
                  Representations and Warranties of the Class B Member

              	
                22

              
	
                9.7

              	
                Anti-Money
                  Laundering Provisions

              	
                22

              
	
                ARTICLE
                  X COVENANTS

              
	
                10.1

              	
                Conduct
                  of Business

              	
                23

              
	
                10.2

              	
                Notices

              	
                24

              
	
                10.3

              	
                Further
                  Assurances

              	
                24

              
	
                ARTICLE
                  XI TRANSFERS OF INTERESTS AND WITHDRAWALS

              
	
                11.1

              	
                General
                  Transfer Provisions

              	
                24

              
	
                11.2

              	
                Tag-Along
                  Rights

              	
                25

              
	
                11.3

              	
                Drag-Along
                  Rights

              	
                27

              
	
                11.4

              	
                Assignee’s
                  Rights

              	
                27

              
	
                11.5

              	
                Withdrawal
                  by a Member

              	
                27

              
	
                11.6

              	
                Removal
                  of the Class B Member for Cause or Death, Disability, or Voluntary
                  Termination

              	
                27

              
	
                ARTICLE
                  XII BOOKS, RECORDS, REPORTS, BANK ACCOUNTS

              
	
                12.1

              	
                Books
                  and Records

              	
                29

              
	
                12.2

              	
                Reports
                  and Opinions

              	
                29

              
	
                12.3

              	
                Tax
                  Returns; Tax Matters Partner

              	
                30

              
	
                12.4

              	
                Bank
                  Accounts

              	
                30

              
	
                ARTICLE
                  XIII DISSOLUTION, LIQUIDATION, AND TERMINATION

              
	
                13.1

              	
                Dissolution

              	
                30

              
	
                13.2

              	
                Winding-Up

              	
                30

              
	
                13.3

              	
                Distributions
                  in Cash or in Kind or a Winding-Up

              	
                31

              
	
                13.4

              	
                Time
                  for Liquidation

              	
                31

              
	
                13.5

              	
                Cancellation
                  of Certificate

              	
                31

              
	
                ARTICLE
                  XIV RIGHT OF FIRST OFFER

              
	
                ARTICLE
                  XV AMI ACTIVITIES

              
	
                15.1

              	
                Acreage
                  Purchase Limitation

              	
                32

              
	
                15.2

              	
                AMI
                  Right of First Offer

              	
                32

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        	
                15.3

              	
                Pursuit
                  of Opportunity

              	
                32

              
	
                15.4

              	
                Reimbursement
                  of Expenses

              	
                33

              
	
                ARTICLE
                  XVI MISCELLANEOUS

              
	
                16.1

              	
                Notices

              	
                33

              
	
                16.2

              	
                Amendments

              	
                33

              
	
                16.3

              	
                Entire
                  Agreement

              	
                33

              
	
                16.4

              	
                No
                  Waiver

              	
                33

              
	
                16.5

              	
                Applicable
                  Law; Submission to Jurisdiction

              	
                33

              
	
                16.6

              	
                Successors
                  and Assigns

              	
                34

              
	
                16.7

              	
                Exhibits,
                  etc.

              	
                34

              
	
                16.8

              	
                Survival
                  of Representations and Warranties

              	
                34

              
	
                16.9

              	
                No
                  Third-Party Benefit

              	
                34

              
	
                16.10

              	
                Filings

              	
                34

              
	
                16.11

              	
                WAIVER
                  OF TRIAL BY JURY

              	
                34

              
	
                16.12

              	
                Arbitration
                  of Disputes

              	
                34

              
	
                16.13

              	
                Remedies

              	
                36

              
	
                16.14

              	
                Use
                  of Silver Point Name

              	
                36

              
	
                16.15

              	
                Severability

              	
                36

              
	
                16.16

              	
                Press
                  Releases

              	
                36

              

      

    

     

    EXHIBITS

    

    Exhibit
      A
      - Defined Terms

    Exhibit
      B
      - Member Commitments and Percentage Interests

    Exhibit
      C
      - Services Agreement

    

    APPENDICES

    

    Appendix
      A 

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    

      AMENDED
        AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

       

      OF

       

      IGNIS
        BARNETT SHALE, LLC

       

      (A
        Delaware Limited Liability Company)

      

      THIS
        LIMITED LIABILITY COMPANY AGREEMENT (as amended, restated, or modified, this
        “Agreement”)
        OF
        IGNIS BARNETT SHALE, LLC (the “Company”)
        is
        made and entered into this 15th
        day of
        November, 2006,
        by
        and between Ignis Petroleum Group, Inc., a Nevada corporation (“Ignis”
and
        also the “Class
        B Member”),
        SPC
        Ignis Inc., a Delaware corporation, SPC Ignis (Onshore) LLC, a Delaware limited
        liability company, and SPC Ignis (Finance) LLC, a Delaware limited liability
        company (each a “Class
        A Member”)
        (each
        of Ignis and the Class A Members, a “Member”
and
        jointly the “Members”).
        In
        consideration of the mutual covenants and agreements contained herein, the
        parties hereto agree as follows:

      

      WHEREAS,
        the Company was formed as a Texas limited liability company by the filing
        of a
        Certificate of Formation (the “Texas
        Certificate”)
        with
        the Secretary of State of the State of Texas on August 29, 2006 (the
“Formation
        Date”),
        and
        the execution of that certain Limited Liability Company Agreement of the
        Company, dated as of August 29, 2006 (the “Original
        Agreement”);
        and

      

      WHEREAS,
        the Company has entered into that certain Purchase and Sale Agreement with
        W.B.
        Osborn Oil & Gas Operations, Ltd., d/b/a W.B. Osborn Oil & Gas
        Operations (“WBO”)
        and
        St. Jo Pipeline, Limited, both Texas limited partnerships, dated as of September
        27, 2006 (as amended, the “PSA”);

      

      WHEREAS,
        the Company converted to a limited liability company under the laws of the
        State
        of Delaware by filing a Certificate of Conversion and Certificate of Formation
        with the Secretary of State of the State of Delaware on November 13,
        2006;

      

      WHEREAS,
        prior to the execution and delivery of this Agreement and the admission of
        the
        Class A Members as members pursuant hereto, the Class B Member is, and always
        has been the sole member of the Company;

      

      WHEREAS,
        the Class B Member desires to admit the Class A Members as a Members of the
        Company; and

      

      WHEREAS,
        the Members desire to amend and restate the Original Agreement in its
        entirety.

       

      NOW,
        THEREFORE, in consideration of these premises, it is hereby agreed as
        follows:

      

      ARTICLE
        I

      GENERAL

       

      1.1    Formation,
        Continuation, Amendment, and Restatement.
        The
        Members hereby agree to continue the Company as a limited liability company
        pursuant to the Act upon the terms and subject to the conditions set forth
        in
        this Agreement. This Agreement amends and restates in its entirety and
        supersedes the Original Agreement, effective as of the date hereof. The Members
        agree that the Company shall be governed by the terms and conditions set
        forth
        in this Agreement and, except as provided herein, the Act.

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      1.2    Name.
        The
        name
        of the Company shall be “Ignis Barnett Shale, LLC.” Subject to all applicable
        laws, the business of the Company shall be conducted in the name of the Company
        unless otherwise required under the laws of some jurisdiction in which the
        Company does business, in which instance the business of the Company in such
        jurisdiction may be conducted under such other name or names (except the
        names
        of the Class A Members or any Affiliate thereof or the name of the Class
        B
        Member or any Affiliate thereof) as the A Manager shall determine in its
        sole
        discretion to be necessary as long as it does not affect adversely the limited
        liability of the Members hereunder or jeopardize in any manner the title
        to or
        ownership of any of the assets of the Company or result in liability to the
        Company it would otherwise not have had. The A Manager shall cause to be
        filed
        on behalf of the Company qualification or such assumed or fictitious name
        certificate or certificates or similar instruments as may from time to time
        be
        required by law.

      

      1.3    Principal
        Office.
        The
        principal office and place of business of the Company and its
        street address shall be 100 Crescent Court, 7th
        Floor,
        Dallas, Texas 75201. The A Manager, at any time and from time to time, may
        change the location of the Company’s principal office and place of business and
        may establish such additional place or places of business of the Company
        as the
        A Manager shall determine to be necessary or desirable; provided,
        however,
        the
        location is in Texas and notice thereof is given concurrently to the
        Members.

       

      1.4    Registered
        Agent and Office.
        The
        registered office of the Company in Delaware is 1209 Orange Street, Wilmington,
        Delaware 19801, New Castle County, and the registered agent for service of
        process on the Company in Delaware is Corporation Trust Company. The registered
        office of the Company in Texas is 100 Crescent Court, 7th
        Floor,
        Dallas, Texas 75201, and the registered agent for service of process on the
        Company in Texas is Michael P. Piazza. The A Manager, at any time and from
        time
        to time, may change the Company’s registered offices or registered agents or
        both by complying with the applicable provisions of the Act or other applicable
        law and by giving concurrent notice thereof to all Members and may establish,
        appoint, and change additional registered offices and registered agents of
        the
        Company in such other states as the A Manager shall determine to be necessary
        or
        desirable.

      

      1.5    Term.
        The
        Company was formed on the Formation Date and shall continue until terminated
        following dissolution in accordance with Section 13.1.

      

      1.6    Purpose.
        Subject
        to the other provisions of this Agreement, the business of the Company shall
        be:
        (a) exploring, developing, operating, investing in, acquiring, expanding,
        selling, managing, and financing, directly or indirectly, oil and gas
        properties, including those properties held by the Company as of the date
        hereof
        and properties acquired after the date hereof, and any gas pipeline gathering
        system related to such properties, (b) the development, acquisition, and
        improvement of technology, know-how, trade secrets, and other intellectual
        property and rights therein relating to or used or useful in connection with
        the
        Project (including any horizontal drilling techniques acquired, developed,
        or
        improved in connection with the Project), and (c) taking all such other actions
        incidental to any of the foregoing as may be necessary or desirable and in
        which
        a Delaware limited liability company may legally engage.

      

      1.7    Company
        Property.
        No real
        or other property of the Company shall be deemed to be owned by any Member
        individually, but shall be owned by and title shall be vested solely in the
        Company.

      

      1.8    Tax
        Treatment.
        Unless
        otherwise determined by the A Manager, the Company shall be treated as a
        partnership for U.S. federal income tax purposes (as well as for any analogous
        state or local tax purposes), and the A Manager shall cause the Company to
        timely make any and all necessary elections and filings for the Company to
        be
        treated as a partnership for U.S. federal income tax purposes (as well as
        for
        any analogous state or local tax purposes).

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      ARTICLE
        II

      CERTAIN
        DEFINITIONS AND REFERENCES

       

      2.1    Certain
        Defined Terms.
        When
        used in this Agreement, certain capitalized terms shall have the respective
        meanings assigned to them on Exhibit A.

       

      2.2    References
        and Titles.
        All
        references in this Agreement to articles, sections, subsections, and other
        subdivisions refer to corresponding articles, sections, subsections, and
        other
        subdivisions of this Agreement unless expressly provided otherwise. Titles
        appearing at the beginning of any of such subdivisions are for convenience
        only,
        shall not constitute part of such subdivisions, and shall be disregarded
        in
        construing the language contained in such subdivisions. The words “this
        Agreement,” “this instrument,” “herein,” “hereof,” “hereby,” “hereunder,” and
        words of similar import refer to this Agreement as a whole and not to any
        particular subdivision unless expressly so limited. Words in the singular
        form
        shall be construed to include the plural and vice
        versa,
        unless
        the context otherwise requires. Examples shall not be construed to limit,
        expressly or by implication, the matter they illustrate. No consideration
        shall
        be given to the fact or presumption that one party had a greater or lesser
        hand
        in drafting this Agreement. All references herein to “$” or “dollars” shall
        refer to U.S. Dollars.
        The word
“includes” and its variants mean including, without limitation. The phrase “the
        date of this Agreement” or “the date hereof” shall mean November 15,
        2006.

      

      2.3    Standard
        of Care.
        Whenever in this Agreement any Person is permitted or required to make a
        decision (a) in its “sole and absolute discretion,” “sole discretion,”
“discretion,” or under a grant of similar authority or latitude, such Person
        shall be entitled to consider such interests and factors as it desires,
        including its own interests, and such Person shall not have any duty or
        obligation to give any consideration to any interest of or factors affecting
        any
        other Person, or (b) in its “good faith” or under another express standard, such
        Person shall act under such express standard and shall not be subject to
        any
        other or different standard imposed by this Agreement or other applicable
        law.

      

      ARTICLE
        III

      MEMBERS

      

      3.1    Members.
        The
        name, address, Commitment, Capital Contributions, and class of interest of
        the
        Members are set forth on Exhibit B hereto, which shall be amended from time
        to
        time to reflect the admission of new Members, additional Capital Contributions
        of Members, or the Transfer of Interests of any Member.

      

      3.2    Admission
        of New Members.
        No
        Person shall be admitted as a Member of the Company other than as set forth
        in
        Article XI
        of this
        Agreement.

      

      3.3    No
        Liability of Members.
        All
        debts, obligations, and liabilities of the Company, whether arising in contract,
        tort, or otherwise shall be solely the debts, obligations, and liabilities
        of
        the Company, and no Member shall be obligated personally for any such debt,
        obligations, or liability of the Company solely by reason of being a
        Member.

      

      3.4    Actions
        by the Members.

      

      (a)    No
        Member
        (acting in its capacity as such) shall have any authority to bind the Company
        to
        any third party with respect to any matter. Meetings of Members may be called
        by
        the Managers upon at least five (5) days’ prior written notice of the time and
        place of such meeting. For any meeting of Members, the presence in person
        or by
        proxy of all of the Members at the time of the action taken constitutes a
        quorum
        for the transaction of business.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (b)    The
        Members may vote, approve a matter, or take any action by the vote of the
        Members at a meeting, in person or by proxy, or without a meeting by written
        consent. Any action required or permitted to be taken at any meeting of the
        Members may be taken without a meeting if Members holding Interests sufficient
        to approve the action pursuant to the terms of this Agreement consent thereto
        in
        writing, and the writing or writings are filed with the minutes of the
        proceedings of the Members. In no instance where action is authorized by
        written
        consent shall a meeting of Members be called or notice be given; however,
        a copy
        of the action taken by written consent shall be sent promptly to all Members
        and
        filed with the records of the Company.

      

      3.5    Other
        Activities of the Class A Members.

      

      (a)    Notwithstanding
        anything in this Agreement to the contrary, the Class A Members and any of
        their
        Affiliates may engage independently or with others, for their own accounts
        and
        for the accounts of others, in other business ventures and activities of
        every
        nature and description whether such ventures are competitive with the business
        of the Company or any other Member or otherwise; provided,
        however,
        (a) that
        Daniel Bardes and Spencer Wells, both employees of Silver Point, shall not
        directly engage in any business ventures or activities that relate to gas
        pipeline gathering systems in the AMI with competitors of the Company while
        employed by Silver Point, and (b) this Section
        3.5
        will not
        relieve the Class A Members of their obligations under Section
        6.3.
        Neither
        the Company nor any Member shall have any rights or obligations by virtue
        of
        this Agreement in and to such independent ventures and activities or the
        income
        or profits derived therefrom, and neither the Class A Members nor any of
        their
        Affiliates shall be under any obligation to refer any opportunities,
        investments, ventures, or the like to the Company, the Class B Member, or
        the B
        Manager.

      

      (b)    Prior
        to
        the occurrence of an event in Section
        13.1,
        Silver
        Point shall not sell short the common stock of Ignis.

      

      ARTICLE
        IV

      MANAGEMENT
        AND VOTING

      

      4.1    A
        Manager.
        Except
        as expressly set forth herein, the Company and its affairs will be managed,
        operated, and controlled by or under the direction of the A Manager. Without
        limiting the generality of the foregoing, subject to Section 4.5, the A
        Manager shall have exclusive power and authority to authorize and direct,
        and to
        prohibit, without limitation:

      

      (a)    the
        approval of the annual budget of the Company and the incurrence of any
        expenditures that would cause any line item in the annual budget to be exceeded
        by more than 10% or cause the annual budget to be exceeded in the aggregate
        by
        more than 5%;

      

      (b)    any
        cash
        or non-cash distributions;

      

      (c)    any
        modification or expansion of the Plan or the Company’s objectives, purposes,
        activities, or strategy;

      

      (d)    any
        related party transactions;

      

      (e)    the
        establishment or creation of a class of interests other than Class A Interests
        or Class B Interests, or issuance of any additional interests or options
        or
        rights to acquire any additional Interests in the Company to any third party
        or
        the acceptance by the Company of any additional capital contributions in
        variation from the Plan or budget;

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (f)    
any
        reduction in the amount of any reserves for liabilities;

      

      (g)    entering
        into, amending, or terminating any contract or agreement outside of any budget
        or exercising or waiving any material right under any contract or
        agreement;

      

      (h)    entering
        into any third-party consulting or services agreement or any material agreement,
        notwithstanding that each such agreement may have been contemplated by the
        budget;

      

      (i)    
borrowing
        money, acting as a guarantor, encumbering any assets, or otherwise becoming
        directly or indirectly liable with respect to any indebtedness;

      

      (j)    
the
        sale
        of any material asset(s) of the Company;

      

      (k)    the
        Company becoming a party to a merger, exchange, or consolidation or similar
        transaction;

      

      (l)    
taking
        any material action under any operating agreements to which the Company is
        a
        party or to which any of its assets are subject (the “Operating
        Agreements”);

      

      (m)   the
        amendment or termination of any of the Operating Agreements;

      

      (n)    making
        decisions relating to the management and monitoring of any Operating Agreement,
        including quarterly budget approvals and risk management policies and decisions
        under any Operating Agreement;

      

      (o)    making
        any tax or legal decisions, including initiating, responding to, or settling
        any
        litigation or other proceeding; 

      

      (p)    the
        redemption or repurchase of any Interests in the Company;

      

      (q)    the
        amendment or modification of any provision of this Agreement;

      

      (r)    
the
        dissolution, liquidation, or winding up of the Company;

      

      (s)    the
        purchase of any insurance policy;

      

      (t)    
the
        approval of any regulatory filings required of the Company under applicable
        law
        or required by any governmental authority; and

      

      (u)    the
        removal of the B Manager.

      

      4.2    The
        Plan.
        Within
        thirty (30) days of the execution of this Agreement, the B Manager shall
        prepare
        a detailed operating plan and forecast for the Project, which shall include
        a
        detailed (i.e., broken down by line items and nature of cost) month-by-month
        budget, basic pro forma financial projections, and a description of the proposed
        operations (including, without limitation, the number of wells to be drilled,
        the location of each well, the commencement date and expected completion
        date
        for the drilling of each well, the estimated costs of drilling of each well
        and
        other ancillary costs, and the estimated initial flow rates) (the “Plan”)
        and
        present such Plan to the A Manager for its review and approval. The B Manager
        shall make itself available to the A Manager to discuss and review the Plan
        and
        shall provide such support and other documentation or explanation as the
        A
        Manager may reasonably request. The B Manager shall make any modifications
        to
        the Plan as are requested by the A Manager. The B Manager shall update the
        Plan
        semi-annually to take into consideration any developments (including, without
        limitation, any change in any scheduled items under the PSA or the Operating
        Agreements), change in circumstances, including any requests under the Operating
        Agreements, and shall present the Plan, as revised, to the A Manager for
        review,
        modification, and approval at least 30 days prior to January 1 and July 1
        of
        each calendar year; provided,
        however,
        that, in
        the event of any material development affecting the Plan or any element thereof
        at any time during a year, the B Manager shall provide a revised Plan or
        relevant element thereof to the A Manager for review and approval as soon
        as
        reasonably practicable after the occurrence of such development.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      4.3    Financing
        and Hedging.
        Notwithstanding anything in this Agreement to the contrary, the A Manager
        shall have the exclusive power to cause the Company to enter into, modify,
        or
        terminate any bank and other financing agreements, instruments, or other
        arrangements, including any working capital facility, or any agreements,
        arrangements, or programs designed to hedge the financial exposure of the
        Company; provided,
        however,
        that the
        A Manager shall consult with the B Manager prior to the taking of any such
        action.

      

      4.4    Delegation
        to the B Manager.

      

      (a)    Initially,
        the A Manager delegates to the B Manager, and the B Manager accepts the
        delegation of the duties and responsibilities set forth in this Section
        4.4,
        subject
        to the removal of such delegation at the A Manager’s discretion. The B Manager
        shall:

      

      (i)    
manage
        the day-to-day operations of the Company, which shall include the power and
        duties to do the following:

      

      (A)   administer
        the Project in accordance with the Plan (as approved by and incorporating
        the
        wishes of the A Manager) and approved annual budgets and operating
        plans;

      

      (B)    develop
        and implement risk management policies; 

      

      (C)    implement
        financial controls and reporting necessary for the management of the Project
        and
        the working capital facility; and

      

      (D)   provide
        administration and recordkeeping for the Company (including causing to be
        prepared audited financial statements by the Company’s auditors, the preparation
        and filing of the Company’s tax returns, etc.).

      

      (ii)    monitor
        WBO and any other operator under the Operating Agreements to ensure compliance
        with the Operating Agreements and any and all laws and regulations applicable
        to
        the Project and the Properties, as that term is defined in the PSA;

      

      (iii)   present
        to the A Manager on a timely basis any decisions to be made or opportunities
        available to the Company under the Operating Agreements, together with the
        B
        Manager’s recommendation with respect to each such decision or opportunity, and
        implement such decisions and proceed with such opportunities only in accordance
        with the standards and directions provided by the A Manager;

      

      (iv)   take
        all
        actions necessary and desirable to maximize the value of the Project and
        the
        Company;

      

      (v)    implement,
        administer, and enforce strategies to optimize the Project and the
        Company;

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (vi)   develop,
        perfect, improve, and protect horizontal drilling techniques, technology,
        know-how, trade secrets, and other intellectual property, acquired, developed,
        or improved in connection with the Project in order to maximize the value
        of the
        Project and exploit the assets of the Company;

      

      (vii)         
        cooperate
        with WBO in developing, perfecting, improving, and protecting horizontal
        drilling techniques and other related and ancillary intellectual
        property;

      

      (viii)        
        develop
        and implement strategies to assess and pursue opportunities to enhance the
        Project;

      

      (ix)   provide
        experienced personnel to manage the Company and to manage and develop and
        exploit the Project and the Company’s Intellectual Property Rights at the
        expense of the Class B Member, except as otherwise provided in the Services
        Agreement, dated as of the date hereof, between Ignis and the Company attached
        hereto as Exhibit
        C
        (the
“Services
        Agreement”);
        and

      

      (x)           
        make
        all
        necessary regulatory filings required of the Company under applicable law
        or
        required by any governmental authority; provided
        that all
        such filings shall be delivered to the A Manager for approval prior to such
        filing.

      

      (b)    When
        the
        B Manager is acting or refraining from taking any action on behalf of the
        Company pursuant to the duties and responsibilities delegated in this
Section
        4.4
        it shall
        act in accordance with the following:

      

      (i)    
exercise
        all due care and diligence in carrying out its duties and obligations under
        this
        Agreement;

      

      (ii)    comply
        with all applicable laws and regulations;

      

      (iii)   refrain
        from taking any action which could reasonably be expected to have a detrimental
        effect on the business of the Company or on the business or reputation of
        Silver
        Point or which could reasonably be expected to have an adverse tax or regulatory
        effect on the business of the Company or on the business or reputation of
        Silver
        Point (and shall not fail to take an action where such failure could reasonably
        be expected to have any such detrimental or adverse effect; and

      

      (iv)   conduct
        its and the Company’s business honestly, in good faith, in the best interests of
        the Company, in compliance with the best practices customary in the industry,
        use its commercially reasonable best efforts to preserve intact the Company’s
        business organizations and relationships with third parties, and keep available
        the services of its present officers and employees.

      

      4.5    Class
        B Member Approvals.
        The
        consent of the B Member shall be required for the following:

      

      (a)    except
        as
        permitted in Section
        4.5(b),
        the
        amendment or modification of any provision of this Agreement in a manner
        that
        would adversely affect the legal rights of the Class B Member; 

      

      (b)    the
        establishment or creation of a class of interests other than the Interests
        to be
        held by the Class A Member or the Class B Member or the issuance of any
        additional interests or options or rights to acquire any additional interests
        in
        the Company to any third party, or the acceptance by the Company of any
        additional capital contributions, in each case, if such actions would adversely
        affect the Interests held by the Class B Member disproportionately more than
        the
        Interests held by the Class A Members;

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (c)    any
        transaction between the Company and Silver Point or any of its Affiliates,
        other
        than on such terms and conditions that are at least as favorable to the Company
        as would be expected to be obtained in an arm’s length transaction;

      

      (d)    any
        change in the primary business purpose of the Company; and

      

      (e)    the
        redemption or the repurchase by the Company of any Interests other than on
        a pro
        rata basis.

      

      4.6    Exculpation
        and Indemnification.

      

      (a)    Company
        Liabilities.

      

      (1)    None
        of
        the Covered Persons (as defined below) shall be liable, responsible, or
        accountable to the Company or to any of the Members, in damages or otherwise,
        for any error of judgment, for any mistake of fact or of law, or for any
        other
        act or thing which it may do or refrain from doing in connection with the
        operations, business, and affairs of the Company, except to the extent that
        any
        such damages are determined by an arbitral tribunal of competent jurisdiction
        to
        have been caused by such Covered Person’s intentional misconduct, gross
        negligence, fraud, bad faith, material breach of this Agreement (except in
        the
        case of clauses (iv), (v), (vi), and (vii) of Section
        4.4(a),
        which
        shall require a willful and material breach of this Agreement), or knowing
        violation of law.

      

      (ii)    None
        of
        the Covered Persons shall have any liability for the return of any Member’s
        Capital Contributions. All liabilities of the Company, including indemnity
        obligations under Section 4.6(b),
        shall
        be liabilities of the Company as an entity, and shall be paid or satisfied
        from
        Company assets. No liability of the Company will be payable, in whole or
        in
        part, by any Member in its capacity as a Member.

      

      (iii)   Each
        of
        the Managers may exercise any of the powers granted to it by this Agreement
        and
        perform any of the duties imposed upon it hereunder either directly or by
        or
        through its agents.

      

      (b)    Indemnity.

      

      (i)    To
        the
        fullest extent permitted by law, the Company shall indemnify and hold harmless
        each Member, each Manager, and the respective officers, directors, shareholders,
        managers, members, employees, agents, subsidiaries, and assigns of each Member
        or Manager (each, a “Covered
        Person”),
        from
        and against any and all losses, claims, demands, liabilities, expenses,
        judgments, fines, settlements, and other amounts arising from any and all
        claims, demands, actions, suits, or proceedings civil, criminal, administrative,
        or investigative (each a “Claim”),
        in
        which the Covered Person may be involved, or threatened to be involved, as
        a
        party or otherwise, that relates to or arises out of the Company or its
        property, business, or affairs; provided,
        however,
        that a
        Covered Person shall not be entitled to indemnification under this Section
        4.6(b)
        with
        respect to (A) any Claim in which it ultimately is determined by an arbitral
        tribunal of competent jurisdiction to have been caused by the Covered Person’s
        fraud, intentional misconduct, bad faith, gross negligence, or material breach
        of this Agreement (except in the case of clauses (iv), (v), (vi), and (vii)
        of
Section
        4.4(a),
        which
        shall require a willful and material breach of this Agreement), or knowing
        violation of law, (B) any Claim initiated by a Covered Person unless that
        Claim
        (or part thereof) was brought to enforce that Covered Person’s rights to
        indemnification under this Section 4.6(b),
        or (C)
        any Claim by the Company or any Member against a Member or that Member’s
        officers, directors, shareholders, managers, members, employees, agents,
        subsidiaries, and assigns unless the Covered Person is found not to be liable
        for such Claim by an arbitral tribunal of competent jurisdiction.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (ii)    The
        Company shall pay in advance of the final disposition of any Claim for which
        a
        Covered Person is or may be entitled to indemnification under this Section
        4.6(b)
        (other
        than those described in Section
        4.6(b)(i)(C))
        expenses incurred by that Covered Person in defending that Claim; provided
        that the
        Covered Person delivers to the Company an undertaking by or on behalf of
        that
        Covered Person to repay amounts so advanced if it ultimately is determined
        that
        the Covered Person is not entitled indemnification under this Section
        4.6(b).

      

      (iii)   Notices
        of Claims, etc.
        Promptly
        after receipt by a Covered Person of notice of the commencement of any
        proceeding, such Covered Person shall, if a claim for indemnification in
        respect
        thereof is to be made against the Company, give written notice to the Company
        of
        the commencement of such proceeding, provided
        that the
        failure of any Covered Person to give such notice as provided herein shall
        not
        relieve the Company of its obligations under this Section 4.6(b),
        except
        to the extent the Company is actually prejudiced by such failure to give
        such
        notice. If any such proceeding is brought against a Covered Person (other
        than a
        derivative suit in right of the Company), the Company will be entitled to
        participate in and to assume, at its expense, the defense thereof to the
        extent
        the Company may wish, with counsel reasonably satisfactory to such Covered
        Person. After notice from the Company to such Covered Person of the Company’s
        election to assume the defense of such proceeding, the Company will not be
        liable for expenses subsequently incurred by such Covered Person in connection
        with the defense thereof, provided
        the
        Company diligently pursues such defense. The Company will not consent to
        entry
        of any judgment or enter into any settlement of such proceeding that does
        not
        include as an unconditional term thereof the giving by the claimant or plaintiff
        to such Covered Person of a release from all liability in respect to such
        proceeding and the related claim.

      

      (iv)   Survival
        of Protection.
        The
        provisions of this Section 4.6(b)
        shall
        continue to afford protection to each Covered Person regardless of whether
        such
        Covered Person remains in the position or capacity pursuant to which such
        Covered Person became entitled to indemnification under this Section 4.6(b),
        and no
        amendment to this Agreement shall reduce or restrict the extent to which
        these
        indemnification provisions apply to actions taken or omissions made prior
        to the
        date of such amendment.

      

      (v)    Rights
        Cumulative.
        The
        right of any Covered Person to the indemnification provided herein shall
        be
        cumulative with, and in addition to, any and all rights to which such Covered
        Person may otherwise be entitled by contract or as a matter of law or equity
        and
        shall extend to such Covered Person’s successors, assigns, heirs, and legal
        representatives. Notwithstanding anything else contained in this Agreement,
        the
        indemnity obligations of the Company under this Section 4.6(b)
        shall:

      

      (A)   be
        in
        addition to any liability that the Company may otherwise have;

      

      (B)   extend
        upon the same terms and conditions to the officers, directors, members,
        managers, employees, Affiliates, stockholders, owners, agents, and
        representatives of each Covered Person;

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (C)    be
        binding upon and inure to the benefit of any successors, assigns, heirs,
        and
        personal representatives of such Covered Person and any such Persons;
        and

      

      (D)    be
        limited to the sum of the assets of the Company.

      

      (c)    Other
        Source of Recovery.
        The A
        Manager shall cause the Company to use its commercially reasonable efforts
        to
        obtain the funds needed to satisfy its indemnification obligations under
        Section 4.6(b)
        from
        Persons other than the Members (for example, out of Company assets or pursuant
        to insurance policies or Company indemnification arrangements) before causing
        the Company to make payments pursuant to Section 4.6(b).
        Notwithstanding the foregoing, nothing in this Section 4.6(c)
        shall
        prohibit the A Manager from causing the Company to make such payments if
        the A
        Manager determines, in its reasonable discretion, that the Company is not
        likely
        to obtain sufficient funds from such other sources in a timely fashion, or
        that
        attempting to obtain such funds would be futile, commercially unreasonable,
        or
        not in the best interests of the Company (for example, nothing in this
Section 4.6(c)
        shall
        require the A Manager to cause the Company to sell any assets outside the
        ordinary course of business before such time as the A Manager shall determine
        is
        advisable).

      

      (d)    Limitation
        by Law.
        If any
        Covered Person or the Company itself is subject to any federal or state law,
        rule, or regulation which restricts the extent to which any Person may be
        exonerated or indemnified by the Company, the exoneration provisions set
        forth
        in Section 4.6(a)
        and the
        indemnification provisions set forth in Section 4.6(b)
        shall be
        deemed to be amended, automatically and without further action by the Managers,
        to the minimum extent necessary to conform to such restrictions.

      

      (e)    Arbitration.
        It is a
        condition to any Covered Person’s enforcement of indemnification under this
Section
        4.6
        that it
        submits to arbitration under Section
        16.12
        with
        respect to any issue regarding its entitlement to indemnification.

      

      4.7    Insurance.
        Subject
        to the approval of the A Manager, the B Manager shall cause the Company,
        at the
        Company’s expense, to obtain (and maintain during the entire term of the
        Company), insurance coverage in such amounts, with provisions for such
        deductible amounts, and for such purposes, as the A Manager shall determine.
        Such policies may in the A Manager’s discretion include coverage to protect the
        Company and any Covered Person against any expense, liability, or loss, whether
        or not the Company would have the power to indemnify such Covered Person
        against
        such expense, liability, or loss under this Agreement or the Act. The Company
        shall include the Members, the Managers, and their respective Affiliates
        as
        additional insureds on any policies otherwise carried by the Company. The
        policies shall, in all instances, require that any notice of cancellation
        or
        notice of proposed cancellation shall be sent to all Members.

      

      ARTICLE
        V

      CAPITALIZATION

      

      5.1    Commitments
        and Capital Contributions.

      

      (a)    The
        Class
        A Members shall make contributions of capital to the Company (“Capital
        Contributions”)
        to fund
        the Purchase Price (as that term is defined in the PSA)
        at such
        times and in such amounts as provided for in the PSA and shall make any
        additional Capital Contributions as and in the amounts provided in any Plan
        or
        budget, as approved by the A Manager in accordance with Section
        4.2.
        The
        Capital Contributions of the Class A Members, as increased by the out-of-pocket
        costs incurred by the Class A Members in entering into this Agreement, shall
        be
        referred to as the “Aggregate
        Capital Contributions”
of
        the
        Class A Members.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (b)    The
        Class
        B Member’s Commitments shall be zero, and the Class B Member shall have no
        obligation or liability to make any Capital Contributions.

      

      5.2    Capital
        Contributions.
        The
        Capital Contributions shall be paid in separate Drawdowns, at such times
        as
        shall be determined by the B Manager, subject to the provisions of Section
        5.1
        and the
        following additional terms and conditions:

      

      (a)    Timing
        of Drawdown Notices; Use of Drawdowns.
        The B
        Manager shall provide the Class A Members with a notice of each Drawdown
        (a
“Drawdown
        Notice”)
        at
        least 10 Business
        Days prior to the date on which such Drawdown is due and payable to the Company
        (the “Funding
        Date”).

      

      (b)    Contents
        of Drawdown Notices.
        Each
        Drawdown Notice shall include (i) a brief description of the transaction
        or
        purpose for which such Capital Contribution is required, (ii) the aggregate
        amount of Capital Contributions, (iii) the Funding Date, (iv) wire
        transfer or other remittance instructions, and (v) such other information
        with respect to the Drawdown as the B Manager shall determine is appropriate
        or
        the Class A Members shall request.

      

      (c)    Payment of Drawdown.
        The
        Class A Members shall pay to the Company the Capital Contribution specified
        in
        the relevant Drawdown Notice, as the same may be revised pursuant to this
        Section
        5.2,
        by wire
        transfer in immediately available funds in U.S. dollars to the account specified
        therein; provided,
        however,
        that the
        aggregate amounts required to be contributed by the Class A Members to the
        Company shall not exceed the amounts provided for in the first sentence of
        Section
        5.1(a).

      

      (d)    No
        Third-Party Beneficiary.
        The
        provisions of this Section 5.2
        are
        intended solely to benefit the Company and the Members (and their Affiliates
        and
        Covered Persons, where applicable) and, except as provided in Section
        4.6
        (with
        respect to Covered Persons), or as otherwise specifically agreed with any
        third
        party, shall not be construed as conferring any benefit upon any creditor
        of the
        Company (and no such creditor shall be a third-party beneficiary of this
        Agreement), and no Member shall have any duty or obligation to any creditor
        of
        the Company to make any contributions to the capital of the Company pursuant
        to
        this Section 5.2
        or to
        cause the B Manager to deliver to any Member a Drawdown Notice.

      

      5.3    Return
        of Unused Capital Contributions.
        If the
        Company receives Capital Contributions in excess of the Company’s actual
        requirements, the B Manager shall cause the Company to return the excess
        portion
        of such Capital Contributions to the Class A Members within 10 Business Days
        after the funding of such Capital Contributions to the Company, and the
        Commitments of the Class A Members shall be restored by such amount. Any
        funds
        returned to the Members pursuant to this Section 5.3 shall
        not be treated as Capital Contributions, nor shall the return of such funds
        be
        treated as a Company distribution for purposes of
Section 7.1.

      

      5.4    Return
        of Capital Contributions.
        No
        interest shall accrue on any Capital Contributions and no Member shall have
        the
        right to withdraw or be repaid any Capital Contributions by that Member except
        as provided in Sections 5.3,
        and
        no
        Member shall be liable for the return of any other Member’s Capital
        Contributions. 

      

      ARTICLE
        VI

      INVESTMENTS
        AND ACTIVITIES; OTHER FUNDS

      

      6.1    The
        PSA.
        The
B
        Manager
        shall cooperate with the A Manager to cause the Company to participate in
        and
        carry out the obligations of the PSA.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      6.2    Other
        Activities.

      

      (a)    Class
        B Member and Technology.

      

      (i)    
The
        Class
        B Member hereby assigns, transfers, and conveys to the Company all Intellectual
        Property Rights. The Class B Member hereby covenants that it shall cause
        each of
        its Affiliates to assign, transfer, and convey all Intellectual Property
        Rights.

      

      (ii)    Any
        Class
        B Improvements shall be made for the benefit of the Company, and the Class
        B
        Member shall, and shall cause its Affiliates to, assign to the Company
        exclusively throughout the world all right, title, and interest (choate or
        inchoate) to the Class B Improvements during the term of this Agreement and
        thereafter.

      

      (iii)   The
        Class
        B Member agrees, and shall cause its Affiliates, to assist the Company in
        every
        legal way to evidence, record, and perfect the assignment, transfer, and
        conveyance of any Intellectual Property Rights and Class B Improvements to
        the
        Company and to apply for and obtain recordation of and from time to time
        enforce, maintain, and defend the assigned rights. If the Company is unable
        for
        any reason whatsoever to secure the Class B Member’s (or its Affiliate’s)
        signature to any document it is entitled to under this Section
        6.2,
        the
        Class B Member hereby irrevocably designates and appoints the Company and
        its
        duly authorized officers and agents, as its agents and attorneys-in-fact
        with
        full power of substitution to act for and on its behalf and in its stead,
        to
        execute and file any such document or documents and to do all other lawfully
        permitted acts to further the purposes of the foregoing with the same legal
        force and effect as if executed by the Class B Member.

      

      (iv)   The
        Class
        B Member represents that the Intellectual Property Rights transferred to
        the
        Company pursuant to Section
        6.2(a)(i)
        represent all right, title, and interest of the Class B Member and each of
        its
        Affiliates in and to intellectual property rights of any nature in and to
        the
        Technology.

      

      (b)    The
        B
        Manager shall undertake to license and exploit the Technology and exploit
        the
        Intellectual Property Rights of the Company. The B Manager shall present
        to the
        A Manager, for its review and approval, any agreement relating to the licensing
        and exploitation of the Intellectual Property Rights and shall modify any
        such
        agreement as requested by the A Manager.

      

      (c)    All
        Intellectual Property Rights of the Company shall be the property of the
        Company
        and not the property of any Member.

      

      6.3    Confidential
        Technology Information.
        During
        the term of this Agreement and thereafter, each Member shall treat the
        Technology and the Company Intellectual Property Rights and all information,
        data, reports, and other records relating to the Technology (collectively,
        the
“Confidential
        Technology Information”),
        regardless of origin, as confidential information of the Company. No Member
        shall disclose or use such Confidential Technology Information without the
        A
        Manager’s and the Class B Member’s prior written consent. Nothing in this
        Agreement shall limit the right of the Company, or the A Manager on behalf
        of
        and in furtherance of the purposes of the Company, to use or disclose any
        Confidential Technology Information to any third party, provided
        that any
        disclosure shall be subject to compliance with Section
        6.3(d)
        below.

      

      (a)    Confidential
        Business Information.
        During
        the term of this Agreement and thereafter, each Member shall treat this
        Agreement and all proprietary business information designated as confidential,
        or which ought to be considered as confidential from its nature or from the
        circumstances surrounding its disclosure, that it receives from another party
        or
        the Company (collectively, the “Confidential
        Business Information”)
        as
        confidential information of the other party or the Company, as the case may
        be,
        and shall not disclose or use such information without the other party’s (or the
        Company’s, as the case may be) prior written consent. Any such permitted
        disclosure shall be subject to compliance with Section
        6.3(d)
        below.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (b)    General
        Exceptions.
        Nothing
        in this Agreement shall prevent the use or disclosure by the recipient of
        any
        Confidential Technology Information or Confidential Business Information
        that:

      

      (1)    the
        recipient can document is or has become generally available (through no fault
        of
        recipient) for disclosure to, and use by, the public without any charge,
        license, or restriction;

      

      (ii)    the
        recipient is permitted to use or disclose pursuant to a written agreement
        between the recipient and the providing party; or

      

      (ii)    the
        recipient is required by law, regulation, or order to disclose, provided
        that the
        recipient shall notify the disclosing party of such law, regulation, or order
        and shall cooperate with the disclosing party in endeavoring to obtain
        confidential treatment for any Confidential Technology Information or
        Confidential Business Information required to be disclosed, including, without
        limitation, making any court or regulatory filings reasonably requested by
        the
        disclosing party.

      

      (c)    Additional
        Confidential Business Information Exceptions.
        In
        addition to the general exceptions listed above, nothing in this Agreement
        shall
        prevent the use or disclosure by the recipient of any Confidential Business
        Information that:

      

      (i)    
the
        recipient can document was already in its possession free of any obligation
        of
        confidence at the time of communication; 

      

      (ii)    the
        recipient can document was independently developed by the recipient;
        or

      

      (iii)   the
        recipient can document was provided by a third party that itself was not
        in
        breach of any confidentiality obligation.

      

      (d)    Nondisclosure
        Procedures.
        Each
        party shall develop and implement such procedures as may be required to prevent
        the inadvertent or negligent disclosure to third parties of Confidential
        Technology Information or another party’s Confidential Business Information, as
        applicable, by its employees, including, but not limited to, requiring each
        of
        its employees having access to the Confidential Technology Information or
        Confidential Business Information under this Agreement to enter into a
        confidentiality agreement no less restrictive than the terms of this
Section
        6.3.
        In the
        event that Confidential Technology Information or Confidential Business
        Information of another party is authorized to be disclosed to a third party,
        the
        disclosing party shall ensure that any third party being granted access to
        any
        confidential information enters into a confidentiality agreement no less
        restrictive than the terms of this Section
        6.3.

      

      ARTICLE
        VII

      DISTRIBUTIONS,
        ALLOCATIONS, AND TAX MATTERS

      

      7.1    Distributions.

      

      (a)    Subject
        to the approval of the A Manager, distributable cash from operations shall
        be
        distributed to the Members periodically. Cash distributions to the Members
        (whether from operations or a sale of all or any portion of the Company’s
        assets) shall be made in accordance with the following:

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (i)    
To
        the
        Class A Members pro rata until the Class A Members have received an amount
        equal
        to their Aggregate Capital Contributions; then

      

      (ii)    100%
        to
        the Class A Members pro rata until they have received an amount representing
        a
        rate of return equal to 12%, compounded annually, on the Aggregate Capital
        Contributions of the Class A Members calculated from the date of contribution
        using the XIRR Function defined in Microsoft Excel; then

      

      (iii)   100%
        to
        the Class B Member until the amount distributed to the Class B Member under
        this
        clause (iii) equals 12.5% of all amounts distributed pursuant to clauses
        (ii)
        and (iii); then

      

      (iv)   87.5%
        to
        the Class A Members pro rata and 12.5% to the Class B Member until the amount
        distributed to the Class A Members represents a return equal to 20%, compounded
        annually, on the Aggregate Capital Contributions of the Class A Members
        calculated from the date of contribution using the XIRR Function defined
        in
        Microsoft Excel; then

      

      (v)    100%
        to
        the Class B Member until the amount distributed to the Class B Member under
        clauses (iii), (iv), and (v) equals 20% of all amounts distributed pursuant
        to
        clauses (ii), (iii), (iv), and (v); then

      

      (vi)   80%
        to
        the Class A Members pro rata and 20% to the Class B Member until the amount
        distributed to the Class A Members represents a return equal to 30%, compounded
        annually, on Aggregate Capital Contributions of the Class A Members calculated
        from the date of contribution using the XIRR Function defined in Microsoft
        Excel; then

      

      (vii)         
        100%
        to
        the Class B Member until the amount distributed to the Class B Member under
        clauses (iii), (iv), (v), (vi), and (vii) equals 25% of all amounts distributed
        pursuant to clauses (ii), (iii), (iv), (v), (vi), and (vii); then

      

      (viii)        
        75%
        to
        the Class A Members pro rata and 25% to the Class B Member until the amount
        distributed to the Class A Members represents a return equal to 60%, compounded
        annually, on the Aggregate Capital Contributions of the Class A Members
        calculated from the date of contribution using the XIRR Function defined
        in
        Microsoft Excel; then

      

      (ix)    50%
        to
        the Class A Members pro rata and 50% to the Class B Member.

       

      For
        these
        purposes, the calculation of the return received by the Class A Members shall
        be
        made prior to reduction for any taxes imposed on the Class A
        Members.

      

      7.2    Restrictions
        on Distributions.
        The
        provisions of this Article VII to the contrary notwithstanding, no distribution
        shall be made (a) if such distribution would violate any contract or agreement
        to which the Company is then a party or any applicable law, rule, regulation,
        order, or directive of any governmental authority then applicable to the
        Company, (b) to the extent that the A Manager, in its sole discretion,
        determines that any amount otherwise distributable should be retained by
        the
        Company to pay, or to establish a reserve for the payment of, any liability
        or
        obligation of the Company, whether liquidated, fixed, contingent, or otherwise,
        or (c) to the extent that the A Manager, in its sole discretion, determines
        that
        the cash available to the Company is insufficient to permit such
        distribution.

      

      7.3    Capital
        Accounts.
        A
        capital account (a “Capital
        Account”)
        shall
        be established and maintained for each Member to which shall be credited
        the
        Capital Contributions made by such Member and such Member’s allocable share of
        Net Income (and items thereof), and Simulated Gain, and from which shall
        be
        deducted distributions to such Member of cash or other property and such
        Member’s allocable share of Net Loss (and items thereof), Simulated Depletion,
        and Simulated Losses. To the extent not provided for in the preceding sentence,
        the Capital Accounts of the Member shall be adjusted and maintained in
        accordance with Treasury Regulations Section 1.704-1(b).

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      7.4    Allocations
        to Capital Accounts.

      

      (a)    Net
        Income and Net Loss.
        Except
        as provided in this Section
        7.4(c),
        Net
        Loss (and items thereof) shall be allocated in a manner such that the Capital
        Account of each Member, immediately after giving effect to such allocation,
        is,
        as nearly as possible, equal (proportionately) to the amount of the
        distributions that would be made to such Member pursuant to Section
        7.1,
        if (i)
        the Company were dissolved and terminated; (ii) its affairs were wound up
        and
        each Company asset was sold for cash equal to its Book Value; (iii) all Company
        liabilities were satisfied (limited with respect to each nonrecourse liability
        to the Book Value of the assets securing such liability); and (iv) the net
        assets of the Company were distributed in accordance with Section 7.1 to
        the
        Members immediately after giving effect to such allocation.

      

      (b)    Net
        Income and Simulated Gain.
        Except
        as provided in Section
        7.4(c),
        Net
        Income (and items thereof) and Simulated Gain shall be allocated (i) first
        to
        the Members in proportion to and in an amount equal to the allocation of
        Net
        Loss under Section
        7.4(a)
        and
        Simulated Depletion and Simulated Loss under Section
        7.(d)
        until
        the aggregate amount of Net Income and Simulated Gain allocated under this
        clause (i) equals the aggregate amount of Net Loss allocated under Section
        7.4(a)
        and
        Simulated Depletion and Simulated Loss allocated under Section
        7.4(d),
        and
        (ii) second in a manner such that the Capital Account of each Member,
        immediately after giving effect to such allocation, is, as nearly as possible,
        equal (proportionately) to the amount of the distributions that would be
        made to
        such Member pursuant to Section
        7.1,
        if (A)
        the Company were dissolved and terminated, (B) its affairs were wound up
        and
        each Company asset was sold for cash equal to its Book Value, (C) all Company
        liabilities were satisfied (limited with respect to each nonrecourse liability
        to the Book Value of the assets securing such liability), and (D) the net
        assets
        of the Company were distributed in accordance with Section
        7.1
        to the
        Members immediately after giving effect to such allocation.

      

      (c)    Allocations
        Relating to Last Fiscal Year.
        Except
        as otherwise provided elsewhere in this Agreement, if upon the dissolution
        and
        termination of the Company pursuant to Article
        XIII
        and
        after all other allocations provided for in Section
        7.4
        have
        been tentatively made as if this Section
        7.4(c)
        were not
        in this Agreement, a distribution to the Members under Article
        XIII
        would be
        different from a distribution to the Members under Section
        7.1,
        then
        Net Income (and items thereof) and Simulated Gain and Net Loss (and items
        thereof), Simulated Loss, and Simulated Depletion for the Fiscal Year in
        which
        the Company dissolves and terminates pursuant to Article
        XIII
        shall be
        allocated among the Members in a manner such that the Capital Account of
        each
        Member, immediately after giving effect to such allocation, is, as nearly
        as
        possible, equal (proportionately) to the amount of the distributions that
        would
        be made to such Member during such last Fiscal Year pursuant to Section
        7.1.
        At the
        request of the A Manager, the B Manager shall apply the principles of this
        Section
        7.4(c)
        to any
        Fiscal Year preceding the Fiscal Year in which the Company dissolves and
        terminates (including through application of Section 761(e) of the Code)
        if
        delaying application of the principles of this Section
        7.4(c)
        would
        likely result in distributions under Article
        XIII
        that are
        materially different from distributions under Section
        7.1
        in the
        Fiscal Year in which the Company dissolves and terminates, provided
        that the
        terms of any application of such principles shall be approved by the A
        Manager.

      

      (d)    Simulated
        Basis, Simulated Depletion, and Simulated Loss.
        The
        Simulated Basis in each oil and gas property owned by the Company on the
        date of
        this Agreement and any Simulated Depletion or Simulated Loss calculated with
        respect thereto shall be allocated among the Members in proportion to their
        Capital Percentages as in effect on the date of this Agreement, or in the
        case
        of properties acquired by the Company after the date of this Agreement, in
        proportion to their Capital Percentages at the time of acquisition of such
        property. For purposes of this Section
        7.4(d),
        “Capital
        Percentage”
means
        for each Member, a percentage of the Book Value of the oil and gas properties
        owned by the Company equal to the percentage calculated by dividing such
        Member’s Capital Contribution by the total Capital Contributions of all
        Members.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      (e)    Allocations
        in Special Circumstances.
        The
        following special allocations shall be made in the following order:

      

      (i)    
Member
        Minimum Gain Chargeback.
        Notwithstanding any other provision of this ARTICLE
        VII,
        if
        there is a net decrease in Company minimum gain (as defined in Treasury
        Regulations Section 1.704-2(b)(2) and (d)) during any Fiscal Year, the Members
        shall be specially allocated items of Company income and gain for such Fiscal
        Year (and, if necessary, subsequent Fiscal Years) in an amount equal to the
        portion of such Member’s share of the net decrease in Company minimum gain,
        determined in accordance with Treasury Regulations Section 1.704-2(f) and
        (g).
        This Section
        7.3(c)(i)
        is
        intended to comply with the minimum gain chargeback requirement in such section
        of the Treasury Regulations and shall be interpreted consistently
        therewith.

      

      (ii)    Minimum
        Gain Chargeback.
        Notwithstanding any other provision of this ARTICLE
        VII,
        if
        there is a net decrease in Member nonrecourse debt minimum gain attributable
        to
        a Member nonrecourse debt (as defined in Treasury Regulations Section
        1.704-2(i)) during any Fiscal Year, each Member shall be specially allocated
        items of Company income and gain for such Fiscal Year (and, if necessary,
        subsequent Fiscal Years) in an amount equal to the portion of such Member’s
        share of the net decrease in Member nonrecourse debt minimum gain attributable
        to such Member’s nonrecourse debt, determined in accordance with Treasury
        Regulations Section 1.704-2(i). This Section
        7.3(c)(ii)
        is
        intended to comply with the minimum gain chargeback requirement in such section
        of the Treasury Regulations and shall be interpreted consistently
        therewith.

      

      (iii)   Qualified
        Income Offset.
        In the
        event any Member unexpectedly receives any adjustments, allocations, or
        distributions described in Treasury Regulations Sections
        1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of Company income and gain shall
        be
        specially allocated to each such Member in an amount and manner sufficient
        to
        eliminate, to the extent required by the Treasury Regulations, the deficit,
        if
        any, in such Member’s Capital Account (as determined under Treasury Regulations
        Section 1.704-1 and after crediting such Capital Account for any amounts
        that
        such Member is obligated to restore or is deemed to restore pursuant to Treasury
        Regulations Section 1.704-2) as quickly as possible; provided
        that
        an
        allocation pursuant to this Section
        7.3(f)(iii)
        shall be
        made only if and to the extent that such Member would have such Capital Account
        deficit after all other allocations provided for in Section
        7.3
        have
        been tentatively made as if this Section
        7.3(f)(iii)
        were not
        in this Agreement. This Section
        7.3(f)(iii)
        is
        intended to comply with the qualified income offset provisions in Treasury
        Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently
        therewith.

      

      (iv)   Gross
        Income Allocation.
        In the
        event any Member has a deficit balance in such Member’s Capital Account (as
        determined after crediting such Capital Account for any amounts that such
        Member
        is obligated to restore or is deemed obligated to restore pursuant to Treasury
        Regulations Section 1.704-2), items of Company income and gain shall be
        specially allocated to such Member in an amount and manner sufficient to
        eliminate such deficit (as so determined) of such Member’s Capital Account as
        quickly as possible; provided
        that
        an
        allocation pursuant to this Section
        7.4(f)(iv)
        shall be
        made only if and to the extent that such Member would have such Capital Account
        deficit (as so determined) after all other allocations provided for in
Section
        7.4
        (other
        than Section
        7.4(f)(iii))
        have
        been tentatively made as if this Section
        7.4(f)(iv)
        were not
        in this Agreement.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      (v)    Loss
        Allocation Limitation.
        No
        allocation of Net Loss (or items thereof) Member shall be made to any Member
        to
        the extent that such allocation would create or increase a deficit in such
        Member’s Capital Account (as determined after debiting such Capital Account for
        the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4),(5)
        and (6) and crediting such Capital Account for any amounts that such Member
        is
        obligated to restore or is deemed obligated to restore pursuant to Treasury
        Regulations Section 1.704-2).

      

      (f)    
Transfer
        of or Change in Interests.
        The
        Managers are authorized to adopt any convention or combination of conventions
        likely to be upheld for federal income tax purposes regarding the allocation
        and/or special allocation of items of Company income, gain, loss, deduction,
        and
        expense with respect to a newly issued Interest, a transferred Interest and
        a
        redeemed Interest. A transferee of an Interest in the Company shall succeed
        to
        the Capital Account of the transferor Member to the extent it relates to
        the
        transferred Interest.

      

      (g)    Syndication
        and Organization Expenses.
        Syndication and organization expenses (as defined in Section 709(a) of the
        Code)
        for any Fiscal Year shall be allocated to the Capital Accounts of the Members
        so
        that, as nearly as possible, the cumulative amount of such expenses allocated
        with respect to such Member corresponds to the amount paid by such
        Member.

      

      7.5    Tax
        Allocations.

      

      (a)    General
        Rules.
        Except
        as otherwise provided in Section
        7.5(b),
        for
        each fiscal period, items of Company income, gain, loss, deduction, and expense
        shall be allocated, for federal, state, and local income tax purposes, among
        the
        Members in the same manner as the Net Income (and items thereof) or Net Loss
        (and items thereof) of which such items are components were allocated pursuant
        to Section
        7.4.

      

      (b)    Section
        613A(c)(7)(D) of the Code.
        The
        deduction for depletion with respect to each separate oil and gas property
        (as
        defined in Section 614 of the Code) shall in accordance with Section
        613A(c)(7)(D) of the Code be computed separately by the Members rather than
        the
        Company. For such purpose, the adjusted tax basis of each such property shall
        be
        allocated among the Members in the same manner in which the Simulated Basis
        of
        such property is allocated. Each Member shall separately keep records of
        its
        share of the adjusted tax basis in each separate oil and gas property, adjust
        such share of the adjusted tax basis for any cost or percentage depletion
        allowable with respect to such property and use such adjusted tax basis in
        the
        computation of its cost depletion or in the computation of its gain or loss
        on
        the disposition of such property by the Company.

      

      (c)    Section
        704(c) of the Code.
        Income,
        gains, losses, and deductions with respect to any property (other than cash)
        contributed or deemed contributed to the capital of the Company shall, solely
        for income tax purposes, be allocated among the Members so as to take account
        of
        any variation between the adjusted basis of such property to the Company
        for
        federal income tax purposes and its Fair Market Value at the time of the
        contribution or deemed contribution in accordance with Section 704(c) of
        the
        Code and the Treasury Regulations promulgated thereunder. Such allocations
        shall
        be made in such manner and utilizing such permissible tax elections as
        determined in the discretion of the A Manager.

      

      If
        there
        is a revaluation of Company property pursuant to the definition of Book Value,
        subsequent allocations of income, gains, losses or deductions with respect
        to
        such property shall be allocated among the Members so as to take account
        of any
        variation between the adjusted tax basis of such property to the Company
        for
        federal income tax purposes and its Fair Market Value in accordance with
        Section
        704(c) of the Code and the Treasury Regulations promulgated thereunder. Such
        allocations shall be made in such manner and utilizing such permissible tax
        elections as determined in the discretion of the A Manager.

      

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

      

      

      (d)    Capital
        Accounts Not Affected.
        Allocations pursuant to this Section
        7.5
        are
        solely for federal, state, and local tax purposes and shall not affect, or
        in
        any way be taken into account in computing, any Member’s Capital Account or
        allocable share of Net Income (or items thereof) or Net Loss (or items
        thereof).

      

      (e)    Tax
        Allocations Binding.
        The
        Members acknowledge that they are aware of the tax consequences of the
        allocations made by this Section
        7.5
        and
        hereby agree to be bound by the provisions of this Section
        7.5
        in
        reporting their respective shares of items of Company income, gain, loss,
        deduction, and expense.

      

      7.6    Determinations
        under
        Article VII.
        All
        matters concerning the computation of Capital Accounts, the allocation of
        items
        of Company income, gain, loss, deduction, and expense for all purposes of
        this
        Agreement and the adoption of any accounting procedures not expressly provided
        for by the terms of this Agreement shall be determined by the B Manager and
        subject to the approval of the A Manager, in the sole discretion of the A
        Manager. Such determinations shall be final and conclusive as to all the
        Members. Without in any way limiting the scope of the foregoing, if and to
        the
        extent that, for income tax purposes, any item of income, gain, loss, deduction,
        or expense of any Member or the Company is constructively attributed to,
        respectively, the Company or any Member, or any contribution to or distribution
        by the Company or any payment by any Member or the Company is recharacterized,
        the B Manager shall specially allocate items of Company income, gain, loss,
        deduction, and expense and/or make correlative adjustments to the Capital
        Accounts of the Members in a manner so that the net amount of income, gain,
        loss, deduction, and expense realized by each relevant party (after taking
        into
        account such special allocations) and the net Capital Account balances of
        the
        Members (after taking into account such special allocations and adjustments)
        shall, as nearly as possible, be equal, respectively, to the amount of income,
        gain, loss, deduction, and expense that would have been realized by each
        relevant party and the Capital Account balances of the Members that would
        have
        existed if such attribution and/or recharacterization and the application
        of
        this sentence of this Section
        7.6
        had not
        occurred. Notwithstanding anything expressed or implied to the contrary in
        this
        Agreement, in the event the A Manager shall determine, in its discretion,
        that
        it is prudent for the B Manager to modify the manner in which the Capital
        Accounts, or any debits or credits thereto, are computed in order to effectuate
        the intended economic sharing arrangement of the Members, the B Manager shall
        make such modification.

      

      7.7    Restoration
        of Negative Capital Accounts.
        Except
        as otherwise required by law, no Member shall have any obligation to the
        Company
        or the other Members or to any other Person, including creditors of the Company,
        to restore any negative balance in its Capital Account.

      

      7.8    Withholding.
        Notwithstanding any other provision of this Agreement, the B Manager is
        authorized to take any action that it determines to be necessary or appropriate
        to cause the Company to comply with any foreign or United States federal,
        state,
        or local withholding or deduction, requirement with respect to any allocation,
        payment, or distribution by the Company to any Member or other Person and
        shall
        inform the A Manager of such action. All amounts so withheld, and, in the
        manner
        determined by the B Manager in its discretion, amounts withheld with respect
        to
        any allocation, payment, or distribution by any Person to the Company, shall
        be
        treated as distributions to the applicable Members under the applicable
        provisions of this Agreement. If any such withholding requirement with respect
        to any Member exceeds the amount distributable to such Member under the
        applicable provision of this Agreement, or if any such withholding requirement
        was not satisfied with respect to any amount previously allocated or distributed
        to such Member, such Member and any successor or assignee with respect to
        such
        Member’s Interest hereby indemnifies and agrees to hold harmless the Managers
        and the Company for such excess amount or such withholding requirement, as
        the
        case may be.

      

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

      

      

      7.9    Tax
        Elections.
        The A
        Manager on behalf of the Company shall make the following
        elections:

      

      (a)    to
        elect
        the accrual method of accounting;

      

      (b)    to
        elect
        to treat all organizational and start-up costs of the Company as deferred
        expenses amortizable over 180 months under Code Section 709;

      

      (c)    the
        calendar year as the Company’s fiscal year if permitted by applicable
        law;

      

      (d)    in
        accordance with Sections 734, 743, and 754 of the Code and applicable Treasury
        Regulations and comparable state law provisions, to adjust basis in the event
        any Interest, or any portion thereof, is transferred in accordance with this
        Agreement or any Company property is distributed to any Member; and

      

      (e)    to
        elect,
        in accordance with Section 263(c) of the Code and applicable regulations
        and
        comparable state law provisions, to deduct as an expense all intangible drilling
        and development costs with respect to productive and non-productive wells
        and
        the preparation of wells for the production of oil and gas.

      

      In
        addition, the B Manager, on behalf of the company, shall make any election
        with
respect
        to such other federal, state, and local tax matters as the A Manager shall
        request, from time to time.

      

      7.10         
        Tax
        Matters Partner.
        The B
        Manager shall be designated the “Tax Matters Partner” under Code
        Section 6231 and shall promptly notify the Members if any tax return or
        report of the Company is audited or if any adjustments are proposed by any
        governmental body. The B Manager shall not make any decision or take any
        action
        as Tax Matters Partner without the consent of the A Manager. In addition,
        the B
        Manager shall promptly furnish to the Members all notices concerning
        administrative or judicial proceedings relating to federal income tax matters
        as
        required under the Code. During the pendency of any such administrative or
        judicial proceeding, the B Manager shall furnish to the Members periodic
        reports, not less often than monthly, concerning the status of any such
        proceeding.
        The B
        Manager shall keep the A Manager informed of any such proceeding and shall
        take
        such action with respect thereto solely with the consent of the A Manager
        and,
        if requested by the A Manager, at the direction of the A Manager. The A Manager
        shall be entitled to participate in any such proceedings.

      

      ARTICLE
        VIII

      FEES
        AND EXPENSES

      

      8.1    Company
        Expenses and Reimbursement.

      

      (a)    The
        Company will bear all Company Expenses and shall reimburse the Members for
        any
        Company Expenses that they fund. Notwithstanding
        the foregoing, if a Member is reimbursed for any Company Expenses under an
        Operating Agreement, the Services Agreement, or any other similar agreement
        with
        the Company, it may not again seek reimbursement under this Section 8.1
        for such
        expenses.

      

      (b)    Except
        as
        provided in the Services Agreement, if any Member, or any of its employees,
        officers, or directors or any Affiliate of any of the foregoing receives
        any
        break-up fees, director’s fees, consulting or advisory fees, operating fees,
        topping fees, commitment fees, success fees, development fees, or other fees
        or
        remuneration, in each case, related to the Project or the licensing, or other
        fees related to any of the Company’s Intellectual Property Rights, such fees
        shall be remitted to the Company, except to the extent otherwise agreed by
        the
        Managers.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        IX

      CERTAIN
        MEMBER
        MATTERS

      

      9.1    Rights
        of the
        Members.
        In
        addition to the other rights specifically set forth herein or by non-waivable
        provisions of applicable law, each Member shall have the right to: (a) have
        the Company books and records kept at the principal office of the Company
        and at
        all reasonable times to inspect any of them and (b) exercise all rights of
        a member under the Act (except to the extent otherwise specifically provided
        for
        herein).

      

      9.2    Limitations
        on Members.
        No
        Member shall have the authority or power in its capacity as a Member to act
        as
        agent for or on behalf of the Company or any other Member, to do any act
        which
        would be binding on the Company or any other Member, or to incur any
        expenditures on behalf of or with respect to the Company. No Manager shall
        hold
        out or represent to any third party that any Member has any such right or
        power
        in its capacity as a Member.

      

      9.3    Liability
        of Members.
        No
        Member shall be liable for the debts, liabilities, contracts, or other
        obligations of the Company, and no Member shall be required to make any loans
        to
        the Company.

      

      9.4    Agreements
        of the Members.
        Each
        Member hereby agrees as follows:

      

      (a)    Further
        Cooperation.
        It will
        promptly execute all certificates and other instruments as shall be reasonably
        necessary for the Company to accomplish all filing, recording, publishing,
        and
        other acts appropriate to comply with all requirements for the formation
        and
        operation of a limited liability company under the laws of the State of Delaware
        and all other jurisdictions where the Company shall propose to conduct
        business.

      

      (b)    Tax
        Position.
        It will
        not adopt any position on its federal income tax returns as filed or amended
        which relate to the Company, or on any request for administrative adjustment,
        that is inconsistent with the Company’s Form 1065, Schedule K-1 as
        filed with the Internal Revenue Service.

      

      (c)    Liens.
        No
        Member may, grant a lien or otherwise pledge, hypothecate, or grant a security
        interest or other encumbrance on any or all of its Interest.

      

      9.5    Representations
        and Warranties of all Members.
        Each
        Member represents and warrants to the Company and every other Member
        that:

      

      (a)    If
        it is
        not a natural person, it is an entity duly formed, validly existing, and
        (if
        applicable) in good standing in the jurisdiction of its formation and has
        all
        power and authority to own its Interests and to enter into and perform its
        obligations under this Agreement, and its execution, delivery, and performance
        of this Agreement has been duly authorized by all necessary action of its
        board
        of directors or other governing authority and its equity owners to the extent
        required.

      

      (b)    It
        has
        duly executed this Agreement, and this Agreement constitutes its valid and
        binding obligation, enforceable in accordance with its terms.

      

      (c)    Its
        execution and delivery of this Agreement and its performance of this Agreement
        do not, and will not, (i) if it is not an individual, violate or conflict
        with
        any provision of its constituent documents, (ii) violate applicable law,
        (iii)
        result in a material violation or breach of, or constitute (with or without
        due
        notice or lapse of time or both) a default (or give rise to any right of
        termination, cancellation, or acceleration) under, any note, bond, indenture,
        lien, mortgage, lease, permit, guaranty, or other agreement, instrument,
        or
        obligation to which it or any of its Affiliates is a party or by which any
        of
        their respective properties may be bound, or (iv) require any material consent,
        approval, authorization, or permission of, or filing with or notification
        to,
        any governmental authority or any other Person.

      

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

      

       

      (d)    It
        is
        acquiring its Interests solely for investment for its own account and not
        for
        distribution or sale to others in connection with any distribution or public
        offering.

      

      (e)    It
        understands and acknowledges that the Interests are being issued pursuant
        to
        exemptions from registration under the Securities Act and exemptions from
        qualification under the securities laws of certain states for transactions
        not
        involving any public offering, and that the Company is relying on the
        representations and warranties included herein.

      

      (f)    
It
        understands that there will not be any public market for the Interests and
        that
        it must bear the economic risk of an investment in the Company for an indefinite
        period of time because (i) its Interests have not been registered under the
        Securities Act or any applicable state securities laws and (ii) it may Transfer,
        in whole or in part, its Interests only in accordance with this Agreement
        and
        then only if its Interests are subsequently registered in accordance with
        the
        provisions of the Securities Act and applicable state securities laws, unless
        registration is not required.

      

      (g)    It
        understands that the Company is not obligated to register the Interests for
        resale under the Securities Act or any applicable state securities
        laws.

      

      (h)    It
        is a
“qualified institutional buyer” within the meaning of rule 144A of the
        Securities and Exchange Commission or an “accredited investor” within the
        meaning of Regulation D of the Securities and Exchange Commission and is
        able to
        bear the economic risk of such an investment in the Company for an indefinite
        period of time, and it has no need for liquidity of this investment, and
        it
        could bear a complete loss of this investment. If it is either a “qualified
        purchaser” within the meaning of the Investment Company Act of 1940 or is an
        entity formed and is being utilized primarily for the purpose of making an
        investment in the Company, each of the shareholders, partners, members, or
        other
        holders of equity or beneficial interests in such member is such a qualified
        purchaser.

      

      (i)    
It
        has
        the knowledge and sophistication to evaluate the risks of investing in the
        Company. It has conducted its own investigation and due diligence into the
        Company and is satisfied that its investment in the Company is appropriate.
        It
        understands and agrees that none of the other Members or their Affiliates,
        or
        the Company, has made or will make any representation or warranty with respect
        to the worthiness, terms, value, or any other aspect of the Company or the
        Interests, and it explicitly disclaims any warranty, express or implied,
        with
        respect to such matters. In addition, it specifically acknowledges, represents,
        and warrants that, except to the extent set forth in this Agreement, it is
        not
        relying on any other Member or its Affiliates (i) for its investigation or
        due
        diligence concerning, or evaluation of, the Company or any related transaction
        or (ii) with respect to tax and other economic considerations involved in
        an
        investment in the Company.

      

      (j)    
No
        portion of the assets being used by it to purchase and hold its Interests
        constitute assets of a plan within the meaning of Section 3(32) of Employee
        Retirement Income Security Act of 1974.

      

      (k)    No
        broker, investment banker, financial advisor, or other Person is entitled
        to any
        broker’s, finder’s, financial advisor’s, or other similar fee or commission in
        connection with the Company based upon arrangements made by or on behalf
        of that
        Member for which the Company, the other Members, or any of their respective
        Affiliates may be liable.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      (l)    
It
        has
        been advised to consult with its attorney regarding all legal and other matters
        concerning an investment in the Company, including the tax consequences of
        participating in the Company, and such Member will look solely to, and rely
        upon, its own advisors with respect to the legal, financial, and tax
        consequences of this investment.

      

      9.6    Additional
        Representations and Warranties of the Class B Member.
        The
        Class B Member represents and warrants to the Company and the Class A Members
        that:

      

      (a)    (i)
        the
        copies of documents and instruments that the Class B Member provided to the
        Class A Members or their representatives prior to the date of this Agreement
        relating to the Project and other activities of the Class B Member and the
        Company conform to the originals and, in the case of agreements, include
        all
        amendments and modifications to them; and (ii) all other information that
        the
        Class B Member provided to the Class A Members or their representatives prior
        to
        the date of this Agreement relating to the Project and other activities of
        the
        Class B Member is true and correct in all material respects and, taken as
        a
        whole, does not omit any information required to make the factual statements
        in
        those materials not misleading in any material respect; provided,
        however,
        that
        (A) in the case of projections, such projections were prepared in good faith
        based on reasonable estimates and assumptions and (B) in the case of materials
        furnished by third parties, the statement in this Section
        9.6
        is
        correct to the best of the knowledge of the Class B Member and its Affiliates
        after due inquiry.

      

      (b)    It
        has
        not breached, nor has it caused the Company to breach any provision of the
        PSA
        or any agreement attached to or incorporated into the PSA between the Execution
        Date (as that term is defined in the PSA), and the date of this
        Agreement.

      

      (c)    Since
        the
        Formation Date the Company has not conducted any business other than the
        entering into the PSA and those agreements attached to or incorporated into
        the
        PSA.

      

      9.7    Anti-Money
        Laundering Provisions.

      

      (a)    Each
        Member hereby agrees to use its reasonable best efforts to ensure
        that:

      

      (i)    
none
        of
        the monies that such Member contributes to the Company shall be derived from,
        or
        related to, any activity that is deemed criminal under United States law;
        and

      

      (ii)    no
        contribution or payment by such Member to the Company, to the extent such
        contribution or payment is within such Member’s control, shall cause the
        Company, or the Members, or the Managers to be in violation of the United
        States
        Bank Secrecy Act, the United States Money Laundering Control Act of 1986,
        or the
        United States International Money Laundering Abatement and Anti-Terrorist
        Financing Act of 2001, in each case, such statute as amended to date and
        any
        successor statute thereto and including all regulations promulgated thereunder
        (the “Anti-Money
        Laundering Laws”).

      

      (b)    Each
        Member: (i) shall promptly notify the Managers if, to the knowledge of such
        Member, such Member has made a contribution to the Company of money derived
        from, or related to, any activity that is deemed criminal under United States
        law or that could cause the Company or any Member to be in violation of the
        Anti-Money Laundering Laws; (ii) shall provide the Managers, promptly upon
        receipt of a Manager’s written request therefor, with any additional information
        regarding such Member, but not its beneficial owner(s), that the Managers
        reasonably deem necessary or advisable in order to determine or ensure
        compliance with all applicable laws, regulations, and administrative
        pronouncements concerning money laundering and other criminal activities;
        and
        (iii) understands and agrees that if, at any time, such Member has made a
        contribution to the Company of money derived from, or related to, any activity
        that is deemed criminal under United States law or that could cause the Company
        or any Member or its Affiliates to be in violation of the Anti-Money Laundering
        Laws, or if otherwise required by any applicable law or regulation related
        to
        money laundering or other criminal activities, the Member may take appropriate
        actions to ensure that the Company and the other Members and their Affiliates
        are in compliance with all such applicable laws, regulations, and
        pronouncements.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (c)    Each
        Member acknowledges and agrees that (i) the Company, with the approval of
        the
        Managers, may release confidential information regarding such Member to
        governmental authorities if the Managers determine that releasing such
        information is reasonably required in light of the Anti-Money Laundering
        Laws,
        and (ii) the Managers, without the consent of any Member and notwithstanding
        any
        other provision of this Agreement, may amend any provision of this Agreement
        in
        order to effectuate the intent of this Section
        9.7(c),
        provided
        that the
        Managers provide each Member with notice of such amendment.

      

      ARTICLE
        X

      COVENANTS

      

      10.1         
        Conduct
        of Business.
        During
        the period from the date hereof to the Closing Date except (i) as contemplated
        by this Agreement, (ii) as required by applicable law or the PSA, or (iii)
        with
        the consent of the A Manager, the B Manager shall conduct its business and
        cause
        the Company to conduct its business honestly, in good faith, in the best
        interests of the Company, in compliance with the best practices customary
        in the
        industry and to use its commercially reasonable best efforts to preserve
        intact
        its business organizations and relationships with third parties and to keep
        available the services of their present officers and employees. Without limiting
        the generality of the foregoing, during the period from the date hereof to
        the
        Closing Date, the B Manager shall cause the Company not to:

      

      (a)    adopt
        or
        propose any change in its respective certificates of incorporation, bylaws,
        or
        other constitutional documents, except for changes which would not have an
        adverse impact on the Class A Members or the Company;

      

      (b)    acquire,
        sell, transfer, lease, or otherwise dispose of any assets of the
        Company;

      

      (c)    make
        any
        material change in any financial reporting or accounting policy or accounting
        practice regarding itself or the Company, other than such changes required
        by
        law or GAAP;

      

      (d)    incur,
        except in the ordinary course of business consistent with past practices,
        any
        encumbrance on any assets of the Company;

      

      (e)    cause
        the
        Company to issue or sell any new debt securities, incur any long-term
        indebtedness, or enter into any new credit facility;

      

      (f)    
merge
        or
        consolidate with any other Person or acquire any other Person or a business,
        division, or product line of any other Person; or

      

      (g)    agree
        or
        commit to do any of the foregoing.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      10.2         
        Notices.
        The
        Class B Member agrees to forward to the A Manager within two days of receipt
        any
        notice it receives between the date of this Agreement and the Closing Date
        that
        is related to the Project, the PSA, or any agreement attached to or incorporated
        into the PSA.

      

      10.3         
        Further
        Assurances.
        Each of
        the Members agrees to use its reasonable best efforts before and after the
        Closing Date to take or cause to be taken all action, to do or cause to be
        done,
        and to assist and cooperate with the other parties hereto in doing, all things
        necessary, proper, or advisable under applicable laws to consummate and make
        effective, in the most expeditious manner practicable, the transactions
        contemplated by this Agreement, including, but not limited to, (a) the
        satisfaction of the conditions precedent to the obligations of any of the
        parties hereto; and (b) the execution and delivery of such instruments, and
        the
        taking of such other actions, as the other parties hereto may reasonably
        require
        in order to carry out the intent of this Agreement.

      

      ARTICLE
        XI

      TRANSFERS
        OF INTERESTS AND WITHDRAWALS

      

      11.1         
        General
        Transfer Provisions.

      

      (a)    Class
        A Member Transfer.
        Any
        Class A Member shall be entitled to transfer all or a portion of its Interests
        in the Company at any time.

      

      (b)    Class
        B Member Transfer.
        The
        Class B Member shall not be entitled to transfer its Interests in the Company
        without the consent of the A Manager which consent may be withheld for any
        reason whatsoever or for no reason.

      

      (c)    In
        General.
        Notwithstanding any other provision of this Agreement, no Member may Transfer
        in
        any manner whatsoever all or any part of its Interest unless (i) such Member
        has
        fully complied with the provisions of this ARTICLE
        XI
        for the
        Transfer, (ii) after giving effect thereto, such Transfer would not cause
        the
        Company to be classified as other than a partnership for U.S. federal income
        tax
        purposes, and (iii) such Transfer would not result in a violation of
        applicable law, including U.S. federal or state securities laws, or any term
        or
        condition of this Agreement. Any purported Transfer by a Member or any Assignee
        that is not in compliance with this Agreement is hereby declared to be null
        and
        void and of no force or effect whatsoever.

      

      (d)    Substitute
        Members.
        No
        transferee of a Member’s Interest who is not already a Member shall become a
        substitute member of the Company in place of the transferor unless and
        until:

      

      (i)    
Such
        Transfer is in compliance with the terms of this ARTICLE
        XI;

      

      (ii)    the
        transferee has executed an instrument in form and substance reasonably
        satisfactory to the A Manager accepting and adopting, and agreeing to be
        bound
        by, the terms and provisions of the Certificate and this Agreement;
        and

      

      (iii)          
        the
        transferee has caused to be paid all reasonable expenses of the Company in
        connection with the admission of the transferee as a substitute member of
        the
        Company.

      

      Upon
        satisfaction of all the foregoing conditions with respect to a particular
        transferee, the Company shall cause its books and records to reflect the
        admission of the transferee as a substitute member of the Company. If an
        Interest is transferred to an existing Member, the Company will adjust its
        books
        and records to reflect the Interest so transferred.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      (e)    Effect
        of Admission as a Substitute Member.
        A
        transferee who has become a substitute member of the Company has all the
        rights,
        powers, and benefits of, and is subject to the obligations, restrictions,
        and
        liabilities of the transferor Member under, the Certificate, this Agreement,
        and
        the Act. Upon admission of a transferee as a substitute member of the Company,
        the transferor of the Interest so held by the substitute member of the Company
        shall cease to be a Member of the Company; provided,
        however,
        that the
        transferor of the Membership Interest shall continue to be bound by the
        provisions of Section
        6.3
        for a
        period of two years following such transfer.

      

      (f)    
Consent.
        Each
        Member hereby agrees that upon satisfaction of the terms and conditions of
        Section
        11.1(d)
        with
        respect to any proposed Transfer, the transferee may be admitted as a Member
        without any further action by a Member hereunder.

      

      (g)    Additional
        Members.
        Any
        Person acquiring Interests from the Company in accordance with the terms
        of this
        Agreement may become an additional member of the Company for such consideration
        and on such terms, provided that such additional member of the Company complies
        with all the requirements of a transferee under Section
        11.1(d).

      

      11.2         
        Tag-Along
        Rights.
        All
        rights provided for in this Section 11.2 shall be subject to any rights granted
        or established under the PSA and any agreements attached to or incorporated
        into
        the PSA.

      

      (a)    Rights
        to Participate in Transfer.
        If the
        Class A Members (the “Transferring
        Class A Members”)
        propose to sell in one transaction or a series of related transactions, Class
        A
        Interests representing more than 50% of the then-outstanding Class A Interests,
        other than any sale to an Affiliate of the Class A Members, and Section
        11.3
        of this
        Agreement does not apply (such proposed sale herein referred to as a
“Tag-Along
        Transfer”),
        then
        the Class B Member (the “Tag-Along
        Member”)
        shall
        have the option to participate in such sale as set forth in this Section
        11.2.

      

      (b)    In
        the
        event of a proposed Tag-Along Transfer:

      

      (i)    
The
        Transferring Class A Members shall provide the Tag-Along Member with a written
        notice of the terms and conditions of such proposed Tag-Along Transfer (
        the
“Tag-Along
        Notice”),
        at
        least ten (10) Business Days prior to the consummation of such proposed
        Tag-Along Transfer and offer the Tag-Along Member the opportunity to participate
        in such Tag-Along Transfer on the terms and conditions set forth in this
        Section
        11.2.

      

      (ii)    If
        the
        proposed purchaser is willing to increase its offer price to take into account
        any Class B Interests proposed to be sold by the Tag-Along Member pursuant
        to
        this Section
        11.2,
        the
        Tag-Along Member shall have the option to sell its Pro Rata Portion (as defined
        below) of its Class B Interests at a price equal to the amount that would
        be
        distributed with respect to such Pro Rata Portion of its Class B Interests
        upon
        a hypothetical liquidation of the Company based on the valuation of the Company
        implied by the consideration to be paid for such Class A Interests in such
        Tag-Along Transfer (with respect to each Class B Interest, the “Class
        B Purchase Price”)
        and
        otherwise on the same terms as the Class A Interest proposed to be sold by
        the
        Transferring Class A Members in such Tag-Along Transfer in accordance with
        the
        terms set forth in this Section
        11.2.
        The
“Pro-Rata
        Portion”
of
        the
        Tag-Along Member’s Class B Interest shall be the percentage designated by
        the Tag-Along Member; provided,
        however,
        in no
        event shall the Pro-Rata Portion exceed the product of (x) such Tag-Along
        Member’s Class B Interest and (y) a fraction, the numerator of which
        is the percentage of Class A Interests proposed to be Transferred by the
        Transferring Class A Members in such Tag-Along Transfer and the denominator
        of which is the total percentage of Class A Interests beneficially owned by
        the Transferring Class A Members immediately prior to Transferring such
        Class A Interests.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      (iii)   If
        the
        proposed purchaser is not willing to increase its offer price to take into
        account the additional Class B Interests it will also receive in such Tag-Along
        Transfer, then each of the Transferring Class A Members and the Tag-Along
        Member
        shall receive that amount consisting of the product of (x) the amount the
        proposed purchaser is willing to pay and (y) a fraction, the numerator of
        which
        is the amount each such Member would have received if the purchaser had
        increased its offer price as contemplated in Section
        11.2(b)(ii)
        above
        and the denominator of which is the aggregate amount that all the Members
        would
        have received if the purchaser had increased its offer price as contemplated
        in
Section
        11.2(b)(ii).
        The
        percentage of its Interests that each of the Transferring Class A Members
        and
        the Tag-Along Member sell will thus be proportionately reduced in accordance
        with this Section
        11.2(b)(iii)
        such
        that each will sell that percentage which is a fraction, the numerator of
        which
        is the amount such Member would have received under Section
        11.2(b)(ii)
        and the
        denominator of which is the amount the proposed purchaser would pay under
        Section
        11.2(b)(ii).

      

      (c)    The
        Tag-Along Notice shall identify the proposed transferee, the aggregate amount
        of
        all Class A Interests to be sold by the Transferring Class A Members
        in the Tag-Along Transfer, the Pro Rata Portion of the Tag-Along Member’s
        Class B Interest which such Tag-Along Member shall be entitled to Transfer
        in such Tag-Along Transfer, the Class B Purchase Price, to whom the
        Tag-Along Response Notice should be given, and all other material terms and
        conditions of the proposed Tag-Along Transfer. From the date of the Tag-Along
        Notice, the Tag-Along Member shall have the right (a “Tag-Along
        Right”),
        exercisable by written notice (the “Tag-Along
        Response Notice”)
        given
        to the Person identified in the Tag-Along Notice within ten (10) Business
        Days
        from the date of the Tag-Along Notice (the “Tag-Along
        Response Notice Period”),
        to
        request that the Transferring Class A Members participating in such
        Tag-Along Transfer include in the proposed Transfer the Class B Interests
        held by the Tag-Along Member (up to its Pro Rata Portion) as is specified
        in
        such Tag-Along Response Notice at the same price and on the same terms and
        conditions set forth in the Tag Along Notice.

      

      (d)    Delivery
        of a Tag-Along Response Notice by the Tag-Along Member to the Person identified
        in the Tag-Along Notice pursuant to Section 11.2(b)
        shall
        constitute an irrevocable election by such Tag-Along Member to sell the
        Interests beneficially owned by it as is specified in such Tag-Along Response
        Notice in such Tag-Along Transfer. If, at the end of a one hundred and eighty
        (180) day period after such delivery, the Tag-Along Transfer has not been
        consummated on substantially the same terms and conditions set forth in the
        Tag-Along Notice, all restrictions on Transfers of Interests contained in
        this
        Agreement or otherwise applicable at such time with respect to Interests
        owned
        by the Tag-Along Member shall continue to be in effect.

      

      (e)    If,
        at
        the termination of the Tag-Along Response Notice Period, the Tag-Along Member
        shall not have exercised its Tag-Along Right by providing the Person identified
        in the Tag-Along Notice with a Tag-Along Response Notice, the Tag-Along Member
        shall be deemed to have waived its Tag-Along Right with respect to Transferring
        its Interest pursuant to such Tag-Along Transfer.

      

      (f)    
The
        Person identified in the Tag-Along Notice may sell, on behalf of the
        Transferring Class A Members and the Tag-Along Member, if such Member
        exercises its Tag-Along Right pursuant to this Section 11.2,
        the
        Interests entitled to be Transferred in the Tag-Along Transfer on the terms
        and
        conditions set forth in the Tag-Along Notice within ninety (90) days of the
        date
        on which Tag-Along Rights shall have been waived or exercised.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      (g)    The
        Class
        A Members shall not consummate any proposed Tag-Along Transfer without
        compliance with this Section
        11.2,
        and the
        Company shall not recognize or give effect to any purported Tag-Along Transfer
        of any Interests not made in compliance with this Section
        11.2.

      

      (h)    To
        the
        extent there is to be granted any indemnification or other post-closing
        liability assumed in connection with a Tag-Along Transfer, the selling Members
        shall do so severally and not jointly.

      

      11.3          Drag-Along
        Rights.
        All
        rights provided for in this Section 11.3 shall be subject to any rights granted
        or established under the PSA and any agreements attached to or incorporated
        into
        the PSA.

      

      (a)    If
        the
        Class A Members propose to Transfer all of their Interests to any Person
        and
        intend to exercise their right under this Section
        11.3
        (the
“Drag-Along
        Rights”)
        to
        include all Class B Interests in the Transfer (a “Drag-Along
        Transfer”),
        then
        the Class A Members will promptly provide the Class B Member written notice
        (a
“Drag-Along
        Transfer Notice”)
        of
        such proposed Drag-Along Transfer (a “Proposed
        Drag-Along Transfer”)
        and
        all of the terms of the Proposed Drag-Along Transfer as of the date of such
        Drag-Along Transfer Notice. The Class A Members shall not consummate any
        Proposed Drag-Along Transfer without compliance with this Section
        11.3,
        and the
        Company shall not recognize or give effect to any purported Drag-Along Transfer
        of any Interests not made in compliance with this Section
        11.3.

      

      (b)    Interests
        subject to a Drag-Along Transfer Notice will be included in a proposed
        Drag-Along Transfer pursuant hereto on the same terms and subject to the
        same
        conditions applicable to the Interests which the Class A Members propose
        to
        Transfer in the proposed Drag-Along Transfer. Such terms and conditions shall
        be
        determined in the sole discretion of the Class A Members.

      

      (c)    The
        proceeds of any sale pursuant to this Section
        11.3
        shall be
        apportioned in accordance with Section
        7.1.

      

      (d)    To
        the
        extent there is to be granted any indemnification or other post closing
        liability assumed in connection with a Drag-Along Transfer, the selling Members
        shall do so severally and not jointly.

       

      11.4          Assignee’s
        Rights.

      

      (a)    An
        Assignee shall not be entitled to any of the rights (including voting rights)
        granted to a Member hereunder or under the Act, other than the right to receive
        the share of distributions and any other items attributable to a Member’s
        Interest to which its assignor would otherwise be entitled.

      

      (b)    Any
        Member that Transfers all of its Interest in compliance with the provisions
        of
        this Agreement shall cease to be a Member.

      

      11.5          Withdrawal
        by a
        Member.
        No
        Member shall be entitled to (a) withdraw from the Company, except upon the
        Transfer by the Member of all of its Interest and the substitution of that
        Member’s assignee as a Member of the Company in accordance with this
ARTICLE
        XI,
        or
        (b) the return of its Capital Contributions, except to the extent expressly
        provided for in this Agreement.

      

      11.6          Removal
        of the Class B Member for Cause
        or
        Death, Disability, or Voluntary Termination.

       

      (a)    Removal
        for Cause.
        Subject
        to the provisions hereof, the A Manager may remove the Class B Member for
        Cause
        at any time upon notice to the Class B Member or in the event of the Bankruptcy
        of the Class B Member. The A Manager shall give written notice to the Class
        B
        Member of such removal. Upon the removal of the Class B Member as a Member
        of
        the Company, the Class B Member shall forfeit its Interest in the Company
        without the payment of any consideration in respect thereof and shall be
        entitled to no further distributions with respect to its Interest; provided,
        however, if the Class B Member is removed for Cause as provided in Section
        11.6(c)(i)(B),
        the
        Class B Member shall be entitled to a distribution equal to the amount it
        would
        have received if the A Manager had elected to make a distribution pursuant
        to
Section
        7.1
        on the
        date the Class A Member gave written notice of removal as provided in
        this
        Section 11.6(a).
        Following removal for Cause as provided in this Section
        11.6(a),
        the
        Class B Member shall have no further rights against the Company or any of
        its
        Members or Managers or any Affiliates of any of the foregoing.

       

      
        
          
          

        

        
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      (b)    Removal
        for Death, Disability. or Voluntary Termination.
        Upon
        the occurrence of Death, Disability, or Voluntary Termination, the A Manager
        may
        elect to reduce the Interest of the Class B Member in the Company upon notice
        to
        the Class B Member; provided, however, the A Manager shall discuss the
        possibility of a suitable replacement for such Person with the Class B Member,
        and the A Manager shall not unreasonably refuse such replacement. If the
        A
        Manager makes an election to reduce the Interest of the Class B Member, the
        amounts distributable to the Class B Member pursuant to Section
        7.1
        shall be
        reduced as set forth in Appendix A.

      

      (c)    “Cause”
        and “Death, Disability, or Voluntary Termination” Defined.
        As
        used
        in this Agreement, “Cause”
shall
        mean the occurrence of any of the following by any of Michael Piazza, Eric
        Hanlon, Fred Stein, or their replacements, the Class B Member, the B Manager
        (as
        long as the B Manager is Ignis or one of its Affiliates), any of their officers,
        or any employee of or independent contractor/consultant to Ignis or any of
        its
        Affiliates whose aggregate cash and non-cash compensation from Ignis or any
        of
        its Affiliates exceeds $150,000 per year: (i) the conviction or the entry
        of a
        nolo contendere plea by any of the foregoing with respect to a felony, crime
        of
        moral turpitude, or a criminal violation of any federal, state, or foreign
        securities laws; provided, however, that if such conviction or plea relates
        to
        activities that are unrelated to the Company or its business, such conviction
        or
        plea shall not constitute “Cause” unless the A Manager determines in good faith
        that such conviction or the particular circumstances relating thereto could
        reasonably be expected to result in (A) harm to the Company or the A Members
        or
        any of their Affiliates or (B) harm to the reputation of the Company or the
        A
        Members or any of their Affiliates or employees; (ii) the commission by any
        of
        the foregoing of fraud, bad faith, willful or intentional misconduct, or
        gross
        negligence in the performance of its duties and obligations hereunder (or,
        in
        the case of officers and directors, the duties and obligations of the Class
        B
        Member or the B Manager); (iii) a material breach by any of the foregoing
        in the
        performance or observation of any other material agreement, covenant, term,
        condition, or obligation hereunder (except in the case of clauses (iv), (v),
        (vi), and (vii) of Section
        4.4(a),
        which
        shall require a willful and material breach of this Agreement); (iv) the
        Transfer or attempted Transfer by the Class B Member of its Interest in
        violation of this Agreement; (v) the termination of employment of Michael
        Piazza
        or, in the case of Fred Stein, the independent contractor/consultant
        relationship (unless replaced by an employment relationship) or employment
        with
        the Class B Member, other than as a result of Death, Disability, or Voluntary
        Termination, or (vi) the termination of the independent contractor/consultant
        relationship of Eric Hanlon (whether directly or through Lifestyles Integration,
        Inc., (provided
        that a
        majority of the equity interests in Lifestyles Integration, Inc. are owned
        by
        Eric Hanlon and his spouse) unless replaced with an employment relationship)
        or
        employment with the Class B Member, other than as a result of Death, Disability,
        or Voluntary Termination of Eric Hanlon. As used in this Agreement,
“Death,
        Disability, or Voluntary Termination”
shall
        mean (a) the occurrence of the death of Michael Piazza, Eric Hanlon, or Fred
        Stein; (b) the termination of employment of Michael Piazza or, in the case
        of
        Fred Stein, employment or the independent contractor/consultant relationship,
        with the Class B Member (whether initiated by such Person or not) at a time
        that
        such Person is subject to a Disability (as defined herein); (c) the termination
        of employment or the independent contractor/consultant relationship of Eric
        Hanlon (whether directly or through Lifestyles Integration, Inc. (provided
        that a
        majority of the equity interests in Lifestyles Integration, Inc. are owned
        by
        Eric Hanlon and his spouse)) with the Class B Member (whether initiated by
        such
        Person or not) at a time that such Person is subject to a Disability; (d)
        the
        voluntary termination of employment of Michael Piazza or, in the case of
        Fred
        Stein, the independent contractor/consultant relationship (unless replaced
        by an
        employment relationship) or employment with the Class B Member; or (e) the
        voluntary termination of the independent contractor/consultant relationship
        with
        Eric Hanlon (whether directly or through Lifestyles Integration, Inc.,
        (provided
        that a
        majority of the equity interests in Lifestyles Integration, Inc. are owned
        by
        Eric Hanlon and his spouse) unless replaced by an employment relationship)
        or
        employment with the Class B Member.

       

      
        
          
          

        

        
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      ARTICLE
        XII

      BOOKS,
        RECORDS, REPORTS, BANK ACCOUNTS

      

      12.1          Books
        and Records.
        Except
        as may otherwise be required by this Agreement, the B Manager shall keep
        books
        of account in accordance with GAAP and in accordance with the terms of this
        Agreement. Such books shall be maintained at the principal office of the
        Company
        and shall be maintained for review by the Members and their representatives
        at
        their respective expense during the term of the Company and for a period
        of four
        years thereafter. The calendar year shall be selected as the accounting year
        of
        the Company, and the books of account shall be maintained on an accrual basis.
        Upon request, the B Manager shall supply to the Members information reasonably
        requested regarding the Company or its activities. During ordinary business
        hours, the Members and their authorized agents and representatives shall
        have
        reasonable access to all books, records, and materials in the Company’s offices
        regarding the Company and its activities.

      

      12.2          Reports
        and Opinions.
        The B
        Manager shall deliver to the Members, the following financial statements,
        reports, legal opinions, and other information at the times indicated
        below:

      

      (a)    Accounting
        Reports.

      

      (i)    
Unless
        otherwise directed by the A Manager, within 120 days after the end of each
        Fiscal Year, the B Manager shall cause the Company’s independent certified
        public accountants to prepare and deliver to each Member an audited financial
        report for such Fiscal Year, prepared in accordance with GAAP, setting forth:
        (A) a statement of assets, liabilities, and members’ equity of the Company
        as of the end of such Fiscal Year, (B) a statement of earnings for such
        Fiscal Year; and (C) a statement of cash flows for such Fiscal Year, and
        any other information which the Class B Manager shall deem necessary, desirable,
        or appropriate, together with a statement of each Member’s Capital Account. The
        independent certified public accountants for the Company shall be a firm
        of
        independent certified public accountants selected by the A Manager.

      

      (ii)    Unless
        otherwise directed by the A Manager, within 45 days after the end of each
        of the
        Company’s Fiscal Quarters in each Fiscal Year, the B Manager shall cause to be
        prepared and delivered to each Member an unaudited financial report for such
        Fiscal Quarter, prepared in accordance with GAAP, setting forth: (A) a
        statement of assets, liabilities, and members’ equity of the Company as of the
        end of such Fiscal Quarter, (B) a statement of earnings for such Fiscal
        Quarter, and (C) a statement of cash flows for such Fiscal Quarter,
        together with a statement of each Member’s Capital Account.

      

      (b)    Other
        Reports and Opinions.

      

      (i)    
Annual
        tax reporting information, as set forth in Section 12.3.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      (ii)    Unless
        otherwise directed by the A Manager, within 5 Business Days following receipt
        of
        WBO’s monthly accounting under the Operating Agreements, the B Manager shall
        cause to be prepared and delivered to each Member a report for such month,
        setting forth: (A) a statement of cash flows for such month, together with
        a
        statement of each Member’s Capital Account, (B) a description of any deviations
        or variation of the monthly activity from the Plan or the budget for such
        month,
        (C) a description of any unanticipated developments for such month, (D) any
        other material information, and (E) any other information requested by the
        A
        Manager.

      

      (iii)   Such
        other reports and financial statements as the A Manager may require from
        time to
        time.

      

      12.3          Tax
        Returns; Tax Matters Partner.
        The
        Class B Manager shall cause to be prepared and shall timely file all federal,
        state, and local income and other tax returns and reports as may be required
        as
        a result of the business of the Company. The B Manager shall use its
        commercially reasonable efforts to (a) provide the Members a good faith
        estimate of the Members’ allocable shares of taxable income, loss, gain, and
        credits on or before April 1 of each year, (b) provide to each Member
        a copy of the federal income tax return it intends to file on or before
        June 15 of each year, and (c) furnish to each Member its
        Schedule K-1 to Form 1065 on or before June 15 of each year, and
        (d) file the Company’s federal income tax return on or before June 15
        of each year; provided,
        however,
        in no
        event shall the B Manager deliver the information set forth in this
        Section 12.3
        later
        than August 1 of each year.

      

      12.4          Bank
        Accounts.
        The B
        Manager shall maintain one or more accounts in the name of the Company in
        one or
        more banks, which accounts shall be used for the payment of expenditures
        incurred by the Company in connection with the business of the Company and
        in
        which shall be deposited any and all receipts of the Company. All amounts
        shall
        be and shall remain the property of the Company and shall be received, held,
        and
        disbursed by the B Manager only for the purposes specified in this Agreement.
        The A Manager shall receive copies of any statements received by the Company
        with respect to any accounts maintained by the Company. There shall not be
        deposited in any of such accounts any funds other than funds belonging to
        the
        Company, and no other funds shall in any way be commingled with such
        funds.

      

      ARTICLE
        XIII

      DISSOLUTION,
        LIQUIDATION, AND TERMINATION

      

      13.1          Dissolution.
        The
        Company shall be dissolved upon the occurrence of any of the following (each,
        an
“Event
        of Dissolution”):

      

      (a)    determination
        by the Class A Members to dissolve the Company;

      

      (b)    the
        sale
        or other disposition of all or substantially all of the Company’s
        assets
        unless
        otherwise determined by the A Manager; or

      

      (c)    the
        entry
        of a judicial order dissolving the Company.

      

      13.2          Winding-Up.
        Upon
        the occurrence of an Event of Dissolution, the Company shall be dissolved
        and
        wound-up. In connection with the dissolution and winding-up of the Company,
        a
        liquidator or other representative (the “Liquidation
        Representative”)
        appointed by the Managers shall proceed with the sale or liquidation of all
        of
        the assets of the Company (including the conversion to cash or cash equivalents
        of its notes or accounts receivable) and shall apply and distribute the proceeds
        of such sale or liquidation in the following order of priority, unless otherwise
        required by mandatory provisions of applicable law:

      

      
        
          
            
            

          

          
            30

            
              

            

          

          
            
            

          

        

      

       

      (a)    first,
        to pay
        (or to make provision for payment) in satisfaction of all obligations of
        the
        Company for all expenses of such liquidation;

      

      (b)    second,
        to pay
        (or to make provision for the payment of) all creditors of the Company
        (including Members who are creditors of the Company) in the order of priority
        provided by law or otherwise, in satisfaction of all debts, liabilities,
        or
        obligations of the Company due such creditors;

      

      (c)    third,
        to the
        establishment of any reserve which the Liquidation Representative may deem
        reasonably necessary for any contingent or unforeseen liabilities or obligations
        of the Company (such reserve may be paid over by the Liquidation Representative
        to an escrow agent acceptable to the Liquidation Representative, to be held
        for
        disbursement in payment of any of the aforementioned liabilities and, at
        the
        expiration of such period as shall be deemed advisable by the Liquidation
        Representative for distribution of the balance in the manner hereinafter
        provided in this Section
        13.2);
        and

      

      (d)    fourth,
        after
        the payment (or the provision for payment) of all debts, liabilities, and
        obligations of the Company in accordance with each of the clauses above,
        to the
        Members or their legal representatives in accordance with the positive balances
        in their respective Capital Accounts, after taking into account all adjustments
        to Capital Accounts for all periods, no later than the end of the Fiscal
        Year in
        which the Event of Dissolution occurs or, if later, within ninety (90) days
        after the date of the liquidation of the Company.

      

      13.3          Distributions
        in Cash or in Kind or a Winding-Up.
        Upon
        dissolution, the Liquidation Representative may in its sole and absolute
        discretion (a) liquidate all or a portion of the Company assets and apply
        the
        proceeds of such liquidation in the manner set forth in Section 13.2 and/or
        (b)
        hire independent appraisers to appraise the value of Company assets not sold
        or
        otherwise disposed of (the cost of such appraisal to be considered a Company
        Expense) or determine the Book Value of such assets, and allocate any unrealized
        gain or loss determined by such appraisal to the Members respective Capital
        Accounts as though the properties in question had been sold on the date of
        distribution and, after giving effect to any such adjustment, distribute
        said
        assets in the manner set forth in Section 13.2; provided
        that the
        Liquidation Representative shall in good faith attempt to liquidate sufficient
        Company assets to satisfy in cash the debts and liabilities described in
        Section
        13.2.

      

      If
        a
        Member shall, upon the advice of counsel, determine that there is a reasonable
        likelihood that any distribution in kind of an asset would cause such Member
        to
        be in violation of any law, regulation, or order, such Member and the
        Liquidation Representative shall each use its reasonable best efforts to
        make
        alternative arrangements for the sale or transfer into an escrow account
        of any
        such distribution on mutually agreeable terms.

      

      13.4          Time
        for Liquidation.
        A
        reasonable amount of time shall be allowed for the orderly liquidation of
        the
        assets of the Company and the discharge of liabilities to creditors so as
        to
        enable the Liquidation Representative to minimize the losses attendant upon
        such
        liquidation.

      

      13.5          Cancellation
        of Certificate.
        Upon the
        completion of the distribution of Company assets as provided herein, the
        Company
        shall be terminated, and the Liquidation Representative (or the Members if
        necessary) shall cause the cancellation of the Certificate of the Company
        and
        shall take such other actions as may be necessary to terminate the
        Company.

       

      
        
          
          

        

        
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      ARTICLE
        XIV

      RIGHTS
        OF FIRST OFFER

      

      Subject
        to any prior obligations of the Class B Member to Cornell Capital Partners,
        LP,
        for two years following the date of this Agreement, the Class B Member and
        its
        Affiliates shall not sell any Security or enter into any financing arrangement,
        whether it be for debt or equity (including, without limitation, any hybrid
        or
        derivative of either debt or equity), without first submitting a written
        offer
        of such Security or financing arrangement to Silver Point. If Silver Point
        declines such offer in writing, the Class B Member and/or its Affiliates,
        as the
        case may be, may enter into such sale of Securities or financing arrangement
        if,
        but only if, on terms no less favorable to the Class B Member than the terms
        declined by Silver Point.

      

      ARTICLE
        XV

      AMI
        ACTIVITIES

      

      15.1          Acreage
        Purchase Limitation.
        The
        Class B Member shall not, and it shall cause each of its Affiliates not to,
        directly or indirectly, engage in or become Financially Interested in any
        Person
        that engages directly or indirectly in a Restricted Business in the portion
        of
        the AMI defined in the Operating Agreement attached to the PSA (the
“AMI”)
        until
        the Company has satisfied all additional acreage purchase obligations under
        the
        PSA.

      

      15.2          AMI
        Right of First Offer.
        After
        the Company has satisfied all additional acreage purchase obligations under
        the
        PSA, the Class B Member shall not, and it shall cause each of its Affiliates
        not
        to, directly or indirectly, engage in or become Financially Interested in
        any
        Person that engages directly or indirectly in a Restricted Business in the
        AMI,
        unless the Class B Member first notifies the A Manager in writing of such
        opportunity and offers (or causes such Affiliate to offer) the Company in
        writing such opportunity to engage in or become Financially Interested in
        such
        Restricted Business on the terms and conditions available to the Class B
        Member.

      

      15.3          Pursuit
        of Opportunity.
        As soon
        as practicable, but in any event, within 15 days after receipt of such
        notification pursuant to Section 15.2, the A Manager shall notify the Class
        B
        Member that either (a) the A Manager has determined to cause the Company to
        pursue such opportunity or (b) the A Manager has determined not to cause
        the
        Company to pursue such opportunity. If the A Manager notifies the Class B
        Member
        that it has determined not to cause the Company to pursue such opportunity,
        or
        if having provided the notice contemplated in clause (a) of the preceding
        sentence, the Company ceases to actively pursue such opportunity, the Class
        B
        Member or its Affiliate shall be free to engage in such Restricted Business
        or
        become Financially Interested in such Person, provided,
        however,
        that
        during the 18-month period after the Company has satisfied all additional
        acreage purchase obligations under the PSA, the Class B Member shall not,
        and it
        shall cause each of its Affiliates not to, directly or indirectly, engage
        in
        such Restricted Business or become Financially Interested in such Person
        unless
        the A Manager and the Class B Member reach a mutually acceptable agreement
        that
        would protect the interests of the Company and enable the Class B Member
        or its
        Affiliate to pursue such opportunity independently or in concert with others
        without adversely affecting the Company (in the judgment of the A Manager),
        provided
        that in
        no event shall the A Manager be required to consent to the Class B Member
        or its
        Affiliate pursuing such opportunity. If the A Manager determines to cause
        the
        Company to pursue any opportunity offered to the Company pursuant to Section
        15.2, the Class B Member shall have the right to co-invest up to 50% of the
        aggregate capital necessary for all such opportunities and any related drilling
        and development costs associated with all such opportunities up to an aggregate
        cap of $10,000,000 on terms to be agreed upon between the A Manager and the
        Class B Member.

       

      
        
          
          

        

        
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      15.4          Reimbursement
        of Expenses.
        The
        Class B Member may seek reimbursement from the A Manager for any origination
        expenses or due diligence expenses incurred in the furtherance of any additional
        acreage purchases pursuant to Section 15.2; provided
        that
        such reimbursement shall not be unreasonably withheld or delayed.

      

      ARTICLE
        XVI

      MISCELLANEOUS

      

      16.1          Notices.
        All
        notices, elections, demands, or other communications required or permitted
        to be
        made or given pursuant to this Agreement shall be in writing and shall be
        considered as properly given or made if given by (a) personal delivery,
        (b) overnight delivery service with proof of delivery, (c) facsimile
        (provided
        that
        such facsimile is confirmed), or (d) electronic transmission if
        acknowledgement thereof is received by the sender. When in this Agreement
        it is
        provided that a time period shall commence when a notice is received, such
        time
        period shall commence (x) upon actual receipt by the addressee if by
        personal delivery or overnight delivery service, (y) at the time of the
        confirmation of receipt, if by facsimile, or (z) upon telephone
        confirmation by the sender that an addressee has received an electronic
        transmission. Each Member’s address for notices and other communications
        hereunder shall be that set forth opposite such Member’s signature hereto. A
        Member may change its address by giving notice in writing to the other Members
        of its new address.

      

      16.2          Amendments. Except
        as
        otherwise provided herein, this Agreement may be amended, or any provision
        hereof waived, only with the written consent of each Member.

      

      16.3          Entire
        Agreement.
        This
        Agreement constitutes the complete and exclusive statement of the agreement
        between and among the Members and replaces and supersedes all prior agreements.
        Except as otherwise provided herein, this Agreement supersedes all written
        and
        oral statements, and no representation, statement, condition, or warranty
        not
        contained in this Agreement shall be binding on the Members or have any force
        or
        effect whatsoever. No Member has rendered any services to or on behalf of
        any
        other Member or the Company, and no Member shall have any rights with respect
        to
        any services that might be alleged to have been rendered prior to the date
        hereof.

      

      16.4          No
        Waiver.
        The
        failure of any Member to insist upon strict performance of a covenant hereunder
        or of any obligation hereunder, irrespective of the length of time for which
        such failure continues, shall not be a waiver of that Member’s right to demand
        strict compliance in the future. No consent or waiver, express or implied,
        to or
        of any breach or default in the performance of any obligation hereunder shall
        constitute a consent or waiver to or of any other breach or default in the
        performance of the same or any other obligation hereunder.

      

      16.5          Applicable
        Law; Submission to Jurisdiction.
        THIS
        AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
        GOVERNED BY AND INTERPRETED, CONSTRUED, AND ENFORCED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO ITS CONFLICT OF LAWS RULES.
        EACH
        MEMBER IRREVOCABLY CONSENTS AND AGREES THAT (a)
        ANY
        ACTION BROUGHT TO COMPEL ARBITRATION OR IN AID OF ARBITRATION IN ACCORDANCE
        WITH
        THE TERMS OF THIS AGREEMENT, (b)
        ANY
        ACTION CONFIRMING AND ENTERING JUDGMENT UPON ANY ARBITRATION AWARD, AND
        (c)
        ANY
        ACTION FOR TEMPORARY INJUNCTIVE RELIEF TO MAINTAIN THE STATUS QUO OR PREVENT
        IRREPARABLE HARM, MAY BE BROUGHT IN THE STATE AND FEDERAL COURTS OF THE STATE
        OF
        DELAWARE, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH MEMBER HEREBY
        SUBMITS TO AND ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY
        AND
        UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND
        APPELLATE COURTS THEREOF. EACH MEMBER FURTHER IRREVOCABLY CONSENTS TO THE
        SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION
        OR
        PROCEEDING BY THE MAILING OF COPIES THEREOF BY CERTIFIED OR REGISTERED MAIL
        RETURN RECEIPT REQUESTED OR BY RECEIPTED COURIER SERVICE IN THE MANNER SET
        FORTH
        IN SECTION 16.1

       

      
        
          
          

        

        
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      16.6          Successors
        and Assigns.
        Except
        as otherwise provided herein, this Agreement shall be binding upon and inure
        to
        the benefit of the parties hereto and their respective successors and
        assigns.

      

      16.7          Exhibits,
        etc.
        All of
        Exhibits, Schedules, Annexes, and Appendices attached hereto are incorporated
        herein by reference and made a part hereof for all purposes, and references
        to
        this Agreement shall also include such Exhibits unless the context in which
        used
        shall otherwise require.

      

      16.8          Survival
        of Representations and Warranties.
        All
        representations, warranties, and covenants made by any party to this Agreement
        or any other document contemplated thereby or hereby shall be considered
        to have
        been relied upon by the other parties hereto and shall survive the execution
        and
        delivery of this
        Agreement or such other document, regardless of any investigation made by
        or on
        behalf of any such party.

      

      16.9          No
        Third-Party Benefit.
        Except
        for the rights of the Covered Persons provided in this Agreement, nothing
        in
        this Agreement, either express or implied, is intended to or shall confer
        upon
        any Person other than the parties hereto, and their respective successors
        and
        permitted assigns, any rights, benefits, or remedies of any nature whatsoever
        under or by reason of this Agreement.

      

      16.10       
        Filings.
        Prior to
        conducting any business in any jurisdiction, the Class B Manager shall to
        the
        full extent necessary to establish limited liability for the Members under
        the
        laws of such jurisdiction and otherwise to comply with the laws of that
        jurisdiction, cause the Company to comply with all requirements for the
        registration or qualification of the Company to conduct business as a limited
        liability Company in that jurisdiction. Thereafter, the Class B Manager shall
        cause the Company to continue to comply with all such requirements and all
        other
        requirements necessary to maintain the limited liability of the Members in
        each
        jurisdiction where the Company does business.

      

      16.11       
        WAIVER
        OF TRIAL BY JURY.
        EACH
        PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY
        ACTION,
        PROCEEDING, OR COUNTERCLAIM, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT
        OR ANY MATTER ARISING HEREUNDER.

      

      16.12       
        Arbitration
        of Disputes.

      

      (a)    Requirement
        to Arbitrate. Any disagreement, dispute, controversy, or claim arising out
        of or relating to this Agreement or the interpretation of any terms provided
        herein or any arrangements relating hereto or contemplated herein or the
        breach,
        termination, or invalidity of any provision herein shall be settled exclusively
        and finally by arbitration. It is specifically understood and agreed that
        any
        disagreement, dispute, or controversy which cannot be resolved between the
        parties, including, without limitation, any matter relating to the
        interpretation of this Agreement, shall be arbitrated irrespective of the
        magnitude or the amount in controversy thereof or whether such disagreement,
        dispute, or controversy would otherwise be considered justifiable or ripe
        for
        resolution.

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      (b)    Arbitration
        Rules.
        The
        arbitration shall be conducted in accordance with the Commercial Arbitration
        Rules (the “Arbitration
        Rules”)
        of the
        American Arbitration Association (the “AAA”),
        except as those Arbitration Rules conflict with the provisions of this
Section 16.12,
        in
        which event the provisions of this section shall control.

      

      (c)    The
        Arbitrators.

      

      (i)    
The
        arbitration shall be conducted before a tribunal composed of
        three arbitrators.

      

      (ii)    Each
        party to the dispute shall appoint an arbitrator, obtain its appointee’s
        acceptance of such appointment, and deliver written notification of such
        appointment and acceptance to the other party within 30 days after delivery
        of
        the response (as defined in and in accordance with the Arbitration
        Rules).

      

      (iii)   The
        two arbitrators appointed by the parties shall jointly appoint the third
        arbitrator, obtain the appointee’s acceptance of such appointment, and notify
        the parties in writing of such appointment and acceptance within 30 days
        after
        their appointment and acceptance. The third arbitrator shall serve as the
        chairperson of the tribunal.

      

      (iv)   If
        the
        appointment and acceptance of any appointed arbitrator appointed by a party
        or
        the chairperson are not timely effected, then, upon the joint request of
        the
        parties or the request of either of them, the AAA shall appoint the arbitrator
        or the chairperson, as the case may be, and obtain acceptance of such
        appointment.

      

      (v)    Each
        arbitrator appointed pursuant to Section
        16.12(c)(ii)
        shall be
        admitted either to the Bar of the State of New York or the Bar of the State
        of
        Texas and shall have been a partner of either a Texas-headquartered law firm
        with at least 500 lawyers or a New York-headquartered law firm with at least
        500
        lawyers and shall have expertise in the field of corporate transactions
        (including mergers and acquisitions and investment funds); provided,
        however,
        such
        arbitrator shall not have been a partner at Akin Gump Strauss Hauer & Feld
        LLP. The third arbitrator, who shall serve as the chairperson of the tribunal
        pursuant to Section
        16.12(c)(iii),
        shall
        be admitted to the Bar of the State of Delaware and shall have been a partner
        at
        a nationally recognized Delaware law firm and shall have expertise in the
        field
        of corporate transactions (including mergers and acquisitions and investment
        funds).

      

      (vi)   The
        parties intend that each of the arbitrators be independent and impartial.
        To
        this end, each arbitrator shall disclose to the parties and to the other
        members
        of the tribunal, any professional, familial, or social relationships, present
        or
        past, with any party or counsel. In the event that either party believes
        that
        any arbitrator is not independent and impartial, such party may apply for
        the
        removal of such arbitrator. Such application shall be made (a) if the arbitrator
        being challenged is the chairperson or if no chairperson is then in office,
        to
        the AAA, and (b) in any other case, to the chairperson. The AAA or the
        chairperson, as the case may be, shall reach and render a decision in writing
        regarding such application, which decision shall be final. If such decision
        includes a finding that the challenged arbitrator is not independent and
        impartial, such arbitrator shall automatically be removed from the tribunal.
        The
        vacancy arising from such removal shall be filled by the party who was
        originally entitled to appoint such arbitrator or, in the case of the
        chairperson, by the other arbitrators (or if they are unable to agree, by
        the
        President of the AAA).

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      (d)    Fees
        and Expenses of Arbitration, Including Attorney̓
        s
        Fees.
        Each
        party shall bear its own attorney’s fees and expenses.

      

      (e)    Limitation
        on Award.
        The
        arbitrators shall not be permitted to award punitive damages.

      

      (f)    
Location
        of Arbitration.
        The
        arbitration shall be conducted in Wilmington, Delaware or in such other city
        in
        the United States of America as the parties to the dispute may designate
        by
        mutual written consent.

      

      (g)    Evidentiary
        Matters.
        At any
        oral hearing of evidence in connection with the arbitration, each party thereto
        or its legal counsel shall have the right to examine its witnesses and to
        cross-examine the witnesses of any opposing party. No evidence of any witness
        shall be presented in any form unless the opposing party or parties shall
        have
        the opportunity to cross-examine such witness, except as the parties to the
        dispute otherwise agree in writing or except under extraordinary circumstances
        where the interests of justice require a different procedure. The question
        of
        whether the interests of justice so require shall be determined by the
        arbitrators.

      

      (h)    Finality
        of Award.
        Any
        decision or award of the arbitral tribunal shall be final and binding upon
        the
        parties to the arbitration proceeding. The parties hereto hereby waive to
        the
        extent permitted by law any rights to appeal or to seek review of such award
        by
        any court or tribunal. The parties also agree that judgment upon such award
        may
        be entered in any court of competent jurisdiction.

      

      16.13       
        Remedies.
        Any
        remedies provided for in this Agreement shall be cumulative in nature and
        shall
        be in addition to any other remedies whatsoever (whether by operation of
        law,
        equity, contract, or otherwise) which any party may otherwise have.

      

      16.14       
        Use
        of
        Silver Point Name.
        Without
        the prior written consent of the A Manager, which consent may be withheld
        in its
        sole discretion, none of the other Members or their respective Affiliates
        will
        use or otherwise disclose (whether orally or in writing) the name “Silver Point”
or any variation thereof. For the avoidance of doubt, the foregoing shall
        not
        restrict use of the name “Silver Point” that is required to be disclosed by
        applicable law, regulatory body, legal process, or court order, provided
        the
        party proposing such disclosure gives the A Manager notice of any such required
        disclosure and a reasonable opportunity to contest the requirement for
        disclosure.

      

      16.15       
        Severability.
        In case
        any one or more of the provisions contained herein for any reason shall be
        held
        to be invalid, illegal, or unenforceable in any respect, such invalidity,
        illegality, or unenforceability shall not affect any other provision of this
        Agreement, but this Agreement shall be construed as if such invalid, illegal,
        or
        unenforceable provision or provisions had never been contained
        herein.

      

      16.16       
        Press
        Releases.
        The
        Class B Member may not make any public announcements regarding this Agreement
        or
        the Company or its business to the financial community, the press, or the
        general public, except as required by applicable law; provided,
        however,
        the
        Class B Member may consult with and obtain prior approval of the A Manager,
        which approval, if given, shall be provided in a timely manner, before
        issuing such a press release or other public announcement with respect to
        this
        Agreement and may issue a press release or make a public announcement following
        such consultation and approval.
        The
        Class A Members may, at any time, make any public announcement regarding
        this
        Agreement or the Company or its business to the financial community, the
        press,
        or the general public; provided
        it shall
        consult with the Class B Member prior to such announcement.

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      Remainder
        of Page Intentionally Left Blank.

      

      Signature
        Page Follows.

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        undersigned have executed this Agreement as of the day and year first above
        written.

       

      
        	 	 	
                CLASS
                  A MEMBERS:

              	 
	 	 	 	 	 	 
	 	 	
                SPC
                  IGNIS INC.

              	 
	 	 	
                A
                  Delaware corporation

              	 
	 	 	 	 	 	 
	 	 	
                By:

              	
                SP
                  Ignis Offshore, Ltd.

              	 
	 	 	
                By:

              	  
	  
	 
	 	 	 	
                Name:

              	 	 
	 	 	 	
                Title:

              	 	 
	 	 	 	 	 	 
	 	 	
                ADDRESS
                  FOR NOTICE PURPOSES:

              	 
	 	 	
                c/o
                  Silver Point Capital, L.P.

              	 
	 	 	
                2
                  Greenwich Plaza

              	 
	 	 	
                Greenwich,
                  CT 06830

              	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	
                SPC
                  IGNIS (ONSHORE) LLC

              	 
	 	 	
                A
                  Delaware limited liability company

              	 
	 	 	 	 	 	 
	 	 	
                By:

              	 	 	 
	 	 	 	
                Name:

              	 	 
	 	 	 	
                Title:

              	 	 
	 	 	 	 	 	 
	 	 	
                ADDRESS
                  FOR NOTICE PURPOSES:

              	 
	 	 	
                c/o
                  Silver Point Capital, L.P.

              	 
	 	 	
                2
                  Greenwich Plaza

              	 
	 	 	
                Greenwich,
                  CT 06830

              	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	
                SPC
                  IGNIS (FINANCE) LLC

              	 
	 	 	
                A
                  Delaware limited liability company

              	 
	 	 	 	 	 	 
	 	 	
                By:

              	 	 	 
	 	 	 	
                Name:

              	 	 
	 	 	 	
                Title:

              	 	 
	 	 	 	 	 	 
	 	 	
                ADDRESS
                  FOR NOTICE PURPOSES:

              	 
	 	 	
                c/o
                  Silver Point Capital, L.P.

              	 
	 	 	
                2
                  Greenwich Plaza

              	 
	 	 	
                Greenwich,
                  CT 06830

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                CLASS
                  B MEMBER:

              	 
	 	 	 	 	 	 
	 	 	
                IGNIS
                  PETROLEUM GROUP, INC.

              	 
	 	 	 	 	 	 
	 	 	
                By:

              	 
	 
	 
	 	 	 	
                Name:

              	 	 
	 	 	 	
                Title:

              	 	 
	 	 	 	 	 	 
	 	 	
                ADDRESS
                  FOR NOTICE PURPOSES:

              	 
	 	 	
                100
                  Crescent Court, 7th
                  Floor

              	 
	 	 	
                Dallas,
                  Texas 75201

              	 
	 	 	
                Attn:
                  Michael P. Piazza, President

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      Defined
        Terms

      

      “AAA”
means
        the American Arbitration Association.

      

      “Act”
means
        the Delaware Limited Liability Company Act, as amended from time to time,
        or any
        successor statute or statutes thereto.

      

      “Affiliate”
means,
        with respect to any Person, (a) any Person directly or indirectly owning,
        controlling, or holding with power to vote 10% or more of the outstanding
        voting
        securities of that Person, (b) any Person 10% or more of whose outstanding
        voting securities are directly or indirectly owned, controlled, or held with
        power to vote by that Person, (c) any Person directly or indirectly
        controlling, controlled by, or under common control with that Person, and
        (d)
        any officer, director, partner, member, or manager of any Person described
        in
subsections (a),
        (b),
        or
(c)
        of this
        paragraph, and the term “control” shall mean the possession, directly or
        indirectly, of the power to direct or cause the direction of the management,
        activities, or policies of any Person whether through the ownership of voting
        securities, by contract, employment, or otherwise.

      

      “Aggregate
        Capital Contribution”
has
        the
        meaning provided in Section
        5.1(a).

      

      “Agreement”
has
        the
        meaning provided in the introduction hereto.

      

      “A
        Manager”
means
        Silver point Capital, L.P. or, in the event of the resignation of Silver
        Point
        Capital, L.P., a Person selected by a majority of the Class A
        Members.

      

      “Anti-Money
        Laundering Laws”
has
        the
        meaning provided in Section
        9.7.

      

      “Arbitration
        Rules”
has
        the
        meaning provided in Section
        16.12.

      

      “Assignee”
means
        the transferee of all or any portion of a Member’s Interest.

      

      “Bankruptcy”
means,
        for any Member, the taking by such Member or the acquiescing by such Member
        in
        the taking of an action seeking relief under, or advantage of, an applicable
        debtor relief, liquidation, receivership, conservatorship, bankruptcy,
        moratorium, rearrangement, insolvency, reorganization, or similar law affecting
        the rights or remedies of creditors generally, as in effect from time to
        time.

      

      “Bankruptcy
        Code”
means
        Title 11 of the United States Code entitled “Bankruptcy,” as the same may be
        hereafter amended from time to time, and any successor statute or statutes
        thereto.

      

      “B
        Manager”
means
        the Class B Member.

      

      “Book
        Value”
means
        with respect to any Company asset, the asset’s adjusted basis for federal income
        tax purposes, except that the Book Values of all Company assets shall be
        adjusted to equal their respective Fair Market Values, in accordance with
        the
        rules set forth in Section 1.704-1(b)(2)(iv)(f) of the Treasury Regulations,
        except as otherwise provided herein, immediately prior to: (a) the date of
        the
        acquisition of any additional Interest by any new or existing Member in exchange
        for more than a de minimis Capital Contribution; (b) the date of the actual
        distribution of more than a de minimis amount of Company property (other
        than a
        pro rata distribution) to a Member; or (c) the date of the actual liquidation
        of
        the Company within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Treasury
        Regulations; provided
        that
        adjustments pursuant to clauses (a) and (b) above shall be made only if the
        A
        Manager determines in its sole discretion that such adjustments are necessary
        or
        appropriate to reflect the relative economic interests of the Members. The
        Book
        Value of any Company asset distributed to any Member shall be adjusted
        immediately prior to such distribution to equal its Fair Market
        Value.

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

       

      “Business
        Day”
means
        a
        day that is not a Saturday, Sunday, or a day on which banks in New York,
        New
        York are authorized or required by law to close.

      

      “Capital
        Account”
has
        the
        meaning provided in Section
        7.3.

      

      “Capital
        Contributions”
has
        the
        meaning provided in Section
        5.1(a).

      

      “Capital
        Percentage”
has
        the
        meaning provided in Section
        7.4(d).

      

      “Cause”
has
        the
        meaning provided in Section 11.6(c).

      

      “Claim”
has
        the
        meaning provided in Section
        4.6(b)(i).

      

      “Class
        A Interest”
means
        the Interest of the Class A Members.

      

      “Class
        A Member”
has
        the
        meaning provided in the introduction hereto.

      

      “Class
        B Interest”
means
        the Interest of the Class B Member.

      

      “Class
        B Improvements”
means
        all forms of Intellectual Property Rights that originate with or are acquired
        by
        the Class B Member (or its Affiliates) (whether directly or pursuant to cost
        sharing or other similar agreements or arrangements) based upon, derived
        from,
        guided by, selected using, tested with, using, employing, including, practicing,
        exploiting, enabled by or otherwise relating to, in any manner whatsoever,
        the
        Technology.

      

      “Class
        B Member”
has
        the
        meaning provided in the introduction hereto.

      

      “Class
        B Purchase Price”
has
        the
        meaning provided in Section
        11.2(b)(ii).

      

      “Closing
        Date”
means
        the Closing Date as that term is defined in the PSA.

      

      “Code”
means
        the Internal Revenue Code of 1986 and any successor statute or
        statutes.

      

      “Commitment”
means,
        with respect to each Member, the amount set forth opposite such Member’s name on
Exhibit
        B
        in the
        column entitled “Commitment.”

      

      “Company”
has
        the
        meaning provided in the introduction.

      

      “Company
        Expenses”
means
        all bona
        fide
        costs
        and expenses relating to the Company’s activities, to the extent included in the
        approved Plan, including (a) reasonable Organizational Expenses of the
        Company and reasonable legal, auditing, consulting, and accounting expenses
        associated with the preparation of and amendments to this Agreement, the
        Company’s financial statements, reports to Members, tax returns, and IRS Form
        K-1s; (b)  meetings of the Members; (c) reasonable expenses of the
        Managers; (d)  premiums for liability insurance to protect the Company, the
        Managers, and the Members, and in each case, any of their respective partners,
        members, managers, stockholders, officers, directors, employees, agents,
        or
        Affiliates in connection with activities of the Company; (e) reasonable
        expenses associated with the management or operation of the Project, including
        those incurred or payable under the PSA or the Operating Agreements;
        (f) any taxes and other governmental charges, fees, and duties payable by
        the Company; (g) all reasonable expenses incurred in connection with any
        litigation, claim, arbitration, or other proceeding involving the Company
        (including the cost of any investigation and preparation) and the amount
        of any
        judgment or settlement paid in connection therewith; (h) all principal,
        interest, fees, expenses, and other amounts payable in respect of or in
        connection with borrowings, financings, or derivate transactions approved
        in
        accordance with the terms of this Agreement; (i) expenses to wind-up and
        liquidate the Company; (j) reasonable travel and entertainment expenses
        related to the on-going management of the Project; and (k) all direct and
        indirect costs, expenses, and liabilities incurred in connection with the
        acquisition, ownership, and disposition of the Project; provided,
        however,
        Company
        Expenses shall not include overhead, administrative, salary, or other related
        expenses of the Class B Member.

       

      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

       

      “Confidential
        Business Information”
has
        the
        meaning provided in Section 6.3(a).

      

      “Confidential
        Technology Information”
has
        the
        meaning provided in Section
        6.3.

      

      “Copyrights”
shall
        mean all U.S. and foreign registered and unregistered copyrighted or
        copyrightable works, all applications, registrations, and renewals in connection
        therewith, and all rights in or with respect to the foregoing to the extent
        any
        of the foregoing relate to the Technology, including, without limitation,
        the
        copyrights in the Works of Authorship.

      

      “Covered
        Person”
has
        the
        meaning provided in Section
        4.6(b).

      

      “Death,
        Disability, or Voluntary Termination”
has
        the
        meaning provided in Section
        11.6.

      

      “Disability”
        means a
        physical or mental incapacity that prevents the Person in question from
        performing the essential functions of his position, with reasonable
        accommodation, for a period of six consecutive months as documented by a
        licensed healthcare professional selected by the A Manager to determine,
        at the
        A Manager’s expense, whether a Disability exists. In addition, the Class B
        Member may submit to the A Manager documentation of Disability from a licensed
        healthcare professional of its choice. In the event that the medical opinions
        of
        such licensed healthcare professionals conflict, such licensed healthcare
        professionals shall appoint a third licensed healthcare professional to examine
        the Person in question, and the opinion of such third licensed healthcare
        professional shall be dispositive.

      

      “Drawdown
        Notice”
has
        the
        meaning provided in Section 5.2(a).

      

      “Drawdowns”
means
        the Capital Contributions provided for in Section
        5.1
        and
        pursuant to the procedures set forth in Section 5.2
        from
        time to time by the Members pursuant to Drawdown Notices.

      

      “Drag-Along
        Rights”
has
        the
        meaning provided in Section
        11.3(a).

      

      “Drag-Along
        Transfer”
has
        the
        meaning provided in Section
        11.3(a).

      

      “Drag-Along
        Transfer Notice”
has
        the
        meaning provided in Section
        11.3(a).

      

      “Event
        of Dissolution”
means
        any event set forth in Section
        13.1.

      

      “Execution
        Date”
means
        the Execution Date as that term is defined in the PSA.

      

      “Fair
        Market Value”
means
        (a) as to any Securities which are listed or admitted to trading on any national
        securities exchange on any trading day, the amount equal to (i) the last
        sale
        price of such Securities, regular way, on such date or, if no such sale takes
        place on such date, the average of the closing bid and asked prices thereof
        on
        such date, in each case as officially reported on the principal national
        securities exchange on which such Securities are then listed or admitted
        to
        trading, or (ii) if such Securities are not then listed or admitted to trading
        on any national securities exchange but are reported through the automated
        quotation system of a registered securities association, the last trading
        price
        of such Securities on such date, or if there shall have been no trading on
        such
        date, the average of the closing bid and asked prices of such Securities
        on such
        date as shown by such automated quotation system, and (b) as to any other
        property on any date, the fair market value of such property on such date
        as
        determined in good faith by the A Manager.

      

        
          
            
            

          

          
            A-3

            
              

            

          

          
            
            

          

        

      

      

      “Financially
        Interested”
means
        interested financially as a principal, employee, partner, shareholder, agent,
        manager, owner, advisor, consultant, lender, or guarantor; provided,
        however,
        a Person
        will not be deemed Financially Interested solely by reason of owning less
        than
        1% of the common stock of a publicly traded company with a market capitalization
        in excess of $1,000,000,000.

      

      “Fiscal
        Quarter”
means
        (a) the period commencing on the Closing Date and ending on December 31,
        2006,
        and (b) any subsequent three-month period commencing on the first day of
        each of
        January, April, July, and October and ending on the last day of the next
        of
        March, June, September, and December; provided,
        however,
        the
        last Fiscal Quarter shall end on the date on which all Company property is
        distributed pursuant to Section 13.2
        and the
        Certificate has been canceled pursuant to the Act.

      

      “Fiscal
        Year”
means
        (a) the period commencing on the Closing Date and ending on December 31,
        2006, and (b) any subsequent period commencing on January 1st
        and
        ending on the earlier to occur of (i) the following December 31st,
        or (ii)
        the date on which all Company property is distributed pursuant to Section 13.2
        and the
        Certificate has been canceled pursuant to the Act.

      

      “Formation
        Date”
has
        the
        meaning provided in the introduction hereto.

      

      “Funding
        Date”
has
        the
        meaning provided in Section
        5.2(a).

      

      “GAAP”
means
        those generally accepted accounting principles and practices consistently
        applied that are recognized in the United States of America as such by the
        Financial Accounting Standards Board (or any generally recognized successor
        thereto).

      

      “Ignis”
has
        the
        meaning provided in the introduction hereto.

      

      “Intellectual
        Property Rights”
shall
        mean, as to any Person, any and all of the following that are (a) related
        to the
        Technology and (b) owned by such Person: patents (including, but not limited
        to,
        existing patent and pending patent applications, improvement patents, patents
        of
        addition, as well as divisions, reissues, contributions, and extensions of
        any
        of the foregoing), inventions, disclosures, Copyrights, Trademarks, Know
        How,
        trade secrets, designs, and other intellectual property rights (whether
        registered or unregistered, and all applications for the same), as well as
        all
        contract rights related thereto.

      

      “Interest”
means
        a
        Member’s entire ownership interest in the Company and all rights and liabilities
        associated therewith, at any particular time, including the right of each
        Member
        to any and all benefits to which a Member may be entitled as provided in
        this
        Agreement and the rights to distributions (liquidating or otherwise) and
        allocations as provided in this Agreement.

      

      “Investment
        Company Act”
means
        the Investment Company Act of 1940, as amended.

       

      
        
          
          

        

        
          A-4

          
            

          

        

        
          
          

        

      

       

      “Know-How”
shall
        mean any and all know-how, technical information, proprietary ideas, concepts,
        methods, processes, inventions (whether patentable or not), improvements,
        experience, data (including without limitation, drawings, specifications,
        computer programs, abandoned and expired patents, and documentation) or other
        information, and all rights in or to any of the foregoing presently available
        or
        generated during the term of this Agreement relating to the
        Technology.

      

      “Liquidation
        Representative”
has
        the
        meaning provided in Section
        13.2.

      

      “Manager”
        means
        the A Manager or the B Manager and “Managers” means the A Manager and the B
        Manager.

      

      “Member”
has
        the
        meaning provided in the introduction hereto.

      

      “Net
        Income and Net Loss”
means
        for each Fiscal Year or other period, the taxable income or loss of the Company,
        or particular items thereof, determined in accordance with the accounting
        method
        used by the Company for federal income tax purposes with the following
        adjustments: (a) all items of income, gain, loss, deduction, or expense
        specially allocated pursuant to this Agreement (including Section
        5.3)
        shall
        not be taken into account in computing such taxable income or loss; (b) any
        income of the Company that is exempt from federal income taxation and not
        otherwise taken into account in computing Net Income and Net Loss shall be
        added
        to such taxable income or loss; (c) if the Book Value of any asset differs
        from
        its adjusted tax basis for federal income tax purposes, any gain or loss
        resulting from a disposition of such asset shall be calculated with reference
        to
        such Book Value; (d) upon an adjustment to the Book Value of any asset pursuant
        to the definition of Book Value, the amount of the adjustment shall be included
        as gain or loss in computing such taxable income or loss; (e) if the Book
        Value
        of any asset differs from its adjusted tax basis for federal income tax purposes
        the amount of depreciation, amortization, or cost recovery deductions with
        respect to such asset for purposes of determining Net Income and Net Loss
        shall
        be an amount which bears the same ratio to such Book Value as the federal
        income
        tax depreciation, amortization, or other cost recovery deductions bears to
        such
        adjusted tax basis (provided
        that if
        the federal income tax depreciation, amortization, or other cost recovery
        deduction is zero, the B Manager may use any (subject to the approval of
        the A
        Manager reasonable method for purposes of determining depreciation,
        amortization, or other cost recovery deductions in calculating Net Income
        and
        Net Loss); and (f) except for items in (a) above, any expenditures of the
        Company not deductible in computing taxable income or loss, not properly
        capitalizable, and not otherwise taken into account in computing Net Income
        and
        Net Loss pursuant to this definition, shall be treated as deductible
        items.

      

      “Operating
        Agreements”
has
        the
        meaning provided in Section
        4.1(l).

      

      “Organizational
        Expenses”
means
        reasonable legal, auditing, consulting, and accounting expenses of the Company
        associated with the formation of the Company.

      

      “Original
        Agreement”
        has the
        meaning provided in the introduction hereto.

      

      “Person”
means
        an individual, an estate, a corporation, a company, a partnership, a limited
        partnership, a limited liability company, an association, a joint stock company,
        a trust, or other legal entity.

      

      “Plan”
has
        the
        meaning provided in Section
        4.2.

      

      “Project”
means
        owning, holding, managing, operating, and producing and disposing of oil,
        gas
        and other hydrocarbons from the oil and gas leases and other interests subject
        to the PSA or otherwise acquired by the Company, exercising the Company’s rights
        and performing its obligations under the PSA, and matters incidental to those
        activities, including operation of the gas pipeline gathering system acquired
        pursuant to the PSA.

       

      
        
          
          

        

        
          A-5

          
            

          

        

        
          
          

        

      

       

      “Proposed
        Drag-Along Transfer”
has
        the
        meaning provided in Section
        11.3(a).

      

      “Pro
        Rata Portion”
has
        the
        meaning provided in Section
        11.2(b)(ii).

      

      “PSA”
has
        the
        meaning provided in the introduction hereto.

      

      “Purchase
        Price”
has
        the
        meaning provided in Section
        5.1(a).

      

      “Remaining
        Commitment”
means,
        as to any Member on any date, an amount equal to the positive excess, if
        any, of
        (a) such Member’s Commitment, over (b) the aggregate amount of all Capital
        Contributions made by such Member to the Company in accordance with this
        Agreement, including Sections
        5.1,
        5.2
        and
5.3,
        as
        adjusted from time to time pursuant to Sections
        5.4
        and
7.4(h).

      

      “Restricted
        Business”
means
        (i) the exploration, exploitation or production of any natural resource
        deposits, or (ii) any activities related or incidental thereto.

      

      “Securities”
means
        any (a) privately or publicly issued capital stock, bonds, notes, debentures,
        commercial paper, bank acceptances, trade acceptances, trust receipts and
        other
        obligations, chooses in action, partnership or limited liability company
        interests, instruments or evidences of indebtedness commonly referred to
        as
        securities, warrants, options, including puts and calls or any combination
        thereof and the writing of such options, and (b) claims or other causes of
        action, matured or unmatured, contingent or otherwise, of creditors and/or
        equity holders of any Person against such Person, including “claims” and
“interests”, in each case as defined under the Bankruptcy Code, and all rights
        and options relating to the foregoing.

      

      “Securities
        Act”
means
        the Securities Act of 1933, as amended.

      

      “Services
        Agreement”
has
        the
        meaning provided in Section
        4.4(a)(ix).

      

      “Silver
        Point”
means
        Silver Point Capital, L.P. or any of its Affiliates.

      

      “Simulated
        Basis”
shall
        mean the Book Value of any oil and gas property (as defined in Section 614
        of
        the Code) as adjusted from time to time for Simulated Depletion.

      

      “Simulated
        Depletion”
shall
        mean, with respect to each oil and gas property, a depletion allowance computed
        in accordance with federal income tax principles and in the manner specified
        in
        Treasury Regulation Section 1.704-1(b)(2)(iv)(k)(2). For purposes of computing
        Simulated Depletion with respect to any property, the Simulated Basis of
        such
        property shall be deemed to be the Book Value of such property, and in no
        event
        shall such allowance, in the aggregate, exceed such Simulated
        Basis.

      

      “Simulated
        Gain”
shall
        mean the excess of the amount realized from the sale or other disposition
        of an
        oil or gas property over the Book Value of such property. If the Book Value
        of
        any property the sale of which would result in Simulated Gain is adjusted
        as
        provided in this Agreement, the amount of such adjustment shall be taken
        into
        account as gain from the disposition of such property for purposes of computing
        Simulated Gain.

      

      “Simulated
        Loss”
shall
        mean the excess of the Book Value of an oil or gas property over the amount
        realized from the sale or other disposition of such property. If the Book
        Value
        of any property the sale of which would result in Simulated Loss is adjusted
        as
        provided in this Agreement, the amount of such adjustment shall be taken
        into
        account as loss from the disposition of such property for purposes of computing
        Simulated Loss.

      

        
          
            
            

          

          
            A-6

            
              

            

          

          
            
            

          

        

      

      

      “Tag-Along
        Member”
has
        the
        meaning provided in Section
        11.2.

      

      “Tag-Along
        Notice”
has
        the
        meaning provided in Section
        11.2.

      

      “Tag-Along
        Response Notice”
has
        the
        meaning provided in Section
        11.2.

      

      “Tag-Along
        Response Notice Period”
has
        the
        meaning provided in Section
        11.2.

      

      “Tag-Along
        Right”
has
        the
        meaning provided in Section
        11.2.

      

      “Tag-Along
        Transfer”
has
        the
        meaning provided in Section
        11.2.

      

      “Texas
        Certificate”
has
        the
        meaning provided in the introduction hereto.

      

      “Technology”
means
        any technology that is acquired, developed, or improved in connection with
        the
        Project and any horizontal drilling technology acquired, developed, or improved
        in connection with the Project.

      

      “Trademarks”
shall
        mean U.S., state and foreign trademarks, service marks, logos, slogans, trade
        dress, traded names, and other designations of origin used in connection
        with
        the Technology, including all goodwill associated therewith and symbolized
        thereby, any common law rights, registrations and applications to register
        the
        foregoing, and all rights in or with respect to any of the
        foregoing.

      

      “Transfer”
means,
        with respect to an Interest, a sale, exchange, transfer, assignment,
        hypothecation, mortgage, pledge, or other disposition, granting of a security
        interest in, encumbering, or permitting any encumbrance of, the Interest
        in
        question.

      

      “Transferring
        Class A Members”
has
        the
        meaning provided in Section
        11.2.

      

      “Treasury
        Regulations”
means
        the Income Tax Regulations promulgated under the Code, as the same may be
        hereafter amended from time to time.

      

      “WBO”
has
        the
        meaning provided in the introduction hereto.

      

      “Works
        of Authorship”
shall
        mean all works of authorship reduced to tangible form describing or relating
        to
        the Technology.

      

        
          
            
            

          

          
            A-7

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        B

      

      Member
        Commitments

       

      
        	
                Member

              	
                Commitment

              	
                Initial

                Capital

                Contributions

              	
                Interest

                Percentage

              
	 	 	 	 
	
                Class
                  A Members

              	 	 	 
	 	 	 	 
	
                SPC
                  Ignis Inc.

              	 	 	 
	
                c/o
                  Silver Point Capital, L.P.

              	
                $9,784,934.17

              	
                $7,600,039.80

              	
                37.5%

              
	
                2
                  Greenwich Plaza

              	 	 	 
	
                Greenwich,
                  CT 06830

              	 	 	 
	 	 	 	 
	
                SPC
                  Ignis (Onshore) LLC

              	 	 	 
	
                c/o
                  Silver Point Capital, L.P.

              	
                $9,784,934.17

              	
                $7,600,039.80

              	
                37.5%

              
	
                2
                  Greenwich Plaza

              	 	 	 
	
                Greenwich,
                  CT 06830

              	 	 	 
	 	 	 	 
	
                SPC
                  Ignis (Finance) LLC

              	 	 	 
	
                c/o
                  Silver Point Capital, L.P.

              	
                $6,523,289.45

              	
                $5,066,693.19

              	
                25%

              
	
                2
                  Greenwich Plaza

              	 	 	 
	
                Greenwich,
                  CT 06830

              	 	 	 
	 	 	 	 
	
                Class
                  B Member

              	 	 	 
	 	 	 	 
	
                Ignis
                  Petroleum Group, Inc.

              	 	 	 
	
                100
                  Crescent Court, 7th
                  Floor

              	
                $0.00

              	
                $0.00

              	
                0%

              
	
                Dallas,
                  TX 75201

              	 	 	 
	
                Attn:
                  Michael P. Piazza, President

              	 	 	 
	 	 	 	 
	
                Total

              	
                $26,093,157.79

              	
                $20,266,772.79

              	
                100%

              

      

       

      
        
          
          

        

        
          
            B-1

          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

      

      Services
        Agreement

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

      APPENDIX
        A

      

      Mike
        Piazza
        - If
        Mike Piazza is removed pursuant to Section
        11.6(b),
        distributions to the Class B Member shall be thereafter reduced as
        follows:

      

      (i)    
If
        prior
        to the 1 year anniversary of this Agreement, by 25%

      

      (ii)    If
        after
        the 1 year anniversary but before the 2 year anniversary of this Agreement,
        by
        20%

      

      (iii)   If
        after
        the 2 year anniversary but before the 3 year anniversary of this Agreement,
        by
        15%

      

      (iv)   If
        after
        the 3 year anniversary of this Agreement, by 5%

       

      

      Eric
        Hanlon
        - If
        Eric Hanlon is removed pursuant to Section
        11.6(b),
        distributions to the Class B Member shall be thereafter reduced as
        follows:

      

      (i)    
If
        prior
        to the 1 year anniversary of this Agreement, by 20%

      

      (ii)    If
        after
        the 1 year anniversary but before the 2 year anniversary of this Agreement,
        by
        15%

      

      (iii)   If
        after
        the 2 year anniversary but before the 3 year anniversary of this Agreement,
        by
        10%

      

      (iv)   If
        after
        the 3 year anniversary of this Agreement, by 5%

       

      

      Fred
        Stein
        - If
        Fred Stein is removed pursuant to Section
        11.6(b),
        distributions to the Class B Member shall be thereafter reduced as
        follows:

      

      (i)    
If
        prior
        to the 1 year anniversary of this Agreement, by 30%

      

      (ii)    If
        after
        the 1 year anniversary but before the 2 year anniversary of this Agreement,
        by
        25%

      

      (iii)   If
        after
        the 2 year anniversary but before the 3 year anniversary of this Agreement,
        by
        20%

      

      (iv)   If
        after
        the 3 year anniversary of this Agreement, by 5%

      

      Provided,
        however,
        if Fred
        Stein retires from Ignis after the 3 year anniversary of this Agreement,
        such
        retirement shall be considered a Disability, but there shall be no subsequent
        reduction in distributions to the Class B Member due to such
        retirement.

       

      

      Reductions
        Cumulative
        - All
        reductions provided for in this Appendix A shall be cumulative. 

      

      Example
        1
        - If
        Mike Piazza and Eric Hanlon are both removed pursuant to Section
        11.6(b)
        prior to
        the 1 year anniversary of this Agreement, distributions to the Class B Member
        shall be thereafter reduced by 45%. 

      

      Example
        2
        - If
        Eric Hanlon is removed pursuant to Section
        11.6(b)
        after
        the 1 year anniversary but before the 2 year anniversary of this Agreement,
        distributions to the Class B Member shall be thereafter reduced by 15%, and
        if
        thereafter Fred Stein is removed pursuant to Section
        11.6(b)
        after
        the 2 year anniversary but before the 3 year anniversary of this Agreement,
        there shall be a subsequent reduction of an additional 20% aggregating to
        a
        combined reduction of 35%.

       

       

      Appendix
        A-1OCEAN
      WEST HOLDING CORPORATION

    26
      EXECUTIVE PARK, SUITE 250

    IRVINE,
      CA 92614

    949-861-2590

    

    

    August
      1,
      2006

    

    

    Gentlemen:

    

    This
      letter sets forth the agreement (the “Agreement”) between Ocean West Holding
      Corporation (“OWHC”), which together with its subsidiaries and affiliates is
      hereinafter referred to as the “Company” and BK Financial Services, LLC of
      Syosset, New York and Meyer Capital Corporation of Ketchum, Idaho as consultants
      (collectively, the “Consultants”).

     

    Any
      reference in this Agreement to a “party” or the “other party” shall mean
      Consultant or the Company, as the case may be.

    

    Section
      1. Scope
      of Services Rendered.
      The
      Company hereby engages Consultant to act as its advisor to provide the
      consulting services hereinafter described, as reasonably requested by the
      Company. It is understood and acknowledged by the parties that the value of
      Consultant’s advice is not readily quantifiable, and that although Consultant
      shall be obligated to render the advice contemplated by this Agreement upon
      the
      reasonable request of the Company, in good faith, Consultant shall not be
      obligated to spend any specific amount of time in so doing. Consultant’s duties
      may include, but will not necessarily be limited to, providing recommendations
      concerning the following related matters.

     

    (a)    Rendering
      advice with regard to internal operations, including:

    

    (i)    the
      formation of corporate goals and their implementation;

    (ii)    the
      Company’s financial structure and its divisions or subsidiaries;
      and

    (iii)    corporate
      organization and personnel.

     

    (b)    Rendering
      advice with regard to any of the following corporate finance
      matters:

    

    (i)    changes
      in the capitalization of the Company;

    (ii)    changes
      in the Company’s corporate structure;

    (iii)    redistribution
      of shareholdings of the Company’s stock;

    (iv)    offerings
      of securities in public and private transactions;

    (v)    alternative
      uses of corporate assets;

    (vi)    structure
      and use of debt; and

    (vii)    sales
      of
      stock by insiders pursuant to Rule 144 or otherwise.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

      July
        18,
        2006

      Page
        2

       

    

    (c)    Rendering
      investment banking services with regard to any of the following matters: the
      acquisition of and/or merger with other companies, the sale of the Company
      itself, or any of its assets, subsidiaries or affiliates, or similar type of
      transaction (hereinafter referred to as a “Transaction”).

     

    The
      Company acknowledges and agrees that Consultant has been retained solely to
      provide the advice or services set forth in this Agreement. Consultant shall
      act
      as an independent contractor and any duties of Consultant arising out of its
      engagement hereunder shall be owed solely to the Company. As Consultant will
      be
      acting on the Company’s behalf, the Company agrees to the indemnification and
      other obligations set forth in Section 7 of this Agreement. 

    

    Section
      2. Compensation
      - Cash Fees.
      As
      compensation for services to be provided by Consultant hereunder, the Company
      agrees to pay a monthly retainer (the “Consulting Fee”) of $5,000.00 to
      Consultant. 

     

    Out-of-Pocket
      Expenses.
      The
      Company agrees to reimburse Consultant promptly for all reasonable out-of-pocket
      expenses incurred (including without limitation all reasonable fees and expenses
      of counsel) incurred by Consultant in connection with its engagement hereunder
      upon production of supporting vouchers and receipts therefor.

    

    Section
      3. Term
      of Engagement.
      This
      Agreement will expire six (6) months from the date hereof unless extended by
      the
      Company on 30 days’ prior written notice. The Agreement, if extended, may then
      be terminated solely for cause. As set forth in this Section 3, Cause shall
      be
      defined to mean:

     

    (i)    Consultant’s
      neglect or refusal to perform, or if it otherwise fails to perform such duties
      as are delegated to Consultant by the Chief Executive Officer of the
      Company;

     

    (ii)    any
      other
      conduct consisting a breach of this Agreement or of any code of conduct
      heretofore or hereafter adopted by the Company;

     

    (iii)    Consultant
      (or its CEO’s) conviction (including a conviction on a nole
      contendere plea)
      of
      a felony or misdemeanor (other than minor traffic offenses);

     

    (iv)    any
      willful, intentional, or grossly negligent act having the effect of inuring
      Consultant’s reputation or the reputation or business of the
      Company.

    

    Upon
      expiration of this Agreement, Consultant will be entitled to prompt payment
      of
      all reasonable fees accrued prior to such expiration and reimbursement of all
      reasonable out-of-pocket expenses as provided pursuant to the provisions set
      forth in Section 2 above. Sections 5, 6, 7, 8, 9, 10 and 11 of this Agreement
      will also remain operative and in full force and effect regardless of the
      expiration of this Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

      
        July
          18,
          2006

        Page
          3

         

      

    

    Section
      4. Cooperation.
      The
      Company will furnish Consultant with all financial and other information and
      data as Consultant believes, acting reasonably, are appropriate in connection
      with its activities on the Company’s behalf, and shall provide Consultant full
      access to its officers, directors, employees and professional advisors.

     

    The
      Company recognizes and confirms that Consultant, in connection with performing
      its services hereunder, (i) will be relying without investigation upon all
      information that is available from public sources or supplied to it by or on
      behalf of the Company or its advisors; (ii) shall not in any respect be
      responsible for the accuracy or completeness of, or have any obligation to
      verify, the same; and (iii) will not conduct any appraisal of any assets of
      the
      Company.

     

    Consultant
      covenants that it shall not make any unauthorized or untrue statement relating
      to the Company in providing the services on behalf of the Company hereunder
      and
      agrees that it shall indemnify the Company for any breach of this obligation
      pursuant to the terms and conditions of Section 8 of this
      Agreement.

     

    The
      Company covenants not to undertake any public offering or other issuance of
      its
      common shares or the Securities in contravention of the Laws.

    

    Section
      5. Confidentiality.
      The
      Company agrees that any advice in writing and designated as confidential (the
      “Consultant Confidential Information”) provided by Consultant pursuant to this
      Agreement will be treated by the Company as confidential, will be solely for
      the
      information and assistance of the Company in connection with its consideration
      of transactions of the type referred to in this Agreement and will not be used,
      circulated, quoted or otherwise referred to for any other purpose, nor will
      it
      be filed with, included in or referred to, in whole or part, in any registration
      statement, proxy statement or any other communication, whether written or oral,
      prepared, issued or transmitted by the Company or any affiliate, director,
      officer, employee, agent or representative of any thereof, without, in each
      instance, Consultant’s prior written consent.

     

    Further,
      in connection with this engagement of Consultant, it is contemplated that the
      Company may supply to Consultant certain non-public or proprietary information
      concerning the Company (the “Company Confidential Information”). Consultant
      shall use Company Confidential Information solely for the purposes of rendering
      services pursuant to and in accordance with this engagement and shall not
      disclose any Company Confidential Information to any person, other than its
      officers, directors, employees and outside advisors with a need to
      know.

     

    For
      the
      purposes of this Agreement, the Company Confidential Information and the
      Consultant Confidential Information (collectively, the “Confidential
      Information”) shall not include:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      July
        18,
        2006

      Page
        4

    

     

    
      
        	
              	a)	
                information
                  which is in the public domain at the date of disclosure of the
                  Confidential Information to the party in receipt of such Confidential
                  Information (the “Receiving Party”) to or which thereafter enters the
                  public domain through no fault of the Receiving Party (but only
                  after it
                  enters the public domain);

              

      

    

     

    
      
        	
              	b)	
                information
                  which is already known to the Receiving Party at the time of its
                  disclosure to the Receiving
                  Party;

              

      

    

     

    
      
        	
              	c)	
                information
                  which, following its disclosure to the Receiving Party, is received
                  by the
                  Receiving Party without obligation of confidence from a third party
                  who
                  the Receiving Party had no reason to believe was not lawfully in
                  possession of such information free of any obligation of confidence;
                  and

              

      

    

     

    
      
        	
              	d)	
                expertise
                  which the Receiving Party has at the date hereof or which the Receiving
                  Party develops or enhances as a result of reviewing the information
                  or
                  material provided.

              

      

    

     

    The
      Receiving Party shall be entitled to disclose Confidential
      Information:

     

    
      
        	
              	a)	
                if
                  required pursuant to a subpoena or order issued by a court, arbitrator
                  or
                  governmental body, agency or official;
                  or

              

      

    

     

    
      
        	
              	b)	
                to
                  those of its employees, agents and advisors that have a need to
                  know the
                  Confidential Information.

              

      

    

    

    Section
      6. Potential
      Conflicts.
      The
      Company acknowledges that although Consultant and its affiliates may have and
      may continue to have investment banking and other relationships with parties
      other than the Company pursuant to which Consultant may acquire information
      of
      interest to the Company, Consultant shall have no obligation to disclose such
      information to the Company, or to use such information in connection with any
      contemplated transaction. The Company recognizes that Consultant is being
      engaged hereunder to provide the services described above only to the Company
      and is not acting as an agent or a fiduciary of, and shall have no direct duties
      or liability to, the equity holders of the Company or any third party in
      connection with its engagement hereunder, all of which are hereby expressly
      waived. No one other than the Company is authorized to rely upon the engagement
      of Consultant hereunder or any statements, advice, opinions or conduct by
      Consultant.

    

    Section
      7. Indemnification.
      The
      Company hereby agrees to indemnify and hold harmless Consultant and its assigns
      and affiliates, the respective directors, officers, attorneys and other agents,
      stockholders and employees of Consultant and its affiliates and each other
      person, if any, controlling Consultant or any of its affiliates (Consultant
      and
      each such person and entity being referred to as a “Consultant Indemnified
      Person”), to the full extent lawful, from and against any losses, claims,
      damages or liabilities or actions (including without limitation shareholder
      actions, actions brought by VC Arjent and actions arising from the use of
      information contained in documents prepared by the Company or omissions from
      such materials) related to or arising out of its engagement or Consultant’s role
      in connection herewith, and will pay (or, if paid by a Consultant Indemnified
      Person, reimburse such Indemnified Person) for all reasonable fees and expenses
      (including, without limitation, legal fees and expenses) incurred by such
      Consultant Indemnified Person in connection with investigating, preparing or
      defending any such action or claim, whether or not in connection with pending
      or
      threatened litigation in which any Indemnified Person is a party. The Company
      will not, however, be responsible for any claims, liabilities, losses, damages
      or expenses which result from any compromise or settlement not approved by
      the
      Company or which result primarily from the fraud, willful misconduct or gross
      negligence of any Consultant Indemnified Person. The foregoing agreement shall
      be in addition to any rights that any Indemnified Person may have at common
      law
      or otherwise, including without limitation any right to contribution. The
      foregoing obligations of indemnification shall be fulfilled upon the monthly
      presentation of appropriate bills and receipts by the Consultant Indemnified
      Person which shall be paid within twenty days of receipt.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

      
        July
          18,
          2006

        Page
          5

      

       

    

    Consultant
      agrees to indemnify and hold harmless the Company and its respective directors,
      officers, attorneys and other agents, shareholders and employees of the Company
      (the Company and any such person or entity being referred to here as a “Company
      Indemnified Person”), to the full extent lawful, from and against any losses,
      claims, damages or liabilities or actions relating to arising out of the breach
      by Consultant of its representations, warranties and covenants contained in
      this
      Agreement, including, without limitation, the representations, warranties and
      covenants contained in Sections 4 and 5 of this Agreement, and will pay (or,
      if
      paid by a Company Indemnified Person, reimburse such Company Indemnified Person)
      for all reasonable fees and expenses (including, without limitation, legal
      fees
      and expenses) incurred by such Company Indemnified Person in connection with
      investigating, planning or defending any such action or claim whether or not
      in
      connection with pending or threatened litigation in which any Company
      Indemnified Person is a party. Consultant will not, however, be responsible
      for
      any claims, liabilities, losses, damages or expenses which result from any
      compromise or settlement not approved by Consultant or which result primarily
      from the fraud, willful misconduct or negligence of any Company Indemnified
      Person, or any breach by the Company of its obligations hereunder. The foregoing
      agreement shall be in addition to any rights that any Company Indemnified Person
      may have at common law or otherwise, including without limitation any right
      to
      contribution. The foregoing obligations of indemnification shall be fulfilled
      upon the monthly presentation of appropriate bills and receipts by the
      indemnified party which shall be paid within twenty days of
      receipt.

     

    If
      any
      action or proceeding is brought against any Consultant Indemnified Person or
      Company Indemnified Person (collectively, an “Indemnified Person”) in respect of
      which indemnity may be sought pursuant hereto, or if any Indemnified Person
      receives notice from any potential litigant or a claim which such person
      reasonably believes will result in the commencement of any such action or
      proceeding, or of the existence of any such claim, the Indemnified Person shall
      immediately notify the other party of all relevant facts relating thereto,
      but
      the failure so to notify such other party of any such action or proceeding
      shall
      not relieve the other party from any other obligation or liability which it
      may
      have to any Indemnified Person otherwise than under this Agreement or with
      respect to any other action or proceeding, except if and to the extent that
      the
      other party is prejudiced by such failure so to notify. In case any such action
      or proceeding shall be brought against any Indemnified Person, the other party
      shall be entitled to assume the defense of such action or proceeding or
      participate in such action or proceeding with counsel of the other party’s
      choice, or compromise or settle such action or proceeding, at its expense (in
      which case the other party shall not thereafter be responsible for the fees
      and
      expenses of any separate counsel retained by such Indemnified Person).
      Notwithstanding the other party’s election to assume the defense of such action
      or proceeding, such Indemnified Person shall have the right to employ separate
      counsel and to participate in the defense of such action or proceeding at its
      own cost and expense.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      July
        18,
        2006

      Page
        6

    

     

    In
      order
      to provide for the just and equitable contribution, if a claim for
      indemnification hereunder is found unenforceable in a final judgement by a
      court
      of competent jurisdiction (not subject to further appeal), even though the
      express provisions hereof provide for indemnification in such case, then the
      Company and Consultant shall contribute to the losses, claims, damages,
      judgements, liability or costs to which the Indemnified Person may be subject
      in
      accordance with the relative benefits received by, and the relative fault of,
      each in connection with the statements, acts or omissions which resulted in
      such
      losses, claims, damages, judgements, liabilities or costs. Consultant and the
      Company agree that a pro rata
      allocation would be unfair. No person found liable for a fraudulent
      misrepresentation, omission or gross negligent behavior shall be entitled to
      contribution from any person who is not also found liable for such fraudulent
      misrepresentation, omission or gross negligent behavior. 

     

    Notwithstanding
      the foregoing, Consultant shall not be obligated to contribute to any amount
      hereunder that exceeds the amount of fees or compensation received or to be
      received by Consultant for its services to the Company hereunder.

     

    These
      indemnification provisions shall (i) remain operative and in full force and
      effect regardless of any completion of the engagement of Consultant, (ii) inure
      to the benefit of any successors, assigns, heirs or personal representative
      of
      any Indemnified Person; and (iii) be in addition to any other rights that any
      Indemnified Person may have.

    

    Section
      8. Complete
      Agreement; Severability; Amendments; Assignment.
      This
      Agreement embodies the entire agreement and understanding between the parties
      hereto and supersedes any prior agreements and understandings relating to the
      subject matter hereof. If any provision of this Agreement is determined to
      be
      invalid or unenforceable in any respect, such determination will not affect
      such
      provision in any other respect or any other provision of this Agreement, which
      will remain in full force and effect. This Agreement may not be amended or
      otherwise modified or waived except by an instrument in writing signed by both
      Consultant and the Company. 

    

    This
      Agreement shall be binding upon and inure to the benefit of the Company,
      Consultant, each Indemnified Person and their respective successors and
      permitted assigns.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

      
        July
          18,
          2006

        Page
          7

      

       

    

    Section
      9. Notices.
      Notices
      must be in writing and shall be given by personal delivery or by facsimile
      copy
      followed by executed originals sent by registered mail, return receipt
      requested, as follows:

    

    (i)
      to
      the Company at:

    

    26
      Executive Park, Suite 250

    Irvine,
      CA 92614

    Attention:
      Daryl Cohen, CEO

    Facsimile:
      (949) 861-2591; or

    

    (ii)
      to
      the Consultant’s at:

    

    BK
      Financial Services, LLC

    16
      Palatine Court

    Syossett,
      NY

    11791

    Facsimile:
      516-624-9655

    

    Meyer
      Capital Corporation

    PO
      Box
      6187

    Ketchum,
      Id

    83340

    Facsimile:
      ______________

    

    or
      to
      such other address or facsimile number as may be designated by notice given
      by
      either party to the other. Any demand, notice or other communication given
      by
      person delivery shall be conclusively deemed to have been given on the day
      of
      actual delivery thereof and if given by facsimile, on the day of transmittal
      thereof if given during normal business hours of the recipient and on a business
      day during which such normal business hours next occur if not given during
      such
      hours on any day.

    

    Section
      10. Governing
      Law and Choice of Forum.
      This
      Agreement and the legal relations between the parties hereto shall be governed
      as to validity, interpretation, construction, effect and in all other respects
      by the internal laws of the State of California without regard to its principles
      of conflict or choice of Law. Any dispute arising under this Agreement shall
      be
      heard in the federal or state courts in Orange County, California.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      July
        18,
        2006

      Page
        8

    

     

    Please
      confirm that the foregoing correctly sets forth our agreement by signing and
      returning to Consultant the enclosed original copy of this
      Agreement.

    

    Very
      truly yours,

    

    OCEAN
      WEST HOLDING CORPORATION

    

    

    By:________________________________

    Daryl
      Cohen

    Chief
      Executive Officer

    

    Accepted
      as of the date written above.

    

    BK
      FINANCIAL SERVICES, LLC

    

    By:________________________________

    Name:________________________________

    Title:________________________________

    MEYER
      CAPITAL CORPORATION

    

    By:________________________________

    Name:________________________________

    Title:________________________________

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