Document:

EXHIBIT 10.40
                                                                   -------------

                             COMPENSATION AGREEMENT
                             ----------------------

     This Compensation Agreement (this "AGREEMENT"), dated as of the 1st day of
January, 2004 (the "Effective Date"), is entered into by and between DSL.net,
Inc., a Delaware corporation (the "COMPANY"), and Robert DeSantis (the "KEY
OFFICER").

     WHEREAS, the Company desires to afford the Key Officer the benefits set
forth in this Agreement, in recognition of the Key Officer's contributions to
the Company;

     NOW, THEREFORE, in consideration of the transactions contemplated hereby
and the respective covenants and agreements of the parties herein contained, the
parties hereto, intending to be legally bound hereby, agree as follows:

     1.   CERTAIN COMPENSATION AND BENEFITS.
          ---------------------------------

          (a) Salary and Benefits. Without reducing any other benefits to which
the Key Officer is otherwise entitled, the Company hereby agrees to provide to
the Key Officer his base salary and benefits, at levels at least equal to those
to which the Key Officer is currently entitled, from the Effective Date through
at least March 31, 2004 (the "RETENTION PERIOD"), in accordance with standard
Company payroll practices, unless the Key Officer quits without Good Reason (as
defined below) or is terminated by the Company for Cause (as defined below)
prior to expiration of the Retention Period.

          (b) Acceleration of Options. In addition to the foregoing, without
reducing any other benefits to which the Key Officer is otherwise entitled,
subject to Section 2(c) below, if the employment of the Key Officer is
terminated by the Company without Cause or the Key Officer quits for Good Reason
during the Retention Period or within nine (9) months following the expiration
of the Retention Period (i.e., on or prior to December 31, 2004) (the "EXTENSION
PERIOD"), all issued and outstanding unexercised stock options granted to such
Key Officer on or prior to the date of this Agreement shall immediately vest and
become exercisable for one (1) year following the termination date, with all
other terms governed by the Key Officer's respective stock option agreements
with the Company.

          (c) Certain Defined Terms. For purposes hereof, the term "CAUSE" shall
mean (i) habitual intoxication, (ii) illegal drug use or addiction, (iii)
conviction of a felony (or plea of guilty or NOLO CONTENDERE with respect
thereto) which in any material respect impairs the reputation of, or in any
material respect harms, the Company, (iv) material failure or inability to
perform his agreements, duties or obligations as an employee of the Company,
other than from illness or injury, which failure is not cured by the Key Officer
within thirty (30) days (or such longer period as may be reasonably

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necessary to cure such failure) following notice to the Key Officer from the
Company setting forth in reasonable detail the nature of such failure, or (v)
commission of any act, or failure to act, in bad faith which in any material
respect impairs the reputation of, or in any material respect harms, the
Company. For purposes hereof, "GOOD REASON" shall mean (i) the reduction of the
Key Officer's compensation or a reduction in the Key Officer's benefits not the
result of Company-wide changes made to the Company's benefits plans affecting
all or similarly situated employees of the Company, (ii) the relocation of the
Company's office where the Key Officer most recently worked to a location more
than thirty (30) miles from its then current location (without a corresponding
permission from the Company allowing the Key Officer to telecommute), provided
the Key Officer quits within fourteen (14) days after execution and delivery by
the Company of a duly authorized lease or other binding agreement committing the
Company to such relocation (provided, if the Company notifies the Key Officer of
the Company's decision to cancel its planned relocation, the Company shall be
deemed to have cured the event of "Good Reason" and the Key Officer's notice of
resignation shall be deemed revoked, and the status quo shall be maintained,
unless the Key Officer has already accepted employment with another employer),
(iii) a material reduction in the Key Officer's duties or position at the
Company, (iv) a failure on the part of the Company to pay the Key Officer when
due any salary, bonus or other material benefit due to him, provided, however,
that, in any such event, the Key Officer shall notify the Company of such event
and give it fifteen (15) days to remedy the situation before terminating his
employment, or (v) there exists a breach by the Company of any material term or
provision of any employment agreement between it and the Key Officer, provided,
however, that, in any such event, the Key Officer shall notify the Company of
such event and give it fifteen (15) days to remedy the situation before
terminating his employment.

     2.   CONSEQUENCES OF TERMINATION.
          ---------------------------

          (a) Termination for Cause. Upon termination by the Company of the Key
Officer's employment for Cause during the Retention Period or the Extension
Period, all rights of the Key Officer under this Agreement shall immediately
terminate and the Company shall have no further obligations hereunder, other
than to pay to the Key Officer all base salary and accrued benefits owing as of
the date of termination in accordance with the Company's normal practices then
in effect.

          (b) Termination for Death or Disability. If the Key Officer's
employment with the Company shall be terminated during the Retention Period or
the Extension Period due to death or Disability (as defined below), the Company
shall have no further obligations to the Key Officer or the Key Officer's heirs,
beneficiaries, administrators, executors or other personal representatives under
this Agreement, other than to pay to the Key Officer all base salary and accrued
benefits owing as of the date of termination in accordance with the Company's
normal practices then in effect. For purposes hereof, the term "DISABILITY"
shall be used herein as defined in the Company's disability insurance policy in
effect with respect to the Key Officer or, absent same, shall

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mean the Key Officer's inability, by reason of physical or mental incapacity
(determined by a licensed physician reasonably acceptable to the Key Officer and
the Company), to perform the essential functions of his job, with or without a
reasonable accommodation by the Company, for an aggregate of seventy-five (75)
days during any twelve (12) month period, as the case may be. Once the Key
Officer has become Disabled, payment of any further base salary and benefits, if
any, shall be subject to the Company's disability insurance coverage in effect
with respect to the Key Officer.

          (c) Termination Without Cause. If the Key Officer's employment with
the Company is terminated by the Company at any time during the Retention Period
or the Extension Period without Cause, then, without reducing any other benefits
to which the Key Officer is otherwise entitled, the Company will continue to
provide to the Key Officer, for six (6) months from and after April 1, 2004, in
the event the Key Officer was terminated without Cause on or prior to March 31,
2004, or the date of termination, in the event the Key Officer was terminated
without Cause on or after April 1, 2004 (the "COVERED PERIOD"), his benefits and
base salary in accordance with Company practices, less all withholdings required
under then current Company policy and applicable law or regulation, provided,
however, the foregoing payment of base salary shall be paid to the Key Officer
in lump sum within thirty (30) days of the termination date, less all required
withholdings; provided, further, however, that the Key Officer agrees that his
eligibility to receive any and all compensation and benefits described in this
Section 2(c) and in Section 1(b) shall be subject to and contingent upon the Key
Officer's execution of a full and complete release in favor of the Company,
substantially in the form of that attached hereto as Exhibit A (including any
changes thereto necessitated by applicable law at the time of execution, the
"RELEASE"). The Key Officer shall return to the Company, in cash, the value of
any compensation and benefits paid to him upon a violation of the provisions of
said Release (except to the extent application of the foregoing clause would
invalidate any waiver given thereunder) or the provisions of any of Sections 3
through 4 of this Agreement. No payments of compensation or benefits under
Section 2(c) or Section 1(b) shall be made nor rights of enforceability with
respect thereto vested until the revocation period, if any, referred to in the
Release shall have expired.

          (d) Termination by the Key Officer. A termination of the Key Officer's
employment with the Company during the Retention Period or the Extension Period
by the Key Officer upon his voluntary termination or resignation (other than a
termination of employment with the Company by the Key Officer for Good Reason)
shall be treated (solely for purposes of determining the Key Officer's
eligibility to receive the compensation and benefits referred to herein) as a
termination for Cause under Section 2(a). The Key Officer agrees to provide the
Company with at least fourteen (14) days' prior written notice of his voluntary
cessation of employment hereunder, subject to the Company's right to waive, upon
notice to the Key Officer, such requirement and accelerate the effectiveness of
the Key Officer's voluntary cessation of employment to an earlier time and date
(but not earlier than the date of the Key Officer's giving of notice of his
voluntary cessation of employment to the Company), it being mutually understood

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and agreed that the Company shall to continue to pay the Key Officer his
compensation and benefits during the time of continued employment, if any,
following the Key Officer's notice of his voluntary cessation of employment up
through the effective date of termination. A termination of the Key Officer's
employment with the Company during the Retention Period or the Extension Period
by the Key Officer for Good Reason shall be treated as a termination without
Cause under Section 2(c).

          (e) Status upon Termination. The termination of the Key Officer's
employment hereunder, for any reason whatsoever, shall constitute the
termination of this Agreement (subject to Section 6(i) hereof) and the Key
Officer's effective termination from any and all positions of employment with
the Company and all of its affiliates, unless otherwise mutually agreed to by
the parties hereto.

     3.   NON-SOLICITATION AND CONFIDENTIALITY.
          ------------------------------------

          (a) Non-solicitation. Without limiting any other non-solicitation
restrictions previously agreed to by the Key Officer as part of his employment
arrangement with the Company, while an employee of the Company and during any
Covered Period, the Key Officer agrees not to (i) solicit any employee of the
Company or any of the Company's affiliates to leave the employ of the Company or
such affiliate nor to hire any of the foregoing persons; provided, however, by
way of clarification, the Key Officer shall not be deemed in breach of this
clause (i) (A) in the event he or his new employer launches a general job search
(through advertisement, job posting, or recruiter) that does not exclusively
target the Company's employees or (B) in the event he or his new employer hires
an employee of the Company or any of its affiliates who initiated employment
discussions with the Key Officer or his new employer or who responded to a
general job search campaign or recruiter inquiry that did not exclusively target
the Company's employees; or (ii) solicit or cause to be solicited the business
of any current customer or client of the Company or any of the Company's
affiliates with respect to any line of business engaged in (or planned to be
engaged in) by the Company, whether now existing or hereafter established,
provided, however, the Key Officer shall not be deemed in breach of this clause
(ii) as a result of mass marketing campaigns aimed at prospects on customer
lists obtained by the Key Officer or his new employer from sources other than
the Company, and not in violation of this Agreement, and which do not expressly
target the Company's customers or clients in particular.

          (b) Confidentiality. Without limiting any other non-disclosure
obligations previously agreed to by the Key Officer as part of his employment
arrangement with the Company, during and after the term of this Agreement, the
Key Officer shall not, except as may otherwise be required by law, directly or
indirectly disclose to any person or entity, or use or cause to be used in any
manner adverse to the interests of the Company or any affiliate thereof, any
Confidential Information (as defined below). The Key Officer agrees that, upon
the termination of the Key Officer's employment with the Company, all tangible
Confidential Information and Company property and duplicates thereof in the

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possession or control of the Key Officer, in any form or format, shall forthwith
be returned to the Company and shall not be retained by the Key Officer or
furnished or communicated to any third party in any form whatsoever. Prior to
any disclosure of Confidential Information required by law, the Key Officer
shall provide prompt notice thereof to the Company so as to allow the Company to
seek appropriate injunctive relief and shall reasonably assist the Company in
its efforts to limit such disclosure. The Key Officer further acknowledges and
agrees to abide by his continuing obligation to not make use of any material
non-public information with respect to the Company in a manner violative of
applicable securities laws.

     As used in this Section 3(b), the term "CONFIDENTIAL INFORMATION" shall
mean the following: (i) information disclosed to the Key Officer or known by the
Key Officer as a consequence of the Key Officer's relationship with the Company
and any affiliate thereof, not generally known in the industry of the Company's
(or an affiliate's) business, about the Company's or an affiliate's business,
employees, customers, directors, officers, partners, or shareholders; sales or
marketing methods; business plans, methods and forecasts; service locations;
customer, prospect and vendor lists; finances; or trade marks, trade secrets and
other intellectual property, including without limitation, material non-public
information about the Company's operations or business; (ii) information
disclosed to the Key Officer or known by the Key Officer as a consequence of the
Key Officer's relationship with the Company, or any affiliate thereof, not
generally known in the businesses in which the customers of the Company or its
affiliates are or may be engaged, about the business, products, processes, trade
information and services of any such customer; and (iii) the terms of this
Agreement, except to the extent that this Agreement has been publicly disclosed
by the Company pursuant to applicable securities laws or the regulations of a
governing exchange or market on which the Company's shares of common stock are
then traded; provided, however, that the Key Officer may disclose the terms of
this Agreement to his immediate family, tax and legal advisors, or as required
by law.

          (c) Severability. The invalidity or unenforceability of this Section 3
in any respect shall not affect the validity or enforceability of this Section 3
in any other respect, or of any other provision of this Agreement. In the event
that any provision of this Section 3 shall be held invalid or unenforceable by a
court of competent jurisdiction by reason of the scope or the duration thereof
or for any other reason, such invalidity or unenforceability shall attach only
to the particular aspects of such provision found invalid or unenforceable as
applied and shall not affect or render invalid or unenforceable any other
provision of this Section 3 or the enforcement of such provision in other
circumstances, and, to the fullest extent permitted by law, this Section 3 shall
be construed as if the scope or the duration of such provision or other basis on
which such provision has been challenged had been more narrowly drafted so as
not to be invalid or unenforceable, so that the Agreement is construed broadly
so as to capture as much of the original intent as possible.

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     4.   NO DISPARAGING STATEMENTS.
          -------------------------

          The Key Officer and the Company mutually agree to refrain, during the
Covered Period, from making any disparaging statements, either orally or in
writing, about the other party, or, in the case of the Key Officer, any
affiliate of the Company or any director, officer, security holder, commercial
partner, employee, agent or other representatives of the Company, or any
affiliate thereof. The foregoing shall not restrict the Company from disclosing
to third parties the Key Officer's termination of employment with the Company.

     5.   INJUNCTIVE RELIEF.
          -----------------

          The Key Officer acknowledges and agrees that the Company and its
affiliates are engaged in a highly competitive business and that the protections
of the Company and each such affiliate set forth in Sections 3 and 4 of this
Agreement are fair and reasonable and are of vital concern to the Company and
its affiliates. Further, the Key Officer acknowledges and agrees that monetary
damages for any violation of Sections 3 or 4 of this Agreement will not
adequately compensate the Company and its affiliates with respect to any such
violation. Therefore, in the event of a breach by the Key Officer of any of the
terms and provisions contained in Sections 3 or 4 of this Agreement, the Company
(and/or its affected affiliates) shall be entitled to institute legal
proceedings to obtain damages for any such breach and/or to enforce the specific
performance of this Agreement by the Key Officer and to enjoin the Key Officer
from any further violations. The remedies available to the Company and its
affiliates pursuant to this Section 5 may be exercised cumulatively by the
Company (and its affiliates) in conjunction with all other rights and remedies
provided by law. The Key Officer agrees that the provisions of this Section 5,
and the provisions of Sections 3 and 4, shall survive the termination or
expiration of this Agreement and the termination or expiration of the Key
Officer's employment with the Company, regardless of how the Key Officer's
employment may be or has been terminated.

     6.   MISCELLANEOUS.
          -------------

          (a) Governing Law; Disputes. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of Connecticut without regard to its conflicts of law principles.
Actions to enforce this Agreement shall be brought only in a state or federal
court located in the State of Connecticut. Each party irrevocably (a) submits to
the personal jurisdiction of such courts and waives any objection to the laying
of venue therein or any inconvenient forum and (b) consents to service of
process at the address given under Section 6(c) hereof. In the event of any
litigation arising in respect of this Agreement, the prevailing party shall be
reimbursed by the other party for all reasonable fees and expenses (including
attorneys' reasonable fees and expenses) incurred in respect of such litigation.

          (b) Modification. No provision of this Agreement may be modified,
amended, waived or discharged unless such waiver, modification, amendment or
discharge is agreed to in writing and signed by the Key Officer and a duly
authorized representative of the Company. No waiver by either party hereto at
any time of any breach by the other party hereto of, or compliance with, any

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condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. Until signed by both parties
hereto, this Agreement represents a non-binding offer only, and shall be
revocable by either party hereto upon notice to the other party.

          (c) Notices. All notices and other communications furnished or
required hereunder shall be in writing and shall be delivered to each party
hereto by personal delivery, by priority overnight delivery sent via a
nationally recognized courier (charges for the account of sender), by facsimile
transmission or by registered or certified U.S. mail, return receipt requested,
addressed as follows:

                                    if to the Company, to:

                                    DSL.net, Inc.
                                    545 Long Wharf Drive, 5th Floor
                                    New Haven, CT  06511
                                    Attn:  Chief Executive Officer
                                    Facsimile:  (203) 624-4231
                                    Telephone:  (203) 772-1000

                                    with a copy to the Company's General
                                    Counsel, at the above address, and,

                                    if to the Key Officer, to:

                                    Robert DeSantis
                                    222 Dudley Road
                                    Wilton, CT 06897
                                    Facsimile:  (203) 834-5084
                                    Telephone:  (203) 834-2266

, or to such other address as either party may specify by notice to the other
party given as aforesaid. Such notices shall be deemed to be effective five (5)
business days after the same shall have been deposited, postage prepaid, in the
U.S. mail, upon personal delivery, if the same shall have been delivered by
hand, one (1) business day after deposit with an overnight courier, if sent via
priority overnight delivery, or upon receipt of electronic facsimile
confirmation, as the case may be. As used herein, a "BUSINESS DAY" shall mean
any weekday other than a federal U.S. holiday.

          (d) Assignment. This Agreement may not be assigned by the Key Officer.
This Agreement shall be binding upon and inure to the benefit of the Key Officer
and his executors, legal guardians and heirs, the Company, and the Company's
successors and assigns. Any assignment in contravention of this paragraph (d)
shall be null and void.
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          (e) Integration; Interpretation. This Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter expressly
contained herein. In the event of a conflict between this Agreement and any
other agreement between the parties, this Agreement shall prevail to the limited
extent of the specific subject matter of the conflict. Notwithstanding any other
term or provision of this Agreement to the contrary, nothing herein, nor the
election on the part of the Key Officer to revoke or to not execute and deliver
the Release, shall limit or reduce any rights to compensation or benefits of any
kind, including without limitation stock option acceleration rights and/or
health, dental and life insurance benefit continuation rights, owing to the Key
Officer under separate employment, severance, stock option or other agreements
between the Key Officer and the Company, it being mutually understood and agreed
that the Key Officer's execution and delivery of the Release is in consideration
of the Company's provision to the Key Officer of the compensation and benefits
set forth in this Agreement to which the Key Officer is not otherwise entitled.

          (f) Invalidity. If any provision of this Agreement shall be determined
by any court of competent jurisdiction to be unenforceable or invalid to any
extent, the remainder of this Agreement shall not be affected thereby, and this
Agreement shall be construed to the fullest extent possible so as to give effect
to the intentions of the provision found unenforceable or invalid.

          (g) Headings. All headings contained in this Agreement are for
reference purposes only and shall not in any way effect the meaning or
interpretation of any provision or provisions of this Agreement.

          (h) Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

          (i) Survival. This Agreement shall terminate upon the earlier to occur
of the termination of the Key Officer's employment with the Company or 11:59
p.m., Eastern Time, on December 31, 2004; provided, however, the operative
provisions of this Agreement which, by logical context, are necessary to
interpret and enforce this Agreement so as to give effect to the parties' intent
shall survive any such termination or expiration.

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          IN WITNESS WHEREOF, the parties have executed this Agreement,
effective as of the date above written.

                                    DSL.NET, INC.:

                                    By: /s/ David F. Struwas
                                        --------------------
                                    Name:  David F. Struwas
                                    Title:  Chairman & Chief Executive Officer

                                    KEY OFFICER:

                                    /s/ Robert DeSantis
                                        --------------------
                                    Name: Robert DeSantis

Attachment:
-----------

Exhibit A - Release

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                               RELEASE AND WAIVER
                               ------------------

     This Release and Waiver (this "Release"), dated as of ________ __, ____, is
entered into by and between Robert DeSantis, an individual residing at
_______________________________ (the "Employee"), and DSL.net, Inc., a Delaware
corporation having a principal place of business at 545 Long Wharf Drive, 5th
Floor, New Haven, CT 06511 (the "Company").

                              W I T N E S S E T H:
                              --------------------

     WHEREAS, the Employee has heretofore been employed by the Company, and is a
party to that certain Compensation Agreement, dated as of January 1, 2004, by
and between the Employee and the Company (the "Agreement");

     WHEREAS, the Employee's employment with the Company has been terminated (or
is being terminated commensurate herewith) as of the date hereof; and

     WHEREAS, as a condition to the payment to the Employee of certain payments
and benefits described in the Agreement, the Agreement requires that the
Employee execute and deliver this Release in favor of the Company;

     NOW, THEREFORE, in consideration of the foregoing and the promises and
covenants set forth herein, the Employee and the Company agree as follows:

     1.   RELEASE BY THE EMPLOYEE. In consideration of the mutual promises
contained herein, the Employee hereby releases and forever discharges the
Company, its past and present affiliates and its and their past and present
security holders, directors, officers, representatives, agents, employees,
attorneys, employee benefit plans and their fiduciaries, and their successors
(all collectively referred to hereinafter as the "Released Parties"), from any
and all claims, charges, complaints, liens, demands, causes of action,
obligations, damages and liabilities (all hereinafter referred to as a "Claim"),
known or unknown, matured or unmatured, fixed or contingent, that he ever had,
now has or may hereafter claim to have against the Released Parties arising
directly or indirectly out of, or in any way connected with or based upon, or
related in any way to, his employment by the Company, or his termination of
employment with the Company, including, but not limited to, any Claim under
local, state or federal law based on a claim of discrimination on the basis of
age, race, color, religion, creed, sex, sexual harassment, sexual orientation,
marital status, national origin, ancestry, present or past history of physical
or mental disability or handicap, learning disability or veterans status, or
based upon any other status or category protected under law, infliction or
commitment of any tort, including wrongful termination of employment, and breach
of contract, whether actual or implied or whether written or oral, and any
associated attorneys' fees and expenses, in any case, through the date hereof.
This waiver specifically refers to rights or Claims arising under the Federal
Age Discrimination in Employment Act, 29 U.S. Code ss. 626(f). Other than Claims
which may arise or accrue out of the subject matter of the Claims released
above, the Employee does not waive rights or Claims against the Released Parties

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that may arise after the date hereof. The Employee waives rights or Claims in
exchange for the consideration referred to in the Agreement (the "Benefits"),
which consideration is in addition to anything of value from the Company to
which the Employee already is entitled.

     2.   SETTLEMENT OF AMOUNTS DUE. The Employee accepts the Benefits set forth
in the Agreement, together with any payments and benefits previously provided by
the Company to him, as full, complete and unconditional payment, settlement,
accord and/or satisfaction of any and all obligations and liabilities of the
Released Parties to the Employee, and with respect to all Claims that could be
asserted by the Employee against the Released Parties arising out of the
Employee's employment and/or other relationship with the Company, its
subsidiaries and/or affiliates, or any change in and/or cessation of such
employment or relationship, including, without limitation, any and all Claims
for wages, salary, vacation pay, compensation, draws, incentive pay, bonuses,
stock, stock options, deferred compensation, commissions, severance pay,
attorney's fees, ownership or equity interests in the Company, exemplary damages
or other benefits, costs or sums.

     3.   DENIAL OF ADMISSION OF LIABILITY. The Employee acknowledges that this
Release does not constitute an admission or concession by any Released Party of
any liability or of any violation of any law in any jurisdiction on account of
any of the Claims of the Employee which may have existed up to the date hereof.

     4.   FORFEITURE OF PAYMENTS. The Employee acknowledges and agrees that the
Benefits are being provided by the Company as consideration for the execution of
this Release, and that he is not otherwise entitled to the Benefits. Therefore,
the Employee waives his right to the consideration of the Benefits and agrees
that he will return to the Company or reimburse the Company for the Benefits if
he makes or files any Claim released under the provisions of this Release, or
materially breaches any other terms and conditions of this Release or the
Agreement, or revokes this Release pursuant to Section 10 hereof (except to the
extent application of the foregoing clause would invalidate any waiver given
hereunder). The Employee recognizes and agrees that any waiver of his right to
the Benefits provided by the Company under the Agreement shall not limit in any
way the Company's ability to enforce any of its rights under the Agreement, this
Release or applicable law.

     5.   SUCCESSORS AND ASSIGNS. This Agreement shall bind, and shall inure to
the benefit of, the parties' respective heirs, executors, guardians, trustees,
administrators, successors, assigns and legal representatives.

     6.   COOPERATION BY THE EMPLOYEE. The Employee covenants and agrees to
fully cooperate with the reasonable requests of any of the Released Parties in
the defense or prosecution of any claims or actions which relate to the business
conducted by the Released Parties during such time as the Employee was employed
by the Company. The Employee also shall cooperate fully with the Released
Parties in connection with any investigation or review of any federal, state or
local regulatory authority, as any such investigation or review relates to
events or occurrences that transpired while the Employee was employed by the
Company.

     7.   VALIDITY; GOVERNING LAW; HEADINGS. Should any of the provisions of
this Release be declared or determined by any court to be illegal or invalid,
the validity of the remaining parts, terms or provisions shall not be affected

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<PAGE>
thereby and the illegal or invalid part, term or provision shall not be deemed
to be part of this Release. This Release shall be governed by the laws of the
State of Connecticut without regard to its conflicts of law rules. Any action or
proceeding against any party to this Release relating in any way to this Release
shall be brought only in the state or federal courts located in the State of
Connecticut, and each party to this Release irrevocably (i) submits to the
jurisdiction of each such court in respect of any such action or proceeding and
(ii) consents to service of process at the address given in the preamble to this
Agreement, above, or such other address as either party shall have notified the
other of, in writing (which, for the Company, may include such revised corporate
address as shall be posted on the Company's Web site (www.dsl.net, or such
successor site) or otherwise publicly disclosed, generally),for the limited and
specific purpose of prosecuting and/or defending any action regarding the
construction and/or enforcement of this Release or otherwise relating to the
matters covered by this Release. Each party to this Release irrevocably waives,
to the fullest extent permitted by applicable law, any objection that it may now
or hereafter have to the laying of venue of any such action or proceeding in the
aforementioned courts for the limited purposes described herein, and any claim
that any such action or proceeding brought in any such court has been brought in
an inconvenient forum. Section headings herein are for reference purposes only
and the language thereof shall not be afforded any interpretative intent.

     8.   ADVICE OF COUNSEL. The Employee has been advised to seek counsel of
his own choosing, he has had an opportunity to do so prior to executing this
Release and he acknowledges that he has signed this Release knowingly, freely
and voluntarily. The Employee acknowledges and agrees that he has been given a
period of at least forty-five (45) days within which to consider, execute and
deliver this Release.

     9.   COUNTERPARTS. This Release may be executed in counterparts, each of
which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

     10.  REVOCATION OF RELEASE. The Employee acknowledges and agrees that he
may revoke this Release at any time up to and including the seventh (7th) day
after his execution hereof. Any such revocation must be received in writing by
the Company by 5:00 p.m. Eastern Time on the date ending said revocation period.
If revoked, this Release shall be null and void in its entirety. This Release
shall not be enforceable or effective until the expiration of the foregoing
7-day period.

     11.  OWBPA. Attached hereto as Schedule 1 is a list identifying information
required to be disclosed to the Employee by the Older Workers' Benefit
Protection Act, 29 U.S.C. Section 621, et seq. ("OWBPA"), as applicable. The
contents of such Schedule 1 are confidential information of the Company, and may
not be disclosed by the Employee to any third party other than the Employee's
attorney (or pursuant to a court order, and then only after giving the Company
prior written notice and cooperating with the Company in its pursuit of a
protective order with respect thereto), provided said attorney agrees to
maintain the confidentiality of such information pursuant to written
confidentiality restrictions at least as restrictive as those set forth herein.

                                       iii
<PAGE>
     12.  AMENDMENT. This Release may not be amended or terminated (subject to
Section 10 of this Release) except by a written instrument executed by the
parties hereto.

     IN WITNESS WHEREOF, the parties have caused this Release to be executed and
delivered on the dates set forth below, effective as of the date first above
written.

                                    DSL.NET, INC.

                                    By:________________________
                                    Name:  ____________________
                                    Title:  ___________________
                                    Date:  ____________________

                                    ___________________________
                                    Name:  Robert DeSantis
                                    Date:  ____________________

                                       iv
<PAGE>
                                   SCHEDULE 1
                                   ----------

                                OWBPA DISCLOSURE

                                 (if applicable)

========================== ============ =================== ====================
    JOB TITLE/POSITION          AGE           SELECTED          NOT SELECTED
========================== ============ =================== ====================

-------------------------- ------------ ------------------- --------------------

-------------------------- ------------ ------------------- --------------------

-------------------------- ------------ ------------------- --------------------

-------------------------- ------------ ------------------- --------------------

-------------------------- ------------ ------------------- --------------------

-------------------------- ------------ ------------------- --------------------

-------------------------- ------------ ------------------- --------------------EXHIBIT 10.4(e)
                                                                 ---------------

                       SIXTH AMENDMENT TO CREDIT AGREEMENT
                       BY AND BETWEEN GMX RESOURCES, INC.
                          AND LOCAL OKLAHOMA BANK, N.A.

            THIS SIXTH AMENDMENT TO CREDIT AGREEMENT (the "Amendment") is
executed to be effective as of the 1st day of March, 2004 by and between GMX
RESOURCES INC., an Oklahoma corporation, ENDEAVOR PIPELINE INC., an Oklahoma
corporation, and EXPEDITION NATURAL RESOURCES INC., an Oklahoma corporation (the
"Borrowers") and LOCAL OKLAHOMA BANK (the "Bank").

                              W I T N E S S E T H:

            WHEREAS, effective October 31, 2000 Borrowers and Bank entered into
that certain Credit Agreement (the "Original Agreement") whereby Bank provided
Borrowers with a revolving line of credit in an amount governed by a Borrowing
Base which shall not exceed $15,000,000.00, as evidenced by reducing revolving
promissory note with a stated like amount of even date with the Original
Agreement (the "Original Note").

            WHEREAS, as of June 18, 2001, Borrowers and Bank amended the
Original Agreement for the first time (the "First Amendment") in order to permit
certain preferred stock dividends and to evidence certain other changes as set
forth therein.

            WHEREAS, as of May 28, 2002, Borrowers and Bank amended the Original
Agreement as amended by the First Amendment for the second time (the "Second
Amendment") in order to increase the rate of interest, include a termination
fee, alter the reporting requirements and to make such additional changes as are
set forth therein.

            WHEREAS, as of August 14, 2002 Borrowers and Bank amended the
Original Agreement as amended by the First and Second Amendments for the third
time (the "Third Amendment") in order to modify certain financial covenants as
referenced therein.

            WHEREAS, certain portions of the Original Agreement as amended by
First, Second and Third Amendments were amended by a Loan Modification and
Forbearance Agreement in May of 2003 and a Second Loan Modification and
Forbearance Agreement in June 2003 (the "Forbearance Agreements").

            WHEREAS, as of August 31, 2003 Borrowers and Bank amended the
Original Agreement, as amended by the First, Second and Third Amendments for the
fourth time (the "Fourth Amendment") in order to extend the maturity date of the
Note, and to modify certain financial covenants as set forth therein.

            WHEREAS, as of January 16, 2004, Borrowers and Bank amended the
Original Agreement, as amended by the First, Second, Third, and Fourth
Amendments for the fifth time (the "Fifth Amendment") in order to modify the
reporting requirements, modify certain financial covenants, and to permit
certain additional indebtedness (the Original Agreement as amended by
<PAGE>

the First, Second, Third, Fourth and Fifth Amendments and as further modified by
the Forbearance Agreements is referred to herein as the "Agreement")

            WHEREAS, the obligations described in the Agreement are secured by,
among other things not specifically set forth herein, certain oil and gas
properties and other properties as set forth in the Agreement; and

            WHEREAS, all capitalized terms not otherwise defined herein shall
have those meanings assigned to such terms in the Agreement;

            WHEREAS, Borrowers and Bank desire to amend the Agreement for the
sixth time in order to evidence such changes to the Agreement as more
particularly set forth herein;

            NOW THEREFORE, in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrowers and the
Bank hereby agree to amend the Agreement as follows:

            A. CHANGES TO THE AGREEMENT

            1. The reference to "March 1, 2004" in the definition of "Maturity
Date" set forth in Section 1.2 of the Agreement, Additional Defined Terms, is
hereby replaced with "September 1, 2004" in order to evidence the agreement of
the parties to extend the Maturity Date.

            2. To evidence the Borrowers' continuing obligation to repay the
Note, the Borrower shall make and deliver to the Bank the amended and restated
promissory note in the form of Annex "1" hereto attached (the "Replacement
Note"), which shall substitute and replace in its entirety the Note referred to
in the Agreement, without cancellation, novation or payment.

            3. The document attached hereto as Annex "1" shall replace in its
entirety that document attached to the Agreement as Exhibit "A".

            4. Pursuant to Section 2.9 of the Agreement, from the date hereof
until the next Borrowing Base Determination the Borrowing Base shall be
$6,310,000.00.

            5. Pursuant to Section 2.9 of the Agreement, Borrowing Base
Determinations, beginning April 1, 2004 and continuing on the first day of each
month thereafter until re-determined pursuant to Section 2.9 of the Agreement,
the Monthly Commitment Reduction shall be $90,000.00.

            6. Except as otherwise set forth above, all other terms, covenants,
and conditions of the Agreement and all loans and/or notes are unaffected by
this Amendment.

            B. REPRESENTATIONS AND WARRANTIES

            Each Borrower hereby represents and warrants to Bank that:
<PAGE>

            1. Each Borrower is a corporation, duly organized, legally existing,
and in good standing under the laws of the State of Oklahoma, and is duly
qualified as a foreign corporation and in good standing in all other states
wherein the nature of its business or its assets make such qualification
necessary.

            2. Each Borrower's execution and delivery of this Amendment and
performance of its obligations hereunder: (a) are and will be within its powers;
(b) are duly authorized by its board of directors; (c) are not and will not be
in contravention of any law, statute, rule or regulation, the terms of its
articles or incorporation and bylaws, nor of any agreement or undertaking to
which any Borrower or any of its properties are bound; (d) do not require any
consent or approval (including governmental) which has not been given; and (e)
will not result in the imposition of liens, charges or encumbrances on any of
its properties or assets, except those in favor of Bank hereunder.

            3. This Amendment, when duly executed and delivered, will constitute
the legal, valid and binding obligations of Borrowers, enforceable in accordance
with its terms.

            4. All financial statements, balance sheets, income statements and
other financial data which have been or are hereafter furnished to Bank by
Borrowers to induce Bank to make the loans hereunder due, and as to subsequent
financial statements will, fairly represent each Borrower's financial condition
as of the dates for which the same are furnished. All such financial statements,
reports, papers and other data furnished to Bank are and will be, when
furnished: prepared in accordance with generally accepted accounting principles
consistently applied; accurate and correct in all material respects; and
complete insofar as completeness may be necessary to give Bank a true and
accurate knowledge of the subject matter. Since the date of the last such
financial statements, no material adverse change has occurred in the operations
or condition, financial or otherwise and other financial data provided to Bank;
of any Borrower, nor, to the best of their knowledge, has any Borrower incurred,
any material liabilities or made any material investment or guarantees, direct
or contingent, in any single case or in the aggregate, which has not been
disclosed to Bank.

            5. The Borrowers are the sole and lawful owner of the Collateral,
pledged, mortgaged or assigned by it, and Borrowers have, and as to after
acquired property or new properties will have, good right to cause the
Collateral to be hypothecated to Bank as security for the obligations described
in the Agreement, as amended hereby. Further, the ownership interests set forth
in that certain Engineering Report dated March 15, 2004 from Sproule Associates,
Inc. purported to be owned by Borrowers, or any one of them, are true and
correct and Borrowers do, in fact, own such interests in such Collateral.

            6. The Collateral set forth on that certain Engineering Report dated
March 15, 2004 from Sproule Associates, Inc. is free and clear of all mortgages,
liens and encumbrances, except for Permitted Liens. Further, Borrowers have no
invoices for labor related to such properties or materials provided to such
properties which have not been paid within 90 days from the date such invoice is
due and payable.
<PAGE>

            7. All of each Borrower's other representations and warranties set
forth in Section 8 of the Agreement, Representations and Warranties, are true
and correct on and as of the date hereof with the same effect as though made and
repeated by such Borrower as of the date hereof.

            C. CONDITIONS

            Bank's obligations under the Agreement, as hereby amended, are
subject to the following conditions:

            1. Bank and Borrowers shall have executed and delivered this
Amendment.

            2. Borrowers shall have paid Bank an amendment fee in the amount of
$25,000.00.\

            3. Borrowers shall have executed and delivered such mortgages or
deeds of trust as are necessary, in Bank's discretion, to mortgage to Bank 100%
of all of Borrowers' Oil and Gas Properties given value by Bank in the Borrowing
Base as well as any interest of any Borrower in properties currently being
developed either (i) through the joint venture agreement with Penn-Virginia Oil
and Gas Corporation or (ii) with proceeds from Borrowers' recently completed
subordinated debt issue.

            4. Borrowers shall, or will from time to time, have executed such
additional mortgages, deeds of trust, financing statement and such other
documents as are deemed necessary by Bank in order to perfect a lien in favor of
Bank in and to those Oil and Gas Properties necessary to achieve the percentages
required by the covenants set forth herein.

            5. Each Borrower's representations and warranties set forth in
Section B hereof shall be true and correct on and as of the date hereof, and the
date of any subsequent advance with the same effect as though such
representation and warranty had been on and as of such date.

            6. Each Borrower shall have delivered copies of any amendments to
each such Borrower's Articles of Incorporation and/or Certificate of
Incorporation and all amendments to each such Borrower's by laws occurring
subsequent to the date of the Original Agreement accompanied by a certificate
issued by the secretary or an assistant secretary of the Borrowers, to the
effect that each such copy is correct and complete or a certificate that no such
amendments have occurred;

            7. Each Borrower shall have delivered a current certificate of
incumbency and signature of all of each Borrower's officers who are authorized
to execute Loan Documents on behalf of such Borrower, executed by the secretary
or an assistant secretary of such Borrower;

            8. Each Borrower shall have delivered copies of corporate
resolutions approving this Sixth Amendment, the Replacement Note and any other
documents required by Bank to be executed by each Borrower authorizing the
transactions contemplated herein and therein, duly adopted by the board of
directors of each of the Borrowers, accompanied by a certificate of the
respective secretary or an assistant secretary of each Borrower, to the effect
that such copies are true and correct copies of resolutions duly adopted at a
meeting or by unanimous consent of the board of directors of each Borrower and
that such resolutions constitute all the resolutions
<PAGE>

adopted with respect to such transactions, have not been amended, modified, or
revoked in any respect, and are in full force and effect as of the date of such
certificate;

            9. Borrowers shall have satisfied all conditions set forth in the
Agreement.

            10. As of the date hereof, and the date of any subsequent Advance,
no Event of Default nor any event which, with the giving of notice or lapse of
time, would constitute an Event of Default shall have occurred and be
continuing.

            D. OTHER NOTICES, COVENANTS AND MISCELLANEOUS TERMS

            1. As set forth above, the Bank hereby notifies Borrower that from
the date hereof the Borrowing Base shall be $6,310,000.00 and the Monthly
Commitment Reduction is $90,000.00 beginning April 1, 2004.

            2. Except as expressly amended and supplemented hereby, the
Agreement shall remain unchanged and in full force and effect, and the same is
hereby ratified and extended.

            3. The obligations described in the Agreement, as amended hereby,
including but not limited to the indebtedness evidenced by the Note executed in
conjunction with the Agreement, shall continue to be secured by the Collateral,
without interruption or impairment of any kind.

            4. To the extent the amendment fee referred to in Section C.2 above
is not paid prior to closing Borrower shall have until April __, 2004 to remit
such fee to the Bank. Borrower's failure to make such a payment by April __,
2004 shall constitute a default pursuant to Section 9.1(a) of the Agreement
entitling the Bank to pursue the remedies set forth in Section 9.2(b) of the
Agreement.

            5. Borrowers agree to execute such additional mortgages, deeds of
trust and/or amendments to such documents already in place as Bank deems
necessary to adequately secure the loan at any time and from time to time
hereafter.

            6. The Borrowers hereby agree to pay all reasonable attorney fees
and legal expenses incurred by Bank in preparation, execution and implementation
of this Amendment and any mortgages, guaranty agreements, subordination
agreements, deeds of trust, security agreements, pledge agreements or any
amendments thereto.

            7. This Amendment shall be construed in accordance with and governed
by the laws of the State of Oklahoma, and shall be binding on and inure to the
benefit of the Borrower and Bank, and their respective successors and assigns.
All obligations of the Borrowers under the Agreement and all rights of Bank and
any other holder of the Note, whether expressed herein or in any Note, shall be
in addition to and not in limitation of those provided by applicable law.
Borrowers irrevocably agree that, subject to Bank's sole election, all suits or
proceedings arising from or related to the Agreement, as amended, or the Note
may be litigated in courts (whether State or Federal) sitting in Oklahoma City,
Oklahoma, and the Borrowers hereby irrevocably waives any objection to such
jurisdiction and venue.
<PAGE>

            8. This Amendment may be executed in as many counterparts as are
deemed necessary or convenient, and it shall not be necessary for the signature
of more than any one party to appear on any single counterpart. Each counterpart
shall be deemed an original, but all shall be construed together as one and the
same instrument. The failure of any party to sign shall not affect or limit the
liability of any party executing any such counterpart.

            E. RELEASE. Borrowers hereby remise, release, and forever discharge
Bank, its successors and assigns, its officers, directors, employees, agents and
attorneys (collectively, "Released Parties") of and from all actions, causes of
action, suits, proceedings, debts, contracts, claims, damages, liability and
demands whatsoever, known or unknown, in law or equity, which Borrowers ever had
or now has, by reason of any matter, cause, or thing whatsoever arising from the
actions or inactions of the Released Parties in any matter relating to the
Agreement, Note, and other Loan Documents (collectively, "Released Matters");
and Borrowers covenant not to sue any of the Released Parties with respect to
the Released Matters. The release and covenant not to sue set forth in this
provision are intended by the parties to be as broad and comprehensive as
possible.

            So executed effective the 1st day of March, 2004.

                                       BORROWERS:
                                       GMX RESOURCES INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

                                       ENDEAVOR PIPELINE INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

                                       EXPEDITION NATURAL RESOURCES INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer
<PAGE>

                                       BANK:

                                       LOCAL OKLAHOMA BANK

                                       /s/ John K. Slay, Jr.
                                       -----------------------------------------
                                       By:         John K. Slay, Jr.
                                       Title:      Senior Vice President
<PAGE>

                 EXHIBIT TO SIXTH AMENDMENT TO CREDIT AGREEMENT
                       BY AND BETWEEN GMX RESOURCES, INC.
                          AND LOCAL OKLAHOMA BANK, N.A.

                   THIRD AMENDED AND RESTATED PROMISSORY NOTE
                            (REDUCING REVOLVING NOTE)

$15,000,000.00                                           Oklahoma City, Oklahoma
                                                                   March 1, 2004

            FOR VALUE RECEIVED, the undersigned, GMX Resources Inc., an Oklahoma
corporation, Endeavor Pipeline Inc., an Oklahoma corporation, and Expedition
Natural Resources Inc., an Oklahoma corporation (jointly and severally, the
"Borrowers"), hereby jointly and severally promise to pay to the order of LOCAL
OKLAHOMA BANK ("Bank"), on or before September 1, 2004 (the "Maturity Date"),
the principal sum of Fifteen Million and No/100 Dollars ($15,000,000.00), or as
much thereof as is disbursed and remains outstanding hereunder, together with
interest on the unpaid balance from time to time outstanding at the rates
hereinafter provided.

            Prior to the occurrence of any Event of Default (as defined in the
Agreement referred to below), the unpaid principal balance from time to time
outstanding hereunder shall bear interest at a fluctuating rate per annum equal
to the Base Rate (defined below) plus one percent (1%). Upon notice from Bank to
Borrowers of the occurrence of any Event of Default, the unpaid principal amount
from time to time outstanding under this Note shall bear interest at a
fluctuating rate per annum equal to the Default Rate as set forth below (but not
less than the Base Rate in effect on the date of the occurrence of the Event of
Default). The interest rate applicable to this Note shall change as of the
effective date of any change in the Base Rate. The interest rate will be
calculated on the basis of actual number of days elapsed, but computed as if
each calendar year consisted of a 360-day year. As used herein, "Base Rate"
means, at any time, that rate of interest equal to the interest rate then most
recently announced or published in the "Money Rates" section of THE WALL STREET
JOURNAL, as the "Prime Rate" which such rate may not be the lowest interest rate
charged by the Bank, and which Base Rate shall change upon any change in such
announced or published Base Rate, all without notice to the Borrowers.

            If any Event of Default occurs and is not cured within the
applicable cure period, if any, described in the Agreement, in lieu of the
interest rate provided in this Note, all sums owing by Borrowers to Bank shall
bear interest at the rate equal to five percent (5%) per annum in excess of the
Base Rate, accrued from the date after the applicable grace period to cure the
Event of Default, to the date on which such Event of Default is cured to the
reasonable satisfaction of the Bank.

            Beginning on the first (1st) day of April, 2004 and continuing on
the first (1st) day of each month thereafter, Borrowers shall, at a minimum,
make a payment of all accrued but unpaid interest on this Note. If the Loan
Balance exceeds the Commitment Amount as a result of a Monthly Commitment
Reduction with respect to the Loan on the first (1st) day of any month, the
Borrowers shall immediately make such principal payments as may be necessary to
reduce the Loan Balance to an amount at or below the Commitment Amount. The
entire outstanding
<PAGE>

principal balance of this Note and all unpaid interest accrued thereon shall be
due and payable on the Maturity Date.

            All payments, including prepayments, made by Borrowers, shall be
made to Bank at any one of its offices in the State of Oklahoma, on or before
2:00 p.m., local time, on the date due, in lawful money of the United States of
America and in immediately available funds. If any payment is due on a day other
than a business day, the due date thereof shall be extended to the next
succeeding business day.

            This Note is executed and delivered by Borrowers pursuant to, and is
entitled to the benefits of, that certain Restated Credit Agreement dated
effective October 31, 2000 between Borrowers and Bank as amended from time to
time and most recently by that certain Sixth Amendment to Restated Credit
Agreement of even date herewith (the "Agreement"). Reference is hereby made to
the Agreement for the terms and provisions regarding the availability of credit,
the collateral security for payment of this Note, the prepayment rights and
obligations of Borrowers, the right of the holder of this Note to accelerate the
maturity hereof on the occurrence of certain Events of Default specified
therein, and for all other pertinent purposes. This Note is the "Note" referred
to in the Agreement. All capitalized terms not otherwise defined herein shall be
defined as set forth in the Agreement.

            Upon the occurrence and during the continuation of any Event of
Default, the holder of this Note may apply payments received on any amount due
hereunder or under the terms of any instrument now or hereafter evidencing or
securing any said indebtedness as said holder may determine.

            It is the intent of Bank and Borrowers to conform strictly to all
applicable usury laws, and any interest on the principal balance hereof in
excess of that allowed by said usury laws shall be subject to reduction to the
maximum amount of interest allowed under said laws. If any interest in excess of
the maximum amount of interest allowable by said usury laws is inadvertently
paid to the holder hereof, at any time, any such excess interest shall be
refunded by the holder to the party or parties entitled to the same after
receiving notice of payment of such excess interest.

            The records of the holder of this Note shall be prima facie evidence
of the amount owing on this Note.

            If, and as often as, this Note is placed in the hands of an attorney
for collection or to defend or enforce any of the holder's rights hereunder,
Borrowers will pay to the holder hereof its reasonable attorneys' fees, together
with all court costs and other expenses paid by such holder.

            Borrowers, endorsers, sureties, guarantors and all other parties who
may become liable for all or any part of this Note severally waive demand,
presentment, notice of dishonor, protest, notice of protest, and notice of
non-payment, and consent to: (a) any and all extensions of time for any term or
terms regarding any payment due under this Note, including partial payments or
renewals before or after maturity; (b) changes in interest rates; (c) any
substitutions or release of collateral; and (d) the addition, substitution or
release of any party liable for payment of this Note.
<PAGE>

            No waiver of any payment or other right under this Note or any
related agreement shall operate as a waiver of any other payment or right. All
of the holder's rights hereunder are cumulative and not alternative. This Note
shall inure to the benefit of the successors and assigns of Bank or other holder
and shall be binding upon the successors and assigns of Borrowers.

            This Note has been delivered to and accepted by Bank in the State of
Oklahoma, is to be performed in the State of Oklahoma and shall be deemed a
contract made under the laws of the State of Oklahoma.

            The purposes of this Note is to Amend and Restate the terms of that
certain Second Amended and Restated Promissory Note (Reducing Revolving Note)
dated effective August 31, 2003. This Note does NOT pay off any outstanding
indebtedness. Rather, the purpose hereof is to amend the rate of interest
charged to outstanding balances hereunder.

            IN WITNESS WHEREOF, the undersigned has executed this instrument
effective for all purposes as of March 1, 2004.

                                       BORROWERS:

                                       GMX RESOURCES INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

                                       ENDEAVOR PIPELINE INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

                                       EXPEDITION NATURAL RESOURCES INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

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