Document:

EMPLOYMENT
AGREEMENT

     

    THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made
and entered into by and between ZST Digital Networks, Inc. (“Company”), a Delaware
corporation, and John Chen (“Employee”), effective
on the date indicated below.  (Company and Employee are sometimes
referred to herein as “party” or
collectively as the “parties.”)

     

    RECITALS

     

    WHEREAS,
the Company wishes to employ and the Employee has agreed to supply his service
in the capacity of Chief Financial Officer with duties encompassing the
operations of the Company and the Company’s subsidiaries, on the terms and
conditions set out in this Agreement, which shall supersede and replace all
prior written, oral, or implied agreements, if any, between Employee and the
Company; provided, however, the Employee shall remain bound by any
confidentiality, nondisclosure, and invention assignment agreement(s) previously
executed in favor of the Company, to the extent such ancillary agreements
exist;

     

    NOW,
THEREFORE, in consideration of the mutual promises and covenants contained
herein, and the continued employment of Employee by the Company under this
Agreement, the parties agree as follows:

     

    ARTICLE
1

     

    EMPLOYMENT

    

    Company
hereby employs Employee and Employee hereby accepts employment from Company,
effective as of the pricing date of the Company’s public offering (the “Offering”) of shares
of common stock, $0.0001 par value per share (“Common Stock”), on a
registration statement on Form S-1 (File No. 333-160343) (the “Effective
Date”).  Employee agrees to perform the services and to comply
faithfully with his obligations of employment, under the terms and conditions
specified in this Agreement, and pursuant to the policies and procedures of the
Company that may be issued from time to time.

    

    ARTICLE
2

     

    TERM

     

    Section
2.1     Initial
Term and Renewal.  The initial term of this Agreement shall be
for a period of eighteen (18) months commencing on the Effective Date (the
“Initial
Term”), unless terminated earlier pursuant to the provisions of Article 5
of this Agreement.  This Agreement shall automatically renew for an
additional one (1) year period of employment on the expiration date of the
Initial Term (each, a “Subsequent Term”),
and on each successive anniversary date thereafter (each such date, an “Expiration Date”),
unless either party gives written notice to the other party at least ninety (90)
days prior to any Expiration Date that the Agreement is not being renewed and
shall terminate on that Expiration Date, unless terminated earlier pursuant to
the provisions of Article 5 of this Agreement.  The Initial Term and
each successive one year period thereafter during which Employee shall perform
services pursuant to this Agreement shall be referred to herein as the “Term.”

    
      
         

      

      
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    ARTICLE
3

     

    COMPENSATION
AND BENEFITS

     

    Section
3.1      Base
Salary.  For
all of the services to be rendered by Employee hereunder, Company shall pay to
Employee an annual base salary of $150,000.00  (“Salary”), beginning
on the Effective Date of this Agreement.  Any base Salary payable
hereunder shall be paid in accordance with the Company’s regular payroll
practices, as in effect from time to time, and shall be subject to standard
payroll deductions and withholdings as required by applicable law.

     

    Section
3.2       Adjustment
to Salary.  Employee’s Salary may be changed from time to time
by mutual agreement of the Employee and the Company.  Any such
agreement shall be evidenced by a written amendment of this Agreement and signed
by both parties.

     

    Section
3.3       Signing
Bonus.  Within five (5) business days of the Effective Date,
Company shall pay to Employee a Signing Bonus that shall be calculated as
follows:  $410.96 per day multiplied by the number of days between
September 25, 2009 and the Effective Date.  The Signing Bonus shall be
subject to standard deductions and withholdings as required by applicable
law.

     

    Section
3.4       Payment
of Salary.  During the period of his employment with Company,
Employee is authorized by Company to access Company’s United States bank
accounts for the purpose of ensuring the timely payment of Employee’s
Salary. The Company
shall pay Employee’s salary on a quarterly basis in advance of each quarter
(e.g., the Company’s first salary payment will pay Employee for work to be
performed through December 31, 2009 for the fourth quarter of 2009, and the
Company’s second salary payment on January 1, 2019 will pay Employee work to be
performed through March 31, 2010, etc.).

     

    Section
3.5        Stock
Options.  On the Effective
Date, subject to approval by the Company’s Board of Directors and stockholders,
Employee shall be granted options (the “Initial Options”) to
purchase Twenty-Five Thousand (25,000) shares of Common Stock of the Company
with an exercise price equal to the price of the shares of Common Stock sold in
the Offering.  The Initial Options will be immediately exercisable
but, to the extent they are exercised, will be subject to a repurchase right of
the Company which will lapse as follows: 50% of the Initial Options and shares
will vest six (6) months after the Effective Date and the remaining 50% will
vest twelve (12) months after the Effective Date.  At twelve (12)
months from the Effective Date, Employee shall be granted additional options
(the “Subsequent
Options”) to purchase Twelve Thousand Five Hundred (12,500) shares of
common stock of the Company that are not immediately exercisable and which shall
vest six (6) months from the date of grant have an exercise price equal to the
closing price of the Common Stock on the date of grant.  The Initial
Options and Subsequent Options shall expire five (5) years after their
respective grant dates provided, however, that Employee remains continuously
employed by the Company during the applicable five year period.  In
the event that the Employee is terminated without “Cause” pursuant to Section
5.3 below or the Employee terminates his employment for Good Reason pursuant to
Section 5.1(ii) below, then all Initial Options or shares, as applicable, and
Subsequent Options that are not vested shall immediately vest on the date of
termination.  All options that are vested at the time of termination
of employment must be exercised within thirty (30) days of termination of
employment,  provided, however, that all options may
be immediately cancelled by the Company if Employee terminates his employment
pursuant to Section 5.1(i) below or if Employee’s employment is terminated for
“Cause,” as defined in Section 5.2 below.

    
      
         

      

      
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    Section
3.6         Medical
and Dental Benefits.  Company shall reimburse Employee for
standard corporate-style healthcare insurance coverage.

     

    Section
3.7         Company
Paid Holidays.  Employee will be eligible for all Company paid
holidays that are provided to employees of the Company.

     

    Section
3.8         Paid
Leave.  Employee shall be
entitled to accrue ten (10) days of paid leave (vacation, sick, and personal)
each year, with a total maximum accrual of ten (10) days.  Employee
may only take a maximum of ten (10) consecutive work days for paid
vacation.  In exercising paid leave, Employee shall take into
consideration his duties and shall take leave at times mutually agreeable to
Employee and the Company.

     

    Section
3.9         Reimbursement
of Expenses.  Employee shall be reimbursed for reasonable
travel, hotel, entertainment, and other business related
expenses.  Employee shall also be reimbursed up to $300 per month for
home office expenses (e.g., telephone, postal drop, and internet connection
expenses) properly and necessarily incurred by him in the discharge of his
employment duties. All reimbursement of expenses are subject to the Company’s
policies in effect at the time on pre-approval of certain business expenses and
reimbursement procedures.  Employee shall produce satisfactory
supporting vouchers, receipts, and other documentation in connection with such
expenses before such reimbursement is made in accordance with applicable Company
policy.

     

    ARTICLE
4

      

    DUTIES
AND RESPONSIBILITIES

     

    Section
4.1         Duties of
Employee.  Employee agrees to serve as Chief Financial Officer,
and will report to the Chief Executive Officer and the Company’s Board of
Directors.  Employee shall perform the duties and functions and have
the responsibilities commensurate with such position as may be assigned from
time to time.  Employee’s duties as Chief Financial Officer shall
encompass the operations of the Company and the Company’s
subsidiaries.  Employee shall use his best skills and ability,
consistent with sound business practices, to faithfully and diligently perform
his duties and responsibilities hereunder.  Employee shall devote his
full working time and attention to the business of the Company and its related
entities.

    
      
         

      

      
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    During
his employment with Company, Employee shall not (i) engage in any other
employment or business opportunity outside of his employment with the Company
that may interfere with his ability to perform his duties under this
Agreement, without
the express written authorization of the Company; or (ii) engage, directly or
indirectly, in any other employment, business, commercial, or professional
activity (whether or not pursued for pecuniary advantage) that is or may be
competitive with, or that might create a conflict of interest with, the business
of Company or Company’s related entities or affiliates.

    

    Section
4.2         Compliance
with Law.  Employee agrees to comply with any and all
governmental laws, regulations, and policies in connection with his actions as
an employee of the Company.  Employee shall conduct himself in
accordance with the highest business standards as are reasonably and customarily
expected of such position.  Employee agrees to fully cooperate and
participate in any investigation conducted by the Company relating to its
interests or as may be required by applicable law.

    

    Section
4.3          Policies
and Procedures.  Employee is expected to abide by all Company
policies and procedures.  Company may issue policies, rules,
regulations, guidelines, procedures or other informational material, whether in
the form of handbooks, memoranda, or otherwise, relating to its employees and
Employee agrees to comply with all such policies applicable to
Employee.

    

    Section
4.4          Confidential
Information and Trade Secrets.  Employee acknowledges that, as
a condition of his employment hereunder, Employee agrees to execute and abide by
the Company’s confidentiality, non-disclosure, invention assignment, and similar
agreements that are presented to Employee to protect the Company’s trade secret,
proprietary and business interests.  Employee hereby acknowledges and
agrees that such agreements shall survive termination of employment and this
Agreement and shall remain in force following such termination regardless of the
reason for the termination.

     

    ARTICLE
5

    

    TERMINATION

     

    Employee’s
employment relationship with the Company will terminate upon the happening of
one of the following defined events, which shall effect a termination of this
Agreement on the effective date of any such termination of employment (the
“Termination Date):

     

    Section
5.1           The
Employee’s Right to Terminate.  The Employee may terminate his
obligations under this Agreement during the Term:

     

    (i)           Termination by Employee for
Convenience:  at any time upon providing thirty (30) day notice
in writing to the Company; or

     

    (ii)           Good
Reason:  for “Good Reason.”  “Good Reason” shall mean
any of the following, without the Employee’s written consent: (a) upon a
material breach or default of any term of this Agreement by the Company, or (b)
any material reduction in the Employee’s duties, position, authority or
responsibilities with the Company relative to the duties, position, authority or
responsibilities in effect immediately prior to such reduction; provided that
Company has not cured or remedied such Good Reason within fifteen (15) days
after written notice of the Good Reason from the Employee.

    
      
         

      

      
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    Section
5.2           The
Company’s Right to Terminate for “Cause”.  The Company may
immediately terminate the Employee’s employment for “Cause” under this Agreement
at any time during the Term upon the occurrence of any of the following
events:

     

    (i)          
 Employee commits an act or acts of dishonesty, fraud, embezzlement, or
misappropriation of funds or proprietary information in connection with his
employment duties or responsibilities; or

     

    (ii)           Employee’s
conviction of, or plea of nolo contendere to, a felony or a crime involving
moral turpitude (other than minor traffic violations); or

     

    (iii)          Employee
materially breaches his obligations under this Agreement, including failure to
perform his job duties satisfactorily or failure to follow Company policies or
any directive of the Company, if such failure or refusal is not cured by
Employee within ten (10) days after receiving written notice of such from the
Company; or

     

    (iv)          Employee’s
willful or gross misconduct in connection with his employment
duties.

    

    Section
5.3           Company’s
Right to Terminate Without Cause. The Company may terminate the
Employee’s employment under this Agreement at any time during the Term at the
discretion of the Company, without Cause, after the Employee has received thirty
(30) days prior written notice from the Company.

    

    Section
5.4           Death or
Disability.  The Employee’s employment under this Agreement
shall also terminate upon the occurrence of the following:

     

    (i)           the
Employee’s employment under this Agreement shall automatically terminate upon
the occurrence of the death of the Employee during the Term of this Agreement;
or

     

    (ii)          notice
of termination from the Company after the Employee has become permanently
disabled, or disabled for a period exceeding 180 consecutive days or 180 days
calculated on a cumulative basis over any one year period during the Term of
this Agreement, such that Employee is no longer able to perform the essential
functions of his job even with reasonable accommodation pursuant to applicable
law.

     

    Section
5.5           Compensation
Due to the Employee on Termination. In the event of the
termination of the Employee’s employment under this Agreement pursuant to any
provision as set forth above, the Company shall pay to the Employee on the date
of termination only the amount of Salary pursuant to Section 3.1 of this
Agreement that is earned but unpaid as of the date of termination, as well as
any accrued but unused Paid Leave, and any unreimbursed business expenses
incurred as of the termination date pursuant to Sections 3.6 and 3.9 of this
Agreement, but Employee shall not be entitled to receive any other payments,
compensation or benefits from the Company under this Agreement, except as
expressly set forth below:

    
      
         

      

      
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    (i)         
  In the event of the termination of the Employee’s employment under
this Agreement pursuant Section 5.1(ii) (Good Reason) above, the Company shall
pay to the Employee a severance payment in an amount equal to three (3) months
of the Employee’s annual Salary at the time of termination pursuant to Section
3.1 of this Agreement, less applicable statutory deductions and withholdings, to
be paid, at the Company’s discretion, in a lump sum  or such regular
intervals over the 3 month period as shall be determined by the Company,
provided that Employee signs a standard release of all claims as presented by
the Company, plus any amounts set forth in Section 5.5(iv) below.

    

    (ii)           In
the event of the termination of the Employee’s employment under this Agreement
pursuant Section 5.3 (Company’s Right to Terminate Without Cause) above, the
Company shall pay to the Employee a severance payment in an amount equal to the
Employee’s annual Salary at the time of termination pursuant to Section 3.1 of
this Agreement for remainder of the Initial Term or any Subsequent Term, as
applicable, less applicable statutory deductions and withholdings, to be paid,
at the Company’s discretion, in a lump sum or such regular intervals over the
period as shall be determined by the Company, provided that Employee signs a
standard release of all claims as presented by the Company.

    

    Section
5.6           Payment
in Lieu of Notice.  Company reserves
the right (but is not obligated) to make a payment in lieu of any notice of
termination of employment which Company or Employee is required to
give.

     

    Section
5.7          Return of
Company Property.  Upon the termination of employment for any
reason, Employee shall promptly return to Company any and all equipment or
property owned by Company including, but not limited to, any and all client
materials, copies of documents and photographs, models, prototypes, tools, and
supplies, as well as inventory, records, documents, manuals, reports, customer
lists, operations manuals, and any other written information, records, or books
relating in any manner whatsoever to the business of Company, whether prepared
by Company or otherwise coming into Employee’s possession.

     

    ARTICLE
6

     

    MISCELLANEOUS

     

    Section
6.1           Notices.  Any
notice given under this Agreement shall be sufficient if given in writing and
personally delivered or sent by registered or certified mail, return receipt
requested, postage prepaid, to the Company at its principal place of business or
to Employee at his last known residence address.

     

    Section
6.2            Governing
Law.  This Agreement shall be interpreted, construed, and
governed under and according to the laws of the State of
Delaware.

    
      
         

      

      
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    Section
6.3            Change,
Modification, Waiver.  No change or modification of this
Agreement shall be valid unless it is in writing and signed by each of the
parties hereto.  No waiver of any provision of this Agreement shall be
valid unless it is in writing and signed by the party against whom the waiver is
sought to be enforced.  The failure of a party of insist upon strict
performance of any provision of this Agreement in any one or more instances
shall not be construed as a waiver or relinquishment of the right to insist upon
strict compliance with such provision in the future.

     

    Section
6.4            Entire
Agreement.  This Agreement constitutes the entire, final and
complete and exclusive agreement between the parties regarding the subject
matter hereof and supersedes all previous agreements or representations, whether
written, oral or implied, with respect to employment by the Company provided,
however, the Employee shall remain bound by any confidentiality, nondisclosure,
and invention assignment agreement(s) previously executed in favor of the
Company, to the extent such ancillary agreements exist.  There are no
terms, promises, representations, agreements, or understandings between the
parties relating to the subject matter of this Agreement, which are not fully
expressed herein.

     

    Section
6.5            Assignability.  This
Agreement is personal in nature, and neither this Agreement nor any part of any
obligation herein shall be assignable by Employee.  The Company shall
be entitled to assign this Agreement to any affiliate or successor of the
Company that assumes the ownership or control of the business of the Company,
and the Agreement shall inure to the benefit of any such successor or
assign.

     

    Section
6.6             Legal
Construction.  If any one or more of the provisions contained
in this Agreement shall for any reason be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision hereof, and this Agreement shall be
construed as if such invalid, illegal, or unenforceable provision had never been
contained herein.  In addition, if any court of competent jurisdiction
determines that any of the provisions set forth herein are unenforceable because
of the duration or geographic scope of such provision, such court shall have the
power to reduce the duration or scope of such provision as the case may be, to
the extent necessary to render such provision enforceable.

     

    Section
6.7             Paragraph
Headings.  The paragraph headings used in this Agreement are
included solely for convenience and shall not affect or be used in connection
with the interpretation of this Agreement.

     

    Section
6.8             Legal
Fees and Costs.  Except as otherwise provided herein, in the
event that any party hereto shall institute any litigation or other proceeding
in order to construe or enforce this Agreement, the prevailing party therein
shall be entitled to recover its reasonable attorney’s fees and costs incurred
in connection therewith.

     

    Section
6.9             Interpretation.  This
Agreement has been negotiated at arm’s length and between and among parties
sophisticated and knowledgeable in the matters dealt with in this
Agreement.  Accordingly, none of the Parties shall be presumptively
entitled to have any provisions of the Agreement construed against any of the
other Parties in accordance with any rule of law, legal decision, or doctrine,
such as the doctrine of contra
proferentem, that would require interpretation of any ambiguities in this
Agreement against the party that has drafted it.

     

    [SIGNATURES
ON FOLLOWING PAGE]

    
      
         

      

      
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    WHEREFORE,
the parties hereto have executed this Agreement on the dates indicated below, to
be effective as of the Effective Date, regardless of the dates actually
signed.

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Dated:  October
      8, 2009

                            	
                              ZST
      DIGITAL NETWORKS, INC.

                            
	 	 	 
	 
      	
                              By:

                            	
                                /s/ Zhong Bo

                            
	 
      	
                              Name:

                            	
                                
      Zhong Bo

                            
	 
      	
                              Title:

                            	
                                
      Chief Executive Officer

                            
	 
      	 
      	 
      
	
                              Dated:  October
      8, 2009

                            	
                              JOHN
      CHEN

                            
	 	 
	 
      	
                              /s/ John Chen

                            

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        -8 of
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    September
4, 2009

    

    Mr.
William W. Kelly, Jr.

    Mr. Alvin
Kirk

    Classic
Oil & Gas Resources, Inc.

    416 West
Brannon Road

    Nicholasville,
KY  40356

    

    
      	
              Re:

            	
              Letter
      of Intent to Acquire Certain Classic Assets in Boone, Logan,McDowell,
      Mingo, and Wyoming Counties, West
Virginia

            

    

    

    Dear Bill
and Alvin:

    

    This letter is submitted on behalf of
Velocity Energy Partners
LP, by Velocity Energy
Limited LLC, its General Partner (individually or collectively, "Velocity"), to enter into a
Transaction (as defined
below) with Classic Oil &
Gas Resources, Inc. ("Classic"), with any of Velocity and Classic being individually
referred to herein as a “Party” or collectively as the
“Parties”, to acquire
the Classic Assets (as
defined below), subject to the following terms and conditions:

    

    
      	
              1.

            	
              TRANSACTION.   The
      Parties intend that Classic will sell to Velocity, and Velocity will
      purchase, by means of an asset sale to be held on or about September 10,
      2008, or as otherwise mutually agreed (the “Closing”), the
      following Classic Assets:

            

    

    

    
      A.      
(1)        
50% WORKING INTERESTS:
Fifty
Percent (50%) of Classic’s working interests in the active, open, shut-in, or
temporarily abandoned (but not plugged and abandoned) proved, developed,
producing (“PDP”) oil or
gas wells and proved, developed, non-producing and behind pipe wells (“PDNP & BP”), which Fifty
Percent (50%) interests are set forth and identified on the schedules
attached hereto as Exhibits A-1
and A-2, respectively, and made a
part hereof, except for wells in which Summit Highwall Mining Services, Inc.
(“Summit”) has
contracted with Classic to purchase certain additional interests proportionate
to its respective working interest percentages, which wells are identified on
the schedule attached hereto as Exhibit A-3 and made a part
hereof (“Summit Wells”)
in which Velocity will acquire 50% of Classic’s working interest
remaining after any such acquisition by Summit (individually or
collectively, 50% of such working interests identified on Exhibits A-1, A-2, and A-3 constitute the “50% Working Interests”);
and

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      (2)      
100%
WORKING INTERESTS:  One Hundred Percent
(100%) of Classic’s working interests in the active, open, shut-in, or
temporarily abandoned (but not plugged and abandoned) proved, developed,
producing (“PDP”) oil or gas wells and proved, developed, non-producing and
behind pipe wells (“PDNP & BP”) identified on the schedules attached hereto
as Exhibit A-4 and A-5, (individually or
collectively, such working interests constitute the “100% Working Interests” and
the 100% Working Interests
and the 50% Working
Interests, individually or collectively, constitute the “Acquired Working
Interests”);

    

    

    
      B.       OTHER CONTRACTUAL OR PROPERTY RIGHTS
AND OBLIGATONS:   In granting to Velocity the Acquired
Working Interests, the parties understand that there shall also be conveyed to
Velocity at Closing, and Velocity shall assume, such contractual and property
rights and obligations  as are derivative from post-Effective Date
ownership of the Acquired Working Interests, to the extent Classic would have
received or assumed such contractual and property rights and obligations had it
retained, and not conveyed, such Acquired Working Interests (exclusive of, but
not limited to (i) any contractual or property rights and obligations as
operator of the Wells relating to the 50% Working Interests, to the extent such
may be deemed derivative from such 50% Working Interests (under which Classic
shall continue as the sole operator), (ii) contractual or property rights and
obligations as operator of the Wells relating to the 100% Working Interests, to
the extent such may also be deemed derivative from such 100% Working Interests
(under which Classic shall not continue as the operator but cannot convey the
such contractual or property rights and obligations); (iii) any other
contractual or property rights and obligations derived from being the operator
of any Wells relating to the Acquired Interests, to the extent such may also be
deemed derivative from such Acquired Working Interests and (iv) any contractual
or property rights and obligations to the extent such was earned by, accrued to
the benefit of or was transferred to Classic prior to the Effective Date), as
well as  such contractual or property rights and obligations more
fully described in Paragraph 7 hereof (individually or collectively, the “Other Contractual or Property Rights
and Obligations”); and

    

    

    C.        DOCUMENTATION AND
DATA:  All originals (with respect to 100% Working Interests)
or copies (with respect to 50% Working Interests) of its contracts, licenses,
permits, seismic and other technical data, maps, logs, well files, books and
records, and other information and materials relating to such Acquired Working
Interests (collectively
the “Documentation and
Data”).

    
      
         

      

      
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              Individually
      or collectively, the 50%
      Working Interests, the 100% Working Interests,
      the Other
      Contractual or Property Rights and Obligations and the Documentation and Data
      constitute the “Classic
      Assets”, all of which shall conveyed at the Closing (the "Transaction") free and
      clear of all liens and encumbrances, except for usual and customary liens
      and encumbrances deemed to be Permitted Encumbrances, and any preferential
      rights of purchase by third parties.  Except as may be otherwise
      expressly provided for in this letter, Classic retains all rights to any
      other assets or property of Classic, including, but not limited to,
      interests in other wells, other leasehold interests, royalty interests,
      easements, wellhead facilities and other oilfield equipment, gathering and
      transportation facilities and equipment, vehicles and other property
      whether real, personal or mixed.

            

    

    

    
      	
              2.

            	
              EFFECTIVE
      DATE.   The
      effective date and time of the Transaction shall be 12:01 A.M., July 1,
      2009 ("Effective
      Time").

            

    

    

    
      	
              3.

            	
              DETERMINATION
      AND PAYMENT OF ADJUSTED
      PURCHASE PRICE.

            

    

    

    
      	
               
      

            	
              A.  PURCHASE
      PRICE ADJUSTMENTS:   The
      Purchase Price shall be adjusted for usual and customary adjustments at
      Closing (“Closing
      Adjustments”) and post-Closing (“Post-Closing Adjustments”)
      including adjustments (i) reflecting the allocation of proceeds
      from the sale of hydrocarbons accruing to Classic as a working interest
      owner of the Classic Assets, and other income and revenue (collectively,
      “Revenues”) as
      well as all expenses and other liabilities associated with the Classic
      Assets (collectively, "Liabilities") on a "my
      watch, your watch" basis with Classic being entitled to and assuming all
      Revenues and Liabilities accruing prior to the Effective Time, and
      Velocity being entitled to and assuming all Revenues and Liabilities
      accruing on and after the Effective Time, all of which benefits and
      obligations shall be assumed at Closing and (ii) in the event any
      preferential rights of purchase by third parties are exercised with
      respect to any proposed Acquired Working Interest, the Transaction will
      continue to a Closing, provided, however, that the Purchase Price will be
      reduced, proportionately, based on the reduced percentage of the Acquired
      Working Interests to be conveyed to Velocity and the respective reserve
      valuations for such reduced Acquired Working Interests based on the Wright
      & Company runs dated 03-06-09 and made available to the
      Parties.

            

    

    
      
         

      

      
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              B.  ADJUSTED PURCHASE
      PRICE:

            

    

    

    
      	
               
      

            	
              The
      total amount payable to Classic from the Purchase Price as set forth in
      Paragraph 4, after adding and deducting any positive or negative Closing Adjustments to
      the Purchase Price shall constitute the “Adjusted Cash Purchase Price.”
      Velocity shall pay to Classic at Closing, in cash or other
      immediately available funds, the “Initial Installment”,
      which amount shall be equal to 50% of the Adjusted Cash Purchase
      Price. The balance of the Adjusted Cash Purchase
      Price, after adding and deducting any positive or negative Post-Closing Adjustments
      to the Adjusted Purchase Price, shall be the “Final Installment”, the
      payment of which shall be
      secured by a negotiable promissory note from Velocity payable to Classic
      (the “Purchase Promissory
      Note”), substantially in the form of the Promissory Note, attached
      hereto as Exhibit B
      and made a part hereof, delivered at the Closing, which shall be
      payable on or before the one (1) year anniversary of Closing and shall be
      secured by a first and prior perfected security interest in and to the
      Classic Assets.

            

    

    

    4.        
    PURCHASE
PRICE.

    

    
      	
               
      

            	
              The
      Purchase Price for
      the Classic Assets shall be $1,169,647.00, subject to proportionate
      reduction and certain Closing Adjustments and Post-Closing
      Adjustments.

            

    

    

    
      	
              5.

            	
              DUE
      DILIGENCE.   Upon
      acceptance of this letter as a definitive, legally binding LOI until
      termination of this LOI or closing of the Transaction contemplated by this
      LOI, whichever is later: (A) Classic shall, at
      reasonable times upon reasonable notice, provide Velocity with access, at
      Velocity’s sole cost, risk, and expense, to its books and records in its
      Lexington, Kentucky office as well as such access at its field office in
      Oceana, West Virginia and at the well sites as is reasonably necessary or
      appropriate for the purpose of conducting a field investigation of the
      Classic Assets and making an assessment of the environmental condition of
      the same in order to verify that no material Environmental Conditions (as
      defined below) exist that might constitute Defects; (B) Velocity shall
      exercise its best efforts to obtain the final approval of its existing
      senior lenders to provide financing for this Transaction, which is
      expected but cannot be assured, to enable Velocity to consummate the
      Transaction; (C)
      Classic shall continue to conduct its business in the ordinary course of
      business as contemplated in the LOI; and (D) Classic will have a
      continuing obligation to furnish daily production reports, AFEs,
      operational reports, marketing data, and other pertinent data and
      information relating to the Classic
Assets.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
              6.

            	
              NONASSIGNABILITY:  Any
      rights granted to a party hereunder may not be assigned without the prior
      written consent of the other party, and to the extent of any proposed
      assignment by Velocity necessitated by financing arrangements to
      effectuate this Transaction, such consent not to be unreasonably withheld
      by Classic.

            

    

    

    
      
        	
                7.

              	
                ADDITIONAL
      AGREEMENTS. The
      Parties contemplate execution by Classic and Velocity of the following
      agreements contemporaneously with the
Closing:

              

      

    

    

    A.
FARMOUT AGREEMENT: Classic and Velocity would enter into a Farmout
Agreement granting Velocity Hundred Percent (100%) of Classic’s farmout rights
in certain Farmout Well Locations, giving Velocity the opportunity to earn
interests therein by exploring for and developing such Farmout Well Locations
pursuant to a Farmout Agreement substantially in the form of Farmout Agreement
attached hereto as Exhibit
C and made a part hereof;

    

    B.  MASTER
JOA:   Classic and Velocity would enter into a Master
Joint Operating Agreement (“Master JOA”) in
substantially the form of Joint Operating Agreement attached hereto as Exhibit D and made a part
hereof; and

    C.        MASTER
SERVICES AGREEMENT:  Classic and Velocity would enter into two
Master Services Agreement (“MSA”) in substantially the
form of Master Services Agreements attached hereto as Exhibit E and made a part
hereof to cover various situations where Classic may be called on from time to
time to provide certain services to Velocity (and visa-versa, in which the roles
of Contractor and Operator would be reversed), which situations may include
without limitation the following:

    

    
      (1)      
Classic
would agree to give Velocity the opportunity to utilize its drilling rigs for
the drilling of any new wells proposed in which Velocity has a Working Interest,
provided that the costs for such rigs were based on competitive rates being
charged at the time for comparable equipment in the area;

    

    

    (2)       Velocity
would agree to give Classic the opportunity to utilize its service rigs and
other equipment to provide support services for wells operated by Velocity,
provided that the costs for such services were based on competitive rates being
charged at the time for comparable equipment in the area; and

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (3)        Classic
and Velocity would closely collaborate on all drilling, completion and
production procedures utilized for any future wells drilled, or on any
completions, recompletions or production enhancement operations performed on
existing Wells in which Classic and Velocity both have a Working Interest,
including participation by representatives of both companies in the supervision
and implementation of such procedures and operations in the field, with the
ultimate decision in each case to be made by the representative of the party who
is the Operator for the particular Well.

    

    
      	
              8.

            	
              EXCLUSIVITY
      AND EXHIBITS.     Upon
      acceptance of this letter as an LOI by Classic, (i) there shall be a
      period of exclusivity within which Velocity shall have the sole right to
      negotiate the acquisition of the Classic Assets through the Closing
      Deadline (as defined in Paragraph 12 below), as may be extended, and (ii)
      the Parties shall expeditiously attempt to finalize all schedules and
      exhibits to the LOI (collectively, the “Exhibits”), and
      proceed to Closing. The LOI Exhibits shall include, by way of illustration
      and not of limitation, the following LOI
  Exhibits:

            

    

    

    
      	
            	
              Exhibit
      A

            	
              Wells

            

    

    

    
      	
            	
              Exhibit
      A-1

            	
              50%
      PDP Wells

            

    

    
      	
            	
              Exhibit
      A-2

            	
              50%
      PDNP & BP Wells

            

    

    
      	
            	
              Exhibit
      A-3

            	
              Summit
      Wells

            

    

    
      	
            	
              Exhibit
      A-4

            	
              100%
      PDP Wells

            

    

    
      	
            	
              Exhibit
      A-5

            	
              100%
      PDNP & BP Wells

            

    

    

    
      	
            	
              Exhibit
      B

            	
              Promissory
      Note

            

    

    

    
      	
            	
              Exhibit
      C

            	
              Form
      of Farmout Agreement

            

    

    

    
      	
            	
              Exhibit
      D

            	
              Form
      of Master Joint Operating Agreement

            

    

    

    
      	
            	
              Exhibit
      E

            	
              Form
      of Master Services Agreements

            

    

    
      
         

        
          	
                  9.

                	
                  EXPENSES.    Each Party
      is responsible for
      its own expenses.

                

        

      

    

    

    
      
        	
                10.

              	
                GOVERNING
      LAW.
        The laws of the
      Commonwealth of Kentucky, excluding its conflicts of law principles, shall
      govern this Agreement.

              

      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              11.

            	
              BINDING
      EFFECT.  Notwithstanding
      any language herein to the contrary, all of the terms of this LOI shall be
      binding upon the Parties following the execution of this letter as a LOI.
      The terms and conditions contained in Paragraphs 5, 6, 8, 9, 10, 11 and 12
      as well as the provisions of the Confidentiality Agreement between
      Velocity and Classic shall continue to remain binding and survive the
      termination of this LOI in the event the Parties do not consummate the
      Transaction contemplated in this Letter of Intent and the LOI is otherwise
      terminated pursuant to Paragraph 12
hereof.

            

    

    

    
      	
              12.

            	
              LOI
      ACCEPTANCE DEADLINE AND CLOSING DEADLINE. Classic shall have until 6:00
      PM EST on September __, 2009 to execute this offer letter
      as a Letter of Intent (“LOI Acceptance Deadline”).  This
      LOI shall terminate upon the earlier to occur of the following events: (a)
      the consummation of the Transaction; (b) the failure of the Transaction to
      close on or before September 30, 2009, or as otherwise extended by mutual
      agreement of the Parties (“Closing Deadline”); or
      (c) by mutual agreement of the
Parties.

            

    

    

    
      	
              13.

            	
              WARRANTIES,
      DISCLAIMERS, AND REMEDIES.

            

    

    

    A.        WARRANTIES
AND DISCLAIMERS.  Classic warrants and
represents that Classic has Defensible Title (as defined below) to the Classic
Assets, and Classic shall warrant and defend title to the Classic Assets
conveyed to Velocity against every person whomsoever lawfully claiming the
Properties or any part thereof by, through or under Classic, but not
otherwise.  Except for this limited warranty of title set forth in
this Article 13 and as otherwise expressly set forth hereunder, Velocity
acknowledges and agrees that the Properties are being purchased on an "as is,
where is" and "with all faults" basis, and, accordingly, that Classic expressly
disclaims and negates all other warranties and representations, express,
implied, statutory, or under common law, or otherwise, whether as to past,
present, or future matters, including without limitation as to OPERATING AND
ENVIRONMENTAL CONDITION OF THE PROPERTIES; MERCHANTABILITY; FITNESS FOR A
PARTICULAR PURPOSE; CONFORMITY TO MODELS OR SAMPLES OF MATERIALS; THE ACCURACY
OR COMPLETENESS OF ANY INFORMATION, DATA, OR OTHER MATERIALS (WHETHER WRITTEN,
ORAL, OR VISUAL) FURNISHED TO VELOCITY BY OR ON BEHALF OF CLASSIC WITH RESPECT
TO TITLE, GEOLOGICAL, GEOPHYSICAL, ENGINEERING, OR OTHER TECHNICAL DATA; THE
EXISTENCE OR EXTENT OF OIL, GAS, OR OTHER MINERAL RESERVES; THE RECOVERABILITY
AND COSTS OF RECOVERY OF SUCH RESERVES; THE RESULTS WHICH MIGHT BE EXPECTED FROM
ANY EXPLORATION, DEVELOPMENT, OR OTHER OPERATIONAL ACTIVITIES ASSOCIATED WITH
THE PROPERTIES; THE MARKETABILITY, PRODUCT PRICING ASSUMPTIONS, OR VALUATION OF
SUCH RESERVES; AND ANY OTHER MATTERS WHICH MIGHT BE OF INTEREST AND CONCERN TO A
PURCHASER OF ASSETS SIMILAR TO THE CLASSIC ASSETS.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      For all
purposes hereunder, the term “Defensible
Title” means such title conveyed by Classic that, subject to and except
for the Permitted Encumbrances (as hereinafter defined):

    

    

    (1)         entitles
Velocity to receive not less than the “Net Revenue Interests” in the
Wells as set forth in Exhibits
A-1, A-2, A-3, A-4 and A-5, as applicable, of all
oil, gas and associated liquid and gaseous hydrocarbons produced, saved and
marketed from the Leases;

    

    (2)         obligates
Velocity to bear costs and expenses relating to the ownership, operation,
maintenance and repair of the Wells and facilities located on or attributable to
the Properties in an amount not greater than the “Working
Interests”  in the Wells as set forth in ExhibitsA-1, A-2, A-3, A-4
and A-5, as
applicable, unless there is a corresponding increase in the Net Revenue Interests in such
Wells; and

    

    (3)         is
free and clear of all claims, liens, encumbrances and encroachments, except for
Permitted Encumbrances.

    

    For all
purposes hereunder, the term “Permitted Encumbrances” 
means:

    

    (1)         Royalties,
overriding royalties, production payments, reversionary interests, convertible
interests, net profits interests, division orders and similar burdens
encumbering the Leases to the extent the net cumulative effect of such burdens
do not, as of Closing, operate to: (i) reduce the Net Revenue Interests of the
Wells to less than the Net Revenue Interests set forth in Exhibits A-1, A-2, A-3, A-4, and A-5 as applicable, and/or
(ii) obligate Classic to bear costs and expenses relating to the ownership,
operation, maintenance and repair of the Wells and facilities located
on or attributable to the Properties in an amount not greater than the “Working
Interests”  in the Wells as set forth in ExhibitsA-1, A-2, A-3, A-4
and A-5, as
applicable,, unless there is a corresponding increase in the Net Revenue Interests in such
Wells;

    

    (2)         Preferential
purchase rights and consents to assignment and similar contractual provisions
encumbering the Properties with respect to which, prior to Closing, (i) waivers
or consents have been obtained from the appropriate Parties,  (ii) the
appropriate time period for asserting such rights have expired without an
exercise of such rights or (iii) such rights are exercised, resulting in a
Closing Adjustment pursuant to Paragraph 3A hereof;

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    (3)         All
rights to consent by, required notices to, filings with, or other actions by
governmental entities or tribal authorities in connection with the sale or
conveyance of the Properties, if the same are customarily obtained subsequent to
the transfer of title;

    

    (d)         Rights
reserved to or vested in any governmental entity or tribal authority having
appropriate jurisdiction to control or regulate the Properties in any manner
whatsoever, and all Laws of any such governmental entity or tribal
authority;

    

    (e)         Easements,
rights-of-way, servitudes, surface leases, subsurface leases, grazing rights,
logging rights, canals, ditches, reservoirs, pipelines, utility lines, telephone
lines, power lines, railways, streets, roads, alleys, highways and structures
on, over and through the Properties, to the extent such rights, interests or
structures do not materially interfere with the operation of the
Properties;

    

    (f)          The
terms and conditions of all leases, agreements, contracts and instruments
associated with, attributable to or encumbering the Properties;

    

    (g)         Liens
for taxes or assessments not yet due or not yet delinquent or, if delinquent,
that are being contested by Classic in good faith in the ordinary course of
business; and

     

    (h)         Liens
of operators relating to obligations not yet due or not yet delinquent or, if
delinquent, that are being contested by Classic in good faith in the ordinary
course of business.

    

    B.        LIMITATION
OF REMEDIES AND DAMAGES.  Notwithstanding the limited special
title warranty and the disclaimer of all other representations and warranties
above, the Parties understand and agree that Classic shall, with respect to all
matters hereinbelow arising prior to the Effective Date hereof, be responsible
for curing any Title Defects that would cause Velocity to not have Defensible
Title to the Classic Assets and for remediating, or reimbursing Velocity for its
damages and costs of remediating, any Environmental Conditions (individually or
collectively, “Defects”); adjustments for title, accounting, environmental,
contractual, or other Post-Closing Adjustments (to the extent in favor of
Velocity and to the extent not reflected in determination of the Final
Installment); and for any other matters arising under or in connection with the
Transaction contemplated under this Agreement (individually or collectively,
such Defects and other pre-Effective Date matters for which Velocity shall be
entitled to recourse against Classic shall be referred to herein as “Classic
Liabilities”) must be asserted by Velocity within two (2) years of the Closing
Date (“Classic Liability Cut-Off Date”) in the event and to the extent that such
Liabilities arose prior to the Effective Date.  Except and to the
extent otherwise allowable under the Master JOA or any other applicable
Contracts or other agreements, which rights and remedies contained therein are
expressly not waived or released by Velocity, Velocity expressly acknowledges
and agrees that its sole recourse and remedies shall be deemed to have been
waived, released and forever barred as to all other matters which would have
otherwise constituted Defects or other Liabilities if timely asserted prior to
the Classic Liability Cut-Off Date.  Notwithstanding anything herein
to the contrary, none of the Parties shall be liable to any of the other Parties
or to any Third Parties for any indirect, incidental, consequential, special,
punitive, or exemplary damages arising under or in connection with this
Agreement.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    For all purposes hereunder, the term
“Environmental
Conditions” shall mean any conditions involving: (a) remediation and/or
clean-up thereof; (b) damage to and/or loss of any property or resource; and/or
(c) injury or death of any person(s) whomsoever, including without limitation,
Claims relating to breach and/or violation of Environmental Laws, common law
causes of action such as negligence, gross negligence, strict liability,
nuisance or trespass, or fault imposed by statute, rule, regulation or
otherwise, Claims relating to asbestos, NORM (naturally occurring radioactive
materials), other potentially hazardous substances, or other potentially
hazardous wastes, all costs associated with remediation and clean up, and fines
and penalties associated with any of the foregoing.

    

    For all purposes hereunder, the term
“Environmental
Laws” means all laws, statutes, ordinances, permits, orders, judgments,
decrees, rules or regulations which are promulgated, issued or enacted by a
federal, state, or local governmental entity having appropriate jurisdiction
that: relate to (a) the prevention of pollution or environmental damage, (b) the
remediation of pollution or environmental damage, or (c) the protection of the
environment generally, including without limitation, the following
acts:  Clean Air Act; Clean Water Act; Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) of 1980, as amended by the
Superfund Amendments and Reauthorization Act of 1986 (SARA); Federal Water
Pollution Control Act; Resource Conservation and Recovery Act of 1976 (RCRA);
Safe Drinking Water Act; Hazardous Materials Transportation Act; National
Environmental Policy Act; the Toxic Substance and Control Act; Hazardous and the
Solid Waste Amendments Act of 1984; Oil Pollution Control Act of 1990 (OPA);
Emergency Planning and Community Right-to-Know Act; Noise Control Act;
Endangered Species Act; National Historic Preservation Act; and any state,
local, or tribal counterparts thereof as well as other relevant Environmental
Laws, each as currently existing and as amended from time to
time.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      
        C.     
ACKNOWLEDGEMENT
AND ACCEPTANCE OF RISKS AND WARRANTY DISCLAIMERS.  Velocity acknowledges, and freely and
voluntarily agrees to accept, the warranties, remedies, damages and the
limitations upon all of same set forth in this Paragraph 13 and agrees to assume
any other liabilities, indemnities, and risks associated with the Classic
Assets, notwithstanding the Classic’s disclaimer of warranties and other
provisions of this Paragraph 13.  Velocity further acknowledges and
freely and voluntarily agrees to accept and assume, the risks that Velocity is
(i) not entitled to rely on the accuracy or completeness of the information in
its review and evaluation of the transaction; (ii) able to bear the economic
risk of any oil and gas investment that Velocity has decided to make with
respect to the transaction; (iii) capable of evaluating the merits and
risks of investments in oil and gas properties generally and in the subject
properties specifically; (iv) making the investment with respect to any such
transaction for its own account and not with a view to the distribution or sale
thereof, and (v) acting solely for its own account evaluating and consummating
the transaction contemplated in this Agreement.

      

    

    

    14.          MISCELLANEOUS.

    

    A.        Notices:  All notices and
other communications required, permitted or desired to be given hereunder must
be in writing and sent by U.S. mail, properly addressed as shown below, and with
all postage and other charges fully prepaid or by hand delivery or by facsimile
transmission.  Date of service by mail and hand delivery is the date
on which such notice is received by the addressee and by facsimile is the date
sent (as evidenced by fax machine confirmation of receipt), or if such date is
not on a Business Day, then on the next date which is a Business
Day.  Any of the Parties may change its address by notifying the other
Parties in writing.

    

    
      
        
          
            
              	
                      If
      to Classic:

                    	
                      William
      W. Kelly, Jr.

                    
	 
      	
                      416
      W. Brannon Road

                    
	 
      	
                      Nicholasville,
      KY  40356

                    
	 
      	
                      Tel.
      (859) 296-9608

                    
	 
      	
                      Fax:  (859)
      201-1159

                    
	 
      	
                      wkelly2304@aol.com

                    
	 
      	 
      
	
                      With
      a copy to:

                    	
                      Alvin
      Kirk

                    
	 
      	
                      Box
      1198

                    
	 
      	
                      Inez,
      KY  41224

                    
	 
      	
                      ackirk@suddenlink.net

                    
	 
      	
                      and

                    

            

          

        

      

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                	 
      	
                        William
      F. Rigsby

                      
	 
      	
                        Rigsby
      Law Group, PLC

                      
	 
      	
                        228
      E. High Street

                      
	 
      	
                        Lexington,
      Kentucky 40507

                      
	 
      	
                        Tel.
      (859) 233-4633

                      
	 
      	
                        Fax:
      (859) 233-4642

                      
	 
      	
                        wfrigsby@rigsbylawgroup.com

                      
	 
      	 
      
	
                        If
      to Velocity:

                      	
                        D.
      E. Vandenberg

                      
	 
      	
                        Velocity
      Energy Inc.

                      
	 
      	
                        523
      N. Sam Houston Pkwy. E., Suite 175

                      
	 
      	
                        Houston,
      TX  77060

                      
	 
      	
                        Tel.
      (713) 410-7024

                      
	 
      	
                        Fax:  (281)
      741-0895

                      
	 
      	
                        dvandenberg@velocityenergy.net

                      
	 
      	 
      
	
                        With
      a copy to:

                      	
                        Gary
      L. Lancaster

                      
	 
      	
                        Velocity
      Energy Inc.

                      
	 
      	
                        523
      N. Sam Houston Pkwy. E., Suite 175

                      
	 
      	
                        Houston,
      TX  77060

                      
	 
      	
                        Tel.
      (713) 832-594-3825

                      
	 
      	
                        Fax:  (281)
      741-0895

                      
	 
      	
                        glancaster@velocityenergy.net

                      

              

            

          

        

      

    

    

    
      
        B.      
Conveyance
Costs:  Velocity shall be solely responsible for filing and
recording documents related to the transfer of the Classic Assets from Classic
to Velocity and for all costs and fees associated therewith, including filing
the assignment of the Classic Assets, copies of which, together with all
recording data and evidence of all required filings, shall be furnished to
Classic.

      

    

    

    
      
        C.      
 Further
Assurances:  From and after Closing, at the request of the
other Party but without further consideration, each Party shall execute and
deliver such other instruments of conveyance and take such other actions as such
Party Classic reasonably may request to more effectively effectuate the purposes
of this Agreement. If any of the Properties are incorrectly described, the
description shall be corrected upon proof of the proper
description.

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      
        D.      
Dispute
Resolution.  Any disputes
arising hereunder that have not resolved within thirty (30) Days of the date
within which notice of the matters in dispute, together with reasonable
supporting documentation, was delivered to the other Party shall be resolved
through binding “baseball-style” arbitration, as to each dispute (if more than
one), conducted in Charleston, West Virginia. Each Party selects one arbitrator
and the two arbitrators so selected then select a third, neutral arbitrator.
Each Party presents its case to the panel of three arbitrators who must issue a
binding order adopting the position of one Party or the other Party, as to each
dispute (if more than one), with the losing Party to pay all costs of such
arbitration proceeding as to that dispute. If the Party disputing the right of
termination does not initiate arbitration proceeding to resolve the dispute
within the time period specified hereinabove, such Party shall be deemed to have
waived its right to initiate such arbitration
proceeding.

      

    

    

    
      
        E.      
 Amendments
and Severability.  No amendments or
other changes to this Agreement shall be effective or binding on either of the
Parties unless the same shall be in writing and signed by both Classic and
Velocity.  The invalidity of any one or more provisions of this
Agreement shall not affect the validity of this Agreement as a whole, and in
case of any such invalidity, this Agreement shall be construed as if the invalid
provision had not been included herein.

      

    

    

    
      
        F.        Successors
and Assigns.  This Agreement
shall not be assigned, either in whole or in part, except as provided in
Paragraph 6 hereof. The terms, covenants and conditions contained in this
Agreement shall be binding upon and shall inure to the benefit of Classic and
Velocity and their respective successors and assigns, and such terms, covenants
and conditions shall be covenants running with the land and with each subsequent
transfer or assignment of the Properties.

      

    

    

    
      
        G.       
Execution
in Counterparts.  This Agreement
may be executed in counterparts, which shall when taken together constitute a
single valid and binding agreement.

      

    

    

    
      
        H.       
Entire
Agreement.  This Agreement, including any agreements to be
executed in conjunction herewith as set forth herein, supersedes all prior and
contemporaneous negotiations, understandings, letters of intent and agreements
(whether oral or written) between the Parties relating to the Properties and
constitutes the entire understanding and agreement between the Parties with
respect to the sale and purchase of the Properties.

      

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Sincerely,

    

    VELOCITY
ENERGY PARTNERS LP,

    By
Velocity Energy Limited LLC,

    It’s
General Partner

    

    
      
        	
                By:

              	
                /s/ D. E. Vandenberg

              
	
                Name:

              	
                D.
      E. Vandenberg

              
	
                Title:

              	
                Chief
      Executive Officer and
President

              

      

    

    

    ACCEPTED AND AGREED this 5th
day of September, 2009:

    

    
      
        	
                CLASSIC
      OIL & GAS RESOURCES, INC.

              
	 
      	 
      
	
                By:

              	
                /s/ William W. Kelly,
Jr.

              
	
                Name:

              	
                William
      W. Kelly, Jr.

              
	
                Title:

              	
                President

              

      

    

    

    
      	
              cc:

            	
              Gary
      Lancaster

            
	 
      	
              Donald
      Sebastian

            
	 
      	
              Brian
      McNiell

            
	 
      	
              David
      Stetson

            

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	 
      	
                                       EXHIBIT
      A-1  PDP WELLS

                                  	 
      	 
      	 
      
	 
      	 
      	
                                     CLASSIC
      OIL & GAS

                                  	
                                    50%

                                  	 
      	 
      	 
      
	 
      	 
      	
                                       RESOURCES,
      INC.

                                  	
                                    WELLS

                                  	 
      	 
      	 
      
	 	 	 	 	 	 	 
	 
      	 
      	
                                       CLASSIC
      INTERESTS

                                  	
                                    BPO

                                  	
                                    BPO

                                  	
                                    APO

                                  	
                                    APO

                                  
	
                                    WELL

                                  	
                                    PROSPECT

                                  	
                                    COUNTY

                                  	
                                    STATUS

                                  	
                                    WI

                                  	
                                    NRI

                                  	
                                    WI

                                  	
                                    NRI

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                     AUREDNICK
      #1 PDP

                                  	
                                    CLEAR
      FORK

                                  	
                                    WYOMING

                                  	
                                    1-PDP

                                  	
                                    2.500

                                  	
                                    2.450

                                  	
                                    2.500

                                  	
                                    2.450

                                  
	
                                     BOLEN#1
      PDP

                                  	
                                    OCEANA
      EAST

                                  	
                                    WYOMING

                                  	
                                    1-PDP

                                  	
                                    1.039

                                  	
                                    1.119

                                  	
                                    1.039

                                  	
                                    1.119

                                  
	
                                     BROWNING
      #1 PDP

                                  	
                                    CLEAR
      FORK

                                  	
                                    WYOMING

                                  	
                                    1-PDP

                                  	
                                    2.500

                                  	
                                    2.470

                                  	
                                    2.500

                                  	
                                    2.470

                                  
	
                                     BRYANT
      #1 PDP

                                  	
                                    OCEANA

                                  	
                                    WYOMING

                                  	
                                    1-PDP

                                  	
                                    4.000

                                  	
                                    3.300

                                  	
                                    4.000

                                  	
                                    3.300

                                  
	
                                     CHAMBERS
      #1 PDP

                                  	
                                    CLEAR
      FORK

                                  	
                                    WYOMING

                                  	
                                    1-PDP

                                  	
                                    1.500

                                  	
                                    1.670

                                  	
                                    1.500

                                  	
                                    1.670

                                  
	
                                     COOK
      #1 PDP

                                  	
                                    OCEANA
      EAST

                                  	
                                    WYOMING

                                  	
                                    1-PDP

                                  	
                                    5.526

                                  	
                                    4.560

                                  	
                                    5.526

                                  	
                                    4.560

                                  
	
                                     COOK
      #2 PDP

                                  	
                                    OCEANA
      EAST

                                  	
                                    WYOMING

                                  	
                                    1-PDP

                                  	
                                    1.039

                                  	
                                    0.857

                                  	
                                    1.039

                                  	
                                    0.857

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	 
      	
                                         EXHIBIT
      A-1  PDP WELLS

                                    	 
      	 
      	 
      
	 
      	 
      	
                                       CLASSIC
      OIL & GAS

                                    	
                                      50%

                                    	 
      	 
      	 
      
	 
      	 
      	
                                         RESOURCES,
      INC.

                                    	
                                      WELLS

                                    	 
      	 
      	 
      
	 	 	 	 	 	 	 
	 
      	 
      	
                                         CLASSIC
      INTERESTS

                                    	
                                      BPO

                                    	
                                      BPO

                                    	
                                      APO

                                    	
                                      APO

                                    
	
                                      WELL

                                    	
                                      PROSPECT

                                    	
                                      COUNTY

                                    	
                                      STATUS

                                    	
                                      WI

                                    	
                                      NRI

                                    	
                                      WI

                                    	
                                      NRI

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          
            
              	
                      COOKE,
      H. #1 PDP

                    	
                      OCEANA
      EAST

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      5.000

                    	
                      4.300

                    	
                      5.000

                    	
                      4.300

                    
	
                       CRAIG
      #1 PDP

                    	
                      CLEAR
      FORK

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      2.500

                    	
                      2.450

                    	
                      2.500

                    	
                      2.450

                    
	
                       DAVIS
      #1 PDP

                    	
                      CLEAR
      FORK

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      2.000

                    	
                      2.225

                    	
                      2.000

                    	
                      2.225

                    
	
                       FOX
      #1 PDP

                    	
                      OCEANA

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      5.000

                    	
                      4.850

                    	
                      5.000

                    	
                      4.850

                    
	
                       FOX
      #2 PDP

                    	
                      OCEANA

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      4.000

                    	
                      3.300

                    	
                      4.000

                    	
                      3.300

                    
	
                       HATFIELD
      #1 PDP

                    	
                      OCEANA

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      1.039

                    	
                      1.119

                    	
                      1.039

                    	
                      1.119

                    
	
                       HUGHES
      #1 PDP

                    	
                      CLEAR
      FORK

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      2.500

                    	
                      2.450

                    	
                      2.500

                    	
                      2.450

                    
	
                       JACKSON
      #1 PDP

                    	
                      OCEANA
      EAST

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      4.000

                    	
                      3.300

                    	
                      4.000

                    	
                      3.300

                    
	
                       JEWELL
      #1 PDP

                    	
                      OCEANA
      EAST

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      1.039

                    	
                      1.119

                    	
                      1.039

                    	
                      1.119

                    

            

          

        

      

       

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 
      	
                                           EXHIBIT
      A-1  PDP WELLS

                                      	 
      	 
      	 
      
	 
      	 
      	
                                         CLASSIC
      OIL & GAS

                                      	
                                        50%

                                      	 
      	 
      	 
      
	 
      	 
      	
                                           RESOURCES,
      INC.

                                      	
                                        WELLS

                                      	 
      	 
      	 
      
	 	 	 	 	 	 	 
	 
      	 
      	
                                           CLASSIC
      INTERESTS

                                      	
                                        BPO

                                      	
                                        BPO

                                      	
                                        APO

                                      	
                                        APO

                                      
	
                                        WELL

                                      	
                                        PROSPECT

                                      	
                                        COUNTY

                                      	
                                        STATUS

                                      	
                                        WI

                                      	
                                        NRI

                                      	
                                        WI

                                      	
                                        NRI

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            	
                    LAMB
      #1 PDP

                  	
                    OCEANA
      EAST

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    1.039

                  	
                    1.119

                  	
                    1.039

                  	
                    1.119

                  
	
                     LANDIS
      #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    1.500

                  	
                    1.670

                  	
                    1.500

                  	
                    1.670

                  
	
                     LANDIS
      #2 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    1.500

                  	
                    1.670

                  	
                    1.500

                  	
                    1.670

                  
	
                     LANDIS
      #3 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.470

                  	
                    2.500

                  	
                    2.470

                  
	
                     NLC
      CHURCH #1 PDP

                  	
                    OCEANA
      EAST

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    5.000

                  	
                    4.850

                  	
                    5.000

                  	
                    4.850

                  
	
                     PCHC
      1309 B PDP

                  	
                    OCEANA

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    1.813

                  	
                    1.523

                  	
                    1.813

                  	
                    1.523

                  
	
                     PCT
      #115 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  

          

        

      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 
      	
                                           EXHIBIT
      A-1  PDP WELLS

                                      	 
      	 
      	 
      
	 
      	 
      	
                                         CLASSIC
      OIL & GAS

                                      	
                                        50%

                                      	 
      	 
      	 
      
	 
      	 
      	
                                           RESOURCES,
      INC.

                                      	
                                        WELLS

                                      	 
      	 
      	 
      
	 	 	 	 	 	 	 
	 
      	 
      	
                                           CLASSIC
      INTERESTS

                                      	
                                        BPO

                                      	
                                        BPO

                                      	
                                        APO

                                      	
                                        APO

                                      
	
                                        WELL

                                      	
                                        PROSPECT

                                      	
                                        COUNTY

                                      	
                                        STATUS

                                      	
                                        WI

                                      	
                                        NRI

                                      	
                                        WI

                                      	
                                        NRI

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            	
                    PCT
      #128 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    1.500

                  	
                    1.230

                  	
                    0.775

                  	
                    0.635

                  
	
                     PCT
      #129 PDP (APO)

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #130 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #131 PDP (APO)

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.410

                  	
                    1.155

                  
	
                     PCT
      #132 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #133 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.000

                  	
                    1.640

                  	
                    1.035

                  	
                    0.850

                  
	
                     PCT
      #134 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.000

                  	
                    4.100

                  	
                    2.585

                  	
                    2.120

                  
	
                     PCT
      #135 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #136 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    12.500

                  	
                    10.025

                  	
                    6.465

                  	
                    5.300

                  
	
                     PCT
      #137 PDP (APO)

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #138 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.290

                  	
                    1.060

                  
	
                     PCT
      #140 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    1.500

                  	
                    1.230

                  	
                    0.775

                  	
                    0.635

                  
	
                     PCT
      #141 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #142 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    0.500

                  	
                    0.410

                  	
                    0.260

                  	
                    0.215

                  

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 
      	
                                           EXHIBIT
      A-1  PDP WELLS

                                      	 
      	 
      	 
      
	 
      	 
      	
                                         CLASSIC
      OIL & GAS

                                      	
                                        50%

                                      	 
      	 
      	 
      
	 
      	 
      	
                                           RESOURCES,
      INC.

                                      	
                                        WELLS

                                      	 
      	 
      	 
      
	 	 	 	 	 	 	 
	 
      	 
      	
                                           CLASSIC
      INTERESTS

                                      	
                                        BPO

                                      	
                                        BPO

                                      	
                                        APO

                                      	
                                        APO

                                      
	
                                        WELL

                                      	
                                        PROSPECT

                                      	
                                        COUNTY

                                      	
                                        STATUS

                                      	
                                        WI

                                      	
                                        NRI

                                      	
                                        WI

                                      	
                                        NRI

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            	
                    PCT
      #143 PDP (APO)

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #146 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    1.500

                  	
                    1.230

                  	
                    0.775

                  	
                    0.635

                  
	
                     PCT
      #150 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.290

                  	
                    1.060

                  
	
                     PCT
      #152 PDP (APO)

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.290

                  	
                    1.060

                  
	
                     PCT
      #153 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.290

                  	
                    1.060

                  
	
                     PCT
      #154 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    18.500

                  	
                    15.170

                  	
                    9.565

                  	
                    7.845

                  
	
                     PCT
      #156 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    1.500

                  	
                    1.230

                  	
                    0.775

                  	
                    0.635

                  
	
                     PCT
      #157 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.410

                  	
                    1.155

                  
	
                     PCT
      #160 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.410

                  	
                    1.155

                  
	
                     PCT
      #161 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #162 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #163 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #164 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 
      	
                                           EXHIBIT
      A-1  PDP WELLS

                                      	 
      	 
      	 
      
	 
      	 
      	
                                         CLASSIC
      OIL & GAS

                                      	
                                        50%

                                      	 
      	 
      	 
      
	 
      	 
      	
                                           RESOURCES,
      INC.

                                      	
                                        WELLS

                                      	 
      	 
      	 
      
	 	 	 	 	 	 	 
	 
      	 
      	
                                           CLASSIC
      INTERESTS

                                      	
                                        BPO

                                      	
                                        BPO

                                      	
                                        APO

                                      	
                                        APO

                                      
	
                                        WELL

                                      	
                                        PROSPECT

                                      	
                                        COUNTY

                                      	
                                        STATUS

                                      	
                                        WI

                                      	
                                        NRI

                                      	
                                        WI

                                      	
                                        NRI

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            	
                    PCT
      #166 PDP

                  	
                    YUKON
      - N

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    5.500

                  	
                    4.510

                  	
                    2.955

                  	
                    2.425

                  
	
                     PCT
      #167 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.410

                  	
                    1.155

                  
	
                     PCT
      #168 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    9.000

                  	
                    7.380

                  	
                    4.655

                  	
                    3.815

                  
	
                     PCT
      #169 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    1.500

                  	
                    1.230

                  	
                    0.775

                  	
                    0.635

                  
	
                     PCT
      #175 PDP

                  	
                    YUKON
      - S

                  	
                    McDOWELL

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.050

                  	
                    1.410

                  	
                    1.155

                  
	
                     PENNINGTON
      #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.550

                  	
                    2.500

                  	
                    2.550

                  
	
                     SHORT,
      A. #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    2.000

                  	
                    2.225

                  	
                    2.000

                  	
                    2.225

                  
	
                     SPEARS
      #1 PDP

                  	
                    OCEANA
      EAST

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    4.500

                  	
                    3.690

                  	
                    4.500

                  	
                    3.690

                  

          

        

      

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 
      	
                                           EXHIBIT
      A-1  PDP WELLS

                                      	 
      	 
      	 
      
	 
      	 
      	
                                         CLASSIC
      OIL & GAS

                                      	
                                        50%

                                      	 
      	 
      	 
      
	 
      	 
      	
                                           RESOURCES,
      INC.

                                      	
                                        WELLS

                                      	 
      	 
      	 
      
	 	 	 	 	 	 	 
	 
      	 
      	
                                           CLASSIC
      INTERESTS

                                      	
                                        BPO

                                      	
                                        BPO

                                      	
                                        APO

                                      	
                                        APO

                                      
	
                                        WELL

                                      	
                                        PROSPECT

                                      	
                                        COUNTY

                                      	
                                        STATUS

                                      	
                                        WI

                                      	
                                        NRI

                                      	
                                        WI

                                      	
                                        NRI

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            	
                    STEPP
      #1 PDP

                  	
                    OCEANA

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    6.500

                  	
                    5.500

                  	
                    6.500

                  	
                    5.500

                  
	
                     TOLER,
      C. #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    1.500

                  	
                    1.670

                  	
                    1.500

                  	
                    1.670

                  
	
                     TOLER,
      D. #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    25.374

                  	
                    20.568

                  	
                    25.374

                  	
                    20.568

                  
	
                     TOLER,
      D.R. #1 PDP

                  	
                    OCEANA
      EAST

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    4.000

                  	
                    3.280

                  	
                    4.000

                  	
                    3.280

                  
	
                     TOLER,
      J. #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.550

                  	
                    2.500

                  	
                    2.550

                  
	
                     TOLER,
      K. #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    43.500

                  	
                    35.940

                  	
                    43.500

                  	
                    35.940

                  
	
                     TOLER,
      M. #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    2.500

                  	
                    2.550

                  	
                    2.500

                  	
                    2.550

                  
	
                     TOLER,
      T. #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    2.000

                  	
                    2.225

                  	
                    2.000

                  	
                    2.225

                  
	
                     WEST,
      S. #1 PDP

                  	
                    CLEAR
      FORK

                  	
                    WYOMING

                  	
                    1-PDP

                  	
                    27.675

                  	
                    25.009

                  	
                    27.675

                  	
                    25.009

                  

          

        

      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 
      	
                                           EXHIBIT
      A-1  PDP WELLS

                                      	 
      	 
      	 
      
	 
      	 
      	
                                         CLASSIC
      OIL & GAS

                                      	
                                        50%

                                      	 
      	 
      	 
      
	 
      	 
      	
                                           RESOURCES,
      INC.

                                      	
                                        WELLS

                                      	 
      	 
      	 
      
	 	 	 	 	 	 	 
	 
      	 
      	
                                           CLASSIC
      INTERESTS

                                      	
                                        BPO

                                      	
                                        BPO

                                      	
                                        APO

                                      	
                                        APO

                                      
	
                                        WELL

                                      	
                                        PROSPECT

                                      	
                                        COUNTY

                                      	
                                        STATUS

                                      	
                                        WI

                                      	
                                        NRI

                                      	
                                        WI

                                      	
                                        NRI

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              	 	 	 	 	 	 	 	 
	
                      WEST,
      S. #3 PDP

                    	
                      CLEAR
      FORK

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      5.000

                    	
                      4.125

                    	
                      5.000

                    	
                      4.125

                    
	
                       WEST
      ET AL #1 PDP

                    	
                      CLEAR
      FORK

                    	
                      WYOMING

                    	
                      2-PDNP

                    	
                      2.000

                    	
                      2.225

                    	
                      2.000

                    	
                      2.225

                    
	
                       WRIGHT,
      B. #1 PDP

                    	
                      KIMBALL

                    	
                      WYOMING

                    	
                      1-PDP

                    	
                      4.500

                    	
                      3.715

                    	
                      4.500

                    	
                      3.715

                    

            

          

        

      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
A-2  PDNP&BP WELLS

    CLASSIC OIL & GAS   
50%

        RESOURCES,
INC.     WELLS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      	 
      	 	 
      	 	
                                                                                              CLASSIC
      INTERESTS

                                                                                            	 	
                                                                                              BPO

                                                                                            	 	 	
                                                                                              BPO

                                                                                            	 	 	
                                                                                              APO

                                                                                            	 	 	
                                                                                              APO

                                                                                            	 
	
                                                                                              WELL

                                                                                            	 	
                                                                                              PROSPECT

                                                                                            	 	
                                                                                              COUNTY

                                                                                            	 	
                                                                                              STATUS

                                                                                            	 	
                                                                                              WI

                                                                                            	 	 	
                                                                                              NRI

                                                                                            	 	 	
                                                                                              WI

                                                                                            	 	 	
                                                                                              NRI

                                                                                            	 
	 
      	 	 
      	 	 
      	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              CLINE,
      B.  #1 PDNP

                                                                                            	 	
                                                                                              CLEAR
      FORK

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP

                                                                                            	 	 	2.500	 	 	 	2.550	 	 	 	2.500	 	 	 	2.550	 
	
                                                                                              FIELDS,
      BOB #1 PDNP

                                                                                            	 	
                                                                                              OCEANA

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP

                                                                                            	 	 	4.000	 	 	 	3.280	 	 	 	4.000	 	 	 	3.280	 
	
                                                                                              FOX
      #1 PDNP (BP)

                                                                                            	 	
                                                                                              OCEANA

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP
      (BP)

                                                                                            	 	 	5.000	 	 	 	4.850	 	 	 	5.000	 	 	 	4.850	 
	
                                                                                              JACKSON
      #1 PDNP (BP)

                                                                                            	 	
                                                                                              OCEANA
      EAST

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP
      (BP)

                                                                                            	 	 	4.000	 	 	 	3.300	 	 	 	4.000	 	 	 	3.300	 
	
                                                                                              LAMB
      #1 PDNP (BP)

                                                                                            	 	
                                                                                              OCEANA
      EAST

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP
      (BP)

                                                                                            	 	 	1.039	 	 	 	1.119	 	 	 	1.039	 	 	 	1.119	 
	
                                                                                              NLC
      CHURCH #1 PDNP (BP)

                                                                                            	 	
                                                                                              OCEANA
      EAST

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP
      (BP)

                                                                                            	 	 	5.000	 	 	 	4.850	 	 	 	5.000	 	 	 	4.850	 
	
                                                                                              PCT
      #134 PDNP (BP)

                                                                                            	 	
                                                                                              YUKON
      - S

                                                                                            	 	
                                                                                              McDOWELL

                                                                                            	 	
                                                                                              2-PDNP
      (BP)

                                                                                            	 	 	5.000	 	 	 	4.100	 	 	 	2.585	 	 	 	2.120	 
	
                                                                                              PCT
      #145 PDNP

                                                                                            	 	
                                                                                              YUKON
      - S

                                                                                            	 	
                                                                                              McDOWELL

                                                                                            	 	
                                                                                              2-PDNP

                                                                                            	 	 	3.000	 	 	 	2.460	 	 	 	1.274	 	 	 	1.554	 
	
                                                                                              PCT
      #149 PDNP

                                                                                            	 	
                                                                                              YUKON
      - N

                                                                                            	 	
                                                                                              McDOWELL

                                                                                            	 	
                                                                                              2-PDNP

                                                                                            	 	 	2.500	 	 	 	2.050	 	 	 	1.292	 	 	 	1.059	 
	
                                                                                              PCT
      #173 PDNP

                                                                                            	 	
                                                                                              YUKON
      - S

                                                                                            	 	
                                                                                              McDOWELL

                                                                                            	 	
                                                                                              2-PDNP

                                                                                            	 	 	5.500	 	 	 	4.510	 	 	 	2.844	 	 	 	2.332	 
	
                                                                                              PCT
      #176 PDNP

                                                                                            	 	
                                                                                              YUKON
      - S

                                                                                            	 	
                                                                                              McDOWELL

                                                                                            	 	
                                                                                              2-PDNP

                                                                                            	 	 	12.500	 	 	 	10.250	 	 	 	6.465	 	 	 	5.300	 
	
                                                                                              STEPP
      #1 PDNP (BP)

                                                                                            	 	
                                                                                              OCEANA

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP
      (BP)

                                                                                            	 	 	6.500	 	 	 	5.500	 	 	 	6.500	 	 	 	5.500	 
	
                                                                                              TOLER,
      D.R. #1 PDNP (BP)

                                                                                            	 	
                                                                                              OCEANA
      EAST

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP
      (BP)

                                                                                            	 	 	4.000	 	 	 	3.280	 	 	 	4.000	 	 	 	3.280	 
	
                                                                                              WEST,
      S. #2 PDNP

                                                                                            	 	
                                                                                              CLEAR
      FORK

                                                                                            	 	
                                                                                              WYOMING

                                                                                            	 	
                                                                                              2-PDNP

                                                                                            	 	 	2.500	 	 	 	2.550	 	 	 	2.500	 	 	 	2.550	 

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A-3 SUMMIT WELLS

    CLASSIC
OIL & GAS      %

          
RESOURCES, INC.     VARIES

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 
      	 	 
      	 	
                                              CLASSIC
      INTERESTS

                                            	 	
                                              BPO

                                            	 	 	
                                              BPO

                                            	 	 	
                                              APO

                                            	 	 	
                                              APO

                                            	 
	
                                              WELL

                                            	 	
                                              PROSPECT

                                            	 	
                                              COUNTY

                                            	 	
                                              STATUS

                                            	 	
                                              WI

                                            	 	 	
                                              NRI

                                            	 	 	
                                              WI

                                            	 	 	
                                              NRI

                                            	 
	 
      	 	 
      	 	 
      	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                                              BOLEN#1
      PDP

                                            	 	
                                              OCEANA
      EAST

                                            	 	
                                              WYOMING

                                            	 	
                                              1-PDP

                                            	 	 	1.039	 	 	 	1.119	 	 	 	1.039	 	 	 	1.119	 
	
                                              COOK
      #1 PDP

                                            	 	
                                              OCEANA
      EAST

                                            	 	
                                              WYOMING

                                            	 	
                                              1-PDP

                                            	 	 	5.526	 	 	 	4.560	 	 	 	5.526	 	 	 	4.560	 
	
                                              COOK
      #2 PDP

                                            	 	
                                              OCEANA
      EAST

                                            	 	
                                              WYOMING

                                            	 	
                                              1-PDP

                                            	 	 	1.039	 	 	 	0.857	 	 	 	1.039	 	 	 	0.857	 
	
                                              HATFIELD
      #1 PDP

                                            	 	
                                              OCEANA

                                            	 	
                                              WYOMING

                                            	 	
                                              1-PDP

                                            	 	 	1.039	 	 	 	1.119	 	 	 	1.039	 	 	 	1.119	 
	
                                              JEWELL
      #1 PDP

                                            	 	
                                              OCEANA
      EAST

                                            	 	
                                              WYOMING

                                            	 	
                                              1-PDP

                                            	 	 	1.039	 	 	 	1.119	 	 	 	1.039	 	 	 	1.119	 
	
                                              LAMB
      #1 PDP

                                            	 	
                                              OCEANA
      EAST

                                            	 	
                                              WYOMING

                                            	 	
                                              1-PDP

                                            	 	 	1.039	 	 	 	1.119	 	 	 	1.039	 	 	 	1.119	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A-4  PDP WELLS

    CLASSIC OIL &
GAS     100%

         RESOURCES,
INC.      WELLS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 
      	 	 
      	 	
                                          CLASSIC
      INTERESTS

                                        	 	
                                          BPO

                                        	 	 	
                                          BPO

                                        	 	 	
                                          APO

                                        	 	 	
                                          APO

                                        	 
	
                                          WELL

                                        	 	
                                          PROSPECT

                                        	 	
                                          COUNTY

                                        	 	
                                          STATUS

                                        	 	
                                          WI

                                        	 	 	
                                          NRI

                                        	 	 	
                                          WI

                                        	 	 	
                                          NRI

                                        	 
	 
      	 	 
      	 	 
      	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                                          ADKINS
      #1 PDP

                                        	 	
                                          INDIAN
      CREEK

                                        	 	
                                          WYOMING

                                        	 	
                                          1-PDP

                                        	 	 	15.000	 	 	 	12.825	 	 	 	15.000	 	 	 	12.825	 
	
                                          BOBO
      #1 PDP

                                        	 	
                                          GILBERT
      CREEK

                                        	 	
                                          MINGO

                                        	 	
                                          1-PDP

                                        	 	 	75.000	 	 	 	66.250	 	 	 	75.000	 	 	 	66.250	 
	
                                          CLINE,
      ELMER #1 PDP

                                        	 	
                                          GILBERT
      CREEK

                                        	 	
                                          MINGO

                                        	 	
                                          1-PDP

                                        	 	 	100.000	 	 	 	87.500	 	 	 	100.000	 	 	 	87.500	 
	
                                          CLINE,
      ELMER #2 PDP

                                        	 	
                                          GILBERT
      CREEK

                                        	 	
                                          MINGO

                                        	 	
                                          1-PDP

                                        	 	 	15.500	 	 	 	15.250	 	 	 	15.500	 	 	 	15.250	 
	
                                          CLINE,
      R. S. #1 PDP

                                        	 	
                                          ELK
      LICK

                                        	 	
                                          WYOMING

                                        	 	
                                          1-PDP

                                        	 	 	30.000	 	 	 	27.650	 	 	 	30.000	 	 	 	27.650	 
	
                                          CNB
      748 PDP

                                        	 	
                                          BOONE
      COUNTY

                                        	 	
                                          BOONE

                                        	 	
                                          1-PDP

                                        	 	 	100.000	 	 	 	80.280	 	 	 	100.000	 	 	 	80.280	 
	
                                          ELLIS
      #1 PDP

                                        	 	
                                          GILBERT
      CREEK

                                        	 	
                                          MINGO

                                        	 	
                                          1-PDP

                                        	 	 	100.000	 	 	 	87.500	 	 	 	100.000	 	 	 	87.500	 
	
                                          ELLIS
      #2 PDP

                                        	 	
                                          GILBERT
      CREEK

                                        	 	
                                          MINGO

                                        	 	
                                          1-PDP

                                        	 	 	19.500	 	 	 	18.670	 	 	 	19.500	 	 	 	18.670	 
	
                                          McGRAW
      #1 PDP

                                        	 	
                                          PECKS
      MILL - LF

                                        	 	
                                          LOGAN

                                        	 	
                                          1-PDP

                                        	 	 	10.000	 	 	 	9.000	 	 	 	10.000	 	 	 	9.000	 
	
                                          MEADOWS
      #1 PDP

                                        	 	
                                          BRENTON

                                        	 	
                                          WYOMING

                                        	 	
                                          1-PDP

                                        	 	 	100.000	 	 	 	87.500	 	 	 	100.000	 	 	 	87.500	 
	
                                          OWENS
      #1 PDP

                                        	 	
                                          GARDEN
      GAP

                                        	 	
                                          WYOMING

                                        	 	
                                          1-PDP

                                        	 	 	20.000	 	 	 	18.300	 	 	 	20.000	 	 	 	18.300	 
	
                                          PENN
      VA. #920 PDP

                                        	 	
                                          ANAWALT

                                        	 	
                                          McDOWELL

                                        	 	
                                          1-PDP

                                        	 	 	100.000	 	 	 	87.500	 	 	 	100.000	 	 	 	87.500	 
	
                                          SMITH
      #1 PDP

                                        	 	
                                          GILBERT
      CREEK

                                        	 	
                                          MINGO

                                        	 	
                                          1-PDP

                                        	 	 	20.000	 	 	 	19.100	 	 	 	20.000	 	 	 	19.100	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A-5  PDNP&BP WELLS

    CLASSIC OIL & GAS    
100%

       
RESOURCES, INC.    WELLS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 
      	 	 
      	 	
                                          CLASSIC
      INTERESTS

                                        	 	
                                          BPO

                                        	 	 	
                                          BPO

                                        	 	 	
                                          APO

                                        	 	 	
                                          APO

                                        	 
	
                                          WELL

                                        	 	
                                          PROSPECT

                                        	 	
                                          COUNTY

                                        	 	
                                          STATUS

                                        	 	
                                          WI

                                        	 	 	
                                          NRI

                                        	 	 	
                                          WI

                                        	 	 	
                                          NRI

                                        	 
	 
      	 	 
      	 	 
      	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                                          TINSLEY
      #1 PDNP

                                        	 	
                                          GILBERT
      CREEK

                                        	 	
                                          MINGO

                                        	 	
                                          2-PDNP

                                        	 	 	100.000	 	 	 	77.500	 	 	 	100.000	 	 	 	77.500

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]