Document:

grayemployagreement

                              EMPLOYMENT AGREEMENT

        THIS EMPLOYMENT AGREEMENT ("this Agreement") is made and entered into as of
the 1st day of June. 2002, by and between Surgical Safety Products, Inc, a New
York corporation (the "Company"), and R. Paul Gray, an individual ("Gray", "he",
"his", or "him") (referred to hereinafter, each as a "Party", and collectively
as the "Parties").

        WHEREAS, the Company desires to employ Gray as the Company's Executive
Vice-President & Chief Financial Officer (CFO) to perform the duties as set
forth in this Agreement; and

        WHEREAS, Gray is willing to accept such employment upon the terms and
conditions set forth in this Agreement, and further conditioned upon the
Company's continued and faithful performance of its duties and obligations under
this Agreement;

        NOW, THEREFORE, in consideration of the foregoing, the promises contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties, intending to be legally bound,
agree as follows:

        1. Effective Date and Term:

        1.01 Term and Effective Date: The term of Gray's employment shall commence
on the date hereof (the "Effective Date") and shall, continue until terminated
pursuant to the provisions for termination as hereinafter provided in ss.5 of
this Agreement.

        2. Gray's Duties and Authority

        2.01 Duties: Gray shall be assigned and perform those duties of the type,
nature and dignity normally assigned to the Executive Vice President & Chief
Financial Officer of an entity similar in type and nature to that of the
Company. Gray shall devote 100% of his work time (excepting periods of vacation,
illness, disability, and Permitted Activities as hereinafter defined), services
and abilities to the Company and its accounting and financial affairs and
requirements, during the normal business hours of the Company.

        2.02 Authority: Gray shall participate in and manage all decisions
regarding the Company's operational, administrative, business, and financial
affairs of the Company. Gray shall be responsible to, and shall report directly
to Company CEO. Gray shall be kept advised and timely informed of information,
issues, or problems relevant to operational, administrative, business, and
financial affairs of the Company.

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        2.03 Support: Gray shall be afforded office space, computer support
(including legal and corporate data bases), reference materials, subscriptions,
Continuing professional education ("CPE") and other materials and support
necessary to perform his duties and responsibilities, and maintain professional
proficiency and skill. Gray shall be provided reasonable administrative and
in-house professional support, including the right to engage, at his discretion,
the services and advice of outside auditors and accountants to assist him in the
performance of his duties, including providing accounting and auditing expertise
and advice in matters and areas in which he, in his discretion, feels desirable,
and he shall have the authority and discretion to terminate the services of any
such outside support.

        3. Compensation

        3.01 Base Salary: Gray shall be paid an annual base salary ("Base Salary")
of One Hundred Fifty Thousand ($150,000.) Dollars, payable in no less frequent
installments than twice monthly. Upon the first anniversary form the Effective
Date his Base Salary shall be increased by an amount equal to not less than ten
(20%) percent and shall be paid on the same basis and frequency as provided
above; and over that paid payable for the immediately preceding term, or in such
greater amount as the Company and Gray shall agree.

        3.02 Discretionary Bonus Compensation: In the discretion of the Company's
President & CEO, and based upon his annual performance evaluation Gray may be
awarded cash bonuses, in addition to his Base Salary, the amount of said bonus
to be based upon the extent to which the Company's gross revenues have increased
during the period, up to a maximum of 100% of Gray's Base Salary for the period
in which the bonus is awarded ("Discretionary Bonus"). The Discretionary Bonus
shall be in addition to, not in lieu of, bonuses, awards, and benefits given or
received by Gray underss.3.03 andss.4 of this Agreement.

        3.03 Withholding of Taxes: The Company shall cause to be withheld from
Gray's taxable compensation or benefits, and remitted to the appropriate taxing
authority, all federal, state and local taxes as shall be required to be
withheld by law, regulation or ruling.

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        4. Benefits and reimbursement

        4.01 Business Related Benefits, Payments and Reimbursements: Gray shall
receive the following benefits in addition to the compensation provided inss.3
of this Agreement: i) fully paid family health insurance under the company group
plan; ii) fully paid family dental insurance under company group plan; iii)
payment or reimbursement of all business related use of telephone (including
cellular), home fax, and other business related productivity devices; v) payment
or reimbursement of all business related travel expenses; and iv) fully
compensated leave and vacation at his discretion reasonably exercised in
recognition of his duties and performance requirements.

        4.02 Fringe Benefits: Gray shall be entitled to receive all fringe benefits
afforded to, and upon the same basis as, the highest executives of the Company,
including, but not limited to: participation in the Company's 401k Plan; life
insurance (including any tax sheltered annuity plan "split dollar" plan, and
executive term life coverage available); awards under all stock option, bonus,
and incentive plans of the Company; Company paid health and reimbursement
(medical and dental) coverage for him and his spouse; short term sick leave and
long term disability benefits coverage; and accident insurance coverage.

        4.03 Rights Regarding Stock. (a) Company stock issued or acquired by Gray,
or, if applicable, Company stock acquired through the exercise of any option to
purchase such stock shall i) be issued to Gray without restriction on his
immediate sale or disposition of such stock; ii) shall be fully registered, or
if no registration statement has yet been made effective, will have "Piggy-Back"
rights whereby Gray may elect, and the Company shall give Gray adequate notice
for him to make such election, to have such shares included on the next
registration statement filed by the Company after such payment or grant at the
Company's sole expense; iii) shall not, without Gray's written consent, be
subject to any "Lock-up", or "Stand-still" agreement ; provided however, that if
such an agreement is required by an underwriter of, and as a condition of, a
public offering of such stock, then Gray may, in his discretion, "put" such
number of shares to the Company as he shall elect, at such price per share as
may be agreed to by the Parties, and the Company shall, as a condition precedent
to Gray's consent, pay Gray in full for such shares and Gray shall thereupon
give his written consent to and shall enter into such agreement.

        (b) With reference to any options to purchase Company Stock which may be
granted to Gray, should at anytime: i) the Company elect to make a public
offering of its stock; or ii) should there occur a "change in control" of the
Company whereby (and which shall, for the purposes of this Agreement be defined
as) any "Person" (as that term is defined or used for purposes ofss.13(d) or
14(d) of the Exchange Act acquires "Beneficial Ownership"(within the meaning of
Rule 13d-3 under the Exchange Act)) voting securities of the Company ("Voting
Securities") representing 20% or more of the combined voting power of the
Company's then outstanding Voting Securities; or iii) should there occur w) an
acquisition of 30% or more of the Company's assets, x) a merger, y) a
consolidation, or z) a reorganization, involving the Company; then upon the
occurrence of any of the aforesaid any options still unvested at the time of
such occurrence shall become immediately vested and exercisable.

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        5. Termination

        5.01 Termination by the Company for Cause: (a) The Company may terminate
this Agreement for "Cause" by giving Gray thirty (30) days written notice.
"Cause shall be defined as and shall be only upon the following conditions:

        1) conviction of a criminal offense, other than a traffic related offense;
        2) gross disregard or intentional misconduct in the performance of his
           duties as set out inss.2, including engaging in activities for profit outside
           of his duties for the Company, except for Permitted Activities;
        3) any intentional act which materially damages the Company's
           reputation; and
        4) inability to substantially perform his duties and responsibilities by reason
           of physical or mental disability, which shall be determined, at the Company's
           expense, by the opinion of at least two of a panel of three licensed
           physicians, two of whom may be selected by Gray, one or more of whom must
           specialize in the area of Gray's allegedly disabling condition.

        In the event of termination of this Agreement for Cause under 1), 2), or 3)
of thisss.5.01(a), Gray shall be entitled to no further salaried compensation or
bonuses after the effective date of termination, except as provided in ss.5.04.
Such termination may be made effective immediately upon the Company's payment in
full upon such effective date of Gray's salaried compensation under this
Agreement which would become due over the thirty (30) day notice period,
together with such other sums as provided underss.5.04.

        In the event that this Agreement is terminated for Cause as specified under
4) of thisss.5.01(a), Gray shall receive Termination Payments (as defined
inss.5.02(b)) for 90 days from the effective date of termination.

        5.02 Involuntary Termination: (a) The Company shall be entitled to
terminate Gray's employment for any reason other than Cause only by giving him
ninety (90) days written notice ("Involuntary Termination"). The Company shall
have the right to make such termination effective at any time prior to the
expiration of the 90-day notice period by paying Gray immediately upon the
giving of such notice of termination all compensation and benefits due and to
become due under this Agreement for the 90-day notice period, and such portion,
if any, of the bonus compensation underss.ss.3.02 and 3.03 as shall be due but
unpaid to him as of the expiration of the 90-day period.

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        (b) If the Company terminates this Agreement for any reason other than
Cause then in addition to the payments provided in (a) of thisss.5.02, the
Company shall pay and provide to Gray, all of the compensation provided
underss.3.01 andss.3.02 of this Agreement, at the rate and level as shall then
be in effect; plus the insurance fringe benefits provided underss.4.02
(collectively, the "Termination Payments") and shall continue to pay and provide
to him following the effective date upon which such termination shall occur, for
(i) 6 months if termination occur prior to six months from the Effective Date,
or (ii) 3 months should the termination occur thereafter ("Post Termination
Period").

        Termination by Gray: (a) Gray may terminate his employment with the
Company, at any time, at his discretion ("Resign") upon the giving of written
notice to the Company. In the event that Gray Resigns for other than Good Reason
(as hereinafter defined), he shall receive no Termination Payments, or any other
or further compensation except as provided inss.5.04 of this Agreement.
Provided, however, that should Gray Resign for Good Reason (as hereinafter
defined) he shall be entitled to receive, and shall receive, as provided
inss.5.02, Termination Payments for 6 months following the effective date upon
which he Resigns. "Good Reason" shall be defined, and shall be deemed to exist
or occur for any one of the following: i) if Gray's position, day-to-day duties,
or responsibilities with the Company are diminished or otherwise changed or
modified without his consent; ii) should his working relationship or treatment
by the Company's senior management be degraded, or should he be required or
demanded to take or commit an act or omission which Gray deems, in his
reasonable discretion, to be illegal or unethical; iii) should for any reason
his then current cash or stock compensation be reduced, or his benefits and
perquisites underss.4 be materially reduced, or any of the foregoing not be
timely paid or provided; iv) if there occurs or exists a change in the
management control of the Company or in its Board of Directors; v) if their
occurs a "change in control" as defined inss.3.03(a); vi) if the Company
relocates Gray's daily work-place to a location outside of a 150-mile radius of
Sarasota, Florida, except for reasonably required and occasional travel on the
Company's business; or vii) if the Company fails or refuses to timely provide or
perform any of its duties, obligations, commitments, or undertakings under this
Agreement.

        (b) If Gray Resigns his employment for Good Reason then in addition to the
payments provided in ofss.5.02(a), the Company shall pay and provide to Gray,
and shall continue to pay and provide to him Benefits for the Post Termination
Period.

        5.04 Effect of Termination Under Certain Circumstances On Unvested Option
Grants: In the event that Gray's employment shall terminate either: i)
involuntarily for Cause underss.5.01(a), 4); or ii) involuntarily underss.5.02;
or iii) because Gray Resigns with Good Reason underss.5.03, all stock options
which are yet unvested as of the effective date of such termination shall upon
such effective date become immediately vested and exercisable.

                                       5

        5.05 Unpaid Compensation: In addition to and notwithstanding any other
payments provided under this Agreement, including thisss.5, upon his
termination, regardless of the reason or cause therefor, Gray shall be paid any
and all earned or accrued but unpaid benefits and compensation including,
without limitation, reimbursement for incurred expenses, and any bonus
compensation earned but unpaid as of the effective date of such termination.

        6. Miscellaneous Provisions

        6.01 Notices: Notices required or permitted to be given under this
Agreement shall be sufficient if in writing and delivered by hand, or sent by
certified or registered mail--return receipt requested and postage prepaid, to
the Parties at their respective addresses as follows, or to such other recipient
as the Parties, or either of them, shall designate in writing to the other:

                To the Company:            Surgical Safety Products, Inc.
                                           Attn: The Board of Directors
                                           One Sarasota Tower
                                           2 North Tamiami Trail
                                           Suite 608
                                           Sarasota, FL 34236
                                           (941) 953-9848
                                           (941) 953-6776 FAX

                To Gray:                   R. Paul Gray
                                           43389 Deep Spring CT
                                           Ashburn, VA  20147
                                           (703) 858-1729
                                           (703) 723-4372 FAX

        6.02 Non-waiver of Breach: The waiver by a Party of a breach of any
provision(s) of this Agreement shall neither be deemed, operate, nor be
construed as a waiver by either Party of any other, or subsequent, breach.

        6.04 Amendment: This Agreement may neither be amended nor modified except
by a writing executed by both of the Parties.

        6.05 Governing Law: This Agreement shall be governed by the laws of the
Commonwealth of Virginia.

        6.06 Separability: Should any provision, condition, or term of this
Agreement, or part thereof, be deemed or determined to be illegal, prohibited,

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or null and void, it shall not effect the enforceability of any other of the
remaining provisions, conditions, or terms hereof, and the remaining provisions,
conditions, and terms shall be enforced as though the provision, condition, or
term so deemed or determined had not been contained herein.

        6.07 Arbitration: The Parties agree that disputes, controversies, or claims
arising out of or related to this Agreement, which can not be settled by
agreement of the Parties, including a claim of breach thereof, and including the
issue of arbitrability, shall be determined by a single arbitrator appointed by
agreement of the Parties, or if unable to agree, then by the American
Arbitration Association ("the AAA"). The arbitration shall be conducted in
accordance with the then current Commercial Arbitration Rules of the AAA, or
such other rules as to which the Parties may agree. The Parties shall each bear
their respective costs and expenses of the arbitration. The decision of the
arbitrator shall be final and binding upon the Parties, and a fully enforceable
judgment may be entered upon the award in any court of competent jurisdiction.

        6.08 Successors and Assigns: (a) This Agreement shall be binding upon and
shall inure to the benefit of the Company and its successors and assigns, and
the Company shall require any successor or assign to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if there had been no such succession or
assignment. The term "successors and assigns" shall mean a corporation or other
entity, or individual acquiring all or substantially all the assets and business
of the Company whether by operation of law or otherwise; and the term "the
Company", as used herein, shall be deemed to include such successors and
assigns.

        (b) Neither this Agreement nor any right or interest hereunder shall be
assignable or transferable by Gray, his beneficiaries or legal representatives,
except by will or the applicable laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by Gray's personal
representative.

        6.09 Indemnification: The Company shall indemnify Gray and hold him
harmless from any and all suits, claims, demands, and liability of any and every
kind and nature ("Proceeding"), against all Expenses (as hereinafter defined)
incurred or suffered by him in connection therewith, including those to which he
is threatened to be made a party, arising out of or related, in whole or in
part, to acts or omissions in connection with, or within the scope of, his
employment or activities with the Company, provided that such act or omission
was taken or performed, or omitted to be taken or performed, in good faith by
Gray, and in a manner which he reasonably believed to be not opposed to the
Company's best interest. As used in this Agreement, the term "Expenses" shall
include, without limitation, damages, losses, judgments, liabilities, fines,
penalties, excise taxes, settlements, and costs, attorneys' fees, accountants'
fees, investigations, and any expenses of establishing a right to
indemnification under this Agreement. Expenses incurred by Gray in connection
with any Proceeding shall be paid by the Company in advance upon request of Gray
that the Company pay such Expenses. Such indemnification obligation shall
continue as to Gray even if he has ceased to be an officer, director, or agent,
or is no longer employed by the Company and shall inure to the benefit of his
heirs, executors and administrators. The company shall not, without Gray's prior
written consent, settle any action or claim in any manner that would not include
a full and unconditional release of Gray. Neither the Company nor Gray will
unreasonably withhold or delay their consent to any proposed settlement. The

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Company shall provide Gray coverage equal to that afforded the highest executive
of the Company under the directors' and officers' liability policy currently and
from time to time in force, or, if none, a policy commercially acceptable to
Gray; but in no event shall Gray be obligated or required to satisfy or
contribute to any self-insured retention, deductible or similar provision under
such policies, as those terms are used in their commercial meaning within the
insurance industry.

        6.10 Entire Understanding: This Agreement represents the full, complete and
entire understanding of the Parties with respect to the matters contained in
this Agreement, and there are no other contracts, representations,
understandings, agreements, undertakings, conditions precedent or subsequent, or
other obligations of any kind or nature, expressed or implied, written or oral,
which are not set forth in, or have been or shall be made or entered into
pursuant to, this Agreement.

        IN WITNESS WHEREOF, the Parties have executed this Agreement, the Company
acting by and through its duly authorized officer, as of the date first above
written.

                                          Surgical Safety Products, Inc.
                                          ("the Company"):

                                          By:/s/ Timothy Novak
                                             Name: Timothy S. Novak
                                             Title: CEO & Chairman of the Board

                                          Employee:

                                          By:/s/ R. Paul Gray
                                             Name:   R. Paul Gray
                                             Title:  Executive Vice President & CFOEXHIBIT 10.3(C)
                                                                 ---------------

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

         THIS THIRD AMENDMENT TO CREDIT AGREEMENT (the "Amendment") is executed
to be effective as of the 16th day of August, 2002 by and between GMX RESOURCES
INC., an Oklahoma corporation, ENDEAVOR PIPELINE INC., an Oklahoma corporation,
and EXPEDITION NATURAL RESOURCES INC., an Oklahoma corporation (the "Borrowers")
and LOCAL OKLAHOMA BANK, N.A. (the "Bank").

                              W I T N E S S E T H:

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

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

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

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

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

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

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

         A. CHANGES TO THE AGREEMENT

         1. Section 7.1 of the Agreement, Adjusted Current Ratio, Section 7.2 of
the Agreement, Debt Service Coverage Ratio, and Section 7.3 of the Agreement,
Indebtedness to Tangible Net Worth, are hereby amended and restated in their
entirety as follows:
<PAGE>

          7.1 Adjusted Current Ratio. Beginning with the month ending July 31,
          2002, maintain a minimum Adjusted Current Ratio, calculated and
          submitted on a monthly basis of, at least, 1.00:1.00. The "Adjusted
          Current Ratio" is defined as Current Assets plus the Available
          Commitment divided by Current Liabilities, minus any liabilities
          resulting from "mark-to-market" accounting treatment for hedging
          contracts, minus any balance outstanding on this credit facility that
          would otherwise be accounted for as a Current Liability.

                  7.2 Debt Service Coverage Ratio. Beginning with the month
          ending July 31, 2002, maintain a Debt Service Coverage Ratio,
          calculated and submitted on a monthly basis, of not less than
          1.10:1.00 For purposes of this calculation, the Debt Service Coverage
          Ratio is defined as the quotient of:

                  the sum of consolidated Net Income, minus dividends, plus
                  interest, depletion, depreciation, and amortization expenses
                  (for the month then ended),

                                   DIVIDED BY

                  the greater of (i) sum of the monthly principal reductions
                  required to amortize the Loan Balance (as of month end) over
                  the Half Life of the Borrowers' Oil and Gas Properties (not to
                  exceed 84 months) or (ii) the actual Monthly Commitment
                  Reductions realized during the month then-ended, plus interest
                  expense for the month then ended, plus any other current
                  maturities of long term debt (including Capital Lease
                  Obligations) realized during the month then ended.

                  7.3 Indebtedness to Tangible Net Worth Ratio. Beginning with
          the monthly reporting period ending July 31, 2002 and calculated and
          submitted on a monthly basis thereafter, maintain a ratio of
          Indebtedness to Tangible Net Worth of not more than 1.50:1.00.

         B. REPRESENTATIONS AND WARRANTIES

         Each Borrower hereby represents and warrants to Bank that:

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

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

                                       2
<PAGE>

not result in the imposition of liens, charges or encumbrances on any of its
properties or assets, except those in favor of Bank hereunder.

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

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

                  5. The Borrowers are the sole and lawful owner of the
Collateral, pledged, mortgaged or assigned by it, and Borrowers have, and as to
after acquired property or new properties will have, good right to cause the
Collateral to be hypothecated to Bank as security for the obligations described
in the Agreement, as amended hereby. Further, the ownership interests set forth
in that certain Engineering Report dated March 19, 2002 from Sproule Associates,
Inc. purported to be owned by Borrowers, or any one of them, are true and
correct and Borrowers do, in fact, own such interests in such Collateral.

                  6. The Collateral set forth on that certain Engineering Report
dated March 19, 2002 from Sproule Associates, Inc. are free and clear of all
mortgages, liens and encumbrances, except for Permitted Liens and liens in favor
of Cudd Pressure Control, Inc. and Nabors Drilling USA, LP which will be paid
with proceeds of the Loan. Further, Borrowers have no invoices for labor related
to such properties or materials provided to such properties which have not been
paid within 90 days from the date such invoice is due and payable.

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

         C. CONDITIONS

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

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

                                       3
<PAGE>

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

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

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

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

         D. OTHER COVENANTS AND MISCELLANEOUS TERMS

                  1. Borrowers hereby agree to provide such additional mortgages
and title work pertaining to the Oil and Gas Properties to Bank's satisfaction
within thirty (30) days of any such request by Bank.

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

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

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

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

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

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<PAGE>

in courts (whether State or Federal) sitting in Oklahoma City, Oklahoma, and the
Borrowers hereby irrevocably waives any objection to such jurisdiction and
venue.

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

                                   BORROWERS:

                                   GMX RESOURCES INC.,
                                   an Oklahoma corporation

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

                                   ENDEAVOR PIPELINE INC.,
                                   an Oklahoma corporation

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

                                   EXPEDITION NATURAL RESOURCES INC.,
                                   an Oklahoma corporation

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

                                   BANK:

                                   LOCAL OKLAHOMA BANK, N.A.

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

                                       5

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