Document:

PLEDGE AND SECURITY AGREEMENT
                          -----------------------------
                           (LLC Membership Interests)

     This  Pledge and Security Agreement (this "Agreement") is made effective as
of  February  7,  2007  ("Effective  Date"),  by  and between PETROSEARCH ENERGY
CORPORATION,  a  Nevada  corporation ("Pledgor"), and RCH PETRO INVESTORS, LP, A
Delaware  limited  partnership  ("Secured  Party").

                                    RECITALS:

     A.     Pledgor  is  a Nevada corporation  in  the  business  of  acquiring,
developing  and  operating  oil and gas properties in several states, including,
Texas,  Oklahoma,  North  Dakota,  and  Mississippi.  Pledgor  owns  100% of the
membership interests of Exploration Holding Co., L.L.C. ("Exploration Holding").
Exploration  Holding  owns  100%  of  the  membership  interests  of  Barnett
Petrosearch,  L.L.C.  ("Barnett  Petrosearch").  Each of Exploration Holding and
Barnett  Petrosearch  is  a  Texas  limited  liability  company.

     B.      Barnett Petrosearch owns a  5.54455%  limited  partnership interest
in  DDJET,  Limited, LLP, a Texas limited liability limited partnership ("DDJET"
or  "the  Partnership"),  organized  on  December 15, 2006, by Metroplex Barnett
Shale,  LLC,  a  Delaware  limited  liability  company, ("Metroplex") as General
Partner.  Metroplex  is  a  direct  subsidiary of Exxon Mobil Corporation. Cinco
County  Barnett  Shale,  LLC,  a  Texas limited liability company ("Cinco") is a
Limited  Partner  of the Partnership and Cinco is a direct subsidiary of Harding
Company,  a private Fort Worth based exploration company. Barnett Petrosearch is
also  a  Limited  Partner of the Partnership. The Partnership was formed for the
purpose  of  acquiring,  exploring, developing, owning and operating oil and gas
leases and other mineral interests in portions of Collin, Dallas, Denton, Ellis,
Hill,  Johnson,  Navarro  and Tarrant Counties, Texas and to acquire, construct,
own and operate pipeline assets for the evacuation of hydrocarbons produced from
these properties. The area and interests covered by the Partnership are situated
in  a  geologic  region  generally  known  as  the  Barnett  Shale.

     C.     Pledgor  has  entered  into  a  certain  Note  and  Warrant Purchase
Agreement,  dated  as  of  February  1,  2007  with  Secured Party (as such Note
Purchase  may be hereafter amended, supplemented, modified, renewed or extended,
the "Purchase Agreement"), pursuant to and in accordance with which, Pledgor has
executed  a  certain 8% Senior Secured Convertible Note Due February 7, 2010 (as
such  Note  may  be  hereafter  amended,  modified,  renewed  or  extended,  the
"Convertible  Note")  in the original principal amount of TEN MILLION AND NO/100
DOLLARS  ($10,000,000.00)  for  general working capital needs, which include the
payment  of  certain  of  Barnett  Petrosearch's  direct  partnership  financial
obligations  related  to  the  Barnett  Shale  Project.

     D.     Secured  Party  requires  that  25%  of  the  membership  interests
(ownership  interests)  in  Exploration Holding be pledged by Pledgor to Secured
Party  as  security  for  repayment  of the Convertible Note and as security for
performance  of  the other obligations described in the Purchase Agreement , the
Convertible  Note,  and  the  associated  transaction  documents.

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     D.     It  is  a  condition  precedent to the effectiveness of the Purchase
Agreement  that this Agreement shall have been executed and delivered by Pledgor
and  shall  be  in  full  force  and  effect;  and

     E.     Pledgor  has  determined  that  Pledgor's  execution,  delivery  and
performance  of this Agreement may reasonably be expected to provide substantial
benefit  to  Pledgor, directly or indirectly, and to be in the best interests of
Pledgor.

     NOW,  THEREFORE,  FOR  VALUE  RECEIVED,  the  sufficiency  of  which  is
acknowledged  by  the  parties,  the  parties  hereto  agree  as  follows:

                                    ARTICLE I
                          SECURITY INTEREST AND PLEDGE
                          ----------------------------

     Section  1.01.     DEFINED  TERMS  AND  RELATED  MATTERS.
                        -------------------------------------

     (a)     Capitalized  terms  used  and not otherwise defined herein that are
defined  in  the  Convertible  Note  shall  have the meanings specified therein.
Capitalized  terms  used and not otherwise defined herein  or in the Convertible
Note  that  are  defined  in  the  Purchase  Agreement  shall  have the meanings
specified  therein.  Terms  defined in the singular include the plural and terms
defined  in  the  plural  include  the  singular.

     (b)     The  words  "hereof", "herein" and "hereunder" and words of similar
import  when used in this Agreement shall refer to this Agreement as a whole and
not  to  any  particular  provision  of  this  Agreement.

     (c)     Unless  otherwise  defined herein or in the Purchase Agreement, the
terms  defined  in Articles 8 and 9 of the Uniform Commercial Code as enacted in
the  State of Texas as in effect from time to time (the "Code"), are used herein
as  therein  defined.

     (d)     "Pledged  Securities"  means  any and all limited liability company
              -------------------
interests  and  other  capital  securities  (including,  without limitation, any
warrants,  options  or  other  rights  to  purchase  limited  liability  company
interests of Exploration Holding) constituting, but not exceeding, a twenty-five
percent  (25%)  ownership  interest in Exploration Holding, whether now owned or
hereafter acquired by Pledgor, including the limited liability company interests
identified on Schedule A hereto as Pledged Securities, as such Schedule A may be
              ----------                                       ----------
updated  and  supplemented  from time to time in accordance with Section 3.04(b)
hereof.

     Section  1.02     SECURITY  INTEREST  AND  PLEDGE.  Subject to the terms of
                       -------------------------------
this  Agreement,  Pledgor  hereby pledges and delivers to the Secured Party, and
hereby  grants  to  the  Secured  Party,  a lien on and security interest all of
Pledgor's  rights,  titles,  interests and privileges in and with respect to the
Pledged  Securities, whether now owned or hereafter acquired, including, without
limitation:  (a)  all limited liability company interests of Exploration Holding
and  all  securities convertible or exchangeable into, and all warrants, options
or  other  rights to purchase limited liability company interests of Exploration
Holding  (but  not  exceeding  the  twenty-five  percent  (25%)  amount  of  all
membership  interests contemplated by the definition of Pledged Securities); (b)
all  certificates  or

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instruments representing Pledged Securities and all proceeds, income and profits
thereon, and all interest, dividends and other payments, property, revenues, and
distributions  with  respect thereto; (c) all proceeds received or receivable by
Pledgor  in  cash,  stock  or  otherwise,  from  any  recapitalization,
reclassification,  merger,  dissolution, liquidation or other termination of the
existence of Exploration Holding relating to the Pledged Securities; and (d) all
other  proceeds  or  assets  received or receivable by Pledgor in respect of its
status as a member of Exploration Holding with respect to the Pledged Securities
(all  such  property,  collectively,  the  "Collateral");  provided,  that  the
inclusion  of  proceeds  in  this  Agreement does not authorize Pledgor to sell,
dispose  of  or  otherwise  use  the  Collateral  in any manner not specifically
authorized  hereby.

     Section  1.03.     OBLIGATIONS  SECURED.  This  Agreement  secures: (a) the
                        --------------------
full  and prompt payment of the principal of, interest on, and all other amounts
due  with  respect to the Convertible Note from time to time outstanding, as and
when  such  amounts shall become due and payable, whether by lapse of time, upon
redemption,  prepayment  or  purchase,  by  extension  or  by  acceleration  or
declaration  or  otherwise  (including,  without limitation, interest due at the
Default  Rate on overdue payments of principal, interest or any other amount due
hereunder,  under  the  Convertible Note, the Purchase Agreement or under any of
the  other  Transaction  Documents  (as  such  term  is  defined in the Purchase
Agreement));  (b)  the  full  and  prompt payment, performance and observance by
Pledgor  of  all  obligations, covenants, conditions and agreements contained in
any  of  the  Transaction  Documents;  and (c) the full and prompt payment, upon
demand  by the Secured Party or any holder of the Convertible Note, of all costs
and  expenses  (including,  without  limitation, reasonable attorneys' fees), if
any, as shall have been expended or incurred by such holder or the Secured Party
in the protection or enforcement of any right or privilege under the Convertible
Note,  the  Purchase  Agreement or any of the other Transaction Documents, or in
the  protection  or  enforcement  of  any  rights,  privileges  or  liabilities
thereunder  or  in  any consultation or action in connection therewith (all such
obligations,  covenants,  conditions  and  agreements described in the foregoing
clauses  (a),  (b)  and  (c)  being  hereinafter collectively referred to as the
"Obligations".

     Section  1.04.     FORMALITIES.  (a)  All  certificates  and  instruments
                        ------------
representing  the  Pledged  Securities have been, or, in the case of all Pledged
Securities  hereafter acquired, immediately upon acquisition shall be, delivered
to  and  shall  be  held by or on behalf of the Secured Party pursuant hereto in
suitable  form  for transfer by delivery, or accompanied by undated stock powers
or  other  instruments of transfer or assignment, duly executed in blank, all in
form  and  substance  satisfactory  to  the  Secured  Party.

     (b)     Notwithstanding  anything  to  the contrary contained in clause (a)
above,  if  any Pledged Securities (whether now owned or hereafter acquired) are
uncertificated  securities,  Pledgor  shall  promptly  notify  the Secured Party
thereof,  and  shall  promptly take all actions required to perfect the security
interest  of  the  Secured  Party under applicable law (including, in any event,
under  the  provisions  of  Article 8 or 9 of the Code, if applicable).  Pledgor
further  agrees  to  take  such  actions as the Secured Party deems necessary or
desirable  to  effect  the foregoing and to permit the Secured Party to exercise
any  of its rights and remedies hereunder, and agrees, promptly upon the request
of  the  Secured  Party, to provide an opinion of counsel, in form and substance
satisfactory  to the Secured Party, as to the validity and enforceability of the
security  interest  created

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by this Agreement with respect to such uncertificated securities, the perfection
of  the  Secured Party's security interest therein and such other matters as may
be  reasonably  requested  by  the  Secured  Party.

     (c)     The  Secured  Party  shall  have  the  right,  at  any  time in its
reasonable  discretion and without notice to any Pledgor, to (i) transfer to any
of  its  nominees  any  or  all of the Collateral, subject only to the revocable
rights  set forth in Section 4.01 hereof and applicable law, and (ii) so long as
an  Event  of  Default shall have occurred and be continuing, to register any or
all  of  the  Collateral  in its own name.  In addition, the Secured Party shall
have  the right at any time to exchange certificates or instruments representing
or  evidencing  Collateral  for certificates or instruments of smaller or larger
denominations.

     (d)     Each Pledgor hereby authorizes the Secured Party, at the expense of
Pledgor  (including  the  fees and expenses of counsel to the Secured Party), to
file  one  or more financing or continuation statements, and amendments thereto,
relating  to  all or any part of the Collateral without the signature of Pledgor
where  permitted by law.  A photocopy or other reproduction of this Agreement or
any  financing  statement  covering  the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law.  Pledgor understands
and  agrees  that even though the Secured Party has no obligation to do so, with
respect  to  any  financing statement, the Secured Party intends to file (at the
expense  of  Pledgor,  including the fees and expenses of counsel to the Secured
Party)  any  continuation  statement or amendment where failure to so file could
reasonably be expected to result in the lapse of such financing statement at any
time  within  three  months  of  any  such  proposed  filing.

                                   ARTICLE II
                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     Section 2.01  REPRESENTATIONS AND WARRANTIES. Pledgor represents, warrants,
                   ------------------------------
and  covenants  to  Secured  Party  as  follows:

     (a)  The  Pledged  Securities  outstanding  on  the  date  hereof:  (i) are
described  in  Schedule A hereto; (ii) have been duly and validly issued and all
               ----------
contributions required to be made by Pledgor under the limited liability company
agreement  of  Exploration  Holding  have been made; and (iii) are subject to no
options,  warrants,  calls  or  commitments of any character whatsoever relating
thereto.

     (b)     Any  instruments of transfer or assignment relating to certificates
representing  or  evidencing  the  Pledged  Securities,  executed  in  blank and
delivered  by  Pledgor to the Secured Party herewith, have been duly executed by
Pledgor and vest in the Secured Party the authority that they purport to confer.

     (c)     Upon  (i)  the pledge, assignment and delivery to the Secured Party
by  Pledgor  of the Collateral pursuant to this Agreement and (ii) the filing of
UCC  1 financing statements and other necessary or appropriate registrations and
recordings  in  the  Office of the Secretary of State of the State of Texas, all
filings,  registrations  and  recordings  necessary  or  appropriate  to create,
preserve,  protect  and  perfect the security interest granted by Pledgor to the
Secured  Party  hereby  in  respect  of

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the Collateral will have been accomplished, and the security interest granted by
Pledgor to the Secured Party pursuant to this Agreement in and to the Collateral
will  constitute a perfected security interest therein superior and prior to the
rights  of  all other Persons therein and subject to no other liens and security
interests  (other  than the liens and security interests created hereunder), and
will be entitled to all the rights, priorities and benefits afforded by the Code
or  other  relevant  law  as  enacted  in any relevant jurisdiction to perfected
security  interests.

     (d)     The  principal  place  of  business  and  chief executive office of
Pledgor  and  the sole location where the records of Pledgor with respect to the
Collateral  are kept are located at the address set forth on Schedule B attached
                                                             ----------
hereto.  Pledgor  shall  not move its chief executive office, principal place of
business,  or  such  location  of  records unless (i) it shall have given to the
Secured Party not less than 60 days' prior written notice of its intention so to
do, clearly describing such new location and providing such other information in
connection  therewith  as the Secured Party may reasonably request and (ii) with
respect  to  such  new  location,  it  shall  have  taken all action required by
Sections  1.04,  2.01,  and  3.04  with respect to such new jurisdiction and all
other  action,  reasonably  satisfactory  to  the Secured Party, to maintain the
security  interest of the Secured Party in the Collateral intended to be granted
hereby  at  all  times  fully  perfected  and  in  full  force  and  effect.

     (e)     The  jurisdiction  of  organization  and  organizational  number of
Pledgor  is  as set forth on Schedule B attached hereto.  As of the date hereof,
                             ----------
Pledgor does not have or operate under, nor has it had or operated under, in any
jurisdiction  at  any  time  prior to the date hereof, any name except its legal
name  as  set  forth  on  the  signature pages hereto, nor has Pledgor ever been
organized  under  the  laws  of  any  jurisdiction  other  than the jurisdiction
specified  on  Schedule  B  attached hereto.  Pledgor shall not change its legal
name, assume or operate in any jurisdiction under any trade, fictitious or other
name  or  change its jurisdiction of organization unless (i) it shall have given
to  the  Secured  Party  not  less  than  60  days'  prior written notice of its
commencing  to  do so, clearly describing such new name and the jurisdictions in
which  such  new name shall be used or such new jurisdiction of organization and
providing  such  other  information in connection therewith as the Secured Party
may reasonably request and (ii) with respect to such new name or jurisdiction of
organization, it shall have taken all reasonable action, reasonably satisfactory
to  the Secured Party, to maintain the security interest of the Secured Party in
the Collateral intended to be granted hereby at all times fully perfected and in
full  force  and  effect.  As  of  the  date hereof, Pledgor has no trade names.

     (f)     Pledgor  is  the  legal and beneficial owner of the Collateral free
and  clear  of  any  lien  or  security  interest (except the liens and security
interests),  and  Pledgor  has  not  sold,  granted  any option with respect to,
assigned, transferred or otherwise disposed of any of its rights or interests in
or  to  such  Collateral.

     (g)     No  effective  financing  statement  or  other  document similar in
effect  covering  all  or  any part of Pledgor's portion of the Collateral is on
file in any recording office, except such as may have been filed in favor of the
Secured  Party  relating  to  this Agreement, and Pledgor has not authorized the
filing  of  any  such  financing statement or other document.  Pledgor will not,
without  the  prior  written  consent  of  the  Secured  Party,  authorize  or
authenticate any such financing statements after the date hereof, and there will
not  ever  be  on  file  in  any  public  office,  any

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enforceable  financing  statement  or  statements  covering  any  or  all of the
Collateral,  except  financing  statements  filed or to be filed in favor of the
Secured  Party.

     (h)     No  consent,  authorization,  approval  or  other action by, and no
notice  to  or  filing  with,  any governmental authority or any other Person is
required:  (i)  for  the valid execution, delivery and performance by Pledgor of
this  Agreement;  (ii)  for  the pledge by Pledgor of a security interest in the
Collateral  or  for  the  granting,  perfection and maintenance of the liens and
security  interests  created  hereby and the first priority nature of such liens
and  security  interests  (other  than the timely and proper filing of financing
statements  and  continuation  statements  related  thereto);  or  (iii) for the
exercise by the Secured Party of the voting or other rights provided for in this
Agreement  or  the  remedies  in  respect of Pledgor's portion of the Collateral
pursuant  to  this  Agreement (except as may be required in connection with such
disposition  by  laws  affecting the offering and sale of securities generally).

     (i)     This  Agreement has been duly authorized, executed and delivered by
Pledgor  and  constitutes  a  legal,  valid  and  binding obligation of Pledgor,
enforceable  against  Pledgor in accordance with its terms, except to the extent
that  the  enforceability  hereof  may  be  limited  by  applicable  bankruptcy,
insolvency,  reorganization,  moratorium  or  other  similar  laws  affecting
creditors'  rights  generally and by equitable principles (regardless of whether
enforcement  is  sought  in  equity  or  at  law).

     (j)     The execution, delivery and performance of this Agreement is not in
conflict  with and does not violate any instrument or agreement to which Pledgor
is  a  party  or  by  which  Pledgor is bound, including without limitation, the
organizational  agreements  of  Exploration  Holdings.

     (k)     Pledgor  covenants  and  agrees  that  it  will  defend the Secured
Party's  right,  title  and  security  interest in and to the Collateral and the
proceeds  thereof  against the claims and demands of all persons whomsoever, and
Pledgor covenants and agrees that it will have like title to and right to pledge
any other property at any time hereafter pledged by Pledgor to the Secured Party
as  Collateral  hereunder  and  will  likewise  defend the right thereto and the
security  interest  therein  of  the  Secured  Party.

     (l)     Pledgor  is  not currently, and at no time in the past has been, in
default  or  violation  of  any  provisions  of  Exploration  Holding's  limited
liability  company  agreement  or  otherwise in default or violation thereunder.
None  of  the  Pledged  Securities  is  subject  to  any  defense,  offset  or
counterclaim,  nor  have  any  of the foregoing been asserted or alleged against
Pledgor  by  any Person with respect thereto.  As of the date of this Agreement,
there  are no certificates, instruments, documents or other writings, other than
the  certificates  delivered  to  the  Secured  Party  and Exploration Holding's
limited  liability  company  agreement,  held  by  Pledgor  which  evidence  any
ownership interest in Exploration Holding, other than a certificate representing
a  75% membership interest in Exploration Holding, which is in the possession of
Pledgor  (and  is  not  pledged  hereunder).

     (m)     Except  as  permitted  by the Secured Party, Pledgor will not sell,
assign,  or  otherwise  dispose of, grant any option with respect to, or pledge,
grant  a  security  interest  in  or  otherwise

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encumber  any  of  the  Collateral or any interest therein, or suffer any of the
same  to  exist,  and any sale, assignment, option, pledge, security interest or
other  encumbrance  or disposition of any nature whatsoever made in violation of
this  covenant shall be a nullity and of no force and effect, and upon demand of
the  Secured  Party,  shall forthwith be canceled or satisfied by an appropriate
instrument  in  writing.

     (n)     Pledgor  shall  give  the  Secured Party prompt notice of any claim
relating  to  Pledgor's portion of the Collateral.  Pledgor shall deliver to the
Secured  Party  a copy of each written demand, notice or document received by it
which  may adversely affect the Secured Party's interest in Pledgor's portion of
the Collateral promptly upon, but in any event within five days after, Pledgor's
receipt  thereof.

     (o)     Pledgor  has  received all consents and approvals, if any, required
by  the  terms  of  any  of  Pledgor's  portion of the Collateral to the sale or
transfer hereunder of such Collateral, or Pledgor's interest and rights therein,
to  the  Secured  Party  (except  as  may  be  required  in connection with such
disposition  by  laws  affecting the offering and sale of securities generally).

     (p)     No  Pledgor  shall  withdraw as a member of Exploration Holding, or
file  or  pursue  or  take any action which may, directly or indirectly, cause a
dissolution  or  liquidation of or with respect to Exploration Holding or seek a
partition  of  any  property  of Exploration Holding, except as permitted by the
Note  Agreement.

The  representations and warranties set forth in this Section 2.01 shall survive
the  execution  and  delivery  of  this  Agreement.

                                   ARTICLE III
                       AFFIRMATIVE AND NEGATIVE COVENANTS
                       ----------------------------------

     Pledgor  covenants and agrees with Secured Party that until the Obligations
are  satisfied  and  performed  in  full:

     Section  3.01  [Intentionally  Left  Blank].

     Section  3.02.     ENCUMBRANCES.  Pledgor  shall  not  create,  permit,  or
                        ------------
suffer  to  exist,  and  shall defend the Collateral against, any lien, security
interest,  or other encumbrance on the Collateral except the pledge and security
interest  of  Secured  Party  hereunder  and  the  pledge and security interests
referenced  in  Section  1.02  above,  and  shall defend Pledgor's rights in the
Collateral  and  Secured Party's security interest in the Collateral against the
claims  of  all  persons.

     Section  3.03.     SALE  OF COLLATERAL.  Pledgor shall not sell, assign, or
                        -------------------
otherwise  dispose  of  the  Collateral  or  any  part thereof without the prior
written  consent  of  Secured  Party.

     Section  3.04.     FURTHER  ASSURANCES.  (a)  At  any time and from time to
                        -------------------
time,  upon  the  request  of Secured Party, and at the sole expense of Pledgor,
Pledgor  shall  promptly  execute  and

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deliver  all such further instruments and documents and take such further action
as  Secured  Party  may  deem necessary or desirable to preserve and perfect its
security interest in the Collateral and carry out the provisions and purposes of
this  Agreement,  including,  without limitation, the execution and/or filing of
such  financing  statements as Secured Party may require (and any such filing is
hereby authorized by Pledgor).  A carbon, photographic, or other reproduction of
this Agreement or of any financing statement covering the Collateral or any part
thereof  shall  be  sufficient  as  a  financing statement and may be filed as a
financing  statement.

     (b)  In  addition  to  performing  its  obligations  under Section 3.04 (a)
above,  Pledgor will, acquiring any additional Pledged Securities, promptly (and
in  any  event  within  ten  days)  deliver to the Secured Party a Supplement to
Pledge  Agreement,  duly  executed by such Pledgor, in substantially the form of
Annex  A  hereto  (each,  a  "Supplement to Pledge Agreement"), identifying such
--------
additional  Pledged  Securities.  Pledgor hereby authorizes the Secured Party to
attach each Supplement to Pledge Agreement to this Agreement and agrees that all
additional  Pledged  Securities  listed  on  any  Supplement to Pledge Agreement
(including  any  schedules(s)  thereto) delivered to the Secured Party shall for
all  purposes  hereunder constitute Collateral.  Pledgor will, at the request of
the  Secured  Party,  deliver  an  opinion  of  counsel,  in  form and substance
reasonably  satisfactory to the Secured Party, as to the validity and perfection
of  the security interest granted in the Collateral identified in any Supplement
to  Pledge  Agreement  (including  any  schedule(s)  thereto)  and  the proceeds
thereof.

     Section  3.05.     OBLIGATIONS.  Pledgor  shall duly and punctually pay and
                        -----------
perform  the  Obligations,  including  without  limitation,  the  obligations of
Pledgor  under  this  Agreement.

     Section  3.06.     NOTIFICATION.  Pledgor  shall  promptly  notify  Secured
                        ------------
Party  of  (i)  any  lien,  security  interest,  encumbrance  or  claim  made or
threatened  against  the Collateral, (ii) any material change in the Collateral,
including,  without  limitation,  any  material  decrease  in  the  value of the
Collateral,  and  (iii)  the  occurrence  or  existence  of any Event of Default
(hereinafter  defined)  or the occurrence or existence of any condition or event
that,  with  the giving of notice or lapse of time or both, would be an Event of
Default.

     Section  3.07.     COMPLIANCE  WITH  LAWS.  Pledgor  shall  comply with all
                        ----------------------
applicable  laws,  rules,  regulations,  and orders of any court or governmental
authority.

                                   ARTICLE IV
                       RIGHTS OF SECURED PARTY AND PLEDGOR
                       -----------------------------------

     Section  4.01.     VOTING  RIGHTS.  So  long  as  no  Event  of Default (as
                        --------------
hereinafter defined) shall have occurred and be continuing and this Agreement is
in  force and effect, Pledgor shall be entitled to exercise any voting and other
consensual  rights  relating or pertaining to the Collateral or any part thereof
provided, however, that no vote shall be cast or consent, waiver or ratification
given  or  action taken that would be inconsistent with or violate any provision
of  this  Agreement  or any other Transaction Document.  Upon the occurrence and
during the continuance of an Event of Default, at the sole option of the Secured
Party,  all  voting  rights  shall  thereupon  become  vested  in  the  Secured

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<PAGE>
Party or its assignee, who shall thereupon have the sole right to exercise or to
assign  the  right  to  exercise  such  voting  and  other  consensual  rights.

     Section 4.02     DIVIDENDS; DISTRIBUTIONS. Until an Event of Default occurs
                      -------------------------
and  is continuing, Pledgor shall be entitled to receive, retain and use any and
all  dividends,  distributions  and  other  payments  paid  in  respect  of  the
Collateral  to  the  extent  not  otherwise prohibited hereby or by the Purchase
Agreement  or  the  other Transaction Documents; provided, however, that any and
all

          (A)     dividends,  distributions  and  other  amounts paid or payable
other than in cash in respect of, and instruments and other property (including,
without limitation, limited liability company interests in Exploration Holdings)
received, receivable or otherwise distributed in respect of, or in exchange for,
any  of  the  Collateral;

          (B)     dividends  or  distributions hereafter paid or payable in cash
in  respect  of  any  of  the  Collateral  in connection with a partial or total
liquidation  or  dissolution;  and

          (C)     cash  paid, payable or otherwise distributed in redemption of,
or  in  exchange  for,  any  Pledgor's  portion  of  the  Collateral;

shall  be,  and  shall  be  forthwith delivered to the Secured Party to hold as,
Collateral  and shall, if received by such Pledgor, be received in trust for the
benefit  of the Secured Party, be segregated from the other property or funds of
such  Pledgor  and  be forthwith delivered to the Secured Party as Collateral in
the  same  form  as  so  received  (with  any  necessary  endorsement).

     4.03.  EXERCISE  OF RIGHTS.  Upon the occurrence and during the continuance
            --------------------
of  an  Event  of  Default:

     (i)     the  Secured  Party  shall,  without notice to Pledgor, transfer or
register  in  the  name  of  the Secured Party or any of its nominees any or all
certificates, if any, of the Collateral held by the Secured Party hereunder, and
the  Secured  Party  or  its nominee may thereafter, after delivery of notice to
each  Pledgor,  exercise  all  voting  and limited liability company rights with
respect  to the Collateral (in each such case whether exercisable at any meeting
of  the  Company  or  by written consent or otherwise) and any and all rights of
conversion,  exchange,  subscription  or any other rights, privileges or options
pertaining  to  any of the Collateral, as if it were the absolute owner thereof,
including,  without  limitation, the right to exchange at its discretion any and
all  of  the  Collateral  upon  the  merger,  consolidation,  reorganization,
recapitalization  or  other  readjustment of the Company or upon the exercise by
the  applicable  Pledgor  or the Secured Party of any right, privilege or option
pertaining  to  any certificates of the Collateral, and in connection therewith,
to  deposit  and  deliver  any  and  all  of  the Collateral with any committee,
depositary, transfer agent, registrar or other designated agency upon such terms
and  conditions as it may determine, all without liability except to account for
property  actually  received  by it, but the Secured Party shall have no duty to
exercise  any  of  the  aforesaid rights, privileges or options, and the Secured
Party  shall  not be responsible for any failure to do so or delay in so doing..

                                        9
<PAGE>
     (ii)     All  rights  of  each  Pledgor  to  exercise  the voting and other
consensual  rights  which it would otherwise be entitled to exercise pursuant to
Section  4.01  hereof  and  to  receive  the  dividends, distributions and other
payments  which  it would otherwise be authorized to receive and retain pursuant
to  Section  4.02 hereof shall cease, and all such rights shall thereupon become
vested  in  the  Secured  Party  which  shall  thereupon  have the sole right to
exercise  such  voting  and  other  consensual rights and to receive and hold as
Collateral  such  dividends,  distributions  and  other  payments.

     (iii)     All dividends, distributions or other payments which are received
by Pledgor contrary to the provisions of this Article shall be received in trust
for  the  benefit  of the Secured Party, shall be segregated from other funds of
Pledgor,  and shall be forthwith paid over to the Secured Party as Collateral in
the  same  form  as  so  received  (with  any  necessary  endorsement).

     (iv)     Pledgor  shall  execute  and  deliver (or cause to be executed and
delivered) to the Secured Party all such instruments as the Secured Party or the
holder  of  the  Convertible  Note  may  reasonably  request  for the purpose of
enabling  the  Secured Party to exercise the voting and other rights which it is
entitled  to  exercise  pursuant  to  this Article and to receive the dividends,
distributions  or  other  payments  which  it  is entitled to receive and retain
pursuant  to  this  Article.

     Section 4.05.     SECURED PARTY APPOINTED ATTORNEY-IN-FACT.  Pledgor hereby
                       ----------------------------------------
irrevocably  designates,  makes,  constitutes  and  appoints  the  Secured Party
Pledgor's  attorney-in-fact,  with  full  authority  in  the  place and stead of
Pledgor  and  in  the  name  of  Pledgor  or otherwise, from time to time in the
Secured  Party's  discretion,  to  take any action and to execute any agreement,
document  or  instrument which the Secured Party may deem necessary or advisable
to  accomplish  the  purposes  of this Agreement, including, without limitation:

     (a)     upon  the  occurrence  and  during  the  continuance of an Event of
Default, to ask, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for monies due and to become due under or in connection
with  the  Collateral;

     (b)     upon  the  occurrence  and  during  the  continuance of an Event of
Default,  to  receive,  indorse  and  collect  any  drafts or other instruments,
documents  and  chattel  paper,  in  connection  therewith;  and

     (c)     upon  the  occurrence  and  during  the  continuance of an Event of
Default, to file any claims or take any action or institute any proceedings that
the  Secured  Party may deem necessary or desirable for the collection of any of
the  Collateral  or  otherwise  to  enforce the rights of the Secured Party with
respect  to  any  of  the  Collateral.

     Section 4.06     PERFORMANCE BY SECURED PARTY OF PLEDGOR'S OBLIGATIONS.  If
                      -----------------------------------------------------
Pledgor  fails  to perform or comply with any of the agreements contained herein
and  Secured  Party  itself  shall  cause performance of or compliance with such
agreement,  the expenses of Secured Party, together with interest thereon at the
Default Rate (as defined in the Convertible Note) shall be payable by Pledgor to
Secured  Party  on  demand  and  shall  constitute  Obligations  secured by this
Agreement.

                                       10
<PAGE>
     Section 4.08.     POSSESSION; REASONABLE CARE.  The powers conferred on the
                       ---------------------------
Secured Party hereunder are solely to protect its interest in the Collateral and
shall  not  impose any duty upon it to exercise any such powers.  Except for the
safe  custody  of any Collateral in its possession and the accounting for monies
actually  received  by  it hereunder, the Secured Party shall have no duty as to
any  Collateral  or  as  to the taking of any necessary steps to preserve rights
against  prior  parties  or  any other rights pertaining to any Collateral.  The
Secured  Party  shall hold in its possession all Collateral pledged, assigned or
transferred  hereunder, except as from time to time any documents or instruments
may  be  required  for  recordation or for the purpose of enforcing or realizing
upon  any  right or value thereby represented.  The Secured Party may, from time
to  time,  in  its sole discretion, appoint one or more agents (which in no case
shall  be  a Pledgor or an affiliate of a Pledgor) to hold physical custody, for
the  account of the Secured Party, of any or all of the Collateral.  The Secured
Party  shall  be  deemed  to  have  exercised reasonable care in the custody and
preservation  of any Collateral in its possession if such Collateral is accorded
treatment  substantially  equal  to that which the Secured Party accords its own
property,  it  being  understood  that  the  Secured  Party  shall  not have any
responsibility  for  (a)  ascertaining  or  taking action with respect to calls,
conversions,  exchanges,  maturities,  tenders  or other matters relative to any
Collateral,  whether or not the Secured Party has or is deemed to have knowledge
of  such  matters,  or (b) taking any necessary steps to preserve rights against
any  parties  with  respect  to  any  Collateral.

     Section  4.09     RELEASE OF COLLATERAL.    Secured Party shall release the
                       ----------------------
Collateral  upon  the terms and conditions set forth in the Convertible Note and
the  Purchase  Agreement.

                                    ARTICLE V
                                     DEFAULT
                                     -------

     Section 5.01.     EVENTS OF DEFAULT.  Each of the following shall be deemed
                       -----------------
an  "Event  of  Default":

     (a)     an  Event  of Default occurs under terms of the Convertible Note or
     the  Purchase  Agreement;

     (b)     Any  representation  or  warranty made or deemed made by Pledgor in
     this  Agreement  or  in  any  certificate,  report,  notice,  or  statement
     furnished  at any time in connection with this Agreement or the Convertible
     Note is false, misleading, or erroneous in any material respect on the date
     when  made  or  deemed  to  have  been  made.

     (c)     Pledgor  shall  fail  to  perform,  observe,  or  comply  with  any
     covenant,  agreement  or  term contained in this Agreement and such failure
     continues,  without  cure,  for  twenty  (20)  days after written notice to
     Pledgor.

     (d)     Pledgor  or  Exploration  Holding (or any of same) shall commence a
     voluntary  proceeding  seeking liquidation, reorganization, or other relief
     with  respect  to  itself  or its debts under any bankruptcy, insolvency or
     other  similar law now or hereafter in effect or seeking the appointment of
     a  trustee,  receiver,  liquidator,  custodian,  or  other similar official

                                       11
<PAGE>
     of  it  or  a substantial part of its property or shall consent to any such
     relief  or  to the appointment of or taking possession by any such official
     in  an  involuntary  case or other proceeding commenced against it or shall
     make  a  general assignment for the benefit of creditors or shall generally
     fail to pay its debts as they become due or shall take any corporate action
     to  authorize  any  of  the  foregoing.

     (e)     An  involuntary  proceeding  shall  be commenced against Pledgor or
     Exploration  Holding  seeking  liquidation, reorganization, or other relief
     with  respect  to it or its debts under any bankruptcy, insolvency or other
     similar  law  now  or  hereafter  in effect or seeking the appointment of a
     trustee, receiver, liquidator, custodian or other similar official of it or
     a  substantial  part of its property, and such involuntary proceeding shall
     remain  undismissed  and  unstayed  for  a  period  of  thirty  (30)  days.

     Section  5.02.     RIGHTS AND REMEDIES.  Upon the occurrence of an Event of
                        -------------------
Default,  and  subject  to  the  notice  and opportunity to cure required by the
Convertible  Note  (if  any),  Secured  Party  shall  have all of the rights and
remedies set forth in the Convertible Note, the Purchase Agreement and any other
Transaction  Document and additionally shall have following rights and remedies:

          (i)     Secured  Party may declare the Obligations or any part thereof
     immediately  due  and  payable,  without  demand,  presentment,  notice  of
     dishonor, notice of acceleration, notice of intent to accelerate, notice of
     intent to demand, protest, or any other notice whatsoever, all of which are
     hereby  expressly  waived  by  Pledgor;  provided,  however,  that upon the
     occurrence  of an Event of Default under Section 5.01(d) or Section 5.01(e)
     of this Agreement, the Obligations shall become immediately due and payable
     without  demand,  presentment,  notice of dishonor, notice of acceleration,
     notice of intent to accelerate, notice of intent to demand, protest, or any
     other  notice  whatsoever,  all  of  which  are  hereby expressly waived by
     Pledgor;

          (ii)     In  addition  to  all  other  rights  and remedies granted to
     Secured  Party  in  this Agreement and in any other instrument or agreement
     securing,  evidencing,  or relating to the Obligations, Secured Party shall
     have  all  of  the rights and remedies of a secured party under the Uniform
     Commercial  Code  in  force  in  the  State of Texas as of the date of this
     Agreement.  Without limiting the generality of the foregoing, Secured Party
     may  (A)  without  demand  or  notice to Pledgor, collect, receive, or take
     possession  of  the  Collateral  or any part thereof, (B) sell or otherwise
     dispose  of  the Collateral, or any part thereof, in one or more parcels at
     public  or  private sale or sales, at Secured Party's offices or elsewhere,
     for  cash  or  on credit, and/or (C) bid and become a purchaser at any sale
     free of any right or equity of redemption in Pledgor, which right or equity
     is  hereby  expressly  waived  and released by Pledgor. Upon the request of
     Secured  Party, Pledgor shall assemble the Collateral and make it available
     to  Secured  Party at any place designated by Secured Party. Pledgor agrees
     that  Secured  Party shall not be obligated to give more than five (5) days
     written  notice  of  the  time  and place of any public sale or of the time
     after  which  any  private  sale  may take place and that such notice shall
     constitute  reasonable  notice of such matters. The Secured Party shall not
     be  obligated  to  make  any  sale  of  the  Collateral

                                       12
<PAGE>
     regardless  of  notice  of  sale  having  been given. The Secured Party may
     adjourn any public or private sale from time to time by announcement at the
     time  and  place fixed therefor, and such sale may, without further notice,
     be  made  at the time and place to which it was so adjourned. Any cash held
     by  the  Secured  Party as Collateral and all cash proceeds received by the
     Secured  Party  in  respect  of  any  sale  of,  collection  from, or other
     realization  upon  all or any part of the Collateral may, in the discretion
     of  the  Secured  Party,  be  held  by the Secured Party as collateral for,
     and/or  be applied then or at any time thereafter to the Obligations in the
     order  and  manner  as Secured Party may elect. Any surplus of such cash or
     cash proceeds held by the Secured Party and remaining after payment in full
     of  all the Obligations shall be paid over to Pledgor or to whomever may be
     lawfully  entitled to receive such surplus. Pledgor shall be liable for all
     expenses  of  retaking,  holding,  preparing for sale, or the like, and all
     attorneys'  fees and other expenses incurred by Secured Party in connection
     with  the  collection  of  the  Obligations  and the enforcement of Secured
     Party's  rights  under this Agreement, all of which expenses and fees shall
     constitute  additional Obligations secured by this Agreement. Pledgor shall
     remain liable for any deficiency if the proceeds of any sale or disposition
     of  the  Collateral  are  insufficient  to  pay  the  Obligations;

          (iii)     Secured Party may cause any or all of the Collateral held by
     it to be transferred into the name of Secured Party or the name or names of
     Secured  Party's  nominee  or  nominees;

          (iv)     Secured  Party  shall  be  entitled  to  receive all cash and
     non-cash  dividends  payable  in  respect  of  the  Collateral;

          (v)     Secured Party shall have the right, but shall not be obligated
     to,  exercise  or  cause  to  be  exercised all voting rights and corporate
     powers  in  respect of the Collateral, and Pledgor shall deliver to Secured
     Party,  if  requested by Secured Party, irrevocable proxies with respect to
     the  Collateral  in  form  satisfactory  to  Secured  Party;

          (vi)     Pledgor  hereby  acknowledges and confirms that Secured Party
     may  be  unable  to effect a public sale of any or all of the Collateral by
     reason  of certain prohibitions contained in the Securities Act of 1933, as
     amended,  and  applicable  state  securities  laws  and may be compelled to
     resort  to  one  or  more  private  sales  thereof to a restricted group of
     purchasers  who  will be obligated to agree, among other things, to acquire
     any  shares  of  the  Collateral  for  their  own  respective  accounts for
     investment  and  not with a view to distribution or resale thereof. Pledgor
     further  acknowledges and confirms that any such private sale may result in
     prices  or  other  terms  less favorable to Pledgor or other seller than if
     such sale were a public sale and, notwithstanding such circumstances, agree
     that  any  such  private  sale  shall  be  deemed  to  have  been made in a
     commercially  reasonable  manner,  and  Secured  Party  shall  be  under no
     obligation  to  take any steps in order to permit the Collateral to be sold
     at  a  public  sale.  Secured Party shall be under no obligation to delay a
     sale  of  any  of the Collateral for any period of time necessary to permit
     any  issuer  thereof  to register such Collateral for public sale under the
     Securities  Act  of  1933, as amended, or under applicable state securities
     laws. Pledgor hereby waives any claims against the Secured Party arising by
     reason  of  the  fact  that the price at which the Collateral may have been
     sold  at

                                       13
<PAGE>
     such private sale was less than the price which might have been obtained at
     a  public  sale  or was less than the Obligations even if the Secured Party
     accepts  the first offer received and does not offer the Collateral to more
     than  one  offeree  (and  the  Secured Party or an affiliate of the Secured
     Party  may  be  the  only offeree and the purchaser of the Collateral); and

          (vii)     On  any  sale  of  the  Collateral,  Secured Party is hereby
     authorized  to  comply  with  any limitation or restriction compliance with
     which  is  necessary,  in  the view of Secured Party's counsel, in order to
     avoid  any  violation  of applicable law or in order to obtain any required
     approval  of  the  purchaser  or  purchasers by any applicable governmental
     authority.

     Section  5.03.     SECURITY  INTEREST  ABSOLUTE.  All rights of the Secured
                        -----------------------------
Party  hereunder  and  in  and to the Collateral, and all obligations of Pledgor
hereunder,  shall  be  absolute  and  unconditional  irrespective  of:

          (a)     any  lack  of  validity  or  enforceability of the Convertible
     Note,  any  agreement  with  respect to any of the Obligations or any other
     agreement  or  instrument  relating  to  any  of  the  foregoing;

          (b)     any  change  in the time, manner or place of payment of, or in
     any  other term of, all or any of the Obligations or any other amendment or
     waiver  of or any consent to any departure from this Agreement or any other
     agreement  or  instrument;  or

          (c)     any  sale,  exchange,  release  or  nonperfection of any other
     collateral,  or  any  release  of any guarantor or any person liable in any
     manner  for  the  collection  of any of the Obligations or any amendment or
     waiver  of  or  consent  to  or  departure from the Convertible Note or any
     guaranty  for  all  or  any  of  the  Obligations.

     Section  5.04.     WAIVER  AND  CONSENT.
                        ---------------------

          (a)     Pledgor  consents and agrees that the Secured Party may in its
     absolute  and  sole  discretion, at any time and from time to time, without
     notice  or  demand,  and  without  affecting the enforceability or security
     hereof:  (i)  create  new Obligations or supplement, modify, amend, extend,
     increase,  decrease,  renew, accelerate or otherwise change the Obligations
     or  any  of  their  terms;  (ii)  supplement,  modify,  amend, or waive any
     provision of, or enter into or give any agreement, approval or consent with
     respect  to  the  Convertible  Note;  (iii)  accept  new  or  additional
     instruments,  documents or agreements in exchange for or relative to any of
     the  Obligations  or  any  part  thereof  or for the Convertible Note; (iv)
     accept  payments  on  the  Obligations;  (v)  receive  and  hold additional
     security  or  guaranties  for  the  Obligations  or  any part thereof; (vi)
     release, reconvey, terminate, waive, abandon, fail to perfect, subordinate,
     exchange,  substitute,  transfer  or enforce any security or guarantees and
     apply  any  security  and direct the order or manner of sale thereof; (vii)
     release  any  person  from  any  personal  liability  with  respect  to the
     Obligations  or  any  part  thereof;  and  (viii)  settle, release on terms
     satisfactory  to  the  Secured  Party  or  by  operation  of

                                       14
<PAGE>
     applicable  laws  or otherwise liquidate or enforce any Obligations and any
     security  or  guaranty  in  any  manner, and consent to the transfer of any
     security.

          (b)     Upon  the occurrence and during the continuance of an Event of
     Default,  and subject to the notice and opportunity to cure required by the
     Convertible  Note,  the  Secured  Party  may  enforce  this  Agreement
     independently  from  any  other  document  and  independently  of any other
     remedy, security or guaranty the Secured Party at any time may have or hold
     in  connection  with the Obligations, and it shall not be necessary for the
     Secured  Party to marshal assets in favor of Pledgor or any other person or
     to  proceed  upon  or  against  and/or  exhaust my other security or remedy
     before  proceeding to enforce this Agreement. Pledgor expressly agrees that
     the  Secured  Party  may  proceed  against  any or all of the Collateral or
     guaranties for the Obligations in such order and in such manner as it shall
     determine in its sole and absolute discretion. The Secured Party may file a
     separate  action  or  actions against Pledgor, whether action is brought or
     prosecuted  with respect to any other security or against any other person,
     or  whether  any  other  person  is  joined  in any such action or actions.
     Pledgor  agrees  that the Secured Party and other guarantor, if any, of the
     Obligations ("Other Guarantor") may deal with each other in connection with
     the  Obligations  or otherwise, or alter any contracts or agreements now or
     hereafter  existing between or among any of them, in any manner whatsoever,
     all  without  in  any  way  altering  or  affecting  the  security  of this
     Agreement.  Pledgor  expressly  waives  the  benefit  of  any statute(s) of
     limitations  affecting  its  liability  hereunder or the enforcement of the
     Obligations or the lien or security interest created or granted herein. The
     Secured  Party's  rights hereunder shall be reinstated and revived, and the
     enforceability of this Agreement shall continue, with respect to any amount
     at  any  time  paid  on account of the Obligations that thereafter shall be
     required  to  be  restored  or  returned  by  the  Secured  Party  upon the
     bankruptcy,  insolvency  or  reorganization  of  Pledgor,  or  Exploration
     Holding,  or other any other Person, all as though such amount had not been
     paid.

          (c)     Pledgor expressly waives any and all defenses now or hereafter
     arising or asserted by reason of (i) any disability or other defense of any
     Other  Guarantor  with  respect  to  the  Obligations  (ii)  the failure of
     priority  of  any security for the Obligations (iii) the cessation from any
     cause  whatsoever  of  the  liability of any Other Guarantor (other than by
     reason  of  the  full  payment and performance of all Obligations, (iv) any
     failure of the Secured Party to give notice of sale or other disposition of
     any property securing the Obligations to Pledgor or any other person or any
     defect  in  any  notice  that  may  be given in connection with any sale or
     disposition  of  any  property securing the Obligations, (v) any failure of
     the  Secured  Party  to  comply with applicable laws in connection with the
     sale  or  other  disposition  of  any  property  securing  the Obligations,
     including,  without limitation, any failure of the Secured Party to conduct
     a  commercially  reasonable  sale  or  other  disposition  of  any property
     securing  the Obligations, (vi) any act or omission of the Secured Party or
     others  that  directly  or  indirectly  results in or aids the discharge or
     release  of any Other Guarantor or the Obligations or any other security or
     guaranty  therefor  by  operation  of  law or otherwise, (vii) any law that
     provides  that  the  obligation  of  a  surety or guarantor must neither be
     larger  in  amount  nor  in other respects more burdensome than that of the
     principal  or  that  reduces  a  surety's  or  guarantor's  obligation  in
     proportion  to  the  principal's  obligation,

                                       15
<PAGE>
     (viii)  any  failure of the Secured Party to file or enforce a claim in any
     bankruptcy  or  other  proceeding  with  respect  to  any  person, (xi) the
     election  by the Secured Party, in any bankruptcy proceeding of any person,
     of  the  application  or nonapplication of Section 1111(b)(2) of the United
     States  Bankruptcy  Code,  (x)  any extension of credit or the grant of any
     lien  under  Section 364 of the United States Bankruptcy Code, (xi) any use
     of  cash collateral under Section 363 of the United States Bankruptcy Code,
     (xii)  any  agreement  or  stipulation  with  respect  to  the provision of
     adequate  protection in any bankruptcy proceeding of any person, (xiii) the
     avoidance  of  any  bankruptcy,  insolvency,  reorganization,  arrangement,
     readjustment  of debt, liquidation or dissolution proceeding of any Person,
     including  any  discharge of, or bar or stay against collecting, all or any
     of  the  Obligations in or as a result of any such proceeding, or (xiv) any
     action taken by the Secured Party that is authorized by this Section or any
                                                                  -------
     other  provision  of  the  Convertible  Note.

                                   ARTICLE VI
                                  MISCELLANEOUS
                                  -------------

     Section  6.01.     EXPENSES;  INDEMNIFICATION.  Pledgor  agrees  to  pay on
                        --------------------------
demand  all  costs and expenses incurred by Secured Party in connection with the
preparation,  negotiation,  and  execution  of  this  Agreement  and any and all
amendments, modifications, and supplements hereto.  Pledgor agrees to pay and to
hold  Secured Party harmless from and against all excise, sales, stamp, or other
taxes and all fees payable in connection with this Agreement or the transactions
contemplated  hereby,  and agree to hold Secured Party harmless from and against
any and all present or future claims or liabilities with respect to or resulting
from  Pledgor  performing or delaying in performing their obligations under this
Agreement.

     Section  6.02.     NO  WAIVER; CUMULATIVE REMEDIES.  No failure on the part
                        -------------------------------
of  Secured  Party  to  exercise  and  no  delay in exercising, and no course of
dealing  with  respect  to,  any right, power, or privilege under this Agreement
shall  operate  as a waiver thereof, nor shall any single or partial exercise of
any  right,  power,  or  privilege  under  this  Agreement preclude any other or
further  exercise  thereof  or  the  exercise  of  any  other  right,  power, or
privilege.  The  rights  and  remedies  provided  for  in  this  Agreement  are
cumulative  and  not  exclusive  of  any  rights  and  remedies provided by law.

     Section  6.03.     SUCCESSORS AND ASSIGNS.  This Agreement shall be binding
                        ----------------------
upon  and inure to the benefit of Pledgor and Secured Party and their respective
heirs,  successors,  and  assigns, except that Pledgor may not assign any of its
rights  or obligations under this Agreement without the prior written consent of
Secured  Party  in its sole discretion.  Secured Party may assign this Agreement
to  any  assignee  or  transferee  to  which the Convertible Note is assigned or
transferred,  in  compliance  with  the  terms  of  the  Convertible  Note.

     Section 6.04.     AMENDMENT; ENTIRE AGREEMENT.  This Agreement embodies the
                       ---------------------------
entire  agreement  among  the parties hereto and supersedes all prior agreements
and  understandings,  if  any,  relating  to  the  subject  matter  hereof.  The
provisions  of  this Agreement may be amended or waived only by an instrument in
writing  signed  by  the  parties  hereto.

                                       16
<PAGE>
     Section  6.05.     NOTICES.  Any  notice,  consent,  or other communication
                        -------
required  or  permitted  to  be  given  under this Agreement to Secured Party or
Pledgor  must  be in writing and delivered in person, or mailed by registered or
certified  mail, return receipt requested, postage prepaid, or sent by facsimile
transmission  with  evidence  of receipt if also sent by registered or certified
mail,  return  receipt  requested,  postage  prepaid  as  follows:

     To Secured Party:   RCH Petro Investors, LP
                         c/o RR Advisors, LLC
                         200 Crescent Court, Suite 1060
                         Dallas, TX 75201-1834
                         Attn: Robert Raymond
                         FAX  (214) 871-8683

     To Pledgor:         Petrosearch Energy Corporation
                         675  Bering Drive, Suite 200
                         Houston, Texas 77057
                         FAX:  (713) 961-9338

Any  such  notice,  consent,  or  other communication shall be deemed given when
delivered  in person, or if sent by facsimile transmission as provided above, on
the  day  the  transmission was received if before 5:00 p.m. local time that day
(or on the next day, if received after 5:00 p.m. local time) or, if mailed, when
duly  deposited  in  the  mails.

     Section  6.06  CHOICE  OF  LAW.  This  Agreement  shall be governed by, and
                    ---------------
construed  in accordance with, the laws of the State of Texas, without regard to
principles  of  conflict  of  laws.  In  any  action between or among any of the
parties, whether arising out of this Agreement or otherwise, each of the parties
irrevocably  consents to the exclusive jurisdiction and venue of the federal and
state  courts  located  in  Harris  County,  Texas.

     Section  6.07.     HEADINGS.  The headings, captions, and arrangements used
                        --------
in  this  Agreement  are  for  convenience  only  and  shall  not  affect  the
interpretation  of  this  Agreement.

     Section  6.08.     SURVIVAL  OF  REPRESENTATIONS  AND  WARRANTIES.  All
                        ----------------------------------------------
representations  and  warranties  made  in  this Agreement or in any certificate
delivered  pursuant  hereto  shall  survive  the  execution and delivery of this
Agreement,  and  no  investigation  by  Secured  Party  shall  affect  the
representations  and warranties made by Pledgor or the right of Secured Party to
rely  upon  them.

     Section  6.09.     EXECUTION. This Agreement may be executed in two or more
                        ---------
counterparts,  all  of which when taken together shall be considered one and the
same  agreement and shall become effective when counterparts have been signed by
each  party  and  delivered  to  the  other party, it being understood that both
parties  need not sign the same counterpart.  In the event that any signature is
delivered  by  facsimile  transmission  or by e-mail delivery of a ".pdf" format
data  file,  such  signature  shall create a valid and binding obligation of the
party  executing  (or  on whose behalf such signature is executed) with the same
force  and effect as if such facsimile or ".pdf" signature page were an original
thereof.

                                       17
<PAGE>
     Section  6.10.     SEVERABILITY.  Any  provision of this Agreement which is
                        ------------
prohibited  or unenforceable in any jurisdiction shall, as to such jurisdiction,
be  ineffective  to  the  extent of such prohibition or unenforceability without
invalidating  the  remaining  provisions  of  this  Agreement,  and  any  such
prohibition  or  unenforceability  in  any  jurisdiction shall not invalidate or
render  unenforceable  such  provision  in  any  other  jurisdiction.

                   [SIGNATURES APPEAR ON THE FOLLOWING PAGE.]

                                       18
<PAGE>
     Executed  as  of  the  Effective  Date  above  written.

                                                "Pledgor"

                                       PETROSEARCH ENERGY CORPORATION

                                        By: /s/ Richard Dole
                                          -------------------------------------
                                            Richard Dole, President and CEO

                                                "Secured Party"

                                       RCH PETRO INVESTORS, LP

                                       By: RR Advisors, LLC, its general partner

                                       By: /s/ Robert Raymond
                                          -------------------------------------
                                            Robert  Raymond,  Sole  Member

                          ACCEPTANCE AND ACKNOWLEDGMENT
                          -----------------------------

     Exploration  Holding  Co.,  L.L.C.  hereby accepts and acknowledges Secured
Party  as  the  assignee,  pursuant  to  this  Agreement,  of the 25% membership
interests  in  Exploration Holding Co., L.L.C. owned by Pledgor, and Exploration
Holding Co., L.L.C. agrees that the interests of Secured Party shall be promptly
and  duly registered in the books and records of Exploration Holding Co., L.L.C.

                                        EXPLORATION HOLDING CO., L.L.C.

                                        By: /s/ Richard Dole
                                           -------------------------------------
                                             Richard Dole, President

<PAGE>
                                                                      SCHEDULE A
                                                                      ----------

                               Pledged Securities
                               ------------------

PLEDGED OUTSTANDING MEMBERSHIP INTERESTS REPRESENTING LIMITED LIABILITY COMPANY
INTERESTS

                      Percentage of Ownership    Certificate
                           of Interests         No(s)., if any
                      ------------------------  --------------

                             25%                      2

                         Schedule A to Pledge Agreement

<PAGE>
                                                                      SCHEDULE B
                                                                      ----------

    Principal Place of Business; Chief Executive Office; Location of Records;
    -------------------------------------------------------------------------
      Jurisdiction of Organization; Organizational Number; and Other Names
      --------------------------------------------------------------------

     Principal Place of Business, Chief Executive Office and Location of
Records:

          675 Bering Drive, Suite 200
          Houston, TX  77057

          Jurisdiction of Organization:  Nevada

          Organizational Number:  20-2033200

          Other Names:  Petrosearch Corporation

<PAGE>
                                     Annex A
                                     -------

                         SUPPLEMENT TO PLEDGE AGREEMENT

     This Supplement to Pledge Agreement, dated as of ____________ ___ 20___, is
delivered  pursuant  to  Section  __  of the Pledge Agreement referred to below.

                                       RECITALS
                                       --------

     A.     PETROSEARCH  ENERGY  CORPORATION,  a  Nevada  corporation  (the
"PLEDGOR"),  has  executed  and  delivered  that  certain  Pledge  and  Security
Agreement,  dated  as of February __, 2007, in favor of RCH PETRO INVESTORS, LP,
as Secured Party (as the same may be amended, supplemented or otherwise modified
from  time  to  time,  including  without  limitation  by  this  and  any  other
Supplements  to  Pledge  Agreement executed from time to time, the "AGREEMENT").
Capitalized terms used but not defined herein have the meanings assigned to such
terms  in  the  Agreement.

     B.     Pursuant  to  Section  3.04(b) of the Agreement, Pledgor has agreed,
upon  obtaining  any  additional  Pledged  Securities,  to  promptly execute and
deliver  a  Supplement  to Pledge Agreement in order to identify such additional
Pledged  Securities  which  have  been  pledged  pursuant  to  the  Agreement.

     C.     The  undersigned  desires  to execute and deliver this Supplement to
Pledge  Agreement  to  satisfy  such  requirement.

     NOW,  THEREFORE,  IT  IS  AGREED:

     1.     Collateral.  The  undersigned  agrees  that the securities listed on
            ----------
Schedule  A  attached  hereto  are part of the Collateral and are subject to the
  ---------
pledge  and  security  interest  created  by  the  Agreement.

     2.     Representations  and  Warranties.  The  undersigned hereby certifies
            --------------------------------
that the representations and warranties set forth in Article II of the Agreement
are true and correct as to the Pledged Securities listed on Schedule A hereto on
                                                            ----------
and  as  of  the  date  hereof.

                                    PETROSEARCH ENERGY CORPORATION

                                    By: /s/ Richard D. Dole
                                       -----------------------------------------
                                    Name: Richard D. Dole
                                         ---------------------------------------
                                    Title: Chief Executive Officer and President
                                          --------------------------------------

                          Annex A to Pledge Agreement
<PAGE>
                  SCHEDULE A TO SUPPLEMENT TO PLEDGE AGREEMENT

                               Pledged Securities
                               ------------------

               ----------    --------    --------------    ---------
               Percentage
                   of        Class of    Certificate       Number of
               Ownership     Interest    No(s)., if any    Interests
               ----------    --------    --------------    ---------

                    Schedule A -- Annex A to Pledge AgreementEXECUTION VERSION

                          REGISTRATION RIGHTS AGREEMENT

     THIS  REGISTRATION  RIGHTS AGREEMENT (this "Agreement") is made and entered
                                                 ---------
into  as  of  February  7,  2007, by and among Petrosearch Energy Corporation, a
Nevada  Corporation  (the  "Company"),  and  RCH Petro Investors, LP, a Delaware
                            -------
limited  partnership  (the  "Purchaser").
                             ---------

     WHEREAS,  this  Agreement  is  made  in  connection with the closing of the
issuance  and  sale  of  the  Note  pursuant  to  the  Note and Warrant Purchase
Agreement,  dated  as  of even date herewith, by and between the Company and the
Purchaser  (the  "Purchase  Agreement");
                  -------------------

     WHEREAS,  the  Company  has  agreed  to  provide the registration and other
rights  set forth in this Agreement for the benefit of the Purchaser pursuant to
the  Purchase  Agreement;  and

     WHEREAS,  it  is  a condition to the obligations of the Purchaser under the
Purchase  Agreement  that  this  Agreement  be  executed  and  delivered.

     NOW  THEREFORE, in consideration of the mutual covenants and agreements set
forth  herein  and  for  good  and  valuable  consideration,  the  receipt  and
sufficiency  of  which  is hereby acknowledged by each party hereto, the parties
hereby  agree  as  follows:

                                    ARTICLE I
                                   DEFINITIONS

     Section  1.01     Definitions.  Capitalized  terms  used  herein  without
                       -----------
definition shall have the meanings given to them in the Purchase Agreement.  The
terms  set  forth  below  are  used  herein  as  so  defined:

     "Agreement"  has  the  meaning  specified  therefor  in  the  introductory
      ---------
paragraph.

     "Business  Day"  means  any  day  other than a Saturday, Sunday, or a legal
      -------------
holiday  for  commercial  banks  in  New  York,  New  York.

     "Commission"  means  the  United States Securities and Exchange Commission.
      ----------

     "Common  Stock"  means  the  Company's  common  stock,  par  value  $.001.
      -------------

     "Company"  has the meaning specified therefor in the introductory paragraph
      -------
of  this  Agreement.

     "Effectiveness  Period"  has  the  meaning  specified  therefor  in Section
      ---------------------                                              -------
2.01(a)  of  this  Agreement.
------

     "Excluded  Securities"  has  the  meaning  specified  therefor  in  Section
      --------------------                                               -------
2.01(d).
------

<PAGE>
     "Excluded Securities Registration Statement" means a registration statement
      ------------------------------------------
on  Form  SB-2  registering  the  Excluded  Securities.

     "Excluded  Securities Registration  Statement  Filing Date" has the meaning
      ---------------------------------------------------------
specified  therefor  in  Section  2.02(a).
                         ----------------

     "Failure  Date"  has  the  meaning  specified  therefor in Section 2.04(b).
      -------------                                             ---------------

     "Holder"  means  the  record  holder  of  any  Registrable  Securities.
      ------

     "Initial  Registration  Statement" means the registration statement on Form
      --------------------------------
SB-2  registering  the  Note  Shares.

     "Initial  Registration  Statement  Filing  Date"  has the meaning specified
      ----------------------------------------------
therefor  in  Section  2.01(a).

     "Included Registrable Securities" has the  meaning  specified  therefor  in
      -------------------------------
Section  2.05  of  this  Agreement.
-------------

     "Liquidated  Damages" has the meaning specified therefor in Section 2.01(b)
      -------------------                                        ---------------
of  this  Agreement.

     "Liquidated Damages Multiplier" means the product of $1.00 times the number
      -----------------------------
of  Note  Shares,  Warrant  Shares  or  Excluded  Shares,  as applicable to such
Registration  Statement,  held  by  the  Holder.

     "Losses"  has  the  meaning  specified  therefor in Section 2.09(a) of this
      ------                                             ---------------
Agreement.

     "Managing  Underwriter"  means,  with respect to any Underwritten Offering,
      ---------------------
the  book-running  lead  manager  of  such  Underwritten  Offering.

     "Note"  means  the  8%  Senior  Secured  Convertible  Note  in the original
      ----
principal  amount  of  $10,000,000,  convertible  into  shares  of Common Stock,
purchased  by  the  Purchaser,  as  further described in the Purchase Agreement.

     "Note  Shares"  means the shares of Common Stock (i) to which the Holder is
      ------------
entitled  upon  conversion of the Note and (ii) that have been issued in lieu of
cash  interest  payments  under  the  Note  at the time of filing the applicable
Registration  Statement  or  Piggyback  Registration  Statement.

     "Piggyback  Registration  Statement"  has the meaning specified therefor in
      ----------------------------------
Section  2.05(a).

     "Purchase  Agreement" has the meaning specified therefor in the recitals of
      -------------------
this  Agreement.

     "Purchaser"  has  the  meaning  specified  therefor  in  the  introductory
      ---------
paragraph  of  this  Agreement.

<PAGE>
     "Registrable  Securities"  means  the:  (i)  Note  Shares,  (ii)  Excluded
      -----------------------
Securities  and  (iii)  Warrant  Shares, all of which Registrable Securities are
subject  to  the  rights provided herein until such rights terminate pursuant to
the  provisions  hereof.

     "Registration  Expenses"  has  the  meaning  specified  therefor in Section
      ----------------------                                             -------
2.08(b)  of  this  Agreement.
-------

     "Registration  Statements"  means  the  Initial Registration Statement, the
      ------------------------
Excluded  Securities  Registration  Statement  and  the  Warrant  Registration
Statement.

     "Selling Expenses" has the meaning specified therefor in Section 2.08(b) of
      ----------------                                        ---------------
this  Agreement.

     "Selling  Holder"  means  a  Holder  who  is selling Registrable Securities
      ---------------
pursuant  to  any  registration  statement.

     "Underwritten  Offering"  means an offering in which shares of Common Stock
      ----------------------
are  sold  to  an  underwriter  on a firm commitment basis for reoffering to the
public or an offering that is a "bought deal" with one or more investment banks.

     "Warrant"  means  the warrant to purchase 5,000,000 shares of Common Stock,
      -------
as  further  described  in  the  Purchase  Agreement.

     "Warrant  Shares"  means the shares of Common Stock underlying the Warrant.
      ---------------

     "Warrant  Registration  Statement"  means  a registration statement on Form
      --------------------------------
SB-2  registering  the  Warrant  Shares.

     "Warrant  Registration  Statement  Filing  Date"  has the meaning specified
      ----------------------------------------------
therefor  in  Section  2.03(a).
              ----------------

     Section  1.02     Registrable  Securities.  Any  Registrable  Security will
                       -----------------------
cease  to  be  a Registrable Security when (a) a registration statement covering
such Registrable Security has been declared effective by the Commission and such
Registrable  Security  has  been  sold or disposed of pursuant to such effective
registration  statement;  (b)  such  Registrable  Security  has been disposed of
pursuant  to  any  section  of  Rule 144 (or any similar provision then in force
under  the  Securities  Act);  (c)  such Registrable Security can be disposed of
pursuant  to  Rule  144(k)  (or  any  similar  provision then in force under the
Securities  Act), or (d) such Registrable Security is held by the Company or one
of  its  subsidiaries.

                                   ARTICLE II
                               REGISTRATION RIGHTS

     Section  2.01     Initial  Registration.
                       ---------------------

     (a)     Deadline  To  Go  Effective.  As  soon as practicable following the
             ---------------------------
Closing,  but  in  any  event  before  April 20, 2007 (the "Initial Registration
                                                            --------------------
Statement  Filing  Date"),  the  Company  shall  prepare  and  file  the Initial
-----------------------
Registration  Statement.  The  Company  shall  use  its

<PAGE>
commercially  reasonable  efforts  to  register  70%  of  the Note Shares on the
Initial  Registration  Statement and to cause the Initial Registration Statement
to  become  effective  no  later  than  120  days after the Initial Registration
Statement Filing Date.  The Company will use its commercially reasonable efforts
to  cause the Initial Registration Statement filed pursuant to this Section 2.01
                                                                    ------------
to  be continuously effective under the Securities Act until the earliest of (i)
when  all  such  Note  Shares registered thereon are sold by the Holder and (ii)
when  all of the Note Shares registered thereon become eligible for resale under
Rule  144(k) (or any successor provision then in force under the Securities Act)
(the "Effectiveness Period").  The Initial  Registration Statement when declared
      --------------------
effective  (including  the  documents  incorporated  therein  by reference) will
comply  as  to form in all material respects with all applicable requirements of
the Securities Act and the Exchange Act and will not contain an untrue statement
of  a  material  fact  or  omit  to  state a material fact required to be stated
therein  or  necessary  to  make  the  statements  therein  not  misleading.

     (b)     Failure  To File.  Subject  to  Section  2.01(d),  if  the  Initial
             ----------------
Registration  Statement required by Section 2.01 is not filed before the Initial
                                    ------------
Registration  Statement  Filing  Date,  then  the  Holder shall be entitled to a
payment,  as  liquidated  damages and not as a penalty, with respect to the Note
Shares  held  by  the  Holder  and  not  then included in an effective Piggyback
Registration  Statement,  for  the  period  beginning  on  the day after Initial
Registration  Statement  Filing  Date  and  lasting to but excluding the day the
Initial  Registration  Statement  is  filed,  of 0.25% of the Liquidated Damages
Multiplier  per 30-day period for the first 60 days of the period, increasing by
an  additional  0.25% of the Liquidated Damages Multiplier per 30-day period for
each  subsequent  60  days,  up  to a maximum of 1.00% of the Liquidated Damages
Multiplier  per  30-day  period  (the  "Liquidated  Damages").
                                        -------------------

     (c)     Failure  To  Go  Effective.  If  the Initial Registration Statement
             --------------------------
required  by  Section  2.01  is not declared effective within 150 days after the
              -------------
Initial Registration Statement Filing Date, then the Holder shall be entitled to
Liquidated  Damages  with respect to the Note Shares registered thereon, held by
the  Holder  and  not  then  included  in  an  effective  Piggyback Registration
Statement  for  the  period  beginning  on  the  150th  day  after  the  Initial
Registration  Statement  Filing  Date  and  lasting to but excluding the day the
Initial  Registration  Statement  is  declared  effective.

     (d)     Excluded Securities.  In the event the Company is required, for any
             -------------------
reason,  to  exclude  any  of  the  Note  Shares  from  the Initial Registration
Statement  (the  "Excluded  Securities"),  such  Excluded  Securities  shall  be
                  --------------------
registered  on  the  Excluded  Securities  Registration Statement as provided in
Section  2.02.  The Holder shall be entitled to Liquidated Damages  with respect
-------------
to  such  Excluded  Securities  held  by  the Holder and not then included in an
effective  Piggyback  Registration  Statement  for  the  period beginning on the
Initial  Registration  Filing  Date  and  lasting  to but excluding the Excluded
Securities Registration Filing Date; provided, however, that Company may exclude
up  to  40%  of  the  Note Shares from the Initial Registration Statement if the
Company  reasonably  determines  that  it is necessary to do so in order for the
Commission  to  declare  the  Initial  Registration Statement effective and such
Excluded  Securities  shall  not  be  subject  to  Liquidated  Damages.

     Section  2.02      Excluded  Securities  Registration.
                        -----------------------------------

<PAGE>
     (a)     Deadline To Go Effective.  Within seven months after the Commission
             ------------------------
has  declared  the  Initial  Registration  Statement  effective  (the  "Excluded
                                                                        --------
Securities Registration  Statement Filing  Date"), the Company shall prepare and
------------------------------------------------
file  the Excluded Securities Registration Statement.  The Company shall use its
commercially  reasonable  efforts  to cause the Excluded Securities Registration
Statement  to  become  effective  no  later  than  120  days  after the Excluded
Securities  Registration  Statement  Filing  Date.  The  Company  will  use  its
commercially  reasonable  efforts  to cause the Excluded Securities Registration
Statement filed pursuant to this Section 2.02 to be continuously effective under
                                 ------------
the  Securities  Act  during  the Effectiveness Period.  The Excluded Securities
Registration  Statement  when  declared  effective  (including  the  documents
incorporated  therein  by  reference)  will  comply  as  to form in all material
respects with all applicable requirements of the Securities Act and the Exchange
Act and will not contain an untrue statement of a material fact or omit to state
a  material  fact  required  to  be  stated  therein  or  necessary  to make the
statements  therein  not  misleading.

     (b)     Failure  To File. If the Excluded Securities Registration Statement
             ---------------
required  by  Section  2.02  is  not  filed  before  the  Excluded  Securities
              -------------
Registration  Statement  Filing  Date,  then  the  Holder  shall  be entitled to
Liquidated  Damages  with  respect to the Excluded Securities held by the Holder
and  not then included in an effective Piggyback Registration Statement, for the
period  beginning  on  the  day after Excluded Securities Registration Statement
Filing  Date  and  lasting  to  but  excluding  the  day the Excluded Securities
Registration  Statement  is  filed.

     (c)      Failure  To Go Effective.  If the Excluded Securities Registration
              ------------------------
Statement  required  by  Section  2.02 is not declared effective within 150 days
                         -------------
after  the  Excluded  Securities  Registration  Statement  Filing Date, then the
Holder  shall  be  entitled  to  Liquidated Damages with respect to the Excluded
Securities  held  by  the Holder and not then included in an effective Piggyback
Registration  Statement,  for  the  period  beginning on the 150th day after the
Excluded  Securities  Registration  Statement  Filing  Date  and  lasting to but
excluding  the  day  the  Excluded Securities Registration Statement is declared
effective.

     Section  2.03     Warrant Registration.
                       ---------------------

     (a)     Deadline To Go Effective.  As soon as practicable, but in any event
             ------------------------
before  February 7, 2008 (the "Warrant Registration Statement Filing Date"), the
                               ------------------------------------------
Company  shall prepare and file the Warrant Registration Statement.  The Company
shall  use its commercially reasonable efforts to cause the Warrant Registration
Statement  to  become  effective  no  later  than  120  days  after  the Warrant
Registration  Statement  Filing  Date.  The  Company  will  use its commercially
reasonable efforts to cause the Warrant Registration Statement filed pursuant to
this  Section 2.03 to be continuously effective during the Effectiveness Period.
      ------------
The  Warrant  Registration  Statement  when  declared  effective  (including the
documents  incorporated  therein  by  reference)  will  comply as to form in all
material respects with all applicable requirements of the Securities Act and the
Exchange Act and will not contain an untrue statement of a material fact or omit
to  state a material fact required to be stated therein or necessary to make the
statements  therein  not  misleading.

     (b)     Failure  To File. If the Warrant Registration Statement required by
             ---------------
Section  2.03 is not filed before  the  Warrant  Registration  Statement  Filing
-------------
 Date, then  the  Holder  shall  be  entitled

<PAGE>
to  Liquidated  Damages  for  the  period  beginning on the Warrant Registration
Statement  Filing  Date  and  lasting  to  but  excluding  the  day  the Warrant
Registration  Statement  is  filed.

     (c)     Failure  To  Go  Effective.  If  the Warrant Registration Statement
             --------------------------
required  by  Section  2.03  is not declared effective within 150 days after the
              -------------
Warrant Registration Statement Filing Date, then the Holder shall be entitled to
Liquidated Damages with respect to the Warrant Shares held by the Holder and not
then  included  in an effective Piggyback Registration Statement, for the period
beginning  on the 150th day after the Warrant Registration Statement Filing Date
and  lasting  to  but  excluding  the  day the Warrant Registration Statement is
declared  effective.

     Section  2.04     Additional  Provisions  related  to  Liquidated  Damages
                       --------------------------------------------------------

     (a)     Delay  Rights.  Notwithstanding  anything to the contrary contained
             -------------
herein,  the  Company  may,  upon written notice to any Holder whose Registrable
Securities  are  included in a Registration Statement, suspend such Holder's use
of  any prospectus which is a part of the Registration Statement (in which event
the Holder shall discontinue sales of the Registrable Securities pursuant to the
Registration  Statement),  for a period not to exceed an aggregate of 90 days in
any  365-day  period,  if  (i)  the  Company is pursuing a material acquisition,
merger, reorganization, disposition or other similar transaction and the Company
determines  in  good  faith  that  its  ability  to  pursue or consummate such a
transaction would be materially adversely affected by any required disclosure of
such  transaction  in  such  Registration  Statement  or  (ii)  the  Company has
experienced  some  other  material  non-public event, the disclosure of which at
such time, in the good faith judgment of the Company, would materially adversely
affect  the  Company.  Upon disclosure of such information or the termination of
the  condition  described above, the Company shall provide prompt written notice
to  the  Holders  whose  Registrable Securities are included in the Registration
Statement,  and shall promptly terminate any suspension of sales it has put into
effect  and  shall  take  such  other  actions  to  permit  registered  sales of
Registrable  Securities  as  contemplated  in  this  Agreement.

     (b)     Cessation  of Effectiveness.  If any of the Registration Statements
             ---------------------------
are  filed  and declared effective but shall thereafter cease to be effective or
fail  to  be usable for the resale of the applicable Registrable Securities (the
"Failure Date") for any reason other than as provided in 2.04(a) above, then the
 ------------
Holder  will  be  entitled  to Liquidated Damages for the Registrable Securities
held by the Holder subject to such Registration Statement for a period beginning
on  the  Failure  Date  and  lasting  to  but excluding the day a post-effective
amendment  to the Registration Statement is declared effective by the Commission
or  supplement  or  report  is  filed  with  the  Commission  and the applicable
Registration  Statement  is  useable  for  the  resale of Registrable Securities
registered  thereon.

     (c)     Limits  on  Liquidated Damages.  The aggregate amount of Liquidated
             ------------------------------
Damages payable by the Company under this Agreement to any Holder as a result of
events  in  (i)  Sections 2.01, 2.02 and 2.03 shall not exceed $500,000 and (ii)
Section 2.04(b) shall not exceed $1,000,000; provided, however, that in no event
shall  the aggregate amount of the Liquidated Damages payable to the Holder as a
result  of  events  in  Sections 2.01, 2.02, 2.03 and 2.04(b) exceed $1,000,000.
Further,  the  Liquidated  Damages shall be automatically eliminated without any
action  by  the  parties  to  the  extent  the  Commission or the then published
statements  of  the

<PAGE>
Fair  Accounting Standards Board provides that (A) any portion of the Liquidated
Damages  shall  be  accounted  for  as  a  derivative  instrument  rather than a
contingent payment obligation under generally accepted accounting principles and
the  rules  and  regulations  of  the  Commission  or (B) any of the Registrable
Securities  (whether  or  not  deemed  to include the Liquidated Damages payment
obligation) must be accounted for as interests other than equity interests under
generally  accepted  accounting  principles and the rules and regulations of the
Commission.  Further,  any  other action necessary to insure that the Liquidated
Damages  or  the Registrable Securities are not accounted for as provided in (A)
and  (B) of the previous sentence shall occur, including, if necessary, that the
Holder  shall repay to the Company any of the Liquidated Damages attributable to
(A)  or  (B)  that  have  been  previously  paid  by  the  Company.

     (d)     Payment  of  Liquidated  Damages.  Any  Liquidated Damages shall be
             --------------------------------
paid  to  the  Holder  in  immediately  available funds within ten Business Days
after  the  end  of  the  applicable  30-day period.  Liquidated Damages for any
period  of  less  than  30  days  shall be prorated by multiplying the amount of
Liquidated  Damages  to  be  paid  in  a  full  30-day period by a fraction, the
numerator  of  which is the number of days for which such Liquidated Damages are
owed,  and the denominator of which is 30. The calculation of Liquidated Damages
hereunder  is  subject  to  appropriate  adjustments  for  any  subdivision  or
combination of shares of Common Stock after the date hereof.  The payment of the
Liquidated  Damages  to  a  Holder  shall  cease at such time as the Registrable
Securities  become  eligible  for  resale under Rule 144(k) under the Securities
Act.

     Section  2.05     Piggyback  Rights.
                       -----------------

     (a)     General.  If  at  any  time  the  Company  proposes  to  file (i) a
             -------
prospectus  supplement  to  an  effective shelf registration statement or (ii) a
registration statement (other than a registration related to an employee benefit
plan,  a  registration  on  Form S-4 or a registration on any form that does not
permit secondary sales) for the sale of Common Stock in an Underwritten Offering
for its own account and/or another Person ((i) and (ii) collectively referred to
as  the "Piggyback Registration Statement"), then as soon as practicable but not
         --------------------------------
less  than  three  Business  Days  prior  to  the  filing of (x) any preliminary
prospectus  supplement  relating  to such Underwritten Offering pursuant to Rule
424(b)  under the Securities Act, (y) the prospectus supplement relating to such
Underwritten  Offering  pursuant  to Rule 424(b) under the Securities Act (if no
preliminary  prospectus  supplement is used) or (z) such registration statement,
as  the  case  may  be,  then,  the  Company  shall give notice of such proposed
Underwritten  Offering to the Holders and such notice shall offer the Holder the
opportunity  to include in such Underwritten Offering such number of Registrable
Securities  (the  "Included  Registrable  Securities")  as  each such Holder may
                   ---------------------------------
request  in  writing; provided, however, that if the Company has been advised by
the  Managing  Underwriter that the inclusion of Registrable Securities for sale
for the benefit of the Holders will have a material adverse effect on the price,
timing  or  distribution  of the Common Stock in the Underwritten Offering, then
the  amount  of Registrable Securities to be offered for the accounts of Holders
shall  be  determined based on the provisions of (c).  The notice required to be
                                                 ---
provided  in  this  Section  2.05 to Holders shall be provided on a Business Day
                    -------------
pursuant  to  Section  3.01  hereof.   Each  such  Holder  shall then have three
              -------------
Business  Days  after  receiving such notice to request inclusion of Registrable
Securities  in the Underwritten Offering, except that such Holder shall have one
Business  Day  after  such  Holder  confirms  receipt  of  the notice to request
inclusion  of Registrable Securities in the Underwritten Offering in the case of
a  "bought  deal"  or "overnight transaction" where no preliminary prospectus is
used.

<PAGE>
If no request for inclusion from a Holder is received within the specified time,
each such Holder shall have no further right to participate in such Underwritten
Offering.  If,  at  any  time  after  giving  written notice of its intention to
undertake an Underwritten Offering and prior to the closing of such Underwritten
Offering,  the  Company  shall  determine  for any reason not to undertake or to
delay such Underwritten Offering, the Company may, at its election, give written
notice  of  such  determination to the Selling Holders and, (x) in the case of a
determination  not to undertake such Underwritten Offering, shall be relieved of
its  obligation  to  sell any Included Registrable Securities in connection with
such terminated Underwritten Offering, and (y) in the case of a determination to
delay  such  Underwritten  Offering,  shall  be  permitted to delay offering any
Included  Registrable  Securities  for  the  same  period  as  the  delay in the
Underwritten  Offering. Any Selling Holder shall have the right to withdraw such
Selling  Holder's  request  for  inclusion  of such Selling Holder's Registrable
Securities  in  such  offering  by  giving written notice to the Company of such
withdrawal  up  to  and  including  the  time  of  pricing  of  such  offering.

     (b)     Procedures.  In  connection  with  any  Underwritten Offering under
             ----------
this Agreement, the Company shall be entitled to select the Managing Underwriter
or  Underwriters.  In  connection  with an Underwritten Offering contemplated by
(a)  in which a Selling Holder participates, each Selling Holder and the Company
shall  be  obligated  to enter into an underwriting agreement that contains such
representations,  covenants, indemnities and other rights and obligations as are
customary  in  underwriting  agreements  for  firm  commitment  offerings  of
securities.  No  Selling  Holder  may  participate in such Underwritten Offering
unless  such  Selling  Holder  agrees  to sell its Registrable Securities on the
basis  provided  in  such  underwriting agreement and completes and executes all
questionnaires,  powers  of attorney, indemnities and other documents reasonably
required  under  the  terms of such underwriting agreement.  Each Selling Holder
may,  at  its  option,  require  that  any  or  all  of  the representations and
warranties  by,  and the other agreements on the part of, the Company to and for
the  benefit  of such underwriters also be made to and for such Selling Holder's
benefit  and  that  any or all of the conditions precedent to the obligations of
such underwriters under such underwriting agreement also be conditions precedent
to  its  obligations.  No  Selling  Holder  shall  be  required  to  make  any
representations  or  warranties  to  or  agreements  with  the  Company  or  the
underwriters other than representations, warranties or agreements regarding such
Selling  Holder,  its authority to enter into such underwriting agreement and to
sell,  and  its ownership of, the securities being registered on its behalf, its
intended  method  of  distribution and any other representation required by Law.
If  any Selling Holder disapproves of the terms of an underwriting, such Selling
Holder may elect to withdraw therefrom by notice to the Company and the Managing
Underwriter;  provided,  however,  that  such  withdrawal must be made up to and
including the time of pricing of such Underwritten Offering.  No such withdrawal
or  abandonment  shall  affect  the  Company's  obligation  to  pay Registration
Expenses.

     (c)     Priority of Rights.  If the Managing Underwriter or Underwriters of
             ------------------
any  proposed  Underwritten Offering of Common Stock included in an Underwritten
Offering involving Included Registrable Securities advises that the total amount
of  Common Stock that the Selling Holder and any other Persons intend to include
in  such  offering  exceeds the number that can be sold in such offering without
being  likely  to  have  a  material  adverse  effect  on  the  price, timing or
distribution  of  the  Common  Stock offered or the market for the Common Stock,
then the Common Stock to be included in such Underwritten Offering shall include
the  number  of

<PAGE>
Registrable  Securities  that  such Managing Underwriter or Underwriters advises
can be sold without having such adverse effect, with such number to be allocated
(i)  first,  to  the  Company,  (ii)  second, pro rata among the Selling Holders
based,  for  each  Selling  Holder,  on the fraction derived by dividing (x) the
number  of  Common  Stock  proposed  to  be  sold by such Selling Holder in such
Underwritten Offering by (y) the aggregate number of Common Stock proposed to be
sold  by  all  Selling  Holders  in  such  Underwritten  Offering.

     Section 2.06     Sale Procedures.  In connection with its obligations under
                      ---------------
this  Article  II,  the  Company  will,  as  expeditiously  as  possible:
      -----------

     (a)     prepare  and  file  with  the  Commission  such  amendments  and
supplements  to  a  Registration Statement and the prospectus used in connection
therewith  as  may be necessary to keep the Registration Statement effective for
the  Effectiveness  Period and as may be necessary to comply with the provisions
of  the Securities Act with respect to the disposition of all securities covered
by  the  Registration  Statement;

     (b)     if  a  prospectus  supplement  will  be used in connection with the
marketing  of  an Underwritten Offering and the Managing Underwriter at any time
shall  notify the Company in writing that, in the sole judgment of such Managing
Underwriter,  inclusion  of  detailed  information to be used in such prospectus
supplement is of material importance to the success of the Underwritten Offering
of  such  Registrable  Securities,  the  Company  shall  use  its  commercially
reasonable  efforts  to  include such information in such prospectus supplement;

     (c)     furnish  to each Selling Holder (i) as far in advance as reasonably
practicable  before  filing  a  Registration Statement or any other registration
statement contemplated by this Agreement or any supplement or amendment thereto,
upon  request,  copies  of  reasonably  complete  drafts  of  all such documents
proposed  to  be  filed  (including  exhibits  and each document incorporated by
reference  therein  to  the extent then required by the rules and regulations of
the  Commission), and provide each such Selling Holder the opportunity to object
to  any  information  pertaining  to  such  Selling  Holder  and  its  plan  of
distribution  that  is  contained  therein  and  make the corrections reasonably
requested  by  such  Selling  Holder  with  respect to such information prior to
filing  a  Registration  Statement  or  such  other  registration  statement  or
supplement  or  amendment  thereto,  and  (ii)  such  number  of  copies  of the
Registration  Statement  or such other registration statement and the prospectus
included  therein and any supplements and amendments thereto as such Persons may
reasonably  request  in order to facilitate the public sale or other disposition
of  the  Registrable  Securities covered by such Registration Statement or other
registration  statement;

     (d)     if  applicable, use its commercially reasonable efforts to register
or  qualify  the Registrable Securities covered by the Registration Statement or
any  other  registration  statement  contemplated  by  this  Agreement under the
securities  or blue sky laws of such jurisdictions as the Selling Holders or, in
the case of an Underwritten Offering, the Managing Underwriter, shall reasonably
request;  provided,  however,  that  the Company will not be required to qualify
generally to transact business in any jurisdiction where it is not then required
to so qualify or to take any action which would subject it to general service of
process  in  any  such  jurisdiction  where  it  is  not  then  so  subject;

<PAGE>
     (e)     promptly  notify  each  Selling Holder and each underwriter, at any
time  when  a  prospectus relating thereto is required to be delivered under the
Securities  Act,  of  (i)  the  filing  of a Registration Statement or any other
registration  statement  contemplated  by  this  Agreement  or any prospectus or
prospectus  supplement  to  be used in connection therewith, or any amendment or
supplement  thereto,  and,  with  respect  to such Registration Statement or any
other  registration  statement or any post-effective amendment thereto, when the
same  has  become  effective;  and (ii) any written comments from the Commission
with  respect to any filing referred to in clause (i) and any written request by
the  Commission  for  amendments or supplements to the Registration Statement or
any  other  registration  statement  or  any prospectus or prospectus supplement
thereto;

     (f)     immediately notify each Selling Holder and each underwriter, at any
time  when  a  prospectus relating thereto is required to be delivered under the
Securities  Act,  of  (i)  the  happening  of any event as a result of which the
prospectus  or  prospectus supplement contained in the Registration Statement or
any  other  registration  statement  contemplated  by this Agreement, as then in
effect,  includes  an  untrue statement of a material fact or omits to state any
material  fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing; (ii) the
issuance  or  threat  of issuance by the Commission of any stop order suspending
the  effectiveness  of  the  Registration  Statement  or  any other registration
statement  contemplated  by this Agreement, or the initiation of any proceedings
for  that  purpose; or (iii) the receipt by the Company of any notification with
respect to the suspension of the qualification of any Registrable Securities for
sale  under  the  applicable  securities  or  blue sky laws of any jurisdiction.
Following  the  provision  of  such notice, the Company agrees to as promptly as
practicable  amend or supplement the prospectus or prospectus supplement or take
other  appropriate  action  so that the prospectus or prospectus supplement does
not  include  an untrue statement of a material fact or omit to state a material
fact  required  to be stated therein or necessary to make the statements therein
not  misleading in the light of the circumstances then existing and to take such
other  action as is necessary to remove a stop order, suspension, threat thereof
or  proceedings  related  thereto;

     (g)     upon  request  and  subject  to  appropriate  confidentiality
obligations,  furnish  to  each Selling Holder copies of any and all transmittal
letters  or  other  correspondence with the Commission or any other governmental
agency  or self-regulatory body or other body having jurisdiction (including any
domestic  or  foreign  securities  exchange)  relating  to  such  offering  of
Registrable  Securities;

     (h)     in  the case of an Underwritten Offering, furnish upon request, (i)
an  opinion  of  counsel  for  the  Company,  dated  the  effective  date of the
applicable  registration  statement  or  the date of any amendment or supplement
thereto,  and  a  letter  of  like  kind dated the date of the closing under the
underwriting  agreement,  and  (ii) a "cold comfort" letter, dated the effective
date  of  the  applicable registration statement or the date of any amendment or
supplement thereto and a letter of like kind dated the date of the closing under
the  underwriting  agreement,  in  each  case,  signed by the independent public
accountants  who  have  certified the Company's financial statements included or
incorporated  by  reference into the applicable registration statement, and each
of  the  opinion  and  the  "cold comfort" letter shall be in customary form and
covering  substantially  the  same  matters  with  respect  to such registration
statement (and the prospectus and any prospectus supplement included therein) as
are  customarily  covered  in  opinions  of  issuer's

<PAGE>
counsel  and  in  accountants'  letters  delivered  to  the  underwriters  in
Underwritten Offerings of securities and such other matters as such underwriters
may  reasonably  request;

     (i)     otherwise  use  its  commercially reasonable efforts to comply with
all  applicable  rules  and regulations of the Commission, and make available to
its  security holders, as soon as reasonably practicable, an earnings statement,
which  earnings  statement  shall satisfy the provisions of Section 11(a) of the
Securities  Act  and  Rule  158  promulgated  thereunder;

     (j)     make  available  to the appropriate representatives of the Managing
Underwriter  and  Selling  Holders  access  to  such information and the Company
personnel  as  is reasonable and customary to enable such parties to establish a
due  diligence  defense  under  the  Securities  Act;

     (k)     cause  all  such Registrable Securities registered pursuant to this
Agreement  to  be  listed  on  each securities exchange or nationally recognized
quotation  system  on  which  similar  securities issued by the Company are then
listed;

     (l)     use  its  commercially  reasonable efforts to cause the Registrable
Securities to be registered with or approved by such other governmental agencies
or  authorities  as may be necessary by virtue of the business and operations of
the  Company to enable the Selling Holders to consummate the disposition of such
Registrable  Securities;

     (m)     provide  a  transfer  agent  and  registrar  for  all  Registrable
Securities  covered  by such registration statement not later than the effective
date  of  such  registration  statement;  and

     (n)     enter  into customary agreements and take such other actions as are
reasonably  requested  by  the  Selling  Holders or the underwriters, if any, in
order  to expedite or facilitate the disposition of such Registrable Securities.

     Each  Selling  Holder,  upon  receipt  of  notice  from  the Company of the
happening  of  any event of the kind described in subsection (f) of this Section
                                                                         -------
2.06,  shall  forthwith  discontinue  disposition  of the Registrable Securities
----
until such Selling Holder's receipt of the copies of the supplemented or amended
prospectus  contemplated  by  subsection (f) of this Section 2.06 or until it is
                                                     ------------
advised in writing by the Company that the use of the prospectus may be resumed,
and  has  received copies of any additional or supplemental filings incorporated
by reference in the prospectus, and, if so directed by the Company, such Selling
Holder  will,  or will request the Managing Underwriter or underwriters, if any,
to  deliver  to  the  Company  (at  the  Company's  expense) all copies in their
possession  or  control,  other  than permanent file copies then in such Selling
Holder's  possession,  of  the  prospectus  covering such Registrable Securities
current  at  the  time  of  receipt  of  such  notice.

     Section  2.07     Cooperation  by  Holders.  The  Company  shall  have  no
                       ------------------------
obligation  to  include  in a Registration Statement units of a Holder, or in an
Underwritten  Offering  pursuant  to  Section 2.05 Registrable Securities of the
                                      ------------
Selling  Holder,  who has failed to timely furnish such information that, in the
opinion  of  counsel  to  the  Company,  is reasonably required in order for the
registration  statement  or prospectus supplement, as applicable, to comply with
the  Securities  Act.

     Section  2.08     Expenses.
                       --------

<PAGE>
     (a)     Expenses.  The  Company  will  pay  all  reasonable  Registration
             --------
Expenses  as determined in good faith, including, in the case of an Underwritten
Offering,  whether  or  not  any  sale  is  made  pursuant  to such Underwritten
Offering.  Each Selling Holder shall pay all Selling Expenses in connection with
any  sale  of  its  Registrable  Securities  hereunder.  In  addition, except as
otherwise  provided in Section 2.09 hereof, the Company shall not be responsible
                       ------------
for  legal  fees  incurred  by  Holders  in connection with the exercise of such
Holders'  rights  hereunder.

     (b)     Certain  Definitions.  "Registration  Expenses"  means all expenses
             --------------------    ----------------------
incident to the Company's performance under or compliance with this Agreement to
effect  the registration of Registrable Securities on the Registration Statement
pursuant  to  Section  2.01  or  an  Underwritten  Offering  covered  under this
              -------------
Agreement,  and  the  disposition  of  such  securities,  including,  without
limitation,  all  registration,  filing, securities exchange listing and related
fees,  all  registration,  filing,  qualification and other fees and expenses of
complying  with securities or blue sky laws, fees of the National Association of
Securities  Dealers,  Inc.,  fees  of  transfer  agents and registrars, all word
processing,  duplicating and printing expenses and the fees and disbursements of
counsel  and  independent  public  accountants  for  the  Company, including the
expenses of any special audits or "cold comfort" letters required by or incident
to  such  performance and compliance.  "Selling Expenses" means all underwriting
                                        ----------------
fees,  discounts  and  selling  commissions allocable to, and any transfer taxes
associated  with,  the  sale  of  the  Registrable  Securities.

     Section  2.09     Indemnification.
                       ---------------

     (a)     By the  Company. In  the event of a registration of any Registrable
             ---------------
Securities under the Securities Act pursuant to this Agreement, the Company will
indemnify  and  hold  harmless  each  Selling  Holder thereunder, its directors,
officers, employees and agents, and each underwriter, pursuant to the applicable
underwriting  agreement  with  such  underwriter,  of  Registrable  Securities
thereunder  and each Person, if any, who controls such Selling Holder within the
meaning of the Securities Act and the Exchange Act, and its directors, officers,
employees  or  agents,  against  any  losses,  claims,  damages,  expenses  or
liabilities  (including  reasonable attorneys' fees and expenses) (collectively,
"Losses"),  joint  or  several,  to  which such Selling Holder or underwriter or
 ------
controlling Person may become subject under the Securities Act, the Exchange Act
or  otherwise,  insofar  as  such  Losses  (or  actions  or proceedings, whether
commenced  or threatened, in respect thereof) arise out of or are based upon any
untrue  statement  or alleged untrue statement of any material fact contained in
the  Registration  Statement or any other registration statement contemplated by
this  Agreement,  any  preliminary  prospectus, free writing prospectus or final
prospectus  contained  therein, or any amendment or supplement thereof, or arise
out  of  or  are  based upon the omission or alleged omission to state therein a
material  fact required to be stated therein or necessary to make the statements
therein  (in the case of a prospectus, in light of the circumstances under which
they were made) not misleading, and will reimburse each such Selling Holder, its
directors,  officers,  employee  and agents, each such underwriter and each such
controlling  Person  for any legal or other expenses reasonably incurred by them
in  connection  with  investigating  or  defending  any  such Loss or actions or
proceedings;  provided, however, that the Company will not be liable in any such
case  if  and to the extent that any such Loss arises out of or is based upon an
untrue  statement or alleged untrue statement or omission or alleged omission so
made  in  conformity  with  information  furnished  by  such Selling Holder, its
directors, officers, employees and agents or any underwriter or such controlling
Person  in  writing  specifically  for use in the Registration Statement or such
other  registration

<PAGE>
statement,  or prospectus supplement, as applicable. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of
such  Selling  Holder  or  any such directors, officers, employees agents or any
underwriter  or  controlling  Person,  and  shall  survive  the transfer of such
securities  by  such  Selling  Holder.

     (b)     By  Each  Selling Holder.  Each Selling Holder agrees severally and
             ------------------------
not jointly to indemnify and hold harmless the Company, its directors, officers,
employees  and  agents  and each Person, if any, who controls the Company within
the  meaning  of  the  Securities Act or of the Exchange Act, and its directors,
officers,  employees  and  agents, to the same extent as the foregoing indemnity
from  the  Company  to the Selling Holders, but only with respect to information
regarding  such  Selling  Holder  furnished  in  writing by or on behalf of such
Selling Holder expressly for inclusion in a Registration Statement or prospectus
supplement  relating  to  the  Registrable  Securities,  or  any  amendment  or
supplement thereto; provided, however, that the liability of each Selling Holder
shall  not  be  greater in amount than the dollar amount of the proceeds (net of
any  Selling  Expenses)  received  by  such  Selling Holder from the sale of the
Registrable  Securities  giving  rise  to  such  indemnification.

     (c)     Notice.  Promptly  after  receipt by an indemnified party hereunder
             ------
of  notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against the indemnifying party hereunder,
notify  the indemnifying party in writing thereof, but the omission so to notify
the indemnifying party shall not relieve it from any liability which it may have
to  any  indemnified  party  other  than under this Section 2.09.  In any action
                                                    ------------
brought against any indemnified party, it shall notify the indemnifying party of
the  commencement  thereof.  The  indemnifying  party  shall  be  entitled  to
participate  in  and,  to  the extent it shall wish, to assume and undertake the
defense  thereof  with counsel reasonably satisfactory to such indemnified party
and,  after  notice from the indemnifying party to such indemnified party of its
election  so to assume and undertake the defense thereof, the indemnifying party
shall  not  be  liable to such indemnified party under this Section 2.09 for any
                                                            ------------
legal  expenses  subsequently  incurred  by such indemnified party in connection
with  the  defense  thereof  other than reasonable costs of investigation and of
liaison  with  counsel  so  selected;  provided,  however,  that,  (i)  if  the
indemnifying party has failed to assume the defense or employ counsel reasonably
acceptable to the indemnified party or (ii) if the defendants in any such action
include both the indemnified party and the indemnifying party and counsel to the
indemnified  party  shall  have  concluded that there may be reasonable defenses
available  to  the  indemnified  party  that are different from or additional to
those  available  to  the  indemnifying  party,  or  if  the  interests  of  the
indemnified party reasonably may be deemed to conflict with the interests of the
indemnifying  party, then the indemnified party shall have the right to select a
separate  counsel  and to assume such legal defense and otherwise to participate
in  the  defense  of  such action, with the reasonable expenses and fees of such
separate  counsel and other reasonable expenses related to such participation to
be  reimbursed by the indemnifying party as incurred.  Notwithstanding any other
provision  of  this  Agreement,  no  indemnified  party  shall settle any action
brought  against  it  with  respect  to  which it is entitled to indemnification
hereunder  without  the consent of the indemnifying party, unless the settlement
thereof  imposes  no  liability  or  obligation  on, and includes a complete and
unconditional  release  from  all  liability  of,  the  indemnifying  party.

     (d)     Contribution.  If  the indemnification provided for in this Section
             ------------                                                -------
2.09  is  held  by  a court or government agency of competent jurisdiction to be
----
unavailable  to  any  indemnified  party

<PAGE>
or  is  insufficient  to  hold them harmless in respect of any Losses, then each
such  indemnifying  party, in lieu of indemnifying such indemnified party, shall
contribute  to  the amount paid or payable by such indemnified party as a result
of  such Loss in such proportion as is appropriate to reflect the relative fault
of  the  indemnifying party on the one hand and of such indemnified party on the
other  in  connection  with  the  statements or omissions which resulted in such
Losses,  as  well  as  any  other  relevant  equitable considerations; provided,
however, that in no event shall such Selling Holder be required to contribute an
aggregate  amount  in  excess  of  the dollar amount of proceeds (net of Selling
Expenses)  received  by  such  Selling  Holder  from  the  sale  of  Registrable
Securities  giving  rise  to  such  indemnification.  The  relative fault of the
indemnifying  party on the one hand and the indemnified party on the other shall
be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a  material  fact  has been made by, or relates to, information supplied by such
party,  and  the  parties' relative intent, knowledge, access to information and
opportunity  to  correct  or  prevent  such  statement or omission.  The parties
hereto  agree  that it would not be just and equitable if contributions pursuant
to  this  paragraph were to be determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations
referred  to herein.  The amount paid by an indemnified party as a result of the
Losses  referred  to  in the first sentence of this paragraph shall be deemed to
include  any  legal  and  other expenses reasonably incurred by such indemnified
party  in  connection  with  investigating  or  defending  any Loss which is the
subject  of  this  paragraph.  No  person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution  from  any  Person  who  is  not  guilty  of  such  fraudulent
misrepresentation.

     (e)     Other  Indemnification.  The  provisions of this Section 2.09 shall
             ----------------------                           ------------
be  in  addition to any other rights to indemnification or contribution which an
indemnified  party  may  have  pursuant  to  law, equity, contract or otherwise.

     Section  2.10     Rule  144 Reporting.  With a view to making available the
                       -------------------
benefits  of certain rules and regulations of the Commission that may permit the
sale  of  the  Registrable  Securities  to  the public without registration, the
Company  agrees  to  use  its  commercially  reasonable  efforts  to:

     (a)     Make  and  keep public information regarding the Company available,
as  those terms are understood and defined in Rule 144 under the Securities Act,
at  all  times  from  and  after  the  date  hereof;

     (b)     File  with  the Commission in a timely manner all reports and other
documents  required of the Company under the Securities Act and the Exchange Act
at  all  times  from  and  after  the  date  hereof;  and

     (c)     So  long  as  a  Holder owns any Registrable Securities, furnish to
such Holder forthwith upon request a copy of the most recent annual or quarterly
report  of  the  Company,  and such other reports and documents so filed as such
Holder  may  reasonably  request in availing itself of any rule or regulation of
the  Commission  allowing  such  Holder  to  sell  any  such  securities without
registration.

<PAGE>
     Section 2.11     Transfer or Assignment of Registration Rights.  The rights
                      ---------------------------------------------
to cause the Company to register Registrable Securities granted to the Holder by
the  Company  under this Article II may be transferred or assigned by any Holder
                         ----------
to  one  or  more  transferee(s)  or assignee(s) of such Registrable Securities;
provided, however, that the Holder must provide the Company written notice prior
to  any  said  transfer or assignment, stating the name and address of each such
transferee  and  identifying  the  securities  with  respect  to  which  such
registration  rights are being transferred or assigned, and each such transferee
must  assume in writing responsibility for its portion of the obligations of the
Holder  under  this  Agreement.

     Section  2.12     Limitation  on  Subsequent Registration Rights.  From and
                       ----------------------------------------------
after  the date hereof, the Company shall not, without the prior written consent
of  the  Holders  of a majority of the outstanding Registrable Securities, enter
into  any  agreement  with any current or future Holder of any securities of the
Company that would allow such current or future Holder to require the Company to
include securities in any registration statement filed by the Company on a basis
that  is  superior  in  any  way  to  the piggyback rights granted to the Holder
hereunder.

                                   ARTICLE III
                                  MISCELLANEOUS

     Section  3.01     Communications.  All  notices  and  other  communications
                       --------------
provided  for  or  permitted  hereunder  shall  be made in writing by facsimile,
electronic  mail,  courier  service  or  personal  delivery:

     (a)     if  to  Purchaser  at  RR  Advisors, LLC, 200 Crescent Court, Suite
1060,  Dallas,  TX 75201-1834, Attn: Robert Raymond (facsimile: (214) 871-8683),

     (b)     if  to  a  transferee  of  Purchaser, to such Holder at the address
provided  pursuant  to  Section  2.11  above,  and
                        -------------

     (c)     if  to  the  Company  at  675  Bering Drive, Suite 200, Houston, TX
77057,  Attn:  President  (facsimile:  (713)  961-9338).

     All  such  notices and communications shall be deemed to have been received
at  the  time  delivered  by  hand,  if  personally  delivered;  when  receipt
acknowledged,  if  sent  via facsimile or sent via Internet electronic mail; and
when  actually  received,  if  sent  by  courier  service  or  any  other means.

     Section  3.02     Successor and Assigns.  This Agreement shall inure to the
                       ---------------------
benefit  of  and  be  binding  upon  the  successors  and assigns of each of the
parties,  including  subsequent  Holders of Registrable Securities to the extent
permitted  herein.

     Section  3.03     Assignment  of  Rights.  All or any portion of the rights
                       ----------------------
and  obligations  of  the  Purchaser  under this Agreement may be transferred or
assigned  by  the  Purchaser  in  accordance  with  Section  2.11  hereof.
                                                    -------------

     Section 3.04     Change of Control.  The provisions of this Agreement shall
                      -----------------
apply  to  the full extent set forth herein with respect to any and all units of
the  Company  or  any  successor  or

<PAGE>
assign  of  the  Company  (whether  by  merger, consolidation, sale of assets or
otherwise) which may be issued in respect of, in exchange for or in substitution
of,  the  Registrable  Securities.

     Section  3.05     Recapitalization,  Exchanges,  Etc.  Affecting the Common
                       ---------------------------------------------------------
Units.  The  Registrable  Securities  shall  be  appropriately  adjusted  for
combinations,  recapitalizations  and  the like occurring after the date of this
Agreement.

     Section  3.06     Specific  Performance.  Damages in the event of breach of
                       ---------------------
this  Agreement  by  a  party  hereto  may  be  difficult, if not impossible, to
ascertain,  and it is therefore agreed that each such Person, in addition to and
without  limiting  any other remedy or right it may have, will have the right to
an  injunction or other equitable relief in any court of competent jurisdiction,
enjoining  any  such breach, and enforcing specifically the terms and provisions
hereof, and each of the parties hereto hereby waives any and all defenses it may
have  on  the ground of lack of jurisdiction or competence of the court to grant
such  an injunction or other equitable relief.  The existence of this right will
not  preclude any such Person from pursuing any other rights and remedies at law
or  in  equity  which  such  Person  may  have.

     Section  3.07     Counterparts.  This  Agreement  may be executed in two or
                       ------------
more  counterparts, all of which when taken together shall be considered one and
the same agreement and shall become effective when counterparts have been signed
by  each  party  and delivered to the other party, it being understood that both
parties  need not sign the same counterpart.  In the event that any signature is
delivered  by  facsimile  transmission  or by e-mail delivery of a ".pdf" format
data  file,  such  signature  shall create a valid and binding obligation of the
party  executing  (or  on whose behalf such signature is executed) with the same
force  and effect as if such facsimile or ".pdf" signature page were an original
thereof.

     Section  3.08     Headings.  The  headings  in  this  Agreement  are  for
                       --------
convenience  of  reference  only  and  shall  not  limit or otherwise affect the
meaning  hereof.

     Section  3.09     Governing  Law.  The  Laws  of  the  State of Texas shall
                       --------------
govern  this  Agreement  without  regard  to  principles  of  conflict  of Laws.

     Section  3.10     Severability  of  Provisions.  Any  provision  of  this
                       ----------------------------
Agreement  which is prohibited or unenforceable in any jurisdiction shall, as to
such  jurisdiction,  be  ineffective  to  the  extent  of  such  prohibition  or
unenforceability  without  invalidating  the  remaining  provisions  hereof  or
affecting  or  impairing the validity or enforceability of such provision in any
other  jurisdiction.

     Section  3.11     Entire  Agreement.  This  Agreement  is  intended  by the
                       -----------------
parties  as  a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in  respect  of the subject matter contained herein.  There are no restrictions,
promises,  warranties or undertakings, other than those set forth or referred to
herein with respect to the rights granted by the Company set forth herein.  This
Agreement  and  the  Purchase  Agreement  supersede  all  prior  agreements  and
understandings  between  the  parties  with  respect  to  such  subject  matter.

     Section 3.12     Amendment.  This Agreement may be amended only by means of
                      ---------
a  written  amendment signed by the Company and the Holders of a majority of the
then  outstanding

<PAGE>
Registrable  Securities;  provided,  however,  that  no  such  amendment  shall
materially  and adversely affect the rights of any Holder hereunder, relative to
any  other  Holder,  without  the  consent  of  such  Holder.

     Section  3.13     No Presumption.  If any claim is made by a party relating
                       --------------
to  any  conflict,  omission,  or ambiguity in this Agreement, no presumption or
burden  of  proof or persuasion shall be implied by virtue of the fact that this
Agreement  was  prepared  by  or  at  the  request  of a particular party or its
counsel.

                           [SIGNATURE PAGES TO FOLLOW]

<PAGE>
     IN WITNESS WHEREOF, the Parties hereto execute this Agreement, effective as
of  the  date  first  above  written.

                                       PETROSEARCH ENERGY CORPORATION

                                       By: /s/ Richard D. Dole
                                           ------------------------------------
                                       Name: Richard D. Dole
                                            -----------------------------------
                                       Title: Chief Executive Officer
                                              and President
                                             ----------------------------------

                                       RCH PETRO INVESTORS, LP

                                       By: RR Advisors, LLC, its general partner

                                       By: /s/ Robert Raymond
                                           ------------------------------------
                                            Robert Raymond, Sole Member

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