Document:

Exhibit 10.10.1

                   [FORM - ALTERNATIVE PROVISIONS IN BRACKETS]
                                Option Agreement

Access   National   Corporation   (the   "Company"),   for  good  and   valuable
consideration,  hereby  grants  to the  Optionee  set  forth  below an option to
purchase shares of the Common Stock of the Company (the "Option"). The Option is
intended to be [a non-qualified  stock option] [an incentive stock option] under
the Internal  Revenue Code. The Option is granted under, and shall be subject to
the terms and  conditions  set forth in, the Access  National  Corporation  2009
Stock  Option  Plan,  as the same be amended or replaced  from time to time (the
"Plan"), and in addition shall be subject to the terms set forth below:
Optionee                :
Date of Grant           :
Number of Shares        :
Option Price            :
Expiry Date             :

Rights of Exercise (Vesting Schedule):
Vesting Date       Number of Vested Shares under Option

On the close of the  business day of the Expiry  Date,  the Option  granted will
expire and terminate and be of no further force and effect  whatsoever as to the
shares of the Common  Stock for which the  Option  hereby  granted  has not been
exercised.

The  unexercised  portion of the  Option  granted  hereunder,  and all rights to
purchase pursuant thereto, shall expire and terminate [immediately upon] [within
________ days of] the Optionee ceasing to be an Employee of the Company. [If the
Optionee  exercises  any portion of the Option  within 90 days prior to Optionee
ceasing to be an Employee of the Company per Section 6.10 of the Plan,  Optionee
agrees  to repay  (by  direct  payment  or by  set-off)  within 10 days any gain
realized from the exercise of the Option during such 90 day period.]

The Option is not  transferable.  Optionee shall have no rights as a shareholder
with respect to any shares of Common Stock  subject to the Option until the date
of the exercise of the Option for such shares.

By Optionee's  acceptance of this Agreement and the Option  represented  hereby,
the Optionee  confirms that the Option and all shares of Common Stock  purchased
upon any  exercise of the Option have been and will be acquired  for  investment
purposes  only and not with the view to  distribute or transfer and will be held
for Optionee's own account.  Furthermore,  by acceptance of this Agreement,  the
Optionee agrees to take into consideration the current strength of the Company's
Common Stock price and to not sell any shares into the market that would cause a
substantial decrease in the Company's Common Stock price.

Furthermore,  by acceptance of this  Agreement,  the Optionee  agrees that he is
responsible for the payment of any taxes (including  alternative  minimum taxes)
related to the  Option.  [If  approved  by the  Committee  for the  Option:  The
Optionee may elect to satisfy the withholding requirement,  in whole or in part,
by having the Company withhold shares of Common Stock having a Fair Market Value
equal to the amount  required to be withheld in accordance  with Section 11.2 of
the Plan.] [For ISO only: Optionee also agrees to notify the Company if Optionee
sells the shares  purchased  upon exercise of the Option within two years of the
Date of Grant of the  Option or within one year of the date of  exercise  of the
Option (the  required  holding  periods for favorable tax treatment of incentive
stock  options).]  The  Company  advises  Optionee to contact his tax advisor to
discuss any tax issues.

[If approved by the Committee for the Option:  The Optionee may elect to pay the
Option Price, in whole or in part, by delivering to the Company shares of Common
Stock in accordance  with Section 6.6 of the Plan. The Optionee may elect to pay
the Option  Price,  in whole or in part,  by net  exercise  in  accordance  with
Section 6.6 of the Plan.]

Where  used  herein  all  defined  terms  shall  have  the  respective  meanings
attributed thereto in the Plan.

Dated at Reston, Virginia on _____________, _____.

ACCESS NATIONAL CORPORATION:

By:
       ---------------------------

       Michael W Clarke,
       President/CEO

The Undersigned  hereby  acknowledges  receipt of a copy of the Plan and accepts
and  agrees to the grant of the  Option  on the terms and  conditions  set forth
herein and in the Plan.

-------------------------
(Optionee)exh10-1.htm

    

    EXHIBIT
10.1

    

    

    

    

    

    

    

    CONTRIBUTION
AND EXCHANGE AGREEMENT

     

    by
and among

     

    DORCHESTER
MINERALS, L.P.

     

    TIGGATOR,
INC.

     

    TRB
MINERALS, LP

     

    and

     

    WEST
FORK PARTNERS, L.P.

     

     

     

    May
15, 2009

     

    
       

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
OF CONTENTS

                                                                                                                            Page

     

    

      
        
          
            	
                    ARTICLE
      1

                  	
                    CLOSING;
      CONTRIBUTION

                  	
                    1

                     

                  
	
                    1.1

                  	
                    Closing

                  	
                    1

                  
	
                    1.2

                  	
                    Contribution

                  	
                    1

                  
	
                    1.3

                  	
                    Instruments
      of Conveyance

                  	
                    4

                  
	
                    1.4

                  	
                    No
      Liabilities Assumed by the Partnership

                  	
                    4

                  
	
                    1.5

                  	
                    Tax
      Consequences

                  	
                    4

                     

                  
	
                    ARTICLE
      2

                  	
                    REPRESENTATIONS
      AND WARRANTIES OF THE PARTNERSHIP

                  	
                    5

                     

                  
	
                    2.1

                  	
                    Organization
      and Existence

                  	
                    5

                  
	
                    2.2

                  	
                    Governing
      Documents

                  	
                    5

                  
	
                    2.3

                  	
                    Capitalization
      of the Partnership

                  	
                    5

                  
	
                    2.4

                  	
                    Authority
      Relative to this Agreement

                  	
                    6

                  
	
                    2.5

                  	
                    Noncontravention

                  	
                    6

                  
	
                    2.6

                  	
                    Governmental
      Approvals

                  	
                    7

                  
	
                    2.7

                  	
                    Financial
      Statements

                  	
                    7

                  
	
                    2.8

                  	
                    Absence
      of Undisclosed Liabilities

                  	
                    7

                  
	
                    2.9

                  	
                    Absence
      of Certain Changes

                  	
                    7

                  
	
                    2.10

                  	
                    Compliance
      With Laws

                  	
                    8

                  
	
                    2.11

                  	
                    Brokerage
      Fees

                  	
                    8

                  
	
                    2.12

                  	
                    Listing

                  	
                    8

                  
	
                    2.13

                  	
                    SEC
      Filings

                  	
                    8

                     

                  
	
                    ARTICLE
      3

                  	
                    REPRESENTATIONS
      AND WARRANTIES  OF THE CONTRIBUTORS

                  	
                    9

                     

                  
	
                    3.1

                  	
                    Organization
      and Existence

                  	
                    9

                  
	
                    3.2

                  	
                    Authority
      Relative to this Agreement

                  	
                    9

                  
	
                    3.3

                  	
                    Noncontravention

                  	
                    9

                  
	
                    3.4

                  	
                    Governmental
      Approvals

                  	
                    10

                  
	
                    3.5

                  	
                    Title
      to the Properties

                  	
                    10

                  
	
                    3.6

                  	
                    Absence
      of Undisclosed Liabilities

                  	
                    10

                  
	
                    3.7

                  	
                    Absence
      of Certain Changes

                  	
                    10

                  
	
                    3.8

                  	
                    Tax
      Matters

                  	
                    10

                  
	
                    3.9

                  	
                    Compliance
      with Laws

                  	
                    11

                  
	
                    3.10

                  	
                    Legal
      Proceedings

                  	
                    11

                  
	
                    3.11

                  	
                    Permits

                  	
                    11

                  
	
                    3.12

                  	
                    Environmental
      Matters

                  	
                    12

                  
	
                    3.13

                  	
                    Proceeds
      of Production

                  	
                    13

                  
	
                    3.14

                  	
                    Commitments

                  	
                    13

                  
	
                    3.15

                  	
                    No
      Alienation

                  	
                    13

                  
	
                    3.16

                  	
                    Make-Up
      Rights

                  	
                    13

                  
	
                    3.17

                  	
                    Imbalances

                  	
                    13

                  
	
                    3.18

                  	
                    Basic
      Documents

                  	
                    14

                  
	
                    3.19

                  	
                    Commitments,
      Abandonments or Proposals

                  	
                    14

                  
	
                    3.20

                  	
                    Area
      of Mutual Interest and Other Agreements; Tax Partnerships

                  	
                    14

                  
	
                    3.21

                  	
                    Payment
      of Expenses

                  	
                    14

                  
	
                    3.22

                  	
                    Oral
      Contracts

                  	
                    15

                  
	
                    3.23

                  	
                    Preferential
      Rights and Consents to Assign

                  	
                    15

                  
	
                    3.24

                  	
                    No
      Participating Minerals

                  	
                    15

                  
	
                    3.25

                  	
                    Brokerage
      Fees

                  	
                    15

                  
	
                    3.26

                  	
                    Investment
      Intent

                  	
                    15

                  
	
                    3.27

                  	
                    Disclosure

                  	
                    16

                     

                  
	
                    ARTICLE
      4

                  	
                    CONDUCT
      OF THE CONTRIBUTORS PENDING CLOSING;  

                    CERTAIN
      ACTIONS RELATING TO CLOSING

                  	
                     

                    16

                     

                  
	
                    4.1

                  	
                    Conduct
      and Preservation of Business of the Contributors

                  	
                    16

                  
	
                    4.2

                  	
                    Restrictions
      on Certain Actions of the Contributors

                  	
                    16

                     

                  
	
                    ARTICLE
      5

                  	
                    ADDITIONAL
      AGREEMENTS

                  	
                    17

                     

                  
	
                    5.1

                  	
                    Access
      to Information; Confidentiality

                  	
                    17

                  
	
                    5.2

                  	
                    Notification
      of Certain Matters

                  	
                    17

                  
	
                    5.3

                  	
                    Reasonable
      Best Efforts

                  	
                    17

                  
	
                    5.4

                  	
                    Public
      Announcements

                  	
                    18

                  
	
                    5.5

                  	
                    Amendment
      of Schedules

                  	
                    18

                  
	
                    5.6

                  	
                    Fees
      and Expenses

                  	
                    18

                  
	
                    5.7

                  	
                    Tax
      Reporting

                  	
                    18

                  
	
                    5.8

                  	
                    Tax
      Disclosure

                  	
                    18

                  
	
                    5.9

                  	
                    Post-Closing
      Assurances and Access to Records

                  	
                    19

                  
	
                    5.10

                  	
                    NASDAQ
      Listing

                  	
                    19

                     

                  
	
                    ARTICLE
      6

                  	
                    CONDITIONS

                  	
                    19

                     

                  
	
                    6.1

                  	
                    Conditions
      to Obligations of the Parties

                  	
                    19

                  
	
                    6.2

                  	
                    Conditions
      to Obligation of the Contributors

                  	
                    19

                  
	
                    6.3

                  	
                    Conditions
      to Obligation of the Partnership

                  	
                    20

                     

                  
	
                    ARTICLE
      7

                  	
                    PRODUCTION,
      PROCEEDS, EXPENSES AND TAX MATTERS

                  	
                    21

                     

                  
	
                    7.1

                  	
                    Division of Ownership

                  	
                    21

                  
	
                    7.2

                  	
                    Division
      of Expenses

                  	
                    22

                  
	
                    7.3

                  	
                    Recording
      and
      Transfer Expenses

                  	
                    22

                  
	
                    7.4

                  	
                    Taxes

                  	
                    22

                  
	
                    7.5

                  	
                    Casualty
      Loss

                  	
                    23

                  
	
                    7.6

                  	
                    Gas
      Imbalances

                  	
                    23

                     

                  
	
                    ARTICLE
      8

                  	
                    TERMINATION,
      AMENDMENT AND WAIVER

                  	
                    23

                     

                  
	
                    8.1

                  	
                    Termination

                  	
                    23

                  
	
                    8.2

                  	
                    Effect
      of Termination

                  	
                    24

                  
	
                    8.3

                  	
                    Amendment

                  	
                    24

                  
	
                    8.4

                  	
                    Waiver

                  	
                    24

                     

                  
	
                    ARTICLE
      9

                  	
                    INDEMNIFICATION

                  	
                    25

                     

                  
	
                    9.1

                  	
                    Survival
      of Representations, Warranties, Covenants and Agreements

                  	
                    25

                  
	
                    9.2

                  	
                    Indemnification

                  	
                    25

                  
	
                    9.3

                  	
                    Indemnification
      Procedures

                  	
                    26

                     

                  
	
                    ARTICLE
      10

                  	
                    MISCELLANEOUS

                  	
                    28

                     

                  
	
                    10.1

                  	
                    Notices

                  	
                    28

                  
	
                    10.2

                  	
                    Entire
      Agreement

                  	
                    29

                  
	
                    10.3

                  	
                    Binding
      Effect; Assignment; Third Party Benefit

                  	
                    29

                  
	
                    10.4

                  	
                    Severability

                  	
                    29

                  
	
                    10.5

                  	
                    Governing
      Law; Consent to Jurisdiction

                  	
                    29

                  
	
                    10.6

                  	
                    Descriptive
      Headings

                  	
                    30

                  
	
                    10.7

                  	
                    Gender

                  	
                    30

                  
	
                    10.8

                  	
                    References

                  	
                    30

                  
	
                    10.9

                  	
                    Counterparts

                  	
                    30

                  
	
                    10.10

                  	
                    Injunctive
      Relief

                  	
                    30

                     

                  
	
                    ARTICLE
      11

                  	
                    DEFINITIONS

                  	
                    31

                     

                  
	
                    11.1

                  	
                    Certain
      Defined Terms

                  	
                    31

                  
	
                    11.2

                  	
                    Certain
      Additional Defined Terms

                  	
                    35

                  
	 
      	 
      	 
      
	 
      	
                     
      

                     

                     

                     

                  	 
      
	
                     

                     

                    INDEX
      TO EXHIBITS AND SCHEDULES

                     

                     

                  	 
      
	
                    Exhibits

                     

                  	 
      	 
      
	
                    Exhibit
      1.2(a)(i)

                  	
                    Properties

                  	 
      
	
                    Exhibit
      1.3

                  	
                    Instruments
      of Conveyance

                  	 
      
	
                    Exhibit
      6.2(e)

                  	
                    Surface
      Use Agreement

                  	 
      
	 
      	 
      	 
      
	
                    Schedules

                     

                  	 
      	 
      
	 
      	
                    Partnership
      Schedules

                     

                  	 
      
	
                    Schedule
      2.5

                  	
                    Noncontravention

                  	 
      
	
                    Schedule
      2.6

                  	
                    Governmental
      Approvals

                  	 
      
	
                    Schedule
      2.7

                  	
                    Financial
      Statements

                  	 
      
	
                    Schedule
      2.8

                  	
                    Absence
      of Undisclosed Liabilities

                  	 
      
	
                    Schedule
      2.9

                  	
                    Absence
      of Certain Changes

                  	 
      
	
                    Schedule
      2.10

                  	
                    Compliance
      With Laws

                  	 
      
	 
      	 
      	 
      
	 
      	
                    Contributors
      Schedules

                     

                  	 
      
	
                    Schedule
      1.2(b)

                  	
                    Consideration
      for Contribution

                  	 
      
	
                    Schedule
      1.4

                  	
                    No
      Liabilities Assumed by the Partnership

                  	 
      
	
                    Schedule
      3.3

                  	
                    Noncontravention

                  	 
      
	
                    Schedule
      3.4

                  	
                    Governmental
      Approvals

                  	 
      
	
                    Schedule
      3.5

                  	
                    Title
      to the Properties

                  	 
      
	
                    Schedule
      3.6

                  	
                    Absence
      of Undisclosed Liabilities

                  	 
      
	
                    Schedule
      3.7

                  	
                    Absence
      of Certain Changes

                  	 
      
	
                    Schedule
      3.9

                  	
                    Compliance
      With Laws

                  	 
      
	
                    Schedule
      3.10

                  	
                    Legal
      Proceedings

                  	 
      
	
                    Schedule
      3.11

                  	
                    Permits

                  	 
      
	
                    Schedule
      3.12

                  	
                    Environmental
      Matters

                  	 
      
	
                    Schedule
      3.13

                  	
                    Ownership

                  	 
      
	
                    Schedule
      4.2(a)

                  	
                    Permitted
      Encumbrances

                  	 
      

          

        

      

    
      
        
        

      

      
        
          

        

      

      
        
        

      

    

    CONTRIBUTION
AND EXCHANGE AGREEMENT

     

    THIS
CONTRIBUTION AND EXCHANGE AGREEMENT (“Agreement”)
is executed as of May 15, 2009 by and among Dorchester Minerals, L.P., a
Delaware limited partnership (the “Partnership”),
Tiggator, Inc., a Texas corporation (“Tiggator”),
TRB Minerals, LP, a Texas limited partnership (“TRB
Minerals”), and West Fork Partners, L.P., a Texas limited partnership
(“West Fork
Partners”).  Tiggator, TRB Minerals and West Fork Partners are
sometimes referred to individually as a “Contributor”
and collectively as the “Contributors”.

     

    W I T N E
S S E T H:

     

    WHEREAS,
the Contributors own interests in certain oil and gas properties;

     

    WHEREAS,
the Contributors desire to contribute all of their interests in certain oil and
gas properties and other assets to the Partnership in exchange for Common Units;
and

     

    WHEREAS,
the Partnership desires to accept such interests in the oil and gas properties
and other assets owned by the Contributors and the Contributors desire to accept
such Common Units.

     

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

     

     

     

    ARTICLE
1

     

    CLOSING;
CONTRIBUTION

     

    1.1           Closing. The
closing of the transactions contemplated by this Agreement (the “Closing”)
shall take place at the offices of Thompson & Knight LLP, One Arts Plaza,
1722 Routh Street, Suite 1500, Dallas, Texas 75201, at 9:00 a.m., local time, on
June 30, 2009, or at such other time or place or on such other date as the
parties hereto shall agree (the “Closing
Date”).

     

    1.2           Contribution.  At
the Closing, and on the terms and subject to the conditions set forth in this
Agreement,

     

    (a)           the
Contributors shall assign, transfer, deliver and convey (collectively, “transfer”),
or cause to be transferred, to the Partnership, and the Partnership shall
acquire from the Contributors, all of the following (collectively, the “Properties”):

     

    (i)           all
of the Contributors’ undivided interests in and to the Oil and Gas and Other
Minerals in, on and under the properties, rights and interests (including
without limitation the Contributors’ interests in oil, gas and any mineral
leases, royalty interests, overriding royalty interests, fee

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    royalty
interests, fee mineral interests and other interests) described in Exhibit
1.2(a)(i),
attached hereto and made a part hereof;

     

    (ii)           all
of the Contributors’ interests in and to all Oil and Gas and/or Other Mineral
unitization, lease pooling and/or communitization agreements, declarations
and/or orders, and in and to the properties, rights and interests covered and
the Units created thereby, as it relates to the properties, rights and interests
described in Section
1.2(a)(i);

     

    (iii)           all
of the Contributors’ interests in and rights under all operating agreements,
production sales contracts, processing agreements, transportation agreements,
gas balancing agreements, farm-out and/or farm-in agreements, salt water
disposal agreements, area of mutual interest agreements and other contracts
and/or agreements which cover, affect, or otherwise relate to the properties,
rights and interests described in Sections
1.2(a)(i) or
(ii),
or to the operation of such properties, rights and interests or to the treating,
handling, storing, processing, transporting or marketing of Oil and Gas or Other
Minerals produced from (or allocated to) such properties, rights and interests,
as same may be amended or supplemented from time to time;

     

    (iv)           all
interests in all Oil and Gas and Other Minerals produced from or allocated to
the properties, rights and interests described in Sections
1.2(a)(i) or
(ii),
and any products processed or obtained therefrom (collectively, the “Production”),
together with (i) all proceeds of Production (regardless of whether the
severance of the Production to which such proceeds relates occurred on, before
or after the Reference Date, other than proceeds of Production that are
attributable to periods prior to the Reference Date and that are actually
received by a Contributor prior to the Reference Date), and (ii) all liens
and security interests securing payment of the proceeds from the sale of such
Production, including, but not limited to, those liens and security interests
provided for under statutes enacted in the jurisdiction in which the Properties
are located, or statutes made applicable to the Properties under federal law (or
some combination of federal and state law);

     

    (v)           all
interests in all payments received, or to be received, in lieu of production
from the properties, rights and interests described in Sections
1.2(a)(i) or
(ii)
(regardless of whether such payments accrued, and/or the events which gave rise
to such payments occurred, on, before or after the Reference Date, other than
payments attributable to periods prior to the Reference Date and that are
actually received by a Contributor prior to the Reference Date), including,
without limitation, (i) “take or pay” payments and similar payments,
(ii) payments received in settlement of or pursuant to a judgment rendered
with respect to take or pay or similar obligations or other obligations under a
production sales contract, (iii) payments received under a gas balancing
agreement or similar written

     

    2

    
 

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
 or oral
arrangement, as a result of (or received otherwise in settlement of or pursuant
to judgment rendered with respect to) rights held by a Contributor as a result
of such Contributor (and/or its predecessors in title) taking or having taken
less gas from lands covered by a property right or interest described in Sections
1.2(a)(i) or
(ii),
than its ownership of such property right or interest would entitle it to
receive and (iv) shut-in rental or royalty payments;

     

    (vi)           to
the extent legally transferable, all interests in all favorable contract rights
and choses in action (i.e., rights
to enforce contracts or to bring claims thereunder) related to the properties,
rights and interests described in Sections
1.2(a)(i) –
(v)
(regardless of whether the same arose, and/or the events which gave rise to the
same occurred on, before or after the Reference Date hereof, and further
regardless of whether same arise under contract, the law or in
equity);

     

    (vii)           an
amount of cash in immediately available funds equal to the cash
receipts received by the Contributors during the period beginning on the
Reference Date and ending on the Closing Date (the “Contributed
Cash”); and

     

    (viii)           all
rights, estates, powers and privileges appurtenant to the foregoing rights,
interests and properties, including without limitation executive rights (i.e., rights
to execute leases), rights to receive bonuses and delay rentals and rights to
grant pooling authority; and

     

    (b)           Prior
to the Closing, the Partnership shall designate American Stock
Transfer and Trust Company (the “Exchange
Agent”) for the purpose of issuing and delivering to the Contributors
1,600,000 Common Units (the “Subject
Units”) to be allocated among the Contributors in accordance with a
schedule to be provided by the Contributors to the Partnership no later than
five days prior to the Closing (the “Subject Units
Allocation Schedule”).  Promptly after the Closing, the
Partnership will send, or will cause the Exchange Agent to send, to each
Contributor (i) a certificate representing that number of whole Common Units
that such member has a right to receive pursuant to this Section
1.2(b)
and (ii) a Transfer Application for use in admission of the Contributors as
limited partners in the Partnership.  Each Contributor, upon delivery
to the Partnership of a properly completed Transfer Application, will be
admitted into the Partnership as a limited partner in accordance with the
Partnership Agreement.  Prior to such time, each such party shall have
the rights of an “Assignee” under the Partnership Agreement.

     

    (c)           The
Properties shall not include:

     

    (i)           Any
and all claims and causes of action made or currently maintained in West Fork Partners,
LP v. Chesapeake Exploration L.L.C.,

     

    3

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    et al;
Cause No. DC-08-11224 filed and currently pending in the 95th Judicial District
Court, Dallas
County, Texas;

     

    (ii)           Any
claims or causes of action: (a) for losses or damages not related to Production
or the payments therefor prior to the Reference Date; (b) arising out of acts or
omissions in violation of, or related to, the Existing Surface Use Agreements or
the Mitigation Banking Instrument Agreement; (c) for shut-in royalties paid
prior to the Reference Date which were incorrectly allocated amongst the
Contributors; and (d) for royalties paid prior to the Reference Datewhich were
incorrectly allocated amongst the Contributors;

     

    (iii)           The
rights reserved to the lessor which relate to the use of the surface of the
Properties described in that certain Paid-up Oil and Gas Lease, dated May 3,
2003 between West Fork Partners, L.P., Tigattor, Inc., Squaretop Partners, L.P.
and Dale Resources, L.L.C., including without limitation, the rights which inure
to the surface owner in Paragraphs 13, 14, 15, 17 (sic), 18 (sic), 19 (sic), 20
(sic), 21 (sic), 22 (sic), sub paragraphs 1, 2, 3, and 8 of 23 (sic), and 29;
and

     

    (iv)           The
Existing Surface Use Agreements.

     

    1.3           Instruments
of Conveyance.  In
order to effectuate the transfer of the Properties contemplated by Section
1.2,
at the Closing, each Contributor shall execute and deliver, or cause to be
executed and delivered to the Partnership, dated as of the Closing Date, the
deeds and conveyances substantially in the form attached hereto as Exhibit
1.3
(the “Conveyances”)
and such deeds (in reasonable and local customary form and describing the
Properties) and other bills of sale, certificates of title and other documents
or instruments of assignment, transfer, or conveyance as the Partnership shall
reasonably deem necessary or appropriate to vest in or confirm to the
Partnership good and marketable title to the Properties, which shall be
transferred at Closing.

     

    1.4           No
Liabilities Assumed by the Partnership.  Except
for the contracts set forth on Schedule 1.4 and all liabilities, commitments and
obligations included in and evidenced by the terms of such contracts, the
Partnership shall not assume or take title to the Properties subject to, or in
any way be liable or responsible for any liabilities, contracts, commitments and
other obligations of any Contributor.  Notwithstanding anything to the
contrary contained herein, the Partnership shall not be liable to any
Contributor for any claims relating to the matters set forth in Section 1.2(c)
for the acts or omissions of any other person or entity, including any lessee of
the Partnership.  The Partnership shall only be liable to any
Contributor for its own acts or omissions.

     

    1.5           Tax
Consequences.  For
United States federal income tax purposes, the transfer of the Properties to the
Partnership is intended to be treated as a contribution to the capital of the
Partnership by the Contributors under Section 721 of the Code in exchange for
the consideration described in Section 1.2(b).

     

    4

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ARTICLE
2

     

    REPRESENTATIONS
AND WARRANTIES OF THE PARTNERSHIP

     

     

    The
Partnership represents and warrants to the Contributors that:

     

    2.1           Organization and
Existence.  The
Partnership is a limited partnership duly organized, validly existing and in
good standing under the laws of the State of Delaware.  The
Partnership has full power and authority to own, lease or otherwise hold and
operate its properties and assets and to carry on its business as presently
conducted.  The Partnership is duly qualified and in good standing to
do business as a foreign limited partnership in each jurisdiction in which the
conduct or nature of its business or the ownership, leasing, holding or
operating of its properties makes such qualification necessary, except such
jurisdictions where the failure to be so qualified or in good standing,
individually or in the aggregate, would not have a Material Adverse Effect on
the Partnership.

     

    2.2           Governing
Documents.  The
Partnership Agreement has been duly authorized, executed and delivered by the
Partnership and is, and will be, a valid and legally binding agreement of,
enforceable against the Partnership in accordance with its terms; provided that
the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws relating to or affecting
creditors’ rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at
law).

     

    2.3           Capitalization
of the Partnership.

     

    (a)           All
of the outstanding Common Units have been duly authorized and validly issued in
accordance with the Partnership Agreement, are fully paid and
nonassessable.  Dorchester Minerals Management LP, a Delaware limited
partnership (the “Partnership
GP”), is the sole general partner of the Partnership.  On the
date hereof, the issued and outstanding limited partner interests of the
Partnership consist of 28,240,431 Common Units.

     

    (b)           The
Subject Units (and the limited partner interests represented thereby), will be
duly authorized in accordance with the Partnership Agreement, and, when issued
and delivered to the Contributors in accordance with the terms hereof, will be
validly issued, fully paid (to the extent required under the Partnership
Agreement) and nonassessable and will be issued free and clear of any lien,
claim or Encumbrance.

     

    (c)           Except
for the Subject Units or as described in the Partnership Agreement, there are no
preemptive rights or other rights to subscribe for or to purchase, nor any
restriction upon the voting or transfer of, any interests in the Partnership
pursuant to the Partnership Agreement or any other agreement or instrument to
which the Partnership is a party or by which it may be bound.  Neither
the offering nor the sale of the Subject Units, as contemplated by this
Agreement, gives rise to any rights for or relating to the registration of
any

     

    5

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     Common Units or other
securities of the Partnership.  Except for the Subject Units or as
described in the Partnership Agreement, no options, warrants or other rights to
purchase, agreements or  other obligations to issue, or rights to
convert any obligations into or exchange any securities for, Common Units or
other securities of the Partnership are outstanding.

     

    (d)           The
Subject Units when issued and delivered against payment therefor as provided
herein, will conform in all material respects to the description thereof
contained in the Partnership Agreement.  The Partnership has all
requisite power and authority to issue, sell and deliver the Subject Units in
accordance with and upon the terms and conditions set forth in this Agreement
and the Partnership Agreement.  As of the Closing Date, all
partnership action for the authorization, issuance, sale and delivery of the
Subject Units shall have been validly taken, and no other authorization by any
of such parties is required therefore.

     

    2.4           Authority
Relative to this Agreement.  The
Partnership has full partnership power and authority to execute and deliver this
Agreement and to consummate the transactions contemplated hereby.  The
execution, delivery and performance by the Partnership of this Agreement, and
the consummation by it of the transactions contemplated hereby, have been duly
authorized by the Partnership GP, and no other partnership proceedings on the
part of the Partnership are necessary to authorize the execution, delivery and
performance by the Partnership of this Agreement and the consummation by it of
the transactions contemplated hereby.  This Agreement has been duly
executed and delivered by the Partnership and constitutes, and each other
agreement, instrument or document executed or to be executed by the Partnership
in connection with the transactions contemplated hereby has been, or when
executed will be, duly executed and delivered by the Partnership and
constitutes, or when executed and delivered will constitute, a valid and legally
binding obligation of the Partnership enforceable against the Partnership in
accordance with their respective terms, except that such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors’ rights generally and
(ii) equitable principles which may limit the availability of certain
equitable remedies (such as specific performance) in certain
instances.

     

    2.5           Noncontravention.  Except as otherwise indicated on Schedule
2.5,
the execution, delivery and performance by the Partnership of this Agreement and
the consummation by it of the transactions contemplated hereby do not and will
not (i) conflict with or result in a violation of any provision of the
Partnership Agreement or the certificate of limited partnership of the
Partnership, (ii) conflict with or result in a violation of any provision
of, or constitute (with or without the giving of notice or the passage of time
or both) a default under, or give rise (with or without the giving of notice or
the passage of time or both) to any right of termination, cancellation or
acceleration under, any bond, debenture, note, mortgage, indenture, lease,
contract, agreement or other instrument or obligation to which the Partnership
is a party or by which the Partnership or any of its properties may be bound,
(iii) result in the creation or imposition of any Encumbrance upon the
properties of the Partnership or (iv) assuming compliance with the matters
referred to in  Section
2.6,
violate any Applicable Law binding upon the Partnership, except, in the case of
clauses (ii), (iii) and (iv) of this Section
2.5, for any such conflicts, violations, defaults,
terminations, cancellations, accelerations or Encumbrances which would not,
individually or in the aggregate, have a Material Adverse Effect on the
Partnership.

     

    6

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

              2.6           Governmental Approvals.  No consent, approval, order or
authorization of, or declaration, filing or registration with, any Governmental
Entity is required to be obtained or made by the Partnership in connection with
the execution, delivery or performance by the Partnership of this Agreement or
the consummation by it of the transactions contemplated hereby, other than
(i) compliance with any applicable state securities or takeover laws,
(ii) as set forth on Schedule
2.6, (iii) filings with Governmental Entities to occur
in the ordinary course following the consummation of the transactions
contemplated hereby, and (iv) such consents, approvals, orders or
authorizations which, if not obtained, and such declarations, filings or
registrations which, if not made, would not, individually or in the aggregate,
have a Material Adverse Effect on the Partnership.

     

    2.7           Financial
Statements.  Attached
as Schedule
2.7
or filed with the SEC Filings are copies of (i) the Partnership’s unaudited
consolidated balance sheet as of March 31, 2009 (the “Partnership Latest
Balance Sheet”), and the related unaudited consolidated statements of
income, partners’ equity and cash flows for the three-month period then ended
(the “Partnership
Unaudited Financial Statements”), and (ii) the Partnership’s audited
consolidated balance sheet as of December 31, 2008, and the related audited
consolidated statements of income, unitholders’ equity and cash flows for the
year then ended, and the notes and schedules thereto, together with the report
thereon of Grant Thornton LLP, independent certified public accountants (the
“Partnership
Audited Financial Statements”) (collectively, the “Partnership
Financial Statements”).  The Partnership Financial Statements
(A) have been prepared from the books and records of the Partnership in
conformity with generally accepted accounting principles applied on a basis
consistent with preceding years throughout the periods involved, and (B)
accurately and fairly present the Partnership’s consolidated financial position
as of the respective dates thereof and its consolidated results of operations
and cash flows for the periods then ended, except that the Partnership Unaudited
Financial Statements are subject to audit adjustments, which in the
Partnership’s reasonable judgment should not be material in the
aggregate.

     

    2.8           Absence of
Undisclosed Liabilities.  To
the Knowledge of the Partnership, as of the date of this Agreement, the
Partnership has no liability or obligation with respect to the property held by
the Partnership (whether accrued, absolute, contingent, unliquidated or
otherwise), except (i) liabilities reflected on the Partnership Latest
Balance Sheet, (ii) liabilities described in the notes accompanying the
Partnership Audited Financial Statements, (iii) liabilities which have
arisen since the date of the Partnership Latest Balance Sheet in the ordinary
course of business (none of which is a material liability for breach of
contract, tort or infringement), (iv) liabilities arising under executory
provisions of contracts entered into in the ordinary course of business (none of
which is a material liability for breach of contract), (v) liabilities disclosed
on Schedule
2.8
and (vi) other liabilities which, in the aggregate, are not material to the
Partnership.

     

    2.9           Absence of
Certain Changes.  As
of the date of this Agreement, except as disclosed on Schedule
2.9,
since the date of the Partnership Unaudited Financial Statements, (i) to
the Knowledge of the Partnership there has not been any Material Adverse Effect
on the Partnership or any event or condition that might reasonably be expected
to result in any Material Adverse Effect on the Partnership, (ii) the
business of the Partnership has been conducted only in its ordinary course of
business, (iii) the Partnership has not incurred any material liability,

     

    7

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    engaged
in any material transaction or entered into any material agreement outside the
ordinary course of
business, and (iv) the Partnership has not suffered any material loss,
damage, destruction or other casualty to any of its assets (whether or not
covered by insurance).

     

    2.10           Compliance
With Laws.  Except
as disclosed on Schedule
2.10,
to the Knowledge of the Partnership, the Partnership has complied in all
respects with all Applicable Laws, except for noncompliance with such Applicable
Laws which, individually or in the aggregate, do not and will not have a
Material Adverse Effect on the Partnership.  Except as disclosed on
Schedule
2.10,
the Partnership has not received any written notice from any Governmental
Entity, which has not been dismissed or otherwise disposed of, that the
Partnership has not so complied.  The Partnership has not been charged
or, to the Knowledge of the Partnership, threatened with, or under investigation
with respect to, any violation of any Applicable Law relating to any aspect of
the business of the Partnership, other than violations which, individually or in
the aggregate, do not and in the reasonable judgment of the Partnership will not
have a Material Adverse Effect on the Partnership.

     

    2.11           Brokerage
Fees.  The
Partnership has not retained any financial advisor, broker, agent or finder or
paid or agreed to pay any financial advisor, broker, agent or finder on account
of this Agreement or any transaction contemplated hereby.

     

    2.12           Listing.  The
outstanding Common Units are listed for trading on the NASDAQ Global Select
Market.

     

    2.13           SEC
Filings.  Since
January 1, 2008, the Partnership has filed with the Securities and Exchange
Commission all forms, reports, schedules, statements, and other documents
required to be filed by it under the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder, and all
other federal securities laws.  All forms, reports, schedules,
statements, and other documents (including all amendments thereto) filed by the
Partnership with the Securities and Exchange Commission since such date are
herein collectively referred to as the “SEC
Filings.”  The Partnership has delivered or made available to
the Contributors accurate and complete copies of all the SEC Filings in the form
filed by the Partnership with the Securities and Exchange
Commission.  The SEC Filings, at the time filed, complied in all
material respects with all applicable requirements of federal securities
laws.  To the Knowledge of the Partnership, none of the SEC Filings,
including, without limitation, any financial statements or schedules included
therein, at the time filed, contained any untrue statement of a material fact or
omitted to state any material fact required to be stated therein or necessary in
order to make the statements contained therein, in light of the circumstances
under which they were made, not misleading.  All material contracts of
the Partnership have been included in the SEC Filings, except for those
contracts not required to be filed pursuant to the rules and regulations of the
Securities and Exchange Commission.  The Partnership shall deliver or
make available to the Contributors as soon as they become available accurate and
complete copies of all forms, reports, and other documents furnished by it to
its limited partners generally or filed by it with the Securities and Exchange
Commission subsequent to the date hereof and prior to the Closing
Date.

     

    8

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ARTICLE
3

     

    REPRESENTATIONS
AND WARRANTIES

    OF THE
CONTRIBUTORS

     

     

     

    The
Contributors hereby jointly and severally represent and warrant to the
Partnership as follows:

     

    3.1           Organization
and Existence.  The
Contributors are duly organized, validly existing and in good standing under the
laws of the State of Texas.  The Contributors have full power and
authority to own, lease or otherwise hold and operate their properties and
assets and to carry on their businesses as presently conducted.  The
Contributors are duly qualified and in good standing to do business in each
jurisdiction in which the conduct or nature of their businesses or the
ownership, leasing or holding of its properties makes such qualification
necessary, except such jurisdictions where the failure to be so qualified or in
good standing, individually or in the aggregate, would not have a Material
Adverse Effect on any Contributor, the Properties or any Oil and Gas
Lease.

     

    3.2           Authority
Relative to this Agreement.  The
Contributors have full power and authority to execute and deliver this Agreement
and to consummate the transactions contemplated hereby.  The
execution, delivery and performance by the Contributors of this Agreement, and
the consummation by them of the transactions contemplated hereby, have been duly
authorized by all necessary action, and no other proceedings are necessary to
authorize the execution, delivery and performance by the Contributors of this
Agreement and the consummation by them of the transactions contemplated
hereby.  This Agreement has been duly executed and delivered by the
Contributors and constitutes, and each other agreement, instrument or document
executed or to be executed by the Contributors in connection with the
transactions contemplated hereby has been, or when executed will be, duly
executed and delivered by the Contributors and constitutes, or when executed and
delivered will constitute, a valid and legally binding obligation of the
Contributors enforceable against the Contributors in accordance with their
respective terms, except that such enforceability may be limited by
(i) applicable bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting creditors’ rights generally and (ii) equitable
principles which may limit the availability of certain equitable remedies (such
as specific performance) in certain instances.

     

    3.3           Noncontravention.  Except
as otherwise indicated on Schedule
3.3,
the execution, delivery and performance by the Contributors of this Agreement
and the consummation by them of the transactions contemplated hereby, do not and
will not (i) conflict with or result in a violation of any provision of the
respective governing instruments of the Contributors, (ii) conflict with or
result in a violation of any provision of, or constitute (with or without the
giving of notice or the passage of time or both) a default under, or give rise
(with or without the giving of notice or the passage of time or both) to any
right of termination, cancellation or acceleration under, any bond, debenture,
note, mortgage, indenture, lease, contract, agreement or other instrument or
obligation to which any Contributor is a party or by which any Contributor or
any of the Properties may be bound, (iii) result in the creation or
imposition of any Encumbrance upon the Properties or (iv) assuming
compliance with the matters referred to in Section
3.4,
violate any Applicable Law binding upon the Contributors, 

     

    9

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    except in
the case of clauses (ii), (iii) and (iv)
of this Section
3.3,
for any such conflicts, violations, defaults, terminations, cancellations,
accelerations or Encumbrances which would not, individually or in the aggregate,
have a Material Adverse Effect on any Contributor or the
Properties.

     

    3.4           Governmental
Approvals.  No
consent, approval, order or authorization of, or declaration, filing or
registration with, any Governmental Entity is required to be obtained or made by
the Contributors in connection with the execution, delivery or performance by
the Contributors of this Agreement or the consummation by them of the
transactions contemplated hereby, other than (i)  compliance with any
applicable state securities or takeover laws, (ii) as set forth on Schedule
3.4,
(iii) filings with Governmental Entities to occur in the ordinary course
following the consummation of the transactions contemplated hereby and (iv) such
consents, approvals, orders or authorizations which, if not obtained, and such
declarations, filings or registrations which, if not made, would not,
individually or in the aggregate, have a Material Adverse Effect on the
Contributors or the Properties.

     

    3.5           Title to
the Properties.  The
Contributors have good and marketable title to all of the Properties, free and
clear of all Encumbrances other than Encumbrances set forth on Schedule
3.5.  Except
for those interests expressly identified on Schedule
3.5,
the Properties do not include any mineral or royalty interest of less than a
perpetual duration.

     

    3.6           Absence of
Undisclosed Liabilities.  As
of the date of this Agreement, the Contributors have no liability or obligation
with respect to the Properties (whether accrued, absolute, contingent,
unliquidated or otherwise), except as disclosed on Schedule
3.6.

     

    3.7           Absence of
Certain Changes.  As
of the date of this Agreement, except as disclosed on Schedule
3.7,
since the Reference Date, (i) there has not been any Material Adverse
Effect on any Contributor, the Properties or, to the Knowledge of the
Contributors, on any Oil and Gas Lease, or any event or condition that might
reasonably be expected to result in any Material Adverse Effect on any
Contributor, the Properties or, to the Knowledge of the Contributors, on any Oil
and Gas Lease, (ii) the businesses of the Contributors have been conducted
only in their ordinary course of business, (iii) the Contributors have not
incurred any material liability, engaged in any material transaction or entered
into any material agreement outside the ordinary course of business with respect
to the Properties, (iv) the Contributors have not suffered any material
loss, damage, destruction or other casualty to any of the Properties (whether or
not covered by insurance), (v) the Contributors have not taken any of the
actions set forth in Section
4.2
except as permitted thereunder and (vi) to the Knowledge of the Contributors,
the Oil and Gas Leases have not suffered any material loss, damage, destruction
or other casualty.

     

    3.8           Tax
Matters.  As
of the Closing Date, all Tax Returns required to be filed with respect to the
Properties, including those relating to Property Taxes, severance Taxes and any
other Taxes imposed on or with respect to the Properties and any production
therefrom, have been timely filed with the applicable Taxing authority, except
in such cases where the failure to file would not have a Material Adverse Effect
on the Properties, and all Taxes required to be shown thereon have been
paid.  There are no liens for Taxes (other than for taxes not yet due
and payable) upon any of the Properties.  There has been no issue
raised or adjustment proposed (and 

     

    10

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    to the
Knowledge of the Contributors, none is pending) by the IRS or any other Taxing
authority in
connection with any of such Tax Returns, nor has any Contributor received any
written notice from the IRS or any such other taxing authority that any such Tax
Return is being audited or may be audited or examined.  No Contributor
has agreed to the extension or waiver of any statute of limitations on the
assessment or collection of any such Tax or with respect to any such Tax
Return.  No Contributor is a “foreign person” within the meaning of
Section 1445 (or similar provisions) of the Code (i.e., no Contributor is a
disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Treasury
Regulations and no Contributor is a non-resident alien, foreign corporation,
foreign partnership, foreign trust or foreign estate as those terms are defined
in the Code and the Treasury Regulations).

     

    3.9           Compliance
with Laws.  Except
as disclosed on Schedule
3.9,
the Contributors have complied in all respects with all Applicable Laws relating
to the ownership or, to the Knowledge of the Contributors, the operation of the
Properties, except for noncompliance with such Applicable Laws which,
individually or in the aggregate, do not and will not have a Material Adverse
Effect on any Contributor or the Properties.  Except as disclosed on
Schedule
3.9,
the Contributors have not received any written notice from any Governmental
Entity, which has not been dismissed or otherwise disposed of, that the
Contributors have not so complied.  The Contributors have not, and to
the Knowledge of the Contributors, the Lessees have not, been charged or, to the
Knowledge of the Contributors, threatened with, or under investigation with
respect to, any violation of any Applicable Law relating to any aspect of the
ownership or operation of the Properties, other than violations which,
individually or in the aggregate, do not and will not have a Material Adverse
Effect on any Contributor or the Properties.

     

    3.10           Legal
Proceedings.  Except
as disclosed on Schedule
3.10,
there are no Proceedings pending or, to the Knowledge of the Contributors,
threatened against or involving any Contributor, the Properties, the Oil and Gas
Leases or the rights of the Contributors with respect to the
Properties.  The Contributors are not subject to any judgment, order,
writ, injunction, or decree of any Governmental Entity which has had or is
reasonably likely to materially affect title to or the value of any of the
Properties.  There are no Proceedings pending or, to the Knowledge of
the Contributors, threatened against the Contributors or the Properties (or any
Oil and Gas Lease), seeking to restrain, prohibit, or obtain damages or other
relief in connection with this Agreement or the transactions contemplated hereby
or which could reasonably be expected to affect the Contributors’ ability to
consummate the transactions contemplated hereby.

     

    3.11           Permits.  To
the Knowledge of the Contributors, all Lessees hold all Permits necessary or
required for the conduct of their businesses as currently conducted, except for
Permits the absence of which do not and will not have a Material Adverse Effect
on any Contributor, the Properties or any Oil and Gas Lease.  Each of
such Permits is in full force and effect and the Contributors and such Lessees
are in compliance with each such Permit, except in such respects as would not
reasonably be expected to have a Material Adverse Effect on any Contributor, the
Properties or any Oil and Gas Lease.  Except as disclosed on Schedule
3.11,
the Contributors and the Lessees have not received any written notice from any
Governmental Entity and no Proceeding is pending or, to the Knowledge of the
Contributors and the Lessees, threatened with respect to any alleged failure by
the Contributors or the Lessees to have any 

     

    11

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Permit
the absence of which would have a Material Adverse Effect on any Contributor,
the Properties or the Oil and Gas Leases.

     

     

     

               
3.12           Environmental Matters.  Except
as disclosed on Schedule
3.12,
to the Knowledge of the Contributors:

     

    (a)           There
are no material violations of Applicable Environmental Laws that arise from any
Environmental Condition on or at (i) the real properties to which the Properties
relate (the “Real
Properties”), (ii) the Properties, or (iii) the operations under any Oil
and Gas Lease, which have not been corrected or Remediated, and for which all
applicable fines or penalties have not been paid in full, in compliance with the
requirements of any Governmental Entity having jurisdiction, or that would
otherwise have a Material Adverse Effect.

     

    (b)           None
of the Contributors have received any notifications of any Proceedings pending
or threatened against any Contributor or any of the Real Properties or the
Properties, alleging that any Contributor or any of the Real Properties or the
Properties are in violation of, or otherwise subject to liability under, any
Applicable Environmental Law, other than any such notifications that any
Contributor has resolved in accordance with Applicable Environmental
Laws.

     

    (c)           None
of the Contributors have received any notice of any investigation or inquiry or
request for information regarding the Real Properties, the Properties, any other
property, or the operations under any Oil and Gas Lease from any Governmental
Entity under any Applicable Environmental Law, including, without limitation,
CERCLA and RCRA.

     

    (d)           As
of the date hereof, (i) neither the Real Properties nor the Properties have been
used for Disposal of any Hazardous Materials, (ii) no Release of Hazardous
Materials has occurred on the Real Properties or the Properties, and (iii) no
condition otherwise exists on any Real Properties or Properties, such that any
Real Properties or any Properties would be subject to any remedial obligations
under any Applicable Environmental Laws, which obligations would have a Material
Adverse Effect on any Contributor, the Properties or the Oil and Gas
Leases.

     

    (e)           There
has been no claim against any Contributor asserting Environmental Liability or
an other liability for exposure of any Person or property (such as livestock,
cattle, horses, pigs, goats, sheep and chickens, but not real property) to
Hazardous Materials in connection with any of the Real Properties, the
Properties or under any Oil and Gas Leases that any Contributor or the
responsible Person has not resolved.

     

    (f)           There
are no Environmental Liabilities resulting from any breach of Applicable
Environmental Laws pertaining to the use or operation on the Real Properties or
the Properties or under the Oil and Gas Leases or otherwise on or 

     

    12

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      prior to
Closing Date that the Contributors or the responsible Person has not resolved or
that would have a
Material Adverse Effect.

    

     

    (g)           All
of the Real Properties and the Properties are in compliance with all Applicable
Environmental Laws; all Contributors have complied with all Applicable
Environmental Laws with respect to the Properties and the Oil and Gas Leases;
and all operations on the Real Properties or related to the Properties or under
the Oil and Gas Leases are in compliance with the Applicable Environmental
Laws.

     

    (h)           All
material Permits required under Applicable Environmental Laws that are necessary
to the operation of the Properties under the Oil and Gas Leases or otherwise, as
currently operated have been obtained and are in full force and effect, and the
Properties have been operated at all time in material compliance with such
Permits.

     

    (i)           Contributors
either have made, or will, immediately after the execution of this Agreement,
make available to the Partnership all environmental assessment, investigatory,
and audit reports, studies, analyses, and correspondence relating to the
Properties or the Real Properties that are in actual or constructive control of
any Contributor and addressing Releases or threatened Releases, Remediations,
Environmental Liabilities, Environmental Conditions, or violations of Applicable
Environmental Laws.

     

    3.13           Proceeds of
Production.  All
proceeds of production from the Properties which have been paid to the
Contributors are set forth on Exhibit
3.13
by month, payee, and amount paid.

     

    3.14           Commitments.  The
Contributors have incurred no expenses, and have made no commitments to make
expenditures (and the Contributors have not entered into any agreements that
would obligate the Partnership to make expenditures), in connection with (and no
other obligations or liabilities have been incurred which would adversely
affect) the ownership or operation of the Properties after the Closing
Date.

     

    3.15           No
Alienation.  Within
120 days of the date hereof, the Contributors have not sold, assigned, conveyed,
or transferred or contracted to sell, assign, convey or transfer any right or
title to, or interest in, the Properties.

     

    3.16           Make-Up
Rights.  No
Contributor and, to the Knowledge of the Contributors, no other party, has
received prepayments (including, but not limited to, payments for gas not taken
pursuant to “take-or-pay” or similar arrangements) for any oil or gas produced
from the Properties or related to the Oil and Gas Leases as a result of which
the obligation does or may exist to deliver oil or gas produced from the
Properties after the Reference Date without then receiving payment (or without
then receiving full payment) therefore or to make repayments in
cash.

     

    3.17           Imbalances.  To
the Knowledge of the Contributors, there are no imbalances among the owners of
the interests in any wells and units related to the Properties that

     

    13

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
could
have a Material Adverse Effect on the net revenues that the Partnership will be
entitled to receive from the Properties from the then current month’s
production.

    

     

     

            3.18           Basic
Documents.  To
the Knowledge of the Contributors:

     

    (a)           The
Contributors are not in breach or default (and no situation exists which with
the passing of time or giving of notice would create a breach or default) of
their obligations under any Basic Documents, and (ii) no breach or default by
any third party (or situation which with the passage of time or giving of notice
would create a breach or default) exists under any Basic Documents, to the
extent such breach or default (whether by the Contributors or such third party)
could reasonably be expected to have a Material Adverse Effect on the Properties
after the Closing Date;

     

    (b)           All
payments (including all delay rentals, royalties and shut-in royalties) owing
under Basic Documents have been and are being made (timely, and before the same
became delinquent) by third parties where the non-payment of same by a third
party could materially and adversely affect the ownership, exploration,
development, operation, maintenance, value or use of any of the Properties after
the Closing Date; and

     

    (c)           No
Basic Document involves an assumption by the Partnership or its successors of
any current liabilities which would be required to be set forth on a balance
sheet of any of the Contributors in accordance with GAAP.

     

    For the
purposes of the representations contained in this Section
3.18
(and without limitation of such representations), the non-payment of an amount,
or non-performance of an obligation, where such non-payment, or non-performance,
could result in the forfeiture or termination of rights of the Contributors or
any Lessee under a Basic Document, shall be considered material.

     

    3.19           Commitments,
Abandonments or Proposals.  The
Contributors have incurred no expenses, and have made no commitments to make
expenditures (including the Contributors have not entered into any agreements
that would obligate the Partnership to make expenditures), in connection with
(and no other obligations or liabilities have been incurred which would
adversely affect) the ownership of the Properties by the Partnership after the
Closing Date.

     

    3.20           Area of
Mutual Interest and Other Agreements; Tax
Partnerships.  No
Property is subject to any area of mutual interest agreements.  No
Property is subject to any farm-out or farm-in agreement under which any party
thereto is entitled to receive assignments not yet made, or could earn
additional assignments after the Closing Date.  No Property is subject
to (or has related to it) any tax partnership.

     

    3.21           Payment of
Expenses.  All
expenses relating to the ownership or, to the Knowledge of the Contributors, the
operation of the Properties, have been, and are being, paid (timely, and before
the same become delinquent) by the Contributors, except such expenses and

     

    14

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
taxes as
are disputed in good faith by the Contributors and for which an adequate
accounting reserve has been established by the Contributors.

    

     

    3.22           Oral
Contracts.  The
Contributors have not entered into any oral contract with respect to the
Properties.

     

     

              3.23           Preferential Rights and Consents to
Assign.  There
are no consents to assignment or waivers of preferential rights to purchase that
must be obtained from third parties in order for the Contributors to consummate
the transactions contemplated by this Agreement without violating or breaching a
duty or obligation of the Contributors.

     

    3.24           No Participating
Minerals.  To
the Contributors’ Knowledge, the Properties do not include any unleased or other
mineral interest where the Contributors have agreed to bear a share of drilling,
operating or other costs as a participating mineral owner.

     

    3.25           Brokerage
Fees.  The
Contributors have not retained any financial advisor, broker, agent or finder or
paid or agreed to pay any financial advisor, broker, agent or finder on account
of this Agreement or any transaction contemplated hereby.

     

    3.26           Investment
Intent.Each
Contributor is an “accredited investor” within the meaning of Securities and
Exchange Commission Rule 501 of Regulation D, as presently in
effect.

     

    (b)           Each
Contributor is acquiring the Subject Units for its own account for investment
and not with a view to, or for sale or other disposition in connection with, any
public distribution of all or any part thereof.

     

    (c)           Each
Contributor has carefully reviewed this Agreement, the SEC Filings, the
Partnership Agreement and other documentation relating to the Partnership and
have had such opportunity as deemed necessary by such Contributor and its
advisors and affiliates to ask questions of the Partnership and their
affiliates, officers and employees to enable such Contributor to make an
informed investment decision concerning the receipt of the Subject Units
pursuant to the transactions contemplated by this Agreement, the operation of
the Partnership, and the investment risks associated with such Contributor’s
investment in the Partnership.

     

    (d)           The
Contributors, by entering into this Agreement, (i) request admission as
limited partners of the Partnership and agree to comply with, and be bound by,
and hereby execute, the Partnership Agreement, (ii) represent and warrant
that the Contributors have all right, power and authority and the capacity
necessary to enter into the Partnership Agreement, (iii) appoint the
general partner of the Partnership and, if a liquidator shall be appointed, the
liquidator of the Partnership as the Contributors’ attorney-in-fact to execute,
swear to, acknowledge and file any document, including, without limitation, the
Partnership Agreement and any amendment thereto necessary or appropriate for
such Contributors’ admission as a limited partner and as a party to the
Partnership Agreement, (iv) gives the power of attorney provided for in the
Partnership 

     

    15

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
Agreement
and (v) makes the waivers and gives the consents and approvals contained in the
Partnership Agreement.

    

     

            3.27           Disclosure.

     

    (a)           The
Contributors have provided the Partnership with a copy of all Records that the
Contributors have received since September 30, 2008.

     

     

     

    ARTICLE
4

     

     

    CONDUCT
OF THE CONTRIBUTORS PENDING CLOSING;

    CERTAIN
ACTIONS RELATING TO CLOSING

     

     

     

    4.1           Conduct and
Preservation of Business of the Contributors.  The
Contributors hereby covenant and agree with the Partnership that, except as
contemplated by this Agreement, during the period from the date hereof to the
Closing Date, the Contributors (i) shall conduct their operations according
to the ordinary course of business and in material compliance with all
Applicable Laws and (ii) shall use their reasonable best efforts to
preserve, maintain and protect the Properties.

     

    4.2           Restrictions
on Certain Actions of the Contributors.  Except
as otherwise expressly provided in this Agreement, prior to the Closing Date, no
Contributor shall, without the consent of the Partnership (which consent shall
not be unreasonably withheld):

     

    (a)           mortgage
or pledge any of the Properties or create or suffer to exist any Encumbrance
thereupon, other than Permitted Encumbrances as set forth on Schedule
4.2(a);

     

    (b)           sell,
lease, transfer or otherwise dispose of, directly or indirectly, any of the
Properties, except in the ordinary course of business;

     

    (c)           amend,
modify or change any existing lease or contract with respect to the Properties,
other than in the ordinary course of the business;

     

    (d)           waive,
release, grant or transfer any rights of value relating to the Properties, other
than in the ordinary course of business;

     

    (e)           delay
payment of any account payable or any known or accrued liability relating to the
Properties beyond the earlier of thirty (30) days or its due date or the date
when such liability would have been paid in the ordinary course of business,
unless such delay is due to a good faith dispute as to liability or
amount;

     

    (f)           permit
any current insurance or reinsurance or continuation coverage to lapse if such
policy insures risks, contingencies or liabilities (including product liability)
related to the Properties other than in connection with any advance renewal or
replacement of an existing insurance policy;

     

     

    16

    
       

      
        
          

        

      

      
        
        

      

    

     

    (g)           except
as set forth in this Section
4.2,
take any action which would make any of the representations or warranties of the
Contributors untrue as of any time from
the date of this Agreement to the Closing Date, or would result in any of the
conditions set forth in this Agreement not being satisfied;

     

    (h)           merge
into or with or consolidate with any other Person or acquire all or
substantially all of the business or assets of any other Person; or

     

    (i)           agree
in writing or otherwise to take any of the actions described in this Section
4.2.

     

     

     

    ARTICLE
5

     

    ADDITIONAL
AGREEMENTS

     

     

     

    5.1           Access to
Information;
Confidentiality.  Each
Contributor hereby agrees to provide the Partnership copies of the Records (i)
in its possession or control, or (ii) received by it subsequent to the date
hereof and prior to the Closing Date as soon as reasonably practicable after the
date of receipt of such Records.  From the date hereof through the
Closing, each Contributor shall afford the Partnership and their representatives
reasonable access to the offices and personnel of such Contributor, and to the
Properties and the Records during normal business hours, in order that the
Partnership may have a full opportunity to make such investigations as it
desires with respect to the Properties; provided that such investigation shall
be upon reasonable notice and shall not unreasonably disrupt the personnel and
operations of such Contributor or impede the efforts of such Contributor to
comply with their other obligations under this Agreement.  Each party
shall hold in confidence all such information on the terms and subject to the
conditions contained in that certain Mutual Nondisclosure Agreement dated
September 22, 2008 by and between the Partnership and Wallace L. Hall,
Jr.

     

    5.2           Notification
of Certain Matters.   Each
party shall give prompt notice to the other parties of (i) any fact or
circumstance which would be likely to cause any representation or warranty of
such party contained in this Agreement to be untrue or inaccurate in any
material respect and (ii) any material failure of such party to comply with
or satisfy any covenant, condition or agreement to be complied with or satisfied
by it hereunder.  The delivery of any notice pursuant to this Section
5.2
shall not be deemed to (i) modify the representations or warranties
hereunder of the party delivering such notice, (ii) modify the conditions
set forth in ARTICLE
6 or (iii) limit or otherwise affect the remedies available
hereunder to any party receiving such notice.

     

    5.3           Reasonable
Best Efforts.  Each
party hereto agrees that it will not voluntarily undertake any course of action
inconsistent with the provisions or intent of this Agreement and will use its
reasonable best efforts to take, or cause to be taken, all action and to do, or
cause to be done, all things reasonably necessary, proper or advisable under
Applicable Laws to consummate the transactions contemplated by this Agreement,
including, without limitation, (i) cooperating in determining whether any
other consents, approvals, orders, authorizations, waivers, declarations,
filings or registrations of or with any Governmental Entity or third party are
required in connection with the consummation of the transactions contemplated

     

    17

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
hereby,
(ii) using its reasonable best efforts to obtain any such consents,
approvals, orders, authorizations and waivers and to effect any such
declarations, filings and registrations, (iii) using its reasonable
best
efforts to cause to be lifted or rescinded any injunction or restraining order
or other order adversely affecting the ability of the parties to consummate the
transactions contemplated hereby, (iv) using its reasonable best efforts to
defend, and to cooperate in defending, all lawsuits or other legal proceedings
challenging this Agreement or the consummation of the transactions contemplated
hereby and (v) executing of any additional instruments necessary to consummate
the transactions contemplated hereby.

    

     

    5.4           Public
Announcements.  The
Partnership may from time-to-time make such press releases or otherwise make
public statements with respect to this Agreement of the transactions
contemplated hereby as the Partnership deems appropriate, in its sole
discretion.  No Contributor shall issue any press release or otherwise
make any public statement with respect to this Agreement or the transactions
contemplated hereby without the prior written consent of the
Partnership.

     

    5.5           Amendment
of Schedules.  Each
party hereto agrees that, with respect to the representations and warranties of
such party contained in this Agreement, such party shall have the continuing
obligation until the Closing to supplement or amend the Schedules hereto with
respect to any matter hereafter discovered which, if known at the date of this
Agreement, would have been required to be set forth or described in the
Schedules.  For all purposes of this Agreement, including without
limitation for purposes of determining whether the conditions set forth in Sections
6.2(a) and
6.3(a)
have been fulfilled, the Schedules hereto shall be deemed to include only that
information contained therein on the date of this Agreement and shall be deemed
to exclude all information contained in any supplement or amendment
thereto.

     

    5.6           Fees and
Expenses.  All
fees and expenses, including fees and expenses of counsel, financial advisors
and accountants, incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such fee or expense,
whether or not the Closing shall have occurred.

     

    5.7           Tax
Reporting.  The
Partnership and the Contributors agree, to the extent allowable, to report the
contribution to the Partnership by the Contributors of the Properties as a
non-taxable contribution under Section 721 of the Code.

     

    5.8           Tax
Disclosure.  Except
as reasonably necessary to comply with applicable securities laws and
notwithstanding anything in this Agreement to the contrary or in any other
agreement to which the Partnership or any Contributor is bound, the parties
hereto (and each employee, representative, or other agent of any of the parties)
are expressly authorized to disclose to any and all persons, without limitation
of any kind, the U.S. federal income “tax treatment” and “tax structure” (as
those terms are defined in Sections 1.6011-4(c)(8) and (9) of the Treasury
Regulations, respectively) of the transactions contemplated by this Agreement
and all materials of any kind (including opinions or other tax analyses) that
are provided to such parties relating to such “tax treatment” and “tax
structure” of the transactions contemplated by this Agreement.  For
these purposes, “tax structure” is limited to facts relevant to the U.S. federal
income tax treatment of the transaction described herein.

     

    18

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.9           Post-Closing
Assurances and Access to Records.  After
the Closing, the Contributors and the Partnership shall execute, acknowledge and
deliver or cause to be executed, acknowledged
and delivered such instruments and take such other action as may be necessary or
advisable to carry out their obligations under this Agreement and under any
exhibit, document, certificate or other instrument delivered pursuant
hereunto.  After the Closing, each Contributor shall grant the
Partnership and its authorized representatives reasonable access (including
copying privileges at such Contributor’s sole cost and expense) during such
Contributor’s normal business hours to all Records of such Contributor
pertaining to the Properties and not included in the Properties, wheresoever
such Records may be located for the purpose of prosecuting or defending claims,
lawsuits or other proceedings, for audit purposes, or to comply with legal
process, rules, regulations or orders of any board, agency, tribunal or
government.

     

    5.10           NASDAQ
Listing.  The
Partnership shall use its reasonable efforts to cause the Subject Units to be
approved for listing on the NASDAQ Global Select Market.

     

     

     

    ARTICLE
6

     

    CONDITIONS

     

     

     

    6.1           Conditions
to Obligations of the Parties.  The
obligations of the parties to consummate the transactions contemplated by this
Agreement shall be subject to the fulfillment on or prior to the Closing Date of
each of the following conditions:

     

    (a)           Legal
Proceedings.  No preliminary or permanent injunction or other
order, decree, or ruling issued by a Governmental Entity, and no statute, rule,
regulation, or executive order promulgated or enacted by a Governmental Entity,
shall be in effect which restrains, enjoins, prohibits, or otherwise makes
illegal the consummation of the transactions contemplated hereby; and no
Proceeding by a Governmental Entity shall have been commenced or threatened (and
be pending or threatened on the Closing Date) against the Partnership, any
Contributor or the Properties, or any of their respective affiliates,
associates, directors, or officers seeking to prevent or challenging the
transactions contemplated hereby.

     

    (b)           Consents.  All
consents, approvals, orders, authorizations and waivers of, and all
declarations, filings and registrations with, third parties (including
Governmental Entities) required to be obtained or made by or on the part of the
parties hereto, or otherwise reasonably necessary for the consummation of the
transactions contemplated hereby, shall have been obtained or made, and all
thereof shall be in full force and effect at the time of Closing, unless the
failure to obtain or make any such consent, approval, order, authorization,
waiver, declaration, filing or registration would not have a Material Adverse
Effect on the Partnership.

     

    6.2           Conditions
to Obligation of the Contributors.  The
obligation of the Contributors to consummate the transactions contemplated by
this Agreement shall be subject to the fulfillment on or prior to the Closing
Date of each of the following conditions:

     

    19

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (a)           Representations
and Warranties.   All the representations and warranties
of the Partnership contained
in this Agreement and in
any agreement,  instrument  or  document  delivered pursuant hereto or in
connection herewith
on or prior to the Closing Date, shall be true and correct in all material
respects on and as of the Closing Date as if made on
and as of such date, except as affected by transactions permitted by this
Agreement and except to the extent that any such
representation or warranty is made as of a specified date, in which case such
representation or warranty shall have been true and correct in all
material respects as of such specified date.

     

    (b)           Covenants
and Agreements.  The Partnership shall have performed and
complied with in all material respects all covenants and agreements required by
this Agreement to be performed or complied with by it on or prior to the Closing
Date.

     

    (c)           No Material
Adverse Effect.  Since the date of this Agreement, there shall
not have occurred any Material Adverse Effect with respect to the
Partnership.

     

    (d)           Certificates.  The
Contributors shall have received a certificate from the Partnership, dated the
Closing Date, representing and certifying that the conditions set forth in Sections
6.1 and
6.2
have been fulfilled and a certificate as to the incumbency of the officer(s)
executing this Agreement on behalf of the Partnership.

     

    (e)           Surface Use
Agreement.  The Partnership shall have executed and delivered
to the Contributors the Surface Use Agreement in the form attached hereto as
Exhibit 6.2(e)
(the “Surface
Use Agreement”).

     

    6.3           Conditions
to Obligation of the Partnership.  The
obligation of the Partnership to consummate the transactions contemplated by
this Agreement shall be subject to the fulfillment on or prior to the Closing
Date of each of the following conditions:

     

    (a)           Representations
and Warranties.   All the representations and warranties
of the Contributors contained in this Agreement and in any agreement,
instrument  or document delivered pursuant hereto or in connection
herewith on or prior to the Closing Date, shall be true and correct in all
material respects on and as of the Closing Date as if made on and as of such
date, except as affected by transactions permitted by this Agreement and except
to the extent that any such representation or warranty is made as of a specified
date, in which case such representation or warranty shall have been true and
correct in all material respects as of such specified date.

     

    (b)           Covenants
and Agreements.  Each Contributor shall have performed and
complied with in all material respects all covenants and agreements required by
this Agreement to be performed or complied with by it on or prior to the Closing
Date.

     

    20

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (c)           No Material
Adverse Effect.  Since the date of this Agreement, there shall
not have occurred any Material Adverse Effect with respect to the
Properties.

     

    (d)           Certificates.  The
Partnership shall have received a certificate from the Contributors, dated the
Closing Date, representing and certifying that the conditions set forth in Sections
6.1 and
6.3
have been fulfilled and a certificate as to the incumbency of the officer(s)
executing this Agreement on behalf of each Contributor.

     

    (e)           Conveyances.  The
Contributors shall have executed and delivered to the Partnership the
Conveyances and such deeds (in reasonable and local customary form and
describing the transferred Properties) and other bills of sale, certificates of
title and other documents or instruments of assignment, transfer, or conveyance
as the Partnership shall reasonably deem necessary or appropriate to vest in or
confirm to the Partnership good and marketable title to such Properties, which
shall be transferred at the Closing.

     

    (f)           Surface Use
Agreement.  The Contributors and Surface Owners shall have
executed and delivered to the Partnership the Surface Use
Agreement.

     

    (g)           Common Unit
Lockup Agreement.  The Persons listed on the Subject Units
Allocation Schedule shall have executed and delivered to the Partnership the
Common Unit Lockup Agreement in the form attached hereto as Exhibit 6.3(g).

     

    (h)           Due
Diligence.  In consideration of the time and expense to be
incurred by the Partnership in connection with the transactions contemplated
hereby, the due diligence investigation of the Partnership with respect to the
Properties shall have been completed to the satisfaction of the Partnership, in
its sole discretion, including but not limited to confirmation of the accuracy
of information described in Section
3.13
of this Agreement.

     

    (i)           Contributed
Cash.  The Contributors shall have delivered the Contributed
Cash to the Partnership.

     

     

     

    ARTICLE
7

     

    PRODUCTION,
PROCEEDS, EXPENSES AND TAX MATTERS

     

     

     

    7.1           Division of
Ownership.  After
the Closing, all Production from the Properties, together with (i) the proceeds
of such Production and any other amounts attributable to the Properties and (ii)
any other proceeds received by any Contributor attributable to the Properties,
from whatever source, including, without limitation, any bonuses, delay rentals,
royalty payments, overriding royalty payments and shut-in royalty payments,
other than Production attributable to periods prior to the Reference Date and
for which the Contributor has received payment prior to the Reference Date
(collectively herein called the “Partnership-Entitled
Production and Proceeds”), shall be owned by the Partnership, and should
any 

     

    21

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
Contributor
receive
payment for any such Partnership-Entitled Production and Proceeds, such
Contributor shall within five (5) Business Days after the end of each calendar
month during which any such payments are received, either endorse and deliver to
the Partnership any checks received by such Contributor attributable to such
Partnership-Entitled Production and Proceeds or transfer any cash proceeds by
wire transfer to an account designated by the Partnership.  The
Partnership shall prepare letters in lieu of division or transfer orders and at
Closing the Contributors shall execute and deliver such letters in lieu to each
purchaser of Oil and Gas and Other Minerals.  In the event such
letters cannot reasonably be delivered at Closing, the Contributors shall
cooperate with the Partnership in delivering such letters after
Closing.

    

     

    7.2           Division of
Expenses.  Except
as otherwise provided in Section
7.4,
all costs and expenses incurred in connection with the Properties prior to the
Reference Date shall be borne and timely paid by the Contributor pursuant to
Section 4.2(e).

     

    7.3           Recording
and Transfer Expenses.  The
Partnership shall pay all costs of recording and filing (i) the assignments
delivered hereunder for the Properties, (ii) all state, federal and Indian
transfer and assignment documents, (iii) all applications and other
documents required for the transfer of permits and operatorship of the
Properties, and (iv) all other instruments.

     

    7.4           Taxes.

     

    (a)           All
Taxes pertaining to the Properties are the Contributors’ responsibility where
attributable to the period prior to the Reference Date and are the Partnership’s
responsibility where attributable to the period on or after the Reference Date,
regardless of when assessed on the Properties.  The Contributors and
their owners shall (i) timely pay all Taxes due or claimed by any Taxing
authority to be due from such party with respect to the Properties and any
production therefrom for all periods prior to the Reference Date (including, for
avoidance of doubt, all Property Taxes due and payable for the Properties for
the year 2008, except to the extent that amounts for the payment of such
Property Taxes have been placed into escrow for the benefit of the Partnership),
except those Taxes that are contested in good faith by appropriate proceedings
and for which adequate reserves have been set aside, (ii) prevent any liens
for Taxes (other than for Taxes not yet due and payable) from being imposed upon
any of the Properties prior to the Closing, and (iii) not agree to the
extension or waiver of any statute of limitations on the assessment or
collection of any Tax or with respect to any Tax Return applicable to the
Properties prior to the Closing.  If, prior to the Closing, an issue
is raised or adjustment proposed by the IRS or any other Taxing authority in
connection with any such Tax Returns, or any Contributor receives any written
notice from the IRS or any such other Taxing authority that any such Tax Return
is being audited or may be audited or examined, such Contributor shall, no later
than ten days after such event, provide written notice thereof to the
Partnership pursuant to Section
10.1.

     

     

    22

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (b)           After
the Closing, the Contributors and the Partnership shall supply the other all
information and documents reasonably necessary to comply with Tax and financial
reporting requirements and audits.

     

    (c)           Notwithstanding
anything in this Agreement to the contrary, each party to this Agreement and
their respective partners and shareholders shall be responsible for their own
federal, state and local income tax liabilities (and any franchise tax
liabilities calculated with respect to net income).

     

    (d)           The
Contributors agree to report to the Partnership, on the Closing Date or as soon
as reasonably practicable thereafter, each Contributor’s tax basis in each
Property as of the Closing Date.

     

    7.5           Casualty
Loss.  If
any Casualty Loss occurs prior to the Closing, the affected Contributor shall
(i) transfer the affected Property to the Partnership at Closing,
notwithstanding such Casualty Loss, (ii) transfer all unpaid insurance proceeds,
claims, awards, and other payments arising out of such Casualty Loss to the
Partnership and (iii) transfer to the Partnership an amount equal to all cash
sums, if any, paid to such Contributor prior to Closing as insurance proceeds,
awards or other payments arising out of such Casualty Loss.

     

    7.6           Gas
Imbalances.  On
the Closing Date (and upon the delivery to the Partnership of the Conveyances),
the Partnership shall succeed to the position of the Contributors with respect
to all gas imbalances (whether arising under a formal gas balancing agreement or
not) and to the position of the Contributors with respect to all make-up
obligations.  As a result of such succession, the Partnership shall
(i) be entitled to receive any and all benefits, including payments of proceeds
of production in excess of amounts which it would otherwise be entitled to
produce and receive by virtue of ownership of the Properties, which the
Contributors would have been entitled to receive by virtue of such position, and
(ii) be obligated to suffer any detriments (whether the same be in the form of
obligations to deliver production which would have otherwise been attributable
to its ownership of the Properties without receiving full payment therefore, or
be in the form of the obligation to make payment in cash) which the Contributors
would have been obligated to suffer by virtue of such position.

     

     

     

    ARTICLE
8

     

    TERMINATION,
AMENDMENT AND WAIVER

     

     

     

    8.1           Termination.  This
Agreement may be terminated and the transactions contemplated hereby abandoned
at any time prior to the Closing in the following manner:

     

    (a)           By
unanimous written consent of the parties hereto;

     

    (b)           By
the Contributors or the Partnership, if:

     

    (i)           The
Closing shall not have occurred on or before June 30, 2009, unless such failure
to close shall be due to a material breach of this Agreement by the party
seeking to terminate this Agreement pursuant to this Section
8.1(b)(i); or

     

    23

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (ii)           There
shall be any Applicable Law that makes consummation of the transactions
contemplated hereby illegal or otherwise prohibited or a Governmental Entity
shall have issued an order, decree or ruling or taken any other action
permanently restraining, enjoining or otherwise prohibiting the consummation of
the transactions contemplated hereby, and such order, decree, ruling or other
action shall have become final and nonappealable;

     

    (c)           By
the Contributors, if (i) any of the representations and warranties of the
Partnership contained in this Agreement shall not be true and correct such that
the condition set forth in Section
6.2(a)
would not be satisfied, or (ii) the Partnership shall have failed to
fulfill in any material respect any of its material obligations under this
Agreement, which failure is material to the obligations of such party under this
Agreement, and, in the case of each of clauses (i) and (ii) of this Section
8.1(c),
such misrepresentation, breach of warranty or failure (provided it can be cured)
has not been cured within 30 days of notice thereof by the
Contributors.

     

    (d)           By
the Partnership, if (i) any of the representations and warranties of
any  Contributor contained in this Agreement shall not be true and
correct such that the condition set forth in Section
6.3(a)
would not be satisfied or (ii) any Contributor shall have failed to fulfill
in any material respect any of their material obligations under this Agreement,
which failure is material to the obligations of such party under this Agreement,
and, in the case of each of clauses (i) and (ii) of this Section
8.1(d),
such misrepresentation, breach of warranty or failure (provided it can be cured)
has not been cured within 30 days of notice thereof by the
Partnership.

     

    8.2           Effect of
Termination.  In
the event of the termination of this Agreement pursuant to Section
8.1
by the Partnership or the Contributors, written notice thereof shall forthwith
be given to the Partnership or the Contributors, as applicable, specifying the
provision hereof pursuant to which such termination is made, and this Agreement
shall become void and have no effect, and there shall be no liability hereunder
on the part of any party hereto or the general partner of the Partnership, or
any of their respective directors, officers, employees, shareholders,
unitholders or representatives, except that the agreements contained in this
Section
8.2
and ARTICLE
10 shall survive the termination hereof.  Nothing contained in
this Section
8.2
shall otherwise relieve any party from liability for damages actually incurred
as a result of any breach of this Agreement.

     

    8.3           Amendment.  Any
provision of this Agreement (including the Exhibits hereto) may be amended, to
the extent permitted by law, prior to the Closing Date if, and only if, such
amendment is in writing and signed by the parties hereto.

     

    8.4           Waiver.  Any
of the parties to this Agreement may (i) waive any inaccuracies in the
representations and warranties of the other parties contained herein or in any
document, certificate or writing delivered pursuant hereto or (ii) waive
compliance by the other parties with any of the other’s agreements or
fulfillment of any conditions to its own obligations contained
herein.  Any agreement on the part of a party hereto to any such
waiver shall be valid 

     

    24

    
 

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    only if
set forth in an instrument in writing signed by or on behalf of such
party.  No failure or delay by a party hereto in exercising any right,
power or privilege hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.

     

     

     

    ARTICLE
9

     

    INDEMNIFICATION

     

     

     

    9.1           Survival of
Representations, Warranties, Covenants
and Agreements.  All
of the representations and warranties of the Partnership in ARTICLE 2 and the
Contributors in ARTICLE 3 shall survive the Closing and continue in full force
and effect through and including the first anniversary of the Closing
Date.  All other covenants and agreements contained in this Agreement
shall survive the Closing until fully performed.

     

    9.2           Indemnification.

     

    (a)           Subject
to Section
9.1,
the Contributors hereby agree to indemnify and hold the Partnership and its
Affiliates and their respective directors, managers, officers, employees,
stockholders, unitholders, members, partners, agents, attorneys,
representatives, successors and assigns (collectively, the “Partnership
Indemnified Parties”) harmless from and against, and pay to the
applicable Partnership Indemnified Parties the amount of, any and all losses,
liabilities, claims, obligations, deficiencies, demands, judgments, damages
(including incidental and consequential damages), interest, fines, penalties,
claims, suits, actions, causes of action, assessments, awards, costs and
expenses (including costs of investigation and defense and attorneys’ and other
professionals’ fees), or any diminution in value, whether or not involving a
third party claim (individually, a “Loss” and,
collectively, “Losses”):

     

    (i)           based
upon, attributable to or resulting from the failure of any of the
representations or warranties made by the Contributors in the Transaction
Documents to be true and correct in all respects at and as of the date hereof
and at and as of the Closing Date; and

     

    (ii)           based
upon, attributable to or resulting from the breach of any covenant or other
agreement on the part of any Contributor under any Transaction
Document.

     

    (b)           Subject
to Section
9.1,
the Partnership hereby agrees to indemnify and hold the Contributors and their
Affiliates and their respective stockholders, unitholders directors, managers,
employees, members, partners, agents, attorneys, representatives, successors and
permitted assigns (collectively, the “Contributors’
Indemnified Parties”) harmless from and against, and pay to the
applicable Contributors’ Indemnified Parties the amount of, any and all
Losses:

     

    25

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

         
(i)           based upon,
attributable to or resulting from the failure of any of the representations or
warranties made by the Partnership in any Transaction Document to be true and
correct in all respects at the date hereof and as of the Closing Date;

     

    (ii)           based
upon, attributable to or resulting from the breach of any covenant or other
agreement on the part of the Partnership under any Transaction Document;
and

     

    (iii)           relating
to the Properties, arising from or relating to the ownership or actions or
inactions of the Partnership after the Closing Date.

     

    (c)           The
right to indemnification or any other remedy based on representations,
warranties, covenants and agreements in the Transaction Documents shall not be
affected by any investigation conducted at any time, or any Knowledge acquired
(or capable of being acquired) at any time, whether before or after the
execution and delivery of this Agreement or the Closing Date, with respect to
the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant or agreement.  The waiver of any condition based on
the accuracy of any representation or warranty, or on the performance of or
compliance with any such covenant or agreements, will not affect the right to
indemnification or any other remedy based on such representations, warranties,
covenants and agreements.  The remedy of indemnification set forth in
this ARTICLE 9 shall be in addition to any other remedies that any indemnified
party may have under Applicable Laws (whether asserted in a proceeding at law or
in equity).

     

    9.3           Indemnification
Procedures.

     

    (a)           A
claim for indemnification for any matter not involving a third party claim may
be asserted by notice to the party from whom indemnification is sought; provided
that failure to so notify the indemnifying party shall not preclude the
indemnified party from any indemnification which it may claim in accordance with
this ARTICLE 9.

     

    (b)           In
the event that any Proceedings shall be instituted or that any claim or demand
shall be asserted by any third party in respect of which indemnification may be
sought under Section
9.2
(“Third Party
Claim”), the indemnified party shall promptly cause written notice of the
assertion of any Third Party Claim of which it has knowledge which is covered by
this indemnity to be forwarded to the indemnifying party.  The failure
of the indemnified party to give reasonably prompt notice of any Third Party
Claim shall not release, waive or otherwise affect the indemnifying party’s
obligations with respect thereto except to the extent that the indemnifying
party can demonstrate actual loss and prejudice as a result of such
failure.  Subject to the provisions of this Section
9.3,
the indemnifying party shall have the right, at its sole expense, to be
represented by counsel of its choice, which must be reasonably satisfactory to
the indemnified

     

    26

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    party,
and to defend against, negotiate, settle or otherwise deal with any Third Party
Claim which relates to any Losses indemnified against by it hereunder; provided
that the indemnifying party shall  have acknowledged in writing to the
indemnified party its unqualified obligation to indemnify the indemnified party
as provided hereunder.  If the indemnifying party elects to defend
against,  negotiate,
settle or otherwise deal with any Third Party Claim which relates to any Losses
indemnified against by it hereunder, it shall within five days of the
indemnified party’s written notice of the assertion of such Third Party Claim
(or sooner, if the nature of the Third Party Claim so requires) notify the
indemnified party of its intent to do so; provided that the indemnifying party
must conduct its defense of the Third Party Claim actively and diligently
thereafter in order to preserve its rights in this regard.  If the
indemnifying party elects not to defend against, negotiate, settle or otherwise
deal with any Third Party Claim which relates to any Losses indemnified against
by it hereunder, fails to notify the indemnified party of its election as herein
provided or contests its obligation to indemnify the indemnified party for such
Losses under this Agreement, the indemnified party may defend against,
negotiate, settle or otherwise deal with such Third Party Claim.  If
the indemnified party defends any Third Party Claim, then the indemnifying party
shall reimburse the indemnified party for the expenses of defending such Third
Party Claim upon submission of periodic bills.  If the indemnifying
party shall assume the defense of any Third Party Claim, the indemnified party
may participate, at his or its own expense, in the defense of such Third Party
Claim; provided that such indemnified party shall be entitled to participate in
any such defense with separate counsel at the expense of the indemnifying party
if (i) so requested by the indemnifying party to participate or (ii) in the
reasonable opinion of counsel to the indemnified party a conflict or potential
conflict exists between the indemnified party and the indemnifying party that
would make such separate representation advisable; and provided, further, that
the indemnifying party shall not be required to pay for more than one such
counsel (plus any appropriate local counsel) for all indemnified parties in
connection with any Third Party Claim.  Each party hereto agrees to
provide reasonable access to each other party to such documents and information
as may reasonably by requested in connection with the defense, negotiation or
settlement of any such Third Party Claim.  Notwithstanding anything in
this Section
9.3
to the contrary, neither the indemnifying party nor the indemnified party shall,
without the written consent of the other party, settle or compromise any Third
Party Claim or permit a default or consent to entry of any judgment unless the
claimant (or claimants) and such party provide to such other party an
unqualified release from all liability in respect of the Third Party
Claim.  If the indemnifying party makes any payment on any Third Party
Claim, the indemnifying party shall be subrogated, to the extent of such
payment, to all rights and remedies of the indemnified party to any insurance
benefits or other claims of the indemnified party with respect to such Third
Party Claim.

     

    (c)           After
any final decision, judgment or award shall have been rendered by a Governmental
Entity of competent jurisdiction and the expiration of the time in which to
appeal therefrom, or a settlement shall have been

     

    27

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
consummated,
or the indemnified party and the indemnifying party shall have arrived at a
mutually binding
agreement, in each case with respect to any Third Party Claim hereunder, the
indemnified party shall  forward to the indemnifying
party notice of any sums due and owing by the indemnifying party pursuant to
this Agreement
with respect to such matter and the indemnifying party shall pay all of such
remaining sums so due and owing
to the indemnified party by wire transfer of immediately available funds within
five Business Days after the
date of such notice.

     

     

     

    ARTICLE
10

     

    MISCELLANEOUS

     

     

     

    10.1           Notices.  All
notices, requests, demands and other communications required or permitted to be
given or made hereunder by any party hereto shall be in writing and shall be
deemed to have been duly given or made if (i) delivered personally,
(ii) transmitted by first class registered or certified mail, postage
prepaid, return receipt requested, (iii) sent by prepaid overnight courier
service or (iv) sent by telecopy or facsimile transmission, answer back
requested, to the parties at the following addresses (or at such other addresses
as shall be specified by the parties by like notice):

     

    (a)        If
to Tiggator:

     

    Tiggator,
Inc.

    1525
Merrimac Circle, Suite 200

    Fort
Worth, Texas 76107

    Attention:
Jane White

    Fax:                                                      

     

    (b)       
If to TRB Minerals:

     

    TRB
Minerals, LP

    5956
Sherry Lane, Suite 1810

    Dallas,
Texas 75225

    Attention:
Wallace L. Hall, Jr.

    Fax:           214.891.9855

     

    (c)       
If to West Fork Partners:

     

    West Fork
Partners, L.P.

    5956
Sherry Lane, Suite 1810

    Dallas,
Texas 75225

    Attention:
Wallace L. Hall, Jr.

    Fax:           214.891.9855

     

     

    28

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

                  (d)        
If to the Partnership:

     

    Dorchester
Minerals, L.P.

    3838 Oak
Lawn Avenue, Suite 300

    Dallas,
Texas  75219

    Attention:
William Casey McManemin

    Fax:           214.559.0933

     

    with a
copy to:

     

    Thompson
& Knight LLP

    One Arts
Plaza

    1722
Routh Street, Suite 1500

    Dallas,
Texas 75201

    Attention:
Arthur Wright

    Fax:           214.969.1303

     

    Such
notices, requests, demands and other communications shall be effective
(i) if delivered personally or sent by courier service, upon actual receipt
by the intended recipient, (ii) if mailed, the date of delivery as shown by
the return receipt therefor or (iii) if sent by telecopy or facsimile
transmission, when the answer back is received.

     

    10.2           Entire
Agreement.  This
Agreement, together with the Schedules, Exhibits and other writings referred to
herein or delivered pursuant hereto, constitute the entire agreement between the
parties hereto with respect to the subject matter hereof and supersede all prior
agreements and understandings, both written and oral, between the parties with
respect to the subject matter hereof.

     

    10.3           Binding
Effect; Assignment; Third Party Benefit.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns; provided that neither
this Agreement nor any of the rights, interests or obligations hereunder shall
be assigned by any of the parties hereto (by operation of law or otherwise)
without the prior written consent of the other parties.  Nothing in
this Agreement, express or implied, is intended to or shall confer upon any
person other than the parties hereto any rights, benefits or remedies of any
nature whatsoever under or by reason of this Agreement.

     

    10.4           Severability.  If
any provision of this Agreement is held to be unenforceable, this Agreement
shall be considered divisible and such provision shall be deemed inoperative to
the extent it is deemed unenforceable, and in all other respects this Agreement
shall remain in full force and effect; provided that if any such provision may
be made enforceable by limitation thereof, then such provision shall be deemed
to be so limited and shall be enforceable to the maximum extent permitted by
Applicable Law.

     

    10.5           Governing
Law; Consent to Jurisdiction.   This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Texas.  Each of the parties submits to the
jurisdiction of any state or federal court sitting in the State of Texas, County
of Dallas, or, if it has or can acquire jurisdiction, in the United States
District Court for

     

    29

     

    
      
        
        

      

      
        
        

        
          

        

      

       the
Northern District of Texas, in any action or proceeding arising out of or
relating to this Agreement,
agrees that all claims in respect of the action or proceeding shall be heard and
determined only in any such court, and agrees not to bring any action or
proceeding arising out of or relating to this Agreement in any other
court.  Each of the parties waives any defense of inconvenient forum
to maintenance of any action or proceeding so brought.

    

     

    10.6           Descriptive
Headings.  The
descriptive headings herein are inserted for convenience of reference only, do
not constitute a part of this Agreement and shall not affect in any manner the
meaning or interpretation of this Agreement.

     

    10.7           Gender.  Pronouns
in masculine, feminine and neuter genders shall be construed to include any
other gender, and words in the singular form shall be construed to include the
plural and vice versa, unless the context otherwise requires.

     

    10.8           References.  All
references in this Agreement to Articles, Sections and other subdivisions refer
to the Articles, Sections and other subdivisions of this Agreement unless
expressly provided otherwise.  The words “this Agreement,” “herein,”
“hereof,” “hereby,” “hereunder” and words of similar import refer to this
Agreement as a whole and not to any particular subdivision unless expressly so
limited.  Whenever the words “include,” “includes” and “including” are
used in this Agreement, such words shall be deemed to be followed by the words
“without limitation.”  Each reference herein to a Schedule or Exhibit
refers to the item identified separately in writing by the parties hereto as the
described Schedule or Exhibit to this Agreement.  All Schedules and
Exhibits are hereby incorporated in and made a part of this Agreement as if set
forth in full herein.

     

    10.9           Counterparts.  This
Agreement may be executed by the parties hereto in any number of counterparts,
each of which shall be deemed an original, but all of which shall constitute one
and the same agreement.  Each counterpart may consist of a number of
copies hereof each signed by less than all, but together signed by all, the
parties hereto.

     

    10.10          Injunctive
Relief.  The
parties hereto acknowledge and agree that irreparable damage would occur in the
event any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached.  It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of the provisions of this Agreement, and shall
be entitled to enforce specifically the provisions of this Agreement, in any
court of the United States or any state thereof having jurisdiction, in addition
to any other remedy to which the parties may be entitled under this Agreement or
at law or in equity.

     

    30

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    ARTICLE
11

     

    DEFINITIONS

     

     

     

    11.1           Certain
Defined Terms.  As
used in this Agreement, each of the following terms has the meaning given it
below:

     

    “Affiliate”
shall mean, with respect to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, is controlled by or is
under common control with, such person.

    

    “Applicable
Environmental Law” shall mean all Applicable Laws pertaining to
the  protection of the environment (e.g., prevention of pollution and
remediation of contamination) and human heath and safety, including, without
limitation, the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Clean Water Act, 33
U.S.C. § 1251 et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2702 et seq.;
the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. § 1401 et seq.;
the National Environmental Policy Act, 42 U.S.C. § 4321 et seq.; the Noise
Control Act, 42. U.S.C. § 4901 et seq.; the Occupational Safety and Health Act,
29 U.S.C. § 651 et seq.; the Resource Conservation and Recovery Act (“RCRA”), 42
U.S.C. § 6901 et seq., as amended by the Hazardous and Solid Waste Amendments of
1984; the Safe Drinking Water Act, 42 U.S.C. § 300f et seq.; the Comprehensive
Environmental Response, Compensation and Liability Act (“CERCLA”), 42
U.S.C. § 9601 et seq., as amended by the Superfund Amendments and
Reauthorization Act; the Emergency Planning and Community Right-to-Know Act, 42
U.S.C. § 11001 et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601 et
seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq.; the
Atomic Energy Act, 42 U.S.C. § 2011 et seq.; and the Nuclear Waste Policy Act of
1982, 42 U.S.C. § 10101 et seq.; and all analogous applicable state and local
Applicable Laws, including, without limitation, Tex. Nat. Res. Code, Title 3
(Oil and Gas) and 16 Tex. Admin. Code. pt. 1 (Railroad Commission of
Texas).

     

    “Applicable
Law” shall mean any federal, state, local, or municipal statute, law,
common law, constitution, ordinance, rule or regulation or any judgment, order,
writ, injunction or decree of any Governmental Entity, or any treaty or other
legally enforceable directive or requirement, to which a specified person or
property is subject.

     

    “Basic
Documents” shall mean (i) all Oil and Gas Leases, and (ii) all contracts
and agreements that are reasonably necessary to own, explore, develop, operate,
maintain or use the Properties in the manner in which they are currently being
owned, explored, developed, operated, maintained or used and in accordance with
the prudent practices of the oil and gas industry; provided however that “Basic
Documents” shall not include that portion of contracts or agreements which
relate to the ownership and operation of the surface of the
Properties.

     

    “Business Day”
shall mean a day on which banks are open for the transaction of business in
Dallas, Texas.

     

    “Casualty
Loss” shall mean, with respect to all or any major portion of any of the
Properties, any destruction by fire, blowout, storm or other casualty or any
taking, or pending or 

     

    31

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
threatened
taking, in condemnation or expropriation or under the right of eminent domain of
any of the Properties or portion thereof, in each case prior to the
Closing.

    

     

    “Code” shall
mean the Internal Revenue Code of 1986, as amended.

     

    “Common Unit”
shall mean a Common Unit, as defined in the Partnership Agreement.

     

    “Disposal”
shall mean disposal as defined under RCRA § 103(3), 42 U.S.C. §
6903(3).

     

    “Encumbrances”
shall mean liens, charges, pledges, options, mortgages, deeds of trust, security
interests, claims, restrictions (whether on voting, sale, transfer, disposition
or otherwise), easements
and other encumbrances of every type and description, whether imposed by law,
agreement, understanding or otherwise.

     

    “Environment”
shall mean surface water, groundwater, drinking water supply, land surface or
subsurface strata or ambient air.

     

    “Environmental
Condition” shall mean any event occurring or condition existing prior to
the Closing Date with respect to the Real Properties or the Properties, or a
Hazardous Materials Release or Disposal on or to the Environment at any Real
Properties or the Properties, any of which has caused or may later cause any
Property to be subject to Remediation under, or not to be in compliance with,
any Applicable Environmental Law.

     

    “Environmental
Liability” shall mean any cost, damage, expense, liability, obligation,
or other responsibility arising from or under either an Applicable Environmental
Law or relating to an Environmental Condition.

     

    “Existing Surface
Use Agreements” shall include the following:

     

    
      	
               
      

            	
              (a)

            	
              Central
      Facility Easement, dated May 10, 2003, between West Fork Partners, L.P.,
      et al, and Dale Resources, L.L.C., as
amended;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Well
      Operation and Subsurface Easement, dated May 10, 2003, between West Fork
      Partners, L.P., et al, and Dale Resources, L.L.C., as
    amended;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Right-of-Way
      and Easement, dated May 10, 2003, between West Fork Partners, L.P., et al,
      and Dale Resources, L.L.C., as
amended;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Surface
      Use Development Plan Consent Letter, dated October 16, 2005, between West
      Fork Partners, L.P., et al and Dale Resources, L.L.C. (Brentwood
      Tract);

            

    

     

    
      	
               
      

            	
              (e)

            	
              Surface
      Use Development Plan Consent Letter, dated October 25, 2005, between West
      Fork Partners, L.P., et al and Dale Resources, L.L.C. (Duck Lake
      Tract);

            

    

     

    
      	
               
      

            	
              (f)

            	
              Surface
      Use Development Plan Consent Letter, dated October 25, 2005, between West
      Fork Partners, L.P., et al and Dale Resources, L.L.C. (Bass 311
      Tract);

            

    

     

    
      	
               
      

            	
              (g)

            	
              Surface
      Use Request Letter, dated January 23, 2006, from Dale Operating Company to
      West Fork Partners, L.P., et al.

            

    

     

     

    32

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Governmental
Entity” shall mean any court or tribunal in any jurisdiction (domestic or
foreign) or any public, governmental, or regulatory body, agency, department,
commission, board, bureau or other authority or instrumentality (domestic or
foreign).

     

    “Hazardous
Materials” shall mean any (i) chemical, constituents, material,
pollutant, contaminant, substance or waste that is regulated by any Governmental
Entity or may form the basis of liability under any Applicable Environmental
Law; (ii) asbestos containing material, lead-based paint, polychlorinated
biphenyls, or radon; and (iii) petroleum, Oil and Gas, or petroleum
products.

     

    “IRS” shall
mean the Internal Revenue Service of the United States.

     

    “Knowledge”
shall be deemed to exist if any individual who is serving as an officer of such
Person (or in any similar capacity) is actually aware of the fact or other
matter in question; or a prudent individual could be expected to discover or
otherwise become aware of such fact or other matter in the course of conducting
a reasonably comprehensive investigation concerning the existence of such fact
or other matter.

     

    “Lessee” shall
mean any lessee under any Oil and Gas Lease.

     

    “Material Adverse
Effect” shall mean with respect to any person, property or asset any
adverse change or adverse condition in or relating to the financial condition of
such person, including its subsidiaries, property or asset that is material to
such person, its subsidiaries, property or asset; provided that any prospective
change or changes in the conditions listed above or relating to or resulting
from (i) the transactions contemplated by this Agreement (or the
announcement of such transactions), (ii) any change or changes in the
prices of oil, gas, natural gas liquids or other hydrocarbon products or
(iii) general economic conditions or local, regional, national or
international oil and gas industry conditions, shall not be deemed to constitute
a Material Adverse Effect.

     

    “Mitigation Banking
Instrument Agreement”  shall mean that certain Mitigation
Banking Instrument Agreement, Trinity River Mitigation Bank, Ltd., Permit No.
199800370, by and between West Fork Partners, L.P,  and the U.S. Army
Corps of Engineers, et al, dated April 2001, as may hereafter be modified or
amended.

     

    “Oil and Gas”
shall mean oil, gas, casinghead gas, drip gasoline, natural gasoline,
condensate, distillate and all other liquid hydrocarbons, associated gases,
vaporous substances or minerals.

     

    “Oil and Gas
Lease” shall mean an Oil and Gas lease relating to the Properties and the
real and personal property related thereto.

     

    “Other
Minerals” shall mean sulphur, lignite, coal, uranium, thorium, iron,
geothermal steam, water, carbon dioxide, helium and all other minerals, ores or
substances of value whether or not generally produced from a wellbore in
conjunction with the production of Oil and Gas.

     

    “Partnership
Agreement” shall mean the Amended and Restated Partnership Agreement of
the Partnership, as currently in effect.

     

     

    33

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Permits”
shall mean licenses, permits, franchises, consents, approvals, variances,
exemptions, waivers and other authorizations of or from Governmental Entities or
pursuant to any Applicable Law or Environmental Applicable Law.

     

    “Permitted
Encumbrances” shall mean (i) liens for Taxes not yet due and
payable, (ii) statutory liens (including materialmen’s, mechanic’s,
repairmen’s landlord’s, and other similar liens) arising in connection with the
ordinary course of business securing payments not yet due and payable and
(iii) such defects, imperfections or irregularities of title, if any, as
are not substantial in character, amount or extent and do not materially impair
the conduct of normal operations of the Properties.

     

    “Person”
(whether or not capitalized) shall mean any individual, corporation,
partnership, limited liability company, joint venture, association, joint-stock
company, trust, enterprise, unincorporated organization or Governmental
Entity.

     

    “Proceedings”
shall mean all proceedings, actions, claims, suits, investigations and inquiries
by or before any arbitrator or Governmental Entity.

     

    “Property Tax”
shall mean any ad valorem, property (real, personal or mixed) or similar
tax.

     

    “Reasonable best
efforts” shall mean a party’s best efforts in accordance with reasonable
commercial practice and without the incurrence of unreasonable
expense.

     

    “Records”
shall mean all data, files or records in the control or possession of a
Contributor pertaining to the ownership of the Properties, including but not
limited to all abstracts of title, accounting records, property tax records,
financial reports and projections, escrow reports, books, contract files,
division order files, documents evidencing the prices currently being paid for
production, engineering data, geological and geophysical reports, lease files,
logs, maps, pressure data, production records, supplemental abstracts of title,
title curative materials, title opinions, title reports, notices, evidence of
payment, correspondence and other data related to the Properties; provided,
however, that “Records” shall not include any of the foregoing to the extent
that portion of such records relate to the ownership and operation of the
surface of the Properties.

     

    “Reference
Date” shall
mean March 31, 2009.

     

    “Release”
shall mean release as defined under CERCLA § 101(22), 42 U.S.C. §
9601(22).

     

    “Remediate” or
“Remediation”
shall mean any action or work taken to remove or otherwise remedy any
Environmental Condition, including (i) any survey, site assessment, audit,
investigation, inspection, sampling, analysis, removal, excavation, pump and
treat, cleanup, abatement, corrective action, remediation, Disposal, storage,
handling, or treatment required under any Applicable Environmental Law and (ii)
any action required to bring any Real Properties or Properties into compliance
with any Applicable Environmental Law.

     

    34

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Surface
Owners” shall mean all Persons that own surface rights to the tracts in
which the Properties are located.

     

    “Tax” shall
mean (a) any and all taxes, assessments, charges, duties, fees, levies, imposts
or other similar charges imposed by a Governmental Entity, including all income,
franchise, profits, margins, capital gains, capital stock, transfer, gross
receipts, sales, use, transfer, service, occupation, ad valorem, real or
personal property, excise, severance, windfall profits, customs, premium, stamp,
license, payroll, employment, social security, unemployment, disability,
environmental, alternative minimum, add-on, value-added, withholding and other
taxes, assessments, charges, duties, fees, levies, imposts or other similar
charges of any kind, and all estimated taxes, deficiency assessments, additions
to tax, penalties and interest, whether disputed or otherwise, and (b) any
liability of Seller for the payment of any amounts of the type described
in clause
(a) as a result of any express or implied obligation to indemnify or otherwise
assume or succeed to the liability of any other Person as a successor,
transferee, by contract, or otherwise..

     

    “Tax Return”
shall mean any report, return, election, document, estimated tax filing,
declaration, claim for refund, extensions, information returns, or other filing
with respect to any Taxes provided to any Governmental Entity including any
schedules or attachments thereto and any amendment thereof.

     

    “Transaction
Documents” shall mean this Agreement and any agreement or certificate
delivered pursuant hereto.

     

    “Treasury
Regulations” shall mean the regulations promulgated by the United States
Treasury Department under the Code.

     

    “Transfer
Application” shall have the meaning assigned to it in the Partnership
Agreement.

     

    “Unit” shall
mean , collectively, a drilling, spacing, proration, production or enhanced
recovery unit formed pursuant to a voluntary unitization, communitization or
pooling agreement, or a drilling, spacing, proration, production or enhanced
recovery unit formed under or pursuant to law, rule or regulation or other
action of a regulatory body having jurisdiction.

     

    11.2           Certain
Additional Defined Terms.  In
addition to such terms as are defined in Section
11.1,
the following terms are used in this Agreement as defined in the Sections set
forth opposite such terms:

     

    35

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      
        	
                Defined
      Term

              	
                Section
      Reference

              
	 
      	 
      
	
                Agreement

              	
                Introduction

              
	
                Applicable
      Environmental Laws

              	
                Section
      3.12

              
	
                Casualty
      Loss

              	
                Section
      7.5

              
	
                CERCLA

              	
                Section
      3.12

              
	
                Closing

              	
                Section
      1.1

              
	
                Closing
      Date

              	
                Section
      1.1

              
	
                Contributed
      Cash

              	
                Section
      1.2(a)(vii)

              
	
                Contributor

              	
                Introduction

              
	
                Contributors’
      Indemnified Parties

              	
                Section
      9.2(b)

              
	
                Conveyances

              	
                Section
      1.3

              
	
                Disposal

              	
                Section
      3.12

              
	
                Exchange
      Agent

              	
                Section
      1.2(b)

              
	
                Hazardous
      Substance

              	
                Section
      3.12

              
	
                Hazardous
      Waste

              	
                Section
      3.12

              
	
                Loss

              	
                Section
      9.2(a)

              
	
                Partnership

              	
                Introduction

              
	
                Partnership
      Audited Financial Statements

              	
                Section
      2.7

              
	
                Partnership-Entitled
      Production and Proceeds

              	
                Section
      7.1

              
	
                Partnership
      Financial Statements

              	
                Section
      2.7

              
	
                Partnership
      GP

              	
                Section
      2.3(a)

              
	
                Partnership
      Indemnified Parties

              	
                Section
      9.2(a)

              
	
                Partnership
      Latest Balance Sheet

              	
                Section
      2.7

              
	
                Partnership
      Unaudited Financial Statements

              	
                Section
      2.7

              
	
                Production

              	
                Section
      1.2(a)(iv)

              
	
                Properties

              	
                Section
      1.2

              
	
                Real
      Properties

              	
                Section
      3.12(a)

              
	
                RCRA

              	
                Section
      3.12

              
	
                SEC
      Filings

              	
                Section
      2.13

              
	
                Subject
      Units

              	
                Section
      1.2(b)

              
	
                Subject
      Units Allocation Schedule

              	
                Section
      1.2(b)

              
	
                TRB
      Minerals

              	
                Introduction

              
	
                Third
      Party Claim

              	
                Section
      9.3(b)

              
	
                Tiggator

              	
                Introduction

              
	
                Transfer

              	
                Section
      1.2

              
	
                West
      Fork Partners

              	
                Introduction

              

      

    

     

    [Signature
Page Follows]

     

    36

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on
its behalf by its representative thereunto duly authorized, as of the date first
above written.

     

     

    THE
PARTNERSHIP:

     

    DORCHESTER
MINERALS, L.P.

     

    By:           Dorchester
Minerals Management LP,

        its
general partner

     

      By:     Dorchester
Minerals Management GP LLC,

                   its general partner

     

                                  By:   /s/ William
Casey McManemin

                                           
 William Casey McManemin,

                           Chief Executive Officer and
Manager

     

    THE
CONTRIBUTORS:

     

    TIGGATOR,
INC.

     

    By:        /s/ Wallace
L. Hall, Jr.

        Wallace L. Hall,
Jr., Vice President

     

     

    TRB
MINERALS, LP

     

    By:       Lizardhead
Corp.,

    its
general partner

     

    By:     /s/ Wallace
L. Hall,
Jr.                                                                

              Wallace L. Hall, Jr.,

              President

     

                        WEST FORK PARTNERS,
L.P.

                        

                        By:        
Wetland Partners, L.P.,

                    
its general partner

     

                                     
By:       WF Investments,
Inc.,

                        its
general partner

     

                                           
By:       /s/ Wallace
L. Hall,
Jr.                                                                

                          
Wallace L. Hall, Jr.,

                                                      President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]