Document:

Exhibit 10.7

                                                                  Execution Copy

                              EMPLOYMENT AGREEMENT

         AGREEMENT made as of the 1st day of December, 2003 by and between
ACCUFACTS PRE-EMPLOYMENT SCREENING, INC., having a place of business at 2180
State Road 434 West, Suite 4150 Longwood, FL 32779 (hereinafter referred to as
"EMPLOYER") and PHIL LUIZZO, residing at ______________----(hereinafter referred
to as "EMPLOYEE").

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

WHEREAS, the EMPLOYER is engaged in the business of conducting background
screening and related services; and

         WHEREAS, the EMPLOYER is desirous of employing EMPLOYEE, and EMPLOYEE
wishes to be employed by EMPLOYER in accordance with the terms and conditions
set forth in this Agreement.

                  NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
                  PROMISES AND OTHER GOOD AND VALUABLE CONSIDERATION, THE
                  RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, IT IS MUTUALLY AGREED
                  AS FOLLOWS:

         1. EMPLOYMENT DUTIES AND TERM: The EMPLOYER does hereby employ, engage
and hire the EMPLOYEE as President and Chief Executive Officer of EMPLOYER for a
period of five (5) years two (2) months from the date first written above. The
duties of EMPLOYEE shall include, but not be limited to, acting as President and
Chief Executive Officer of EMPLOYER. EMPLOYEE will perform services on behalf of
EMPLOYER with respect to the management and general supervision of the business
of EMPLOYER.

         2. GOOD FAITH PERFORMANCE OF DUTIES: The EMPLOYEE agrees that he will,
at all times, faithfully, industriously, and to the best of his ability,
experience and talent, perform all of the duties that may be required of and
from him, pursuant to the expressed and implicit term hereof.

         3. COMPENSATION: EMPLOYER shall pay to the EMPLOYEE, and the EMPLOYEE
agrees to accept from the EMPLOYER, in full payment for the EMPLOYEE's services
hereunder, compensation at the rate of $300,000.00 per annum. EMPLOYEE will be
paid in accordance with the then applicable policy of Employer. Employee's
annual compensation will increase at a rate of five (5%) per annum during the
effective term of this agreement.

                                      -1-

<PAGE>

         4. BONUS COMPENSATION: In the event during the term of this Agreement,
EMPLOYER has earnings before interest depreciation and amortization ("EBIDA")
that exceed $500,000.00 in fiscal year 2004; or EBIDA that exceed $600,000.00 in
fiscal year 2005; or EBIDA that exceed $700,000.00 in fiscal year 2006; or EBIDA
that exceed $1,000,000.00 at the end of the fiscal year 2007; or EBIDA that
exceed $1,300,000 in fiscal year 2008, EMPLOYEE will be entitled to receive
bonus compensation of either $125,000.00 or shares of restricted common stock
(as set forth below), with cost free piggyback registration rights. The payment
of bonus compensation in the form of cash or stock is to be at the sole
discretion of the Board of Directors or their duly appointed designee. The
number of shares of common stock to be issued will be determined by the
following formula:

         125,000/ (Y*.8) = Z

                  Y = the average closing price of EMPLOYER's common stock as
                  reported by Bloomberg Financial Markets for the ten trading
                  days immediately preceding the end of the applicable fiscal
                  and the ten trading days immediately following the end of the
                  applicable fiscal year.

                  Z = bonus shares of common stock.

Bonus compensation will be payable to EMPLOYEE within thirty (30) days of the
EMPLOYER'S filing of its annual report for any given fiscal year wherein
EMPLOYER'S net earnings equal or exceed the amounts stated herein.

         5. VACATION: Employee shall be entitled to four (4) weeks paid vacation
(taken consecutively or in segments) on an annual basis in accordance with the
EMPLOYER's policies generally applicable to other executives of the Company from
time to time, taken at such times as is reasonably consistent with proper
performance by Employee of Employee's duties and responsibilities hereunder.

         6. DEDICATION OF TIME: EMPLOYEE shall devote all of his working time,
attention, knowledge and skill solely and exclusively to the business and
interest of the EMPLOYER. The EMPLOYEE expressly agrees that he will not, during
the term hereof until the termination of this Agreement, be involved directly or
indirectly, in any form, fashion or manner, as a partner, officer, director,
stockholder (owning in excess of 4.9%), advisor, consultant or employee in any
other business similar to or in any way competing with the business of the
EMPLOYER. Nothing herein contained shall, however, limit the rights of the
EMPLOYEE to own up to 5% of the capital stock or other securities of any
corporation, whose stock or securities are publicly owned or traded regularly on
a public exchange or in the over-the-counter market, or to prevent the EMPLOYEE
from investing financially in, or limiting the EMPLOYEE's rights to invest
financially in, other businesses not allied with or competing with the business
of the EMPLOYER, as long as EMPLOYEE continues to devote all of his working
time, attention, knowledge and skill, solely and exclusively to the business and
interest of the EMPLOYER. EMPLOYEE will be permitted to serve on the Board of
Directors of publicly owned companies.

                                      -2-

<PAGE>

         7. CONFIDENTIALITY: During the terms of EMPLOYEE's employment under
this Agreement, and for one (1) year thereafter, the EMPLOYEE specifically
agrees that he will not, at any time, in any fashion, form or manner, either
directly or indirectly, use, divulge, disclose or communicate to any person,
firm or corporation, in any manner whatsoever, any confidential or proprietary
information of any kind, nature or description concerning any matters affecting
or relating to the business of the EMPLOYER including, without limiting the
generality of the foregoing, any of its customers, its manner of operations, its
plans, its ideas, processes, programs, its intellectual property or other data,
information or materials of any kind, nature or description, without regard to
whether any or all of the foregoing matters shall be deemed confidential,
material or important. The parties hereto stipulate that, as between them, the
same are important, material, confidential and gravely affect the effective and
successful conduct of the business of the EMPLOYER and its goodwill, and that
any breach of the terms of this Paragraph is a material breach thereof, except
where the EMPLOYEE shall be acting on behalf of the EMPLOYER. EMPLOYEE
understands and agrees that, in the event that EMPLOYEE violates the terms and
conditions, as stated in this Paragraph, that he will be subject to an
injunction and damages, and understands and agrees that EMPLOYER's remedy to
prevent further or continued damages will include a petition for injunctive
relief. EMPLOYEE expressly acknowledges that the restrictions contained in this
Paragraph are reasonable and are properly required for the adequate protection
of the EMPLOYER's interests.

                                    EMPLOYEE further understands and agrees that
EMPLOYER, in entering into this Agreement, is relying
upon EMPLOYEE's representation and warranty that all trade secrets and other
proprietary information of EMPLOYER will be kept strictly confidential by
EMPLOYEE and not utilized by EMPLOYEE in any manner whatsoever other than on
EMPLOYER's behalf during the course of EMPLOYEE's employment with EMPLOYER.

         8. NON-COMPETITION: EMPLOYEE agrees that, during the term of this
Agreement and for six (6) months after termination hereof, he shall not, for
himself or any third party, directly or indirectly, divert or attempt to divert
from the EMPLOYER or its subsidiaries or affiliates any business of any kind in
which it is engaged or employed, solicit for employment, or recommend for
employment any person employed by the EMPLOYER or by any of its subsidiaries or
affiliates, during the period of such person's employment and for a period of
six (6) months thereafter. Not withstanding the foregoing, if EMPLOYEE is
dismissed without cause prior to the end of the term of this Agreement, then in
that event EMPLOYEE will not be prohibited from competing with EMPLOYER.
EMPLOYEE and EMPLOYER expressly acknowledge that the restrictions contained in
this paragraph are reasonable and are properly required for the adequate
protection of the EMPLOYER's interests.

         9. EARLY TERMINATION: It is expressly understood and agreed that the
terms of this Agreement, may be terminated by the EMPLOYER prior to December 31,
2008, upon the occurrence of any of the following events:

                                    (a) Automatically and without notice upon
the death of the EMPLOYEE; it is also understood
that EMPLOYEE will be entitled to twelve (12) months salary or the remainder of
salary under the term of this Agreement (whichever is less) which will be
payable to his estate;

                                    (b) Deliberate and willful failure to
perform normal services and duties required of EMPLOYEE pursuant to this
Agreement, except if the performance of such duties or services
would result in a violation of EMPLOYEE's fiduciary responsibility to the
Company and its shareholders or is in a violation of applicable laws;

                                      -3-

<PAGE>

                                    (c) Any willful act or failure to act, which
in the reasonable opinion of the Board, is in
bad faith and to the material detriment of the EMPLOYER;

                                    (d) Conviction of a felony involving moral
turpitude or dishonesty;

                                    (e) Total or partial disability of the
EMPLOYEE for a period of nine (9) consecutive months
or two hundred and seventy (270) days, in the aggregate, so that he is prevented
from satisfactorily performing a substantial part of his duties; it being
further understood and agreed that any proceeds received by EMPLOYEE from a
policy of disability benefits insurance or any other proceeds received from any
Federal, State or Municipal agency of government will be credited to the amount
of compensation paid to EMPLOYEE by EMPLOYER; and

                                    (f) Fraudulent misconduct of the EMPLOYEE.

In the event of early termination for any reason stated in paragraphs 9 (b),
(c), (d), or (f) [any vested options under this Agreement will lapse immediately
and be null and void.]

                                    In the event of early termination for any of
the reasons stated in paragraphs 9 (a) or 9 (e), the
EMPLOYEE, its estate or representatives as the case may be will have one hundred
twenty (120) days from the date of the termination to exercise any vested
options under this Agreement prior to their lapsing.

                                    Subject to terms contained herein, this
Agreement shall not be terminated by any:

                                    (x) Merger or consolidation, where the
Company is not the consolidating or surviving; or

                                    (y) Transfer of all or a substantial
majority of the assets of the Company;

                                    Not withstanding the foregoing, in the event
of any merger or consolidation or transfer of all, or
a substantial majority, of the assets of the Company or acquisition or control
of fifty percent (50%) (or an amount of stock ownership that has the ability to
elect the Board of Directors of EMPLOYER) or more of the Company's issued and
voting equity share capital by any party or by parties acting in concert or
under common control (`Change in Control"), the surviving or resulting entity or
the transferee or transferees of the Company's assets or its issued and voting
equity share capital, shall be bound by, and shall have the benefit of, the
provision of this Agreement, and the Company shall endeavor to take all actions
necessary to ensure that such entity or transferee or transferees shall be bound
by the provisions of the Agreement. Moreover, in the event of such merger or
consolidation, or transfer of all or a substantial majority of the assets of the
Company or acquisition of the Company of the Company's issued and voting equity
share capital otherwise known as a Change in Control as aforesaid, the EMPLOYER
and its successor will be unconditionally obligated to effect full settlement of

                                      -4-

<PAGE>

all the EMPLOYEE's entitlements under the terms of this Agreement, which
settlement shall also include the payment of EMPLOYEE's remuneration for the
full term of the Agreement but in no event less than twelve (12) months salary.
Additionally, EMPLOYER and its successor will be obligated to pay all bonus
compensation that the EMPLOYEE may be eligible to receive for the ensuing year
in the form of a cash payment (for purposes of this provision it will be assumed
that the Company will meet the annual milestone as set forth in Section 4 of
this Agreement for the applicable year and EMPLOYEE will be entitled to total
bonus compensation of $125,000 in addition to the remuneration as set forth
herein). This obligation to make payment to EMPLOYEE in the event of a Change in
Control shall survive any assignment, transfer or sale of the EMPLOYER's voting
equity and is absolute regardless of whether EMPLOYER meets the milestones as
set forth in Section 4. Payments under this Section to EMPLOYEE must be made
concurrently with Change in Control.

         10. BENEFITS: EMPLOYER agrees that EMPLOYEE will be entitled, during
the term, to all fringe benefits in effect for executive officers of the
EMPLOYER, such as medical insurance. EMPLOYEE will also receive a monthly
automobile allowance of $1,000.00 under this agreement.

         11. SEVERANCE: In the event this Agreement is terminated by EMPLOYER
prior to the end of its term for any reason OTHER than those set forth in
paragraphs 9(a) through 9(g) herein, then in that event EMPLOYEE will be
entitled to full settlement of all the EMPLOYEE's entitlements under the terms
of this Agreement, which settlement shall also include the payment of EMPLOYEE's
remuneration for the full term of the Agreement but in no event less than twelve
(12) months salary.

                                            If EMPLOYEE is terminated for any
reason set forth in paragraphs 9(a) through 9(g), then
EMPLOYEE will not be entitled to any form of severance unless otherwise
provided.

         12. NO WAIVER: The parties hereto do further agree that no waiver or
modification of this Agreement or of any covenant, condition or limitation
herein contained, shall be valid, unless in writing and duly executed by the
party to be charged therewith, and that no evidence of any proceedings or
litigation between either of the parties arising out of or affecting this
Agreement or the rights and obligations of any party hereunder shall be valid
and binding unless such waiver or modification is in writing, duly executed, and
the parties further agree that the provisions of this paragraph may not be
waived except as herein set forth.

         13. GOVERNING LAW: The parties hereto agree that it is their intention
and covenant that this Agreement and the performance hereunder shall be
construed in accordance with and under the laws of the State of Florida, and
that the terms hereof may be enforced in any court of competent jurisdiction in
an action for specific performance which may be instituted under this Agreement,
and that in the event of any dispute or claim under the within Agreement, that
same will be resolved in the Courts of the State of Florida.

         14. OPPORTUNITY TO REVIEW: EMPLOYEE and EMPLOYER warrant and represent
that each has had sufficient and adequate opportunity to consult with
independent counsel concerning the within Agreement, and has requested that the
firm of Baratta & Goldstein prepare the within Agreement, and is aware that said
firm is relying upon the within representation prior to the parties entering
into the Agreement herein.

                                      -5-

<PAGE>

         15. NOTICES: All notices required or permitted to be given by either
party hereunder shall be in writing and mailed by registered mail, return
receipt requested and by regular mail to the other party addressed as follows:

                                    If to EMPLOYER at:
                                    Accufacts Pre-Employment Screening, Inc.
                                    2180 State Road 434 West
                                    Suite 4150
                                    Longwood, Florida 32779

                                    If to EMPLOYEE at:
                                    Phil Luizzo
                                    c/o Accufacts Pre-Employment Screening, Inc.
                                    2180 State Road 434 West
                                    Suite 4150
                                    Longwood, Florida 32779

Any notice mailed, as provided above, shall be deemed completed on the date of
receipt, or five (5) days from the postmark on said postal receipt.

         16. CAPTION HEADINGS: Caption  headings in this Agreement are
provided  merely for  convenience  and are of no force and effect.

         17. ENTIRE AGREEMENT: This Agreement contains the total and entire
Agreement between the parties and shall, as of the effective date hereof,
supersede any and all other Agreements between the parties. The parties
acknowledge and agree that neither of them has made any representations that are
not specifically set forth herein, and each of the parties hereto acknowledges
that he or it has relied upon his or its own judgment in entering into same, and
that the within Agreement has been approved by the EMPLOYERS compensation
committee and its board of directors.

         IN WITNESS WHEREOF, the parties have hereunto set their hands and seals
the day, month and year first above written.

                                  ACCUFACTS PRE-EMPLOYMENT SCREENING, INC.

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

                                           PHIL LUIZZO

                                      -6-

<PAGE>Exhibit 10.5

                               AMENDMENT NO. ONE

                                       TO

                                THE BEARD COMPANY

                     2003-2 DEFERRED STOCK COMPENSATION PLAN

                           Adopted: September 30, 2003

                           Amended: February 13, 2004

<PAGE>
                                AMENDMENT NO. ONE
                                       TO
                                THE BEARD COMPANY
                     2003-2 DEFERRED STOCK COMPENSATION PLAN
                                                                            Page
                                                                            ----

ARTICLE I       Purpose and Effective Date................................... 1

ARTICLE II      Definitions.................................................. 1

ARTICLE III     Shares Available Under the Plan.............................. 3

ARTICLE IV      Administration............................................... 3

ARTICLE V       Eligibility.................................................. 3

ARTICLE VI      Deferral Elections In Lieu of Cash Payments.................. 3

ARTICLE VII     Settlement of Stock Units.................................... 4

ARTICLE VIII    Unfunded Status.............................................. 5

ARTICLE IX      Designation of Beneficiary................................... 5

ARTICLE X       Adjustment Provisions........................................ 5

ARTICLE XI      Compliance with Rule 16b-3................................... 6

ARTICLE XII     General Provisions........................................... 6

<PAGE>
                                AMENDMENT NO. ONE
                                       TO
                                THE BEARD COMPANY
                     2003-2 DEFERRED STOCK COMPENSATION PLAN

                                    ARTICLE I

                           PURPOSE AND EFFECTIVE DATE

     1.1 Purpose. The Beard Company 2003-2 Deferred Stock Compensation Plan (the
"Plan") is intended to advance the interests of the Company and its shareholders
by providing a means to attract and retain highly-qualified  persons to serve as
Officers and Directors  and to promote  ownership by Officers and Directors of a
greater  proprietary  interest in the Company,  thereby  aligning such interests
more closely with the interests of shareholders of the Company.

     1.2 Effective Date. This Plan, as amended, shall become effective September
30,  2003  subject  to  approval  of  the  shareholders  of the  Company  by the
affirmative vote of a majority of shares of the Company present, or represented,
and  entitled  to vote on the  subject  matter,  at the 2004  Annual  Meeting of
Shareholders of the Company at which a quorum is present or by a written consent
of the holders of a majority of the Company's then outstanding shares.

                                   ARTICLE II

                                   DEFINITIONS

     The following terms shall be defined as set forth below:

     2.1 "Board" means the Board of Directors of the Company.

     2.2 "Compensation" means all or part of the cash remuneration payable to an
Officer in his or her capacity as an Officer.

     2.3 "Committee" means the Compensation Committee of the Board.

     2.4 "Company"  means The Beard  Company,  an Oklahoma  corporation,  or any
successor thereto.

     2.5 "Deferral  Date" means the date Fees or  Compensation  would  otherwise
have been paid to the Participant.

     2.6 "Director" means any individual who is a member of the Board.

     2.7 "Exchange Act" means the  Securities  Exchange Act of 1934, as amended.
References  to any provision of the Exchange Act include  rules  thereunder  and
successor provisions and rules thereto.

     2.8  "Fair  Market  Value"  means the  "Market  Price"  as  defined  in the
Certificate of Designations for the Company's  outstanding  Series A Convertible
Preferred Stock (the "Certificate");  provided,  however, that in the event that
Fair  Market  Value is less  than  the  "Conversion  Price"  as  defined  in the
Certificate,  then the Fair  Market  Value  shall be the average of (i) the last
sale of such  security on any day there are sales of such  securities on the OTC
Bulletin  Board(R),  or (ii) if there  have  been no  sales on the OTC  Bulletin
Board(R)  on any day,  the best asked price at the end of such day, in each such
case averaged over a period of 21 days consisting of the day as of which "Market
Price" is being  determined and the 20  consecutive  business days prior to such
day.

     2.9  "Fees"  means all or part of any  retainer  and/or  fees  payable to a
Director in his or her capacity as a Director.

     2.10 "Officer" means any person so designated by the Board.

     2.11  "Participant"  means  a  Director  or  Officer  who  defers  Fees  or
Compensation under Article VI of this Plan.

     2.12 "Reconciliation Events" means certain events which cause the amount of
Fees or Compensation  actually paid during a period to differ from the amount of
Fees  credited  pursuant  to Section  6.4,  including,  but not  limited to, the
following:  an  increase or decrease  in Fees paid,  additional  meetings  held,
missed attendance at certain meetings,  newly elected directors and Terminations
of Service.

     2.13 "Secretary" means the Corporate  Secretary or any Assistant  Corporate
Secretary of The Beard Company.

     2.14 "Shares"  means shares of the common stock of The Beard  Company,  par
value $.001333 per share, or of any successor  corporation or other legal entity
adopting this Plan.

     2.15 "Stock Units" means the credits to a Participant's  Stock Unit Account
under Article VI of this Plan, each of which represents the right to receive one
Share upon settlement of the Stock Unit Account.

     2.16 "Stock Unit Account" means the bookkeeping  account established by the
Company pursuant to Section 6.4.

     2.17  "Termination  Date"  means the date the Plan  terminates  pursuant to
Section 12.8.

     2.18 "Termination of Service" means termination of service as a Director or
Officer in any of the following circumstances:

          (a) Where the Participant voluntarily resigns or retires;

          (b) Where a Director is not  re-elected  (or elected in the case of an
     appointed Director) to the Board by the shareholders,  or an Officer is not
     re-elected as an Officer by the Board; or

          (c) Where the Participant dies.

                                   ARTICLE III

                         SHARES AVAILABLE UNDER THE PLAN

     Subject to  adjustment  as  provided  in Article X, the  maximum  number of
Shares that may be  distributed  in settlement of Stock Unit Accounts under this
Plan shall not exceed 400,000.  Such Shares may include  authorized but unissued
Shares or treasury Shares.

                                   ARTICLE IV

                                 ADMINISTRATION

     4.1 This Plan shall be administered by the Board's Compensation  Committee,
or such  other  committee  or  individual  as may be  designated  by the  Board.
Notwithstanding the foregoing,  no Director who is a Participant under this Plan
shall  participate in any  determination  relating solely or primarily to his or
her own Shares, Stock Units or Stock Unit Account.

     4.2 It  shall be the  duty of the  Committee  to  administer  this  Plan in
accordance with its provisions and to make such recommendations of amendments or
otherwise as it deems necessary or appropriate.

     4.3 The Committee  shall have the authority to make all  determinations  it
deems  necessary  or  advisable  for  administering  this  Plan,  subject to the
limitations in Section 4.1 and other explicit provisions of this Plan.

                                    ARTICLE V

                                   ELIGIBILITY

     Each  Director  and Officer of the Company  shall be eligible to defer Fees
and Compensation under Article VI of this Plan.

                                   ARTICLE VI

                   DEFERRAL ELECTIONS IN LIEU OF CASH PAYMENTS

     6.1 General Rule.  Each Director or Officer may, in lieu of receipt of Fees
or Compensation, defer such Fees or Compensation in accordance with this Article
VI.

     6.2 Timing of  Election.  Each  eligible  Director or Officer who wishes to
defer  Fees or  Compensation  under this Plan must make an  irrevocable  written
election at least six (6) months prior to the beginning of the date on which the
Fees or  Compensation  would  otherwise be paid;  provided,  however,  that with
respect to any election made by a newly-elected or appointed Director or Officer
("New  Participant  Elections"),  the Company  shall hold such  deferred Fees or
Compensation (without interest) and credit them pursuant to Section 6.4 on or as
of the date which follows by six months such deferral election. An election by a
Director or an Officer  previously in effect  September 30, 2003 shall be deemed
to be continuing and therefore  applicable to Fees or Compensation to be paid in
periods  unless the  Director  or Officer  revokes or changes  such  election by
filing a new  election  form thirty (30) days prior to the next payment date for
Fees or Compensation.

     6.3 Form of Election. An election shall be made in a manner satisfactory to
the Secretary. Generally, an election shall be made by completing and filing the
specified  election  form with the  Secretary  of the Company  within the period
described  in Section  6.2. At minimum,  the form shall  require the Director or
Officer to specify the following:

          (a) a percentage  (for Directors in 25%  increments,  and for Officers
     not less  than  10% and in 5%  increments  thereafter),  not to  exceed  an
     aggregate  of 100% of the Fees or  Compensation  to be deferred  under this
     Plan; and

          (b) the manner of settlement in accordance with Section 7.2.

     6.4 Establishment of Stock Unit Account. The Company will establish a Stock
Unit Account for each Participant. All Fees or Compensation deferred pursuant to
this Article VI shall be credited to the Participant's  Stock Unit Account as of
the Deferral Date and  converted to Stock Units as follows:  The number of Stock
Units shall equal the deferred Fees or  Compensation  divided by the Fair Market
Value of a Share on the Deferral Date, with fractional units calculated to three
(3) decimal places.

     6.5 Credit of Dividend  Equivalents.  As of each dividend payment date with
respect to Shares, each Participant shall have credited to his or her Stock Unit
Account  an  additional  number of Stock  Units  equal to:  the  per-share  cash
dividend  payable  with  respect  to a  Share  on  such  dividend  payment  date
multiplied by the number of Stock Units held in the Stock Unit Account as of the
close of  business  on the  record  date for such  dividend  divided by the Fair
Market Value of a Share on such dividend  payment date. If dividends are paid on
Shares in a form  other  than  cash,  then such  dividends  shall be  notionally
converted  to cash,  if their value is readily  determinable,  and credited in a
manner  consistent  with  the  foregoing  and,  if their  value  is not  readily
determinable,  shall be  credited  "in  kind" to the  Participant's  Stock  Unit
Account.

     6.6  Reconciliations.  The Company shall record all  Reconciliation  Events
and, as soon as reasonably practicable after the end of each calendar quarter or
after  a  Termination  of  Service,   make   appropriate   adjustments  to  each
Participant's  Stock  Unit  Account  to  reflect  such  Reconciliation   Events;
provided,  however,  the Fair Market  Value used to determine  such  adjustments
shall be the same Fair Market Value used to determine  the number of Stock Units
credited to such Participant's Stock Unit Account.

                                   ARTICLE VII

                            SETTLEMENT OF STOCK UNITS

     7.1 Settlement of Account.  The Company will settle a  Participant's  Stock
Unit Account in the manner described in Section 7.2 as soon as  administratively
feasible  following  the  earlier  of (i)  notification  of  such  Participant's
Termination of Service or (ii) the Termination Date.

     7.2 Payment  Options.  An election  filed  under  Article VI shall  specify
whether the  Participant's  Stock Unit Account is to be settled by delivering to
the  Participant (or his or her  beneficiary)  the number of Shares equal to the
number of whole  Stock  Units  then  credited  to the  Participant's  Stock Unit
Accounts, in (a) a lump sum, or (b) substantially equal annual installments over
a period not to exceed ten (10) years.  If, upon lump sum  distribution or final
distribution of an installment,  less than one whole Stock Unit is credited to a
Participant's Stock Unit Account, cash will be paid in lieu of fractional shares
on the date of such distribution.

     7.3  Continuation  of  Dividend  Equivalents.  If payment of Stock Units is
deferred and paid in installments,  the  Participant's  Stock Unit Account shall
continue to be credited with dividend equivalents as provided in Section 6.5.

     7.4 In Kind  Dividends.  If any "in kind"  dividends  were  credited to the
Participant's  Stock Unit Account  under Section 6.5,  such  dividends  shall be
payable  to the  Participant  in full on the date of the first  distribution  of
Shares under Section 7.2.

                                  ARTICLE VIII

                                 UNFUNDED STATUS

     The interest of each Participant in any Fees or Compensation deferred under
this Plan (and any Stock Units or Stock Unit Account relating  thereto) shall be
that of a general creditor of the Company.  Stock Unit Accounts, and Stock Units
(and,  if any,  "in kind"  dividends)  credited  thereto,  shall at all times be
maintained  by the  Company  as  bookkeeping  entries  evidencing  unfunded  and
unsecured general obligations of the Company.

                                   ARTICLE IX

                           DESIGNATION OF BENEFICIARY

     Each Participant may designate, on a form provided by the Committee, one or
more  beneficiaries  to receive the Shares described in Section 7.2 in the event
of  such  Participant's  death.  The  Company  may  rely  upon  the  beneficiary
designation last filed with the Committee,  provided that such form was executed
by the  Participant  or his or her  legal  representative  and  filed  with  the
Committee prior to the Participant's death.

                                    ARTICLE X

                              ADJUSTMENT PROVISIONS

     In the event any recapitalization,  reorganization,  merger, consolidation,
spin-off, combination, repurchase, exchange of shares or other securities of the
Company, stock split or reverse split, or similar corporate transaction or event
affects  Shares such that an  adjustment is determined by the Board or Committee
to be appropriate to prevent  dilution or  enlargement of  Participants'  rights
under  this  Plan,  then  the  Board or  Committee  will,  in a  manner  that is
proportionate to the change to the Shares and is otherwise equitable, adjust the
number or kind of Shares to be delivered upon  settlement of Stock Unit Accounts
under Article VII.

                                   ARTICLE XI

                           COMPLIANCE WITH RULE 16b-3

     Subject to Section  6.2,  it is the  intent of the  Company  that this Plan
comply in all  respects  with  applicable  provisions  of Rule  16b-3  under the
Exchange Act in connection with the deferral of Fees and Compensation.

                                   ARTICLE XII

                               GENERAL PROVISIONS

     12.1 No Right to Continue as an Officer or Director.  Nothing  contained in
this Plan will confer upon any  Participant any right to continue to serve as an
Officer or Director.

     12.2 No Shareholder  Rights Conferred.  Nothing contained in this Plan will
confer upon any  Participant  any rights of a shareholder  of the Company unless
and until  Shares  are in fact  issued or  transferred  to such  Participant  in
accordance with Article VII.

     12.3 Change to the Plan. The Board may amend, alter, suspend,  discontinue,
extend,   or  terminate  the  Plan  without  the  consent  of   shareholders  or
Participants, except that any such action will be subject to the approval of the
Company's  shareholders  at the next  annual  meeting of  shareholders  having a
record date after the date such action was taken if such stockholder approval is
required  by any  federal or state law or  regulation  or the rules of any stock
exchange or automated quotation system on which the Shares may then be listed or
quoted,  or if the Board  determines in its discretion to seek such  shareholder
approval;   provided,   however,  that,  without  the  consent  of  an  affected
Participant, no such action may materially impair the rights of such Participant
with respect to any Stock Units credited to his or her Stock Unit Account.

     12.4  Consideration;  Agreements.  The  consideration  for Shares issued or
delivered in lieu of payment of Fees or Compensation  will be the service of the
Officer or Director during the period to which the Fees or Compensation  paid in
the form of Shares related.

     12.5  Compliance  with  Laws  and  Obligations.  The  Company  will  not be
obligated  to  issue  or  deliver  Shares  in  connection  with  this  Plan in a
transaction  subject to the  registration  requirements of the Securities Act of
1933, as amended,  or any other federal or state securities law, any requirement
under any listing  agreement  between the  Company and any  national  securities
exchange  or  automated  quotation  system or any other  laws,  regulations,  or
contractual obligations of the Company, until the Company is satisfied that such
laws, regulations,  and other obligations of the Company have been complied with
in full.  Certificates  representing  Shares  delivered  under  the Plan will be
subject to such stop-transfer orders and other restrictions as may be applicable
under such laws,  regulations,  and other obligations of the Company,  including
any requirement that a legend or legends be placed thereon.

     12.6 Limitations on Transferability.  Stock Units and any other right under
the Plan that may  constitute a  "derivative  security" as generally  defined in
Rule 16a-1(c) under the Exchange Act will not be  transferable  by a Participant
except  by will or the laws of  descent  and  distribution  (or to a  designated
beneficiary in the event of a Participant's death); provided, however, that such
rights may be  transferred to one or more trusts or other  beneficiaries  during
the lifetime of the  Participant  in connection  with the  Participant's  estate
planning,  but only if and to the  extent  then  permitted  under Rule 16b-3 and
consistent with the  registration of the offer and sale of Shares on Form S-8 or
a successor  registration form of the Securities and Exchange Commission.  Stock
Units  and  other  rights  under  the  Plan  may  not  be  pledged,   mortgaged,
hypothecated, or otherwise encumbered, and shall not be subject to the claims of
creditors.

     12.7 Governing Law. The validity,  construction, and effect of the Plan and
any agreement  hereunder  will be determined in accordance  with the laws of the
State of Oklahoma, without giving effect to principles of conflicts of laws, and
applicable federal law.

     12.8 Plan Termination.  Unless earlier terminated by action of the Board or
Executive  Committee  of the  Board,  the Plan will  remain in effect  until the
earlier of (i) such time as no Shares remain  available  for delivery  under the
Plan and the Company has no further rights or obligations under the Plan or (ii)
September 30, 2013.

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