Document:

Exhibit
10.1

COMPROMISE
AGREEMENT AND RELEASE

This COMPROMISE AGREEMENT AND RELEASE (the “Agreement”), dated
as of August 21, 2007 (the “Separation Date”), by and between Stephen
Burch  (“Burch”) and Virgin Media
Inc., a Delaware corporation (the “Company”).

WHEREAS,
prior to the Separation Date, Burch was employed by the Company as its
President and Chief Executive Officer pursuant to an Employment Agreement,
dated as of December 15, 2005 (the “Employment Agreement”), and also
served as a member of its Board of Directors (the “Board”);

WHEREAS,
in the Employment Agreement, the Company agreed to grant to Burch a total of
1,125,000 shares of restricted common stock, $.01 par value per share, of the
Company (the “Restricted Stock”);

WHEREAS,
250,000 shares of Restricted Stock have vested prior to the Separation Date
(the “Vested Shares”), and 875,000 shares of Restricted Stock remain
unvested or ungranted as of the Separation Date (the “Unvested Shares”);

WHEREAS,
the Restricted Stock is governed by the terms of certain Restricted Stock
Agreements between Burch and the Company (the “Restricted Stock Agreements”);
and

WHEREAS,
on the Separation Date, Burch has elected to resign his services to the Company
and all of its subsidiaries and affiliates in all capacities.

NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and for the monetary and other consideration set forth below
(including, without limitation, the treatment of the Restricted Stock as
provided herein), the parties hereto agree as follows:

1.             Resignation from All Positions.  Burch hereby acknowledges and confirms that
his employment with the Company and any and all appointments he holds with the
Company and any of its subsidiaries and affiliates, whether as an officer,
employee, director, consultant, agent, or otherwise and including, without
limitation, as a member of the Board, ceased on the Separation Date.  Burch understands and agrees that from and
after the Separation Date he is no longer authorized to speak on behalf of, or
incur any expenses, obligations or liabilities on behalf of, the Company or any
of its subsidiaries or affiliates.  Burch
hereby confirms that his resignation is not due to a “disagreement with the
registrant” as such phrase is used in Form 8-K promulgated by the Securities
and Exchange Commission.

2.             Services to the Company
Following the Separation Date.

(a)           This Section 2 expressly modifies
Section 7(g) of the Employment Agreement which is attached as Appendix B.

(b)           Burch agrees that, from and after the
Separation Date until the six-month anniversary of the Separation Date (the “Services
Period”), Burch shall make himself available to provide services to the
Company, regarding the businesses and affairs of the Company and its 

affiliates (other
than litigation involving the Company, which is addressed in Section 2(c)
hereof) (the “Services”) on such dates and at such times as the Company
may reasonably request.  The number of
days that Burch shall make himself available to the Company to provide Services
during the Services Period shall not exceed twenty.  The Services shall be commensurate with Burch’s
status as a former Chief Executive Officer of the Company.  Burch shall receive no compensation for the
Services other than as provided herein. 
The parties understand and agree that Burch shall perform the Services
as an independent contractor and not as an employee.

(c)           From and after the Separation Date,
Section 7(g) of the Employment Agreement shall apply solely with respect to
litigation involving the Company.

3.             Restriction on Services to
Certain Other Persons; Modification of Section 9(b) of the Employment Agreement.

(a)           This Section 3(a) expressly modifies
the definition of “Core Business” contained in Section 9(b)(i) of the
Employment Agreement.  From and after the
Separation Date, the “Core Business” shall consist solely of (w) owning or
operating broadband or mobile communications networks for telephone, mobile
telephone, cable television or internet services, (x) providing mobile telephone
or fixed line telephone services, (y) providing television or internet services
or (z) owning, operating or providing any content-generation services or
television channels, in the case of each of (w) through (z), principally in the
United Kingdom or Ireland.  For avoidance
of doubt, subject to Section 3(c), nothing in this Agreement or the Employment
Agreement shall prohibit or limit Burch’s ability to provide services to  any entity that competes with the Core
Business, so long as (A) such entity has more than one discrete and readily
distinguishable business unit, (B) Burch’s duties do not include management or
supervision of  the business unit that
competes with the Core Business, including, without limitation, serving in a
capacity where any person responsible for 
the Core Business reports to Burch and (C) if more than 25% of the
revenue of such entity is derived from operations in the United Kingdom or
Ireland, Burch notifies the Company of such employment prior to commencement of
his employment with such entity.  Subject
to Section 3(c), nothing in this Agreement or the Employment Agreement shall
prohibit or limit Burch’s ability to provide services to any entity that
engages in the Core Business solely in countries other than the United Kingdom
or Ireland.

(b)           For avoidance of doubt, no provision
of this Agreement shall be construed to enlarge or diminish the obligations of
Burch under Section 9 of the Employment Agreement, other than Section 9(b)(i)
thereof.

(c)           In order to assure equality of information
of all potential counterparties in connection with any possible transaction
relating to the strategic review previously announced by the Company, including
the possible occurrence of a “Change in Control” (as defined in the Employment
Agreement), Burch and the Company agree that, from and after the Separation
Date until the earlier of (x) the first anniversary of the Separation Date and
(y) the consummation of a Change in Control:

(i)            Burch shall not, directly or
indirectly, initiate communication regarding the Company or a potential
business transaction involving the Company (any 

 2
 

such communication, a “Prohibited Communications”)
with any person; provided, however, that this subsection shall
not restrict any communication by Burch relating to his employment by a person
who is not an “Adverse Party” (as defined below) so long as such communication
is reasonably appropriate for purposes of securing such employment.  For purposes of this agreement, “Adverse
Party” shall mean those persons or entities identified to Burch by the
Company as potential counterparties to a Change of Control transaction, those
persons or entities actually known to Burch to be potential counterparties to a
Change of Control transaction, and those persons or entities publicly reported
to be potential counterparties to a Change of Control transaction and for each
of these three categories, their legal, financial or other advisers.  In the event that any Adverse Party initiates
a Prohibited Communication with Burch, Burch shall immediately refer such
person or entity to the General Counsel of the Company, and any further
communications between such Adverse Party and Burch shall occur only upon such
terms and conditions as the Company, in its sole discretion, determines.

(ii)           Burch shall not provide services in
any capacity to any Adverse Party, unless (A) Burch’s services to such Adverse
Party are completely unrelated to the Company or a potential business
transaction with the Company, (B) Burch’s services to such Adverse Party are
subject to the establishment of screening procedures reasonably satisfactory to
the Company and designed to ensure that Burch has no Prohibited Communications
and is in no way engaged with such Adverse Party’s activities relating to the
Company, and (C) the Adverse Party agrees to enter into or amend any
nondisclosure or other, similar agreement with the Company to safeguard against
no Prohibited Communication between such Adverse Party and Burch.  In the event that Burch commences to provide
services to a person or entity which is not an Adverse Party at the time such
services commence but which subsequently becomes an Adverse Party, Burch shall,
at the reasonable request of the Company, demonstrate that (I) Burch has had no
Prohibited Communications with such person or entity during the entire period
that he has provided services to such person or entity, and (II) the screening
procedures required by subsection (ii) of this Section 3(c) have been in effect
from the time that Burch knew or reasonably should have known that such person
or entity has become an Adverse Party.

(d)           Since June 7, 2007, Burch has not
communicated with any Adverse Party.

4.             Nondisparagement.  From and after the Separation Date, neither
Burch nor the Company shall make any statement that criticizes, ridicules,
disparages or is otherwise derogatory of the other party.  In addition, Burch shall not make any
statement that criticizes, ridicules, disparages or is otherwise derogatory of
any of the Company’s current or former subsidiaries, affiliates, employees,
officers, directors or stockholders.  For
such purpose, statements by the Company shall mean (i) statements by the
Company or any of its subsidiaries by press release or other formally released
announcement and (ii) oral or written statements by the executive officers or
directors of the Company or any of its subsidiaries, but shall not mean oral or
written statements by any other person.

5.             Severance
Payment.

(a)           So long as Burch executes and
delivers this Agreement to the Company 

 3
 

and does not revoke this
Agreement within the time period provided in Section 7(g) hereof, Burch shall
be paid a severance payment of $1,500,000 (the “Severance Payment”), to
be paid within five days following the date on which the revocation period applicable
to this Agreement has lapsed.  For
avoidance of doubt, the payment of the Severance Payment shall in no event be
conditioned on any act or omission to act by Burch (including any such act or
omission to act that could constitute a breach of this Agreement or the
Employment Agreement), other than the revocation of this Agreement by Burch.

(b)           For the avoidance of doubt, following
the Separation Date, Burch shall receive all the benefits available to Burch
under the Company’s applicable expatriate policy as a former employees of the
Company, including, without limitation, tax equalization, relocation to the
United States and continued medical benefits. Burch hereby acknowledges and
agrees that he shall relocate to the United States on or before December 31,
2007.

(c)           Without duplication of any medical
benefits to be provided under the applicable expatriate policy, the Company
shall cause Burch and his spouse and dependents to be provided with medical
coverage for six months following the Separation Date at the same cost to him
as was in effect at the Separation Date

(d)           Following the Separation Date, the
Company will take steps as may be necessary to assume responsibility for all
costs associated with the  leases on any
automobiles Burch has used in connection with his services to the Company.  In all events, Burch shall be entitled to
continue to use all such automobiles until such time as Burch relocates to the
United States.

6.             Retention of 250,000 Shares of
Restricted Stock.  The parties agree
that the Employment Agreement and the Restricted Stock Agreements are modified
as follows:

(a)           As of the Separation Date, Burch
shall:

(i)                                     retain all 250,000 Vested Shares of
Restricted Stock;

(ii)                                forfeit 625,000 of the Unvested Shares
and all rights thereto (whether granted or not as of the Separation Date); and

(iii)                             subject to Section 6(b), retain 250,000
Unvested Shares.

(b)           Notwithstanding his termination of
employment and the terms of the Restricted Stock Agreements, Burch shall retain
250,000 Unvested Shares (the “Retained Restricted Stock”).  The Retained Restricted Stock shall vest and
cease to be subject to transfer restrictions on the following dates (each, a “Lapse
Date”):

(i)                                   as to 125,000 shares of Retained
Restricted Stock, on the earlier of January 15, 2008 and the day on which a
Change in Control occurs (but immediately prior to the occurrence of the Change
in Control); and

(ii)                                as to 125,000 shares of Retained
Restricted Stock, on the earlier of 

 4
 

March 15, 2008 and the day on which a Change in
Control occurs (but immediately prior to the occurrence of the Change in
Control);

in the case of each of
clauses (i) and (ii), so long as, prior to the applicable Lapse Date, Burch has
not breached any provision of this Agreement or Section 9 of the Employment
Agreement (as modified hereby).

(c)           Any dispute between the Company and
Burch over whether an alleged breach by Burch of any provision of this
Agreement or Section 9 of the Employment Agreement (as modified hereby) results
in Burch not being entitled to receive the Retained Restricted Stock on the
dates provided in Section 6(b)(i) or 6(b)(ii) of this Agreement shall be
resolved by arbitration in accordance with Section 8 hereof.

7.             Release
of Claims.

(a)           In consideration of the Severance
Payment and the retention of the Retained Restricted Stock as provided herein,
Burch voluntarily, knowingly and willingly accepts the payments under this
Agreement in full and final settlement of any claims which he has brought or
could bring against the Company in relation to his employment or the
termination of that employment and releases and forever discharges the Company
and its affiliates, together with their respective officers, directors,
partners, shareholders, employees and agents, and the officers, directors,
partners, shareholders, employees and agents of the foregoing, as well as each
of their predecessors, successors and assigns (collectively, “Releasees”),
from any and all charges, complaints, claims, promises, agreements,
controversies, causes of action and demands of any nature whatsoever that he or
his executors, administrators, successors or assigns ever had, now have or
hereafter can, shall or may have against Releasees by reason of any matter,
cause or thing whatsoever arising prior to the execution of this Agreement by
Burch.  The release being provided by
Burch in this Agreement includes, but is not limited to, any rights or claims
relating in any way to Burch’s employment relationship with the Company, or the
termination thereof, or under any statute, including the federal Age
Discrimination in Employment Act of 1967, Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1990, the Americans with Disabilities Act of
1990, the Employee Retirement Income Security Act of 1974, the Family and
Medical Leave Act of 1993, each as amended, and any other federal, state or
local law or judicial decision (U.S. and non-U.S.).including UK and European
Union law for a redundancy payment or for remedies for alleged unfair
dismissal, wrongful dismissal, breach of contract, unlawful discrimination on
grounds of sex, race, age, disability, sexual orientation, religion or belief,
unauthorized deduction from pay, non-payment of holiday pay and breach of the
Working Time Regulations 1998,  detriment
suffered on a ground set out in section 47B of the Employment Rights Act 1996
(protected disclosures, breach of the National Minimum Wage Act 1998 and
compensation under the Data Protection Act 1998. The claims referred to in this
clause do not include any claims in respect of personal injury resulting from
negligence. Burch warrants and represents that, to the best of his knowledge
and belief, he does not currently suffer from any physical or mental condition
or ailment which was caused or contributed to by his employment with the
Company. Burch warrants and represents to the Company that he is not aware of
any facts or circumstances that may give rise to a claim against the Company or
its officers or employees howsoever arising other than those claims specified in
this clause. The waiver in this clause shall have effect irrespective of
whether or not, at the date of this agreement, Burch is or 

 5
 

could be aware of
such claims or have such claims in his contemplation (including such claims
which the Burch becomes aware after the date of this agreement in whole or in
part as a result of new legislation or the development of common law or
equity).

(b)           Burch acknowledges and agrees that he
shall not, directly or indirectly, seek or further be entitled to any personal
recovery in any lawsuit or other claim against the Company or any other
Releasee based on any event arising out of the matters released in Section
7(a).

(c)           Nothing herein shall be deemed to
release (i) any of Burch’s rights to employee benefits to which Burch is
entitled as a former employee of the Company and its affiliates, (ii) any of
the employee benefits that Burch has accrued prior to the date this Agreement
is executed by Burch under the employee benefit plans and arrangements of the
Company or any of its affiliates, (iii) any rights of Burch under this
Agreement, (iv) any rights to reimbursement of business expenses incurred prior
to the Separation Date under applicable Company policy or (v) any claim for
indemnification as provided under Section 10 of the Employment Agreement; provided,
that Burch intends to release, and does hereby release, any right Burch may
have to a pro rata bonus for 2007 under the Employment Agreement or applicable
law.

(d)           In consideration of Burch’s release
set forth in Section 7(a), the Company knowingly and willingly releases and
forever discharges Burch from any and all charges, complaints, claims,
promises, agreements, controversies, causes of action and demands of any nature
whatsoever that the Company now has or hereafter can, shall or may have against
him by reason of any matter, cause or thing whatsoever arising prior to
execution of this Agreement by the Company; provided, however,
that nothing herein is intended to release any claim the Company may have
against Burch for any illegal conduct or conduct constituting gross negligence
or willful misconduct in connection with his services to the Company in any
capacity.

(e)                                  Burch
represents and warrants to the Company that:

(i)                                     Prior to entering into this Agreement, he
received independent legal advice from Jill Andrew of Archon Solicitors (the “Independent
Adviser”), who has signed the certificate at Appendix A;

(ii)                                  Such independent legal advice related to
the terms and effect of this Agreement and, in particular, its effect upon his
ability to make any further claims in connection with his employment or its
termination;

(iii)                               He has provided the Independent Adviser
with all available information which the Independent Adviser requires or may
require in order to advise whether he has any such claims; and

(iv)                              He was advised by the Independent Adviser
that there was in force, at the time when he received the independent legal
advice, a policy of insurance covering the risk of a claim by Burch in respect
of 

 6
 

losses arising in consequence of that advice.

(f)            The
Company will contribute up to a maximum of $500 plus value added tax towards
any legal fees reasonably incurred by Burch in obtaining independent legal
advice regarding the terms and effect of this Agreement.  The contribution will be paid following the
Company receiving from the Independent Adviser’s firm an appropriate invoice
addressed to Burch and expressed to be payable by the Company.

(g)           Burch acknowledges that he has been
offered the opportunity to consider the terms of this Agreement for a period of
at least twenty-one days, although he may sign it sooner should he desire.  Burch further shall have seven additional
days from the date of signing this Agreement to revoke his consent hereto by
notifying, in writing, the Secretary of the Company.  This release of claims given by Burch herein
will not become effective until seven days after the date on which Burch has
signed it without revocation.  Subject to
no revocation taking place, this Agreement will, upon signature by both parties
and following the expiry of the revocation period, be treated as an open
document evidencing a binding agreement.

8.             Arbitration.  Subject to the last sentence of this Section
8, any dispute arising out of or in connection with this Agreement or the
Employment Agreement, including any question regarding their existence,
validity or termination, shall be referred to and finally resolved by
arbitration under the Rules of the LCIA, which Rules are deemed to be
incorporated by reference into this Section 8. 
The tribunal will consist of a single arbitrator mutually nominated by
Burch and the Company and appointed by the LCIA, or, in the absence of an
agreement by Burch and the Company within 10 days after the notice of the
arbitration, selected by the LCIA.  The
place of arbitration will be London, England. 
The language to be used in the arbitration proceedings will be
English.  The parties agree that the
powers of the arbitral tribunal shall include the power under section 39 of the
Arbitration Act 1996 to order on a provisional basis any relief which they
would have the power to grant in a final award. 
The arbitral tribunal shall not have the power (such powers being
reserved to any court of competent jurisdiction) to order a party on an interim
basis to do or refrain from doing anything. 
The decision of the arbitral tribunal shall be final and binding on the
Company and Burch.  All expenses
associated with any arbitration commenced under this Section 8, other than the
legal fees of the parties but including (without limitation) the reasonable
expenses incurred by Burch in connection with the arbitration, shall be borne
solely by the party that prevails in the arbitration (as determined by the
arbitral tribunal).  The parties shall
bear their own attorneys fees and expenses incurred in connection with the
arbitration (including expert witness fees and expenses), except that, in the
event that the arbitral tribunal determines that Burch did not breach any
provision of this Agreement or Section 9 of the Employment Agreement (as
modified hereby), the Company shall pay the attorneys fees and expenses
incurred by Burch in connection with the arbitration.  Judgment upon the award rendered by the
arbitral tribunal may be entered by any court having jurisdiction thereof.  All documents and proceedings in any
arbitration pursuant to this Section 8 shall be confidential and all hearings
shall be held in private, save to the extent necessary to enforce any award, to
take confidential professional advice thereon or in connection with, or to
comply with any requirement of any lawful authority. No public statement shall
be made with regard to any arbitral proceedings save to the extent agreed
between the Parties.  This Section 8
shall not preclude Burch or the Company from seeking injunctive relief,
specific performance or other, 

 7
 

provisional
remedies from a court of appropriate jurisdiction in the event of the breach or
alleged breach of this Agreement or Section 9 of the Employment Agreement (as
modified hereby).

9.             Voluntariness.  Burch acknowledges and agrees that he is
relying solely upon his own judgment in deciding whether to execute this
Agreement (after having obtained legal advice as provided herein); that Burch
is over eighteen years of age and is legally competent to sign this Agreement;
that Burch is signing this Agreement of his own free will; that Burch has read
and understood this Agreement before signing it; and that Burch is signing this
Agreement in exchange for consideration that he believes is satisfactory and
adequate.

10.           Complete
Agreement/Severability.  This
Agreement and the Employment Agreement (as modified hereby) constitute the
entire agreement between the parties hereto, and supersede all prior
agreements, understandings and arrangements, oral or written, between the
parties hereto with respect to the subject matter hereof.  Except as provided in the next following
sentence or as provided for in the Employment Agreement, all provisions and portions
of this Agreement are severable.  If any
provision or portion of this Agreement or the application of any provision or
portion of this Agreement shall be determined to be invalid or unenforceable to
any extent or for any reason, all other provisions and portions of this
Agreement shall remain in full force and shall continue to be enforceable to
the fullest and greatest extent permitted by law; provided, however,
that, to the maximum extent permitted by applicable law, (i) if the validity or
enforceability of the release or claims given by Burch herein is challenged by
Burch or his estate or legal representative, the Company shall have the right,
in its discretion, to suspend any or all of its obligations hereunder during
the pendency of such challenge, and (ii) if, by reason of such challenge, such
release is held to be invalid or unenforceable, (x) the Company shall have no
obligation to provide the Severance Payment, and (y) the Retained Restricted
Stock shall be forfeited.

11.           Return of Company
Property.  Burch confirms that,
except as expressly provided in this Agreement, he has returned all property
belonging to the Company or any of its affiliates, including all
correspondence, memoranda, reports, customer lists, files, books, working
papers and any other documents, databases, computer disks or tapes (in each
case whether originals, copies or extracts), keys, and any other property
belonging to the Company or any of its affiliates and prepared by Burch or
which came into his possession, custody or control in the course of his employment.
Burch confirms that he shall not retain any of the items or copies of such
items.

12.           Notices.  Notices with respect to this Agreement shall
be provided in the same manner as set forth in Section 11(b) of the Employment
Agreement.

13.           Compliance.
Burch and the Company acknowledge that the conditions regulating compromise
agreements including the Employment Rights Act 1996, the Sex Discrimination Act
1975, the Race Relations Act 1976, the Disability Discrimination Act 1995, the
Working Time Regulations 1998, the Employment Equality (Age) Regulations 2006,
the National Minimum Wage Act 1998 have been satisfied in respect of this
Agreement.

14.           No Waiver.  The failure to enforce at any time any of the
provisions of this Agreement or to require at any time performance by the other
party of any of the provisions hereof shall in no way be construed to be a
waiver of such provisions or to affect the validity of 

 8
 

this Agreement, or
any part hereof, or the right of either party thereafter to enforce each and
every such provision in accordance with the terms of this Agreement.

15.           No Assignment.  This Agreement shall be binding upon any and
all successors and assigns of Burch and the Company.  Burch may not assign this Agreement.

16.           Withholding.  Any payment or benefits to be paid or
provided pursuant to this Agreement shall be subject to any and all applicable
withholding taxes or other amounts required by law to be withheld.

17.           Binding Agreement. Subject to
Section 7(g), although this Agreement is marked “Without Prejudice”, it will,
upon signature by both parties, be treated as an open document evidencing a
binding agreement.

18.           Governing Law. This Agreement
shall be governed by and construed in accordance with the internal laws of
England and Wales, without reference to the principles of conflict of laws.

19.           Counterparts.  This Agreement may be executed in any number
of counterparts, but will not take effect until each party has executed at
least one counterpart.  Each counterpart
will constitute an original, but all the counterparts together will constitute
a single agreement.

20.           References.  References to Sections refer to Sections of
this Agreement unless otherwise specifically provided.

[signature page
follows]

 9

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Separation
Date.

	
  

  	
   

  	
  VIRGIN MEDIA INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Stephen
  Burch

  	
   

  	
  /s/ Bryan H. Hall

  	
   

  
	
  Stephen Burch

  	
   

  	
  Name:

  	
  Bryan H. Hall

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  	
   

  

 

APPENDIX A

INDEPENDENT
ADVISER’S CERTIFICATE

I, Jill Andrew,
certify that Stephen Burch (“Burch”) has received independent legal
advice from me as to the terms and effect of this agreement in accordance with
the provisions of the Employments Rights Act 1996, the Sex Discrimination Act
1975, the Race Relations Act 1976, the Disability Discrimination Act 1995, the
Working Time Regulations 1998, the Employment Equality (Age) Regulations 2006
and the National Minimum Wage Act 1998.

I also warrant and
confirm that I am a solicitor of the Supreme Court of England and Wales, and
hold a current practicing certificate. 
My firm, Archon Solicitors, is covered by a policy of insurance, or an
indemnity provided for members of a profession or professional body, which
covers the risk of any claim by Burch in respect of any loss arising in
consequence of such advice that I have given to him in connection with the
terms of this agreement.

	
  Signed:

  	
  /s/ Jill Andrew

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  21.8.07

  	
   

  

 

APPENDIX B

EMPLOYMENT
AGREEMENT

[Intentionally omitted.
Previously filed as Exhibit 10.1 to the Current Report on Form 8-K
of NTL Incorporated (now known as Virgin Media Holdings Inc.) as filed with the
Securities and Exchange Commission on December 21, 2005.]Exhibit 10.19

REVENUE PAYMENT
AGREEMENT

This REVENUE PAYMENT AGREEMENT (“Agreement”) is made this 18th
day of April, 2007, but effective January 5, 2007, by and between NAMI RESOURCES COMPANY L.L.C. a Kentucky limited liability
company with an address of 104 Nami Plaza, Suite 1, London, Kentucky 40741
(hereinafter referred to as “Payor”) and TRUST ENERGY COMPANY, LLC,
a Kentucky limited liability company with an address of 7700 San Felipe, Suite
485, Houston, Texas 77063 (“Payee”).

WHEREAS, Payor
is the operator of the wells listed on Exhibit A
hereto (the “Wells”) and is the current lessee of the leases referenced on Exhibit A  (the “Leases”); and

WHEREAS,
the Wells and Leases are subject to certain mortgages and other liens; and

WHEREAS, as
part of the restructuring of the business of Payor and related companies, Payor
has agreed to make certain payments to Payee; and

WHEREAS,
the holders of the mortgages and liens on the Wells and the Leases have agreed
to release the mortgages and liens on the Wells and the Leases;

NOW,
THEREFORE, for and in consideration of the sum of Ten Dollars
($10.00) and other good and valuable consideration (including the release of
the mortgages and liens on the Wells and the Leases), the receipt and
sufficiency of which consideration is hereby acknowledged, the parties agree as
follows:

1.                                       Payor
agrees to pay to Payee an amount equal to the Net Proceeds (as defined herein),
of the sale of oil and/or gas from the Wells (the “Oil and Gas”).  Said payment shall be made on or before the
thirty (30) days following the end of the month during which the Oil and Gas
was produced and sold.

2.                                       As
used herein, the term “Net Proceeds” shall mean the amount of money equal to
the Gross Proceeds (as defined herein) minus the Expenses (as defined herein).

As used herein, the term “Gross Proceeds” shall mean the amount of
money received by Payor from the sale of the Oil and Gas in the ordinary course
of Payor’s business. Payor agrees that any gas sold from the Wells will be
marketed and sold at not less than the monthly Columbia Gas Transmission Corp.
Appalachia index price as published monthly in the Inside F.E.R.C. Gas Market
Report. .

As used herein, the term “Expenses” shall mean the following:

(a)                                  All
landowner royalties and other burdens on production payable in connection with
the Oil and Gas;

(b)                                 All
severance taxes payable in connection with the Oil and Gas;

 1
 

(c)                                  All
third party transportation costs and marketing fees associated with the sale of
the Oil and Gas;

(d)                                 All
costs of the operation of said Wells, including any repair costs which Payor
may incur in the maintenance or repair of the Wells;  and

(e)                                  Overhead
costs, which for the purposes hereof, shall be deemed to be $60.00 per month
for each Well that is producing all or any part of a calendar month.

The Expenses shall be determined in accordance with the provisions of
the Well Services Agreement and the related Accounting Procedure relating to
the Wells.

3.                                       The
parties acknowledge and agree that by this Agreement the Payee does not and will
not have, or under any circumstances be deemed to have, any interest in the
Leases or the Oil & Gas produced from the Wells.  Payor shall remain the lessee of the Leases
and the operator of the Wells, and Payor shall be solely responsible for the
performance of the Leases and the operation of the Wells.

4.                                       This
Agreement applies only to the Wells listed on Exhibit A
and the Oil and Gas produced from those Wells, and it shall not apply to any
other or subsequent well or wells drilled on the Leases, except for a well
drilled in substantially the same location as one of the Wells to replace such
Well.

5.                                       This
Agreement is binding on the parties and their successors and assigns.  Should the Payor assign the Leases or the
Wells, or any of them, to a third-party, this Agreement and the obligations of
the Payor hereunder shall be binding upon such Assignee.

[THE REMAINDER OF THIS LEFT INTENTIONALLY BLANK;

SIGNATURE PAGE FOLLOWS]

 2
 

 

	
  

  	
  PAYOR:

  
	
   

  	
   

  
	
   

  	
  NAMI
  RESOURCES COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
  BY: NAMI SERVICE COMPANY,
  LLC

  
	
   

  	
   

  
	
   

  	
  ITS: MANAGER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
  Majeed S. Nami

  
	
   

  	
   

  
	
   

  	
  Its: Manager

  
	
   

  	
   

  
	
   

  	
  PAYEE:

  
	
   

  	
   

  
	
   

  	
  TRUST
  ENERGY COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
  BY: VANGUARD
  NATURAL GAS, LLC

  
	
   

  	
   

  
	
   

  	
  ITS: MANAGER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott W.
  Smith

  	
   

  
	
   

  	
  Scott W. Smith

  
	
   

  	
   

  
	
   

  	
  Its: Manager

  

 3
 

EXHIBIT A

Oil and Gas Leases subject to the Revenue Payment Agreement:

1.               Oil and Gas Lease dated July 18, 1929
from Asher Coal Mining Company, as Lessor, to J.A. Henninger, as Lessee,
covering 1770 acres and as recorded in Lease Book 9, Page 242 of the records of
Bell County, Kentucky.

2.               Oil and Gas Lease dated December 16, 1952
from Asher Coal Mining Company, as Lessor, to North American Petroleum Company,
as Lessee, covering 460 acres and as recorded in Lease Book 16, Page 14 of the
records of Bell County, Kentucky.

3.               Oil and Gas Lease dated March 9, 1953
from Asher Coal Mining Company, as Lessor, to North American Petroleum Company,
as Lessee, covering 2500 acres and as recorded in Lease Book 16, Page 197 of
the records of Bell County, Kentucky.

Wells Subject to the Revenue Payment Agreement:

Well Name

Asher 1

Asher 2

Asher 11

Asher 12, 14B, 15,
20, 24, 25, 26, 27

28,29,30,31,32,33,34,35,36,37

Asher 22

Taylor Harris #3

 4

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