Document:

Exhibit
10.27

Base Contract for Sale
and Purchase of Natural Gas

This Base Contract is entered into as of
the following date: March 6, 2007.  The parties to this Base Contract are the
following:

	
  Trust Energy Company, LLC

  	
  and

  	
  North
  American Energy Corporation

  
	
  7800 San Felipe,
  Suite 485, Houston, TX 77063

  	
   

  	
  333 West Vine
  Street, Suite 300, Lexington KY 40507

  
	
  Duns Number:

  	
   

  	
  Duns Number:
  79-544-9073

  
	
  Contract Number:

  	
   

  	
  Contract Number:
  030607VNR1

  
	
  U.S. Federal Tax
  ID Number:

  	
   

  	
  U.S. Federal Tax
  ID Number: 65-0228620

  
	
  Notices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Same as
  above

  	
   

  	
  Same as
  above

  
	
  Attn: Contract
  Administration

  	
   

  	
  Attn: Contract
  Administration

  
	
  Phone: (832)
  327-2259

  	
  Fax: (832)
  327-2260

  	
   

  	
  Phone: (859)
  381-1427

  	
  Fax: (859)
  254-1128

  
	
  Confirmations:

  	
   

  	
   

  
	
  Same as
  above

  	
   

  	
  Same as
  above

  
	
  Attn:

  	
   

  	
  Attn: Contract
  Administration

  
	
  Phone:

  	
  Fax:

  	
   

  	
  Phone: (859)
  381-1427

  	
  Fax: (859)
  254-1128

  
	
  Invoices
  and Payments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Same as
  above

  	
   

  	
  Same as
  above

  
	
  Attn:

  	
   

  	
  Attn: Gas
  Accounting

  
	
  Phone:

  	
  Fax:

  	
   

  	
  Phone: (859)
  381-1427

  	
  Fax: (859)
  254-1128

  
	
   

  	
   

  	
   

  
	
  Wire
  Transfer or ACH Numbers (if applicable)

  	
   

  	
   

  
	
  Bank: Citibank

  	
   

  	
  Bank: NA

  
	
  ABA: 113 193 532

  	
   

  	
  ABA: NA

  
	
  ACCT:
  #9770857924

  	
   

  	
  ACCT: NA

  
	
  Other Details:
  Trust Energy Company, LLC

  	
   

  	
  Other Details:

  

 

This Base Contract incorporated by reference for all purposes the
General Terms and Conditions for Sale and Purchase of Natural Gas published by
the North American Energy Standards Board. The parties hereby agree to the
following provisions offered in said General Terms and Conditions. In the event
the parties fail to check a box, the specified default provision shall apply. Select
only one box from each section.

	
  Section 1.2

  Transaction

  Procedure

  	
  o
  Oral (default)

  X Written

  	
  Section
  7.2
 Payment Date

  	
  X
  25th Day of Month following Month of delivery (default)

  o 10th Day of Month of
  delivery

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  2.5

  Confirm

  Deadline

  	
  X
  2 Business Days after receipt (default)

  o
             Business Days
  after receipt

  	
  Section
  7.2

  Method of

  Payment

  	
  X
  Wire transfer (default)

  o Automated Clearinghouse
  Credit (ACH)

  o Check

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  2.6

  Confirming

  Party

  	
  o
  Seller (default)

  X Buyer

  o  

  	
  Section
  7.7
 Netting

  	
  o
  Netting applies

  X Netting does not apply

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  3.2

  Performance

  Obligation

  	
  X
  Cover Standard (default)

  o Spot Price Standard

  	
  Section
  10.3.1

  Early Termination

  Damages

  	
  X
  Early Termination Damages Apply (default)

  o Early Termination
  Damages Do Not Apply

  
	
   

  	
   

  	
   

  	
   

  
	
  Note:
  the following Spot Price Publication applies to both

  of the immediately preceding

  	
  Section
  10.3.2

  Other Agreement

  Setoffs.

  	
  X
  Other Agreement Setoffs Apply (default)

  o Other Agreement
  Setoffs Do Not Apply

  
	
   

  	
   

  	
   

  
	
  Section
  2.25

  Spot Price

  Publication

  	
  o
  Gas Daily Midpoint (default)

  X   
  Gas Daily Publication, Columbia Gas Trans-Appalachia

  	
  Section
  14.5

  Choice of Law

  	
  Kentucky

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  6
 Taxes

  	
  o   Buyer Pays At and After Delivery
  Point (default)

  X Seller Pays Before and At Delivery
  Point

  	
  Section
  14.10

  Confidentiality

  	
  X
  Confidentiality applies (default)

  o Confidentiality do
  not apply

  
	
  X

  o

  	
  Special
  Provisions:  See Transaction
  Confirmation

  Addendum(s):

  
					

 

N WITNESS WHEREOF, the parties hereto have executed this Base Contract
in duplicate.

	
  Trust Energy Company, LLC

  	
   

  	
  North
  American Energy Corporation

  
	
  Party
  Name

  	
   

  	
  Party
  Name

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Scott W. Smith

  	
   

  	
  By:

  	
  /s/ David B. Rudder

  
	
  Name:

  	
  Scott
  W. Smith

  	
   

  	
  Name:

  	
  David
  B. Rudder

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  President

  
									

 

General Terms and
Conditions

Base Contract for Sale and Purchase of Natural Gas

SECTION
1.         PURPOSE AND PROCEDURES

1.1.     These
General Terms and Conditions are intended to facilitate purchase and sale
transactions of Gas on a Firm or Interruptible basis.  “Buyer” refers to the party receiving Gas and
“Seller” refers to the party delivering Gas. 
The entire agreement between the parties shall be the Contract as
defined in Section 2.7.

The parties have selected either
the “Oral Transaction Procedure” or the “Written Transaction Procedure” as
indicated on the Base Contract.

Oral Transaction Procedure:

1.2.     The parties will use the following Transaction
Confirmation procedure.  Any Gas purchase
and sale transaction may be effectuated in an EDI transmission or telephone
conversation with the offer and acceptance constituting the agreement of the
parties. The parties shall be legally bound from the time they so agree to
transaction terms and may each rely thereon. Any such transaction shall be
considered a “writing” and to have been “signed.” Notwithstanding the foregoing
sentence, the parties agree that Confirming Party shall, and the other party
may, confirm a telephonic transaction by sending the other party a Transaction
Confirmation by facsimile, EDI or mutually agreeable electronic means within
three Business Days of a transaction covered by this Section 1.2 (Oral
Transaction Procedure) provided that the failure to send a Transaction
Confirmation shall not invalidate the oral agreement of the parties. Confirming
Party adopts its confirming letterhead, or the like, as its signature on any
Transaction Confirmation as the identification and authentication of Confirming
Party. If the Transaction Confirmation contains any provisions other than those
relating to the commercial terms of the transaction (i.e., price, quantity,
performance obligation, delivery point, period of delivery and/or
transportation conditions), which modify or supplement the Base Contract or
General Terms and Conditions of this Contract (e.g., arbitration or additional
representations and warranties), such provisions shall not be deemed to be
accepted pursuant to Section 1.3 but must be expressly agreed to by both
parties; provided that the foregoing shall not invalidate any transaction
agreed to by the parties.

Written Transaction Procedure:

1.2           The
parties will use the following Transaction Confirmation procedure.  Should the parties come to an agreement
regarding a Gas purchase and sale transaction for a particular Delivery Period,
the Confirming Party shall, and the other party may, record that agreement on a
Transaction Confirmation and communicated such Transaction Confirmation by facsimile,
EDI or mutually agreeable electronic means, to the other party by the close the
Business Day following the date of agreement. The parties acknowledge that
their agreement will not be binding until the exchange of nonconflicting
Transaction Confirmations or the passage of the Confirm Deadline without
objection from the receiving party, as provided in Section 1.3.

1.3.     If
a sending party’s Transaction Confirmation is materially different from the
receiving party’s understanding of the agreement referred to in Section 1.2,
such receiving party shall notify the sending party via facsimile, EDI or
mutually agreeable electronic means by the Confirm Deadline, unless such
receiving party has previously sent a Transaction Confirmation to the sending
party. The failure of the receiving party to so notify the sending party in
writing by the Confirm Deadline constitutes the receiving party’s agreement to
the terms of the transaction described in the sending party’s Transaction
Confirmation. If there are any material differences between timely sent
Transaction Confirmations governing the same transaction, then neither
Transaction Confirmation shall be binding until or unless such differences are
resolved including the use of any evidence that clearly resolves the
differences in the Transaction Confirmations. In the event of a conflict among
the terms of (i) a binding Transaction Confirmation pursuant to Section 1.2,
(ii) the oral agreement of the parties which may be evidenced by a recorded
conversation, where the parties have selected the Oral Transaction Procedure of
the Base Contract, (iii) the Base Contract, and (iv) these General Terms and
Conditions, the terms of the documents shall govern in the priority listed in
this sentence.

1.4.     The
parties agree that each party may electronically record all telephone
conversations with respect to this Contract between their respective employees,
without any special or further notice to the other party. Each party shall
obtain any necessary consent of its agents and employees to such recording.
Where the parties have selected the Oral Transaction Procedure in Section 1.2
of the Base Contract, the parties agree not to contest the validity or
enforceability of telephonic recordings entered into in accordance with the
requirements of this Base Contract. However, nothing herein shall be construed
as a waiver of any objection to the admissibility of such evidence.

SECTION
2.         DEFINITIONS

The terms set forth
below shall have the meaning ascribed to them below.  Other terms are also defined elsewhere in the
Contract and shall have the meanings ascribed to them herein.

2.1.     “Alternative
Damages” shall mean such damages, expressed in dollars or dollars per MMBtu, as
the parties shall agree upon in the Transaction Confirmation, in the event
either Seller or Buyer fails to perform a Firm obligation to deliver Gas in the
case of Seller or to receive Gas in the case of Buyer.

2.2.     “Base
Contract” shall mean a contract executed by the parties that incorporates these
General Terms and Conditions by reference; that specifies the agreed selections
of provisions contained herein; and that sets forth other information required
herein and any Special Provisions and addendum(s) as identified on page one.

2.3.     “British
thermal unit” or “Btu” shall mean the International BTU, which is also called
the Btu (IT).

2.4.     “Business
Day” shall mean any day except Saturday, Sunday or Federal Reserve Bank
holidays.

2.5.     “Confirm
Deadline” shall mean 5:00 p.m. in the receiving party’s time zone on the second
Business Day following the Day a Transaction Confirmation is received or, if
applicable, on the Business Day agreed to by the parties in the Base Contract;
provided, if the Transaction Confirmation is time stamped after 5:00 p.m. in
the receiving party’s time zone, it shall be deemed received at the opening of
the next Business Day.

 2
 

2.6.     “Confirming Party” shall mean the party
designated in the Base Contract to prepare the forward Transaction
Confirmations to the other party.

2.7.     “Contract” shall mean the legally-binding
relationship established by (i) the Base Contract, (ii) any and all binding
Transaction Confirmations and (iii) where the parties have selected the Oral
Transaction Procedure in Section 1.2 of the Base Contract, any and all
transactions that the parties have entered into through an EDI transmission or
by telephone, but that have not been confirmed in a binding Transaction
Confirmation.

2.8.     “Contract Price” shall mean the amount
expressed in U.S. Dollars per MMBtu to be paid by Buyer to Seller for the
purchase of Gas as agreed to by the parties in a transaction.

2.9.     “Contract Quantity” shall mean the quantity
of Gas to be delivered and taken as agreed to by the parties in a transaction.

2.10.   “Cover Standard,” as referred to in Section
3.2, shall mean that if there is an unexcused failure to take or deliver any
quantity of Gas pursuant to this Contract, then the performing party shall use
commercially reasonable efforts to (i) if Buyer is the performing party, obtain
Gas (or an alternate fuel if elected by Buyer and replacement gas is not
available), or (ii) if Seller is the performing party, sell Gas, in either
case, at a price reasonable for the delivery or production area, as applicable,
consistent with: the amount of notice provided by the non-performing party; the
immediacy of the Buyer’s Gas consumption needs or Seller’s Gas sales
requirements, as applicable; the quantities involved; and the anticipated
length of failure by the nonperforming party.

2.11.   “Credit Support Obligation(s)” shall mean any
obligation(s) to provide or establish credit support for, or on behalf of, a
party to this Contract, such as an irrevocable standby letter of credit, a
margin agreement, a prepayment, a security interest in an asset, a performance
bond, guaranty, or other good and sufficient security of a continuing nature.

2.12.   “Day”
shall mean a period of 24 consecutive hours, coextensive with a “day” as
defined by the Receiving Transporter in a particular transaction.

2.13.   “Delivery Period” shall be the period during
which deliveries are to be made as agreed to by the parties in a transaction.

2.14.   “Delivery Point(s)” shall mean such point(s)
as are agreed to by the parties in a transaction.

2.15.   “EDI” shall mean an electronic data
interchange pursuant to an agreement entered into by the parties, specifically
relating to the communication of Transaction Confirmations under this Contract.

2.16.   “EFP” shall mean the purchase, sale or
exchange of natural Gas as the “physical” side of an exchange for physical transaction
involving gas futures contracts. EFP shall incorporate the meaning and remedies
of “Firm,” provided that a party’s excuse for nonperformance of its obligations
to deliver or receive Gas will be governed by the rules of the relevant futures
exchange regulated under the Commodity Exchange Act.

2.17.   “Firm”
shall mean that either party may interrupt its performance without liability
only to the extent that such performance is prevented for reasons of Force
Majeure; provided, however, that during Force Majeure interruptions, the party
invoking Force Majeure may be responsible for any Imbalance Charges as set
forth in Section 4.3 related to its interruption after the nomination is made
to the Transporter and until the change in deliveries and/or receipts is
confirmed by the Transporter.

2.18.   “Gas”
shall mean any mixture of hydrocarbons and noncombustible gases in a gaseous
state consisting primarily of methane.

2.19.   “Imbalance
Charges” shall mean any fees, penalties, costs or charges (in cash or in kind)
assessed by a Transporter for failure to satisfy the Transporter’s balance
and/or nomination requirements.

2.20.   “Interruptible”
shall mean that either party may interrupt its performance at any time for any
reason, whether or not caused by an event of Force Majeure, with no liability,
except such interrupting party may be responsible for any Imbalance Charges as
set forth in Section 4.3 related to its Interruption after the nomination is
made to the Transporter and until the change in deliveries and/or receipts is
confirmed by Transporter.

2.21.   “MMBtu” shall mean one million British
thermal units, which is equivalent to one dekatherm.

2.22.   “Month” shall mean the period beginning on
the first Day of the calendar month and ending immediately prior to the
commencement of the first Day of the next calendar month.

2.23.   “Payment Date” shall mean a date, as
indicated on the Base Contract, on or before which payment is due Seller for
Gas received by Buyer in the previous Month.

2.24.   “Revolving Transporter” shall mean the
Transporter receiving Gas at a Delivery Point, or absent such receiving
Transporter, the Transporter delivering Gas at a Delivery Point.

2.25.   “Scheduled Gas” shall mean the quantity of
Gas confirmed by Transporter(s) for movement, transportation or management.

2.26.   “Spot Price” as referred to in Section 3.2
shall mean the price listed in the publication indicated on the Base Contract,
under the listing applicable to the geographic location closest in proximity to
the Delivery Point(s) for the relevant Day; provided, if there is no single
price published for such location for such Day, but there is published a range
of prices, then the Spot Price shall be the average of such high and low
prices. If no price or range of prices is published for such Day, then the Spot
Price shall be the average of the following: (i) the price (determined as
stated above) for the first Day for which a price or range of prices is
published that next precedes the relevant Day; and (ii) the price (determined
as stated above) for the first Day for which a price or range of prices is
published that next follows the relevant Day.

2.27.   “Transaction Confirmation” shall mean a
document, similar to the form of Exhibit A, setting forth the terms of a
transaction formed pursuant to Section 1 for a particular Delivery Period.

2.28.   “Termination Option” shall mean the option of
either party to terminate a transaction in the event that the other party fails
to perform a Firm obligation to deliver Gas in the case of Seller or to receive
Gas in the case of Buyer for a designated number of days during a period as
specified on the applicable Transaction Confirmation.

 3
 

2.29.   “Transporter(s)”
shall mean all Gas gathering or pipeline companies, or local distribution
companies, acting in the capacity of a transporter, transporting Gas for Seller
or Buyer upstream or downstream, respectively, of the Delivery Point pursuant
to a particular transaction.

SECTION
3.         PERFORMANCE OBLIGATION

3.1.     Seller
agrees to sell and deliver, and Buyer agrees to receive and purchase, the
Contract Quantity for a particular transaction in accordance with the terms of
the Contract. Sales and purchases will be on a Firm or interruptible basis, as
agreed to by the parties in a transaction.

The parties have selected either
the “Cover Standard” or the “Spot Price Standard” as indicated on the Base
Contract.

Cover Standard:

3.2.     The sole and exclusive remedy of the
parties in the event of a breach of a Firm obligation to deliver or receive Gas
shall be recovery of the following: (i) in the event of a breach by Seller on
any Day(s), payment by Seller to Buyer in an amount equal to the positive
difference, if any, between the purchase price paid by Buyer utilizing the
Cover Standard and the Contract Price, adjusted for commercially reasonable
differences in transportation costs to or from the Delivery Point(s),
multiplied by the difference between the Contract Quantity and the quantity
actually delivered by Seller for such Day(s); or (ii) in the event of a breach
by Buyer on any Day(s), payment by Buyer to Seller in the amount equal to the
positive difference, if any, between the Contract Price and the price received
by Seller utilizing the Cover Standard for the resale of such Gas, adjusted for
commercially reasonable differences in transportation costs to or from the
Delivery Point(s), multiplied by the difference between the Contract Quantity
and the quantity actually taken by Buyer for such Day(s); or (iii) in the event
that Buyer has used commercially reasonable efforts to replace the Gas or
Seller has used commercially reasonable efforts to sell the Gas to a third
party, and no such replacement or sale is available, then the sole and
exclusive remedy of the performing party shall be any unfavorable difference
between the Contract Price and the Spot Price, adjusted for such transportation
to the applicable Delivery Point, multiplied by the difference between the
Contract Quantity and the quantity actually delivered by Seller and received by
Buyer for such Day(s). Imbalance Charges shall not be recovered under this
Section 3.2, but Seller and/or Buyer shall be responsible for Imbalance
Charges, if any, as provided in Section 4.3.  The amount of such unfavorable difference
shall be payable five Business Days after presentation of the performing
party’s invoices, which shall set forth the basis upon which such amount was
calculated.

Spot Price Standard:

3.2.          The
sole and exclusive remedy of the parties in the event of a breach of a Firm
obligation to deliver or receive Gas shall be recovery of the following: (i) in
the event of a breach by Seller on any Day(s), payment by Seller in an amount
equal to the difference between the Contract Quantity and the actual quantity
delivered by Seller and received by Buyer for such Day(s), multiplied by the
positive difference, if any, obtained by subtracting the Contract Price from
the Spot Price; or (ii) in the event of a breach by Buyer on any Day(s),
payment by Buyer to Seller in an amount equal to the difference between the
Contract Quantity and the actual quantity delivered by Seller and received by
Buyer for such Day(s), multiplied by the positive difference, if any, obtained
by subtracting the applicable Spot Price from the Contract Price. Imbalance
Charges shall not be recovered under this Section 3.2, but Seller and/or
Buyer shall be responsible for Imbalance Charges, if any, as provided in
Section4.3. The amount of such unfavorable difference shall be payable five
Business Days after presentation of the performing party’s invoice, which shall
set forth the basis upon which such amount was calculated.

3.3.     Notwithstanding Section 3.2, the parties
may agree to Alternative Damages in a Transaction Confirmation executed in
writing by both parties.

3.4.     In
addition to Sections 3.2 and 3.3, the parties may provide for a Termination
Option in a Transaction Confirmation executed in writing by both parties. The
Transaction Confirmation containing the Termination Option will designate the
length of nonperformance triggering the Termination Option and the procedures
for exercise thereof, how damages for nonperformance will be compensated, and
how liquidation costs will be calculated.

SECTION
4.         TRANSPORTATION, NOMINATIONS,
AND IMBALANCES

4.1.     Seller
shall have the sole responsibility for transporting the Gas to the Delivery
Point(s). Buyer shall have the sole responsibility for transporting the Gas
from the Delivery Point(s).

4.2.     The
parties shall coordinate their nomination activities, giving sufficient time to
meet the deadlines of the affected Transporter(s). Each party shall give the
other party timely prior Notice, sufficient to meet the requirements of all
Transporter(s) involved in the transaction, of the quantities of Gas to be
delivered and purchased each Day.  Should
either party become aware that actual deliveries at the Delivery Point(s) are
greater or lesser than the Scheduled Gas, such party shall promptly notify the
other party.

4.3.     The
parties shall use commercially reasonable efforts to avoid imposition of any
Imbalance Charges. If Buyer or Seller receives an invoice from a Transporter
that includes Imbalance Charges, the parties shall determine the validity as
well as the cause of such Imbalance Charges. If the Imbalance Charges were
incurred as a result of Buyer’s receipt of quantities of Gas greater than or
less than the Scheduled Gas, then Buyer shall pay for such Imbalance Charges or
reimburse Seller for such Imbalance Charges paid by Seller. If the Imbalance
Charges were incurred as a result of Seller’s delivery of quantities of Gas
greater than or less than the Scheduled Gas, then Seller shall pay for such
Imbalance Charges or reimburse Buyer for such Imbalance Charges paid by Buyer.

SECTION 5.         QUALITY AND MEASUREMENT

All Gas delivered by Seller shall meet the
pressure, quality and heat content requirements of the Receiving Transporter.
The unit of quantity measurement for purposes of this Contract shall be one
MMBtu dry. Measurement of Gas quantities hereunder shall be in accordance with
the established procedures of the Receiving Transporter.

 4
 

SECTION
6.         TAXES

The parties have selected either
“Buyer pays At and After Delivery Point” or “Seller Pays Before and At Delivery
Point” as indicated on the Base Contract.

Buyer Pays at and After Delivery
Point:

Seller shall pay or cause to be paid all
taxes, fees, levies, penalties, licenses or charges imposed by any government
authority (“Taxes”) on or with respect to the Gas prior to the Delivery
Point(s). Buyer shall pay or caused to be paid all Taxes on or with respect to
the Gas at the Delivery Point(s) and all Taxes after the Delivery Point(s). If
a party is required to remit or pay Taxes that are the other party’s
responsibility hereunder, the party responsible for such Taxes shall promptly
reimburse the other party for such Taxes. Any party entitled to an exemption
from any such Taxes or charges shall furnish the other party any necessary
documentation thereof.

Seller Pays Before and At
Delivery Point:

Seller shall pay or cause to be paid all
taxes, fees, levies, penalties, licenses or charges imposed by any government
authority (“Taxes”) on or with respect to the Gas prior to the Delivery
Point(s) and all Taxes at the Delivery Point(s). Buyer shall pay or cause to be
paid all Taxes on or with respect to the Gas after the Delivery Point(s). If a
party is required to remit or pay Taxes that are the other party’s
responsibility hereunder, the party responsible for such Taxes shall promptly
reimburse the other party for such Taxes. Any party entitled to an exemption
from such Taxes or charges shall furnish the other party any necessary
documentation thereof.

SECTION 7.         BILLING, PAYMENT, AND AUDIT

7.1.     Seller
shall invoice Buyer for Gas delivered and received in the preceding Month and
for any other applicable charges, providing supporting documentation acceptable
in industry practice to support the amount charged. If the actual quantity
delivered is not known by the billing date, billing will be prepared based on
the quantity of Scheduled Gas. The invoiced quantity will then be adjusted to
the actual quantity on the following Month’s billing or as soon thereafter as
actual delivery information is available.

7.2.     Buyer
shall remit the amount due under Section 7.1 in the manner specified in the
Base Contract, in immediately available funds, on or before the later of the
Payment Date or 10 Days after receipt of the invoice by Buyer, provided that if
the Payment Date is not a Business Day, payment is due on the next Business Day
following that date. In the event any payments are due Buyer hereunder, payment
to Buyer shall be made in accordance with this Section 7.2.

7.3.     In
the event payments become due pursuant to Sections 3.2 and 3.3, the performing
party may submit an invoice to the nonperforming party for an accelerated
payment setting forth the basis upon which the invoiced amount was calculated.
Payment from the nonperforming party will be due five Business Days after
receipt of invoice.

7.4.     If
the invoiced party, in good faith, disputes the amount of any such invoice or
any part thereof, such invoiced party will pay such amount as it concedes to be
correct; provided, however, if the invoiced party disputes the amount due, it
must provide supporting documentation acceptable in industry practice to
support the amount paid or disputed. In the event the parties are unable to
resolve such dispute, either party may pursue any remedy available at law or in
equity to enforce its rights pursuant to this Section.

7.5.     If
the invoiced party fails to remit the full amount payable when due, interest on
the unpaid portion shall accrue from the date due until the date of payment at
a rate equal to the lower of (i) the then-effective prime rate of interest
published under “Money Rates” by The Wall Street Journal, plus two percent per
annum; or (ii) the maximum applicable lawful interest rate.

7.6.     A party shall have the right, at its own
expense, upon reasonable Notice and at reasonable times, to examine and audit
and to obtain copies of the relevant portion of the books, records, and
telephone recordings of the other party only to the extent reasonably necessary
to verify the accuracy of any statement, charge, payment or computation made
under the Contract. This right to examine, audit and to obtain copies shall not
be available with respect to proprietary information not directly relevant to
transactions under this Contract. All invoices and billings shall be
conclusively presumed final and accurate and all associated claims for under or
overpayments shall be deemed waived unless such invoices or billings are
objected to in writing, with adequate explanation and/or documentation, within
two years after the Month of Gas delivery. All retroactive adjustments under
Section 7 shall be paid in full by the party owing payment within 30 Days of
Notice and substantiation of such inaccuracy.

7.7.     Unless the parties have elected on the Base
Contract not to make this Section 7.7 applicable to this Contract, the parties
shall net all undisputed amounts due and owing, and/or past due, arising under
the Contract such that the party owing the greater amount shall make a single
payment of the net amount to the other party in accordance with Section 7;
provided that no payment required to be made pursuant to the terms of any
Credit Support Obligation or pursuant to Section 7.3 shall be subject to
netting under this Section. If the parties have executed a separate netting
agreement, the terms and conditions therein shall prevail to the extent
inconsistent herewith.

SECTION 8.         TITLE, WARRANTY, AND INDEMNITY

8.1.     Unless otherwise specifically agreed, title
to the Gas shall pass from Seller to Buyer at the Delivery Point(s). Seller
shall have responsibility for and assume any liability with respect to the Gas
prior to its delivery to Buyer at the specified Delivery Point(s). Buyer shall
have responsibility for and any liability with respect to said Gas after its
delivery to Buyer at the Delivery Point(s).

8.2.     Seller warrants that it will have the right
to convey and will transfer good and merchantable title to all Gas sold
hereunder and delivered by it to Buyer, free and clear of all liens,
encumbrances, and claims. EXCEPT AS PROVIDED IN THIS SECTION 8.2 AND IN SECTION
14.8, ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF
MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE, ARE DISCLAIMED.

8.3.     Seller agrees to indemnify Buyer and save
it harmless from all losses, liabilities or claims including reasonable
attorneys’ fees and costs of court (“Claims”), from any and all persons,
arising from or out of claims of title, personal injury or property damage from
said Gas or other charges thereon which attach before title passes to Buyer.
Buyer agrees to indemnify Seller and save it

 5
 

harmless from all
Claims, from any and all persons, arising from or out of claims regarding
payment, personal injury or property damage from said Gas or other charges
thereon which attach after title passes to Buyer.

8.4.     Notwithstanding
the other provisions of this Section 8, as between Seller and Buyer, Seller
will be liable for all Claims to the extent that such arise from the failure of
Gas delivered by Seller to meet the quality requirements of Section 5.

SECTION
9.         NOTICES

9.1.     All
Transaction Confirmations, invoices, payments and other communications made
pursuant to the Base Contract (“Notices”) shall be made to the addresses
specified in writing by the respective parties from time to time.

9.2.     All
Notices required hereunder may be sent by facsimile or mutually acceptable
electronic means, a nationally recognized overnight courier service, first
class mail or hand delivered.

9.3.     Notice
shall be given when received on a Business Day by the addressee. In the absence
of proof of the actual receipt date, the following presumptions will apply.
Notices sent by facsimile shall be deemed to have been received upon the
sending party’s receipt of its facsimile machine’s confirmation of successful
transmission. If the day on which such facsimile is received is not a Business
Day or is after five p.m. on a Business Day, then such facsimile shall be
deemed to have been received on the next following Business Day. Notice by
overnight mail or courier shall be deemed to have been received on the next
Business Day after it was sent or such earlier time as is confirmed by the
receiving party. Notice via first class mail shall be considered delivered five
Business Day after mailing.

SECTION 10.       FINANCIAL RESPONSBILITY

10.1.   If
either party (“X”) has reasonable grounds for insecurity regarding the
performance of any obligation under this Contract (whether or not then due) by
the other party (“Y”) (including, without limitation, the occurrence of a
material change in the creditworthiness of Y), X may demand Adequate Assurance
of Performance. “Adequate Assurance of Performance” shall mean sufficient
security in the form, amount and for the term reasonably acceptable to X,
including, but not limited to, a standby irrevocable letter of credit, a
prepayment, a security interest in an asset or a performance bond or guaranty
(including the issuer of any such security).

10.2.   In
the event (each an (“Event of Default”) either party (the “Defaulting Party”)
or its guarantor shall: (i) make an assignment or any general arrangement for
the benefit of creditors; (ii) file a petition or otherwise commence, authorize
or acquiesce in the commencement of a proceeding or case under any bankruptcy
or similar law for the protection of creditors or have such petition filed or
proceeding commenced against it; (ii) otherwise become bankrupt or insolvent
(however evidenced); (iv) be unable to pay its debts as they fall due; (v) have
receiver, provisional liquidator, conservator, custodian, trustee or other
similar official appointed with respect to it or substantially all of its
assets; (vi) fail to perform any obligation to the other party with respect to
any Credit Support Obligations relating to the Contract; (vii) fail to give
Adequate Assurance of Performance under Section 10.1 within 48 hours but at
least one Business Day of a written request by the other party; or (viii) not
have paid any amount due the other party hereunder on or before the second
Business Day following written Notice that such payment is due; then the other
party (the “Non-Defaulting Party”) shall have the right, at its sole election,
to immediately withhold and/or suspend deliveries or payments upon Notice
and/or to terminate and liquidate the transactions under the Contract, in the
manner provided in Section 10.3, in addition to any and all other remedies
available hereunder.

10.3.   If
an Event of Default has occurred and is continuing, the Non-Defaulting Party
shall have the right, by Notice to the Defaulting Party, to designate a Day, no
earlier than the Day such Notice is given and no later than 20 Days after such
Notice is given, as an early termination date (the “Early Termination Date”)
for the liquidation and termination pursuant to Section 10.3.1 of all
transactions under the Contract, each a “Terminated Transaction.” On the Early
Termination Date, all transaction will terminate, other than those transactions,
if any, that may not be liquidated and terminated under applicable law or that
are, in the reasonable opinion of the Non-Defaulting Party, commercially
impracticable to liquidate and terminate (“Excluded Transactions”), which
Excluded Transactions must be liquidated and terminated as soon thereafter as
is reasonably practicable, and upon termination shall be a Terminated Transaction
and be valued consistent with Section 10.3.1 below. With respect to each
Excluded Transaction, its actual termination date shall be the Early
Termination Date for purposes of Section 10.3.1.

The parties have selected either
“Early Termination Damages Apply” or “Early Termination Damages Do Not Apply”
as indicated on the Base Contract.

Early Termination Damages Apply:

10.3.1.     As of the Early Termination Date, the
Non-Defaulting Party shall determine, in good faith and in a commercially
reasonable manner, (i) the amount owed (whether or not then due) by each party
with respect to all Gas delivered and received between the parties under
Terminated Transactions and Excluded Transactions on and before the Early
Termination Date and all other applicable charges relating to such deliveries
and receipts (including without limitation any amounts owed under
Section 3.2), for which payment has not yet been made by the party that
owes such payment under this Contract and (ii) the Market Value, as defined
below, of each Terminated Transaction. The Non-Defaulting Party shall (x)
liquidate and accelerate each Terminated Transaction at its Market Value, so
that each amount equal to the difference between such Market Value and the
Contract Value, as defined below, of such Terminated Transaction(s) shall be
due to the Buyer under the Terminated Transaction(s) if such Market Value
exceeds the Contract Value and to the Seller if the opposite is the case; and
(y) where appropriate, discount each amount then due under clause (x) above to
present value in a commercially reasonable manner as of the Early Termination
Date (to take account of the period between the date of liquidation and the
date on which such amount would have otherwise been due pursuant to the
relevant Terminated Transactions).

For purposes of this
Section 10.3.1, “Contract Value” means the amount of Gas remaining to be
delivered or purchased under a transaction multiplied by the Contract Price,
and “Market Value” means the amount of Gas remaining to be delivered or
purchased under a transaction multiplied by the market price for a similar
transaction at the Delivery Point determined by the Non-Defaulting Party in a
commercially reasonable manner. To ascertain the Market Value, the
Non-Defaulting Party may consider, among other valuations, any or all of the
settlement prices of NYMEX Gas futures contracts, quotations from leading
dealers in energy swap

 6
 

contracts or physical gas trading markets,
similar sales or purchases and any other bona fide third-party offers, all
adjusted for the length of the term and differences in transportation costs. A
party shall not be required to enter into a replacement transaction(s) in order
to determine the Market Value. Any extension(s) of the term of a transaction to
which parties are not bound as of the Early Termination Date (including but not
limited to “evergreen provisions”) shall not be considered in determining
Contract Values and Market Values. For the avoidance of doubt, any option
pursuant to which one party has the right to extend the term of a transaction
shall be considered in determining Contract Values and Market Values. The rate
of interest used in calculating net present value shall be determined by the
Non-Defaulting Party in a commercially reasonable manner.

Early Termination Damages Do Not
Apply:

        10.3.1.  
As of the Early Termination Date, the Non-Defaulting Party shall
determine, in good faith and in a commercially reasonable manner, the amount
owed (whether or not then due) by each party with respect to all Gas delivered
and received between the parties under Terminated Transactions and Excluded
Transactions on and before the Early Termination Date and all other applicable
charges relating to such deliveries and receipts (including without limitation
any amounts owed under Section 3.2), for which payment has not yet been made by
the party that owes such payment under this Contract.

The
parties have selected either “Other Agreement Setoffs Apply” or “Other
Agreement Setoffs Do Not Apply” as indicated on the Base Contract.

Other
Agreement Setoffs Apply:

10.3.2.     The Non-Defaulting Party shall net or aggregate, as
appropriate, any and all amounts owing between the parties under Section
10.3.1, so that all such amounts are netted or aggregated to a single
liquidated amount, payable by one party to the other (the “Net Settlement
Amount”). At its sole option and without prior Notice to the Defaulting Party,
the Non-Defaulting Party may setoff (i) any Net Settlement Amount owed to the
Non-Defaulting Party against any margin or other collateral held by it in
connection with any Credit Support Obligation relating to the Contract, or (ii)
any Net Settlement Amount payable to the Defaulting Party against any amount(s)
payable by the Defaulting Party to the Non-Defaulting Party under any other
agreement or arrangement between the parties.

Other Agreement Setoffs Do Not
Apply:

      10.3.2      The Non-Defaulting Party shall net or
aggregate, as appropriate, any and all amounts owing between the parties under
Section 10.3.1, so that all such amounts are netted or aggregated to a single
liquidated amount payable by one party to the other (the “Net Settlement Amount”).
At its sole option and without prior Notice to the Defaulting Party, the
Non-Defaulting Party may setoff any Net Settlement Amount owed to the
Non-Defaulting Party against any margin or other collateral held by it in
connection with any Credit Support Obligation relating to the Contract.

10.3.3.     If any obligation that is to be included in
any netting, aggregation or setoff pursuant to Section 10.3.2 is unascertained,
the Non-Defaulting Party may in good faith estimate that obligation and net,
aggregate or setoff, as applicable, in respect of the estimate, subject to the
Non-Defaulting Party accounting to the Defaulting Party when the obligation is
ascertained. Any amount not then due which is included in any netting,
aggregation or setoff pursuant to Section 10.3.2 shall be discounted to net
present value in a commercially reasonable manner determined by the
Non-Defaulting Party.

10.4.   As
soon as practicable after a liquidation, Notice shall be given by the
Non-Defaulting Party to the Defaulting Party of the Net Settlement Amount, and
whether the Net Settlement Amount is due to or due from the Non-Defaulting
Party. The Notice shall include a written statement explaining in reasonable
detail the calculation of such amount, provided that failure to give such
Notice shall not affect the validity or enforceability of the liquidation or
give rise to any claim by the Defaulting Party against the Non-Defaulting
Party. The Net Settlement Amount shall be paid by the close of business on the
second Business Day following such Notice, which date shall not be earlier than
the Early Termination Date. Interest on any unpaid portion of the Net
Settlement Amount shall accrue from the date due until the date of payment at a
rate equal to the lower of (i) the then-effective prime rate of interest
published under “Money Rates” by The Wall Street Journal, plus two percent per
annum; or (ii) the maximum applicable lawful interest rate.

10.5.   The
parties agree that the transactions hereunder constitute a “forward contract” within
the meaning of the United States Bankruptcy Code and that Buyer and Seller are
each “forward contract merchants” within the meaning of the United States
Bankruptcy Code.

10.6.   The
Non-Defaulting Party’s remedies under this Section 10 are the sole and
exclusive remedies of the Non-Defaulting Party with respect to the occurrence
of any Early Termination Date. Each party reserves to itself all other rights,
setoffs, counterclaims and other defenses that it is or may be entitled to
arising from the Contract.

10.7.   With
respect to this Section 10, if the parties have executed a separate netting
agreement with close-out netting provisions, the terms and conditions therein
shall prevail to the extent inconsistent herewith.

SECTION
11.       FORCE MAJEURE

11.1.   Except
with regard to a party’s obligation to make payment(s) due under Section 7,
Section 10.4, and Imbalance Charges under Section 4, neither party shall be
liable to the other for failure to perform a Firm obligation, to the extent
such failure was caused by Force Majeure. The term “Force Majeure” as employed
herein means any cause not reasonably within the control of the party claiming
suspension, as further defined in Section 11.2.

11.2.   Force
Majeure shall include, but not be limited to, the following: (i) physical
events such as acts of God, landslides, lightning, earthquakes, fires, storms
or storm warnings, such as hurricanes, which result in evacuation of the
affected area, floods, washouts, explosions, breakage or accident or necessity
of repairs to machinery or equipment or lines of pipe; (ii) weather related
events affecting an entire geographic region, such as low temperatures which
cause freezing or failure of wells or lines of pipe; (iii) interruption and/or
curtailment of Firm transportation and/or storage by Transporters; (iv) acts of
other such as strikes, lockouts or other industrial disturbances, riots,
sabotage, insurrections or wars; and (v) governmental actions such as necessity
for compliance

 7
 

with any court order, law, statute, ordinance,
regulation, or policy having the effect of law promulgated by a governmental
authority having jurisdiction. Seller and Buyer shall make reasonable efforts
to avoid the adverse impacts of a Force Majeure and to resolve the event or
occurrences once it has occurred in order to resume performance.

11.3.   Neither
party shall be entitled to the benefit of the provisions of Force Majeure to
the extent performance is affected by any or all of the following
circumstances: (i) the curtailment of interruptible or secondary Firm
transportation unless primary, in-path, Firm transportation is also curtailed;
(ii) the party claiming excuse failed to remedy the condition and to resume the
performance of such covenants or obligations with reasonable dispatch; or (iii)
economic hardship, to include, without limitation, Seller’s ability to sell Gas
at a higher or more advantageous price than the Contract Price, Buyer’s ability
to purchase Gas at a lower or more advantageous price than the Contract Price,
or a regulatory agency disallowing, in whole or in part, the pass through of
costs resulting from this Agreement; (iv) the loss of Buyer’s market(s) or
Buyer’s inability to use or resell Gas purchased hereunder, except, in either
case, as provided in Section 11.2; or (v) the loss or failure of Seller’s gas
supply or depletion of reserves, except, in either case, as provided in Section
11.2. The party claiming Force Majeure shall not be excused from the
responsibility for Imbalance Charges.

11.4.   Notwithstanding
anything to the contrary herein, the parties agree that the settlement of
strikes, lockouts or other industrial disturbances shall be within the sole
discretion of the party experiencing such disturbance.

11.5.   The
party whose performance is prevented by Force Majeure must provide Notice to
the other party. Initial Notice may be given orally; however, written Notice
with reasonably full particulars of the event or occurrence is required as soon
as reasonably possible. Upon providing written Notice of Force Majeure to the other
party, the affected party will be relieved of its obligation, from the onset of
the Force Majeure event, to make or accept delivery of Gas, as applicable, to
the extent and for the duration of Force Majeure, and neither party shall be
deemed to have failed in such obligations to the other during such occurrence
or event.

11.6.   Notwithstanding
Sections 11.2 and 11.3, the parties may agree to alternative Force Majeure
provisions in a Transaction Confirmation executed in writing by both parties.

SECTION
12.       TERM

This Contract may be terminated on 30 Day’s
written Notice, but shall remain in effect until the expiration of the latest
Delivery Period of any transaction(s). The rights of either party pursuant to
Section 7.6 and Section 10, the obligations to make payment hereunder, and the
obligation of either party to indemnify the other, pursuant hereto shall
survive the termination of the Base Contract or any transaction.

SECTION
13.       LIMITATIONS

FOR BREACH OF ANY PROVISION FOR WHICH AN
EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED, SUCH EXPRESS REMEDY OR
MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY. A PARTY’S LIABILITY
HEREUNDER SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER
REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. IF NO REMEDY OR MEASURE OF
DAMAGES IS EXPRESSLY PROVIDED HEREIN OR IN A TRANSACTION, A PARTY’S LIABILITY
SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY. SUCH DIRECT ACTUAL DAMAGES
SHALL BE THE SOLE AND EXCLUSIVE REMEDY, AND ALL OTHER REMEDIES OR DAMAGES AT LAW
OR IN EQUITY ARE WAIVED. UNLESS EXPRESSLY HEREIN PROVIDED, NEITHER PARTY SHALL
BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT
DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, BY STATUTE, IN
TORT OR CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE. IT IS THE INTENT
OF THE PARTIES THAT THE LIMITATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE
OF DAMAGES BE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING
THE NEGLIGENCE OF ANY PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR
CONCURRENT, OR ACTIVE OR PASSIVE.  TO THE
EXTENT ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES
ACKNOWLEDGE THAT THE DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE, OR
OTHERWISE OBTAINING AN ADEQUATE REMEDY IS INCOVENIENT AND THE DAMAGES
CALCULATED HEREUNDER CONSTITUTE A REASONABLE APPROXIMATION OF THE HARM OR LOSS.

SECTION
14.       MISCELLANEOUS

14.1.   This
Contract shall be binding upon and inure to the benefit of the successors,
assigns, personal representatives, and heirs of the respective parties hereto,
and the covenants, conditions, rights and obligations of this Contract shall
run for the full term of this Contract. No assignment of this Contract, in
whole or in part, will be made without the prior written consent of the
non-assigning party (and shall not relieve the assigning party from liability
hereunder), which consent will not be unreasonably withheld or delayed;
provided, either party may (i) transfer, sell, pledge, encumber, or assign this
Contract or the accounts, revenues, or proceeds hereof in connection with any
financing or other financial arrangements, or (ii) transfer its interest to any
parent or affiliate by assignment, merger or otherwise without the prior
approval of the other party. Upon any such assignment, transfer and assumption,
the transferor shall remain principally liable for and shall not be relieved of
or discharged from any obligations hereunder.

14.2.   If
any provision in this Contract is determined to be invalid, void or unenforceable
by any court having jurisdiction, such determination shall not invalidate,
void, or make unenforceable any other provision, agreement or covenant of this
Contract.

14.3.   No
waiver of any breach of this Contract shall be held to be a waiver of any other
or subsequent breach.

14.4.   This
Contract sets forth all understandings between the parties respecting each
transaction subject hereto, and any prior contracts, understandings and
representations, whether oral or written, relating to such transactions are
merged into and superseded by this Contract and any effective transaction(s).
This Contract may be amended only by a writing executed by both parties.

14.5.   The interpretation and performance of this
Contract shall be governed by the laws of the jurisdiction as indicated on the
Base Contract, excluding, however, any conflict of laws rule which would apply
the law of another jurisdiction.

 8
 

14.6.   This
Contract and all provisions herein will be subject to all applicable and valid
statutes, rules, orders and regulations of any governmental authority having
jurisdiction over the parties, their facilities, or Gas supply, this Contract
or transaction or any provisions thereof.

14.7.   There
is no third party beneficiary to this Contract.

14.8.   Each
party to this Contract represents and warrants that it has full and complete
authority to enter into and perform this Contract. Each person who executes
this Contract on behalf of either party represents and warrants that it has
full and complete authority to do so and that such party will be bound thereby.

14.9.   The
headings and subheadings contained in this Contract are used solely for
convenience and do not constitute a part of this Contract between the parties
and shall not be used to constitute or interpret the provisions of this
Contract.

14.10. Unless
the parties have elected on the Base Contract not to make this Section 14.10
applicable to this Contract, neither party shall disclose directly or
indirectly without the prior written consent of the other party the terms of
any transaction to a third party (other than the employees, lenders, royalty
owners, counsel, accountants and other agents of the party, or prospective
purchasers of all or substantially all of a party’s assets or of any rights
under this Contract, provided such persons shall have agreed to keep such terms
confidential) except (i) in order to comply with any applicable law, order,
regulation, or exchange rule, (ii) to the extent necessary for the enforcement
of this Contract, (iii) to the extent necessary to implement any transaction,
or (iv) to the extent such information is delivered to such third party for the
sole purpose of calculating a published index. Each party shall notify the
other party of any proceeding of which it is aware which may result in
disclosure of the terms of any transaction (other than as permitted hereunder)
and use reasonable efforts to prevent or limit the disclosure. The existence of
this Contract is not subject to this confidentiality obligation. Subject to
Section 13, the parties shall be entitled to all remedies available at law or
in equity to enforce, or seek relief in connection with this confidentiality
obligation. The terms of any transaction hereunder shall be kept confidential
by the parties hereto for one year from the expiration of the transaction.

In
the event that disclosure is required by a governmental body or applicable law,
the party subject to such requirement may disclose the material terms of this
Contract to the extent so required, but shall promptly notify the other party,
prior to disclosure, and shall cooperate (consistent with the disclosing party’s
legal obligations) with the other party’s efforts to obtain protective orders
or similar restraints with respect to such disclosure at the expense of the
other party.

14.11. The
parties may agree to dispute resolution procedures in Special Provisions
attached to the Base Contract or in a Transaction Confirmation executed in
writing by both parties.

14.12. The
parties agree that a Letter of Credit or a prepayment of gas purchases shall be
in place between the parties as more fully described in a Transaction
Confirmation executed in writing by both parties.

DISCLAIMER: 
The purposes of this Contract are to facilitate trade, avoid
misunderstandings and make more definite terms of contracts of purchase and
sale of natural gas. Further, NAESB does not mandate the use of this Contract
by any party. NAESB DISCLAIMS AND EXCLUDES, AND ANY USER OF THIS CONTRACT
ACKNOWLEDGES AND AGREES TO NAESB’S DISCLAIMER OF, ANY AND ALL WARRANTIES,
CONDITIONS OR REPRESENTATIONS, EXPRESS OR IMPLIED, ORAL OR WRITTEN, WITH
RESPECT TO THIS CONTRACT OR ANY PART THEREOF, INCLUDING ANY AND ALL IMPIED
WARRANTIES OR CONDITIONS OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY, OR
FITNESS OR SUITABILITY FOR ANY PARTICULAR PURPOSE (WHETHER OR NOT NAESB KNOWS,
HAS REASON TO KNOW, HAS BEEN ADVISED, OR IS OTHERWISE IN FACT AWARE OF ANY SUCH
PURPOSE), WHETHER ALLEGED TO ARISE BY LAW, BY REASON OF CUSTOM OR USAGE IN THE
TRADE, OR BY COURSE OF DEALING.  EACH
USER OF THE CONTRACT ALSO AGREES THAT UNDER NO CIRCUMSTANCES WILL NAESB BE
LIABLE FOR ANY DIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES ARISING OUT OF ANY USE OF THIS CONTRACT.

 9Exhibit 10.28

NAMI
RESOURCES COMPANY, LLC

NATURAL
GAS CONTRACT AND CONFIRMATION

Trade date: May 26, 2003

Confirmation #052803OS

	
  SELLER

  	
  BUYER

  
	
  Nami Resources
  Company, Inc.

  	
  Osram Sylvania Products, Inc.

  
	
  104 Nami Plaza

  	
  1000 Tyrone Pike

  
	
  Suite 100

  	
  Versailles, KY 40383

  
	
  Lexington, KY
  40507

  	
   

  
	
   

  	
   

  
	
  Attention:

  	
  Mr. Mike Nami

  	
  Attention:

  	
  Mr. Jack Ambrose

  
	
  Phone:

  	
  (859) 455-8822

  	
  Phone:

  	
  (859) 879-1235

  
	
  Facsimile:

  	
  (859) 254-8639

  	
  Facsimile:

  	
  (859) 879-1302

  

 

	
  Term:

  	
  May 1 – 31, 2003 and month to month thereafter

  
	
  Volume:

  	
  Up to 4,000 Dth per day

  
	
  Price

  	
  100% of the Appalachia, Columbia Gas Monthly Index
  price for May, 2003 and each month thereafter as published in Platts Gas
  Daily

  
	
  Delivery
  Point(s):

  	
  Columbia Gas Transmission KA-1 pipeline and/or TCO
  Pool #49505

  
	
  Type of
  Delivery:

  	
  Firm

  
	
  Other:

  	
  Terms shall remain in effect unless terminated upon
  thirty (30) days written notice by either Buyer or Seller.

  

 

	
  This document must be returned, by facsimile
  transmission to (859) 254-8639, within one (1) business day of receipt.
  Failure to return this document signed will deem this confirmation accurate
  and acceptable to all parties. Thank you for your business.

  
	
   

  
	
  I acknowledge that this represents the agreement
  reached between BUYER and SELLER

  
	
   

  

 

	
  SELLER

  	
   

  	
  BUYER

  
	
  NAMI RESOURCES COMPANY, LLC

  	
   

  	
  DOMINION FIELD SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Majeed S. Nami

  	
   

  	
   

  	
  By:

  	
  /s/ Jack Ambrose

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Majeed S. Nami

  	
   

  	
  Name:

  	
  Jack Ambrose

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  President

  	
   

  	
  Its:

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