Document:

Exhibit 10.5
                               SECURITY AGREEMENT

     THIS SECURITY AGREEMENT (this "SECURITY AGREEMENT"), dated as of April 27,
2011, is between BARON ENERGY, INC., a Nevada corporation, whose address is 392
W. Mill Street, New Braunfels, Texas 78130 (the "Debtor"), as successor in
interest to Permian Legend Petroleum LP, and BASELINE CAPITAL, INC., a Texas
corporation, whose address is 310 W. Wall Street, Suite 803, Midland, Texas
79701 (the "SECURED PARTY").

                                   WITNESSETH:

     WHEREAS, pursuant to that certain First Amended and Restated Loan Agreement
dated of even date herewith among Debtor and Secured Party, as Lender (as the
same may be amended, restated, supplemented or otherwise modified from time to
time, the "LOAN AGREEMENT"), Secured Party has agreed to make loans to Debtor,
upon the terms and subject to the conditions set forth therein, to be evidenced
by the Note issued by Debtor thereunder;

     WHEREAS, Debtor is the successor in interest to Permian Legend Petroleum LP
("PERMIAN") through a series of corporate transactions, and is the owner of
assets and liabilities previously owned by Permian; and

     WHEREAS, Secured Party has conditioned its obligations under the Loan
Agreement upon the execution and delivery by Debtor of this Security Agreement,
and Debtor has agreed to make and deliver this Security Agreement.

     NOW, THEREFORE, (i) in compliance with the terms and conditions of the Loan
Agreement, (ii) for and in consideration of the premises and the agreements
herein contained, and (iii) for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Debtor and the
Secured Party agree as follows:

     1. DEFINITIONS. Unless otherwise defined herein, terms which are defined in
the Loan Agreement and used herein are so used as so defined in the Loan
Agreement, and the following terms shall have the following meanings:

          (a) "ACCOUNTS" has the meaning given to such term in Section
     9.102(a)(2) of the UCC, and also means and includes all trade accounts,
     accounts receivable, leases receivable, book debts, notes, drafts,
     instruments, documents, acceptances and other forms of obligations now
     owned or hereafter received or acquired by or belonging or owing to the
     Debtor (including under any assumed or fictitious name, trade names, styles
     or divisions thereof) whether arising out of goods sold or leased by it or
     services rendered by it or from any other transaction, whether or not the
     same involves the sale of goods or performance of services by the Debtor
     (including, without limitation, any such obligation which would be
     characterized as an account, general intangible or chattel paper under the
     UCC) and all of the Debtor's rights in, to and under all purchase orders
     now owned or hereafter received or acquired by it for goods or services,
     and all of the Debtor's rights to any goods represented by any of the
     foregoing (including returned or repossessed goods and unpaid seller's
     rights) and all moneys due or to become due to the Debtor under all

                                       1
<PAGE>
     contracts for the sale of goods and/or the performance of services by it
     (whether or not yet earned by performance) or in connection with any other
     transaction, now in existence or hereafter arising, including, without
     limitation, the right to receive the proceeds of said purchase orders and
     contracts, and all collateral security and guarantees of any kind given by
     any Person with respect to any of the foregoing.

          (b) "CONTRACTS" means the contracts (including without limitation all
     licenses and leases) between any Person and the Debtor, as the same may
     from time to time be amended, supplemented or otherwise modified,
     including, without limitation, (i) all rights of the Debtor to receive
     moneys due and to become due to it thereunder or in connection therewith,
     (ii) all rights of the Debtor to damages arising out of, or from, breach or
     default in respect thereof and (iii) all rights of the Debtor to perform
     and to exercise all remedies thereunder.

          (c) "DOCUMENTS" has the meaning assigned in Section 9.102(a)(30) of
     the UCC.

          (d) "EQUIPMENT" means all trailers, trucks, rolling stock and other
     vehicles (which are not covered by a certificate of title law of any
     state), machinery and equipment now owned or hereafter acquired by the
     Debtor, or in which the Debtor now has or hereafter may acquire any right,
     title or interest and any and all additions, substitutions and replacements
     thereof, wherever located, together with all attachments, components,
     parts, equipment and accessories installed therein or affixed thereto,
     including, but not limited to, all equipment as defined in Section 9.102(a)
     (33) of the UCC.

          (e) "GENERAL INTANGIBLES" has the meaning assigned in Section
     9.102(a)(42) of the UCC.

          (f) "INSTRUMENT" has the meaning assigned in Section 9.102(a)(47) of
     the UCC.

          (g) "INTELLECTUAL PROPERTY" means all patents and applications for
     patents, all copyrights, copyright registrations and copyright
     applications, copyrightable works and all other corresponding rights, all
     trade names, logos, Internet addresses and domain names, trademarks and
     service marks and related registrations and applications, all inventions
     (whether patentable or not and whether or not reduced to practice), know
     how, technology, technical data, trade secrets, confidential business
     information, all computer software, and all similar or related rights,
     interests and claims.

          (h) "INVENTORY" means all inventory, wherever located, now owned or
     hereafter acquired by the Debtor or in which the Debtor now has or
     hereafter may acquire any right, title or interest, including, without
     limitation, all goods and other personal property now or hereafter owned by
     the Debtor which are held for sale or lease or are furnished or are to be
     furnished under a contract of service or which constitute raw materials,
     work in process or materials used or consumed or to be used or consumed in
     the business of the Debtor, or in the processing, packaging or shipping of

                                       2
<PAGE>
     the same, and all finished goods, including, but not limited to, all pipe
     and other tabulars and all inventory as defined in Section 9.102(a)(48) of
     the UCC.

          (i) "MORTGAGED PROPERTY" means the oil and gas properties and related
     assets described in that certain Subordinated Deed of Trust, Mortgage,
     Security Agreement, Assignment of Production and Financing Statement dated
     August 1, 2007 and executed by Debtor in favor of Secured Party, as
     amended.

          (j) "OBLIGATION" means the unpaid principal of and interest on
     (including, without limitation, interest accruing after the maturity of the
     Note and interest on or after the filing of any petition in bankruptcy, or
     the commencement of any insolvency, reorganization or like proceeding,
     relating to the Debtor, whether or not a claim for post-filing or
     postpetition interest is allowed in such proceeding) the Note and all other
     present and future indebtedness, obligations and liabilities of Debtor to
     the Secured Party under the Loan Agreement, and all renewals, enlargements,
     rearrangements and extensions thereof, or any part thereof, now or
     hereafter owed to Secured Party by Debtor arising from, by virtue of, or
     pursuant to any Loan Document, or otherwise, together with all interest
     accruing thereon and all costs, expenses and attorneys' fees incurred in
     the enforcement or collection thereof, whether such indebtedness,
     obligations and liabilities are direct, indirect, fixed, contingent,
     liquidated, unliquidated, joint, several, or joint and several or were,
     prior to acquisition thereof by Secured Party, owed to some other Person.

          (k) "PERSON" means any natural person, corporation, company, limited
     or general partnership, joint stock company, joint venture, association,
     limited liability company, limited liability partnership, trust, bank,
     trust company, land trust, business trust or other entity or organization.

          (l) "PROCEEDS" means all "proceeds" as such term is defined in Section
     9.102 (a) (65) of the UCC and, in any event, shall mean and include, but
     not be limited to, the following at any time whatsoever arising or
     receivable: (i) whatever is received upon any collection, exchange, sale or
     other disposition of any of the Collateral, and any property into which any
     of the Collateral is converted, whether cash or non-cash proceeds, (ii) any
     and all proceeds of any insurance, indemnity, warranty or guaranty payable
     to the Debtor from time to time with respect to any of the Collateral, and
     (iii) any and all payments (in any form whatsoever) made or due and payable
     to the Debtor from time to time in connection with any requisition,
     confiscation, condemnation, seizure or forfeiture of all or any part of the
     Collateral by any governmental body, authority, bureau or agency (or any
     Person acting under color of governmental authority).

          (m) "UCC" means the Uniform Commercial Code as from time to time in
     effect in the State of Texas.

          (n) "VEHICLES" means all trucks, tractors, trailers and rolling
     equipment and other vehicles, wherever located, which are covered by a
     certificate of title law of any state, and any and all additions,
     substitutions, and replacements thereof, wherever located, together with
     all attachments, components, parts and accessories installed therein or
     affixed thereto.

                                       3
<PAGE>
     2. GRANT OF SECURITY INTEREST. As collateral security for the prompt and
complete payment and performance when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligation, the Debtor hereby grants to the
Secured Party a security interest and lien in all personal property assets of
Debtor previously owned by Permian (the "Permian Assets") and all Proceeds and
present or future increases, combinations, reclassifications, improvements and
products of, accessions, attachments and other additions to, and substitutes and
replacements for all or any part of the Permian Assets, whether now owned or
hereafter acquired by the Debtor, including, without limitation, the following
(collectively, the "COLLATERAL"):

          (i) all Accounts;

          (ii) all Contracts;

          (iii) all Documents;

          (iv) all Equipment;

          (v) all General Intangibles;

          (vi) all Instruments;

          (vii) all Intellectual Property;

          (viii) all Inventory;

          (ix) all Vehicles; and

          (x) all Proceeds and all present and future increases, combinations,
     reclassifications, improvements and products of, accessions, attachments,
     and other additions to, and substitutes and replacements for all or any
     part of the foregoing.

     3. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor hereby represents
and warrants to Secured Party that:

          (a) Title; No Other Liens. Except for the security interest and lien
     granted to the Secured Party pursuant to this Security Agreement and the
     other Loan Documents and the liens on the Mortgaged Property securing the
     Senior Debt, the Debtor owns each item of the Collateral free and clear of
     any and all Liens or claims of others. No security agreement, financing
     statement or other public notice with respect to all or any part of the
     Collateral is on file or of record in any public office, except such as may
     have been filed in favor of the Secured Party, for the benefit of the
     Secured Party, pursuant to this Security Agreement or any other Loan
     Document (or in favor of Newton with respect to the Mortgaged Property
     only). All Intellectual Property capable of registration has been (or will
     be in accordance with the Loan Agreement) duly and properly registered in
     the name of the Debtor and is valid and enforceable.

                                       4
<PAGE>
          (b) Accounts. The amount represented by the Debtor to the Secured
     Party from time to time as owing by each account debtor or by all account
     debtors in respect of the Accounts will at such time be the correct amount
     actually owing by such account debtor or debtors thereunder. The Debtor's
     Accounts arose in the ordinary course of the Debtor's business from the
     performance of services that the Debtor has fully and satisfactorily
     performed or from the sale or lease of goods in which the Debtor had sole
     and complete ownership. No such Account is subject to counterclaim or
     defense (other than discount for prompt payment as shown on the invoices).

          (c) Use and Protection of Collateral. The Collateral will be used for
     business purposes only and certain of the Collateral is of a type normally
     used in more than one state.

          (d) Location of Collateral. The Collateral will remain in the Debtor's
     possession or control at all times (at the Debtor's risk of loss) and will
     be kept at the location specified in the notice required under Section
     2(b), or such other locations as the Debtor notifies Secured Party in
     writing, which notice shall be delivered to Secured Party from time to time
     prior to the Collateral being moved.

          (e) Governmental Obligors. None of the obligors on any Accounts, and
     none of the parties to any Contracts, is a Governmental Authority.

          (f) Consents. No consent of any party (other than the Debtor) to any
     Contract or any obligor in respect of any Account is required, or purports
     to be required, in connection with the execution, delivery and performance
     of this Security Agreement. Each Account and each Contract is in full force
     and effect and constitutes a valid and legally enforceable obligation of
     the obligor in respect thereof or parties thereto, except as enforceability
     may be limited by bankruptcy, insolvency, reorganization, moratorium or
     similar laws affecting the enforcement of creditor's rights generally. No
     consent or authorization of, filing with or other act by or in respect of
     any governmental authority is required in connection with the execution,
     delivery, performance, validity or enforceability of any of the Accounts or
     Contracts by any party thereto other than those which have been duly
     obtained, made or performed, are in full force and effect and do not
     subject the scope of any such Account or Contract to any material adverse
     limitation, either specific or general in nature. Neither the Debtor nor
     (to the best knowledge of the Debtor) any other party to any Account or
     Contract is in default or is likely to become in default in the performance
     or observance of any of the terms thereof. The Debtor has fully performed
     all its obligations under each Contract. The right, title and interest of
     the Debtor in, to and under each Account or Contract are not subject to any
     defense, offset, counterclaim, or claim which would materially adversely
     affect the value of such Account or Contract as Collateral, nor have any of
     the foregoing been asserted or alleged against the Debtor as to any of the
     foregoing. Upon request by Secured Party, the Debtor will deliver to the
     Secured Party a complete and correct copy of each Contract, including all
     amendments, supplements and other modifications thereto.

          (g) Power and Authority; Authorization. The Debtor has the power and
     authority and the legal right to execute and deliver, to perform its

                                       5
<PAGE>
     obligations under, and to grant the security interests and liens on the
     Collateral pursuant to, this Security Agreement and has taken all necessary
     corporate and other action to authorize its execution, delivery and
     performance of, and grant of the security interests and liens on the
     Collateral pursuant to, this Security Agreement.

          (h) Enforceability. This Security Agreement constitutes a legal, valid
     and binding obligation of the Debtor enforceable in accordance with its
     terms, except as enforceability may be limited by bankruptcy, insolvency,
     reorganization, moratorium or similar laws affecting the enforcement of
     creditors' rights generally.

          (i) No Conflict. The execution, delivery and performance of this
     Security Agreement will not violate or constitute a default under (i) any
     provision of any agreement to which Debtor is a party or by which any of
     its assets may be bound or subject to, or (ii) organizational documents of
     the Debtor, and (iii) will not result in the creation or imposition of any
     lien on any of the properties or revenues of the Debtor except as
     contemplated hereby.

          (j) No Consents, etc. No consent or authorization of, filing with, or
     other act by or in respect of, any arbitrator or governmental authority and
     no consent of any other Person (including, without limitation, any partner
     or affiliate of the Debtor), is required in connection with the execution,
     delivery, performance, validity or enforceability of this Security
     Agreement.

          (k) No Litigation. No litigation, investigation or proceeding of or
     before any arbitrator or governmental authority is pending or, to the
     knowledge of the Debtor, threatened by or against the Debtor or against any
     of its properties or revenues.

     4. DEBTOR'S COVENANTS. The Debtor covenants and agrees with the Secured
Party that, from and after the date of this Security Agreement until the
Obligation is paid in full and any obligation of Secured Party to make Advances
under the Loan Agreement has terminated:

          (a) Obligations. Debtor shall pay the Obligation in accordance with
     the terms thereof and shall otherwise perform all covenants and agreements
     of Debtor contained in the Loan Agreement, this Security Agreement and in
     all other Loan Documents.

          (b) Debtor Remains Liable under Accounts and Contracts. Anything
     herein to the contrary notwithstanding, the Debtor shall remain liable
     under each of the Accounts and Contracts to observe and perform all the
     conditions and obligations to be observed and performed by it thereunder,
     all in accordance with the terms of any agreements giving rise to each such
     Account or Contract in accordance with and pursuant to the terms and
     provisions of each such Contract or agreement giving rise to an Account.

          (c) Costs. The Debtor shall pay Secured Party on demand every expense
     (including reasonable attorneys' fees and other legal expenses) incurred or
     paid by Secured Party in exercising or protecting its interests, rights,
     and remedies under this Security Agreement, plus interest at the highest

                                       6
<PAGE>
     lawful rate on each such amount commencing on the date notice of such
     expenses is given to the Debtor by Secured Party until paid by the Debtor.

          (d) Further Documentation; Pledge of Instruments. At any time and from
     time to time, upon the written request of the Secured Party, and at the
     sole expense of the Debtor, the Debtor will promptly and duly execute and
     deliver such further instruments and documents and take such further action
     as the Secured Party may reasonably request for the purpose of obtaining or
     preserving the full benefits of the Loan Agreement and this Security
     Agreement and of the rights and powers therein and herein granted,
     including, without limitation, the filing of any financing or continuation
     statements under the Uniform Commercial Code in effect in any jurisdiction
     with respect to the security interests and liens created hereby, the
     delivery to the Secured Party and appropriate regulatory authorities of the
     titles to the Vehicles, the filing of evidence of Secured Party's security
     interests and liens on all Intellectual Property of Debtor in the
     appropriate governmental offices, and the taking of all such other actions
     as may be necessary to establish, preserve and protect Secured Party's
     security interests and liens in any of the Collateral. The Secured Party
     shall have the right, without the consent or joinder of the Debtor, to
     execute and file with any governmental authority such financing statements,
     financing statement amendments and continuation statements as may, in the
     sole discretion of the Secured Party, be necessary or advisable to
     maintain, perfect or otherwise evidence the security interests and liens of
     the Secured Party in and to any of the Collateral. In addition, and without
     limiting the foregoing, this Security Agreement may be attached to and made
     a part of any financing statement filed by the Secured Party. The Debtor
     also hereby authorizes the Secured Party to file any such financing or
     continuation statement without the signature of the Debtor to the extent
     permitted by applicable law. A carbon, photographic or other reproduction
     of this Security Agreement shall be sufficient as a financing statement for
     filing in any jurisdiction. If any amount payable under or in connection
     with any of the Collateral shall be or become evidenced by any Instrument,
     such Instrument shall be immediately delivered to the Secured Party, duly
     endorsed in a manner satisfactory to the Secured Party, to be held as
     Collateral pursuant to this Security Agreement.

          (e) Indemnification. The Debtor agrees to pay, and to save the Secured
     Party harmless from, any and all liabilities, costs and expenses
     (including, without limitation, legal fees and expenses) (i) with respect
     to, or resulting from, any delay in paying, any and all excise, sales or
     other taxes which may be payable or determined to be payable with respect
     to any of the Collateral, (ii) with respect to, or resulting from, any
     delay in complying with any law applicable to any of the Collateral, (iii)
     with respect to any claims against or losses of Secured Party concerning
     any of the Collateral, or (iv) in connection with any of the transactions
     contemplated by this Security Agreement. In any suit, proceeding or action
     brought by the Secured Party under any Account or Contract for any sum
     owing thereunder, or to enforce any provisions of any Account or Contract,
     the Debtor will save, indemnify and keep the Secured Party harmless from
     and against all expense, loss or damage suffered by reason of any defense,
     setoff, counterclaim, recoupment or reduction or liability whatsoever of
     the account debtor or obligor thereunder, arising out of a breach by the
     Debtor of any obligation thereunder or arising out of any other agreement,

                                       7
<PAGE>
     indebtedness or liability at any time owing to or in favor of such account
     debtor or obligor or its successors from the Debtor.

          (f) Maintenance of Records. The Debtor will keep and maintain at its
     own cost and expense satisfactory and complete records of the Collateral,
     including, without limitation, a record of all payments received and all
     credits granted with respect to the Accounts and Contracts. The Debtor will
     mark its books and records pertaining to the Collateral to evidence this
     Security Agreement and the security interests granted hereby. For the
     further security of the Secured Party, the Secured Party shall have a
     security interest in all of the Debtor's books and records pertaining to
     the Collateral, and the Debtor shall turn over any such books and records
     to the Secured Party or to its representatives during normal business hours
     at the request of the Secured Party. Upon request by the Secured Party from
     time to time, the Debtor shall deliver to the Secured Party a report of all
     Collateral then owned by the Debtor with a statement of the place where the
     same may be located, which report shall be in form and detail satisfactory
     to the Secured Party.

          (g) Right of Inspection. The Secured Party shall at all times have
     full and free access during normal business hours to all the books,
     correspondence and records of the Debtor, and the Secured Party and its
     representatives may examine the same, take extracts therefrom and make
     photocopies thereof, and the Debtor agrees to render to the Secured Party,
     at the Debtor's cost and expense, such clerical and other assistance as may
     be reasonably requested with regard thereto. The Secured Party and its
     representatives shall at all times also have the right to enter into and
     upon any premises where any of the Collateral is located for the purpose of
     inspecting the same, observing its use or otherwise protecting its
     interests therein.

          (h) Compliance with Laws, etc. The Debtor will comply in all material
     respects with all laws, rules and regulations applicable to the Collateral
     or any part thereof or to the operation of the Debtor's businesses;
     provided, however, that the Debtor may contest any such laws, rules or
     regulations in any reasonable manner which shall not, in the sole opinion
     of the Secured Party, adversely affect the Secured Party's rights or the
     priority of its security interests and liens on the Collateral.

          (i) Compliance with Terms of Contracts, etc. The Debtor will perform
     and comply in all material respects with all its obligations under the
     Contracts and all its other contractual obligations relating to the
     Collateral.

          (j) Payment of Taxes. The Debtor will pay promptly when due all taxes,
     assessments and governmental charges or levies imposed upon the Collateral
     or in respect of its income or profits therefrom, as well as all claims of
     any kind (including, without limitation, claims for labor, materials and
     supplies) against or with respect to the Collateral, except that no such
     charge need be paid if (i) the validity thereof is being contested in good
     faith by appropriate proceedings, (ii) such proceedings do not involve any
     material danger of the sale, forfeiture or loss of any of the Collateral or
     any interest therein and (iii) such charge is adequately reserved against
     on the Debtor's books.

                                       8
<PAGE>
          (k) Limitation of Liens on Collateral. The Debtor will not create,
     incur or permit to exist, will defend the Collateral against, and will take
     such other action as is necessary to remove, any lien or claim on or to the
     Collateral, other than the security interests and liens created hereby and
     those on the Mortgaged Property in favor of the Secured Party and Newton,
     and will defend the right, title and interest of the Secured Party in and
     to any of the Collateral against the claims and demands of all Persons
     whomsoever.

          (l) Limitations on Dispositions of Collateral. The Debtor will not
     sell, transfer, lease or otherwise dispose of any of the Collateral, or
     attempt, offer or contract to do so, without the prior consent of Secured
     Party.

          (m) Limitations on Modifications, Waivers, Extensions of Contracts and
     Agreements Giving Rise to Accounts. The Debtor will not (i) amend, modify,
     terminate or waive any provision of any Contract or any agreement giving
     rise to an Account in any manner which could reasonably be expected to
     materially and adversely affect the value of such Contract or Account as
     Collateral, (ii) fail to exercise promptly and diligently each and every
     material right which it may have under each Contract and each agreement
     giving rise to an Account (other than any right of termination) or (iii)
     fail to deliver to the Secured Party a copy of each material demand, notice
     or document received by it relating in any way to any Contract or any
     agreement giving rise to an Account.

          (n) Limitations on Discounts, Compromises, Extensions of Accounts.
     Other than in the ordinary course of business as generally conducted by the
     Debtor over a period of time, the Debtor will not grant any extension of
     the time of payment of any of the Accounts, compromise, compound or settle
     the same for less than the full amount thereof, release, wholly or
     partially, any Person liable for the payment thereof, or allow any credit
     or discount whatsoever thereon.

          (o) Maintenance of Collateral. The Debtor will maintain each Vehicle
     and each item of Equipment and Inventory in good operating condition,
     ordinary wear and tear and immaterial impairments of value and damage by
     the elements excepted, and will provide all maintenance, service and
     repairs necessary for such purpose.

          (p) Maintenance of Insurance. The Debtor will maintain, with
     financially sound and reputable companies, insurance policies (i) insuring
     the Equipment, Vehicles and Inventory against loss by fire, explosion,
     theft and such other casualties as may be reasonably satisfactory to the
     Secured Party and (ii) insuring the Debtor and the Secured Party against
     liability for personal injury and property damage relating to such
     Equipment, Vehicles and Inventory and Debtor's business, such policies to
     be in such form and amounts and having such coverage as may be reasonably
     satisfactory to the Secured Party, with losses payable to the Secured Party
     as its interests may appear. All such insurance shall (i) provide that no
     cancellation, material reduction in amount or material change in coverage
     thereof shall be effective until at least thirty (30) days after receipt by
     the Secured Party of written notice thereof, (ii) name the Secured Party as
     insured party, and (iii) be reasonably satisfactory in all other respects
     to the Secured Party. The Debtor shall deliver to the Secured Party a
     report of a reputable insurance broker or agent with respect to such

                                       9
<PAGE>
     insurance at such times as may be specified by the Secured Party in its
     discretion and such supplemental reports with respect thereto as the
     Secured Party may from time to time reasonably request.

          (q) Further Identification of Collateral. The Debtor will furnish to
     the Secured Party from time to time statements and schedules further
     identifying and describing the Collateral and such other reports in
     connection with the Collateral as the Secured Party may reasonably request,
     all in reasonable detail.

          (r) Notices. The Debtor will advise the Secured Party promptly, in
     reasonable detail, at its address set forth in the Loan Agreement, (i) of
     any security interest or lien (other than security interests and liens
     created hereby) on, or claim asserted against, any of the Collateral and
     (ii) of the occurrence of any other event which could reasonably be
     expected to have a material adverse effect on the aggregate value of the
     Collateral or on the security interests and liens created hereunder.

          (s) Changes in Locations, Name, etc. The Debtor will not (i) change
     the location of its chief executive office/chief place of business from
     that specified in Section 3, or (ii) change its name, identity or
     organizational structure to such an extent that any financing statement
     filed by the Secured Party in connection with this Security Agreement would
     become misleading.

     5. PERFORMANCE BY SECURED PARTY OF DEBTOR'S AGREEMENTS. If the Debtor fails
to perform or comply with any of the agreements contained herein and the Secured
Party, as provided for by the terms of this Security Agreement, shall itself
perform or comply, or otherwise cause performance or compliance, with such
agreement, the expenses of the Secured Party incurred in connection with such
performance or compliance, together with interest thereon at the highest lawful
rate, shall be payable by the Debtor to the Secured Party on demand and shall
constitute part of the Obligation secured hereby.

     6. SECURED PARTY'S APPOINTMENT AS ATTORNEY-IN-FACT.

          (a) Attorney-in-Fact. Debtor hereby irrevocably constitutes and
     appoints the Secured Party and any officer or agent thereof, with full
     power of substitution, as its true and lawful attorney-in-fact with full
     irrevocable power and authority in the place and stead of the Debtor and in
     the name of the Debtor or in its own name, from time to time in the Secured
     Party's discretion, for the purpose of carrying out the terms of this
     Security Agreement, to take any and all appropriate action and to execute
     any and all documents and instruments which may be necessary or desirable
     to accomplish the purposes of this Security Agreement, and, without
     limiting the generality of the foregoing, the Debtor hereby gives the
     Secured Party the power and right, on behalf of the Debtor, without notice
     to or assent by the Debtor, to do the following:

               (i) in the case of any Account, at any time when the authority of
          the Debtor to collect the Accounts has been curtailed or terminated
          pursuant to the first sentence of Section 8(c) hereof, or in the case
          of any other Collateral, at any time when any Event of Default shall
          have occurred and is continuing, in the name of the Debtor or its own

                                       10
<PAGE>
          name, or otherwise, to take possession of and indorse and collect any
          checks, drafts, notes, acceptances or other instruments for the
          payment of moneys due under, or with respect to, any Collateral and to
          file any claim or to take any other action or proceeding in any court
          of law or equity or otherwise deemed appropriate by the Secured Party
          for the purpose of collecting any and all such moneys due or with
          respect to such Collateral whenever payable;

               (ii) to pay or discharge taxes and liens levied or placed on or
          threatened against the Collateral, to effect any repairs or any
          insurance called for by the terms of this Security Agreement and to
          pay all or any part of the premiums therefor and the costs thereof;

               (iii) to maintain or protect the Intellectual Property (without
          any obligation to do so), and to transfer and register the transfer of
          any Intellectual Property upon the occurrence of an Event of Default;
          and

               (iv) upon the occurrence and during the continuance of any Event
          of Default, (a) to direct any party liable for any payment under any
          of the Collateral to make payment of any and all moneys due or to
          become due thereunder directly to the Secured Party or as the Secured
          Party shall direct; (b) to ask for or demand, collect, receive payment
          of and receipt for, any and all moneys, claims and other amounts due
          or to become due at any time in respect of or arising out of any
          Collateral; (c) to sign and indorse any invoices, freight or express
          bills, bills of lading, storage or warehouse receipts, drafts against
          debtors, assignments, verifications, notices and other documents in
          connection with any of the Collateral; (d) to commence and prosecute
          any suits, actions or proceedings at law or in equity in any court of
          competent jurisdiction to collect the Collateral or any thereof and to
          enforce any other right in respect of any Collateral; (e) to defend
          any suit, action or proceeding brought against the Debtor with respect
          to any Collateral; (f) to settle, compromise or adjust any suit,
          action or proceeding described in the preceding clause and, in
          connection therewith, to give such discharges or releases as the
          Secured Party may deem appropriate; and (g) generally, to sell,
          transfer, pledge and make any agreement with respect to or otherwise
          deal with any of the Collateral as fully and completely as though the
          Secured Party were the absolute owner thereof for all purposes, and to
          do, at the Secured Party's option and the Debtor's expense, at any
          time, or from time to time, all acts and things which the Secured
          Party deems necessary to protect, preserve or realize upon the
          Collateral and the security interest and liens of the Secured Party
          thereon and to effect the intent of this Security Agreement, all as
          fully and effectively as the Debtor might do.

               The Debtor hereby ratifies all that said attorneys shall lawfully
          do or cause to be done by virtue hereof. This power of attorney is a
          power coupled with an interest and shall be irrevocable.

                                       11
<PAGE>
          (b) Other Powers. The Debtor also authorizes the Secured Party, at any
     time and from time to time, to execute, in connection with the sale
     provided for in Sections 6(a) and 8(d), any endorsements, assignments or
     other instruments of conveyance or transfer with respect to the Collateral.

     7. PROCEEDS. In addition to the rights of the Secured Party specified in
Section 8 with respect to payments of Accounts, it is agreed that if an Event of
Default shall occur and be continuing (i) all Proceeds received by the Debtor
consisting of cash, checks and other near-cash items shall be held by the
Debtor, in trust for the Secured Party, segregated from other funds of the
Debtor, and shall, forthwith upon receipt by the Debtor, be turned over to the
Secured Party in the exact form received by the Debtor (duly indorsed by the
Debtor to the Secured Party), and (ii) any and all such Proceeds received by the
Secured Party (whether from the Debtor or otherwise) may, in the sole discretion
of the Secured Party, be held by the Secured Party for the Secured Party as
collateral security for, and/or then or at any time thereafter may be applied by
the Secured Party against, the Obligation (whether matured or unmatured), such
application to be in such order as the Secured Party shall elect. Any balance of
such Proceeds remaining after the Obligation shall have been paid in full shall
be paid over to the Debtor or to whomsoever may be lawfully entitled to receive
the same.

     8. SECURED PARTY'S RIGHTS, REMEDIES AND POWERS.

          (a) Analysis of Accounts. The Secured Party shall have the right to
     make test verifications of the Accounts in any manner and through any
     medium that it reasonably considers advisable, and the Debtor shall furnish
     all such assistance and information as the Secured Party may require in
     connection therewith. At any time and from time to time, upon the Secured
     Party's request and at the expense of the Debtor, the Debtor shall cause
     independent public accountants or others satisfactory to the Secured Party
     to furnish to the Secured Party reports showing reconciliations, aging and
     test verifications of, and trial balances for, the Accounts.

          (b) Notice to Account Debtors and Contracting Parties. At any time
     after an Event of Default occurs and is continuing, upon the request of the
     Secured Party at any time, the Debtor shall notify account debtors of the
     Accounts and parties to the Contracts that the Accounts and the Contracts
     have been assigned to the Secured Party and that payments in respect
     thereof shall be made directly to the Secured Party. The Secured Party may
     in its own name or in the name of others communicate with account debtors
     on the Accounts and parties to the Contracts to verify with them to its
     satisfaction the existence, amount and terms of any Accounts or Contracts.

          (c) Collections on Accounts and Contracts. The Secured Party hereby
     authorizes the Debtor to collect the Accounts and Contracts, subject to the
     Secured Party's direction and control, and the Secured Party may curtail or
     terminate said authority at any time. If required by the Secured Party at
     any time, any payments of Accounts and Contracts, when collected by the
     Debtor, shall be forthwith (and, in any event, within two Business Days)
     deposited by the Debtor in the exact form received, duly indorsed by the
     Debtor to the Secured Party if required, in a special collateral account

                                       12
<PAGE>
     maintained by the Secured Party, subject to withdrawal by the Secured Party
     for the account of the Secured Party only, as provided in this Security
     Agreement, and, until so turned over, shall be held by the Debtor in trust
     for the Secured Party, segregated from other funds of the Debtor. All
     Proceeds while held by the Secured Party (or by the Debtor in trust for the
     Secured Party) shall continue to be collateral security for all of the
     Obligation and shall not constitute payment thereof until applied as
     provided in this Security Agreement. At such intervals as may be agreed
     upon by the Debtor and the Secured Party, or, if an Event of Default shall
     have occurred and be continuing, at any time at the Secured Party's
     election, the Secured Party shall apply all or any part of the funds on
     deposit in said special collateral account on account of the Obligation in
     such order as the Secured Party may elect, and any part of such funds which
     the Secured Party elects not so to apply and deems not required as
     collateral security for the Obligation shall be paid over from time to time
     by the Secured Party to the Debtor or to whomsoever may be lawfully
     entitled to receive the same. At the Secured Party's request, the Debtor
     shall deliver to the Secured Party all original and other documents
     evidencing, and relating to, the agreements and transactions which gave
     rise to the Accounts and Contracts, including, without limitation, all
     original orders, invoices and shipping receipts.

          (d) Remedies; Acceleration of Maturity of Obligations; Repossession
     and Sale of Collateral. At any time after an Event of Default occurs and is
     continuing, Secured Party may declare every Obligation to be immediately
     due and payable and may exercise, in addition to all other rights and
     remedies granted to it in this Security Agreement, the Loan Agreement and
     in any of the other Loan Documents securing, evidencing or relating to the
     Obligation, all rights and remedies of a secured party under the UCC.
     Without limiting the generality of the foregoing, the Secured Party,
     without demand of performance or other demand, presentment, protest,
     advertisement or notice of any kind (except any notice required by law
     referred to below) to or upon the Debtor or any other person (all and each
     of which demands, defenses, advertisements and notices are hereby waived),
     may in such circumstances forthwith collect, receive, appropriate and
     realize upon the Collateral, or any party thereof, and/or may forthwith
     sell, lease, assign, give option or options to purchase, or otherwise
     dispose of and deliver the Collateral or any part thereof (or contract to
     do any of the foregoing), in one or more parcels at public or private sale
     or sales, at any exchange, broker's board or office of the Secured Party or
     elsewhere upon such terms and conditions as Secured Party may deem
     advisable and at such prices as Secured Party may deem best, for cash or on
     credit or for future delivery without assumption of any credit risk. The
     Secured Party shall have the right upon any such public sale or sales, and,
     to the extent permitted by law, upon any such private sale or sales, to
     purchase the whole or any part-of the Collateral so sold, free of any right
     or equity of redemption in the Debtor, which right or equity is hereby
     waived or released. The Debtor further agrees, at the Secured Party's
     request, to assemble the Collateral and make it available to the Secured
     Party at places which the Secured Party shall reasonably select, whether at
     the Debtor's premises or elsewhere. The Secured Party shall apply the net
     proceeds of any such collection, recovery, receipt, appropriation,
     realization or sale, after deducting all reasonable costs and expenses of
     every kind incurred therein or incidental to the care or safekeeping of any
     of the Collateral or in any way relating to the Collateral or the rights of
     the Secured Party hereunder, including, without limitation, reasonable

                                       13
<PAGE>
     attorneys' fees and disbursements, to the payment in whole or in part of
     the Obligation, in such order as the Secured Party may elect, and only
     after such application and after the payment by the Secured Party of any
     other amount required by any provision of law, need the Secured Party
     account for the surplus, if any, to the Debtor. To the extent permitted by
     applicable law, the Debtor waives all claims, damages and demands it may
     acquire against the Secured Party arising out of the exercise by it of any
     rights hereunder. If any notice of a proposed sale or other disposition of
     Collateral shall be required by law, such notice shall be deemed reasonable
     and proper if given at least ten (10) days before such sale or other
     disposition. The Debtor shall remain liable for any deficiency if the
     proceeds of any sale or other disposition of the Collateral are
     insufficient to pay the Obligation and the fees and disbursements of any
     attorneys employed by the Secured Party to collect such deficiency.

          (e) Right of Setoff. In addition to the security interest and lien
     herein described, Debtor expressly recognizes and grants Secured Party upon
     the occurrence of an Event of Default the right of setoff with respect to
     any money, checks, certificates of deposit or instruments deposited with
     Secured Party, whether in general or special deposits, which right may be
     exercised concurrently with or separately from any and all other rights of
     Secured Party against Debtor.

     9. LIMITATIONS ON SECURED PARTY'S DUTIES AND OBLIGATIONS.

          (a) Limitations on Secured Party's Obligations Under Accounts and
     Contracts. The Secured Party shall not have any obligation or liability
     under any Account (or any agreement giving rise thereto) or Contract by
     reason of or arising out of this Security Agreement or the receipt by the
     Secured Party of any payment relating to such Account or Contract pursuant
     hereto, nor shall the Secured Party be obligated in any manner to perform
     any of the obligations of the Debtor thereof under or pursuant to any
     Account (or any agreement giving rise thereto) or under or pursuant to any
     Contract, to make any payment, to make any inquiry as to the nature or the
     sufficiency of any payment received by it or as to the sufficiency of any
     performance by any party under any Account (or any agreement giving rise
     thereto) or under any Contract, to present or file any claim, to take any
     action to enforce any performance or to collect the payment of any amounts
     which may have been assigned to it or to which it may be entitled at any
     time or times.

          (b) Limitation on Duties Regarding Preservation of Collateral. The
     Secured Party's sole duty with respect to the custody, safekeeping and
     physical preservation of the Collateral in its possession, under Section
     9.207 of the UCC or otherwise, shall be to deal with it in the same manner
     as the Secured Party deals with similar property for its own account.
     Neither the Secured Party nor any of its directors, officers, employees or
     agents shall be liable for failure to demand, collect or realize upon all
     or any part of the Collateral or for any delay in doing so or shall be
     under any obligation to sell or otherwise dispose of any Collateral upon
     the request of the Debtor or otherwise. Without limiting the generality of
     the foregoing, the Secured Party shall not have any obligation to take any
     action with respect to the maintenance, protection, enforcement or validity
     of any of the Collateral.

                                       14
<PAGE>
          (c) No Duty on the Part of Secured Party. The powers conferred on the
     Secured Party under this Security Agreement are solely to protect the
     interests of the Secured Party in the Collateral and shall not impose any
     duty upon the Secured Party to exercise any such powers. The Secured Party
     shall be accountable only for amounts that it actually receives as a result
     of the exercise of such powers, and neither it nor any of its officers,
     directors, employees or agents shall be responsible to the Debtor or its
     officers, directors, employees, partners or agents for any act or failure
     to act hereunder, except for its own gross negligence or willful
     misconduct.

     10. GENERAL PROVISIONS.

          (a) Powers Coupled with an Interest. All authorizations and agencies
     herein contained with respect to the Collateral are irrevocable and powers
     coupled with an interest.

          (b) Severabilitv. Any provision of this Security Agreement which is
     prohibited or unenforceable in any jurisdiction shall, as to such
     jurisdiction, be ineffective to the extent of such prohibition or
     unenforceability without invalidating the remaining provisions hereof, and
     any such prohibition or unenforceability in any jurisdiction shall not
     invalidate or render unenforceable such provision in any other
     jurisdiction.

          (c) Additional Definitions. The term "DEBTOR" as used in this Security
     Agreement is to be construed as singular or plural to correspond with the
     number of persons executing this instrument as Debtor. The pronouns used in
     this instrument are in the masculine gender but shall be construed as
     feminine or neuter as occasion may require. "SECURED PARTY" and "DEBTOR" as
     used in this instrument include the heirs, executors or administrators,
     successors, representatives, receivers, trustees, custodians, and assigns
     of those parties.

          (d) Captions. The section and paragraph headings appearing in this
     instrument were inserted for convenience only and are not to be given any
     substantive meaning or significance in construing this Security Agreement.

          (e) Waivers and Amendments; Successors and Assigns. None of the terms
     or provision of this Security Agreement may be waived, amended,
     supplemented or otherwise modified except by a written instrument executed
     by the Debtor and the Secured Party, provided that any provision of this
     Security Agreement may be waived by the Secured Party in a written letter
     or agreement executed by the Secured Party or by telex or facsimile
     transmission from the Secured Party. This Security Agreement shall be
     binding upon the permitted successors and assigns of the Debtor and shall
     inure to the benefit of the Secured Party and its successors and assigns.

          (f) No Waiver; Cumulative Remedies. The Secured Party shall not by any
     act (except by a written instrument pursuant to Section 10(e) hereof),
     delay, indulgence, omission or otherwise be deemed to have waived any right
     or remedy hereunder or to have acquiesced in any Event of Default or in any
     breach of any of the terms and conditions hereof. No failure to exercise,
     nor any delay in exercising, on the part of the Secured Party, any right,

                                       15
<PAGE>
     power or privilege hereunder shall operate as a waiver thereof. No single
     or partial exercise of any right, power or privilege hereunder shall
     preclude any other or further exercise thereof or the exercise of any other
     right, power or privilege. A waiver by the Secured Party of any right or
     remedy hereunder on any one occasion shall not be construed as a bar to any
     right or remedy which the Secured Party would otherwise have on any future
     occasion. The rights and remedies herein provided are cumulative, may be
     exercised singly or concurrently and are not exclusive of any rights or
     remedies provided by law.

          (g) GOVERNING LAW. THE LAW GOVERNING THIS SECURED TRANSACTION SHALL BE
     CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
     TEXAS.

          (h) Renewal, Extension or Rearrangement. All provisions of this
     Security Agreement and of any other Loan Document shall apply with equal
     force and effect to each and all promissory notes hereafter executed which
     in whole or in part represent a renewal, extension for any period, increase
     or rearrangement of any part of the Obligation originally represented by
     the Note or any part of such other Obligation.

          (i) Assignment. Secured Party may from time to time assign this
     Security Agreement, Secured Party's rights under this Security Agreement,
     or all or any of the Obligation. In any such case, the assignee will be
     entitled to all rights, privileges, and remedies granted in this Security
     Agreement to Secured Party, and Debtor will not assert against the assignee
     any claims or defenses Debtor may have against Secured Party (except those
     granted in this Security Agreement).

          (j) Notices. Notices hereunder may be given and be effective as set
     forth in the Loan Agreement.

          (k) Counterpart Execution. This Security Agreement may be executed in
     any number of counterparts with the same effect as if all of the parties
     had signed the same document. All counterparts shall be construed together
     and shall constitute one agreement. Signatures transmitted by fax or other
     electronic means shall be treated as and deemed original signatures and
     shall be binding for all purposes.

          (l) Renewal and extension. This Security Agreement and the security
     interest granted herein are, given the renewal and extension of that
     curtain Security Agreement by and between Permian and Secured Party dated
     as of August 1, 2007 and the security interests granted therein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       16
<PAGE>
     EXECUTED as of the date first above written.

                            DEBTOR: BARON ENERGY, INC.

                            By: /s/ Lisa P. Hamilton
                               ----------------------------------------------
                            Name:  Lisa P. Hamilton
                            Title: Executive Vice President and CFO

                            SECURED PARTY: BASELINE CAPITAL, INC.

                            By: /s/ Karl J. Reiter\
                               ----------------------------------------------
                               Karl J. Reiter, President

                                       17Exhibit 10.6

                 FIRST AMENDMENT TO SUBORDINATED DEED OF TRUST,
                   MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF
                       PRODUCTION AND FINANCING STATEMENT

     This First Amendment to Subordinated Deed of Trust, Mortgage, Security
Agreement, Assignment of Production and Financing Statement (this "FIRST
AMENDMENT") dated as of April 27, 2011, is executed by and between BARON ENERGY
INC., a Nevada corporation ("GRANTOR"), as successor in interest to Permian
Legend Petroleum LP, whose address is 392 West Mill Street, New Braunfels, Texas
78130, and BASELINE CAPITAL, INC., a Texas corporation (hereinafter called
"BENEFICIARY"), whose address is 310 West Wall, Suite 803, Midland, Midland
County, Texas 79701.

                                    RECITALS:

A. Grantor's predecessor in interest, Permian Legend Petroleum LP, ("PERMIAN"),
has heretofore executed and delivered to Beneficiary that certain subordinated
Deed of Trust, Mortgage, Security Agreement, Assignment of Production and
Financing Statement dated August 1, 2007 (the "ORIGINAL DEED OF TRUST"),
recorded in the counties listed on Schedule 1 attached hereto and made a part
hereof, to secure certain indebtedness as described in the Original Deed of
Trust, including, without limitation, that certain Promissory Note dated August
1, 2007, in the original principal amount of $500,000.00, executed by Permian
and payable to the order of Beneficiary (the "PRIOR NOTE").

B. Through a series of corporate transactions, Grantor is the successor in
interest to Permian and is obligated to Beneficiary under the Prior Note and the
Original Deed of Trust.

C. Contemporaneously with the execution hereof, Grantor has executed a new
promissory note in the original principal amount of $100,000.00 payable to
Beneficiary and dated of even date herewith (the "NEW NOTE") in renewal and
extension of the Prior Note.

D. Also contemporaneously with the execution hereof, Grantor and Beneficiary
have entered into that certain First Amended and Restated Loan Agreement dated
of even date herewith (the "RESTATED LOAN AGREEMENT"), amending and restating
the Loan Agreement defined in the Original Deed of Trust.

E. Grantor and Beneficiary desire to amend the Original Deed of Trust to reflect
the New Note and Restated Loan Agreement, and to reflect a change in the
indebtedness secured by the Original Deed of Trust.

     NOW, THEREFORE, in consideration of the premises and of the debts and
trusts mentioned above, and the agreements herein contained and other good and
valuable consideration, Grantor and Beneficiary, for themselves and their
respective successors, heirs and assigns, agree as follows:

1. The definition of "GRANTOR" in the Original Deed of Trust is hereby amended
to mean Baron Energy, Inc., as successor in interest to Permian.

2. Section 1.1 and Section 1.2 of the Original Deed of Trust is hereby amended
in its entirety to read as follows:

     Section 1.1 Note (whether one or more). That certain Promissory Note dated
     as of April 27, 2011 having a face amount of $100,000.00 executed by
     Grantor, ("BORROWER") and payable to Beneficiary bearing interest as
     specified therein, being payable at Beneficiary's office in Midland, Texas
     or at such other office as Beneficiary shall direct in writing and, if not

                                       1
<PAGE>
     sooner matured (by acceleration or otherwise) finally maturing on May 1,
     2015 (the "NOTE").

     Section 1.2 First Amended and Restated Loan Agreement. All indebtedness and
     obligations of Borrower to Beneficiary under or arising pursuant to that
     certain First Amended and Restated Loan Agreement dated as of April 27,
     2011 by and between Borrower and Beneficiary (such First Amended and
     Restated Loan Agreement as the same may from time to time be amended,
     modified, renewed, extended or restated, in whole or in part, being herein
     called the "LOAN AGREEMENT").

3. Exhibit A attached to the Original Deed of Trust is hereby amended in its
entirety to read as set forth on Exhibit A attached hereto.

4. Miscellaneous.

(a) The terms used herein not so otherwise defined shall be defined as indicated
in the Original Deed of Trust.

(b) This First Amendment shall be considered as an amendment to the Original
Deed of Trust and, except as herein expressly amended, the Original Deed of
Trust is hereby ratified, approved and confirmed in every respect and the
Original Deed of Trust and this First Amendment shall be read, taken and
construed together as one and the same instrument. Nothing contained herein
shall be construed to impair the liens and security interests of the Original
Deed of Trust on any of the properties covered thereby and such liens and
security interests are hereby renewed, reaffirmed and extended and shall remain
in force and effect as security for all of the secured indebtedness now or
hereafter outstanding under the Original Deed of Trust, as amended hereby.

(c) This instrument may be executed in any number of counterparts, each of which
shall be deemed an original and all of which are identical.

(D) THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

                                       2
<PAGE>
     IN WITNESS WHEREOF, this instrument is executed as of the day, month and
year first above written.

BENEFICIARY:                             GRANTOR:
BASELINE CAPITAL, INC.                   BARON ENERGY, INC.

By: /s/ Karl J. Reiter                   By: /s/ Lisa P. Hamilton
    --------------------------------         -----------------------------------
    Karl J. Reiter                       Name:  Lisa P. Hamilton
    President                            Title: Executive Vice President and CFO

THE STATE OF TEXAS       ss.
COUNTY OF COMAL          ss.

     This instrument was acknowledged before me on this 4th day of May, 2011, by
Lisa P. Hamilton, Executive Vice President and CFO of BARON ENERGY, INC., a
Nevada corporation, on behalf of said corporation.

                                         /s/ Sue B. Blair
                                         ---------------------------------------
                                         Notary Public, State of Texas

THE STATE OF TEXAS       ss.
COUNTY OF MIDLAND        ss.

     This instrument was acknowledged before me on this 5th day of May, 2011, by
Karl J. Reiter, President of BASELINE CAPITAL, INC., a Texas corporation, on
behalf of said corporation.

                                         /s/ Cheryl A. Barton
                                         ---------------------------------------
                                         Notary Public, State of Texas

                                       3
<PAGE>
                                   SCHEDULE 1
                                       TO
  FIRST AMENDMENT TO SUBORDINATED DEED OF TRUST, MORTGAGE, SECURITY AGREEMENT,
                ASSIGNMENT OF PRODUCTION AND FINANCING STATEMENT
                FROM BARON ENERGY, INC. TO BASELINE CAPITAL, INC.

                       RECORDING OF ORIGINAL DEED OF TRUST

County                           Volume/Page                     Records

Jones County, Texas              Volume 268, Page 273            Official Public

Runnels County, Texas            Volume 288, Page 181            Official Public

Taylor County, Texas             Volume 3399, Page 943           Official Public

                                       1
<PAGE>
                                    EXHIBIT A

CRAMER REYNOLDS LEASE, JONES COUNTY, TEXAS

TRACT NO. 1:

BEING 220 acres of land, more or less, out of the South part of Section No. 31,
Block 18, T&P RR Co. Survey, Jones County, Texas, being more fully described in
the following lease:

     Date:             December 3, 1980
     Lessor:           Cramer Reynolds, et ux
     Lessee:           M.  L.  Richards
     Recorded:         Volume 636, Page 207, Deed Records of Jones County, Texas

TRACT NO. 2:

BEING 100 acres of land, more or less, out of the East Central part of Section
No. 31, Block 18, T&P RR Co. Survey, Jones County, Texas, being more fully
described in the following leases:

     Lease No. 1:
     Date:             March 8, 1984
     Lessor:           Mary Ann Johnson
     Lessee:
     Recorded:         Volume, Page, Deed Records of Jones County, Texas

     Lease No. 2:
     Date:             March 8, 1984
     Lessor:           Don F. Smith
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 679, Page 107, Deed Records of Jones County, Texas

     Lease No. 3:
     Date:             March 5, 1984
     Lessor:           Margaret O. Lyons
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 677, Page 715, Deed Records of Jones County, Texas

     Lease No. 4:
     Date:             March 5, 1984
     Lessor:           Kathryn A. Evans
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 671, Page 712, Deed Records of Jones County, Texas

     Lease No. 5:
     Date:             February 21, 1984
     Lessor:           Mary Clare Holt
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 677, Page 114, Deed Records of Jones County, Texas

     Lease No. 6:
     Date:             February 21, 1984
     Lessor:           Kathleen A. Divine
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 677, Page 131, Deed Records of Jones County, Texas

                                      A-1
<PAGE>
     Lease No. 7:
     Date:             February 21, 1984
     Lessor:           E. Louise Nicholson
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 671, Page 134, Deed Records of Jones County, Texas

     Lease No. 8:
     Date:             October 22, 1981
     Lessor:           Allan L.  Cade, Jr.
     Lessee:           M.  L.  Richards
     Recorded:         Volume 645, Page 623, Deed Records of Jones County, Texas

     Lease No. 9:
     Date:             October 22, 1981
     Lessor:           Berry Cade Smith
     Lessee:           M. L. Richards.
     Recorded:         Volume 645, Page 607, Deed Records of Jones County, Texas

     Lease No. 10:
     Date:             April 12, 1984
     Lessor:           William J. Pegg, Jr.
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 679, Page 480, Deed Records of Jones County, Texas

     Lease No. 11:
     Date:             April 12, 1984
     Lessor:           Stephen W. Raines, Jr.
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 679, Page 448, Deed Records of Jones County, Texas

     Lease No. 12:
     Date:             March 5, 1984
     Lessor:           James D. Lyons
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 677, Page 709, Deed Records of Jones County, Texas

     Lease No. 13:
     Date:             March 8, 1984
     Lessor:           Doris Stephenson
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 679, Page 487, Deed Records of Jones County, Texas

     Lease No. 14:
     Date:             March 8, 1984
     Lessor:           William J. Ryan, Jr.
     Lessee:           Mecca Energy, Inc.
     Recorded:         Volume 679, Page 484, Deed Records of Jones County, Texas

                                      A-2
<PAGE>
     Lease No. 15:
     Date:             April 21, 1981
     Lessor:           Barbara Haines Ellison
     Lessee:           Frank W. Burger
     Recorded:         Volume 640, Page 751, Deed Records of Jones County, Texas

     Lease No. 16:
     Date:             April 21, 1981
     Lessor:           William J. Pegg, Jr.
     Lessee:           Frank W. Burger
     Recorded:         Volume 640, Page 771, Deed Records of Jones County, Texas

     Lease No. 17:
     Date:             April 21, 1981
     Lessor:           Udell Snyder
     Lessee:           Frank W. Burger
     Recorded:         Volume 641, Page 456, Deed Records of Jones County, Texas

     Lease No. 18:
     Date:             April 21, 1981
     Lessor:           William R. Snyder
     Lessee:           Frank W. Burger
     Recorded:         Volume 641, Page 458, Deed Records of Jones County, Texas

     Lease No. 19:
     Date:             April 21, 1981
     Lessor:           Stephen W. Raines
     Lessee:           Frank W. Burger
     Recorded:         Volume 640, Page 670, Deed Records of Jones County, Texas

     Lease No. 20:
     Date:             March 19, 1981
     Lessor:           Marion D. Johnston
     Lessee:           Mid-Texas Resource
     Recorded:         Volume 638, Page 516, Deed Records of Jones County, Texas

     Lease No. 21:
     Date:             January 9, 1981
     Lessor:           Helen B. McDermott, et vir
     Lessee:           M.  L.  Richards
     Recorded:         Volume 635, Page 823, Deed Records of Jones County, Texas

     Lease No. 22:
     Date:             January 12, 1981
     Lessor:           Hardin Simmons University
     Lessee:           M.  L.  Richards
     Recorded:         Volume 635, Page 830, Deed Records of Jones County, Texas

     Lease No. 23:
     Date:             January 9, 1981
     Lessor:           Gladys McLane, et vir
     Lessee:           M. L.  Richards
     Recorded:         Volume 635, Page 833, Deed Records of Jones County, Texas

                                      A-3
<PAGE>
     Lease No. 24:
     Date:             January 9, 1981
     Lessor:           Daniel J. Lyons, et ux
     Lessee:           M. L.  Richards
     Recorded:         Volume 635, Page 836, Deed Records of Jones County, Texas

     Lease No. 25:
     Date:             January 9, 1981
     Lessor:           Leonard Blaylock, et ux
     Lessee:           M. L.  Richards
     Recorded:         Volume 635, Page 839, Deed Records of Jones County, Texas

     Lease No. 26:
     Date:             January 9, 1981
     Lessor:           Mabel S. Haines
     Lessee:           M. L.  Richards
     Recorded:         Volume 636, Page 96, Deed Records of Jones County, Texas

     Lease No. 27:
     Date:             January 9, 1981
     Lessor:           Paul T.  Westervelt, et ux
     Lessee:           M. L.  Richards
     Recorded:         Volume 636, Page 144, Deed Records of Jones County, Texas

     Lease No. 28:
     Date:             December 3, 1980
     Lessor:           Cramer Reynolds, et ux
     Lessee:           M. L.  Richards
     Recorded:         Volume 636, Page 207, Deed Records of Jones County, Texas

     Lease No. 29:
     Date:             January 9, 1981
     Lessor:           William A.  Hammer, et ux
     Lessee:           M. L.  Richards
     Recorded:         Volume 636, Page 270, Deed Records of Jones County, Texas

     Lease No. 30:
     Date:             March 23, 1981
     Lessor:           Jack Sayles, individually & as independent Executor of
                       the Estate of John and Frances Sayles, both deceased.
     Lessee:           M. L. Richards
     Recorded:         Volume 638, Page 177, Deed Records of Jones County, Texas

     Lease No. 31:
     Date:             March 26, 1981
     Lessor:           Mary France Peeter
     Lessee:           M. L.  Richards
     Recorded:         Volume 638, Page 462, Deed Records of Jones County, Texas

                                      A-4
<PAGE>
W. A. ASHTON LEASE. RUNNELS COUNTY, TEXAS

1.   Lease dated June 6, 1976, executed by Jerome V. Ray, et al as Lessor, to
     Dick Grant, as Lessee, as amended by Extension and Ratification Agreement
     between the same parties, dated May 18, 1978, and recorded in Volume 478,
     Page 410 of the Deed Records of Runnels County, Texas, covering the South
     50 acres of a certain tract containing 121.5 acres out of the A. P.
     Thompson Survey No. 3 and a tract containing approximately 208 acres out of
     Blocks C and B of the H. B. Adams Subdivision of Part of the Austin &
     Williams Survey No. 262, in Runnels County, Texas, which tracts are
     particularly described in said lease.

2.   Lease dated May 26, 1972, executed by W. A. Ashton, as Lessor, to Dick
     Grant, as Lessee, covering 335.17 acres, more or less, in Runnels County,
     Texas, comprising portions of the ETRy. Company Survey No. 143, Abstract
     No. 157, and J. H. Wilson Survey No. 144, Abstract No. 287, particularly
     described therein, said lease being duly recorded in Volume 424, Page 69 of
     the Deed Records of Runnels County, Texas.

3.   Lease dated May 26, 1972, executed by W. A. Ashton, as Lessor, to Dick
     Grant, as Lessee, covering 367.33 acres out of the East part of the ETRy.
     Company Survey No. 143, Abstract No. 157, particularly described therein,
     said lease being duly recorded in Volume 424, Page 71 of the Deed Records
     of Runnels County, Texas.

4.   Lease dated June 16, 1972, executed by W. A. Ashton, as Lessor, to Dick
     Grant, as Lessee, covering approximately 318 acres in the J. H. Wilson
     Survey No. 160, therein particularly described, said lease being duly
     recorded in Volume 427, Page 525 of the Deed Records of Runnels County,
     Texas.

CURB LEASE, TAYLOR COUNTY, TEXAS

Being the West 100 acres of Lot 7, League 147, Grimes County School Land Survey,
Taylor County, Texas, being more fully described in the following lease:

     Date:           October 14, 1983
     Lessor:         E. Byron Curb, Dorothy Lee Curb and Evelyn Beasley
     Lessee:         G/O International, Inc.
     Recorded:       Volume 1372, Page 134, Deed Records of Taylor County, Texas

SURFACE LEASE AGREEMENT - CURB TANK BATTERY, TAYLOR COUNTY, TEXAS

Being the present surface site of the "Curb" tank battery facility, Subdivision
7, Grimes County School Lands #147, A-73, Taylor County, Texas being more fully
described in the following Surface Lease Agreement:

     Date:           July 1, 2006
     Lessor:         Ransome Price
     Lessee:         Greasewood Operating, Ltd.
     Recorded:       Volume 3258, Page 607, Deed Records of Taylor County, Texas

                                      A-5
<PAGE>
HUDDLESTON LEASE, TAYLOR COUNTY, TEXAS

LAND:

Being the following Oil & Gas leases insofar as the same cover all of the North
one-half (N/2) of Lot No. 4, League No. 147, and being a part of that certain
105 acres of land described in that certain Deed dated May 16, 1918 from W. O.
Carter, et al to D. O. Huddleston and being recorded in Volume 100, Page 144 of
the Deed Records of Taylor County, Texas:

LEASES:

Lease No. 1:
     Date:           February 15, 1982
     Lessor:         Stacey Martin & Willie Hodo Huddleston
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1233, Page 783, Deed Records of Taylor County, Texas

Lease No. 2:
     Date:           February 15, 1982
     Lessor:         Fvora Lang
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1233, Page 786, Deed Records of Taylor County, Texas

Lease No. 3:
     Date:           February 15, 1982
     Lessor:         Wanda Meeks & Henry Meeks
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1234, Page 560, Deed Records of Taylor County, Texas

Lease No. 4:
     Date:           February 15, 1982
     Lessor:         Jack Q. Huddleston
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1234, Page 562, Deed Records of Taylor County, Texas

Lease No. 5:
     Date:           February 15, 1982
     Lessor:         Clarence F. Huddleston, et ux, Barbara Huddleston
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1234, Page 564, Deed Records of Taylor County, Texas

Lease No. 6:
     Date:           February 15, 1982
     Lessor:         Mack Hodo, et ux, Wanda Hodo
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1234, Page 566, Deed Records of Taylor County, Texas

                                      A-6
<PAGE>
Lease No. 7:
     Date:           February 15, 1982
     Lessor:         Nadine Osborn and J. J. Osborn
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1234, Page 810, Deed Records of Taylor County, Texas

Lease No. 8:
     Date:           February 15, 1982
     Lessor:         Leonard Smith, et ux, Lola Smith
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1234, Page 817, Deed Records of Taylor County, Texas

Lease No. 9:
     Date:           February 15, 1982
     Lessor:         Gary Mackey, et ux, Margaret Mackey and Elizabeth Mackey,
                     Attorney-in-Fact
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1234, Page 636, Deed Records of Taylor County, Texas

Lease No. 10:
     Date:           February 15, 1982
     Lessor:         Mauryne Talamini & Oliver Talamini
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1236, Page 638, Deed Records of Taylor County, Texas

Lease No. 11:
     Date:           February 15, 1982
     Lessor:         Harold Smith, et ux, Mary E. Smith
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1236, Page 643, Deed Records of Taylor County, Texas

Lease No. 12:
     Date:           February 15, 1982
     Lessor:         Nellie Crum
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1238, Page 129, Deed Records of Taylor County, Texas

Lease No. 13:
     Date:           February 15, 1982
     Lessor:         Earl Smith & Phillis Williams, for the Estate of Hazel
                     Smith
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1238, Page 131, Deed Records of Taylor County, Texas

                                      A-7
<PAGE>
Lease No. 14:
     Date:           February 15, 1982
     Lessor:         Pat Smith
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1238, Page 714, Deed Records of Taylor County, Texas

Lease No. 15:
     Date:           February 15, 1982
     Lessor:         Freda Neil Thesz
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1239, Page 789, Deed Records of Taylor County, Texas

Lease No. 16:
     Date:           February 15, 1982
     Lessor:         Parker W. Duncan, Executor of the Estate of Mary D. Duncan
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1244, Page 163, Deed Records of Taylor County, Texas

Lease No. 17:
     Date:           February 15, 1982
     Lessor:         Hile Pritchard et ux, Lena Pritchard
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1244, Page 863, Deed Records of Taylor County, Texas

Lease No. 18:
     Date:           February 15, 1982
     Lessor:         Helen Lee Tuggle, et al
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1247, Page 607, Deed Records of Taylor County, Texas

Lease No. 19:
     Date:           August 4, 1982
     Lessor:         Mildred Springer
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1255, Page 842, Deed Records of Taylor County, Texas

Lease No. 20:
     Date:           August 4, 1982
     Lessor:         Mildred Springer
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1255, Page 840, Deed Records of Taylor County, Texas

                                      A-8
<PAGE>
Lease No. 21:
     Date:           April 22, 1983
     Lessor:         First National Bank of Abilene
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1291, Page 409, Deed Records of Taylor County, Texas

Lease No. 22:
     Date:           April 20, 1983
     Lessor:         Hudson Smart
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1292, Page 445, Deed Records of Taylor County, Texas

Lease No. 23:
     Date:           July 28, 1982
     Lessor:         Geneva M. Godsey
     Lessee:         Mid-Tex Resources
     Recorded:

Lease No. 24:
     Date:           January 25, 1983
     Lessor:         Betty McClure and Jessee McClure
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1295, Page 802, Deed Records of Taylor County, Texas

Lease No. 25:
     Date:           February 22, 1983
     Lessor:         Don Roberts, et ux, Beverly Roberts
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1288, Page 599, Deed Records of Taylor County, Texas

Lease No. 26:
     Date:           February 22, 1983
     Lessor:         Barry D. Cunningham
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1288, Page 603, Deed Records of Taylor County, Texas

Lease No. 27:
     Date:           February 22, 1983
     Lessor:         Larry L. Cunningham
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1288, Page 601, Deed Records of Taylor County, Texas

                                      A-9
<PAGE>
Lease No. 28:
     Date:           October 14, 1982
     Lessor:         Hudson Smart
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1276, Page 47, Deed Records of Taylor County, Texas

Lease No. 29:
     Date:           January 25, 1983
     Lessor:         Vivian E. Ferguson
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1282, Page 699, Deed Records of Taylor County, Texas

Lease No. 30:
     Date:           July 28, 1982
     Lessor:         Betty Hogan
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1282, Page 701, Deed Records of Taylor County, Texas

Lease No. 31:
     Date:           January 25, 1983
     Lessor:         Charles W. McClure et ux, Sally McClure
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1282, Page 801, Deed Records of Taylor County, Texas

Lease No. 32:
     Date:           January 23, 1984
     Lessor:         Velma Huddleston
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1333, Page 547, Deed Records of Taylor County, Texas

Lease No. 33:
     Date:           February 15, 1982
     Lessor:         Norma J. Field, et vir, James Field
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1287, Page 504, Deed Records of Taylor County, Texas

Lease No. 34:
     Date:
     Lessor:         Larry Cunningham, et ux, Geneva Cunningham
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1328, Page 759, Deed Records of Taylor County, Texas

                                      A-10
<PAGE>
Lease No. 35:
     Date:           January 13, 1984
     Lessor:         Robert L. Huddleston
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1333, Page 76, Deed Records of Taylor County, Texas

Lease No. 36:
     Date:           January 13, 1984
     Lessor:         D. O. Huddleston
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1332, Page 411, Deed Records of Taylor County, Texas

Lease No. 37:
     Date:           June 18, 1984
     Lessor:         Janice Lyons, Taylor County Clerk, Receiver in Cause No.
                     16,051-B, 104th District Court, Taylor County, Texas
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1354, Page 620, Deed Records of Taylor County, Texas

SALT WATER DISPOSAL LEASE, D.L. MOORE #1, TAYLOR COUNTY, TEXAS

Being the D. L. Moore #1 well bore located in Lot 14, League 147, Grimes County
School Land Survey, Taylor County, Texas and more fully described in the
following Salt Water Disposal Lease:

     Date:           June 1, 2005
     Lessor:         Billy Bob Toombs & Freddy Toombs
     Lessee:         Greasewood Oil Co.
     Recorded:       Volume 3165, Page 288, Deed Records of Taylor County, Texas

MOORE #1, TAYLOR COUNTY, TEXAS

LANDS:

Tract 1:

     Being 80.00 acres of land, more or less, in the East One-Half (E/2) of the
     J. H. Clark Survey No. 14 out of the Grimes County School Land League #147,
     Taylor County, Texas.

Tract 2:

     Being 20.00 acres of land, more or lease, out of the Southeast quarter
     (SE/4) of the J.H. Clark Survey, No. 14 of the Grimes County School Land
     League No. 147, Taylor County, Texas.

                                      A-11
<PAGE>
LEASE:

     Date:           September 25, 1985
     Lessor:         Dee Laverne Moore
     Lessee:         Mid-Tex Resources
     Recorded:       Volume 1426, Page 543, Deed Records of Taylor County, Texas

PRICE, P. PRICE, & PRICE -A- LEASES, TAYLOR COUNTY, TEXAS

LAND:

Being 60.00 acres of land, more or less, out of the East part of Lot No. 7,
Grimes County School Land Survey No. 147, Taylor County, Texas, and being the
same land described in that certain Deed dated October 20, 1927 from Seth
Morgan, et ux, to Mrs. Pinkie Price, recorded in Volume 196 at Page 108 of the
Deed Records of Taylor County, Texas.

LEASES:

Lease No. 1:
     Date:           October 5, 1979
     Lessor:         Jim B. Price
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1161, Page 750, Deed Records of Taylor County, Texas

Lease No. 2:
     Date:           October 5, 1979
     Lessor:         Billy J. Price
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1135, Page 746, Deed Records of Taylor County, Texas

Lease No. 3:
     Date:           October 8, 1979
     Lessor:         Robert E. Price
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1135, Page 748, Deed Records of Taylor County, Texas

Lease No. 4:
     Date:           October 9, 1979
     Lessor:         David J. Stanford
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1135, Page 752, Deed Records of Taylor County, Texas

                                      A-12
<PAGE>
Lease No. 5:
     Date:           October 9, 1979
     Lessor:         Kenneth Stanford
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1135, Page 740, Deed Records of Taylor County, Texas

Lease No. 6:
     Date:           October 9, 1979
     Lessor:         Vivian Stanford Pusok
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1135, Page 742, Deed Records of Taylor County, Texas

Lease No. 7:
     Date:           October 9, 1979
     Lessor:         Vivian Stanford Pusok
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1135, Page 742, Deed Records of Taylor County, Texas

Lease No. 8:
     Date:           October 11, 1979
     Lessor:         Dottie Price
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1161, Page 753, Deed Records of Taylor County, Texas

Lease No. 9:
     Date:           November 6, 1979
     Lessor:         Ransom Price, Jr.
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1135, Page 759, Deed Records of Taylor County, Texas

Lease No. 10:
     Date:           November 6, 1979
     Lessor:         Ruth A. Price, Individually and as Guardian of the Estate
                     of Dave Scott Price
     Lessee:         Larry J. Mashburn
     Recorded:       Volume 1135, Page 750, Deed Records of Taylor County, Texas

W. S. SHAFFER -B- & ET AL LEASES, TAYLOR COUNTY, TEXAS

LAND:

Tract 1

     Being 314.80 acres of land situated in Taylor County, Texas, and being the
     North Half of Survey No. 12, Certificate No. 17/368, Block No. 3, S. P. RR
     Company Lands, and being the same land described by metes and bounds in a

                                      A-13
<PAGE>
     Patent from the State of Texas to J. L. Pierce, dated April 12, 1951,
     recorded in Volume G-2, Page 143, of the Patent Records of Taylor County,
     Texas.

Tract 2

     Being 167.5 acres, more or less, out of Survey No. 6, Certificate No. 4508,
     G. C. & S. RR Company Lands in Taylor County, Texas being described as
     follows, to-wit:

     BEGINNING at the Northwest corner S. F. 15185, W. S. Shaffer Survey No. 1;
     THENCE South 15(degree)East with the West line S.F. 15185, 2,293 varas, to
     fence;
     THENCE in a westerly direction with said fence to an inner corner of
     said G. C. & S. RR Company Survey No. 6;
     THENCE North 15(degree)West with a west line of said G. C. & S. RR Company
     Survey No. 6, 2,152.2 varas to the South line of a tract owned by Sayles;
     THENCE North 75o 25' East 425.6 varas with a fence to the place of
     beginning.

LEASE:
     Date:           September 9, 1958
     Lessor:         W. S. Shaffer, et al
     Lessee:         J. R. McLean
     Recorded:       Volume 574, Pages 186, Deed Records of Taylor County, Texas

W. S. SHAFFER -C- LEASE, TAYLOR COUNTY, TEXAS

LAND:

     BEING ALL OF THE W. S. Shaffer Survey No. 1, S. F. 15185, Taylor County,
     Texas, patented to W. S. Shaffer by the State of Texas on June 11, 1951, by
     Patent No. 475, Volume 17-B, and containing 136.55 acres, more or less.

LEASE:
     Date:           April 30, 1970
     Lessors:        M. C. Shaffer, et al
     Lessee:         J. D. Tompkins
     Recorded:       Volume 880, Page 501, Deed Records of Taylor County, Texas

                                      A-14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]