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                                                              Exhibit 10.39

                            ANGELICA CORPORATION
                RETENTION AND TRANSITION EMPLOYMENT AGREEMENT
                ---------------------------------------------

            This agreement ("Agreement") has been entered into as of this
29th day of January, 2004 (the "Effective Date"), by and between Angelica
Corporation, a Missouri corporation ("Angelica" or "Company"), and Daniel J.
Westrich, an individual ("Westrich").

            WHEREAS, Angelica currently employs Westrich as Vice President
-- Information Systems, pursuant to that certain Employment Agreement, as
amended, dated the 1st day of February, 2003, (the "Current Employment
Agreement"); and

            WHEREAS, the Company is in the process of evaluating and
pursuing strategic alternatives for its Life Uniform Stores business,
including the possible sale of those operations; and

            WHEREAS, additionally, pursuant to a reorganization and
transition plan presented to and approved by the Board of Directors of
Angelica (the "Board"), certain corporate headquarters functions, including
the information systems function for which Westrich is responsible, will,
over the course of the upcoming several months, be reorganized and relocated
to the Company's division headquarters facility in the Atlanta, Georgia
metropolitan area; and

            WHEREAS, both parties recognize and acknowledge that, following
such reorganization and relocation of those corporate headquarters
functions, and implementation of strategic alternatives for the Company's
Life Uniform Store business, Westrich's services as Vice President -
Information Services, will no longer be required; and

            WHEREAS, due to his familiarity with the Company's information
systems activities and his past experience with the transition,
reorganization and relocation of information systems activities, Westrich's
continued leadership will help insure the Company's success in completing
these plans; and

            WHEREAS, Westrich is willing to delay, until August 31, 2004,
his resignation as Vice President - Information Systems, and to remain
employed by Angelica until that time to assist in completing the
implementation of these transition plans; and

            WHEREAS, Westrich and Angelica wish to agree upon the terms and
conditions of Westrich's continued employment during this transition period,
and his resignation as of August 31, 2004, in this Agreement which will
supercede in its entirety the Current Employment Agreement (as identified
above).

            NOW THEREFORE, in consideration of the mutual promises herein
contained, the parties hereto agree as follows:

SECTION 1:  TERM OF AGREEMENT

            1.1      CONTINUED EMPLOYMENT.  During the period commencing
on the Effective Date of this Agreement and ending August 31, 2004, (the
"Employment Expiration Date") (said period being referred to herein as the
"Continued Employment Period"), Westrich will continue to be employed by
Angelica as Vice President -- Information Systems in accordance with the
terms, conditions and provisions of this Agreement.

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SECTION 2:  TERMS AND CONDITIONS OF CONTINUED EMPLOYMENT.

            2.1      DUTIES AND RESPONSIBILITIES. During the Continued
Employment Period, Westrich will be subject to the reasonable directions of
the Chief Financial Officer or Chief Executive Officer of Angelica, and the
Board. Westrich shall have such authority and shall perform such duties as
are specified in the bylaws of Angelica for the office and position to which
he has been appointed hereunder. Westrich agrees to devote such of his time,
attention and energy to the business of Angelica as may be required to
perform the duties and responsibilities assigned to him to the best of his
ability and with reasonable diligence. It is understood and agreed that,
while Westrich is expected to continue to perform such duties and
responsibilities similar to those that he has performed previously during
his employment as Vice President -- Information Systems, he is expected to
devote approximately one-half of his time and effort to the evaluation and
implementation of strategic alternatives relating to Angelica's Life Uniform
Stores business segment.

            2.2      COMPENSATION. During the Continued Employment Period,
Westrich's base salary will continue at the annual rate of $168,000, payable
in accordance with Angelica's current payroll practices. Additionally,
except as otherwise provided in this Section 2.2, and otherwise subject to
the terms, conditions and provisions of this Agreement, Westrich will be
entitled to continue his participation in those executive compensation plans
and programs in which he participated immediately prior to the commencement
of the Continued Employment Period. Such continued participation will
continue to be in accordance with the terms and conditions of such plans and
programs and of this Agreement. It is expressly understood and agreed,
however, that, as of the Effective Date of this Agreement, Westrich will no
longer be entitled to participate in, or to earn incentive compensation
under, either the Company's short-term or long-term incentive compensation
plans, or under any other plan or program, whether or not available to other
employees or officers of Angelica.

            2.3      BENEFITS. During the Continued Employment Period, and
subject to the provisions of Section 2.2 above, Westrich will continue to be
entitled to those health and welfare benefits generally available to other
employees of Angelica, and to which Westrich was entitled immediately prior
to the commencement of the Continued Employment Period, including Angelica's
healthcare and dental plans, Angelica's Retirement Savings Plan (401(k)),
Angelica's Mirror 401(k) and Deferred Compensation Plan, Angelica's
qualified pension plan, Angelica's AD&D plan and Angelica's life insurance
plan.

SECTION 3:  RETENTION PAYMENTS.

            3.1      RETENTION PAYMENTS. Pursuant to the terms of the Current
Employment Agreement, Westrich was to be employed by Angelica for a period
substantially beyond the Employment Expiration Date, and was to receive
compensation and benefits during that extended period, including the
opportunity to earn additional incentive compensation. In consideration for
Westrich's agreement to delay his resignation and continue his employment
until the Employment Expiration Date, and in consideration for his agreement
to forgo the opportunity to earn additional incentive compensation, Angelica
agrees, that in addition to the compensation and benefits described in
Section 2 above, Westrich is entitled to the following:

                     3.1.1 Not later than January 31, 2004, Angelica
                     will pay Westrich a lump-sum amount of $84,000,
                     less applicable taxes, withholdings and standard
                     deductions.

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                     3.1.2 Any restricted "Matching Shares" and "Elected
                     Shares" (as each term is defined in Angelica's
                     Stock Bonus and Incentive Plan), held by or on
                     behalf of Westrich shall immediately vest as of
                     January 31, 2004.

                     3.1.3 Any stock options held by Westrich which, as
                     of the Effective Date of this Agreement, have not
                     yet vested, will continue to vest during the
                     Continued Employment Period, and will be
                     exercisable, all in accordance with the terms and
                     conditions under which such options were granted.

SECTION 4:  TERMINATION; BENEFITS UPON TERMINATION.

            4.1      TERMINATION. Notwithstanding Section 1.1, or anything
else to the contrary contained in this Agreement, and subject to the
provisions of Section 4.2.1 below, Angelica may terminate this Agreement,
and Westrich's employment hereunder, at any time during the Continued
Employment Period. Unless earlier terminated as provided herein, or unless
otherwise expressly agreed to by both parties in writing, this Agreement,
and Westrich's employment with Angelica, shall terminate as of and effective
on the Employment Expiration Date of August 31, 2004.

            4.2      BENEFITS UPON TERMINATION.

                     4.2.1 If, at any time prior to the Employment
                     Expiration Date, Angelica terminates Westrich's
                     employment for any reason other than for Cause (as
                     that term is defined below), Angelica will continue
                     to make payments to Westrich for the remainder of the
                     Continued Employment Period equal to the compensation
                     amounts to be paid Westrich pursuant to Section 2.2
                     above, less applicable taxes, withholdings and
                     standard deductions. For purposes of this Agreement,
                     the term "Cause", when used in connection with the
                     termination of Westrich's employment, means
                     termination based upon (i) Westrich's willful and
                     continued failure to substantially perform his duties
                     with Angelica (other than as a result of incapacity
                     due to physical or mental condition), after written
                     demand for substantial performance is delivered to
                     Westrich by Angelica, which specifically identifies
                     the manner in which Westrich has not substantially
                     performed his duties; (ii) Westrich's commission of
                     an act constituting a criminal offense involving
                     moral turpitude, dishonesty or breach of trust; or
                     (iii) Westrich's material breach of any provision of
                     this Agreement.

                     4.2.2 If, at any time prior to the Employment Expiration
                     Date, Westrich's employment is terminated by Westrich for
                     any reason, or by Angelica with Cause, Westrich shall not
                     be entitled to receive from Angelica, and Angelica shall
                     have no further obligations to pay to Westrich, any
                     further payments under this Agreement or otherwise,
                     except for such salary that is, as of the effective
                     date of any such termination, accrued but not yet
                     paid by Angelica, and any benefits or payments to
                     which Westrich might be entitled in accordance with
                     the terms and conditions of any benefit plan or
                     program in which Westrich participated during his
                     employment by Angelica.

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SECTION 5:  CONSULTING SERVICES. During the ninety (90) day period
immediately following the Employment Expiration Date, and at no additional
cost to Angelica, Westrich will remain reasonably available, during normal
business hours, for periodic and occasional telephone consultation with
Angelica with respect to those matters in which Westrich was involved during
his employment with Angelica, or with respect to such other matters as
Westrich may have knowledge. Further, it is understood and agreed that, as
of and following the Employment Expiration Date, Angelica may request that
Westrich provide such additional consulting services to Angelica, on an
independent contractor basis, of a nature, and for such period, as Angelica
may, in its sole discretion, deem necessary or appropriate, if any. In the
event Angelica requests such additional consulting services, the parties
will negotiate in good faith such mutually acceptable terms and conditions
under which such services will be provided, as well as the amount of any
consulting fees to be paid Westrich for such services. Angelica shall have
no obligation to request such consulting services and neither party shall be
obligated to enter into any such consulting arrangement except upon such
terms and conditions as are mutually agreeable and acceptable to each of
them.

SECTION 6:  NON-COMPETITION AND CONFIDENTIALITY COVENANTS.

            6.1      NON-COMPETE AGREEMENT. It is agreed that during the
period beginning on the Employment Expiration Date, or the effective date of
any earlier termination of Westrich's employment, and continuing for a
one-year period thereafter, Westrich shall not, either for himself or on
behalf of any person, firm or corporation (whether for profit or otherwise)
serve, through any commercial venture or otherwise, as a partner, officer,
director, stockholder, advisor, employee, consultant, agent, salesman,
venturer or otherwise, in a business enterprise in the United States, Canada
or any other country in which Angelica does business that is in substantial
direct competition with the business being conducted by Angelica as of the
Employment Expiration Date or as of the effective date of any earlier
termination of Westrich's employment. This requirement, however, will not
limit Westrich's right to make passive investments in the capital stock or
other equity securities (not in excess of 5% of the total outstanding
capital stock or equity securities) of any corporation regularly traded on
any public securities exchange.

            6.2      CONFIDENTIAL INFORMATION. Westrich acknowledges that
he holds in a fiduciary capacity for the benefit of Angelica all secret or
confidential information, knowledge or data relating to Angelica or any of
its affiliated companies, and their respective businesses, which has been
obtained during his employment with Angelica and which will not be or has
not become public knowledge (other than by acts of Westrich or
representatives of Westrich in violation of this Agreement). Westrich will
not, without the prior written consent of Angelica, or as may otherwise be
required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than Angelica and those
persons designated by Angelica in advance of the disclosure. In no event
shall an asserted violation of this Section 6.2 constitute a basis for
deferring or withholding any amounts otherwise payable to Westrich under
this Agreement.

            6.3      REASONABLENESS OF RESTRICTIONS. Westrich agrees that
the restrictions and the period and/or areas of restriction, as set forth in
this Section 6, are reasonably required for the protection of Angelica and
its business, as well as the continued protection of Angelica's employees.
If any one or more of the covenants, agreements or provisions contained
herein shall be held to be contrary to the policy of a specific law, though
not expressly prohibited, or against public policy, or shall for any other
reason whatsoever be held invalid, then such particular covenant, agreement
or provision shall be null and void and shall be deemed separable from the
remaining covenants, agreements and provisions, and shall in no way affect
the validity of any of the other covenants, agreements and provisions
hereof. The parties hereto agree that in the event that either the length of
time or the geographic area set forth in Section 6.1 is deemed too

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restrictive in any court proceeding, the court may reduce such restrictions
to those which it deems reasonable under the circumstances.

            6.4      EQUITABLE RELIEF. Any action by Westrich contrary to
the restrictive covenants contained in this Section 6 may as a matter of
course be restrained by equitable or injunctive process issued out of any
court of competent jurisdiction, in addition to any other remedies provided
in law. In the event of the breach of Westrich's covenants as set forth in
this Section 6 and Angelica's obtaining of injunctive relief, the period of
restrictions set forth herein shall commence from the date of the issuance
of the order which enjoins such activity.

SECTION 7:  MISCELLANEOUS.

            7.1      FULL SETTLEMENT. Angelica's obligation to make payments
or to provide benefits and to otherwise perform its obligations under this
Agreement shall be in full settlement of all claims that Westrich or his
beneficiaries may have against Angelica involving the expiration or
termination of Westrich's employment with Angelica.

            7.2      NOTICE. For purposes of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered or mailed by
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses as set forth below; provided that all
notices to Angelica shall be directed to the attention of the General
Counsel, or to such other address as one party may have furnished to the
other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

                  Notice to Westrich
                  ------------------

                  Daniel J. Westrich
                  2519 River Wind Ct.
                  St. Louis, Missouri 63129

                  Notice to Angelica
                  ------------------

                  Angelica Corporation
                  424 South Woods Mill Road
                  Chesterfield, Missouri  63017-3406
                  Attention:  General Counsel

            7.3      WAIVER. Westrich's or Angelica's failure to insist
upon strict compliance with any provision of this Agreement or the failure
to assert any right Westrich or Angelica may have hereunder shall not be
deemed to be a waiver of such provision or right or any other provision or
right of this Agreement and shall not operate or be construed as a waiver of
any subsequent breach of the same provision.

            7.4      APPLICABLE LAW. This Agreement shall be governed by
and construed in accordance with the laws of the State of Missouri, without
reference to its conflict of law principles.

            7.5      SUCCESSORS. This Agreement shall be binding upon and
inure to the benefit of any successor of Angelica and any such successor
shall be deemed to be substituted for Angelica under the

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terms of this Agreement. Angelica shall require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all
or substantially all of the business and/or assets of Angelica to assume
expressly and agree to perform the provisions of this Agreement as if no
such succession had taken place. As used in this Agreement, "Angelica" shall
mean Angelica as hereinbefore defined or any successor to Angelica's
business and/or assets which assumes and agrees to perform this Agreement.

            7.6      ENTIRE AGREEMENT. This Agreement contains the entire
agreement of the parties with respect to the subject matter hereof and
supersedes any prior written or oral agreements, understandings, discussions
or negotiations with respect thereto, including but not limited to the
Current Employment Agreement.

            7.7      WITHHOLDING. Angelica may withhold from any amounts
payable to Westrich under this Agreement any Federal, state or local taxes
as shall be required to be withheld under applicable law or regulation.

            IN WITNESS WHEREOF, Westrich and Angelica, pursuant to the
authorization from its Board, have caused this Agreement to be executed in
its name on its behalf, all as of the day and year first above written.

                                    /s/ Daniel J. Westrich
                                    ---------------------------------------
                                    Daniel J. Westrich

                                    ANGELICA CORPORATION

                                    By /s/ Stephen M. O'Hara
                                      -------------------------------------
                                      Stephen M. O'Hara
                                      President and Chief Executive Officer

                                     6EXHIBIT 10.4(e)
                                                                 ---------------

                       SIXTH AMENDMENT TO CREDIT AGREEMENT
                       BY AND BETWEEN GMX RESOURCES, INC.
                          AND LOCAL OKLAHOMA BANK, N.A.

            THIS SIXTH AMENDMENT TO CREDIT AGREEMENT (the "Amendment") is
executed to be effective as of the 1st day of March, 2004 by and between GMX
RESOURCES INC., an Oklahoma corporation, ENDEAVOR PIPELINE INC., an Oklahoma
corporation, and EXPEDITION NATURAL RESOURCES INC., an Oklahoma corporation (the
"Borrowers") and LOCAL OKLAHOMA BANK (the "Bank").

                              W I T N E S S E T H:

            WHEREAS, effective October 31, 2000 Borrowers and Bank entered into
that certain Credit Agreement (the "Original Agreement") whereby Bank provided
Borrowers with a revolving line of credit in an amount governed by a Borrowing
Base which shall not exceed $15,000,000.00, as evidenced by reducing revolving
promissory note with a stated like amount of even date with the Original
Agreement (the "Original Note").

            WHEREAS, as of June 18, 2001, Borrowers and Bank amended the
Original Agreement for the first time (the "First Amendment") in order to permit
certain preferred stock dividends and to evidence certain other changes as set
forth therein.

            WHEREAS, as of May 28, 2002, Borrowers and Bank amended the Original
Agreement as amended by the First Amendment for the second time (the "Second
Amendment") in order to increase the rate of interest, include a termination
fee, alter the reporting requirements and to make such additional changes as are
set forth therein.

            WHEREAS, as of August 14, 2002 Borrowers and Bank amended the
Original Agreement as amended by the First and Second Amendments for the third
time (the "Third Amendment") in order to modify certain financial covenants as
referenced therein.

            WHEREAS, certain portions of the Original Agreement as amended by
First, Second and Third Amendments were amended by a Loan Modification and
Forbearance Agreement in May of 2003 and a Second Loan Modification and
Forbearance Agreement in June 2003 (the "Forbearance Agreements").

            WHEREAS, as of August 31, 2003 Borrowers and Bank amended the
Original Agreement, as amended by the First, Second and Third Amendments for the
fourth time (the "Fourth Amendment") in order to extend the maturity date of the
Note, and to modify certain financial covenants as set forth therein.

            WHEREAS, as of January 16, 2004, Borrowers and Bank amended the
Original Agreement, as amended by the First, Second, Third, and Fourth
Amendments for the fifth time (the "Fifth Amendment") in order to modify the
reporting requirements, modify certain financial covenants, and to permit
certain additional indebtedness (the Original Agreement as amended by
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the First, Second, Third, Fourth and Fifth Amendments and as further modified by
the Forbearance Agreements is referred to herein as the "Agreement")

            WHEREAS, the obligations described in the Agreement are secured by,
among other things not specifically set forth herein, certain oil and gas
properties and other properties as set forth in the Agreement; and

            WHEREAS, all capitalized terms not otherwise defined herein shall
have those meanings assigned to such terms in the Agreement;

            WHEREAS, Borrowers and Bank desire to amend the Agreement for the
sixth time in order to evidence such changes to the Agreement as more
particularly set forth herein;

            NOW THEREFORE, in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrowers and the
Bank hereby agree to amend the Agreement as follows:

            A. CHANGES TO THE AGREEMENT

            1. The reference to "March 1, 2004" in the definition of "Maturity
Date" set forth in Section 1.2 of the Agreement, Additional Defined Terms, is
hereby replaced with "September 1, 2004" in order to evidence the agreement of
the parties to extend the Maturity Date.

            2. To evidence the Borrowers' continuing obligation to repay the
Note, the Borrower shall make and deliver to the Bank the amended and restated
promissory note in the form of Annex "1" hereto attached (the "Replacement
Note"), which shall substitute and replace in its entirety the Note referred to
in the Agreement, without cancellation, novation or payment.

            3. The document attached hereto as Annex "1" shall replace in its
entirety that document attached to the Agreement as Exhibit "A".

            4. Pursuant to Section 2.9 of the Agreement, from the date hereof
until the next Borrowing Base Determination the Borrowing Base shall be
$6,310,000.00.

            5. Pursuant to Section 2.9 of the Agreement, Borrowing Base
Determinations, beginning April 1, 2004 and continuing on the first day of each
month thereafter until re-determined pursuant to Section 2.9 of the Agreement,
the Monthly Commitment Reduction shall be $90,000.00.

            6. Except as otherwise set forth above, all other terms, covenants,
and conditions of the Agreement and all loans and/or notes are unaffected by
this Amendment.

            B. REPRESENTATIONS AND WARRANTIES

            Each Borrower hereby represents and warrants to Bank that:
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            1. Each Borrower is a corporation, duly organized, legally existing,
and in good standing under the laws of the State of Oklahoma, and is duly
qualified as a foreign corporation and in good standing in all other states
wherein the nature of its business or its assets make such qualification
necessary.

            2. Each Borrower's execution and delivery of this Amendment and
performance of its obligations hereunder: (a) are and will be within its powers;
(b) are duly authorized by its board of directors; (c) are not and will not be
in contravention of any law, statute, rule or regulation, the terms of its
articles or incorporation and bylaws, nor of any agreement or undertaking to
which any Borrower or any of its properties are bound; (d) do not require any
consent or approval (including governmental) which has not been given; and (e)
will not result in the imposition of liens, charges or encumbrances on any of
its properties or assets, except those in favor of Bank hereunder.

            3. This Amendment, when duly executed and delivered, will constitute
the legal, valid and binding obligations of Borrowers, enforceable in accordance
with its terms.

            4. All financial statements, balance sheets, income statements and
other financial data which have been or are hereafter furnished to Bank by
Borrowers to induce Bank to make the loans hereunder due, and as to subsequent
financial statements will, fairly represent each Borrower's financial condition
as of the dates for which the same are furnished. All such financial statements,
reports, papers and other data furnished to Bank are and will be, when
furnished: prepared in accordance with generally accepted accounting principles
consistently applied; accurate and correct in all material respects; and
complete insofar as completeness may be necessary to give Bank a true and
accurate knowledge of the subject matter. Since the date of the last such
financial statements, no material adverse change has occurred in the operations
or condition, financial or otherwise and other financial data provided to Bank;
of any Borrower, nor, to the best of their knowledge, has any Borrower incurred,
any material liabilities or made any material investment or guarantees, direct
or contingent, in any single case or in the aggregate, which has not been
disclosed to Bank.

            5. The Borrowers are the sole and lawful owner of the Collateral,
pledged, mortgaged or assigned by it, and Borrowers have, and as to after
acquired property or new properties will have, good right to cause the
Collateral to be hypothecated to Bank as security for the obligations described
in the Agreement, as amended hereby. Further, the ownership interests set forth
in that certain Engineering Report dated March 15, 2004 from Sproule Associates,
Inc. purported to be owned by Borrowers, or any one of them, are true and
correct and Borrowers do, in fact, own such interests in such Collateral.

            6. The Collateral set forth on that certain Engineering Report dated
March 15, 2004 from Sproule Associates, Inc. is free and clear of all mortgages,
liens and encumbrances, except for Permitted Liens. Further, Borrowers have no
invoices for labor related to such properties or materials provided to such
properties which have not been paid within 90 days from the date such invoice is
due and payable.
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            7. All of each Borrower's other representations and warranties set
forth in Section 8 of the Agreement, Representations and Warranties, are true
and correct on and as of the date hereof with the same effect as though made and
repeated by such Borrower as of the date hereof.

            C. CONDITIONS

            Bank's obligations under the Agreement, as hereby amended, are
subject to the following conditions:

            1. Bank and Borrowers shall have executed and delivered this
Amendment.

            2. Borrowers shall have paid Bank an amendment fee in the amount of
$25,000.00.

            3. Borrowers shall have executed and delivered such mortgages or
deeds of trust as are necessary, in Bank's discretion, to mortgage to Bank 100%
of all of Borrowers' Oil and Gas Properties given value by Bank in the Borrowing
Base as well as any interest of any Borrower in properties currently being
developed either (i) through the joint venture agreement with Penn-Virginia Oil
and Gas Corporation or (ii) with proceeds from Borrowers' recently completed
subordinated debt issue.

            4. Borrowers shall, or will from time to time, have executed such
additional mortgages, deeds of trust, financing statement and such other
documents as are deemed necessary by Bank in order to perfect a lien in favor of
Bank in and to those Oil and Gas Properties necessary to achieve the percentages
required by the covenants set forth herein.

            5. Each Borrower's representations and warranties set forth in
Section B hereof shall be true and correct on and as of the date hereof, and the
date of any subsequent advance with the same effect as though such
representation and warranty had been on and as of such date.

            6. Each Borrower shall have delivered copies of any amendments to
each such Borrower's Articles of Incorporation and/or Certificate of
Incorporation and all amendments to each such Borrower's by laws occurring
subsequent to the date of the Original Agreement accompanied by a certificate
issued by the secretary or an assistant secretary of the Borrowers, to the
effect that each such copy is correct and complete or a certificate that no such
amendments have occurred;

            7. Each Borrower shall have delivered a current certificate of
incumbency and signature of all of each Borrower's officers who are authorized
to execute Loan Documents on behalf of such Borrower, executed by the secretary
or an assistant secretary of such Borrower;

            8. Each Borrower shall have delivered copies of corporate
resolutions approving this Sixth Amendment, the Replacement Note and any other
documents required by Bank to be executed by each Borrower authorizing the
transactions contemplated herein and therein, duly adopted by the board of
directors of each of the Borrowers, accompanied by a certificate of the
respective secretary or an assistant secretary of each Borrower, to the effect
that such copies are true and correct copies of resolutions duly adopted at a
meeting or by unanimous consent of the board of directors of each Borrower and
that such resolutions constitute all the resolutions
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adopted with respect to such transactions, have not been amended, modified, or
revoked in any respect, and are in full force and effect as of the date of such
certificate;

            9. Borrowers shall have satisfied all conditions set forth in the
Agreement.

            10. As of the date hereof, and the date of any subsequent Advance,
no Event of Default nor any event which, with the giving of notice or lapse of
time, would constitute an Event of Default shall have occurred and be
continuing.

            D. OTHER NOTICES, COVENANTS AND MISCELLANEOUS TERMS

            1. As set forth above, the Bank hereby notifies Borrower that from
the date hereof the Borrowing Base shall be $6,310,000.00 and the Monthly
Commitment Reduction is $90,000.00 beginning April 1, 2004.

            2. Except as expressly amended and supplemented hereby, the
Agreement shall remain unchanged and in full force and effect, and the same is
hereby ratified and extended.

            3. The obligations described in the Agreement, as amended hereby,
including but not limited to the indebtedness evidenced by the Note executed in
conjunction with the Agreement, shall continue to be secured by the Collateral,
without interruption or impairment of any kind.

            4. To the extent the amendment fee referred to in Section C.2 above
is not paid prior to closing Borrower shall have until April 30, 2004 to remit
such fee to the Bank. Borrower's failure to make such a payment by April 30,
2004 shall constitute a default pursuant to Section 9.1(a) of the Agreement
entitling the Bank to pursue the remedies set forth in Section 9.2(b) of the
Agreement.

            5. Borrowers agree to execute such additional mortgages, deeds of
trust and/or amendments to such documents already in place as Bank deems
necessary to adequately secure the loan at any time and from time to time
hereafter.

            6. The Borrowers hereby agree to pay all reasonable attorney fees
and legal expenses incurred by Bank in preparation, execution and implementation
of this Amendment and any mortgages, guaranty agreements, subordination
agreements, deeds of trust, security agreements, pledge agreements or any
amendments thereto.

            7. This Amendment shall be construed in accordance with and governed
by the laws of the State of Oklahoma, and shall be binding on and inure to the
benefit of the Borrower and Bank, and their respective successors and assigns.
All obligations of the Borrowers under the Agreement and all rights of Bank and
any other holder of the Note, whether expressed herein or in any Note, shall be
in addition to and not in limitation of those provided by applicable law.
Borrowers irrevocably agree that, subject to Bank's sole election, all suits or
proceedings arising from or related to the Agreement, as amended, or the Note
may be litigated in courts (whether State or Federal) sitting in Oklahoma City,
Oklahoma, and the Borrowers hereby irrevocably waives any objection to such
jurisdiction and venue.
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            8. This Amendment may be executed in as many counterparts as are
deemed necessary or convenient, and it shall not be necessary for the signature
of more than any one party to appear on any single counterpart. Each counterpart
shall be deemed an original, but all shall be construed together as one and the
same instrument. The failure of any party to sign shall not affect or limit the
liability of any party executing any such counterpart.

            E. RELEASE. Borrowers hereby remise, release, and forever discharge
Bank, its successors and assigns, its officers, directors, employees, agents and
attorneys (collectively, "Released Parties") of and from all actions, causes of
action, suits, proceedings, debts, contracts, claims, damages, liability and
demands whatsoever, known or unknown, in law or equity, which Borrowers ever had
or now has, by reason of any matter, cause, or thing whatsoever arising from the
actions or inactions of the Released Parties in any matter relating to the
Agreement, Note, and other Loan Documents (collectively, "Released Matters");
and Borrowers covenant not to sue any of the Released Parties with respect to
the Released Matters. The release and covenant not to sue set forth in this
provision are intended by the parties to be as broad and comprehensive as
possible.

            So executed effective the 1st day of March, 2004.

                                       BORROWERS:
                                       GMX RESOURCES INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

                                       ENDEAVOR PIPELINE INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

                                       EXPEDITION NATURAL RESOURCES INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer
<PAGE>

                                       BANK:

                                       LOCAL OKLAHOMA BANK

                                       /s/ John K. Slay, Jr.
                                       -----------------------------------------
                                       By:         John K. Slay, Jr.
                                       Title:      Senior Vice President
<PAGE>

                 EXHIBIT TO SIXTH AMENDMENT TO CREDIT AGREEMENT
                       BY AND BETWEEN GMX RESOURCES, INC.
                          AND LOCAL OKLAHOMA BANK, N.A.

                   THIRD AMENDED AND RESTATED PROMISSORY NOTE
                            (REDUCING REVOLVING NOTE)

$15,000,000.00                                           Oklahoma City, Oklahoma
                                                                   March 1, 2004

            FOR VALUE RECEIVED, the undersigned, GMX Resources Inc., an Oklahoma
corporation, Endeavor Pipeline Inc., an Oklahoma corporation, and Expedition
Natural Resources Inc., an Oklahoma corporation (jointly and severally, the
"Borrowers"), hereby jointly and severally promise to pay to the order of LOCAL
OKLAHOMA BANK ("Bank"), on or before September 1, 2004 (the "Maturity Date"),
the principal sum of Fifteen Million and No/100 Dollars ($15,000,000.00), or as
much thereof as is disbursed and remains outstanding hereunder, together with
interest on the unpaid balance from time to time outstanding at the rates
hereinafter provided.

            Prior to the occurrence of any Event of Default (as defined in the
Agreement referred to below), the unpaid principal balance from time to time
outstanding hereunder shall bear interest at a fluctuating rate per annum equal
to the Base Rate (defined below) plus one percent (1%). Upon notice from Bank to
Borrowers of the occurrence of any Event of Default, the unpaid principal amount
from time to time outstanding under this Note shall bear interest at a
fluctuating rate per annum equal to the Default Rate as set forth below (but not
less than the Base Rate in effect on the date of the occurrence of the Event of
Default). The interest rate applicable to this Note shall change as of the
effective date of any change in the Base Rate. The interest rate will be
calculated on the basis of actual number of days elapsed, but computed as if
each calendar year consisted of a 360-day year. As used herein, "Base Rate"
means, at any time, that rate of interest equal to the interest rate then most
recently announced or published in the "Money Rates" section of THE WALL STREET
JOURNAL, as the "Prime Rate" which such rate may not be the lowest interest rate
charged by the Bank, and which Base Rate shall change upon any change in such
announced or published Base Rate, all without notice to the Borrowers.

            If any Event of Default occurs and is not cured within the
applicable cure period, if any, described in the Agreement, in lieu of the
interest rate provided in this Note, all sums owing by Borrowers to Bank shall
bear interest at the rate equal to five percent (5%) per annum in excess of the
Base Rate, accrued from the date after the applicable grace period to cure the
Event of Default, to the date on which such Event of Default is cured to the
reasonable satisfaction of the Bank.

            Beginning on the first (1st) day of April, 2004 and continuing on
the first (1st) day of each month thereafter, Borrowers shall, at a minimum,
make a payment of all accrued but unpaid interest on this Note. If the Loan
Balance exceeds the Commitment Amount as a result of a Monthly Commitment
Reduction with respect to the Loan on the first (1st) day of any month, the
Borrowers shall immediately make such principal payments as may be necessary to
reduce the Loan Balance to an amount at or below the Commitment Amount. The
entire outstanding
<PAGE>

principal balance of this Note and all unpaid interest accrued thereon shall be
due and payable on the Maturity Date.

            All payments, including prepayments, made by Borrowers, shall be
made to Bank at any one of its offices in the State of Oklahoma, on or before
2:00 p.m., local time, on the date due, in lawful money of the United States of
America and in immediately available funds. If any payment is due on a day other
than a business day, the due date thereof shall be extended to the next
succeeding business day.

            This Note is executed and delivered by Borrowers pursuant to, and is
entitled to the benefits of, that certain Restated Credit Agreement dated
effective October 31, 2000 between Borrowers and Bank as amended from time to
time and most recently by that certain Sixth Amendment to Restated Credit
Agreement of even date herewith (the "Agreement"). Reference is hereby made to
the Agreement for the terms and provisions regarding the availability of credit,
the collateral security for payment of this Note, the prepayment rights and
obligations of Borrowers, the right of the holder of this Note to accelerate the
maturity hereof on the occurrence of certain Events of Default specified
therein, and for all other pertinent purposes. This Note is the "Note" referred
to in the Agreement. All capitalized terms not otherwise defined herein shall be
defined as set forth in the Agreement.

            Upon the occurrence and during the continuation of any Event of
Default, the holder of this Note may apply payments received on any amount due
hereunder or under the terms of any instrument now or hereafter evidencing or
securing any said indebtedness as said holder may determine.

            It is the intent of Bank and Borrowers to conform strictly to all
applicable usury laws, and any interest on the principal balance hereof in
excess of that allowed by said usury laws shall be subject to reduction to the
maximum amount of interest allowed under said laws. If any interest in excess of
the maximum amount of interest allowable by said usury laws is inadvertently
paid to the holder hereof, at any time, any such excess interest shall be
refunded by the holder to the party or parties entitled to the same after
receiving notice of payment of such excess interest.

            The records of the holder of this Note shall be prima facie evidence
of the amount owing on this Note.

            If, and as often as, this Note is placed in the hands of an attorney
for collection or to defend or enforce any of the holder's rights hereunder,
Borrowers will pay to the holder hereof its reasonable attorneys' fees, together
with all court costs and other expenses paid by such holder.

            Borrowers, endorsers, sureties, guarantors and all other parties who
may become liable for all or any part of this Note severally waive demand,
presentment, notice of dishonor, protest, notice of protest, and notice of
non-payment, and consent to: (a) any and all extensions of time for any term or
terms regarding any payment due under this Note, including partial payments or
renewals before or after maturity; (b) changes in interest rates; (c) any
substitutions or release of collateral; and (d) the addition, substitution or
release of any party liable for payment of this Note.
<PAGE>

            No waiver of any payment or other right under this Note or any
related agreement shall operate as a waiver of any other payment or right. All
of the holder's rights hereunder are cumulative and not alternative. This Note
shall inure to the benefit of the successors and assigns of Bank or other holder
and shall be binding upon the successors and assigns of Borrowers.

            This Note has been delivered to and accepted by Bank in the State of
Oklahoma, is to be performed in the State of Oklahoma and shall be deemed a
contract made under the laws of the State of Oklahoma.

            The purposes of this Note is to Amend and Restate the terms of that
certain Second Amended and Restated Promissory Note (Reducing Revolving Note)
dated effective August 31, 2003. This Note does NOT pay off any outstanding
indebtedness. Rather, the purpose hereof is to amend the rate of interest
charged to outstanding balances hereunder.

            IN WITNESS WHEREOF, the undersigned has executed this instrument
effective for all purposes as of March 1, 2004.

                                       BORROWERS:

                                       GMX RESOURCES INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

                                       ENDEAVOR PIPELINE INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

                                       EXPEDITION NATURAL RESOURCES INC.,
                                       an Oklahoma corporation

                                       /s/ Ken L. Kenworthy, Sr.
                                       -----------------------------------------
                                       By:         Ken L. Kenworthy, Sr.
                                       Title:      Chief Financial Officer

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