Document:

January
19, 2010

    

    Mr. H.
Walt Dunagin

    Executive
Vice President

    Reef Oil
& Gas Partners, L.P.

    Reef
Exploration, L.P.

    1901
North Central Expressway, Suite 300

    Richardson,
Texas 75080

    

    
      	
               
      

            	
              Re:

            	
              Post
      Closing Properties/Title Defect
Notice

            

    

    

    Dear
Walt:

    

    Reference
is made to that certain Purchase and Sale Agreement dated December 18, 2009 and
effective as of December 1, 2009 by and between RCWI, L.P. (“Buyer”) and Azalea
Properties, Ltd. (“Seller”) providing
for the purchase by Buyer of certain assets of Seller (the “PSA”). All
capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the PSA.

    

    This
Letter Agreement (“Letter”) shall set
forth the understanding of Buyer and Seller with regard to the purchase and sale
of those properties set forth on Exhibit A hereto
(individually a “Post Closing Property” and collectively the “Post Closing
Properties”)

    

    By their
execution hereof, Buyer and Seller agree as follows:

    

    1.           The
definition of “Interests” in the PSA being purchased by Buyer at Closing shall
be amended to exclude the Post Closing Properties and the Purchase Price to be
paid by Buyer to Seller at Closing shall be adjusted downward by the amount of
$1,414,826.00, representing the allocated value attributable to the Post Closing
Properties.

    

    2.           Commencing
on the Closing Date and ending one hundred eighty (180) days thereafter (the
“Cure Period”),
Seller shall not, directly or indirectly solicit, enter into or conduct
discussions relating to, initiate or knowingly encourage any offer or proposal
for, or any indication of interest in the Post Closing Properties, to any third
party.

        

    
      3.           During
the Cure Period Seller shall use commercially reasonable efforts to cure the
title defects existing on the Post Closing Properties as specifically set forth
on Exhibit B
attached hereto (the “Title Defects”).
Within five (5) days following receipt by Buyer of evidence reasonably
acceptable to Buyer that a Title Defect has been cured, 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    together
with such other evidence as Buyer may request in its reasonable discretion,
Buyer shall purchase and Seller shall sell the Post Closing Property for which
all Title Defects have been cured for a purchase price which equals the
allocated value of said Post Closing Property set forth on Exhibit A. In the
event that some, but not all of the Title Defects have been cured by the
expiration of the Cure Period, Buyer may (a) purchase the remaining Post Closing
Properties (which have not previously been purchased during the Cure Period) for
which the Title Defects have been cured at their allocated value set forth on
Exhibit A, or
(b) elect to purchase all of the remaining Post Closing Properties, pay the
allocated value of the Post Closing Properties for which Title Defects have been
cured and enter into negotiations with Seller to adjust the purchase price of
the Post Closing Properties for which Title Defects have not been cured. If the
options set forth in (a) or (b) are not exercised by the Parties, or Buyer and
Seller cannot in good faith agree on a purchase price adjustment pursuant to
Buyer’s option in (b) immediately above, either Buyer or Seller may elect to
terminate this Letter and the Parties shall have no further obligations
hereunder.

     

    4.           In
the event Buyer purchases the Post Closing Properties, Buyer and Seller shall
execute Assignments in same the form executed by Buyer and Seller at
Closing.

     

    5.           In
the event Buyer purchases the Post Closing Properties pursuant to this Letter,
the Effective Date of the purchase shall be as set forth in the PSA and all
other terms set forth in the PSA shall apply to the purchase and sale of the
Post Closing Properties.

    

    SIGNATURE
PAGE FOLLOWS

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                Very
      truly yours,

              
	 
      
	
                Azalea
      Properties, Ltd.

              
	 
      	 
      
	
                By: 

              	
                Maple
      Ridge Property Company

              
	 
      	
                Its
      sole general partner

              
	 
      	 
      
	 
      	
                By: 

              	
                /s/
      Frances Marianne Talbot

              
	 
      	 
      	
                Frances
      Marianne Talbot

              
	 
      	 
      	
                President

              

      

    

     

    
      
        	
                Accepted
      and Agreed to

                this
      19 day of January 2010:

              
	 
      
	
                RCWI,
      L.P.

              
	 
      	 
      
	
                By: 

              	
                RCWI,
      GP, LLC

                Its
      general partner

              
	 
      	 
      
	 
      	
                By: 

              	
                /s/ Michael J. Mauceli

              
	 
      	 
      	
                Michael
      J. Mauceli, Manager

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
A

    

    POST CLOSING
PROPERTIES

    

    
      
        
          
            	
                    Skinner
      Unit 30-10 #1

                  	 	$	344,467.00	 
	
                    Ezell
      Unit 29-05 #1

                  	 	$	57,332.00	 
	
                    Trice
      Unit 35-04

                  	 	$	8,835.00	 
	
                    Trice
      Unit 35-02

                  	 	$	7,669.00	 
	
                    Turkey
      Creek Unit 1-1

                  	 	$	4,655.00	 
	
                    Hollingsworth
      #1 TJ Unit

                  	 	$	166,805.00	 
	
                    Grand
      Canyon B1-32-A2-5

                  	 	$	59,397.00	 
	
                    Bryant
      Link Co. #1

                  	 	$	103,590.00	 
	
                    Summerlin,
      CE

                  	 	$	71,660.00	 
	
                    Collins
      East Upper CV Unit

                  	 	$	155,932.00	 
	
                    Coot
      Moore 1

                  	 	$	131,074.00	 
	
                    Stroud-Polk
      Unit #2-1

                  	 	$	64,757.00	 
	
                    Board
      of Supervisors 16-14 #1-1

                  	 	$	11,994.00	 
	
                    Garrett
      #1-1

                  	 	$	4,565.00	 
	
                    Stroud-Polk
      Unit #1-1

                  	 	$	1,852.00	 
	
                    Turner
      1-34

                  	 	$	125,478.00	 
	
                    Haskell
      #1-4

                  	 	$	587.00	 

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    Title
Defects

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                

              	
                H.
      WALT DUNAGIN

                Executive Vice President

                Land
      Manager

              

      

    

    

    Thursday,
January 14, 2010

    

    Frances
Marianne Talbot

    Azalea
Properties, Ltd.

    c/o David
Nini

    Lantana
Oil & Gas Partners

    9000
Hempstead Road

    Suite
200

    Houston,
Texas 77008

    

    Dear
Madam and Sirs:

    

    Under the
terms of the Purchase and Sale Agreement, dated December 18, 2009 (“PSA”),
executed by RCWI, L.P. (“RCWI”) and Azalea Properties, Ltd. (“Azalea”), RCWI and
Azalea agreed that RCWI would notify Azalea of certain matters affecting the
value of the Interests as that term is defined in the PSA. This letter shall
serve as your formal notification under Article V of the PSA. (All capitalized
terms, not defined in this notification, shall have the meaning ascribed to them
in the PSA.)

    

    1.           Article
5.05: The following are the Title Defects which render the title to an Interest
as less than Marketable Title.

    

    a.           There
is a break in Azalea’s chain of title to the Wiley Glennburn Unit caused by the
absence of a deed between Great Plains Royalty Corp. to Earl Schwartz Company,
two of the predecessors in title to Azalea. The Title Defect Amount attributable
to this Title Defect is $98,130.

    

    b.           There
is no conveyance to Azalea from Woodson Oil & Gas, L.P. of the following
properties:

     

    
      
        
          
            
              	
                      Property:

                    	 	
                      Title Defect Amount:

                    	 
	
                      Skinner
      Unit 30-10 #1, Choctaw County, Alabama

                    	 	$	344,467	 
	
                      Ezell
      Unit 29-05#l, Choctaw County, Alabama

                    	 	$	57,332	 
	
                      Trice
      Unit 35-04, Choctaw County, Alabama

                    	 	$	8,835	 
	
                      Trice
      Unit 35-02, Choctaw County, Alabama

                    	 	$	7,669	 
	
                      Turkey
      Creek Unit 1-1, Choctaw County, Alabama

                    	 	$	4,655	 

            

          

        

      

    

    

    REEF
OIL & GAS PARTNERS, L.P.

    REEF
EXPLORATION, L.P.

     

    1901
N Central Expy, Ste 300 • Richardson, TX 75080

    (972)
437-6792 • Fax: (972) 994-0369

    Toll Free: (877)
915-7333 •
www.reefogc.com

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    c.           There
is no conveyance to Azalea from
Modano Oil & Gas, L.P. of the following properties:

    

    
      
        
          
            
              	
                      Property:

                    	 	
                      Title
      Defect Amount:

                    	 
	
                      Hollingsworth
      #1-TJ Unit -001T, Desoto Parish, Louisiana

                    	 	$	166,805	 
	
                      Grand
      Canyon B1-32-A2-5 Otsego County, Michigan

                    	 	$	59,397	 
	
                      Bryant
      Link Co. #1, Multi, Andrews County, Texas

                    	 	$	103,590	 
	
                      Summerlin,
      CE, Multi, Andrews County, Texas

                    	 	$	71,660	 

            

          

        

      

    

    

    d.           There
is no assignment to Azalea from Nowitzki Oil and Gas, L.P. of the following
properties:

    

    
      
        
          
            
              	
                      Property:

                    	 	
                      Title
      Defect Amount:

                    	 
	
                      Collins
      East Upper CV Unit, Covington County Mississippi

                    	 	$	155,932	 
	
                      Coot
      Moore 1, Covington County, Mississippi

                    	 	$	131,074	 
	
                      Stroud-Polk
      Unit #2-1, Covington County, Mississippi

                    	 	$	64,757	 
	
                      Board
      of Supervisors 16-14 #1-1, Covington County, Mississippi

                    	 	$	11,994	 
	
                      Garrett
      #1-1, Covington County, Mississippi

                    	 	$	4,565	 
	
                      Stroud-Polk
      Unit #1-1, Covington County, Mississippi

                    	 	$	1,852	 
	
                      Turner
      1-34, Woodward County, Oklahoma

                    	 	$	125,478	 
	
                      Haskell
      #1-4 1-4, Woodward County, Oklahoma

                    	 	$	587	 

            

          

        

      

    

    

    
      	
            	
              e.

            	
              The
      following mortgages burden the
Interests:

            

    

    See
Exhibit A

     

    2.           Article
5.06(a): Azalea and Reef have agreed to resolve any matters pertain to Article
5.06(a) under the terms of a separate letter agreement to be executed by both
parties.

     

    3.           Article
5.06(b): There are preferential rights to purchase which burden the following
properties:

     

    
      
        
          
            
              	
                      Property:

                    	 
      	 
      	 
      	
                      Operator:

                    
	
                      a.            Bonanza,

                    	 
      	
                      Terry
      County, Texas

                    	 
      	
                      Dinero

                    
	
                      b.            Unidentified

                    	 
      	
                      Grady
      County, Oklahoma

                    	 
      	
                      Marshall
      Oil
Corp.

                    

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    You have
notified us of the exercise of the preferential rights on the Bryan’s Mill Unit
PF Record 1-1 property, the Della Colvin 1-18, the Della Colvin 31-8 and the
Steffan Harvey 2. This letter confirms that we have agreed to remove those
properties from the sale.

    

    The
Mortgages listed on Exhibit A are treated in this letter as Title Defects, but
we have assigned no Title Defect Amount to any of said encumbrances because we
have not been provided with the balances due, and Azalea has agreed to convey
the Interests free of all such burdens and encumbrances at Closing.

    

    Thank you
for your prompt attention to these matters, and let us know what we can do to
perfect title in Azalea.

    

    Yours
truly,

    

    
      
        	
                /s/ H. Walt Dunagin

              
	
                H.
      Walt Dunagin

              
	
                Executive
      Vice President

              
	
                RCWI,
      L.P.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    This
Exhibit A is attached to that certain letter dated January 14, 2010 from RCWI,
L.P. to Azalea Properties, Ltd.

    

    Azalea
Properties Ltd, L.P. mortgages in favor of Texas Capital Bank, N.A.

    

    
      
        
          	
                  Date

                	 
      	
                  Recording

                  Reference

                	 
      	
                  County

                	 
      	
                  State

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  04/01/2002

                	 
      	
                  #02-0823053

                	 
      	
                  Los
      Angeles

                	 
      	
                  California

                
	
                  10/01/2008

                	 
      	
                  #20088253414

                	 
      	
                  Los
      Angeles

                	 
      	
                  California

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  10/01/2008

                	 
      	
                  #410629

                	 
      	
                  Baca

                	 
      	
                  Colorado

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  08/22/2003

                	 
      	
                  668/951

                	 
      	
                  Acadia

                	 
      	
                  Louisiana

                
	
                  03/16/2007

                	 
      	
                  762/927

                	 
      	
                  Acadia

                	 
      	
                  Louisiana

                
	
                  12/28/2007

                	 
      	
                  783/161

                	 
      	
                  Acadia

                	 
      	
                  Louisiana

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  08/22/2003

                	 
      	
                  692/11518

                	 
      	
                  East
      Baton Rouge

                	 
      	
                  Louisiana

                
	
                  03/16/2007

                	 
      	
                  348/11943

                	 
      	
                  East
      Baton Rouge

                	 
      	
                  Louisiana

                
	
                  12/28/2007

                	 
      	
                  66/12028

                	 
      	
                  East
      Baton Rouge

                	 
      	
                  Louisiana

                
	
                  10/01/2008

                	 
      	
                  696/12103

                	 
      	
                  East
      Baton Rouge

                	 
      	
                  Louisiana

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  4/16/2004

                	 
      	
                  1658/305

                	 
      	
                  Terrebonne

                	 
      	
                  Louisiana

                
	
                  3/16/2007

                	 
      	
                  1966/817

                	 
      	
                  Terrebonne

                	 
      	
                  Louisiana

                
	
                  12/28/2007

                	 
      	
                  2056/565

                	 
      	
                  Terrebonne

                	 
      	
                  Louisiana

                
	
                  10/1/2008

                	 
      	
                  2132/406

                	 
      	
                  Terrebonne

                	 
      	
                  Louisiana

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  04/16/2004

                	 
      	
                  #20405191

                	 
      	
                  Vermillion

                	 
      	
                  Louisiana

                
	
                  03/16/2007

                	 
      	
                  #20703906

                	 
      	
                  Vermillion

                	 
      	
                  Louisiana

                
	
                  12/28/2007

                	 
      	
                  #20800687

                	 
      	
                  Vermillion

                	 
      	
                  Louisiana

                
	
                  10/01/2008

                	 
      	
                  #20811995

                	 
      	
                  Vermillion

                	 
      	
                  Louisiana

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  01/18/2008

                	 
      	
                  608/450

                	 
      	
                  Covington

                	 
      	
                  Mississippi

                
	
                  10/01/2008

                	 
      	
                  618/281

                	 
      	
                  Covington

                	 
      	
                  Mississippi

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  12/28/2007

                	 
      	
                  #374623

                	 
      	
                  Bottineau

                	 
      	
                  North
      Dakota

                
	
                  10/01/2008

                	 
      	
                  #378182

                	 
      	
                  Bottineau

                	 
      	
                  North
      Dakota

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                04/16/2004

              	 
      	
                1298/286

              	 
      	
                Lea

              	 
      	
                New
      Mexico

              
	
                03/16/2007

              	 
      	
                1505/289

              	 
      	
                Lea

              	 
      	
                New
      Mexico

              
	
                12/28/2007

              	 
      	
                1558/973

              	 
      	
                Lea

              	 
      	
                New
      Mexico

              
	
                01/18/2008

              	 
      	
                1562/623

              	 
      	
                Lea

              	 
      	
                New
      Mexico

              
	
                10/01/2008

              	 
      	
                1606/364

              	 
      	
                Lea

              	 
      	
                New
      Mexico

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                08/15/2007

              	 
      	
                RB3365/685

              	 
      	
                Canadian

              	 
      	
                Oklahoma

              
	
                12/28/2007

              	 
      	
                RB3406/983

              	 
      	
                Canadian

              	 
      	
                Oklahoma

              
	
                10/01/2008

              	 
      	
                RB3501/434

              	 
      	
                Canadian

              	 
      	
                Oklahoma

              
	
                10/01/2008

              	 
      	
                997/680

              	 
      	
                Blaine

              	 
      	
                Oklahoma

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                01/01/2008

              	 
      	
                1937/271

              	 
      	
                Roger
      Mills

              	 
      	
                Oklahoma

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                01/18/2008

              	 
      	
                481/738

              	 
      	
                Crane

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                499/807

              	 
      	
                Crane

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                04/16/2004

              	 
      	
                366/699

              	 
      	
                Duval

              	 
      	
                Texas

              
	
                01/18/2008

              	 
      	
                468/38

              	 
      	
                Duval

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                486/164

              	 
      	
                Duval

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                12/28/2008

              	 
      	
                78/704

              	 
      	
                Crosby

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                83/97

              	 
      	
                Crosby

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                01/18/2008

              	 
      	
                #2008-0420

              	 
      	
                Gaines

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                #2008-4647

              	 
      	
                Gaines

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                04/16/2004

              	 
      	
                575/821

              	 
      	
                Hemphill

              	 
      	
                Texas

              
	
                01/18/2008

              	 
      	
                634/452

              	 
      	
                Hemphill

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                650/594

              	 
      	
                Hemphill

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                08/22/2008

              	 
      	 
      	 
      	
                Loving

              	 
      	
                Texas

              
	
                01/01/08

              	 
      	
                80/435

              	 
      	
                Loving

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                04/16/2004

              	 
      	
                150/402

              	 
      	
                Martin

              	 
      	
                Texas

              
	
                03/16/2007

              	 
      	
                197/356

              	 
      	
                Martin

              	 
      	
                Texas

              
	
                12/28/2007

              	 
      	
                217/271

              	 
      	
                Martin

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                238/19

              	 
      	
                Martin

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                04/16/2004

              	 
      	
                157/214

              	 
      	
                McMullen

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                180/164

              	 
      	
                McMullen

              	 
      	
                Texas

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                01/18/2008

              	 
      	
                1359/1

              	 
      	
                Sutton

              	 
      	
                Texas

              
	
                10/01/08

              	 
      	
                365/467

              	 
      	
                Sutton

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                8/15/2007

              	 
      	
                572/60

              	 
      	
                Wheeler

              	 
      	
                Texas

              
	
                12/28/2007

              	 
      	
                577/657

              	 
      	
                Wheeler

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                591/640

              	 
      	
                Wheeler

              	 
      	
                Texas

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                08/22/2003

              	 
      	
                744/35

              	 
      	
                Ward

              	 
      	
                Texas

              
	
                10/01/2008

              	 
      	
                851/6

              	 
      	
                Ward

              	 
      	
                Texas

              
	
                01/18/2008

              	 
      	
                833/420

              	 
      	
                Ward

              	 
      	
                Texas

              

      

    

     

    
      
        
          
            
              	
                      Nowitzki Oil & Gas,
      L.P. mortgage in
      favor of the Bank of Scotland

                    
	 
      
	
                      09/01/2006

                    	 	
                      556/430

                    	 	
                      Wheeler

                    	 	
                      Texas

                    
	 
      
	
                      Modano
      Oil &I Gas,
      L.P. mortgage in favor the Bank of Scotland

                    
	 
      
	
                      08/06/2003

                    	 	
                      5403/799

                    	 	
                      Denton

                    	 	
                      Texas

                    
	 
      
	
                      Talbot
      Investment Company mortgage in favor of the First Enterprise
      Bank

                    
	 
      
	
                      07/11/1996

                    	 	
                      96-1162623

                    	 	
                      Los
      Angeles

                    	 	
                      CaliforniaJanuary
19, 2010

     

    Mr. H.
Walt Dunagin

    Executive
Vice President

    Reef Oil
& Gas Partners, L.P.

    Reef
Exploration, L.P.

    1901
North Central Expressway, Suite 300

    Richardson,
Texas 75080

     

    Re:     Third
Party Consents

     

    Dear
Walt:

     

    Reference
is made to that certain Purchase and Sale Agreement dated December 18, 2009 and
effective as of December 1, 2009 by and between RCWI, L.P. (“Buyer”) and Azalea
Properties, Ltd. (“Seller”) providing
for the purchase by Buyer of certain assets of Seller (the “PSA”). All
capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the Purchase Agreement.

     

    Pursuant
to Section 3.01(f) of the PSA, Seller is required to list on the Schedules to
the PSA all Material Contracts affecting the Interests. However, as of the
Closing Date, Seller was only able to obtain information sufficient to list a
subset of the Material Contracts, as set forth on Schedule 3.01(f). By
their execution hereof, Seller and Buyer hereby acknowledge and agree that
Seller’s failure to list all of the Material Contracts on Schedule 3.01(f)
shall not constitute a breach of the PSA by Seller, and Seller shall have no
further obligations with respect thereto.

     

    Additionally,
pursuant to the PSA, Seller is required to obtain third party consents necessary
to assign certain of the Interests to Buyer at Closing as set forth on Schedule 3.01(f) (the
“Required
Consents”). By their execution hereof, Buyer and Seller hereby
acknowledge and agree that Seller was unable to obtain and deliver the Required
Consents at Closing.

     

    Buyer and
Seller further agree that if, during the six (6) month period following Closing
(the “Post Closing
Period”), any Required Consent is denied, resulting in Buyer not
obtaining Marketable Title to the affected Interest, Buyer shall notify Seller
within five (5) business days following receipt of such third party’s refusal to
grant consent to assign the Interest (a “Nonconsent Lease”).
In such event, Seller shall refund to Buyer (“Rescission Right”) an
amount equal to the proportionate share of the Adjusted Final Value (set forth
on Exhibit B to
the PSA) affected by the Nonconsent Lease, and Buyer shall execute and deliver
to Seller an executed Assignment, Conveyance and Bill of Sale, in the same form
Seller delivered to Buyer at Closing, conveying the Interests back to

   

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

       

    Seller, free and clear of all liens, mortgages, security
interests, encumbrances, burdens and claims of any kind. Notwithstanding
anything contained herein to the contrary, Buyer shall not have a Rescission
Right if the Adjusted Final Value of the affected Interests is less than
$100,000.

       

    Buyer and
Seller agree to use commercially reasonable efforts to obtain the Required
Consents and to act in good faith in the pursuit thereof. Buyer and Seller
further agree that if any Required Consent is not obtained, but not
affirmatively denied, it shall not be deemed to be denied and Buyer shall not
have a Rescission Right respect to that Interest.

     

    If,
within five (5) days following the expiration of the Post Closing Period, Buyer
has not notified Seller of any Nonconsent Lease, Buyer shall be deemed to have
waived its Rescission Rights.

     

    SIGNATURE
PAGE FOLLOWS

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Please
indicate your acceptance of the terms hereof by executing this Letter
below.

     

    
      
        
          
            
              
                
                  	
                          Very
      truly yours,

                        
	 
	
                          Azalea
      Properties, Ltd.

                        
	 	 
	
                          By:  

                        	
                          Maple
      Ridge Property Company

                        
	 
      	
                          Its
      sole general partner

                        
	 
      	 
      	 
      
	 
      	
                          By:  

                        	
                          /s/
      Frances
      Marianne Talbot

                        
	 
      	 
      	
                          Frances
      Marianne Talbot

                        
	 
      	 
      	
                          President

                        

                

              

            

          

        

      

    

    

    
      
        
          
            
              	
                      Accepted
      and Agreed to

                      this
      19 day
      of January 2010:

                    
	 
      	 
      	 
      
	
                      RCWI,
      L.P.

                    
	 
      	 
      
	
                      By:  

                    	
                      RCWI,
      GP, LLC

                    
	 
      	
                      Its
      general partner

                    
	 
      	 
      	 
      
	 
      	
                      By:  

                    	
                      /s/
      Michael J. Mauceli

                    
	 
      	 
      	
                      Michael
      J. Mauceli,
Manager

                    

            

          

        

      

    

    
      
         

      

      
        3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]