<SUBMISSION>
<ACCESSION-NUMBER>0000950123-11-020724
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20110223
<ITEMS>1.01
<ITEMS>2.01
<ITEMS>2.03
<ITEMS>9.01
<FILING-DATE>20110301
<DATE-OF-FILING-DATE-CHANGE>20110301
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>Approach Resources Inc
<CIK>0001405073
<ASSIGNED-SIC>1311
<IRS-NUMBER>510424817
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-33801
<FILM-NUMBER>11652404
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE RIDGMAR CENTRE
<STREET2>6500 WEST FREEWAY, SUITE 800
<CITY>FORT WORTH
<STATE>TX
<ZIP>76116
<PHONE>8179899000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE RIDGMAR CENTRE
<STREET2>6500 WEST FREEWAY, SUITE 800
<CITY>FORT WORTH
<STATE>TX
<ZIP>76116
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d80089e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of The Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported)<BR>
February&nbsp;23, 2011</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>APPROACH RESOURCES INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">001-33801
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">51-0424817</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">One Ridgmar Centre</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">6500 West Freeway, Suite&nbsp;800</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Fort Worth, Texas
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">76116</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(817)&nbsp;989-9000<BR>
(Registrant&#146;s telephone number, including area code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Not Applicable<BR>
(Former name or former address, if changed since last report.)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (<U>see</U> General
Instruction A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>









<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">












<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;1.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Entry into a Material Definitive Agreement.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;23, 2011, Approach Oil &#038; Gas Inc. (&#147;AOG&#148;), a subsidiary of Approach Resources Inc.
(the &#147;Company&#148;), entered into a purchase and sale agreement (the &#147;Purchase Agreement&#148;) with J. Cleo
Thompson &#038; James Cleo Thompson, Jr., L.P. and Wes-Tex Drilling Company, L.P. to acquire an
additional 38.33% working interest in oil and gas properties and equipment and support facilities
in the Company&#146;s Cinco Terry operating area in the Permian Basin, Crockett County, Texas
(collectively, the &#147;Assets&#148;). The purchase price under the Purchase Agreement was $76.0&nbsp;million,
subject to customary adjustments, with an effective date of December&nbsp;1, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Purchase Agreement is filed herewith as Exhibit&nbsp;2.1 and is incorporated herein by
reference. The foregoing description of the Purchase Agreement and the transactions contemplated
thereby does not purport to be complete and is qualified in its entirety by reference to the
Purchase Agreement.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;2.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Completion of Acquisition or Disposition of Assets.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;28, 2011, AOG completed the acquisition of the Assets from J. Cleo Thompson &#038;
James Cleo Thompson, Jr., L.P. and Wes-Tex Drilling Company, L.P. pursuant to the Purchase
Agreement for $76.0&nbsp;million, subject to customary adjustments. Funding was provided through
borrowings under the Company&#146;s revolving credit facility and cash on hand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Purchase Agreement is filed herewith as Exhibit&nbsp;2.1 and is incorporated herein by
reference. The foregoing description of the Purchase Agreement and the transactions contemplated
thereby does not purport to be complete and is qualified in its entirety by reference to the
Purchase Agreement.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;2.03</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;28, 2011, the Company borrowed $67&nbsp;million in principal amount under its existing
revolving credit facility (the &#147;Loan&#148;) to fund the acquisition of the Assets by AOG described in
Items 1.01 and 2.01 and incorporated herein by reference. The Company&#146;s revolving credit facility
was established pursuant to its Revolving Credit Agreement dated January&nbsp;18, 2008, among the
Company, as borrower, The Frost National Bank, as administrative agent and lender, and the
financial institutions named therein (as amended, the &#147;Credit Agreement&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the terms of the Credit Agreement, the Loan will accrue interest at 4.75%. After
accounting for the draw down of the Loan from the revolving credit facility, the Company has an
available borrowing capacity of approximately $82.7&nbsp;million remaining under its revolving credit
facility.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits.</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a) <I>Financial statements of business acquired.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since it is impracticable to provide the required financial statements for the Assets acquired
from J. Cleo Thompson &#038; James Cleo Thompson, Jr., L.P. and Wes-Tex Drilling Company, L.P. described
in Item&nbsp;2.01 at the time of this filing and no financial statements (audited or unaudited) are
available at this time, the Company hereby confirms that it intends to file the required financial
statements on or before May&nbsp;11, 2011, by amendment to this Current Report on Form 8-K.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d) <I>Exhibits.</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase and Sale Agreement dated as of February&nbsp;23, 2011,
between J. Cleo Thompson &#038; James Cleo Thompson, Jr., L.P. and
Wes-Tex Drilling Company, L.P., as Sellers, and Approach Oil &#038;
Gas Inc., as Buyer.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>The exhibits and schedules to this agreement have been omitted from this filing pursuant to
Item&nbsp;601(b)(2) of Regulation&nbsp;S-K. The Company will furnish copies of such exhibits and
schedules to the Securities and Exchange Commission upon request.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>APPROACH RESOURCES INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ J. Curtis Henderson
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">J. Curtis Henderson&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice President and General Counsel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: March&nbsp;1, 2011
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase and Sale Agreement dated as of February&nbsp;23, 2011,
between J. Cleo Thompson &#038; James Cleo Thompson, Jr., L.P. and
Wes-Tex Drilling Company, L.P., as Sellers, and Approach Oil &#038;
Gas Inc., as Buyer.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>d80089exv2w1.htm
<DESCRIPTION>EX-2.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv2w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;2.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PURCHASE AND SALE AGREEMENT
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Between
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>J. CLEO THOMPSON &#038; JAMES CLEO THOMPSON, JR., L.P.</B><BR>
and<BR>
<B>WES-TEX DRILLING COMPANY, L.P.</B><BR>
as Seller
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>APPROACH OIL &#038; GAS INC.</B><BR>
as Buyer
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Dated
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">February&nbsp;23, 2011
</DIV>









<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>TABLE OF CONTENTS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;I. Definitions and References</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.01 Certain Defined Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.02 References, Titles and Construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;II. Property to be Sold and Purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.01 Property to be Sold and Purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.02 Excluded Properties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.03 Excluded Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.04 Assumed Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;III. Purchase Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.01 Purchase Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.02 Purchase Price Allocation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;IV. Representations and Warranties of Seller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.01 Organization and Existence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.02 Power and Authority</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.03 Valid and Binding Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.04 Non-Contravention</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.05 Approvals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.06 Pending Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.07 Area of Mutual Interest and Other Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.08 No Alienation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.09 No Oral Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.10 Preferential Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.11 Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.12 Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.13 Disclaimer of Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;V. Representations and Warranties of Buyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.01 Organization and Existence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.02 Power and Authority</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.03 Valid and Binding Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.04 Non-Contravention</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.05 Approvals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.06 Pending Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;VI. Certain Covenants of Seller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.01 Access to Files</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.02 Restrictions on Certain Actions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.03 No Negotiation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.04 Notification of Certain Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.05 Access for Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;VII. RESERVED</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;VIII. Conditions Precedent to the Obligations of the Parties to Close</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.01 Conditions Precedent to the Obligations of Buyer to Close</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.02 Conditions Precedent to the Obligations of Seller to Close</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;IX. Closing of Transaction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.01 The Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.02 Seller&#146;s Closing Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.03 Buyer&#146;s Closing Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;X. Certain Accounting Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.01 Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.02 Closing and Post-Closing Accounting Settlements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.03 No Sales Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XI. Post Closing Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.01 Indemnification Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.02 Indemnification Procedures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.03 Limitations on Indemnity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.04 Tax Treatment of Indemnity Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.05 Transfer of Files</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XII. Casualty Loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;12.01 Casualty Loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XIII. Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;13.01 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XIV. Commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;14.01 Commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XV. Miscellaneous Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.01 Survival of Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.02 Further Assurances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.03 Binding Effect; Successors and Assigns</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.04 Like-Kind Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.05 Imbalances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.06 Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.07 Entire Agreement &#151; Time of the Essence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.08 Public Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.09 Injunctive Relief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.10 Amendments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.11 Governing Law and Venue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.12 Multiple Counterparts; Fax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.13 Confidentiality</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.14 No Waiver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>TABLE OF EXHIBITS</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exhibit&nbsp;A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of Property to be Sold</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exhibit&nbsp;B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Seller&#146;s Employees</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exhibit&nbsp;4.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liens</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exhibit&nbsp;9.02 (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Conveyance of the Subject Properties</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exhibit&nbsp;9.02 (g)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FIRPTA</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Exhibit&nbsp;9.02 (h)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Conveyance of the Pipeline Properties</TD>
</TR>
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</DIV>



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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>PURCHASE AND SALE AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS PURCHASE AND SALE AGREEMENT </B>dated February&nbsp;23, 2011, is made by and between <B>J. CLEO
THOMPSON &#038; JAMES CLEO THOMPSON, JR., L.P.</B>, a Texas limited partnership (&#147;<B>Thompson LP</B>&#148;) and <B>WES-TEX
DRILLING COMPANY, L.P.</B>, a Texas limited partnership (&#147;<B>Wes-Tex</B>&#148;; Thompson LP and Wes-Tex are
sometimes each individually referred to herein as a &#147;<B>Seller Party</B>&#148;, and collectively as &#147;<B>Seller</B>&#148;),
and <B>APPROACH OIL &#038; GAS INC.</B>, a Delaware corporation (&#147;<B>Buyer</B>&#148;).
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>W I T N E S E T H:</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>Seller desires to sell, bargain, assign, transfer and convey to Buyer, and Buyer
desires to purchase and accept, certain oil and gas properties and related assets listed on <B>Exhibit
A</B>; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>Seller and Buyer deem it in their mutual best interests to execute and deliver this
Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE, </B>in consideration of the mutual covenants and agreements contained herein,
Seller and Buyer do hereby agree as follows:
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>Article&nbsp;I. </B></U><BR>
<U><B>Definitions and References</B></U>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;1.01 </B><U><B>Certain Defined Terms</B></U>. When used in this Agreement, the following terms shall have the
respective meanings assigned to them in this <B>Section&nbsp;1.01 </B>or in the section, subsections or other
subdivisions referred to below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Adjusted Purchase Price</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;3.01</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Aggregate Deductible</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.03</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Agreement</B>&#148; shall mean this Agreement, as hereafter changed, amended or modified in accordance with
the terms hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Applicable Environmental Laws</B>&#148; shall mean any and all laws concerning protection of the
environment, natural resources, or human health and safety or orders pertaining to health or the
environment, including, without limitation, common laws, the Clean Air Act, the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act
of 1976, the Toxic Substances Control Act, the Clean Water Act, the Safe Drinking Water Act, the
Hazardous Materials Transportation Act, the Oil Pollution Act of 1990, Occupational Safety and
Health Act of 1970, all as amended, and any state Laws implementing or analogous to the foregoing
federal Laws, and all other Laws relating to or regulating emissions, discharges, releases, or
cleanup of any hazardous substances or wastes, each as amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Buyer&#146;s Auditor</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;6.05(b)</B>.
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Buyer&#146;s Losses</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.01(a).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Closing</B>&#148; and &#147;<B>Closing Date</B>&#148; shall have the meanings assigned to such terms in <B>Section&nbsp;9.01</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Code</B>&#148; shall mean the Internal Revenue Code, of 1986, as amended from time to time, and any
successor statute thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Conveyance</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;9.02(a)</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Effective Date</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;9.02(a)</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Electing Party</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;15.04.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Excluded Liabilities</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;2.03</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Excluded Properties</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;2.02.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Filings</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;6.05(a).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Governmental Authority</B>&#148; means any federal, state provincial, municipal, local or other
governmental legislature, department, commission, board, bureau, agency or instrumentality, or any
court, in each case whether of the United States, any of its possessions or territories, or of any
foreign nation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Indemnification Claim</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.02(a).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Indemnitee</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.02(a).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Individual Indemnification Deductible</B>&#148; shall have the meaning assigned to such term in <B>Section
11.03</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Intermediary</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;15.04.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>IRS</B>&#148; means the United States Internal Revenue Service and, to the extent relevant, the United
States Department of Treasury.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Laws</B>&#148; means any federal, state, local or other law or governmental requirement of a Governmental
Authority and of any kind, and the rules, regulations, guidelines, and orders promulgated
thereunder, all of the foregoing as amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Material&#148; </B>shall mean any event, obligation, or document (as applicable) or change (whether current
or reasonably foreseeable) that creates, or reasonably should be expected to create, an impact of
Fifty Thousand Dollars ($50,000), unless expressly indicated otherwise in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Oil and Gas Properties</B>&#148; shall have the meaning assigned to such term in <B>Article&nbsp;II</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Prepaid Amounts</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;10.01.</B>
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Pipeline Properties</B>&#148; shall have the meaning given such term in that certain Purchase and Sale
Agreement between Thompson, L.P., Wes-Tex, Cockrell Production Company, Star Production, Inc., Neo
Canyon Exploration, L.P., Thompson Petroleum Corporation and Jean Christine Thompson Trust #2 as
Seller and Approach Resources I, L.P. as Buyer dated June&nbsp;27, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Properties</B>&#148; shall have the meaning assigned to such term in <B>Article&nbsp;II</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Purchase Price</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;3.01</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Purchase Price Allocation</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;3.02</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Representatives</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;6.01.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Response Period</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.02(b).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>SEC</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;6.05(a).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Securities Act</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;6.05(a).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Securities Laws</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;6.05(a).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Seller&#146;s Knowledge</B>&#148; shall mean the actual knowledge of the employees of Seller listed on <B>Exhibit
B</B>, which are the current principal employees of Seller involved in matters relating to the matter
to which the Knowledge qualifier relates, all after reasonable inquiry; provided that any claim or
other matter with respect to the Properties for which Buyer has provided written notice to Seller
prior to this Agreement shall not be included within Seller&#146;s Knowledge for purposes of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Seller&#146;s Losses</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.01(b).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Seller&#146;s Representations</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;4.13.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Survival Period</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;15.01.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Tax</B>&#148; or &#147;<B>Taxes</B>&#148; means (i)&nbsp;any and all federal, state, local or foreign taxes, charges, fees,
imposts, levies or other assessments, including all net income, gross receipts, capital, sales,
use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license,
withholding, payroll, employment, social security, unemployment, excise, severance, stamp,
occupation, property and estimated taxes, customs duties, fees, assessments and charges of any kind
whatsoever; (ii)&nbsp;all interest, penalties, fines, additions to tax or additional amounts imposed by
any Taxing Authority in connection with any item described in clause (i); and (iii)&nbsp;any liability
in respect of any items described in clauses (i)&nbsp;and/or (ii)&nbsp;payable by reason of any tax-sharing
agreement or any other contract relating to the sharing or payment of any such tax, assumption,
transferee liability, operation of law, Treasury Regulation section 1.1502-6(a) (or any predecessor
or successor thereof or any analogous or similar provision under law) or otherwise.
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Taxing Authority</B>&#148; means the IRS and any other Governmental Authority responsible for the
administration of any Tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Tax Return</B>&#148; means any return, report or statement required to be filed with respect to any Tax
(including any attachments thereto, and any amendment thereof), including any information return,
claim for refund, amended return or declaration of estimated Tax, and including, where permitted or
required, combined, consolidated or unitary returns for any group of entities that includes Seller,
any of its subsidiaries, or any of their affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Third Party Claim</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.02(a).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;1.02 </B><u><B>References, Titles and Construction.</B></u>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;All references in this Agreement to articles, sections, subsections and other
subdivisions refer to corresponding articles, sections, subsections and other subdivisions
of this Agreement unless expressly provided otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Titles appearing at the beginning of any of such subdivisions are for convenience only
and shall not constitute part of such subdivisions and shall be disregarded in construing
the language contained in such subdivisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;The words &#147;this Agreement&#148;, &#147;this instrument&#148;, &#147;herein&#148;, &#147;hereof&#148;, &#147;hereby&#148;, &#147;hereunder&#148;
and words of similar import refer to this Agreement as a whole and not to any particular
subdivision unless expressly so limited.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;Words in the singular form shall be construed to include the plural and vice versa,
unless the context otherwise requires. Pronouns in masculine, feminine and neuter genders
shall be construed to include any other gender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(e)&nbsp;Unless the context otherwise requires or unless otherwise provided herein, the terms
defined in this Agreement which refer to a particular agreement, instrument or document also
refer to and include all renewals, extensions, modifications, amendments or restatements of
such agreement, instrument or document, provided that nothing contained in this subsection
shall be construed to authorize such renewal, extension, modification, amendment or
restatement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(f)&nbsp;Examples shall not be construed to limit, expressly or by implication, the matter they
illustrate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(g)&nbsp;The word &#147;or&#148; is not intended to be exclusive and the word &#147;includes&#148; and its
derivatives means &#147;includes, but is not limited to&#148; and corresponding derivative
expressions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(h)&nbsp;No consideration shall be given to the fact or presumption that one party had a greater
or lesser hand in drafting this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(i)&nbsp;All references herein to &#147;$&#148; or &#147;dollars&#148; shall refer to U.S. Dollars.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(j)&nbsp;The Exhibits listed in the Table of Exhibits are attached hereto. Each such Exhibit is
incorporated herein by reference for all purposes and references to this Agreement shall
also include such Exhibit unless the context in which used shall otherwise require.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;II. </B></U><BR>
<U><B>Property to be Sold and Purchased</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;2.01</B> <U><B>Property to be Sold and Purchased</B></U>. Seller agrees to sell and Buyer agrees to purchase, for
the consideration hereinafter set forth, and subject to the terms and provisions herein contained,
the following described properties, rights and interests:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;The properties described in <B>Exhibit&nbsp;A </B>attached hereto and made a part hereof for all
purposes;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Without limitation of the foregoing, all other right, title and interest (of whatever
kind or character, whether legal, beneficial or equitable, and whether vested or contingent)
of Seller in and to the oil, gas and other minerals in and under or that may be produced
from the lands, leases, and wells described in <B>Exhibit&nbsp;A </B>(including interests in oil, gas
and/or mineral leases covering such lands and wells, overriding royalties, production
payments and net profits interests in such lands, such leases and wells, and fee mineral
interests, fee royalty interests and other interests in such oil, gas and other minerals)
whether such lands be described in a description set forth in such <B>Exhibit&nbsp;A</B>, or be
described in such <B>Exhibit&nbsp;A </B>by reference to another instrument (and without limitation by
any depth limitations that may be set forth in such <B>Exhibit&nbsp;A </B>or in any such instrument so
referred to for description), even though Seller&#146;s interest in such oil, gas and other
minerals may be incorrectly described in, or omitted from, such <B>Exhibit&nbsp;A</B>;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;All rights, titles and interests of Seller in and to, or otherwise derived from, all
presently existing and valid oil, gas and/or mineral unitization, pooling, and/or
communitization agreements, declarations and/or orders including those set forth on <B>Exhibit
A </B>and in and to the properties covered and the units created thereby (including all units
formed under orders, rules, regulations, or other official acts of any federal, state, or
other authority having jurisdiction, voluntary unitization agreements, designations and/or
declarations) relating to the properties described in <B>paragraphs (a) </B>and <B>(b) </B>above;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;All rights, titles and interests of Seller in and to all presently existing and valid
production sales (and sales related) contracts, operating agreements, and other agreements
and contracts which are set forth on <B>Exhibit&nbsp;A </B>and which relate to any of the properties
described in <B>paragraphs (a), (b) </B>and <B>(c) </B>above, or which relate to the exploration,
development, operation, or maintenance thereof or the treatment, storage, transportation or
marketing of production therefrom (or allocated thereto);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(e)&nbsp;All rights, titles and interests of Seller in and to all materials, supplies, machinery,
equipment, improvements and other personal property and fixtures (including but not by way
of limitation, all wells, wellhead equipment, pumping units, flowlines, tanks, buildings,
injection facilities, saltwater disposal facilities, compression facilities,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">gathering systems, and other equipment), and all easements, rights-of-way, surface leases
and other surface rights, all permits and licenses, and all other appurtenances being used
or held for use in connection with, or otherwise related to, the exploration, development,
operation or maintenance of any of the properties described in <B>paragraphs (a), (b) </B>and <B>(c)</B>
above, or the treatment, storage, transportation or marketing of production therefrom (or
allocated thereto); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(f)&nbsp;All of Seller&#146;s lease files, abstracts and title opinions, production records, reserve
reports, well files, accounting records (including such access to records as may be
necessary for Buyer to file financial statements and pro forma financial statements as
described in <B>Section&nbsp;6.05 </B>of this Agreement, general tax and general financial accounting
records), seismic records and surveys, gravity maps, electric logs, and geological or
geophysical data and records, which relate solely and exclusively to the properties
described above.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The properties and interests specified in the foregoing <B>paragraphs (a), (b) </B>and <B>(c), </B>except for the
Excluded Properties<B>, </B>are herein sometimes collectively called the &#147;<B>Oil and Gas Properties,</B>&#148; and the
properties and interests specified in the foregoing <B>paragraphs (a), (b), (c), (d), (e) </B>and <B>(f)</B>,
except for the Excluded Properties, are herein sometimes collectively called the &#147;<B>Properties</B>&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;2.02</B> <U><B>Excluded Properties.</B></U> The Properties to be conveyed and assigned under this Agreement do
not include the following (the &#147;<B>Excluded Properties</B>&#148;):
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;All rights and choses in action, arising, occurring or existing in favor of Seller prior
to the Effective Date or arising out of the production from the Oil and Gas Properties prior
to the Effective Date (including, but not limited to, any and all contract rights, claims,
receivables, revenues, recoupment rights, recovery rights, accounting adjustments,
mispayments, erroneous payments or other claims of any nature in favor of Seller and
relating and accruing to any time period prior to the Effective Date);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Any accounts receivable accruing before the Effective Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;All corporate, partnership, financial, tax and legal (other than title) records of
Seller; except Seller shall provide to Buyer those documents necessary for Buyer to make
proper Filings of its financial statements under Securities Laws as referenced in <B>Section
6.05</B>; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;All hydrocarbon production from or attributable to the Properties with respect to all
periods prior to the Effective Date and all proceeds attributable thereto.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;2.03 </B><U><B>Excluded Liabilities</B></U>. Except as explicitly specified in this Agreement, including <B>Sections
2.04 </B>and <B>11.01(b)(ii) </B>and <B>(iii) </B>hereof, Buyer will not assume or be liable for any liabilities of
the Seller with respect to the Properties for periods up to the Effective Date, including without
limitation, all liabilities for Taxes of Seller that relate to the Properties for taxable periods
(or portions thereof) ending before the Effective Date (the &#147;<B>Excluded Liabilities</B>&#148;). Seller shall
timely perform, satisfy and discharge in accordance with their respective terms all such Excluded
Liabilities. Notwithstanding anything to the contrary in this
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Agreement, nothing herein shall relieve Buyer from any of its obligations or liabilities under the
applicable operating agreements relating to the Properties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;2.04 </B><U><B>Assumed Obligations</B></U>. Upon and after Closing, Buyer agrees to assume, and to pay and
perform, all duties, obligations and liabilities of Seller after the Effective Date under all
production sales (and sales related) contracts, leases, operating agreements, and other agreements
and contracts which are set forth on <B>Exhibit&nbsp;A </B>and which relate to any of the Properties, or which
relate to the exploration, development, operation, or maintenance thereof or the treatment,
storage, transportation or marketing of production therefrom.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;III. </B></U><BR>
<U><B>Purchase Price</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;3.01 </B><U><B>Purchase Price</B></U>. In consideration of the sale of the Properties by Seller to Buyer, Buyer
shall pay to Seller at Closing cash in the amount of Seventy-Six Million Dollars ($76,000,000)
(&#147;<B>Purchase Price</B>&#148;). The Purchase Price shall be adjusted as provided in <B>Section&nbsp;10.02(a) </B>(the
Purchase Price, as so adjusted, and as the same may be otherwise adjusted by the mutual agreement
of the parties, being called the &#147;<B>Adjusted Purchase Price</B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;3.02 </B><U><B>Purchase Price Allocation</B></U><B>. </B>Seller and Buyer agree that they shall allocate the Purchase
Price as adjusted hereunder, among the Properties for Tax purposes in a manner consistent with
Section&nbsp;1060 of the Code based upon the fair market value of the Properties (the &#147;<B>Purchase Price
Allocation</B>&#148;). The Purchase Price Allocation shall be agreed upon on or before June&nbsp;30, 2011.
Seller and Buyer agree to file all Tax Returns (including IRS Form&nbsp;8594 and any amended Tax Returns
or claims for refund) in a manner consistent with the Purchase Price Allocation, and neither Seller
nor Buyer shall take, or shall permit any subsidiary or affiliate to take, any position
inconsistent with such Purchase Price Allocation on any Tax Return or otherwise, unless required to
do so by applicable Law or a &#147;determination&#148; within the meaning of Section&nbsp;1313(a)(1) of the Code.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>Article&nbsp;IV. </B></U><BR>
<U><B>Representations and Warranties of Seller</B></U>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each Seller Party, for itself only, represents to Buyer, as of the date of this Agreement and as of
the date of Closing, that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.01 </B><U><B>Organization and Existence</B></U>. Such Seller Party is a Texas limited partnership duly
organized, validly existing, duly qualified to transact business, and in good standing under the
Laws of the State of Texas. Such Seller Party is not a non-resident alien, foreign corporation,
foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and in
the regulations promulgated pursuant thereto).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.02 </B><U><B>Power and Authority</B></U>. Such Seller Party has all necessary and appropriate authority to
execute, deliver, and perform this Agreement and each other agreement, instrument, or document
executed or to be executed by such Seller Party in connection with the transactions contemplated
hereby to which it is a party and to consummate the transactions contemplated hereby and thereby.
The execution, delivery, and performance by such Seller Party of this Agreement and each other
agreement, instrument, or document executed or to be executed by
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such Seller Party in connection with the transactions contemplated hereby to which it is a party,
and the consummation by it of the transactions contemplated hereby and thereby, have been duly
authorized by all necessary action of such Seller Party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.03 </B><U><B>Valid and Binding Agreement</B></U>. This Agreement has been duly executed and delivered by such
Seller Party and constitutes, and each other agreement, instrument, or document executed or to be
executed by such Seller Party in connection with the transactions contemplated hereby to which it
is a party has been, or when executed will be, duly executed and delivered by such Seller Party and
constitutes, or when executed and delivered will constitute, a valid and legally binding obligation
of such Seller Party, enforceable against it in accordance with their respective terms, except that
such enforceability may be limited by (a)&nbsp;applicable bankruptcy, insolvency, reorganization,
moratorium, and similar Laws affecting creditors&#146; rights generally and (b)&nbsp;equitable principles
which may limit the availability of certain equitable remedies (such as specific performance) in
certain instances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.04 </B><U><B>Non-Contravention</B></U>. Neither the execution, delivery, and performance by such Seller Party
of this Agreement and each other agreement, instrument, or document executed or to be executed by
such Seller Party in connection with the transactions contemplated hereby to which it is a party
nor the consummation by it of the transactions contemplated hereby and thereby do and will (a)
conflict with or result in a violation of any provision of any governing instruments of such Seller
Party, (b)&nbsp;conflict with or result in a violation of any provision of, or constitute (with or
without the giving of notice or the passage of time or both) a default under, or give rise (with or
without the giving of notice or the passage of time or both) to any right of termination,
cancellation, or acceleration under, any bond, debenture, note, mortgage or indenture, or any
lease, contract, agreement, or other instrument or obligation to which such Seller Party is a party
or by which such Seller Party or any of its properties may be bound (except for consents to be
obtained and liens to be released at Closing), (c)&nbsp;result in the creation or imposition of any lien
or other encumbrance upon the properties of such Seller Party, or (d)&nbsp;violate any applicable Law,
binding upon such Seller Party or the Properties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.05 </B><U><B>Approvals</B></U>. No consent, approval, order, or authorization of, or declaration, filing, or
registration with, any Governmental Authority or any third party is required to be obtained or made
by such Seller Party in connection with the execution, delivery, or performance by such Seller
Party of this Agreement, each other agreement, instrument, or document executed or to be executed
by such Seller Party in connection with the transactions contemplated hereby to which it is a party
or the consummation by it of the transactions contemplated hereby and thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.06 </B><U><B>Pending Litigation</B></U>. There are no pending suits, actions, notices of violations, or other
proceedings or claims for which such Seller Party has received written notice or, to such Seller
Party&#146;s Knowledge, any such threatened suits, actions, notices of violations, or other proceedings
or claims in which (a)&nbsp;such Seller Party is or may be a party which relate to such Seller Party&#146;s
Properties (including, without limitation, suits, actions, notices of violations, or other
proceedings or claims challenging or pertaining to such Seller Party&#146;s title to the Properties), or
(b)&nbsp;that affect the execution and delivery of this Agreement or the consummation of the
transactions contemplated hereby.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.07 </B><U><B>Area of Mutual Interest and Other Agreements</B></U>. Except for the areas of mutual interest set
forth in the joint operating agreements described in <B>Exhibit&nbsp;A</B>, no Oil and Gas Property is subject
to (or has related to it) any area of mutual interest agreements. No Oil and Gas Property is
subject to (or has related to it) any farm-out or farm-in agreement, volumetric production payment,
or other similar agreement under which any party thereto is entitled to receive assignments not yet
made, or could earn additional assignments after the Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.08 </B><U><B>No Alienation</B></U>. Within 120&nbsp;days of the date hereof, such Seller Party has not sold,
assigned, conveyed, or transferred or contracted to sell, assign, convey or transfer any right or
title to, or interest in, such Seller Party&#146;s Oil and Gas Properties other than production sold in
the ordinary course of such Seller Party&#146;s business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.09 </B><U><B>No Oral Contracts</B></U>. Such Seller Party has not entered into any Material oral contract with
respect to the Properties which is still in force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.10 </B><U><B>Preferential Rights</B></U>. None of the Oil and Gas Properties is subject to any preferential
rights to purchase that will need to be waived in order for such Seller Party to consummate the
transactions contemplated by this Agreement without violating or breaching a duty or obligation of
such Seller Party, or causing a forfeiture or termination of any right or interest of such Seller
Party in the Properties, or the transfer of such right or interest to Buyer, or giving any person a
right (whether conditional or otherwise) to cancel or void any right or interest of such Seller
Party in the Properties or the transfer of such right or interest to Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.11 </B><U><B>Liens</B></U>. Except as listed on <B>Exhibit&nbsp;4.11</B>, none of the Oil and Gas Properties is
subject to any liens, encumbrances, or other security interests other than (a)&nbsp;liens for taxes not
yet delinquent or (b)&nbsp;a mechanic&#146;s or materialmen&#146;s lien (or other similar lien), or a lien under
an operating agreement or similar agreement, to the extent the same relates to expenses incurred
which are not yet due.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.12 </B><U><B>Taxes</B></U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;All Tax Returns required to have been filed by or with respect to such Seller Party, as
related to the Properties, have been duly and timely filed (taking into account any valid
extension of time to file) for all Taxable periods with all Taxing Authorities, and no
extensions of time to file with respect to such Tax Returns are currently outstanding, and
all such Tax Returns are true, correct, and complete in all Material respects and accurately
reflect in all Material respects the liability of Taxes of such Seller Party, as related to
the Properties; and (ii)&nbsp;all Taxes relating to such Seller Party&#146;s ownership of the
Properties have been fully and timely paid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;To such Seller Party&#146;s Knowledge, there has been no issue raised or adjustment proposed
(and none is pending or expected by such Seller Party) by the IRS or any other Taxing
Authority with respect to liabilities for Taxes relating to such Seller Party&#146;s ownership of
the Properties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;There are no outstanding federal, state or local governmental liens or other
encumbrances with respect to Taxes upon any of the Properties, except for liens with respect
to real property Taxes not yet due and payable.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;Such Seller Party is not a foreign person within the meaning of Section&nbsp;1445 of the
Code.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.13 </B><U><B>Disclaimer of Warranties</B></U>. Other than those representations and warranties expressly set
out in this Agreement and the Conveyance to be delivered at Closing, (collectively <B>&#147;Seller&#146;s
Representations&#148;</B>), Seller hereby expressly disclaims any and all representations or warranties with
respect to the Properties or the transaction contemplated hereby, and Buyer agrees that the
Properties are being sold by Seller &#147;where is&#148; and &#147;as is&#148;, with all faults. Specifically as a part
of (but not in limitation of) the foregoing, Buyer acknowledges that, other than the Seller&#146;s
Representations, Seller has not made, and Seller hereby expressly disclaims, any representation or
warranty (express, implied, under common law, by statute or otherwise) as to the condition of the
Properties (INCLUDING WITHOUT LIMITATION, SELLER DISCLAIMS ANY IMPLIED OR EXPRESS WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR CONFORMITY TO MODELS OR SAMPLES OF
MATERIALS). All of the disclaimers of representations, warranties or other matters in this
Agreement are subject to Seller&#146;s Representations and are not meant to constitute a waiver or
limitation of any claim against Seller for fraud.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;V. </B></U><BR>
<U><B>Representations and Warranties of Buyer</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Buyer represents to Seller, as of the date of this Agreement and as of the date of the Closing,
that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.01 </B><U><B>Organization and Existence</B></U>. Buyer is a Delaware corporation duly organized, validly
existing and in good standing under the Laws of the State of Delaware and is qualified to transact
business in the State of Texas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.02 </B><U><B>Power and Authority</B></U>. Buyer has all necessary and appropriate authority to execute,
deliver, and perform this Agreement and each other agreement, instrument, or document executed or
to be executed by Buyer in connection with the transactions contemplated hereby to which it is a
party and to consummate the transactions contemplated hereby and thereby. The execution, delivery,
and performance by Buyer of this Agreement and each other agreement, instrument, or document
executed or to be executed by Buyer in connection with the transactions contemplated hereby to
which it is a party, and the consummation by it of the transactions contemplated hereby and
thereby, have been duly authorized by all necessary action of Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.03 </B><U><B>Valid and Binding Agreement</B></U>. This Agreement has been duly executed and delivered by Buyer
and constitutes, and each other agreement, instrument, or document executed or to be executed by
Buyer in connection with the transactions contemplated hereby to which it is a party has been, or
when executed will be, duly executed and delivered by Buyer and constitutes, or when executed and
delivered will constitute, a valid and legally binding obligation of Buyer, enforceable against it
in accordance with their respective terms, except that such enforceability may be limited by (a)
applicable bankruptcy, insolvency, reorganization, moratorium, and similar Laws affecting
creditors&#146; rights generally and (b)&nbsp;equitable principles which may limit the availability of
certain equitable remedies (such as specific performance) in certain instances.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.04 </B><U><B>Non-Contravention</B></U>. The execution, delivery, and performance by Buyer of this Agreement and
each other agreement, instrument, or document executed or to be executed by Buyer in connection
with the transactions contemplated hereby to which it is a party and the consummation by it of the
transactions contemplated hereby and thereby do not and will not (a)&nbsp;conflict with or result in a
violation of any provision of any governing instruments of Buyer, (b)&nbsp;conflict with or result in a
violation of any provision of, or constitute (with or without the giving of notice or the passage
of time or both) a default under, or give rise (with or without the giving of notice or the passage
of time or both) to any right of termination, cancellation, or acceleration under, any bond,
debenture, note, mortgage, indenture, lease, contract, agreement, or other instrument or obligation
to which Buyer is a party or by which Buyer or any of its properties may be bound, (c)&nbsp;result in
the creation or imposition of any lien or other encumbrance upon the properties of Buyer, or (d)
violate any applicable Law binding upon Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.05 </B><U><B>Approvals</B></U>. No consent, approval, order, or authorization of, or declaration, filing, or
registration with, any Governmental Authority or any third party is required to be obtained or made
by Buyer in connection with the execution, delivery, or performance by Buyer of this Agreement and
each other agreement, instrument, or document executed or to be executed by Buyer in connection
with the transactions contemplated hereby to which it is a party or the consummation by it of the
transactions contemplated hereby and thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.06 </B><U><B>Pending Litigation</B></U>. There are no pending suits, actions, or other proceedings in which
Buyer is a party which affect the execution and delivery of this Agreement or the consummation of
the transactions contemplated hereby.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;VI. </B></U><BR>
<U><B>Certain Covenants of Seller </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;6.01 </B><U><B>Access to Files</B></U>. From the date hereof until Closing, Seller will give Buyer, and its
representatives (the &#147;<B>Representatives</B>&#148;), access at all reasonable times during normal business
hours, and upon reasonable advance notice, to any contract files, land, lease or other title files,
marketing files, production files, well files, accounting records, environmental analyses and
assessments and reviews and other files prepared by or on behalf of Seller or Seller&#146;s lenders
pertaining to the ownership and/or operation of the Properties, or to any liability or obligations
assumed by Buyer, in connection with the transactions completed by this Agreement and Seller will
use its best efforts to arrange for Buyer and its Representatives, to have access to any such files
in the office of Seller. Subject to <B>Section&nbsp;15.08 </B>herein, all information obtained by Buyer and
its Representatives shall be maintained in strict confidence, for use solely in connection with its
evaluation of the Properties and, prior to Closing, shall not be disclosed to any other party
without Seller&#146;s prior written consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;6.02 </B><U><B>Restrictions on Certain Actions</B></U>. From the date hereof until Closing, Seller will not,
without Buyer&#146;s prior consent:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;propose the drilling of any additional wells, or propose the deepening, plugging back or
reworking of any existing wells;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;propose the conducting of any other operations which require consent under the
applicable operating agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;propose the conducting of any other operations other than the normal operation of the
existing wells on the Oil and Gas Properties;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;propose the abandonment of any wells on the Oil and Gas Properties;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(e)&nbsp;sell, transfer or abandon any portion of the Properties other than oil or gas produced
from Oil and Gas Properties;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(f)&nbsp;release (or permit to terminate), or modify or reduce its rights under, any oil, gas
and/or mineral lease forming a part of the Oil and Gas Properties; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(g)&nbsp;make or revoke any material Tax election, or settle or compromise any material Tax
liability, or change (or make a request to any Taxing Authority to change) any material
aspect of its method of accounting for Tax purposes, in each case if such action would have
any material adverse effect on the Properties following the Closing; provided that,
notwithstanding anything to the contrary in this Agreement (other than the adjustment
provisions set forth in <B>Article&nbsp;X </B>with respect to the Prepaid Amounts), (i)&nbsp;Seller&#146;s
obligation to approve, consent to, make any election with respect to or otherwise respond to
any matter, or to pay any amounts pursuant to any AFE, JIB or drilling advance invoice or
similar invoice, proposed or submitted to Seller by Buyer or any other person under the
applicable operating agreements relating to the Properties, whether proposed or submitted
prior to or on or after the date of this Agreement, shall be suspended and (ii)&nbsp;whether or
not the Closing occurs, Seller shall not be deemed in breach or violation of such operating
agreements on account of its failure to so approve, consent, elect, respond or pay during
the period such obligation is suspended.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;6.03 </B><U><B>No Negotiation</B></U>. From the date hereof until the Closing, Seller will not directly or
indirectly solicit, initiate or encourage any inquiries or proposals from, discuss or negotiate
with, provide any nonpublic information to or entertain or consider the merits of or accept any
inquiries or proposals from any person (other than Buyer) relating to any sale of any of the
Properties or any similar transaction or arrangement involving any of the Properties, other than
the sale of production from the Properties. Seller shall notify Buyer of any such inquiry or
proposal within twenty-four (24)&nbsp;hours of receipt or awareness of the same by Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;6.04 </B><U><B>Notification of Certain Matters</B></U>. From the date hereof until Closing, each party shall give
prompt notice to the other party of (i)&nbsp;the discovery of any fact, information or circumstance
which would be likely to cause any representation or warranty of such party contained in this
Agreement to be untrue or inaccurate in any material respect and (ii)&nbsp;any material failure of such
party to comply with or satisfy any covenant, condition or agreement to be complied with or
satisfied by it hereunder. Such notice shall expressly disclose, if such discovery of any
additional fact, information or circumstance would have required disclosure on any Exhibit, that it
was known as of the date of this Agreement. The delivery of any notice pursuant to this Section
shall not be deemed to (i)&nbsp;modify the representations or warranties hereunder of the party
delivering such notice, (ii)&nbsp;modify the conditions set forth in <B>Article&nbsp;VIII</B>,
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or (iii)&nbsp;limit or otherwise affect the remedies available hereunder to the party receiving such
notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Section&nbsp;6.05 </B><U><B>Access for Financial Statements</B></U><B>.</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;From and after the date of this Agreement, Seller shall, and shall cause its affiliates
and their respective partners, employees, agents and representatives to, cooperate with
Buyer and its affiliates and their agents and representatives in connection with compliance
with Buyer&#146;s and its affiliates&#146; tax, financial or other reporting requirements and audits,
including (i)&nbsp;any filings with any Governmental Authority and (ii)&nbsp;any filings that may be
required by the Securities and Exchange Commission (the &#147;<B>SEC</B><I>&#148;</I>), under securities laws
applicable to Buyer and its affiliates, including the filing by Buyer or its affiliates with
the SEC of one or more registration statements to register any securities of Buyer or its
affiliates under the Securities Act of 1933 (the &#147;<B>Securities Act</B><I>&#148;</I>) or of any report required
to be filed by Buyer or its affiliates under the Securities Exchange Act of 1934 (together
with the Securities Act and the rules and regulations promulgated under such acts, the
&#147;<B>Securities Laws</B><I>&#148;</I>) (collectively, the &#147;<B>Filings</B><I>&#148;</I>). Further, from and after the date of this
Agreement, Seller agrees to make available to Buyer and its affiliates and their agents and
representatives any and all books, records, information and documents that are attributable
to the Properties in Seller&#146;s or its affiliates&#146; possession or control required by Buyer,
its affiliates and their agents and representatives in order to prepare for Buyer or its
affiliates, if required, in connection with such Filings, financial statements relating to
the Properties or to Seller or its affiliates meeting the requirements of Regulation&nbsp;S-X
under the Securities Act or other Securities Laws, along with any documentation attributable
to the Properties or otherwise related to Seller or its affiliates required to complete any
audit associated with such financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Without limiting the generality of <B>Section&nbsp;6.</B><B>05(a)</B> above, from and after the date of
this Agreement, Seller shall, and shall cause its affiliates to, cooperate with the
independent auditors chosen by Buyer (<B><I>&#147;</I></B><B>Buyer&#146;s Auditor&#148;</B>) in connection with any audit by
Buyer&#146;s Auditor of any financial statements or records of the Properties or of Seller or its
affiliates that Buyer or any of its affiliates requires to comply with the requirements of
the Securities Laws or other tax, financial or reporting requirements. Seller&#146;s cooperation
will include (i)&nbsp;full access to Seller&#146;s officers, managers, employees, agents and
representatives who were responsible for preparing or maintaining the financial records and
work papers and other supporting documents used in the preparation of such financial
statements as may be required by Buyer&#146;s Auditor to perform an audit or conduct a review in
accordance with generally accepted auditing standards or to otherwise verify such financial
statements, (ii)&nbsp;delivery of one or more customary representation letters from each Seller
Party to Buyer&#146;s Auditor that are reasonably requested by Buyer to allow such auditors to
complete an audit (or review of any financial statements), and to issue an opinion
acceptable to Buyer&#146;s Auditor with respect to an audit or review of those financial records
required pursuant to this <B>Section&nbsp;6.</B><B>05(b)</B> and (iii)&nbsp;obtaining the consent of the independent
auditor of Seller that conducted any audit or review of such financial statements to be
named as an expert in any report filed by Buyer with the SEC. Buyer will reimburse each
Seller Party, within 10 business days
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">after demand in writing therefor, for any reasonable out-of-pocket costs incurred by such
Seller Party in complying with the provisions of this <B>Section&nbsp;6.</B><B>05(b)</B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;For a period of three years following the Closing, each Seller Party shall, and shall
cause its affiliates to, retain all books, records, information and documents in its or its
affiliates&#146; possession that are necessary to prepare and audit financial statements with
respect to the Properties or otherwise relating to Seller or its affiliates.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;VII. </B></U><BR>
<U><B>RESERVED</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 12pt"><U><B>Article&nbsp;VIII. </B></U><BR>
<U><B>Conditions Precedent to the Obligations of the Parties to Close</B></U>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;8.01 </B><U><B>Conditions Precedent to the Obligations of Buyer to Close</B></U>. The obligations of Buyer to
consummate the transactions contemplated by this Agreement are subject to each of the following
conditions being met:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;Each of the representations and warranties of Seller contained in <B>Article&nbsp;IV </B>that is:
(i)&nbsp;qualified by materiality (whether by reference to the terms &#147;material,&#148; &#147;materiality&#148;,
&#147;Material&#148; or similar qualifiers set forth therein) shall be true and correct in all
respects on and as of the Closing Date (giving effect to such materiality qualification) as
if made on and as of such date (other than any such representation or warranty that by its
terms addresses matters only as of another specified time, in which case such representation
or warranty shall have been true and correct in all respects as of such time); and (ii)&nbsp;not
so qualified by materiality shall be true and correct in all material respects on and as of
the Closing Date as if made on and as of such date (other than any such representation or
warranty that by its terms addresses matters only as of another specified time, in which
case such representation or warranty shall have been true and correct in all material
respects as of such time).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Except for covenants, agreements and conditions qualified by &#147;material&#148; or &#147;materiality&#148;
in which case compliance must be performed and complied with in all respects by Seller prior
to or at the Closing, Seller shall have performed and complied in all material respects with
(or compliance therewith shall have been waived by Buyer) each and every covenant, agreement
and condition required by this Agreement to be performed or complied with by Seller prior to
or at the Closing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;Seller shall have delivered a certificate executed on behalf of Seller by an authorized
representative of Seller dated the Closing Date, representing and certifying in such detail
as Buyer may reasonably request that the conditions set forth in <B>paragraphs (a) </B>and <B>(b)</B>
above have been fulfilled.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;No suit, action or other proceedings shall, on the date of Closing, be pending or
threatened before any Governmental Authority seeking to restrain, prohibit, or obtain
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">damages or other relief in connection with the consummation of the transactions contemplated
by this Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any such condition on the obligations of Buyer under this Agreement is not met as of the Closing
Date, or in the event the Closing does not occur on or before the Closing Date, and (in either
case) Buyer is not in breach of its obligations hereunder, this Agreement may, at the option of
Buyer, be terminated, in which case the parties shall have no further obligations to one another
hereunder (other than the obligations under <B>Article&nbsp;XIV, Section&nbsp;11.01(d) </B>and <B>Section&nbsp;15.06</B>, which
will survive such termination).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;8.02 </B><U><B>Conditions Precedent to the Obligations of Seller to Close</B></U>. The obligations of Seller to
consummate the transactions contemplated by this Agreement are subject to each of the following
conditions being met:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;Each of the representations and warranties of Buyer contained in <B>Article&nbsp;V </B>that is: (i)
qualified by materiality (whether by reference to the terms &#147;material,&#148; &#147;Material,&#148; or
similar qualifiers set forth therein) shall be true and correct in all respects on and as of
the Closing Date (giving effect to such materiality qualification) as if made on and as of
such date (other than any such representation or warranty that by its terms addresses
matters only as of another specified time, in which case such representation or warranty
shall have been true and correct in all respects as of such time); and (ii)&nbsp;not so qualified
by materiality shall be true and correct in all material respects on and as of the Closing
Date as if made on and as of such date (other than any such representation or warranty that
by its terms addresses matters only as of another specified time, in which case such
representation or warranty shall have been true and correct in all material respects as of
such time).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Except for covenants, agreements and conditions qualified by &#147;material&#148; &#147;Material&#148; or
&#147;materiality&#148; in which case such covenants, agreements and conditions must be performed and
complied with in all respects by Buyer prior to or at the Closing, Buyer shall have
performed and complied in all material respects with (or compliance therewith shall have
been waived by Seller) each and every covenant, agreement and condition required by this
Agreement to be performed or complied with by Buyer prior to or at the Closing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;No suit, action or other proceedings shall, on the date of Closing, be pending or
threatened before any Governmental Authority seeking to restrain, prohibit, or obtain
damages or other relief in connection with the consummation of the transactions contemplated
by this Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any such condition on the obligations of Seller under this Agreement is not met as of the
Closing Date, or in the event the Closing does not occur on or before the Closing Date, and (in
either case) Seller is not in breach of its obligations hereunder, this Agreement may, at the
option of Seller, be terminated, in which case the parties shall have no further obligations to one
another hereunder (other than the obligations under <B>Article&nbsp;XIV, Section&nbsp;11.01(d) </B>and <B>Section
15.06, </B>which will survive such termination).
</DIV>



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</DIV>



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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;IX.</B></U><BR>
<U><B>Closing of Transaction</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;9.01 </B><U><B>The Closing</B></U>. The closing (herein called the &#147;<B>Closing</B>&#148;) of the transaction
contemplated hereby shall take place in the offices of Thompson &#038; Knight L.L.P., at 1722 Routh
Street, Suite&nbsp;1500, Dallas, Texas, 75201, at 10:00&nbsp;a.m. Central Time, on February&nbsp;28, 2011, or at
such other date and time as the Buyer and Seller may mutually agree upon (such date and time being
herein called the &#147;<B>Closing Date</B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;9.02 </B><U><B>Seller&#146;s Closing Obligations</B></U>. At the Closing, Seller shall:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;execute, acknowledge and deliver to Buyer a conveyance of the Properties (the
&#147;<B>Conveyance</B>&#148;), in the form attached hereto as <B>Exhibit&nbsp;9.02(a)</B>, effective as to runs of oil
and deliveries of gas as of December&nbsp;1, 2010 at 9:00 o&#146;clock a.m. Central Time (the
&#147;<B>Effective Date</B>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;deliver a copy of the resolutions or other applicable documents evidencing authority by
the governing body of Seller authorizing Seller to execute and deliver this Agreement and
all related documents and instruments and to perform its obligations hereunder and
thereunder, which copy shall be certified by the secretary, assistant secretary or general
partner of Seller satisfactory to Buyer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;deliver evidence reasonably satisfactory to Buyer of the authority of each signatory of
Seller to execute, deliver and perform this Agreement and all related documents and
instruments;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;deliver to Buyer a certificate of existence and good standing issued by the Secretary of
State of Texas and dated no earlier than five business days prior to the Closing Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(e)&nbsp;deliver original, executed releases for all liens on the Properties set forth on <B>Exhibit
4.11 </B>in a form satisfactory to Buyer and with an adequate number of counterparts for
recording said releases;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(f)&nbsp;cause to be executed and delivered to Buyer a Release, Termination and Settlement
Agreement between Ozona Pipeline Energy Company and Approach Resources I dated as of
February&nbsp;28, 2011 (the &#147;<B>Release, Termination and Settlement Agreement</B>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(g)&nbsp;execute and deliver to Buyer an affidavit or other certification (as provided by the
Code) that such Seller Party is not a &#147;foreign person&#148; within the meaning of Section&nbsp;1445
(or similar provisions) of the Code (i.e., Seller is not a non-resident alien, foreign
corporation, foreign partnership, foreign trust or foreign estate as those terms are defined
in the Code and regulations promulgated thereunder in the forms attached hereto as <B>Exhibit
9.02(g)</B>); and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(h)&nbsp;cause the execution and delivery of a <B>Conveyance </B>in the form attached hereto as <B>Exhibit
9.</B><B>02(h)</B> pursuant to which Approach Resources I, LP will be conveyed the Pipeline Properties.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;9.03 </B><U><B>Buyer&#146;s Closing Obligations</B></U>. At the Closing, Buyer shall
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;deliver evidence satisfactory to Seller of the authority of Buyer to execute, deliver,
and perform this Agreement and all related documents and instruments;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;cause to be executed and delivered to Seller the Release, Termination, and Settlement
Agreement; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;deliver to the Seller, by wire transfer in immediately available funds to an account
designated by Seller in a bank located in the United States, an amount equal to the Adjusted
Purchase Price.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;X.</B></U><BR>
<U><B>Certain Accounting Adjustments</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;10.01 </B><U><B>Adjustments</B></U>. Appropriate adjustments shall be made between Buyer and Seller
so that (a)&nbsp;all expenses (including all drilling costs, all capital expenditures, and all overhead
charges under applicable operating agreements, and all other overhead charges actually charged by
third parties) which are incurred in the operation of the Properties on or after the Effective Date
will be borne by Buyer, and all proceeds (net of applicable production, severance, and similar
Taxes) from the sale of oil, gas and/or other minerals produced from the Oil and Gas Properties on
or after the Effective Date will be received by Buyer, and (b)&nbsp;all expenses (including all drilling
costs, all capital expenditures, and all overhead charges under applicable operating agreements,
and all other overhead charges actually charged by third parties) which are incurred in the
operation of the Properties before the Effective Date will be borne by Seller and all proceeds (net
of applicable production, severance, and similar Taxes) from the sale of oil, gas and/or other
minerals produced from the Oil and Gas Properties before the Effective Date will be received by
Seller. It is agreed that, in making such adjustments, all oil and all other hydrocarbons which
were produced from the Oil and Gas Properties and which were, on the Effective Date, stored in
tanks located on the Oil and Gas Properties and above pipeline connections shall be deemed to have
been produced before the Effective Date (it is recognized that such tanks may not have been gauged
on the Effective Date for the purposes of this Agreement and that determination of the volume of
such oil in storage will be based on the best available data, which may include estimates). For
purposes of this <B>Section&nbsp;10.01, </B>oil in storage will be valued at the weighted average price for oil
produced from the Oil and Gas Properties during the month of December&nbsp;2010 after deduction for
trucking, transportation and other expenses associated with the sale of oil and condensate. Ad
valorem personal property and similar Taxes attributable to the Properties assessed with respect to
a period which begins before, and ends after, the Effective Date shall be prorated based on the
number of days in such period which fall on each side of the Effective Date (with the day on which
the Effective Date falls being counted in the period after the Effective Date); it being expressly
understood and agreed by the parties that such ad valorem personal property and similar Taxes will
be based on the January&nbsp;1, 2010 assessed values of the Properties, as reflected in the tax
statement billings
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">rendered by the applicable Governmental Authorities to Buyer, as operator, in 2010. Without
limiting the foregoing allocation of liability for ad valorem and similar Taxes, Buyer shall be
responsible for the administrative function of sending payment for the ad valorem and similar Taxes
on the Properties to the appropriate Governmental Authority and for the filing of any related Tax
Returns. No consideration shall be given to the local, state or federal income Tax liabilities of
any party. For the avoidance of doubt, (a)&nbsp;any advances made by Seller prior to Closing for the
drilling of wells or other operations on the Properties (the &#147;<B>Prepaid Amounts</B>&#148;) and (b)&nbsp;any
reimbursements, refunds, rebates, credits or adjustments received by Buyer at any time for
severance taxes paid with respect to production from the Properties before the Effective Date or
for any other expenses relating to the Properties which were charged to Seller, shall be subject to
the foregoing adjustment provisions, and, in the case of the reimbursements, refunds, rebates,
credits or adjustments referred to in clause (b)&nbsp;above, shall be credited to Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;10.02 </B><U><B>Closing and Post-Closing Accounting Settlements</B></U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;At or before Closing, the parties shall determine, based upon the best information
reasonably available to them, the amount of the adjustments provided for in <B>Section&nbsp;10.01</B>.
If the amount of adjustments so determined which would result in a credit to Buyer exceed
the amount of adjustments so determined which would result in a credit to Seller, Buyer
shall receive a credit, for the amount of such excess, against the Purchase Price to be paid
at Closing, and, if the converse is true, Buyer shall pay to Seller, at Closing (in addition
to amounts otherwise then owed), the amount of such excess.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Within 10 business days after Closing, the parties shall determine, based upon the best
information reasonably available to them, the amount of the adjustments provided for in
<B>Section&nbsp;10.01 </B>with respect to the Prepaid Amounts (to the extent such adjustments have not
already been taken into account pursuant to <B>paragraph (a) </B>above), and shall make any such
adjustments by appropriate payments from Buyer to Seller. These adjustments and the
appropriate payments from Buyer shall be determined (i)&nbsp;on an individual AFE-by-AFE basis
and (ii)&nbsp;independently of adjustments provided for in <B>Section&nbsp;10.01 </B>with respect to expenses
other than those relating to Prepaid Amounts, which such other adjustments shall be made
pursuant to <B>paragraphs (c) </B>and <B>(d) </B>below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;On or before 45&nbsp;days after Closing, Buyer and Seller shall review any additional
information which may then be available pertaining to the adjustments provided for in
<B>Section&nbsp;10.01</B>, shall determine if any additional adjustments (whether the same be made to
account for expenses or revenues not considered in making the adjustments made at Closing,
or to correct errors made in such adjustments) should be made beyond those made at Closing,
and shall make any such adjustments by appropriate payments from Seller to Buyer or from
Buyer to Seller.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;Should any additional items which would be the subject of adjustments provided for in
<B>Section&nbsp;10.01 </B>above come to the attention of Buyer or Seller after such adjustments under
<B>paragraph (c) </B>above are concluded, such adjustments shall be made by appropriate payments
from Buyer to Seller or from Seller to Buyer.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(e)&nbsp;Buyer shall afford seller and its representatives reasonable access to all Buyer&#146;s books
and records and other documents pertaining to the items which are or should be the subject
of the adjustments provided for in <B>Section&nbsp;10.01 </B>to enable Seller to verify all such
adjustments.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;10.03 </B><U><B>No Sales Taxes.</B></U> No sales, transfer or similar Tax will be collected at
Closing in connection with this transaction. If, however, this transaction is later deemed to be
subject to sales, transfer or similar Tax, at any time, for any reason, Buyer shall be responsible
for all sales, transfer or other similar Taxes (including related penalty, interest or legal costs)
due by virtue of this transaction on the Properties transferred pursuant hereto (regardless of the
person liable for such Taxes under applicable Law) and shall remit such Taxes at that time. Seller
and Buyer agree to cooperate with each other in all reasonable respects in demonstrating that the
requirements for any exemption from such Taxes have been met.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;XI.</B></U><BR>
<U><B>Post Closing Obligations </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;11.01 </B><U><B>Indemnification Obligations</B></U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;Seller shall, on the date of Closing, agree (and, upon delivery to Buyer of the
Conveyance, shall be deemed to have agreed), subject to the limitations and procedures
contained in this <B>Section&nbsp;11.01</B>, and in <B>Sections&nbsp;11.02, 11.03</B>, <B>11.04 </B>and <B>15.01</B>, following
the Closing, to remain responsible for and indemnify, defend and hold Buyer (and for
purposes of <B>Article&nbsp;XI</B>, its directors, officers, employees and attorneys, contractors,
subcontractors, and agents) harmless from and against any and all claims, obligations,
actions, liabilities, damages, expenses (including, without limitation, court costs and
consultants&#146; and attorneys&#146; fees) or losses (collectively, &#147;<B>Buyer&#146;s Losses</B>&#148;) arising out of,
relating to or caused by (i)&nbsp;any misrepresentation or breach of any warranty, covenant or
agreement of Seller contained in this Agreement or any certificate delivered by Seller at
the Closing, (ii)&nbsp;any personal injury (including death) or property damage sustained on or
in connection with the Properties&nbsp;arising in any way from any actions conducted by
Seller&#146;s directors, officers, employees, contractors and agents on the Properties prior to
the Closing, or (iii)&nbsp;the Excluded Properties and Excluded Liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Buyer shall, on the date of Closing, agree (and, upon delivery to Buyer of the
Conveyance, shall be deemed to have agreed), subject to the limitations and procedures
contained in this <B>Section&nbsp;11.01</B>, and in <B>Sections&nbsp;11.02, 11.03</B>, <B>11.04</B>, and <B>15.01</B>, following
the Closing, to remain responsible for and indemnify, defend and hold Seller (and for
purposes of <B>Article&nbsp;XI</B>, its affiliates and its and their respective directors, officers,
employees and attorneys, contractors, subcontractors, and agents) harmless from and against
any and all claims, obligations, actions, liabilities, damages, costs, expenses (including,
without limitation, court costs and consultants&#146; and attorneys&#146; fees), or losses
(collectively, &#147;<B>Seller&#146;s Losses</B>&#148;) arising out of, relating to or caused by (i)&nbsp;any
misrepresentation or breach of any warranty, covenant or agreement of Buyer contained in
this Agreement, (ii)&nbsp;the ownership or operation of the Properties after the Effective Date,
or (iii)&nbsp;the condition of the Properties on, prior to or after the Effective Date
(including, without limitation, all obligations to properly plug and abandon, or replug and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">re-abandon, wells located on the Properties, to restore the surface of the Properties and to
comply with, or to bring the Properties into compliance with, Applicable Environmental Laws,
including conducting any remediation activities which may be required on or otherwise in
connection with activities on the Properties), regardless of whether such condition or the
events giving rise to such condition arose or occurred before or after the Effective Date.
Notwithstanding anything to the contrary contained herein, Buyer shall not be obligated to
indemnify or hold Seller harmless for any of Buyer&#146;s Losses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;Nothing in <B>paragraphs (a) </B>and <B>(b) </B>above shall be construed as overriding the adjustment
procedure provided for in <B>Article&nbsp;X.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(d)&nbsp;Notwithstanding anything to the contrary in this Agreement, the termination of this
Agreement under <B>Article&nbsp;VIII, </B>shall not relieve either party from liability for any willful
or negligent failure to perform or observe in any material respect any of its agreements or
covenants contained herein which are to be performed or observed at or prior to Closing. In
the event this Agreement terminates under <B>Article&nbsp;VIII </B>because a party has willfully or
negligently failed to perform or observe in any material respect any of its agreements or
covenants contained herein which are to be performed at or prior to Closing, then the other
party shall be entitled to all remedies available at law or in equity and shall be entitled
to recover court costs and reasonable attorneys&#146; fees in addition to any other relief to
which such party may be entitled.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;11.02 </B><U><B>Indemnification Procedures</B></U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;If indemnification pursuant to <B>Sections&nbsp;11.</B><B>01(a)</B> or <B>11.</B><B>01(b)</B> is sought, the party
seeking indemnification (the &#147;<B>Indemnitee</B>&#148;) shall give written notice to the indemnifying
party of an event giving rise to the obligation to indemnify, describing in reasonable
detail the factual basis for such claim (&#147;<B>Indemnification Claim</B>&#148;), and, provided that the
indemnifying party acknowledges that it is liable for the matters that gave rise to such
Indemnification Claim, shall allow the indemnifying party to assume and conduct the defense
of the claim or action and cooperate with the indemnifying party in the defense thereof,
provided that the omission to give such notice to the indemnifying party shall not relieve
the indemnifying party from any liability which it may have to the Indemnitee, except to the
extent that the Indemnification Claim arises from a third party claim (&#147;<B>Third Party Claim</B>&#148;)
against Indemnitee and the indemnifying party proves it was materially prejudiced by the
failure to give such notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Within fifteen (15)&nbsp;business days (&#147;<B>Response Period</B>&#148;) of receipt of an Indemnification
Claim, the indemnifying party shall notify Indemnitee in writing whether or not it disputes
that it is obligated to indemnify the Indemnitee as set forth in the Indemnification Claim.
Further, if such Third Party Claim is undisputed by the indemnifying party, the indemnifying
party shall have the right, within the Response Period, to assume and conduct the defense of
the Third Party Claim with counsel reasonably satisfactory to the Indemnitee. The
Indemnitee shall have the right to employ separate counsel to represent the Indemnitee if
the Indemnitee is advised by counsel that an actual conflict of interest makes it advisable
for the Indemnitee to be represented by separate counsel and the reasonable expenses and
fees of such separate counsel shall be
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">paid by the indemnifying party. The indemnifying party shall not control (but may
participate at its own expense in the defense of), and the Indemnitee shall be entitled to
have sole control over, the defense or settlement, compromise, admission or acknowledgment
of any Third Party Claim (i)&nbsp;as to which the indemnifying party fails to assume the defense
within the Response Period or (ii)&nbsp;to the extent the Third Party Claim seeks an order,
injunction or other equitable relief against the Indemnitee which, if successful, would
materially adversely affect the business, operations, assets, or financial condition of the
Indemnitee
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(c)&nbsp;The indemnifying party shall obtain the prior written approval of the Indemnitee, which
approval shall not be unreasonably withheld, before making any settlement, compromise,
admission, or acknowledgment of the validity of any Third Party Claim or any liability in
respect thereof if, pursuant to or as a result of such settlement, compromise, admission, or
acknowledgment, injunctive or other equitable relief would be imposed against the Indemnitee
or if, in the opinion of the Indemnitee, such settlement, compromise, admission, or
acknowledgment could have an adverse effect on its business, operations, assets or financial
condition. No indemnifying party shall consent to the entry of any judgment or enter into
any settlement that does not include as an unconditional term thereof the giving by each
claimant or plaintiff to each Indemnitee of a full and unconditional release from all
liability in respect of such Third Party Claim.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;11.03 </B><U><B>Limitations on Indemnity</B></U>. No indemnifying party shall have any obligation to
indemnify an Indemnitee from and against any Indemnified Claim under <B>Section&nbsp;11.01</B>, other than
Indemnified Claims resulting by reason of any fraud, intentional misrepresentation, Excluded Assets
or Excluded Liabilities, unless (i)&nbsp;any individual Indemnified Claim suffered by such Indemnitee is
greater than or equal to Fifty Thousand Dollars ($50,000) in value (the &#147;<B>Individual Indemnification
Deductible&#148;) </B>in which event such Indemnitee may recover with respect to such individual Indemnified
Claim to the extent the value of such Indemnified Claim exceeds the Individual Indemnification
Deductible or (ii)&nbsp;the aggregate value of all Indemnified Claims suffered by such Indemnitee
(without regard to the Individual Deductible) exceeds Five Hundred Thousand Dollars ($500,000) (the
&#147;<B>Aggregate Deductible</B>&#148;) in which event such Indemnitee may recover all Indemnification Claims
incurred in excess of the Aggregate Deductible. In no event shall the aggregate liability of
either Seller or Buyer for any consequential damages arising from or related to this Agreement,
including without limitation any breach of any representation, warranty, covenant or indemnity by
it contained in this Agreement, exceed an amount equal to the Purchase Price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;11.04 </B><U><B>Tax Treatment of Indemnity Payments</B></U>. Seller and Buyer agree to treat any
indemnity payment made pursuant to this Agreement as an adjustment to the Purchase Price for Tax
purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;11.05 </B><U><B>Transfer of Files</B></U>. Seller will use its best efforts to deliver to Buyer,
within ten (10)&nbsp;days after the Closing, all of Seller&#146;s lease files, abstracts, and title opinions,
production records, well files, accounting records (but not including general tax and general
financial accounting records), seismic records and surveys, gravity maps, electric logs, and
geological or geophysical data and records, which relate solely and exclusively to the Properties.
Seller may retain copies of any files delivered to Buyer.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;XII.</B></U><BR>
<U><B>Casualty Loss</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;12.01 </B><U><B>Casualty Loss</B></U>. In the event of damage by fire or other casualty to the
Properties after the Effective Date and prior to the Closing, this Agreement shall remain in full
force and effect, the Purchase Price will not be adjusted (except as provided in <B>Article&nbsp;X</B>), Buyer
shall take title to the Property affected by such loss, and Seller shall assign to Buyer any
insurance claims related to such damage or other casualty.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>Article&nbsp;XIII.</B></U><BR>
<U><B>Notices</B></U>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;13.01 </B><U><B>Notices</B></U>. All notices and other communications required under this Agreement
shall (unless otherwise specifically provided herein) be in writing and be delivered personally, by
recognized commercial courier or delivery service (which provides a receipt), by facsimile (with
receipt acknowledged), by registered or certified mail (postage prepaid), or by electronic
communications, at the following addresses:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u>If to Seller</u>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J. Cleo Thompson &#038; James Cleo Thompson, Jr., L.P.</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">325 N. St. Paul, Suite&nbsp;4300</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dallas, Texas 75201</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Cliff Milford</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.: (214)&nbsp;969-7433</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email: cmilford@jcleo.com</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u>With a copy to</u>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Carrington, Coleman, Sloman, and Blumenthal, LLP</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">901 Main Street, Suite&nbsp;5500</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dallas, Texas 75202</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: David Drumm</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.: (214)&nbsp;758-3732</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email: ddrumm@ccsb.com</TD>
</TR>
<TR>    <TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wes-Tex Drilling Company, L.P.</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">400 Pine St., Suite&nbsp;700</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Abilene, TX 79601</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: David Morris</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.: (325)&nbsp;677-5140</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email:davidmorris@wes-texdrillingcompany.com</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U>If to Buyer</U>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Approach Oil &#038; Gas Inc.</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">One Ridgmar Centre</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6500 West Freeway, Suite&nbsp;800</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fort Worth, Texas 76116</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Curtis Henderson</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.: 817-989-9001</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email: chenderson@approachresources.com</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U>With a copy to</U>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Thompson &#038; Knight LLP</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1722 Routh Street, Suite&nbsp;1500</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dallas, Texas 75201</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Debra Villarreal</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.: 214-880-3167</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
 <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email: debra.villarreal@tklaw.com</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All notices given by personal delivery or mail shall be effective on the date of actual receipt at
the appropriate address as provided above. Notices given by facsimile, if receipt is confirmed by
the transmitting device, shall be effective upon actual receipt if received during recipient&#146;s
normal business hours or at the beginning of the next business day after receipt if received after
recipient&#146;s normal business hours. Notices and other communications sent to an e-mail address
shall be deemed received upon the sender&#146;s receipt of an acknowledgment from the intended recipient
(such as by the &#147;return receipt requested&#148; function, as available, return e-mail or other written
acknowledgment), <U>provided</U> that if such notice or other communication is not sent during the
normal business hours of the recipient, such notice or communication shall be deemed to have been
sent at the opening of business on the next business day for the recipient. Either Buyer or Seller
may specify as its proper address any other post office address within the continental limits of
the United States by giving notice to the other party, in the manner provided in this Article, at
least ten (10)&nbsp;days prior to the effective date of such change of address.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;XIV.</B></U><BR>
<U><B>Commissions</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;14.01 </B><U><B>Commissions</B></U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;Seller agrees to indemnify and hold harmless Buyer from and against any and all claims,
obligations, actions, liabilities, losses, damages, costs or expenses (including court costs
and attorneys fees) of any kind or character arising out of or resulting from any agreement,
arrangement or understanding alleged to have been made by, or on behalf of, Seller with any
broker or finder in connection with this Agreement or the transaction contemplated hereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;Buyer agrees to indemnify and hold harmless Seller from and against any and all claims,
obligations, actions, liabilities, losses, damages, costs or expenses (including court costs
and attorneys fees) of any kind or character arising out of or resulting from any agreement,
arrangement or understanding alleged to have been made by, or on behalf of, Buyer with any
broker or finder in connection with this Agreement or the transaction contemplated hereby.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Article&nbsp;XV.</B></U><BR>
<U><B>Miscellaneous Matters</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.01 </B><U><B>Survival of Provisions</B></U>. All representations and warranties of Seller or
Buyer contained in this Agreement or in any certificate delivered at the Closing shall survive the
Closing until the first anniversary of the Closing Date (the <B>&#147;Survival Period</B>&#148;). All covenants of
Seller or Buyer contained in this Agreement shall survive the Closing, except for any covenant
which by its terms terminates as of a specific date, or is only made for a specified period. Any
claim for indemnification with respect to any representations and warranties of Seller or Buyer
contained in this Agreement or any certificate delivered at the Closing must be made prior to the
expiration of the Survival Period. Notwithstanding the foregoing, the obligation of each party
hereto to indemnify any other party hereto with respect to such representations and warranties
shall continue after the expiration of the Survival Period, with respect to any matter of which the
party seeking indemnity hereunder shall have given the other party written notice as provided
herein prior to the expiration of the Survival Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.02 </B><U><B>Further Assurances</B></U>. This transaction constitutes an assignment of the
Seller&#146;s interests in Oil and Gas Properties and all related property. Seller intended to convey
each property described in <B>Exhibit&nbsp;A </B>even though Seller&#146;s interest in such oil, gas and other
minerals may be incorrectly described in, or omitted from, such <B>Exhibit&nbsp;A</B>. In order to effectuate
and provide Buyer with the benefits of the transactions contemplated hereby, after the Closing,
Seller shall execute and deliver, and shall otherwise cause to be executed and delivered, from time
to time, such further instruments, notices, division orders, transfer orders and other documents,
and do such other and further acts and things, as may be reasonably necessary to more fully and
effectively grant, convey and assign the Properties to Buyer including, solely at Buyer&#146;s request,
the conveyance of agreements or contracts of type set forth in <B>Section&nbsp;2.01(d)</B>. Any additional
properties conveyed pursuant to this <B>Section&nbsp;15.02 </B>shall be deemed to be a Property for all
purposes of this Agreement, including the indemnification, representation and warranty provisions
contained herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.03 </B><U><B>Binding Effect; Successors and Assigns</B></U>. The Agreement shall be binding on
the parties hereto and their respective successors and permitted assigns. Neither party shall have
the right to assign its rights or obligations under this Agreement, without the prior written
consent of the other party first having been obtained.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.04 </B><U><B>Like-Kind Exchange</B></U>. The Seller may structure all or a portion of the
transaction contemplated in this Agreement relating to the Properties sold to the Buyer, as a
like-kind exchange under Section&nbsp;1031 of the Code in accordance with this <B>Section&nbsp;15.04 </B>(Seller, if
it so elects, herein called the &#147;<B>Electing Party</B>&#148;). Such transfer shall be effectuated by mutually
acceptable instruments, including without limitation, an exchange agreement and related assignments
and consents to assignment. If Electing Party elects to structure the transaction as a like-kind
exchange, the Electing Party shall substitute a third party, qualified intermediary (the
&#147;<B>Intermediary</B>&#148;) as the Seller of all or a portion of the Properties. The Intermediary shall be
designated in writing by the Electing Party prior to Closing. The Electing Party is and shall
remain primarily liable for the full and timely performance of each and every one of the
representations, warranties, indemnities, obligations, and undertakings ascribed to the Electing
Party under this Agreement, notwithstanding its substitution of the Intermediary, and in the event
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of a breach by either Buyer, Seller, or the Intermediary, then Buyer or Seller may proceed directly
against the other without the need to join the Intermediary as a party to any action. Neither
party represents to the other party that any particular tax treatment will be given to the other
party as a result of the Electing Party&#146;s election to structure the transaction as a like-kind
exchange. Buyer shall not incur any additional costs expenses, fees, or liabilities as a result of
or connected with expenses incurred in connection with the exercise of the rights under this
<B>Section&nbsp;15.04</B>. THE ELECTING PARTY SHALL PROTECT, INDEMNIFY, AND HOLD HARMLESS BUYER FROM ANY
LIABILITY, DAMAGES, OR COSTS, INCLUDING REASONABLE ATTORNEYS&#146; FEES, COURT COSTS, AND RELATED
EXPENSES, THAT MAY ARISE IN CONNECTION WITH ITS SECTION 1031 EXCHANGE UNDER THIS SECTION.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.05 </B><U><B>Imbalances</B></U>. On the date of Closing (and, upon the delivery to Buyer of the
Conveyances), Buyer shall succeed to the position of Seller with respect to all gas imbalances. As
a result of such succession Buyer shall (i)&nbsp;be entitled to receive any and all benefits, including
payments of proceeds of production in excess of amounts which it would otherwise be entitled to
produce and receive by virtue of ownership of the Oil and Gas Properties, which Seller would have
been entitled to receive by virtue of such positions and (ii)&nbsp;shall be obligated to suffer any
detriments (whether the same be in the form of obligations to deliver production which would have
otherwise been attributable to its ownership of the Oil and Gas Properties without receiving full
payment therefore, or be in the form of the obligation to make payment in cash) which Seller would
have been obligated to suffer by virtue of such positions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.06 </B><U><B>Expenses</B></U>. Except as otherwise expressly provided in this Agreement, each
party shall bear and pay all expenses incurred by it in connection with the transaction
contemplated by this Agreement. Buyer shall be responsible for all Conveyance and lien release
recording fees and related costs and expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.07 </B><U><B>Entire Agreement &#151; Time of the Essence</B></U>. This Agreement contains the entire
understanding of the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements, understandings, negotiations, and discussions among the parties with respect to
such subject matter. Time is of the essence in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.08 </B><U><B>Public Statements</B></U>. Either party may make any public disclosure regarding the
existence of this Agreement it believes in good faith is required by applicable law, by the rules
and regulations of the Securities and Exchange Commission or by the rules of any national
securities exchange; provided that, before any Seller discloses any of the foregoing as may be
required by applicable laws, such person shall give Buyer sufficient advance notice to provide
Buyer an opportunity to take action to minimize the required disclosure. This provision shall not
be construed so as to limit either party&#146;s disclosures of or about this Agreement to regulatory
authorities or to other parties as may otherwise be required by law, when in the opinion of the
party&#146;s counsel such disclosure is so required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.09 </B><U><B>Injunctive Relief</B></U>. The parties hereto acknowledge and agree that irreparable
damage would occur in the event any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions of
this Agreement, and shall be entitled to enforce specifically the provisions of this Agreement,
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in any court of the United States or any state thereof having jurisdiction, in addition to any
other remedy to which the parties may be entitled under this Agreement or at law or in equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.10 </B><U><B>Amendments</B></U>. This Agreement may be amended, modified, supplemented, restated
or discharged (and provisions hereof may be waived) only by an instrument in writing signed by the
party against whom enforcement of the amendment, modification, supplement, restatement or discharge
(or waiver) is sought.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.11 </B><U><B>Governing Law and Venue</B></U>. This Agreement shall be governed by and construed
in accordance with the internal Laws of the State of Texas applicable to a contract executed and
performed in such State, without giving effect to conflicts of laws principles requiring the
application of the Laws of another State. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION,
SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. Each of the parties hereby (a)
irrevocably submits to the exclusive jurisdiction of the state and federal courts of Dallas County,
Texas, for the purposes of any suit, action or proceeding arising out of or relating to this
Agreement, and (b)&nbsp;waives, and agrees not to assert in any such suit, action or proceeding, any
claim that (i)&nbsp;it is not personally subject to the jurisdiction of such court or of any other court
to which proceedings in such court may be appealed; (ii)&nbsp;such suit, action or proceeding is brought
in an inconvenient forum; or (iii)&nbsp;the venue of such suit, action or proceeding is improper.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.12 </B><U><B>Multiple Counterparts; Fax</B></U>. This instrument may be executed in a number of
identical counterparts, each of which for all purposes is to be deemed an original, and all of
which constitute collectively, one instrument. It is not necessary that each party hereto execute
the same counterpart so long as identical counterparts are executed by each such party hereto.
This instrument may be validly executed and delivered by facsimile or other electronic
transmission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.13 </B><U><B>Confidentiality</B></U>. Provided the Closing has occurred Seller shall keep all
information related to the Properties in strict confidence and shall not disclose such information
to any person, except (i)&nbsp;to its accountants, attorneys, and other representatives, (ii)&nbsp;as
required by law or legal process or in connection with any legal proceeding, (iii)&nbsp;for information
that was or becomes generally publicly available other than as a result of a disclosure by Seller
in violation of this Agreement, (iv)&nbsp;for information that becomes available to Seller on a
nonconfidential basis from a third party that to Seller&#146;s knowledge, is not bound by a similar duty
of confidentiality (contractual, legal, fiduciary, or other), and (v)&nbsp;for press releases permitted
under <B>Section&nbsp;15.08</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;15.14 </B><U><B>No Waiver</B></U>. The failure of either party to insist upon strict performance of
any provision hereof shall not constitute a waiver of, or estoppel against asserting, the right to
require such performance in the future, nor shall a waiver or estoppel in any one instance
constitute a waiver or estoppel with respect to a later breach of a similar nature or otherwise.
</DIV>







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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>IN WITNESS WHEREOF, </B>this Agreement is executed by the parties hereto on the date set forth above.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>SELLER:<BR>
<BR>
<BR>
J. CLEO THOMPSON &#038; JAMES CLEO THOMPSON, JR., L.P.</B><BR>
<BR>

By: J. Cleo Thompson Petroleum Management LLC, its<BR>
General Partner<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Cliff Milford&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Cliff Milford&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>WES-TEX DRILLING COMPANY, L.P.</B><BR>
<BR>

By: WES-TEX Holdings, LLC, its General Partner<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
David Morris&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David Morris&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>BUYER:<BR>
<BR>

APPROACH OIL &#038; GAS INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
J. Ross Craft&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">J. Ross Craft&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President &#038; CEO&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">SIGNATURE PAGE TO PSA</DIV>

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