Preview | Credit and Guaranty Agreement |

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SECTION 1 DEFINITIONS AND INTERPRETATION			1
1.1 Definitions			1
1.2 Accounting Terms			24
1.3 Interpretation, etc			24
1.4 Joint Preparation; Construction of Indemnities and Releases			24

SECTION 2 LOANS			24
2.1 Loans			24
2.2 Borrowing Mechanics			25
2.3 Pro Rata Shares; Availability of Funds			25
2.4 Use of Proceeds			26
2.5 Evidence of Liabilities; Register; Lenders Books and Records; Notes			26
2.6 Interest on Loans			27
2.7 [Reserved]			27
2.8 Default Interest			27
2.9 Fees			27
2.10 ANCF Calculation			27
2.11 ANCF Payment of Principal			28
2.12 Voluntary Prepayments			28
2.13 Mandatory Prepayments			30
2.14 General Provisions Regarding Payments			30
2.15 Ratable Sharing			31
2.16 Increased Costs; Capital Adequacy			31
2.17 Taxes; Withholding, etc			33
2.18 Measures to Mitigate			34

SECTION 3 CONDITIONS PRECEDENT			35
3.1 Closing Date			35
3.2 Conditions to Each Credit Extension			39

SECTION 4 REPRESENTATIONS AND WARRANTIES			39
4.1 No Default			40
4.2 Organization and Good Standing			40
4.3 Authorization			40
4.4 No Conflicts or Consents			40
4.5 Enforceable Obligations			40
4.6 Current Financial Statements			40
4.7 Other Obligations and Restrictions			41
4.8 Full Disclosure			41
4.9 Litigation			41
4.10 Labor Disputes and Acts of God			41
4.11 ERISA Plans and Liabilities			41
4.12 Environmental and Other Laws			42

4.13 Names and Places of Business			42
4.14 Subsidiaries			43
4.15 Licenses			43
4.16 Government Regulation			43
4.17 Solvency			43
4.18 Taxes			43
4.19 Projections			43
4.20 No Distributions			44
4.21 Title to Properties			44
4.22 No Defaults			44
4.23 Margin Stock			44
4.24 Certain Fees			44
4.25 Leases and Contracts; Performance of Obligations			44
4.26 Marketing Arrangements			45
4.27 Right to Receive Payment for Future Production			45
4.28 Operation of Oil and Gas Properties			46
4.29 Ad Valorem and Severance Taxes; Litigation			46
4.30 Acquisition Closing			46

SECTION 5 AFFIRMATIVE COVENANTS			47
5.1 Payment and Performance			47
5.2 Books, Financial Statements and Reports			47
5.3 Other Information and Inspections			49
5.4 Notice of Material Events and Change of Name			50
5.5 Maintenance of Properties and Professional Staff			51
5.6 Maintenance of Existence and Qualifications			51
5.7 Payment of Taxes, etc			51
5.8 Bonding and Insurance			51
5.9 Performance on Companys Behalf			53
5.10 Interest			53
5.11 Compliance with Agreements and Law			53
5.12 Environmental Matters: Environmental Reviews			53
5.13 Evidence of Compliance			54
5.14 Agreement to Deliver Guaranty and Security Documents			54
5.15 Perfection and Protection of Security Interests and Liens			55
5.16 Bank Accounts; Offset			55
5.17 Production Proceeds			55
5.18 Approved Plan of Development; Texas Project Area			56
5.19 Reviews			56
5.20 Hedging Contracts

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