MAGNUM HUNTER RESOURCES INC
GCE CONTRACT
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>f10q-0904ex1014a.htm
<DESCRIPTION>GCE CONTRACT
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EMPLOYMENT AGREEMENT </U></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Employment Agreement (the &#147;Agreement&#148;) is made and entered into as of the
1<SUP>st</SUP> day of January, 2000 (the &#147;Effective Date&#148;), by and between
Magnum Hunter Resources, Inc., a Nevada corporation (&#147;Magnum Hunter&#148;) and its
affiliates, Gruy Petroleum Management Co., a Texas Corporation and a wholly-owned
subsidiary of Magnum Hunter, (collectively, the &#147;Employer&#148;) and Gary C. Evans
(&#147;Employee&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Board of Directors of the Employer (the &#147;Board&#148;) recognizes that it is
important to attract, hire and retain key officers and management personnel; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Board also recognizes that, in the event of a Change in Control (as hereinafter
defined), significant distractions of its key management and operations personnel can
result because of the uncertainties inherent in such a situation; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Board has determined that it is essential and in the best interest of the Employer and
its stockholders to retain officers and key employees in the event of a threat or
occurrence of Change in Control and to ensure their continued dedication and efforts in
such event without undue concern for their personal, financial and employment security;
and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
in order to induce qualified candidates to accept employment with the Employer and to
remain in the employ of the Employer in the event of a threat or the occurrence of a
Change in Control, the Employer desires to enter into this Agreement with the Employee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW
THEREFORE, for and in consideration of the mutual covenants and agreements contained
herein and for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows: </FONT></P>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Employment</U>. Employer hereby employs Employee and Employee hereby accepts
                    employment with Employer upon the terms and conditions hereinafter set forth. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Duties</U>. Employee shall serve the Employer as President and Chief
                    Executive Officer of the Employer with such responsibilities as shall be
                    determined from time to time by the Board; provided, however, that all duties
                    assigned to Employee hereunder shall be commensurate with the skill and
                    experience of Employee. Employee agrees to devote all of his professional time,
                    attention, skills, benefits and best efforts to the performance of his duties
                    hereunder and to the promotion of the business and interests of Employer. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Term</U>. This Agreement shall become effective on the Effective Date, and
                    shall continue, unless earlier terminated in accordance with the terms of this
                    Agreement, for a period of six (6) years commencing on the Effective Date. This
                    Agreement shall thereafter be automatically renewed for a period of one year,
                    unless earlier terminated as provided herein, and unless one party has given
                    written notice to the other party of its or his intention not to renew this
                    Agreement at least thirty (30) days prior to the expiration of its then current
                    term (the &#147;Term&#148;). </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Compensation</U>. As compensation for his services rendered under this
                    Agreement, Employee shall be entitled to receive the following: </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Base Salary</U>. During the Term, Employee shall initially be paid an annual
                    salary of Three Hundred Thousand and No/100 Dollars ($300,000.00) per annum (the
                    &#147;Base Salary&#148;) payable in equal payments twice a month for a total of
                    twenty-four (24) payments per year. The Base Salary may be increased or
                    decreased as the Board may determine from time to time; </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Expenses</U>. Employer shall reimburse Employee for all reasonable and
                    necessary out-of-pocket travel and other expenses incurred by Employee in
                    rendering services required under the terms of this Agreement, promptly after
                    submission, on a monthly basis, of a detailed statement of such expenses and
                    reasonable documentation. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Bonus</U>. Expressly conditioned on the Employee being employed on the last
                    day of the fiscal year of the Employer, the Employee may receive a bonus in an
                    amount determined solely by the unanimous approval of the compensation committee
                    of Employer and the Board, in their sole discretion. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Benefits</U>. During the Term, Employee shall be entitled to receive such
                    group benefits as Employer may provide to its other employees at comparable
                    salaries and responsibilities to those of Employee. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Automobile</U>. During the Term, Employee shall have use of a company
                    automobile, the make and model of which shall be mutually agreed upon between
                    the parties. The Employer shall pay all expenses associated with the automobile,
                    including maintenance, insurance and fuel costs. Employee may request a newer
                    vintage of automobile no more than once every twenty-four (24) months. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Entertainment Allowance</U>. Employer shall reimburse Employee for all
                    reasonable entertainment expenses incurred by Employee in connection with
                    developing the business of Employer, and in no event, more than ten (10)
                    business days after submission on a monthly basis of a detailed statement of
                    such expenses and reasonable documentation. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Key Man Life Insurance</U>. Employer shall purchase Key Man Life Insurance
                    on Employee&#146;s life, in the face amount of Twelve Million and no/100 Dollars
                    ($12,000,000.00). The beneficiaries of such policy shall be as follows: Six
                    Million and no/100 Dollars ($6,000,000.00) is to be paid to Employee&#146;s
                    estate or as otherwise designated by Employee, and the remaining Six Million and
                    no/100 Dollars ($6,000,000.00) shall be paid to Employer. The money paid to
                    Employer from such policy shall be used to purchase a significant portion of the
                    shares of stock of Employer which were owned by Employee prior to his death, if
                    the estate of Employee desires to sell such shares of stock. </FONT></TD>
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Except
as provided in Section 7, the compensation set forth in this Section 4 will be the sole
compensation payable to Employee and no additional compensation or fee will be payable by
Employer to Employee by reason of any benefit gained by the Employer directly or
indirectly through Employee&#146;s efforts on Employer&#146;s behalf, nor shall Employer
be liable in any way for any additional compensation or fee unless Employer shall have
expressly agreed thereto in writing. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                      <U>Confidentiality; Covenants Not-To-Compete</U>.  </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Acknowledgment of Proprietary Interest</U>. Employee acknowledges and agrees
                    that he has had access to proprietary information and also recognizes the sole
                    proprietary interest of Employer in any Trade Secrets (as hereinafter defined)
                    of Employer. Employee further acknowledges and agrees that any and all Trade
                    Secrets of Employer, learned by Employee during the course of his employment by
                    Employer or otherwise, whether developed by Employee alone or in conjunction
                    with others or otherwise, is and shall be the property of Employer. Employee
                    further acknowledges and understands that his disclosure of any Trade Secrets of
                    Employer will result in irreparable injury and damage to Employer. As used
                    herein, &#147;Trade Secrets&#148; means all non-public confidential and
                    proprietary information of Employer whether embodied in writing, a computer
                    disk, video or magnetic tape, CD-Rom or in other form, relating to the business,
                    operations or affairs of Employer and, any other confidential information that
                    Employee may then possess or have under Employee&#146;s control, including,
                    without limitation, information derived from reports, investigations,
                    experiments, research, work in progress, drawings, designs, plans, proposals,
                    codes, marketing and sales programs, client lists, mailing lists, financial
                    projections, any information regarding Employer&#146;s oil and gas properties,
                    maps, plats, surveys, geophysical and geological data, cost summaries, pricing
                    formula, reports, studies, well logs, production data, land and title records,
                    leases and all other materials, or information prepared, compiled, evaluated,
                    interpreted or performed, for or by Employer. &#147;Trade Secrets&#148; also
                    includes confidential information related to the business, products or sales of
                    Employer or Employer&#146;s customers or other business relationships. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Covenants Not-To-Divulge Trade Secrets</U>. Employee acknowledges and agrees
                    that Employer is entitled to prevent the disclosure of Trade Secrets of
                    Employer. As a portion of the consideration for the employment of Employee and
                    for the compensation being paid to Employee by Employer, Employee agrees at all
                    times during the term of this Agreement and for three (3) years thereafter to
                    hold in strictest confidence and not to disclose or allow to be disclosed to any
                    person, firm, or corporation, other than to persons engaged by Employer to
                    further the business of Employer, Trade Secrets of Employer, without the prior
                    written consent of Employer, including Trade Secrets developed by Employee.
                    Notwithstanding the foregoing, Employee shall not be obligated to keep secret
                    and not to disclose or allow to be disclosed knowledge or information (a) which
                    has become generally known to the public through no wrongful act of Employee;
                    (b) which has been rightfully received by Employee from a third party which to
                    Employee&#146;s knowledge was received without </FONT></TD>
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restriction
on disclosure and not in violation of any confidentiality obligation of said third party;
(c) which has been approved for release without restriction as to use or disclosure by
written authorization of Employer; or (d) which has been disclosed pursuant to a
requirement of a governmental agency or of law without similar restrictions or other
protections against public disclosure, or which disclosure is required by operation of
law. Without limiting the generality of the foregoing, Employee agrees to affirmatively
take such precautions as Employer may reasonably request or Employee reasonably believes
are appropriate to prevent the disclosure, copying or use of any of the computer software
programs, data bases or other such information now existing or hereafter developed to any
person or for any purpose not specifically authorized by Employer. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Abide by Third Party Confidentiality Agreements</U>. Employee acknowledges
                    that Employer enters into confidentiality agreements with third parties. Without
                    limiting the generality of the foregoing, Employee agrees to abide by the terms
                    and conditions of such confidentiality agreements during the term of this
                    Agreement for a period beginning on the Effective Date and ending three (3)
                    years following the Employee&#146;s termination of employment with the Employer
                    for any reason. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Return of Materials at Termination</U>. In the event of any termination of
                    this Agreement for any reason whatsoever, Employee will promptly deliver to
                    Employer all documents, data and other information pertaining to Trade Secrets.
                    Employee shall not take any documents or other information, or any reproduction
                    or excerpt thereof, containing or pertaining to any Trade Secrets. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Competition During the Term of this Agreement</U>. From the period beginning
                    on the Effective Date and ending two (2) years following the Employee&#146;s
                    voluntary termination of employment with the Employer: </FONT></TD>
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               <TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Employee shall not, directly or indirectly, either for himself or any other
               person, engage or invest in, own, manage, operate, finance, control or
               participate in the ownership, management, operation, financing or control of, or
               be employed by, associated with, or in any manner connected with, lend
               Employee&#146;s credit to, or render services or advice to, any business whose
               products or activities compete in whole or in part with the oil and gas
               exploration and production activities or the Employer in the southwestern and
               southeastern portions of the United States and the Gulf of Mexico (including any
               offshore activities) and any other business which Employer is involved in or
               pursuing in the regions in which Employer is conducting such activities at the
               time of Employee&#146;s termination; provided, however, that (aa) this Section
               5(e) shall not prohibit Employee from purchasing or holding an equity interest
               of any class of securities of any enterprise (but without otherwise
               participating in the activities of such enterprise) whether or not such
               securities are listed on any national or regional securities exchanges or have
               been registered under Section 12(g) of the Securities Exchange Act of 1934, as
               amended (the &#147;Exchange Act&#148;), and (bb) this Section 5(e) shall not
               prohibit Employee from engaging in any such activities unless such Employee is
               using Employer&#146;s Trade Secrets in connection therewith. </FONT></P></TD>
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               <TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Employee shall not, directly or indirectly, either for himself or any other
               person (A) solicit, induce, recruit, or attempt to solicit, induce or recruit
               any employee of the Employer or to leave the employ of the Employer, (B) in any
               way interfere with the relationship between the Employer and any employee
               thereof, (C) employ, or otherwise engage as an employee, independent contractor
               or otherwise, any employee of the Employer or (D) induce or attempt to induce
               any customer, representative, supplier, licensee or business relation of the
               Employer to cease doing business with the Employer, or in any way interfere with
               the relationship between any customer, representative, supplier, licensee or
               business relation of the Employer. </FONT></P></TD>
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               Employee shall not, directly or indirectly, either for himself or any other
               person, do business with or solicit the business of any person known to Employee
               to be a customer of, or potential customer of, the Employer, whether or not the
               Employee had personal contact with such person, with respect to products,
               services or other business activities which compete in whole or in part with the
               products, services or other business activities of the Employer. </FONT></P></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Tolling of Statute of Limitations</U>. In the event of a breach by Employee
                    of any covenant set forth in Section 5 above, the term of such covenants shall
                    be extended by the period of the duration of such breach. </FONT></TD>
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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Reasonableness of Terms</U>. The time, scope, geographic area and other
                    provisions hereof are reasonable and are necessary under the circumstances to
                    protect the Employer and to enable the Employer to receive the benefit of this
                    bargain under this Agreement. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(h) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Reformation</U>. If a court of competent jurisdiction determines that the
                    limitations as to time, geographical area or scope of activity to be restrained
                    contained herein are not reasonable and impose a greater restraint than is
                    necessary to protect the goodwill or other business interest of the Employer,
                    then the parties agree that such court should (and Employee will request such
                    court to) reform this Agreement to the extent necessary to cause the limitations
                    contained herein as to time, geographical area and scope of activity to be
                    restrained to be reasonable and to impose a restraint that is not greater than
                    necessary to protect the goodwill or other business interests of the Employer
                    and such court then shall enforce this Agreement as reformed. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Prohibition of Disparaging Remarks</U>. Employee shall, during the term of
                    this Agreement, refrain from making disparaging, negative or other similar
                    remarks concerning Employer, any of its subsidiaries or other affiliated
                    companies, to any third party that causes substantial harm to Employer, except
                    to the extent that Employee is required to make such remarks (a) by applicable
                    law or regulation or judicial or regulatory process or (b) in or in connection
                    with any pending or threatened litigation relating to this Agreement or any
                    transaction contemplated hereby or thereby. Similarly, Employer shall, during
                    the term of this Agreement, refrain from making disparaging, negative or other
                    similar remarks concerning Employee to any third party except to the extent that
                    Employer is required to make such remarks (a) by applicable law or regulation or
                    judicial or regulatory process or (b) in or in </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>


<PAGE>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
connection
with any pending or threatened litigation relating to this Agreement or any transaction
contemplated hereby or thereby. In view of the difficulty of determining the amount of
damages that may result to the parties hereto from the breach of the provision of this
Section 6, it is the intent of the parties hereto that, in addition to monetary damages,
any non-breaching party shall have the right to prevent any such breach in equity or
otherwise, including without limitation prevention by means of injunctive relief. </FONT></TD>
</TR>
</TABLE>
<BR>



           <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                   <U>Termination Events.</U>
                     </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>


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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     This Agreement and the employment relationship created hereby shall terminate
                    upon the occurrence of any of the following events: </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The expiration of the Term or any renewal period as set forth in Section 3
          above, provided that either Employee or Employer has given at least thirty (30)
          days prior written notice to the other party of such party&#146;s intention not
          to renew; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The death of Employee; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The &#147;Disability&#148; (as hereinafter defined) of Employee; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Written notice from Employer to Employee of termination for &#147;Just
          Cause&#148; (as hereinafter defined); or </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Thirty (30) days written notice by Employee to Employer for &#147;Good
          Reason&#148; (as hereinafter defined) provided that the event constituting Good
          Reason occurs within three (3) years of a &#147;Change in Control&#148; (as
          hereinafter defined). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

 <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                   <U>Definitions.</U></FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>


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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     For purposes of Section 7(a)(iii) above, the &#147;Disability&#148; of Employee
                    shall mean a physical or mental infirmity which impairs the Employee&#146;s
                    ability to substantially perform his duties under this Agreement for a period of
                    120 consecutive days or for 120 days out of any 150 consecutive day period. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     For purposes of Section 7(a)(iv) above, &#147;Just Cause&#148; shall mean: </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           the failure of Employee to diligently or effectively perform his duties under
          this Agreement; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           If Employee has been accused of sexually-harassing another individual and such
          accusation is either confirmed by Employer upon its own investigation or
          confirmed by a finding of a court of competent jurisdiction or the EEOC; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>


<PAGE>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           the commission by Employee of any act involving moral turpitude or the
          commission by Employee of any act or the suffering by Employee of any occurrence
          or state of facts which renders Employee incapable of performing his duties
          under this Agreement, or adversely affects or could reasonably be expected to
          adversely affect Employer&#146;s business reputation; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           any breach by Employee of any of the material terms of, or the failure to
          perform any material covenant contained in, this Agreement; or </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           the violation by Employee of material instructions or material policies
          established by Employer with respect to the operation of its business and
          affairs or Employee&#146;s failure, in a material respect, to carry out the
          reasonable instructions of the Board of Employer; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
provided,
however, that no termination of Employee&#146;s employment shall be for Just Cause under
Section 7(a)(iv) until there shall have been delivered to the Employee a copy of a written
notice setting forth that the Employee was guilty of the particular conduct and specifying
the particulars thereof in detail, and the Employee shall have been provided an
opportunity to be heard by the entire Board. </FONT></TD>
</TR>
</TABLE>
<BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     For purposes of Section 7(a)(v) above, the term &#147;Good Reason&#148; shall
                    mean the occurrence of any of the events or conditions described in items (1)
                    through (7) below within three (3) years after a Change in Control has occurred: </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A substantial adverse change in the Employee&#146;s status, position or
          responsibilities (including reporting responsibilities) which represents an
          adverse change from his status, position or responsibilities as in effect
          immediately prior thereto; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Any reduction in the Employee&#146;s Base Salary; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The Employer&#146;s requiring the Employee to be based at any place outside
          fifty (50) miles from Irving, Texas, except for reasonably required travel in
          connection with the Employer&#146;s business which is not greater than such
          travel requirements prior to the Change in Control; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The insolvency of Employer or the filing (by any party, including the Employer)
          of a petition for the bankruptcy of the Employer; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Any material breach by the Employer of any provision of this Agreement; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Any purported termination of the Employee&#146;s employment for Just Cause by
          the Employer which does not comply with the terms of Section 7(a)(iv) or Section
          7(b)(ii); or </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>


<PAGE>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The failure of the Employer to obtain an agreement, satisfactory to the
          Employee, from any successor or assignee of the Employer to assume and agree to
          perform this Agreement, as contemplated in Sections 2, 3, 7 and 8 hereof. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     For purposes of Section 7(a)(v) above, the term &#147;Change in Control&#148;
                    of the Employer shall mean if any of the following events have occurred: </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           An acquisition of any voting securities of the Employer (the &#147;Voting
          Securities&#148;) by a &#147;Person&#148; (as that term is used for the purposes
          of Section 13(d) of the Exchange Act) immediately after which such person has
          &#147;Beneficial Ownership&#148; (within the meaning of Rule 13d-3 promulgated
          under the Exchange Act) of one hundred percent (100%) or more of the combined
          voting power of the Employer&#146;s then outstanding Voting Securities; or </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The following events have occurred during a one (1) year period: </FONT></TD>
          </TR>
          </TABLE>
          <BR>


 <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
         The Chief Executive Officer changes for any reason; and
           </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           An acquisition of any voting securities of the Employer (the &#147;Voting
          Securities&#148;) by a &#147;Person&#148; (as that term is used for the purposes
          of Section 13(d) of the Exchange Act) immediately after which such person has
          &#147;Beneficial Ownership&#148; (within the meaning of Rule 13d-3 promulgated
          under the Exchange Act) of forty percent (40%) or more of the combined voting
          power of the Employer&#146;s then outstanding Voting Securities; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The individuals who, as of January 1, 2000, and each January 1 thereafter are
          members of the Board (the &#147;Incumbent Board&#148;) cease to constitute at
          least fifty-one percent (51%) of the members of the Board. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                  <U>Termination Payments</U>.
                     </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>


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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     In the event of the termination of Employee&#146;s employment for any reason
                    specified in Section 7 (other than the reasons set forth in Sections 7(a)(iii)
                    or Section (a)(v)), Employee shall be entitled only to the compensation earned
                    by him as of the effective date of termination, including any declared but
                    unpaid, bonus or pro-rata portion thereof. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     In the event of the termination of Employee&#146;s employment as the result of
                    Section 7(a)(iii), Employee shall be entitled to compensation for the remaining
                    term of the Agreement until the disability insurance company begins making
                    payments to the Employee. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     In the event of the termination of the Employee&#146;s employment for the
                    reason specified in Section 7(a)(v), Employee shall be entitled to receive,
                    immediately in one lump sum, three (3) times the sum of the following: (i) the
                    current Base Salary, plus (ii) </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>


<PAGE>



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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
annualized
bonus from the previous year, plus (iii) the value of the automobile benefits outlined in
this Agreement for the current year. </FONT></TD>
</TR>
</TABLE>
<BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     In addition, any medical, dental and group life insurance covering the Employee
                    and his dependents shall continue until the earlier of (i) twelve (12) months
                    after the Change in Control or (ii) the date the Employee becomes a participant
                    in the group insurance benefit program of a new employer, with the understanding
                    that the Employer shall pay for such benefits for the Employee, and the Employee
                    shall pay for that portion of the premiums related to the coverage for
                    Employee&#146;s dependents. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     If the Employee pays or becomes obligated to pay any excise tax under Section
                    4999 of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) on
                    any payment or benefit he receives (whether pursuant to this Agreement or
                    otherwise) in connection with the event giving rise to his right to receive
                    payments and benefits under Section 8(c) of this Agreement, the Employer shall
                    pay to the Employee an amount equal to the total excise tax paid or payable. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Remedies</U>. Each party recognizes and acknowledges that in the event of
                    any default in, or breach of any of, the terms, conditions and provisions of
                    this Agreement (either actual or threatened) by the other party, then the
                    non-defaulting party&#146;s remedies at law shall be inadequate. Accordingly,
                    each party agrees that in such event, the non-defaulting party shall have the
                    right of specific performance and/or injunctive relief in addition to any and
                    all other remedies and rights at law or in equity, and such rights and remedies
                    shall be cumulative. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Acknowledgments</U>. Employee acknowledges and recognizes that the
                    enforcement of any of the non-competition provisions set forth in Section 5
                    above by Employer will not interfere with Employee&#146;s ability to pursue a
                    proper livelihood. Employee further represents that he is capable of pursuing a
                    career in other industries to earn a proper livelihood. Employee recognizes and
                    agrees that the enforcement of this Agreement is necessary to ensure the
                    preservation and continuity of the business and good will of Employer. Employee
                    agrees that due to the nature of Employer&#146;s business, the non-competition
                    restrictions set forth in this Agreement are reasonable as to time and
                    geographic area. Employer and Employee hereby agree that notwithstanding any
                    other provision of this Agreement, Employee shall have all rights to products or
                    information, or applications of such information, which do not relate to
                    Employer&#146;s business and were developed during the non-employment hours and
                    without utilizing any resources of Employer. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Notices</U>. Any notices, consents, demands, requests, approvals and other
                    communications to be given under this Agreement by either party to the other
                    shall be deemed to have been duly given in writing personally delivered, by
                    facsimile or sent by mail, registered or certified, postage prepaid with return
                    receipt requested, as follows: </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>





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<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Employer:</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">600 East Las Colinas Blvd.<BR>Suite 1100<BR> Irving, Texas 75039</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>


<PAGE>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">

<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Attention: Morgan F. Johnston<BR>Telephone: (972) 401-0752<BR> Facsimile:  (972) 401-3110<BR></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Employee: </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13215 Glad Acres<BR>Dallas, Texas 75234<BR>Telephone: (972) 406-9450<BR> Facsimile:  (972) 406-9160</FONT></TD></TR>
</TABLE>



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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Notices
delivered personally shall be deemed communicated as of actual receipt or receipt of
facsimile; mailed notices shall be deemed communicated as of three (3) days after mailing. </FONT></TD>
</TR>
</TABLE>
<BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Survival</U>. The following sections of this Agreement shall survive
                    termination of this Agreement for any reason: Sections 5, 6, 7, 8, 9, 11, 13,
                    14, 15, 16 and 17. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Arbitration</U>. The parties agree to binding arbitration in any action,
                    proceeding or counterclaim arising out of or relating to this Agreement. Such
                    arbitration will be conducted in Dallas, Texas through the offices of and in
                    accordance with the Commercial Arbitration Rules of the American Arbitration
                    Association. Judgment upon the award rendered in any arbitration may be entered
                    in any court of competent jurisdiction or application may be made to such court
                    for a judicial acceptance of the award and an enforcement, as the law of such
                    jurisdiction may require or allow. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Entire Agreement</U>. This Agreement contains the entire agreement of the
                    parties hereto and supersedes all prior agreements and understandings, oral or
                    written between the parties hereto. No modification or amendment of any of the
                    terms, conditions or provisions herein may be made otherwise than by written
                    agreement signed by the parties hereto. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>GOVERNING LAW</U>. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
                    PARTIES HERETO SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
                    LAWS OF THE STATE OF TEXAS. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Parties Bound</U>. This Agreement and the rights and obligations hereunder
                    shall be binding upon and inure to the benefit of Employer and Employee, and
                    their respective heirs, personal representatives, successors and assigns.
                    Employer shall have the right to assign this Agreement to any affiliate or to
                    its successors or assigns provided that such affiliate, successor or assign
                    agrees to be bound by the terms hereof. The terms &#147;successors&#148; and
                    &#147;assigns&#148; shall include any person, corporation, partnership or other
                    entity that buys all or substantially all of Employer&#146;s assets or all of
                    its stock, or with which Employer merges or consolidates. The rights, duties or
                    benefits to Employee hereunder are personal to him, and no such right or benefit
                    may be assigned by him. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Estate</U>. If Employee dies prior to the payment of all sums owed, or to be
                    owed, to Employee pursuant to Section 4 above, then such sums, as they become
                    due, shall be paid to Employee&#146;s estate. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>


<PAGE>


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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Enforceability</U>. If, for any reason, any provision contained in this
                    Agreement should be held invalid in part by a court of competent jurisdiction,
                    then it is the intent of each of the parties hereto that the balance of this
                    Agreement be enforced to the fullest extent permitted by applicable law. It is
                    the intent of each of the parties that the covenants not-to-compete contained in
                    Section 5 above be enforced to the fullest extent permitted by applicable law.
                    Accordingly, should a court of competent jurisdiction determine that the scope
                    of any covenant is too broad to be enforced as written, it is the intent of each
                    of the parties that the court should reform such covenant to such narrower scope
                    as it determines enforceable. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Waiver of Breach</U>. The waiver by any party hereto of a breach of any
                    provision of this Agreement shall not operate or be construed as a waiver of any
                    subsequent breach by any party. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Captions</U>. The captions in this Agreement are for convenience of
                    reference only and shall not limit or otherwise affect any of the terms or
                    provisions hereof. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Costs</U>. If any action at law or in equity is necessary to enforce or
                    interpret the terms of this Agreement, the prevailing party shall be entitled to
                    reasonable attorneys&#146; fees, costs and necessary disbursements in addition
                    to any other relief to which he or it may be entitled. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Counterparts</U>. This Agreement may be executed in one or more
                    counterparts, each of which shall be deemed an original and all of which shall
                    constitute one and the same instrument, but only one of which need be produced. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>







<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">

<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">EMPLOYER:<BR><BR>GRUY PETROLEUM MANAGEMENT CO.<BR><BR><BR>By:      ____________________________________<BR> Richard R. Frazier<BR>   President<BR>
</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">EMPLOYER'S PARENT COMPANY:<BR><BR>MAGNUM HUNTER RESOURCES, INC.<BR><BR><BR>By:      ________________________________   <BR> Morgan F. Johnston <BR>  Vice President, General Counsel &amp; <BR>  Secretary</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> <BR><BR>EMPLOYEE:<BR><BR><BR>______________________________<BR>Gary C. Evans<BR>
</FONT></TD></TR>
</TABLE>





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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>


<PAGE>



<HR SIZE=6 NOSHADE>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AMENDMENT TO
EMPLOYMENT AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Amendment to Employment Agreement (this &#147;<U>Amendment</U>&#148;), effective as of
October 6, 2004, is by and among Magnum Hunter Resources, Inc., a Nevada corporation (the
&#147;<U>Company</U>&#148;), Gruy Petroleum Management Co., a Texas corporation and wholly
owned subsidiary of the Company (&#147;<U>Gruy</U>,&#148; and together with the Company,
&#147;<U>Employer</U>&#148;), and Gary C. Evans, individually
(&#147;<U>Employee</U>&#148;). </FONT></P>

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          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Employer and Employee are parties to that certain Employment Agreement, dated as
          of January 1, 2000 (the &#147;<U>Original Agreement</U>&#148;), which is still
          in effect. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          In accordance with Section 14 of the Original Agreement, Employer and Employee
          wish to amend the Original Agreement as provided herein. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employer and Employee agree as
follows: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Defined Terms</U>. Unless otherwise defined in this Amendment, capitalized
          terms used in this Amendment have the respective meanings given them in the
          Original Agreement. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 1 Amendment</U>. Section 1 of the Original Agreement is amended to
          read in its entirety as follows: </FONT></P>

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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;1. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Employment</U>. Employer hereby employs Employee, and Employee hereby
                    accepts employment with Employer upon the terms and conditions hereinafter set
                    forth. However, Employee will retire from his employment and all positions held
                    with Employer, other than as a director of the Company, no later than April 4,
                    2005 (&#147;Retirement&#148;). Employee will give at least ten days&#146; prior
                    written notice to Employer if Employee desires for his Retirement to be
                    effective earlier than April 4, 2005; provided, that if both (a) an event
                    constituting Good Reason, or that would have constituted Good Reason if Employee
                    had remained employed under this Agreement after the date of his Retirement,
                    occurs after a Change in Control on or before December 31, 2005, and (b) none of
                    the events constituting Just Cause, or that would have constituted Just Cause
                    (except for any event described in Section 7(b)(ii)(5)) if Employee had remained
                    employed under this Agreement after the date of his Retirement, has occurred on
                    or before the date of the Change in Control, then his termination shall be
                    considered for purposes of Section 8 to be for Good Reason rather than
                    Retirement. Employee&#146;s Retirement shall not be deemed a &#147;voluntary
                    termination of employment&#148; by Employee for purposes of this
                    Agreement.&#148; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 2 Amendment</U>. Section 2 of the Original Agreement is amended to
          read in its entirety as follows: </FONT></P>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;2. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Duties</U>. Employee shall serve Employer as President and Chief Executive
                    Officer of Employer with such responsibilities as shall be determined from time
                    to time by Employer&#146;s Board of Directors. Among other responsibilities,
                    Employee shall (a) report to the Company&#146;s Chairman of the Board on all
                    material matters regarding the strategic planning and direction of Employer, and
                    (b) cooperate in connection with Employer&#146;s consideration and selection of,
                    and transition to, a successor President and Chief Executive Officer upon
                    Employee&#146;s Retirement. Employee agrees to devote all of his professional
                    time, attention, skills, benefits and best efforts to the performance of his
                    duties hereunder and to the promotion of the business and interests of
                    Employer.&#148; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>
<HR SIZE=3 NOSHADE>
<PAGE>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 3 Amendment</U>. Section 3 of the Original Agreement is amended to
          read in its entirety as follows: </FONT></P>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;3. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Term</U>. This Agreement shall become effective on the Effective Date, and
                    shall continue, unless earlier terminated in accordance with the terms of this
                    Agreement, until April 4, 2005 or any earlier Retirement by Employee (the
                    &#147;<U>Term</U>&#148;).&#148; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 5 Amendment</U>. The introductory sentence of subsection (e) of
          Section 5 of the Original Agreement is amended to read in its entirety as
          follows: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;(e) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Competition During and After the Term of this Agreement</U>. From the period
                    beginning on the Effective Date and ending either (x) two (2) years following
                    Employee&#146;s voluntary termination of employment with Employer or (y) if the
                    Term expires or is terminated because of Employee&#146;s Retirement, on December
                    31, 2005:&quot; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 6 Amendment</U>. Section 6 of the Original Agreement is amended to
          read in its entirety as follows: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;6. </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <U>Prohibition on Disparaging Remarks</U>. During the Term and for three (3)
                    years following termination of Employee&#146;s employment with Employer for any
                    reason,<B> </B>Employee shall refrain from making or soliciting any disparaging,
                    negative or other similar remarks concerning (i) Employer, (ii) any of its
                    subsidiaries or other affiliated companies, (iii) any of their respective
                    current and former directors, or (iv) any of their respective officers or
                    employees on or after October 6, 2004, to any third party, except to the extent
                    that Employee is required to make such remarks (a) by applicable law or
                    regulation or judicial or regulatory process, (b) in or in connection with any
                    pending or threatened litigation relating to this Agreement or any transaction
                    contemplated hereby or thereby, or (c) in his capacity as a member of the Board
                    of Directors of the Company, for its corporate purposes, in any confidential
                    meetings of the Board or any of its committees or in confidential communications
                    to other directors of the Company. Similarly, during the Term and for three (3)
                    years following termination of Employee&#146;s employment with Employer for any
                    reason, Employer shall refrain from making or soliciting any disparaging,
                    negative or other similar remarks concerning Employee or any members of his
                    immediate family to any third party, except to the extent that Employer is
                    required to make such remarks (a) by applicable law or regulation or judicial or
                    regulatory process, (b) in or in connection with any pending or threatened
                    litigation relating to this Agreement or any transaction contemplated hereby or
                    thereby, or (c) for its corporate purposes in any confidential meetings of its
                    boards or any of their respective committees or in confidential communications
                    within Employer. In view of the difficulty of determining the amount of damages
                    that may result to the parties hereto from the breach of the provisions of this
                    Section 6, it is the intent of the parties hereto that, in addition to monetary
                    damages, any non-breaching party shall have the right to prevent any such breach
                    in equity or otherwise, including, without limitation, prevention by means of
                    injunctive relief.&#148; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<HR SIZE=3 NOSHADE>
<PAGE>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 7(a)(i) Amendment</U>. Subsection (a)(i) of Section 7 of the Original
          Agreement is amended to read in its entirety as follows: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;(i) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     The expiration of the Term on April 4, 2005 or upon any earlier Retirement by
                    Employee as set forth in Section 3 above;&quot; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 7(b)(ii) Amendments</U>. Subsections (b)(ii)(4) and (5) of Section 7
          of the Original Agreement are amended to read in their entirety as follows: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;(4) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     any breach of by Employee of any of the terms of, or the failure to perform any
                    covenant contained in this Agreement; or </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;(5) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     the violation by Employee of (x) any existing written policies established by
                    Employer, or (y) any other policies or instructions established by the
                    Company&#146;s Board of Directors or any of its committees that are clearly
                    communicated to Employee by or on behalf of the Company&#146;s Board of
                    Directors or any such committee with respect to the operation of Employer&#146;s
                    business and affairs; or Employee&#146;s failure, in any respect, to carry out
                    any of the instructions of the Company&#146;s Board of Directors or any of its
                    committees, or any of the instructions of the Company&#146;s Chairman of the
                    Board regarding the matters referred to in Section 2(a) above, that are clearly
                    communicated to Employee by or on behalf of the Company&#146;s Board of
                    Directors or any such committee or by the Company&#146;s Chairman of the
                    Board;&quot; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 7(b)(iv) Amendment</U>. The introductory language of subsection
          (b)(iv) of Section 7 of the Original Agreement is amended to read in its
          entirety as follows: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;(iv) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     For purposes of Section 7(a)(v) above, the term &#147;Change in Control&#148;
                    of Employer shall mean if any of the following events have occurred on or before
                    December 31, 2005:&quot; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 8(a) Amendment</U>. Section 8(a) of the Original Agreement is amended
          to read in its entirety as follows: </FONT></P>

<HR SIZE=3 NOSHADE>
<PAGE>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;(a) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     In the event of the termination of Employee&#146;s employment for any reason
                    specified in Section 7 (other than the reasons set forth in Sections 7(a)(i),
                    (iii), or (v)), Employee shall be entitled only to the compensation earned by
                    him as of the effective date of termination, including any declared but unpaid
                    bonus or pro-rata portion thereof.&#148; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 8(c) Amendment</U>. Section 8(c) of the Original Agreement is amended
          by deleting the &#147;.&#148; at the end of the first sentence and adding the
          following: </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;;
except that if the termination of Employee&#146;s employment is considered to be Good
Reason under the proviso in Section 1, Employee shall instead be entitled to receive,
immediately in one lump sum, three (3) times the sum of the following: (x) the Base Salary
in effect immediately before Employee&#146;s retirement, plus (y) annualized bonus, if
any, for Employer&#146;s 2004 fiscal year, plus (z) $7,500, which is the annual value of
Employee&#146;s automobile benefits; provided, that any payments or benefits provided
under this Agreement to Employee upon and after Employee&#146;s Retirement (later
considered to be Good Reason) will be credited against all amounts and benefits payable or
to be provided to Employee and his dependents under Section 8 of this Agreement.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 8(f) Amendment</U>. The following is added to the Original Agreement
          as a new Section 8(f): </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;(f) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     In the event of the Employee&#146;s Retirement in accordance with Section
                    7(a)(i), Employee shall be entitled to the following: </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Payment of an amount equal to his fiscal 2005 base salary through December 31,
          2005, payable in the same manner as theretofore paid under Section 4(a) hereof; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           If and so long as Employee has not become eligible to participate in group
          health coverage of another employer and Employee and his qualified dependents
          have elected to continue group health coverage under Employer&#146;s group
          health plan pursuant to Sections 601 and 608 of the Employee Retirement Income
          Security Act of 1974, as amended (&#147;COBRA&#148;), the payment of amounts to
          reimburse Employee for all COBRA insurance premiums for Employee and his
          qualified dependents until December 31, 2005; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Provision of such group benefits, other than the insurance benefits described
          in subsection (ii) of this Section 8(e), as Employer provides until December 31,
          2005 to its employees with comparable salaries and responsibilities to those of
          Employee immediately before his Retirement; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Payment of the premiums on the existing policy or policies of key-man life
          insurance on Employee&#146;s life in the aggregate face amount of $12 million
          through December 31, 2005;<B> </B>and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<HR SIZE=3 NOSHADE>
<PAGE>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Assignment to Employee, and Employee&#146;s assumption (at Employee&#146;s
          cost), of the existing lease by Employer of the automobile that he is using
          immediately before his Retirement and reimbursement to Employee of an amount
          equal to $7,500 less the amount paid to Employee or for his benefit under
          Section 4(e) during the fiscal year of his Retirement before the date of his
          Retirement, payable by Employer in the same manner as theretofore paid under
          Section 4(e); provided, that if the lease cannot be assigned, Employer will pay
          an amount equal to $7,500 annually for Employee&#146;s personal lease and use of
          one automobile through December 31, 2005, payable in the same manner as
          theretofore paid under Section 4(e). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Section 11 Amendment</U>. The address and numbers for notices and other
          communications to be given under the Original Agreement, as amended by this
          Amendment, to Employee are amended to be as follows: </FONT></P>

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          <TD ALIGN=left WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD ALIGN=left WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
2100 LaRochelle<BR>Flower Mound, Texas 75022<BR>Telephone: &nbsp;&nbsp;&nbsp;(972) 410-1395<BR>Facsimile: &nbsp;&nbsp;&nbsp;(972) 410-1396
         </FONT></TD></TR>
        </TABLE>
          <BR>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Remaining Parts of Agreement</U>. Except as amended by this Amendment, all
          provisions of the Original Agreement shall continue in full force and effect as
          written. In the event of any conflict or inconsistency between the terms of this
          Amendment and the terms of the Original Agreement, the terms of this Amendment
          shall control. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Certain Applicable Provisions</U>. Sections 9 through 22 of the Original
          Agreement (including, without limitation, Section 11 as amended by this
          Amendment) shall apply to this Amendment as well as to the Original Agreement. </FONT></P>


<HR SIZE=3 NOSHADE>
<PAGE><PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
parties have signed this Amendment to be effective as of the date set forth in the first
paragraph. </FONT></P>





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     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">EMPLOYER:<BR><BR>MAGNUM HUNTER RESOURCES, INC.<BR><BR><BR>By:     ________________________________________<BR>Name:   ________________________________________<BR>Title:  ________________________________________<BR><BR><BR><BR>GRUY PETROLEUM MANAGEMENT CO.<BR><BR><BR>By:    ________________________________________<BR>Name:  ________________________________________<BR>Title: ________________________________________<BR><BR><BR><BR>EMPLOYEE:<BR><BR><BR>________________________________________<BR> Gary C. Evans, individually </FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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