GALAXY ENERGY CORP
EXH 10-10 FORM OF CONVEYANCE
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<TYPE>EX-10
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<DESCRIPTION>EXH 10-10 FORM OF CONVEYANCE
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>EXHIBIT 10.10</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>FORM OF CONVEYANCE OF OVERRIDING ROYALTY INTEREST</font></p>

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<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font SIZE=2>NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.</font></b></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>CONVEYANCE OF OVERRIDING ROYALTY INTEREST</font></b></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>For a good and valuable consideration, the receipt of which is hereby acknowledged, ____________________, a __________________, with headquarters located at 1331-17</font><sup><font size=2>th</font></sup><font size=2> Street, Suite 730, Denver, Colorado 80202 ("Grantor") does hereby grant, bargain, sell, transfer, assign and convey to ____________________</font><b><font size=2> </font></b><font size=2>("Grantee"), a __________________, whose address is _________________________________, an overriding royalty interest (the "Overriding Royalty") equal to _______________% of (i) _______ percent (__%) of the Applicable Percentage (below defined) of the oil, gas and other minerals in, under and that may be produced from the lands (a) described in Exhibit "A" attached hereto and made a part hereof  or (b) covered by the oil and gas leases described in such Exhibit "A" (collectively the
"Subject Lands"), but INSOFAR AND ONLY INSOFAR as the Subject Lands are included in the drillsite and drilling and spacing unit or proration unit established by the ____________________ for the oil and gas wells described on Exhibit &#147;B&#148; attached hereto and made a part hereof (or, in the event no drilling and spacing unit or proration unit has been so established, then such unit shall be presumed to be the approximate 40-acre quarter-quarter section, or equivalent tract, in which the well is located) (collectively, the &#147;Producing Units&#148;), and (ii) ______ percent (__%) of the Applicable Percentage of the oil, gas and other minerals in, under and that may be produced from the Subject Lands that are not included in the Producing Units.  The term "Applicable Percentage" shall mean, with respect to each portion of Subject Lands, identified on Exhibit "A", the percentage set forth on such Exhibit "A" as the "Working Interest" or "WI".  Additionally, as used herein, the
terms (i) &#147;Subject Leases&#148; refers to the oil and gas leases described in Exhibit &#147;A&#148;, and (ii) &#147;Working Interest&#148; and "WI" mean the cost bearing percentage interest that the owner thereof must bear relative to 100% of all costs to explore, develop, and produce oil and/or gas from the applicable portion of the Subject Lands.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>In the event that, as of the Effective Time, Grantor&#146;s actual Working Interest in a portion of the Subject Lands (&#147;Grantor&#146;s Actual Working Interest&#148;) is less than the Working Interest shown on Exhibit &#147;A&#148; for such portion (&#147;Grantor&#146;s Represented Working Interest&#148;), the Overriding Royalty in such portion of the Subject Lands shall be proportionately reduced by the percentage that Grantor&#146;s Actual Working Interest in such portion bears to Grantor&#146;s Represented Working Interest in such portion; provided, however, in no event shall such reduction ever result in reducing the Overriding Royalty by more than five percent (5%) in such portion.  In this regard, it is understood and agreed that though the Overriding Royalty is conveyed by Grantor to Grantee out of Grantor's interest (such interest, subject to the Overriding Royalty, being
herein called the "Burdened Interest") in the Subject Leases insofar as they cover Subject Lands, except for the proportionate reduction set forth in the first sentence of this paragraph, such Overriding Royalty shall be equal to a full _____________% of ________ percent (__%) or _________ percent (__%), as the case may be, of the Applicable Percentage of the oil, gas and other </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>minerals produced from the Subject Lands, and shall not be reduced for any reason (except for the proportionate reduction set forth in the first sentence of this paragraph), including, without limitation, the same shall not be reduced if the undivided interest of Grantor in a Subject Lease is less than the entire interest in such Subject Lease (or is less than the interest, if any, stated on Exhibit "A" with respect to such Subject Lease) or if the interest in oil, gas and other minerals underlying any portion of the Subject Lands which is covered by a particular Subject Lease (or group of Subject Leases) is less than the entire interest in the oil, gas and other minerals underlying such portion of the Subject Lands, or if the share of production from any portion of Subject Lands to which Grantor is entitled by virtue of its ownership interest in the Subject Leases is less than the Applicable Percentage set
forth on Exhibit "A" for such portion of the Subject Lands.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>TO HAVE AND TO HOLD the Overriding Royalty unto Grantee, its successors and assigns forever.  The Overriding Royalty herein conveyed, and the Burdened Interest of Grantor, shall be subject to the following provisions:</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>1.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Grantor shall have the obligation to market, or cause to be marketed, the oil, gas and other minerals produced from the Subject Lands and attributable to the Overriding Royalty (the "ORRI Hydrocarbons") on behalf of and for the account of Grantee in arm's-length transactions with reputable purchasers in accordance with prudent business judgment, with each such sale to be: (a) upon terms and conditions which are the best terms and conditions reasonably available taking into account all relevant circumstances, including without limitation, price, quality of production, access to markets or lack thereof, minimum purchase guarantees, identify of purchaser and length of commitment, (b) upon terms and conditions at least as favorable as (i) Grantor obtains for the share of oil, gas and/or other minerals attributable
to the Burdened Interest in the Subject Lands to which such sale relates, (ii) Grantor obtains for its interest in other oil, gas and/or other minerals which are of comparable type and quality and which are produced in the same area as the Subject Lands to which such sale relates, and (iii) those obtained by any Affiliates (below defined) of Grantor for oil, gas and/or other minerals produced from the Subject Lands to which such sale relates or from lands in the same area, and (c) made to a party who is not an Affiliate of Grantor.  As used herein, "Affiliate" shall mean, with respect to any person or entity, another person or entity that, directly or indirectly, (i) has an equity interest in that person or entity, (ii) has a common ownership with that person or entity, (iii) controls that person or entity, (iv) is controlled by that person or entity or (v) shares common control with that person or entity.  &#147;Control&#148; or &#147;controls&#148; for purposes hereof means that a
person or entity has the power, direct or indirect, to conduct or govern the policies of another person or entity.  Grantor shall duly perform all obligations performable by it under production sales contracts under which ORRI Hydrocarbons are sold and shall take all appropriate measures to enforce the performance under each such production sales contract of the obligations of the other parties thereto.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>2.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Grantor does hereby represent and warrant to Grantee (i) that, to the best of Grantor&#146;s knowledge, Grantor owns the interests specified in Exhibit "A" hereto in and to the Subject Leases insofar as they cover Subject Lands (and Grantor has good and marketable title to such interests, free of liens and encumbrances, except liens and encumbrances in favor of Promethean Asset Management L.L.C. on its own behalf and in its capacity as collateral agent), (ii) that </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Grantor has good right and authority to sell and convey the Overriding Royalty, and (iii) that this Conveyance of Overriding Royalty Interest (&#147;this Conveyance&#148;) vests in Grantee good and marketable title to the Overriding Royalty free of liens and encumbrances. Grantor hereby binds itself to warrant and forever defend, all and singular, title to the Overriding Royalty unto Grantee, its successors and assigns, against the claims and demands of all persons claiming or to claim the same or any part thereof.  This Conveyance is made with full substitution and subrogation of Grantee in and to all covenants and warranties by others heretofore given or made.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>3.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Grantor shall be obligated to explore, develop, operate and maintain the Burdened Interest as would a prudent operator.  As to any portions of the Burdened Interest as to which Grantor is not the operator, Grantor shall take all such action and exercise all such rights and remedies as are reasonably available to it to cause the operator to so explore, develop, maintain and operate such portions of the Burdened Interest.  Grantor shall promptly (and, unless the same are being contested in good faith and by appropriate proceedings, before the same are delinquent) pay all costs and expenses (including all taxes and all costs, expenses and liabilities for labor, materials and equipment incurred in connection with the Burdened Interests and all obligations to the holders of royalty interests and other interests
affecting the Subject Leases) incurred in developing, operating and maintaining the Burdened Interests.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>4.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Grantor shall keep full, true, and correct records of the oil, gas, and other hydrocarbons produced from or attributable to the Subject Lands each calendar month, and the portion attributable to the Overriding Royalty.  Such records may be inspected by Grantee or its authorized representatives and copies made thereof at all reasonable times.  Grantee shall also have, upon request, access to review all reports, data and information relating to the Subject Lands or to exploration, development, production and other operations conducted on the Subject Lands. On or before the earlier of (a) the fifth business day after Grantor&#146;s first public disclosure, by issuance of a press release or filing of a report with the Securities and Exchange Commission, of Grantor&#146;s production from the Subject Lands or other
results of operations for the most recently completed fiscal quarter or fiscal year, or (b) the last day on which the Grantor can timely (without giving effect to any extensions of time permitted by Rule 12b-25 under the Securities Exchange Act of 1934) file a quarterly report on Form 10-Q or annual report on Form 10-K, as applicable, with respect to such fiscal quarter of fiscal year, Grantor shall (a) deliver to Grantee a statement (a &#147;Production Statement&#148;) setting forth (i) the production from the Subject Lands for the most recently completed fiscal quarter, (ii) the portion of such production attributable to the Overriding Royalty, (iii) the gross proceeds ("ORRI Collected Proceeds") attributable to the sale of ORRI Hydrocarbons (and the taxes and other costs permitted to be deducted therefrom under Section 5 below) during such fiscal quarter and (iv) such other data as  Grantee may reasonably request in such form as Grantee may reasonably request, and (b) make a
payment to Grantee of such ORRI Collected Proceeds (less such costs permitted to be deducted therefrom under Section 5 below ) in immediately available funds by wire transfer (or such other form specified by Grantee) to such bank or location as Grantee may direct from time to time in writing.  No Production Statement delivered to Grantee shall contain any information regarding the production from the Subject Lands or reserves that has not been publicly disclosed by Grantor or any other material nonpublic information.  If any Production Statement contains, or Grantor otherwise provides Grantee, any information regarding production from the Subject </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Lands or reserves that has not been publicly disclosed (or any other material nonpublic information ), Grantee shall have the right to make public disclosure of such information as provided in Section 4(k) of the Securities Purchase Agreement, dated as of May 31</font><sup><font size=2>st</font></sup><font size=2>, 2005, among Grantor, Grantee and the other parties named therein.  Grantor shall not publicly disclose its results of operations for any fiscal quarter or fiscal year unless it contemporaneously publicly discloses, or prior thereto has publicly disclosed, the production from the Subject Lands for the most recently completed fiscal quarter.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>5.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Overriding Royalty shall be free of all costs, expenses, and liabilities, of whatever kind or character, except the Overriding Royalty shall bear its proportionate share of the costs charged Grantor by a third party (not an Affiliate of Grantor) for compression, dehydration and transportation that are incurred between the first point of receipt of production by such third party and the redelivery of such compressed and dehydrated production to Grantor.  Specifically, but not by way of limitation, the Overriding Royalty shall never bear, either directly or indirectly, any costs, expenses or liabilities for building, constructing, acquiring, drilling, developing, producing, operating, gathering, separating, trucking, or transporting (except as set forth in the first sentence of this Section 5) or any post
production expenses, related or pertaining to the Subject Lands, Subject Leases, or wells, pipelines, or other facilities or improvements situated on  the Subject Lands or lands pooled therewith, or production of oil and/or gas from the Subject Lands or lands pooled therewith; provided, however, the Overriding Royalty shall bear its proportionate share of (i) the third party costs identified in the first sentence of this Section 5 and (ii) production, severance and similar taxes.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>6.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Grantor agrees to execute and deliver, and, to the extent it is within Grantor's power to do so, to cause any third parties to execute and deliver, to Grantee all such other and additional instruments and to do all such further acts and things as may be necessary more fully to vest in and assure to Grantee all of the rights, titles, interests, remedies, powers and privileges herein granted or intended so to be.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>7.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Exhibit &#147;B&#148; sets forth those certain portions of the Subject Lands that have been pooled or unitized for the production of oil, gas and/or minerals prior to the date hereof.  With respect to each such existing pool or unit set forth on such Exhibit &#147;B&#148;, and with respect to each pool or unit in which the Overriding Royalty is included, as below provided, after the date hereof, the Overriding Royalty in each portion of Subject Lands included in such pool or unit shall apply to the portion of production from such pool or unit which is attributable to such portion of Subject Lands under and by virtue of the applicable pooling and unitization agreements, designations and/or orders.  From and after the date hereof, Grantor shall have the right and power to unitize or pool in good faith on
customary terms any portion or portions of the Overriding Royalty with other lands in which the mineral interest thereof is owned by a person or entity other than Grantor or an Affiliate of Grantor and on which is located, or will be located, a well producing, or capable of producing, oil and/or gas in commercially paying quantities (collectively &#147;Third Party Lands&#148;); provided, however, Grantor shall not have the right and power to unitize or pool any portion or portions of the Overriding Royalty with any non Third Party Lands without first obtaining the prior written consent of Grantee.  If pursuant to any law, rule, regulation or order of any governmental body or official, any portion of the Subject Lands is pooled or unitized in any manner, or if Grantee has joined in or agreed to any pooling or </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>unitization, the Overriding Royalty insofar as it affects such portion of Subject Lands shall also be pooled and unitized and, in each event, the Overriding Royalty shall apply to the production which is attributable to such portion of Subject Lands under and by virtue of such pooling and unitization arrangements.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>8.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Nothing herein contained shall in any way limit or restrict the right of Grantee to sell, convey, assign or mortgage (or grant a deed of trust on) the Overriding Royalty (including its rights, titles, interests, estates, remedies, powers and privileges appurtenant or incident to the Overriding Royalty under this Conveyance) in whole or in part.  No change of ownership of the Overriding Royalty shall be binding upon Grantor until Grantor is furnished with copies of the original documents evidencing such change.  Upon receipt by Grantor of copies of the original documents evidencing a sale, conveyance, assignment or mortgage (or grant of a deed of trust on) the Overriding Royalty, Grantor shall deal with the purchaser or assignee in place of Grantee and shall deal with the mortgagee (or the beneficiary of the
deed of trust) in addition to the Grantee, and references herein to the Grantee shall thereafter also be deemed to be references to such purchaser, assignee or mortgagee (or the beneficiary of the deed of trust).</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>9.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the Grantor proposes or intends to make any sale, transfer or other disposition of all or any portion of its Burdened Interest, including without limitation a proposed or intended sale, transfer or disposition of its Burdened Interest by merger, reorganization, consolidation, or by sale of all or substantially all of its assets (other than a sale, transfer or other disposition to Galaxy Energy Corporation or a directly or indirectly, wholly owned subsidiary of Galaxy Energy Corporation, or pursuant to Section 13 below), and such sale, transfer or other disposition will result in Grantor owning less than a 50% Working Interest in such Burdened Interest and/or resigning as operator of such Burdened Interest, Grantor shall so inform Grantee by notice in writing (the "Transfer Notice") describing the interest (or
portion thereof) that is the subject of such proposed or intended sale, transfer or disposition (the "Offered Interest"), and the other pertinent and reasonable details of such proposed or intended sale, transfer or disposition.  Grantee shall thereupon have 30 days after receipt of the Transfer Notice to notify Grantor in writing that Grantee desires to participate in such sale, transfer or disposition and contribute the Overriding Royalty, or some portion thereof, as a part of the properties to be covered by such sale, transfer or disposition.  Failure of Grantee to notify Grantor in writing that Grantee desires to participate in such sale, transfer or disposition within such 30 day period shall be deemed an election by Grantee not to participate.  If Grantee does timely submit its notice to Grantor (i) the Burdened Interest, or portion thereof that is to be covered by such sale, transfer or disposition, shall not be sold or disposed of separate and apart of the Overriding Royalty
(or portion thereof as designated by Grantee in its notice) and (ii) Grantor and Grantee shall mutually agree upon the price or value that Grantee shall receive upon conclusion of such sale, transfer or disposition for the Overriding Royalty (or portion thereof) that is to be a part of the properties covered by such sale, transfer or disposition.  In the event Grantor and Grantee cannot so mutually agree, Grantor and Grantee shall retain the services of a petroleum reservoir engineer experienced in the valuation of oil and gas properties employed by Halliburton Energy Services of Houston, Texas (or its successors in interest) to serve as the sole arbiter of such disagreement (the "Arbiter").  In the event Halliburton Energy Services (or its successor in interest) is unwilling or incapable of having one of its petroleum reservoir engineers serve as Arbiter, then Grantor and Grantee shall mutually agree on the person to serve as Arbiter, and in the event Grantor and Grantee cannot so
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

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<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>mutually agree, the selection of the Arbiter shall be made by a federal judge sitting in the Southern District of New York in the borough of Manhattan, New York, New York, upon petition filed by either Grantor or Grantee requesting that such selection be made.  The decision of the Arbiter as to such price or value Grantee shall receive shall be delivered by the Arbiter within ten (10) days of his retention, and shall be final as to Grantor and Grantee for all purposes.  The costs of such Arbiter shall be borne equally by Grantor and Grantee.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>10.</font><font size=1>&nbsp;&nbsp;&nbsp;</font><font size=2>Grantor shall have the right without the joinder of Grantee to release, surrender and/or abandon its Burdened Interest, or any part thereof, or interest therein even though the effect of such release, surrender or abandonment will be to release, surrender or abandon the Overriding Royalty; provided, however, that Grantor shall not release, surrender or abandon any Burdened Interest unless and until Grantor has determined in good faith that such Burdened Interest will no longer produce in paying quantities, and provided further that, Grantor will, at least thirty (30) days prior to the release, surrender or abandonment (unless a lesser period of time governing such release, surrender or abandonment is provided for in an applicable operating agreement entered into by and between Grantor and a person or entity that is not an
Affiliate of Grantor, in which case at least the number of days provided for in such lesser time period) of any Burdened Interest, or any part thereof or interest therein, notify Grantee (in writing, giving a description of each Burdened Interest, or part thereof or interest therein, proposed to be released, surrendered or abandoned, and the date upon which such release, surrender or abandonment is projected to occur) and, if Grantee shall so request, Grantor shall assign to Grantee the interests proposed to be released, surrendered or abandoned, together with the interest attributable to the Burdened Interests in all equipment located thereon or used in connection therewith; provided further that, in the event of such an assignment from Grantor to Grantee, Grantee shall pay to Grantor the salvage value of any equipment so conveyed by Grantor to Grantee.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>11.</font><font size=1>&nbsp;&nbsp;&nbsp;</font><font size=2>Without prior written notice to Grantee providing Grantee with the opportunity to acquire the affected interest of Grantor at no additional cost to Grantee other than assumption by Grantee of the obligations of Grantor pertaining to the affected interest, Grantor shall not elect to be a non-participating party (whether pursuant to an operating agreement or other agreement or arrangement, including without limitation, non-consent rights and obligations imposed by statute and/or regulatory agency) with respect to any drilling, deepening, plugging back, reworking, sidetracking or completion (or other) operation on any Burdened Interest or elect to be an abandoning party with respect to a well located on any Burdened Interest; provided, however, if such direct acquisition by Grantee would be prohibited by the applicable operating
agreement or other agreement or arrangement and Grantee has timely notified Grantor that Grantee elects to acquire such affected interest, Grantor agrees to use its best efforts as are reasonable under the circumstances to enter into a mutually satisfactorily contractual arrangement with Grantee that would allow Grantee to indirectly acquire such affected interest, or have the same economic consequences of ownership of such affected interest, and not be in violation or breach of such applicable operating agreement or other agreement or arrangement.  Grantor agrees to provide such prior written notice to Grantee as soon as is reasonably possible in order to afford Grantee as much time as reasonably possible to respond.  Such prior written notice shall include information advising Grantee of the time period required by the applicable operating agreement, other agreement or arrangement for response on this matter, and failure on the part of Grantee to notify Grantor of its election to
acquire such affected interest within such time period shall be </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>6</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>deemed an election by Grantee to not acquire such affected interest.  Notwithstanding anything to the contrary contained herein, Grantor shall not elect, as to any Burdened Interest, to be a non-participating party with respect to any operation contemplated in this Section 11, in the event Grantor or any Affiliate of Grantor will also be a participating party in such operation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.38in;text-align:justify;'><font size=2>12.  The Overriding Royalty shall apply to all renewals, extensions and other similar arrangements (and/or interests therein) of the Subject Leases insofar as they cover Subject Lands.  A new lease taken before the expiration of the existing Subject Lease which it replaced or within one (1) year after expiration of such Subject Lease, and covering the same interest (or any part thereof) which was covered by the Subject Lease, shall be considered a renewal or extension for the purposes hereof.  Additionally, the Overriding Royalty shall continue in force and effect and not be extinguished in the event Grantor acquires the mineral estate covered by a Subject Lease and thereafter releases such Subject Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.38in;text-align:justify;'><font size=2>13.   Grantee acknowledges that Grantor has been negotiating with Pennaco Energy Inc., a wholly-owned subsidiary of Marathon Oil Company, and Windsor Energy Group LLC for the exchange of certain of the Subject Lands (collectively, the &#147;Exchanged Lands&#148;) for lands owned by such companies that are of comparable (i) reservoir value, (ii) acreage size and (iii) current levels of production, to that of the Exchanged Lands. Assuming compliance with the foregoing sentence, Grantee agrees that upon Grantor&#146;s written request, it will execute appropriate recordable instruments releasing the Overriding Royalty with respect to the Exchanged Lands in consideration for Grantor conveying to Grantee the Overriding Royalty as to the lands received in exchange therefore; provided, however, the agreement of Grantee contained in this Section 13 shall be in force and effect for only one
hundred eighty (180) days subsequent to the execution date of this Conveyance, and that at the expiration of such one hundred eighty (180) day period, the covenant of Grantee contained in this Section 13 shall cease to exist and no longer be in force and effect.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>14.    Except for a transfer pursuant to Section 13 above, the agreements and obligations of Grantor in paragraphs 7, 9, and 11 above shall not be covenants running with the land and shall be personal agreements and obligations of Grantor and any Affiliate of Grantor that shall, terminate upon a sale, transfer or disposition of Grantor&#146;s Burdened Interest to a third party that is not an Affiliate of Grantor. All other covenants and agreements of Grantor herein contained shall be deemed to be covenants running with the Burdened Interest.  All of the provisions hereof shall inure to the benefit of Grantee and its successors and assigns.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>15.</font><font size=1>&nbsp;&nbsp;&nbsp;</font><font size=2> All communications required or permitted to be given under this Conveyance shall be in writing and shall be given by registered or certified mail, postage prepaid, telecopy or telex, or by personal service (including express or courier service), and addressed to the addresses specified at the beginning of this Conveyance (or to such other address, telecopy or telex number as may be designated in writing in accordance herewith).  Notices shall be deemed given upon receipt.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>16.</font><font size=1>&nbsp;&nbsp;&nbsp;</font><font size=2> This Conveyance is being executed in several counterparts, all of which are identical, except that, to facilitate recordation, in certain counterparts hereof only that portion of Exhibit "A" which contains specific descriptions of the Subject Lands located in the recording </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>7</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>jurisdiction in which the counterpart is to be recorded shall be included, and all other portions of Exhibit A shall be included by reference only.  Complete copies of this Conveyance containing the entire Exhibit "A" have been retained by Grantor and Grantee.  All of such counterparts together shall constitute but one and the same instrument.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>17.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font SIZE=2>WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW, THIS CONVEYANCE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE AND THE LAWS OF THE UNITED STATES OF AMERICA, EXCEPT THAT TO THE EXTENT THAT THE LAW OF A STATE IN WHICH A PORTION OF THE OVERRIDING ROYALTY IS LOCATED (OR WHICH IS OTHERWISE APPLICABLE TO A PORTION OF THE OVERRIDING ROYALTY) NECESSARILY OR, IN THE SOLE DISCRETION OF GRANTEE, APPROPRIATELY GOVERNS, WITH RESPECT TO PROCEDURAL AND SUBSTANTIVE MATTERS RELATING TO THE CREATION, PERFECTION AND VESTING OF THE OVERRIDING ROYALTY, AND OTHER RIGHTS AND REMEDIES OF THE GRANTEE GRANTED HEREIN, THE LAW OF SUCH STATE SHALL APPLY AS TO THAT PORTION OF THE
OVERRIDING ROYALTY LOCATED IN (OR WHICH IS OTHERWISE SUBJECT TO THE LAWS OF) SUCH STATE.  GRANTOR AND GRANTEE HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN, AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER.  GRANTOR AND GRANTEE HEREBY IRREVOCABLY WAIVE PERSONAL SERVICE OF PROCESS AND CONSENT TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF TO SUCH PARTY AT THE ADDRESS SHOWN ABOVE FOR SUCH PARTY, AND AGREE THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND
SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF.  NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.  GRANTOR AND GRANTEE ACKNOWLEDGE THAT EACH HAS EXECUTED THIS CONVEYANCE IN THE STATE OF NEW YORK.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS CONVEYANCE OR ANY TRANSACTION CONTEMPLATED HEREBY.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>IN WITNESS WHEREOF, this Conveyance is executed this 31</font><sup><font size=2>st</font></sup><font size=2> day of May, 2005, effective as of 7 o'clock a.m. local time at the locations of the Subject Lands, respectively on May 31</font><sup><font size=2>st</font></sup><font size=2>, 2005 (the &#147;Effective Time&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>[signatures and acknowledgement pages to follow]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>9</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>"GRANTOR"</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>___________________________________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="54" style=' margin-left:3.5in;border-collapse:collapse'>
    <tr>
        <td width="54" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.69in;text-align:justify;'><font size=2>Name: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.69in;text-align:justify;'><font size=2>Title: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.69in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>"GRANTEE"</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>___________________________________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.75in; text-indent:-0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="54" style=' margin-left:3.5in;border-collapse:collapse'>
    <tr>
        <td width="54" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.69in;text-align:justify;'><font size=2>Name:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.69in;text-align:justify;'><font size=2>Title: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="395" style=' border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>STATE OF COLORADO</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  width="37">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="22" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)  </font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>ss:</font></p> </td> </tr>
    <tr >
        <td width="220" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>CITY AND COUNTY OF</font></p> </td>
        <td width="107" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>DENVER</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  width="37">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="220" ></td>

        <td width="107" ></td>

        <td width="22" ></td>

        <td width="10" ></td>

        <td width="37" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>The foregoing instrument was acknowledged before me on this 31</font><sup><font size=2>st </font></sup><font size=2>day of May, 2005, by _____________, ____________________ of _______________________, a ___________ corporation, as the act and deed and on behalf of said corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>Notary Public, State and County of</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="88" style=' margin-left:27.0pt;border-collapse:collapse'>
    <tr>
        <td width="88" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>[SEAL]</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="143" style=' margin-left:324.6pt;border-collapse:collapse'>
    <tr>
        <td width="143" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(printed name)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>My commission expires:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>10</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>STATE OF _______________  </font></p> </td>
        <td width="32" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:2.38in;text-align:justify;'><font size=2>) ss:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>COUNTY OF</font></p> </td>
        <td width="67" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>_</font></u><font size=2>__</font></p> </td>
        <td width="32" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:justify;'><font size=2>The foregoing instrument was acknowledged before me on this 31</font><sup><font size=2>st</font></sup><font size=2> day of May, 2005, by ___________________________ as ________________________ of ____________________, a _____________, as the act and deed and on behalf of said _____________________.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>Notary Public, State and County of</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>[SEAL]</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="143" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(printed name)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>My commission expires:</font></p>

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</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>11</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>EXHIBIT "A"</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>12</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>EXHIBIT &#147;B&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>13</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>8K- -Form of Conveyance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>508454 000002 HOUSTON 392218.1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>



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