COLLATERAL ASSIGNMENT OF MINERAL LEASES

For value received, ENERGY PRODUCERS INC., a wholly-owned subsidiary of EGPI
Firecreek, Inc. (together with EGPI Firecreek Inc, (collectively, the
“Assignor”) hereby assigns, transfers, sets over, and grants unto TWL
INVESTMENTS A LLC. (“Assignee”) all of its right, title, and interest to the
oil, gas, and mineral leases and equipment described in the attached exhibit “A”
(the “Leases”), including any renewals, extensions, or ratifications, and the
oil and gas leasehold estates and related working interests in the lands
described on exhibit “A”.   The Leases are further described in the document
entitled “Assignment and Bill of Sale,” from Ginzoil Inc., to Assignor, and
recorded in volume _____, page _____ of the real property records of Ward
County, Texas, and in the document entitled “Assignment, and Bill of Sale,” from
Firecreek Petroleum, Inc. to Ginzoil, Inc. and recorded in volume ___, page ____
of the real property records of Ward County, Texas and in the document entitled
“Assignment and Bill of Sale” from Success Oil Co., Inc. to Firecreek Petroleum,
Inc. and recorded in volume 832, page 181 of the real property records of Ward
County, Texas, and in the document entitled “Agreement, Assignment, and Bill of
Sale,” from Success Oil Co., Inc. to Firecreek Petroleum, Inc., and recorded in
volume 838, page 253 of the real property records of Ward County, Texas
(collectively, the “Assignments”).

This assignment shall constitute a security agreement under the Uniform
Commercial Code of Texas, and shall be deemed to be covered by any financial
statement now or subsequently in effect regarding the Leases.  The purpose of
this assignment is to further secure a certain promissory note dated May 9, 2011
payable by Assignor to Assignee, as well as all other indebtedness owed or that
may in the future be owed by Assignor to Assignee (the “Indebtedness”).  This
assignment is intended to supplement that document entitled “Security Agreement”
executed between the parties on May 98, 2011.

Assignor warrants and represents to Assignee, that:

(a)  the Assignments accurately set forth all of the rights and obligations of
Assignor relating to the Leases, and the Assignments have not been amended,
terminated, or otherwise modified, and is presently in full force and effect,

(b)  at the time of this assignment, there are no other prior assignments,
pledges, or hypothecations of Assignor’s rights under the Leases other than to
Assignee, and Assignor holds full and complete power and authority to transfer,
pledge, and assign its rights under the Leases to Assignee free and clear of the
rights of any third party,

(c)  the lessors under the Leases have no offsets, counterclaims, or other
defenses to Assignor’s rights to the Leases, and

(d)  Assignor knows of no fact or defense that will cause Assignor’s interest in
the Leases to become forfeitable or otherwise subject to forced sale.
 
 
 

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Upon any default (an “Event of Default”) by Assignor under the terms of this
assignment, the Indebtedness, any security agreement or other instrument or
document executed in connection with the Indebtedness, or the Leases, Assignor
hereby appoints Assignee as its attorney-in-fact and authorizes and empowers
Assignee, following five calendar days’ notice to Assignor, delivered to
Assignor via FedEx, E-mail, or certified mail, either in the name of Assignee or
in the name of Assignor, for the use and benefit of Assignee, to perform any of
the obligations of Assignor under the Leases and receive all benefits which
Assignor may be entitled under the Leases.  All costs, expenses, and liabilities
incurred and payments made by Assignee as such agent and attorney-in-fact shall
be considered sums advanced for the benefit of Assignor, shall bear interest at
the highest lawful rate, and shall be additionally secured by this assignment.

Until all amounts evidenced by the Indebtedness are paid in full, Assignor
agrees not to amend, modify, terminate, or breach the Leases, without the prior
written consent of Assignee, and will fully and timely perform each and every
covenant of Assignor set forth in the Leases.

Upon the expiration of five calendar days following the occurrence of an Event
of Default as set forth above, or an Event of Default under or with respect to
any instrument or document executed in connection with the Indebtedness, and
subject to any applicable cure period, this assignment shall become absolute;
otherwise, however, this assignment shall terminate upon payment in full of the
Indebtedness and the full performance by Assignor of all other terms and
conditions set forth in this assignment.

No remedy conferred upon or reserved to Assignee in this assignment is intended
to be exclusive of any other remedy or remedies, and each and every such remedy
shall be cumulative and shall be in addition to every other remedy given under
this assignment, or now or subsequently existing at law or in equity or by
statute.

This assignment and all covenants and agreements contained in this assignment
shall bind and inure to the benefit of the parties to this assignment, their
respective heirs, executors, administrators, successors, and assigns.

The law governing this secured transaction shall be the laws of the State of
Arizona, without regard to conflict of laws principles, regardless of the
location of the collateral; provided, however, that the Uniform Commercial Code
as adopted by the State of Texas may provide the method of perfection, the
effect of perfection or non-perfection, or the priority of liens and security
interest created under this assignment.
INTENTIONALLY LEFT BLANK
 
 
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EXECUTED this 9th day of May, 2011.

ASSIGNOR:    ASSIGNOR:
ENERGY PRODUCERS INC
 
EGPI FIRECREEK, INC.
     
/s/Dennis R. Alexander
 
/s/Dennis R. Alexander
by:
   
by:
   
name: Dennis R. Alexander
 
name: Dennis R. Alexander
title: CEO
 
title: CEO
6564 Smoke Tree Lane
 
6564 Smoke Tree Lane
Scottsdale, Arizona 85253
  
Scottsdale, Arizona 85253

 
ASSIGNEE:

TWL Investments a LLC.
     
/s/Larry W. Trapp
 
by:
   
name: Larry W. Trapp
 
title: Managing director
     
3415 W. Pershing
 
Phoenix, AZ 85029
 

  
THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

ASSIGNOR:
 
ASSIGNOR:
     
ENERGY PRODUCERS INC
 
EGPI FIRECREEK, INC.
/s/Dennis R. Alexander
 
/s/Dennis R. Alexander
by:
     
by:
   
name: Dennis R. Alexander
 
name: Dennis R. Alexander
title: CEO
 
title: CEO
6564 Smoke Tree Lane
 
6564 Smoke Tree Lane
Scottsdale, Arizona 85253
  
Scottsdale, Arizona 85253

 
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ASSIGNEE:

TWL Investments a LLC.

/s/Larry W. Trapp
 
by:
   
name: Larry W. Trapp
 
title: Managing director
 
3415 W. Pershing
 
Phoenix, AZ 85029
 

STATE OF
§
 
§
COUNTY OF
§

This instrument was acknowledged before me on the _____ day of _______________,
2011, by Dennis R. Alexander, CEO of Energy Producers Inc. and EGPI Firecreek
Inc., on behalf of said corporations.

 
Notary Public in and for
 
the _____________ of ____________________

 
My Commission Expires:
 

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STATE OF    _________________
§
   
§
 
COUNTY OF _________________
§
 

 
This instrument was acknowledged before me on the _____ day of _______________,
2011, by Larry W. Trapp, Managing Director of TWL Investments a LLC, on behalf
of said limited partnership.
 

 
Notary Public in and for
 
the                          of

My Commission Expires:
 
after recording, return to:
 
 
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EXHIBIT “A”

 
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Exhibit “B”
 
Security Agreement

 
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