EXHIBIT 10.11
 
 
     
    
    State and Local Taxes
    
    Federal Excise Tax (FET)
    
    Federal Highway Use Tax (FHUT)
    
    State Highway Use and Fuel Taxes
    
    Property Taxes
 Sales Tax and Federal Excise Tax
  Federal Highway Use Tax (FHUT)
  Other Taxes




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##### 



Payments
 Note:
 Automated
Truck Payment (ATP) save you time voided Note:
   
 PACCAR Financial Corp.
3805 Crestwood Parkway, Suite 300 Duluth, GA 30096 Phone: (770) 638-3880 / Fax: (770) 638-3772
 Temporary Coupon
 No.
    
    Account Number
    
    Due Date
    
    Amount Due
    
    Installment1
    
    900-681-600-00006070502
    
    Nov 15,10
    
    $5,637.39
    
    Loan CreditLATE
CHARGES
    
    
    
    FOR PROPER
CREDIT
RETURN THISCOUPONWITH YOURPAYMENTFrancis Drilling Fluids Ltd
    
    ADDITIONALIF YOU HAVE ANY QUESTIONS CALL: (770) 638-3880
    
    PAYMENTTOTAL
PAYMENT
 PACCAR Financial Corp. 
PO Box 530491
Atlanta, GA 30353-0491
    
    (PACCAR FINANCIAL LOGO)
 90068160000006070502 15801 000563739




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Account Information
 Account Number
    
    Equipment
    
    Due Date900-681-600-00006070502
    
    Peterbilt VIN: 1XPWDU9X1BD127498
    
    Nov 15, 10900-681-600-00006070502
    
    Peterbilt VIN: 1XPWDU9X3BD127499
    
    Nov 15, 10900-681-600-00006070502
    
    Peterbilt VIN: 1XPWDU9X6BD127500
    
    Nov 15, 10




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##### 



(PACCAR FINANCIAL LOGO)
    
    AUTOMATIC TRUCK PAYMENT
AUTHORIZATION AGREEMENT
    PLEASE TYPE OR PRINT
 THIS AUTHORIZATION IS FOR:
    
    o NEW ATP SET-UP
    
    o BANK ACCT CHANGE
    
    o EXISTING ATP CUSTOMERNAME(S) ON PFC ACCOUNT:
    
    
    
    FEDERAL TAX ID NO. (SOCIAL SECURITY NO. FOR AN INDIVIDUAL):Francis Drilling Fluids LtdYOUR ACCOUNT NUMBER(S) WITH PFC900-681-600-00006070502NAME(S) ON BANK CHECKING ACCOUNT
    
    
    
    
    
    o BUSINESS CHECKINGTHIS ACCOUNT IS:o PERSONAL CHECKINGBANK CHECKING ACCOUNT NUMBER:BANK NAME:BANK CITY, STATE:
  SIGNATURE:
    
    DATE:PFC USE ONLYOTHER ACCOUNT SIGNATURE (IF APPLICABLE):
    
    DATE:
    
    AREA OFFICE:REVIEWED BY:
 
    
    Please staple a VOID CHECK here. Deposit Slips are NOT acceptable.
    
    Keep a copy of this signed authorization form for your records.
    
    Mail the completed form to the PACCAR Financial Area Office serving your account.
 
  CAT. NO. 7605 OMS
    
    ORIGINAL FOR PACCAR FINANCIAL CORP.




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##### 



(PACCAR FINANCIAL LOGO)
    
    EQUIPMENT LEASE AGREEMENT
SCHEDULE A: RENTAL PAYMENTS
 PACCAR
Financial Corp. Francis Drilling Fluids, Ltd
 COMMENCEMENT DATE:
    
    TERM OF
LEASE(NO. OF MONTHS):
    
    LOCATION OF THE EQUIPMENT:October 15, 2010
    
    
    60
    
    
    240 Jasmine Rd., Crowley, LA 70526STATE OF JURISDICTION:
    
    STATE TITLING EQUIPMENT:
    
    BASE PLATE REGISTRATION (STATE, COUNTY, CITY):Louisiana
    
    Louisiana
    
    Louisiana, Acadia, Crowley
 DESCRIPTION OF EQUIPMENTVEHICLE IDENTIFICATION
    
    * TAXABLE
    
    SCHEDULE A
    
    
    MONTHLYYEAR
    
    MAKE
    
    MODEL
    
    NUMBER
    
    GROSS WEIGHT
    
    VALUE
    
    
    RENTAL PMT2011
    
    Peterbilt
    
    388
    
    1XPWDU9X1BD127498
    
    52000
    
    $
    109,941.50
    
    
    $
    1,716.102011
    
    Peterbilt
    
    388
    
    1XPWDU9X3BD127499
    
    52000
    
    
    109,941.50
    
    
    
    1,716.102011
    
    Peterbilt
    
    388
    
    1XPWDU9X6BD127500
    
    52000
    
    
    109,941.50
    
    
    
    1.716.10
 
 *
    
    The reported taxable gross weight must be no more than the highest gross weight declared for any
purpose including registering a vehicle in a state. MONTHLY RENTALS1. Schedule A Value (Total Equipment Cost)
    
    
    
    
    
    $
    329,824.502 Adjustments
    
    
    
    
    
    
    0.003. Adjusted Schedule A Value
    
    
    
    
    
    
    329.824.504. Base Monthly Value
    
    
    
    
    
    
    5,148.305. Tax AdditionsState           Louisiana
    
    
    4.0000
    %
    
    
    205.93County      Acadia
    
    
    3.0000
    %
    
    
    154.45City            Crowley
    
    
    2.5000
    %
    
    
    128.71ICC#
    
    (If exempt from state & local taxes)6. Total Monthly Rentals
    
    
    
    
    
    $
    5,637.39AMOUNT DUE AT DELIVERY1. Advance Rentals1 @ $5,637.39
    
    
    
    
    
    $
    5,637.392. Security Deposit (refundable)
    
    
    
    
    
    
    0.003. Interim Rent (Extra Days)
    
    
    
    
    
    
    0.004. License, Title, UCC & Registration
    
    
    
    
    
    
    0.005. Other
    
    
    
    
    
    
    0.006. Document Preparation Fee
    
    
    
    
    
    
    100.007. Total Amount Due at Delivery
    
    
    
    
    
    $
    5,737.39Advance rental payment and interim rent are due at delivery, thereafter monthly rental payments are due on the same day of each month beginning November 15, 2010.
 LESSOR:
    
    PACCAR Financial Corp.
    
    LESSEE:
    
    Francis Drilling Fluids, LtdBY:
    
    /s/ Laura Mantell
    
    BY:
    
    /s/ Michael FrancisMichael FrancisTITLE: Sr. Contract Administrator
    
    
    
    TITLE: PresidentDATE  October 15, 2010
    
    
    
    DATE  October 15, 2010




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##### 



(PACCAR FINANCIAL LOGO)
    
    TERMINAL RENTAL ADJUSTMENT CLAUSE
 PACCAR Financial Corp. Francis
Drilling Fluids, Ltd
 DESCRIPTION OF EQUIPMENTYEAR
    
    MAKE
    
    MODEL
    
    VEHICLE IDENTIFICATION NUMBER
    
    TRAC VALUE2011
    
    Peterbilt
    
    388
    
    1XPWDU9X1BD127498
    
    $
    21,988.302011
    
    Peterbilt
    
    388
    
    1XPWDU9X3BD127499
    
    
    21,988.302011
    
    Peterbilt
    
    388
    
    1XPWDU9X6BD127500
    
    
    21,988.30
   LESSOR:
    
    PACCAR Financial Corp.
    
    LESSEE:
    
    Francis Drilling Fluids, LtdBY:
    
    /s/ Laura Mantell
    
    BY:
    
    /s/ Michael FrancisMichael FrancisTITLE: Sr. Contract Administrator
    
    
    
    TITLE: PresidentDATE  October 15, 2010
    
    
    
    DATE  October 15, 2010
 REQUIRED STATEMENT BY LESSEE:
  (i)
    
    Lessee intends that more than 50% of the use of the Equipment subject to this
Modified TRAC Supplement
is to be used in a trade or business of the Lessee, and(ii)
    
    Lessee has been advised, and Lessee understands and agrees that Lessee will not be treated as the owner
of the Equipment identified above for Federal Income Tax purposes.
 LESSEE: Francis Drilling Fluids, LtdBY:
    /s/ MICHAEL FRANCISMICHAEL FRANCIS, PRESIDENT




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##### 



(PACCAR LOGO)
    
    casualty andtermination schedule
 PACCAR Financial Corp. Francis Drilling Fluids, Ltd
 Period
    
    Date
    
    
    Percentage1
    
    
    11/15/10
    
    
    
    99.752
    
    
    12/15/10
    
    
    
    99.003
    
    
    1/15/11
    
    
    
    97.994
    
    
    2/15/11
    
    
    
    96.975
    
    
    3/15/11
    
    
    
    95.946
    
    
    4/15/11
    
    
    
    94.897
    
    
    5/15/11
    
    
    
    93.838
    
    
    6/15/11
    
    
    
    92.759
    
    
    7/15/11
    
    
    
    91.6610
    
    
    8/15/11
    
    
    
    90.5611
    
    
    9/15/11
    
    
    
    89.4412
    
    
    10/15/11
    
    
    
    88.3013
    
    
    11/15/11
    
    
    
    87.1514
    
    
    12/15/11
    
    
    
    85.9815
    
    
    1/15/12
    
    
    
    84.8016
    
    
    2/15/12
    
    
    
    83.6017
    
    
    3/15/12
    
    
    
    82.3918
    
    
    4/15/12
    
    
    
    81.1619
    
    
    5/15/12
    
    
    
    79.9320
    
    
    6/15/12
    
    
    
    78.6821
    
    
    7/15/12
    
    
    
    77.4422
    
    
    8/15/12
    
    
    
    76.1723
    
    
    9/15/12
    
    
    
    74.8924
    
    
    10/15/12
    
    
    
    73.6125
    
    
    11/15/12
    
    
    
    72.3126
    
    
    12/15/12
    
    
    
    71.0027
    
    
    1/15/13
    
    
    
    69.6828
    
    
    2/15/13
    
    
    
    68.3529
    
    
    3/15/13
    
    
    
    67.0030
    
    
    4/15/13
    
    
    
    65.6331
    
    
    5/15/13
    
    
    
    64.2632
    
    
    6/15/13
    
    
    
    62.8833
    
    
    7/15/13
    
    
    
    61.5034
    
    
    8/15/13
    
    
    
    60.1035
    
    
    9/15/13
    
    
    
    58.6836
    
    
    10/15/13
    
    
    
    57.2737
    
    
    11/15/13
    
    
    
    55.8438
    
    
    12/15/13
    
    
    
    54.3939
    
    
    1/15/14
    
    
    
    52.9440
    
    
    2/15/14
    
    
    
    51.4741
    
    
    3/15/14
    
    
    
    49.9942
    
    
    4/15/14
    
    
    
    48.4943
    
    
    5/15/14
    
    
    
    46.9944
    
    
    6/15/14
    
    
    
    45.4745
    
    
    7/15/14
    
    
    
    43.9646
    
    
    8/15/14
    
    
    
    42.4347
    
    
    9/15/14
    
    
    
    40.8848
    
    
    10/15/14
    
    
    
    39.3449
    
    
    11/15/14
    
    
    
    37.7750
    
    
    12/15/14
    
    
    
    36.1951
    
    
    1/15/15
    
    
    
    34.6152
    
    
    2/15/15
    
    
    
    33.0153
    
    
    3/15/15
    
    
    
    31.4054
    
    
    4/15/15
    
    
    
    29.7855
    
    
    5/15/15
    
    
    
    28.1656
    
    
    6/15/15
    
    
    
    26.5457
    
    
    7/15/15
    
    
    
    24.9258
    
    
    8/15/15
    
    
    
    23.2859
    
    
    9/15/15
    
    
    
    21.6460
    
    
    10/15/15
    
    
    
    20.00
 LESSOR: PACCAR Financial Corp.
    
    
    
    LESSEE: Francis Drilling Fluids, LtdBY:
    
    /s/ Laura Mantell
    
    
    
    BY:
    
    /s/ Michael FrancisMichael FrancisTITLE: Sr. Contract Administrator
    
    
    
    
    
    TITLE: PresidentDATE: October 15, 2010
    
    
    
    
    
    DATE: October 15, 2010




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##### 



(PACCAR LOGO)
    
    EQUIPMENT ACCEPTANCE ACKNOWLEDGMENT
 PACCAR Financial Corp. Francis Drilling Fluids, Ltd
 1.
    
    The Equipment leased under the above Equipment Lease Agreement
and the Schedule A
dated October 15, 2010
 (a) has been delivered to and, as of this date, is unconditionally accepted by the Lessee;(b) is in good condition (operating and otherwise) and repair;(c) is in full compliance with the terms of said Agreement;(d) is marked to show Lessors interest in the manner requested by the Lessor.
 2.
    
    Unless otherwise specified on any Schedule(s) the Commencement Date under any
Schedule(s) is, and the obligation of the Lessee to pay rental with respect to said
Equipment commences on, the date of this Acknowledgment.3.
    
    In the event that the Lessee shall at any time hereafter have any problems with said
Equipment, it will look solely to the manufacturer for satisfaction and will nevertheless
continue to pay rentals to Lessor free of any setoff, counterclaim or defense.
  Accepted as of this fifteenth day of October, 2010.
 LESSEE: Francis Drilling Fluids, LtdBY:
    /s/ Michael FrancisMichael FrancisTITLE:   President




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TO: INSURANCE COMPANY OR AGENT
    
    
    
    FROM: LESSEENAME: Louisiana Companies
    
    
    
    NAME: Francis Drilling Fluids, LtdADDRESS: 2201 W. Congress
    
    
    
    ADDRESS: 240 Jasmine RoadCITY,
STATE, ZIP: Lafayette, LA 70506
    
    
    
    CITY, STATE, ZIP: Crowley, LA 70526AGENT:
Annette Latiolais
    

PHONE NUMBER: 337-233-3932
  þ  LIABILITY*
    
    þ PHYSICAL DAMAGE
    

o POLLUTION LIABILITY *$1,000,000 minimum
combined single
limits per
occurrence.
    
    $5,000 maximum
deductible,
comprehensive (or
C.A.C.) and
collision.
    
    $minimum for
transportation of
hazardous materials.EXCEPTION
    
    EXCEPTION
    
    EXCEPTION
 
 *
    
    The insurance must be underwritten by an insurance company currently rated A- or better by A.M.
Best & Co. Territory limitation, commodity restrictions, or driver exclusions to the policy are not
allowed. PACCAR Financial Corp
 COMMENCEMENT
    
    
    
    
    
    
    
    
    
    
    
    VEHICLE INDENTIFICATION
    
    TERMDATE
    
    YEAR
    
    MAKE
    
    MODEL
    
    NUMBER
    
    (YEARS)10/15/2010
    
    
    2011
    
    
    Peterbilt
    
    
    388
    
    
    1XPWDU9X1BD127498
    
    
    5.0010/15/2010
    
    
    2011
    
    
    Peterbilt
    
    
    388
    
    
    1XPWDU9X3BD127499
    
    
    5.0010/15/2010
    
    
    2011
    
    
    Peterbilt
    
    
    388
    
    
    1XPWDU9X6BD127500
    
    
    5.00
 
   PACCAR Financial Corp.
    
    
    
    
    
By:
    /s/ Michael FrancisMichael FrancisADDRESS:
    
    P.O. Box 2374
    
    
    

    TITLE: PresidentCITY, STATE, ZIP:
    
    Denton, TX 76202
    
    
    

    DATE: October 15, 2010FAX:
    
    (425)468-8561




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##### 



PACCAR Financial Corp Francis Drilling Fluids, Ltd
   Individual Guarantor
    
    SocSecurityNo
    
    Address
    
    Phone/s/ Michael Francis
    
    ###-##-####
    
    240 Jasmine Rd
    
    xxx-xx-8685Michael Francis
    
    
    
    Crowley, LA 70526