----

|   | a. | DUTIES.      During the Period of Appointment, Swinford shall be employed by the      Company and serve as its “Chairman of the Board and      Vice-President.”  In such capacities, Swinford will perform such      services as are customary for a chairman of the board and      vice-president.  Nothing herein is intended to restrict the      duties of Swinford or limit him from serving in such other executive      officer positions as the Board of Directors deems    appropriate. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | SCOPE.      During the Period of Appointment, and excluding any periods of vacation      and sick leave to which the office of Vice-President is entitled, Swinford      shall devote full time and attention to the affairs of the      Company. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | ANNUAL      SALARY. Annual salary shall be set at $132,000.00 per annum payable in      regular installments but in no event less often than    monthly. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | ANNUAL      INCREASES.  Swinford’s annual salary will be increased in an      amount to be determined by the Board of the Company or a Committee of the      Board of the Company, but in no event shall such increases be in an amount      less than ten percent (10%). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | BONUSES.  Swinford      may participate in any and all bonus plans established by the Board or a      Committee of the Board. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | INCENTIVE      SHARES.  At the end of each calendar year (December 31) during      the Period of Appointment and the end of each subsequent year or, at      Swinford’s option, within thirty (30) days thereafter, the Company will      issue to Swinford the number of shares necessary to provide to Swinford      five percent (5%) of the issued and outstanding common stock of the      Company (excluding any shares of common stock issuable to other executives      of the Company as a result of incentive share clauses of such executives’      employment agreements).  As a result, on December 31, 2009 and      each year thereafter during the Period of Appointment, subject to the      termination provisions of Section 6 or, at Swinford’s option, within 30      days thereafter, the Company will issue Swinford shares of common stock      equal to five percent (5%) of the then total issued and outstanding common      stock of the Company (excluding any shares of common stock issuable to      other executives of the Company as a result of incentive share clauses of      such executives’ employment agreements).  Such shares will be      subject to any and all restrictions appropriate or necessary to comply      with state or federal registrationrequirements. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | REGULAR      REIMBURSED BUSINESS EXPENSES. The Company shall promptly reimburse      Swinford for all expenses and disbursements reasonably incurred by      Swinford in the performance of his duties hereunder during the Period of      Appointment. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | c. | BENEFIT      PLANS.  Swinford and his eligible family members shall be      entitled to participate immediately (except for any Company plan which      includes or requires a waiting period, in which event Swinford shall be      entitled to participate as soon as he is eligible under the terms of such      plan), on terms no less favorable to Swinford than the terms offered to      other employees, in any group and/or executive life, hospitalization or      disability insurance plan, health program, vacation policy, pension,      profit sharing, ESOP, 401(k) and similar benefit plans (qualified,      non-qualified and supplemental) or other fringe benefits that may be      offered by the Company as approved by the Board of Directors from time to      time. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | HEALTH      INSURANCE.  The Company shall provide Swinford and his wife,      whether or not he remains employed by the Company, health insurance until      the end of the Period of Appointment or he is eligible for Medicare      benefits, whichever is later. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | PERQUISITES.      The Company shall provide Swinford at least such perquisites as are      commonly provided to other executives of the Company and are commiserate      with his Appointment. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | GENERAL.  Swinford’s      employment hereunder shall commence on the Effective Date and continue      until the end of the term specified in section 2 above, except that the      employment of Swinford hereunder shall terminate prior to such time in      accordance with the following: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | DEATH      OR DISABILITY.  Upon Swinford’s death during the term of his      employment hereunder or, at the option of the Company, in the event of      Swinford’s disability, upon thirty (30) days notice to      Swinford. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | FOR      CAUSE.  For “Cause” immediately upon written notice by the      Company to Swinford.  A termination for Cause shall      mean: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | the      commission of an intentional act of dishonesty, fraud, misrepresentation,      misappropriation, or embezzlement by Swinford which has a material      detrimental impact on the Company; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Swinford’s      unauthorized use or disclosure of any Confidential Information or trade      secrets of the Company which has a material detrimental impact on the      Company; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | a      significant violation by Swinford of a law or regulation applicable to the      Company’s business, which has a material detrimental impact on the Company      and which the Board of the Company reasonably determines does or is      reasonably likely to cause material injury to the  Company; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (4) | Swinford’s      indictment of, or conviction of, or plea of nolo contendere or      guilty to a felony or any other crime which involves moral      turpitude; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Swinford’s      continued failure, in the reasonable discretion of the Board, to perform      the principal duties, functions and responsibilities of his position      (other than any such failure resulting from Swinford’s disability) or to      follow the directives of the Board after written notice from the Company      identifying the deficiencies in performance and a reasonable cure period      of not less than thirty (30) days of any breach capable of cure; gross      negligence or willful misconduct in the performance of Swinford’s duties;      or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | a      material and willful breach of Swinford’s fiduciary duties to the      Company. |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | iii. | WITHOUT      CAUSE.  Without Cause upon thirty (30) days written notice by      the Board of Directors to Swinford or upon Swinford to the Board of      Directors.  If Swinford terminates the Agreement for any reason,      he shall have no liability to the Company or its subsidiaries or      affiliates as a result thereof. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv. | CONSTRUCTIVE      TERMINATION.  Upon Swinford’s Constructive      Termination.  Constructive Termination of Swinford’s employment      with the Company will be deemed to have occurred if Swinford terminates      his employment with the Company within six (6) months following the date      on which: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | the      Company demotes Swinford to a lesser position, either in title or      responsibility; |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | (2) | the      Company decreases Swinford’s pay below the highest level in effect at any      time Swinford’s employment with the Company or reduces Swinford’s benefits      below the levels in effect during Swinford’s employment with the Company      (other than as a result of any amendment or termination of any group or      other executive benefit plan, which amendment or termination is applicable      to all executives of the Company or any inadvertent reduction in benefits      that Company cures within thirty (30) days after receiving written notice      of such reduction); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | the      Company requires Swinford to relocate to a principal place of business      more than fifty (50) miles from the principal place of business occupied      by Company as of the date hereof; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (4) | the      Company is subject to a Change in Control, unless Swinford accepts an      appointment or employment with a successor to the Company;    or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | the      Company breaches any material term of this Agreement which is not cured by      the Company within ten (10) days after receiving written notice of such      breach. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | OBLIGATIONS      OF THE COMPANY UPON TERMINATION.  The following provisions      describe the obligations of the Company to Swinford under this Agreement      upon termination of his Appointment.  However, except as      explicitly provided in this Agreement, nothing in this Agreement shall      limit or otherwise adversely affect any rights which Swinford may have      under applicable law, under any other agreement with the Company, or under      any compensation or benefit plan, program, policy or practice of the      Company. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | TERMINATION      BY THE COMPANY FOR CAUSE OR RESIGNATION WITHOUT CAUSE.  In the      event this Agreement terminates by reason of the Company’s termination of      Swinford’s Appointment for Cause or because of Swinford’s resignation      Without Cause, the Company shall: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Pay      to Swinford within ten (10) days any amount of Compensation (as enumerated      in section 4 above) earned but not yet paid;and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Provide      Swinford’s health insurance as obligated in section 5(d)      above. |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | ii. | TERMINATION      BY THE COMPANY WITHOUT CAUSE, OR CONSTRUCTIVE TERMINATION.  In      the event this Agreement terminates by reason of the Company’s termination      of Swinford’s Appointment Without Cause or Swinford is Constructively      Terminated, the Company shall: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Pay      to Swinford in a lump sum within ten (10) days the remaining amount of      Compensation provided for in section four (4) above through the end of the      Period of Appointment including any minimum annual increases and bonuses      and an additional one hundred thousand dollars  ($100,000); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Provide      Swinford’s health insurance as obligated in section 5(d) above;      and |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (3) | Issue      to Swinford the Incentive Shares provided for in section 5 above at the      end of any years which remain of the Period of Appointment (or at      Swinford’s election, within thirty (30) days thereafter) the appropriate      number of shares for each year. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | TERMINATION      BY DEATH OR DISABILITY OR SWINFORD’S RESIGNATION FOR CAUSE.  In      the event this Agreement terminates by reason of Swinford’s Death or      Disability or because of Swinford’s resignation For Cause, the Company      shall: |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (1) | Pay      to Swinford or his estate the remaining amount of Compensation provided      for in section 4 above through the end of the Period of      Appointment; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Provide      Swinford’s health insurance as obligated in section 5(d) above;      and |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (3) | Issue      to Swinford the Incentive Shares provided for in section 5 above at the      end of any years which remain of the Period of Appointment (or at      Swinford’s election, within thirty (30) days thereafter) the appropriate      number of shares for each year. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | MITIGATION.  In      no event shall Swinford be obligated to seek another appointment or      employment or take any other action by way of mitigation of the amounts      payable to the Swinford under any of the provisions of this      Agreement.  Any severance benefits payable to Swinford shall not      be subject to reduction for any compensation received from another      appointment or employment. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | CHANGE      OF CONTROL.  For purposes of this Agreement, Change of Control      shall be deemed to have occurred (i) if more than 33% of the voting shares      of the Company are acquired by a third party in a plan of reorganization,      merger and/or consolidation or (ii) if majority voting control of the      Company is acquired by any person other than Swinford and/or      Tynon.  For purposes of this Agreement, Change in Control does      not include the stock distribution as is provided for and described in the      Registration Statement the Company has on file with the Securities and      Exchange Commission (and amendments thereto) as of the Effective Date of      this Agreement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | INVENTIONS      DEFINED.  “Inventions” includes all rights to discoveries,      inventions, improvements, designs and innovations (including all data and      records pertaining thereto) that relate to the business of the Company,      whether or not patentable, copyrightable or reduced to writing, that      Swinford may discover, invent or originate during the term of his      employment hereunder, either alone or with others and whether or not      during working hours or by use of the facilities of the      Company. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | SWINFORD      TO RETAIN RIGHTS.  Swinford is to retain or maintain any and all      rights to Inventions. |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | c. | COMPANY      TO LICENSE.  In connection with entering into the Prior      Agreement, Swinford granted to the Company a license to use his      inventions.  The licensing agreement previously entered will      continue to be in effect and is attached hereto as Exhibit    A. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d. | WAIVER      OF ROYALTIES.  In connection with entering into the Prior      Agreement, Swinford agreed to waive any and all royalties due to him by      the Company throughout his Appointment under the Prior      Agreement.  Swinford hereby agrees to continue to waive any and      all royalties due to him by the Company during his term of employment by      the Company under this Agreement as provided in the Waiver of Royalties      Agreement entered into in connection with the Prior Agreement and which is      attached hereto as Exhibit B. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | ACKNOWLEDGMENT      OF PROPRIETARY INTEREST.  Swinford agrees that all Confidential      Information learned by him during his employment with the Company, whether      developed by Swinford or in conjunction with others or otherwise, is and      shall remain the exclusive property of the  Company. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | CONFIDENTIAL      INFORMATION DEFINED.  “Confidential Information” means all      confidential and proprietary information of the Company, to the extent      such property is the property of the Company and not the property of      Swinford or another, and that is not otherwise publicly      available.  “Confidential Information” does not include the      “Inventions” referenced in section 8.  Without limited the      foregoing, Confidential Information includes the  following: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | Information      derived from reports, investigations, experiments, research and work in      progress, |
|--------|----|---------------------------------------------------------------------------------------------------------|

|   | ii. | Methods      of operation, |
|--------|-----|----------------------------|

|   | iii. | Marketing      data, |
|--------|------|----------------------|

|   | iv. | Proprietary      computer programs and codes, |
|--------|-----|-----------------------------------------------|

|   | v. | Drawings      designs, plans and proposals, |
|--------|----|---------------------------------------------|

|   | vi. | Marketing      and sales programs, |
|--------|-----|------------------------------------|

|   | vii. | Client      lists, |
|--------|------|--------------------|

|   | viii. | Historical      financial information and financialprojections, |
|--------|-------|-----------------------------------------------------------------|

|   | ix. | Pricing      formulae and policies, |
|--------|-----|-------------------------------------|

|   | x. | All      other concepts, ideas, materials and information prepared or performed for      or by the Company, and |
|--------|----|-----------------------------------------------------------------------------------------------------------------|

|   | xi. | All      information related to the business, products, purchases or sales of the      Company and any of its suppliers andcustomers. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | COVENANT      NOT TO DIVULGE CONFIDENTIAL INFORMATION.  The Company is      entitled to prevent the disclosure of Confidential      Information.  The Company agrees to and will provide      Confidential Information to Swinford at the inception of his employment      and Swinford acknowledges and agrees that, during the course of his      employment he will be exposed to, have access to, and gain knowledge of      Confidential Information.  As a portion of the consideration for      the employment of Swinford and for the compensation being paid to him      hereunder and thereafter to hold in strict confidence and not to disclose      or allow to be disclosed or made available to any person, firm or      corporation, other than to his professional advisors (who have the      obligation to maintain the confidentiality of such information) and to      persons engaged by the Company to further the business of the Company, and      not to use except in the pursuit of the business of the Company, the      Confidential Information, without the prior written consent of the      Company. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d. | RETURN      OF MATERIALS.  In the event of any termination or cessation of      his employment with the Company for any reason, or request by the Company      at anytime, Swinford shall promptly deliver to the Company all documents,      data and other information derived from or otherwise pertaining to      Confidential Information.  Swinford shall not take or retain any      documents or other information, or any reproduction or excerpt thereof,      containing or pertaining to any Confidential  Information. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | NOTICES.  All      notices and other communications hereunder shall be in writing or by      written telecommunication, and shall be deemed to have been duly given      upon delivery if delivered personally or via written telecommunication, or      five days after mailing if mailed by certified mail, return receipt      requested or by written telecommunication, to the relevant address set      forth below, or to such other address as either of the parties shall have      furnished to the other in writing in accordance  herewith: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| If to the Company, addressed      to:      | If to the Jerry Swinford addressed      to: |
|--------------------------------------------|---------------------------------------------|
| Coil      Tubing Technology Holdings, Inc. | Jerry      Swinford                         |
| 19511      Wied Road, Suite E              | 19511      Wied Road, Suite E               |
| Spring,      TX 77388                      | Spring,      TX77388                        |

|   | b. | WITHHOLDING.  All      payments required to be made to Swinford by the Company under this      Agreement shall be subject to withholding, at the time payments are      actually made to Swinford and received by him, of such amounts, if      any,  relating to federal, state and local taxes as may required      by law. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | TAXES.  In      the event that the aggregate of all payments or benefits made or provided      to, or that may be made or provided to, Swinford under this Agreement and      under all other plans, programs and arrangements of the Company (the      “Aggregate Payment”) are determined to constitute a “parachute payment” or      some other category of payment which results in special tax treatment,      Swinford and the Company shall cooperate with each other in connection      with any proceeding or claim relating to the existence or amount of      liability for the payment, and all expenses incurred by Swinford in      connection therewith shall be paid by the Company promptly upon notice of      demand from Swinford. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | REIMBURSEMENT      OF LEGAL EXPENSES.  In the event that Swinford is successful,      whether in mediation, arbitration or litigation, in pursuing any claim or      dispute involving Swinford’s Appointment with the Company, including any      claim or dispute relating to (a) this Agreement, (b) termination of      Swinford’s Appointment with the Company or (c) the failure or refusal of      the Company to perform fully in accordance with the terms hereof, the      Company shall promptly reimburse Swinford for all costs and expenses      (including, without limitation, attorneys’ fees) relating solely, or      allocable, to such successfulclaim. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | e. | LAW      GOVERNING.  This Agreement shall be governed under the laws of      the State of Texas. |
|--------|----|------------------------------------------------------------------------------------------------------------|

|   | f. | SEVERABILITY.  If      any provision hereof is held invalid or unenforceable by a court of      competent jurisdiction, such invalidity shall not affect the validity or      operation of any other provision and such invalid provision shall be      deemed to be severed from theAgreement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | WAIVERS.  No      delay or omission by either party in exercising any right, power or      privilege hereunder shall impair such right, power or privilege, nor shall      any single or partial exercise such right, power or privilege preclude any      further exercise thereof or the exercise of any other right, power or      privilege. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | COUNTERPARTS.  This      Agreement may be executed in multiple counterparts, each of which shall be      deemed an original, and all of which together shall constitute one and the      same document. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | CAPTIONS.  The      captions in this Agreement are for convenience of reference only and shall      not limit or otherwise affect any of the terms of provisions      hereof. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j. | REFERENCE      TO AGREEMENT.  Use of the words “herein, “hereof,” “hereto,”      “hereunder” and the like in this Agreement refer to this Agreement only as      a whole and not to any particular section or subsection of this Agreement,      unless otherwise noted. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k. | SUCCESSORS.  This      Agreement shall be binding on and shall inure to the benefit of the      parties hereto, their heirs, administrators, successors, and      assigns. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l. | ASSIGNABILITY.  This      Agreement and the rights and obligations thereunder may not be assigned by      any act of either party or by operation of law without the prior written      consent of each party.  However, the Company may fulfill its      obligation to compensate Swinford through one or more of its wholly owned      subsidiaries. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | m. | GENDER      AND NUMBER.  The masculine gender shall be deemed to denote the      feminine or neuter genders, the singular to denote the plural, and the      plural to denote the singular, where the context so    permits. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| COIL      TUBING TECHNOLOGY HOLDINGS, INC.                      | JERRY      SWINFORD              |
|-----------------------------------------------------------------|----------------------------------|
|                                                            |                             |
|                                                            |                             |
|                                                            |                             |
| By:      /s/ Charles Wayne      Tynon                           | By:      /s/ Jerry      Swinford |
| Charles      Wayne Tynon, President and Chief Executive Officer | JERRY      SWINFORD              |
|                                                            |                             |
|                                                            |                             |

----