| (a)   | Tangible Assets.  The tangible assets, equipment, and other fixed assets, including all, service tools, aids, manuals, schematics, diagnostics, machinery and office furnishings, owned, solely employed, or held for use in the conduct of the Business as well as the land and rights regarding the salt water disposal well (the “Tangible Assets”) (refer to Exhibit “B”); |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Business Records.  Any and all books, records, files, drawings, documentation, data, or information that have been or now are used in or with respect to, in connection with, or otherwise relating to the Business, including Sellers’ client lists with respect to the Assets (the “Business Records”) (refer to Exhibit “C”); and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (c)   | Permits.  All licenses, permits, authorizations, certificates, franchises, variances, waivers, consents and other approvals from any governmental entity relating to the Assets (the “Permits”) (refer to Exhibit “D”); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Purchase Price For the Assets. |
|----------------|--------------------------------|

| 3.   | Liabilities Assumed by Sellers. |
|----------------|---------------------------------|

| 4.   | Closing. |
|----------------|----------|

| A closing with respect to the transactions contemplated herein (the “Closing”) shall be held at the offices of Frontier Asset Management LLC, located at 3030 LBJ Freeway, Suite 1320, Dallas, Texas 75234 at 10 a.m. Central Standard Time on July 1, 2011 (the “Closing Date”). |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Transactions at Closing. |
|----------------|--------------------------|

| (a)   | At the Closing, Sellers shall deliver to Buyer all bills of sale, assignments, deeds and any and all other instruments of conveyance or other documents that may reasonably be required to transfer, assign, and convey to Buyer the Assets, free and clear of any liens, security interests, pledges, encumbrances, hypothecations, or claims of any kind. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   |  At the Closing, Buyer shall deliver to Sellers the Purchase Price in the form of cash, cashiers check or wire transfer. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Representations and Warranties of Sellers. |
|----------------|--------------------------------------------|

| (a)   | Sellers are duly organized entities, validly existing, and in good standing under the laws of the state in which they were incorporated.  Sellers have the corporate power to carry on the Business as it is now being conducted; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The execution, delivery, and performance of this Agreement by Sellers has been duly authorized by all necessary corporate action and will not result in the violation of any of Sellers’ Certificates of Formation or their company regulations; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (c)   | Sellers have clear, good, and marketable title to the Assets, free and clear of all liens, security interests, pledges, encumbrances, hypothecations or claims of any nature whatsoever; and the 59 Disposal Plant is free from any environmental damage or adverse claims by any environmental government authority; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Sellers have full authority to transfer their interest in and to the Assets, and no other person or entity has any record or beneficial equity interest in the Assets; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | The execution, delivery, and performance of this Agreement by Sellers (i) does not require the consent of any third party; (ii) will not violate any applicable law, judgment, order, injunction, decree, rule, regulation or ruling of any governmental authority to which Sellers are subject or by which Sellers are bound; and (iii) will not, either alone or with the giving of notice or the passage of time, or both, conflict with, constitute grounds for termination of, or result in a breach of the terms, conditions or provisions of, or constitute a default under, any material agreement, instrument, license, or permit to which Sellers are a party or to which Sellers are subject; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Sellers, their predecessors and affiliates have complied with all applicable laws (including rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder) of federal, state, local, and foreign governments (and all agencies thereof), and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand, or notice has been filed or commenced against any of them alleging any failure to comply; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Sellers have timely filed all Tax Returns [which shall mean any return or filing required or appropriate to file with the Internal Revenue Service or with the taxing authority of each state, county and other governmental entity in which Sellers do Business, including without limitation any required state franchise tax returns] that they were required to file.  All such Tax Returns were correct and complete in all respects.  All taxes, including without limitation all franchise, withholding and payroll taxes, owed by Sellers (whether or not shown or required to be shown on any Tax Return) have been paid, and Sellers shall remain liable for all taxes that accrue up until the time of Closing; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | Sellers make no representation or warranty, express or implied, at law or in equity, with respect to any of its assets (including, without limitation, the Assets), liabilities, or operations, including, without limitation, with respect to merchantability or fitness for any particular purpose, and any such other representations or warranties are hereby expressly disclaimed.  BUYER HEREBY ACKNOWLEDGES AND AGREES THAT, EXCEPT TO THE EXTENT SPECIFICALLY SET FORTH IN THIS SECTION 6, BUYER IS PURCHASING THE ASSETS ON AN “AS-IS, WHERE-IS” BASIS.  WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, SELLERS MAKE NO REPRESENTATION OR WARRANTY REGARDING ANY ASSETS OTHER THAN THE ASSETS (AS DEFINED HEREIN) OR ANY LIABILITIES OTHER THAN THE ASSUMED LIABILITIES IN SECTION 3, AND NONE SHALL BE IMPLIED AT LAW OR IN EQUITY. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Representations and Warranties of Buyer. |
|----------------|------------------------------------------|

| (a)   | Buyer is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of Texas.  Buyer has the corporate power to carry on its business as it is now is being conducted; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The execution, delivery, and performance of this Agreement by Buyer has been duly authorized by all necessary corporate action and will not result in the violation of Buyer’s Certificate of Formation or its company agreement; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | The execution, delivery, and performance of this Agreement by Buyer: (i) does not require the consent of any third party; (ii) will not violate any applicable law, judgment, order, injunction, decree, rule, regulation or ruling of any governmental authority to which Buyer is subject or by which Buyer is bound; and (iii) will not, either alone or with the giving of notice or the passage of time, or both, conflict with, constitute grounds for termination of, or result in a breach of the terms, conditions or provisions of, or constitute a default under, any material agreement, instrument, license, or permit to which Buyer is a party or to which Buyer is subject; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Buyer, its predecessors and affiliates have complied with all applicable laws (including rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder) of federal, state, local, and foreign governments (and all agencies thereof), and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand, or notice has been filed or commenced against any of them alleging any failure to comply. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 8.   | Notices. |
|----------------|----------|

| 9.   | Entire Agreement. |
|----------------|-------------------|

| 10.   | Amendments. |
|-----------------|-------------|

| 12.   | Expenses. |
|-----------------|-----------|

| 13.   | Public Announcements. |
|-----------------|-----------------------|

| 14.   | Further Assurances. |
|-----------------|---------------------|

| 15.   | Counterparts. |
|-----------------|---------------|

| 16.   | Severability. |
|-----------------|---------------|

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| 17.   | Governing Law And Choice Of Venue. |
|-----------------|------------------------------------|

| BUYER:                                                | SELLERS:                                         |
|-------------------------------------------------------|--------------------------------------------------|
|  Trinity Disposal & Trucking LLC             |  Pegasi Energy Resources Corporation        |
| By: Frontier Income and Growth, LLC, its Manager      |   By: _____________________________________ |
|                                                  | Richard Lindermanis, Senior Vice President       |
|   By: Frontier Asset Management LLC, its Manager |   59 Disposal, Inc.                         |
|   By: _____________________________________      |   By: _____________________________________ |
| Tim Burroughs, Manager and Member                     | Richard Lindermanis, Senior Vice President       |
|   By: _____________________________________      |   TR Energy Inc.                            |
| David York, Manager and Member                        | By: _____________________________________        |
|                                                  | W. L. Sudderth, Vice President                   |
|                                                  |                                             |
|                                                  | Marion Swamp Fox L.P.                            |
|                                                  |   By: _____________________________________ |
|                                                  | W. L. Sudderth, Vice President                   |