Document:

EXHIBIT 10.7

                  FIRST AMENDMENT TO THE OPERATING AGREEMENT OF
                              THREE FORKS NO 1 LLC
                     (A Colorado Limited Liability Company)

This  First  Amendment  to the  Operating  Agreement  for  Three  Forks No 1 LLC
(hereinafter "Company or LLC") is made and entered into this 1st day of January,
2013,  by and between all Members of the LLC who have  affixed  their  signature
hereto as of this date.

WHEREAS,

     A.   The Initial Owners entered into an operating  agreement  governing the
          operations of the LLC on November 8, 2012,  copy attached as Exhibit 1
          (hereinafter "Original Operating Agreement") and;
     B.   Pursuant with Article V of the Operating  Agreement,  it is the desire
          of the Members of the LLC that the Managers of the LLC be  compensated
          for their  services  and that the  Managers  have full,  complete  and
          unilateral  power  to  acquire  whatever  equipment  or  other  assets
          necessary to carry out the PERMITTED BUSINESS of the LLC and;
     C.   Pursuant  with  Article  VIII of the  Operating  Agreement,  it is the
          intent of the LLC to acquire the rights and  obligations  owned by the
          Manager in a certain Farmout  Agreement located in Archer County TX in
          an effort to develop  and  produce  an 87%  working  interest  in such
          property and;
     D.   Pursuant  with  Article  VIII of the  Operating  Agreement,  it is the
          desire of the LLC that  Additional  Owners  are  granted  the right to
          purchase  an Economic  Interest  in the LLC at the same  consideration
          granted to the Initial Owners and;
     E.   Pursuant with Article XIII of the Original Operating Agreement,  it is
          the desire of the  Members of the LLC that the  Managers  are  granted
          sole  authority to admit  Additional  Owners to the LLC subject to the
          terms and conditions of this Operating Agreement.

NOW,  THEREFORE,  in  consideration  of the foregoing and the mutual  agreements
contained  herein,  and  intending to be legally  bound,  the members  agree and
contract as follows:

1. Amendments to Original Operating Agreement:

ARTICLE  I --  DEFINITIONS  -- OF THE  ORIGINAL  OPERATING  AGREEMENT  IS HEREBY
AMENDED TO READ AS FOLLOWS PURSUANT TO THOSE DEFINITIONS AS STATED BELOW:

     "Capital  Contribution".".  The last sentence is hereby  changed to read in
     its entirety as follows:  "ADDITIONAL CAPITAL CONTRIBUTIONS" shall mean any
     additional  capital  contribution to the capital of the Company pursuant to
     this Operating Agreement and that is included in and apart of Exhibit B.

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<PAGE>
                                  EXHIBIT 10.7

     "Company".  This  Definition  is hereby  changed to read in its entirety as
     follows:  "COMPANY OR LLC" shall refer to this Colorado  limited  liability
     company.

     "Economic Interest Owner". This Definition is hereby changed to read in its
     entirety as follows:  "ECONOMIC  INTEREST OWNER" shall mean the owner of an
     economic interest.

ARTICLE  IV -- NAMES  AND  ADDRESSES  OF  OWNERS  -- OF THE  ORIGINAL  OPERATING
AGREEMENT IS HEREBY CHANGED TO READ IN ITS ENTIRETY AS FOLLOWS:

     The names and  addresses of the initial  Owners are as set forth in EXHIBIT
     "A" hereto which will be amended from time to time and set forth in EXHIBIT
     "B" as Additional Owners are admitted.

SECTION 5.12 OF THE ORIGINAL  OPERATING  AGREEMENT IS HEREBY  CHANGED TO READ IN
ITS ENTIRETY AS FOLLOWS:

     SALARIES.  The salaries and other  compensation  of Manager  shall be fixed
     from time to time by the Members  holding a  super-majority  of  two-thirds
     (2/3) of the Voting Interests in a duly constituted meeting of such, and no
     Manager shall be prevented from receiving such salary by reason of the fact
     that he is also a Member of the  Company.  As  compensation  for  acting as
     Manager, the Company shall pay from operations Three Forks, Inc. the sum of
     $16,000 per month.

SECTION 5.4 OF THE ORIGINAL  OPERATING  AGREEMENT IS HEREBY AMENDED TO DELETE IN
ITS ENTIRETY SECTION 5.4(C).

SECTION 6.4 OF THE ORIGINAL OPERATING AGREEMENT IS HEREBY CHANGED TO READ IN ITS
ENTIRETY AS FOLLOWS:

     APPROVAL  OF SALE OF  ASSETS.  The  Members  holding  a  super-majority  of
     two-thirds (2/3) of the Voting Interests shall have the right,  voting in a
     duly constituted meeting of such, to approve the sale,  exchange,  or other
     disposition of all, or substantially all, of the Company's assets.

SECTION 7.8 OF THE  ORIGINAL  OPERATING  AGREEMENT  IS HEREBY  AMENDED TO CHANGE
EXHIBIT "A" TO EXHIBIT "B".

SECTION 8.1 OF THE ORIGINAL OPERATING AGREEMENT IS HEREBY CHANGED TO READ IN ITS
ENTIRETY AS FOLLOWS:

     MANAGERS INITIAL CAPITAL CONTRIBUTIONS.
     Three  Forks,  Inc.  will  serve as Manager  but will not make any  Capital
     Contributions  to the LLC and will not  participate  in the revenues of the
     LLC.  The LLC will  enter  into a Purchase  and Sale  Agreement  with Three
     Forks, Inc. to acquire  eighty-seven  percent (87%) of the working interest
     held by the Manager in the Archer  County TX Farmout of nine (9) wells,  at

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                                  EXHIBIT 10.7

     the Manager's cost. As such, Three Forks, Inc. and its related parties will
     pay its costs to drill and complete the wells  related to its remaining and
     separate working interest in the Farmout.

SECTION 8.2 OF THE ORIGINAL OPERATING AGREEMENT IS HEREBY CHANGED TO READ IN ITS
ENTIRETY AS FOLLOWS:

     CAPITAL  CONTRIBUTIONS.  The Owners  shall make  Capital  Contributions  of
     $25,000 per unit in accordance  with the terms of this Operating  Agreement
     to capitalize the business of the Company. Each Member shall sign a Joinder
     Agreement as evidence of agreeing to the terms of this Operating Agreement.

ARTICLE  XIII --  ADDITIONAL  OWNERS -- OF THE ORIGINAL  OPERATING  AGREEMENT IS
HEREBY CHANGED TO READ IN ITS ENTIRETY AS FOLLOWS:

     13.1  ADMISSION OF ADDITIONAL  OWNERS.  From January 1, 2013 and thereafter
     and with the written consent of the Managers, any Person acceptable to such
     Managers  may,  subject  to the  terms  and  conditions  of this  Operating
     Agreement: (i) become an Additional Owner in this Company by the sale of an
     Economic Interest for such consideration  pursuant to section 8.2 hereof in
     this Operating  Agreement or (ii) become a Substitute Owner as a transferee
     of an Owner's  Economic  Interest or any portion thereof in accordance with
     the provisions of Article X.

     13.2  ALLOCATIONS TO ADDITIONAL  OWNERS.  No Additional or Substitute Owner
     shall be  entitled  to any  retroactive  allocation  of  income,  losses or
     deductions incurred by the Company.  The Manager may, at his option, at the
     time an  Additional or  Substitute  Owner is admitted,  close the Company's
     books  (as  though  the  Company's  tax  year had  ended)  or make pro rata
     allocations of income, losses and deductions to an Additional or Substitute
     Owner for that portion of the  Company's tax year in which an Additional or
     Substitute  Owner for that  portion of the  Company's  tax year in which an
     Additional  or  Substitute  Owner  was  admitted,  in  accordance  with the
     provisions  of Section  706(d)  and the  Treasury  Regulations  promulgated
     thereunder.

     13.3  ADDITIONAL  MEMBERS.   Notwithstanding  anything  contained  in  this
     Agreement to the contrary, an Additional Owner may become a Member with the
     written consent of the Managers.  Upon such approval,  the Voting Interests
     shall be reallocated among the existing Members and such additional Members
     in order to equal one hundred percent (100%).

2. All  capitalized  terms not  defined  in this First  Amendment  will have the
meaning ascribed to in the Original Operating Agreement.

3. Except as otherwise  provided  herein,  all other terms and conditions of the
Original Operating Agreement remain in full force and affect.

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                                  EXHIBIT 10.7

4. All LLC  Members  hereby  agree and  consent  to be bound by the terms of the
entire Operating Agreement encompassed by the original as modified by this First
Amendment.

IN WITNESS WHEREOF,  the Members of Three Forks No 1 LLC have duly executed this
First Amendment to the Original  Operating  Agreement pursuant with the terms of
section  15.5 hereof in the  Original  Operating  Agreement as of the date first
written above by executing that certain  Approval  Agreement  attached hereto as
Exhibit I.

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<PAGE>
                                  EXHIBIT 10.7

                                    EXHIBIT I

         APPROVAL OF THIS FIRST AMENDMENT TO THE OPERATING AGREEMENT OF
                              THREE FORKS NO 1 LLC

I (We) hereby attest that I (we) am (are) a Member of Three Forks No 1 LLC as of
January  1,  2013  and that by the  below  signature  have  approved  the  First
Amendment to the Original Operating  Agreement of Three Forks No 1 LLC effective
January 1, 2013.

--------------------------------                     -----------------------
(Name of Member)                                     Number of UnitsEXHIBIT 10.8

                          CERTIFICATE OF DESIGNATION OF
                       CLASS A CONVERTIBLE PREFERRED STOCK

                                       OF

                                THREE FORKS, INC.
                             A COLORADO CORPORATION

It is hereby certified that:

         1. The name of the Company  (hereinafter called the "Company") is Three
Forks, Inc., a Colorado corporation.

         2. The  Certificate  of  Incorporation  of the Company  authorizes  the
issuance of up to 25,000,000  shares of Preferred  Stock, no par value per share
(herein,  "Preferred Stock" or "Preferred  Shares"),  and expressly vests in the
Board of Directors of the Company the authority provided therein to issue any or
all of the  Preferred  Shares in One (1) or more  series  and by  resolution  or
resolutions  to  establish  the  designation  and number and to fix the relative
rights and preferences of each series to be issued.

         3. The Board of  Directors of the  Company,  pursuant to the  authority
expressly  vested in it as  aforesaid,  has  adopted the  following  resolutions
creating a Class A issue of Preferred Stock:

         RESOLVED,  that Five  Hundred  Thousand  (500,000)  of the Twenty  Five
Million  (25,000,000)  authorized shares of Preferred Stock of the Company shall
be designated Class A Preferred  Convertible  Stock, no par value per share, and
shall possess the rights and preferences set forth below:

         Section  1.  DESIGNATION  AND  AMOUNT.  The  shares  of the  series  of
Preferred  Stock hereby and herein created shall have no par value per share and
shall be  designated  as  Class A  Preferred  Convertible  Stock  (the  "Class A
Preferred  Convertible Stock") and the number of shares constituting the Class A
Preferred Convertible Stock shall be Five Hundred Thousand (500,000).  The Class
A Preferred  Convertible  Stock shall have a deemed  purchase price and value of
four dollars and fifty cents United States Dollars ($4.50) per share.

         Section 2. RANK.  The Class A Preferred  Convertible  Stock shall rank:
(i)  senior to any other  class or series  of  outstanding  Preferred  Shares or
series of capital stock of the Company, except Series A Preferred; (ii) prior to
all of the Company's  Common  Stock,  ("Common  Stock");  and (iii) prior to any
other class or series of capital stock of the Company  hereafter created "Junior
Securities");  and in each case as to distributions of assets upon  liquidation,
dissolution or winding up of the Company,  whether voluntary or involuntary (all
such distributions being referred to collectively as "Distributions").
<PAGE>
                                  EXHIBIT 10.8

         Section 3.  DIVIDENDS.  The Class A Preferred  Convertible  Stock shall
bear interest at the rate of five percent (5%) per annum payable quarterly.

         Section 4. SECURED LIQUIDATION / MERGER PREFERENCE.

                  (a) So long as a  majority  shares of Series A  Preferred  are
outstanding, the Company will not, without the written consent of the holders of
at least 51% of the Company's outstanding Series A Preferred, either directly or
by amendment, merger, consolidation, or otherwise:

                           (i) liquidate, dissolve or wind-up the affairs of the
Company,  or effect any  Liquidation  Event;  (ii) amend,  alter,  or repeal any
provision of the Certificate of  Incorporation  or Bylaws in a manner adverse to
the Series A Preferred  (iii) create or authorize  the creation of, or issue any
other security convertible into or exercisable for, any equity security,  having
rights, preferences or privileges senior to the Series A Preferred.

                  (b) In the event of any  liquidation,  merger,  dissolution or
winding up of the  Company,  either  voluntary  or  involuntary,  the holders of
shares of Class A Preferred  Convertible Stock (each a "Holder" and collectively
the  "Holders")  shall  be  entitled  to  receive,  prior in  preference  to any
distribution to Junior  Securities,  an amount per share equal to $4.50 plus any
allocable and due dividends per share,  which  liquidation  Preference  shall be
secured by all appropriate UCC filings, a Security Agreement and a Mortgage upon
all of the assets,  lands or  production of Company.  If upon the  occurrence of
such event,  the assets and funds available to be distributed  among the Holders
of the Class A Preferred  Convertible  Stock shall be insufficient to permit the
payment to such Holders of the full  preferential  amounts due to the Holders of
the Class A Preferred Convertible Stock, respectively,  then the assets securing
this  Liquidation  Preference of the Company legally  available for distribution
shall be  distributed  among the  Holders of the Class A  Preferred  Convertible
Stock,  pro rata,  based on the  respective  liquidation  amounts  to which such
series of stock is entitled by the Company's  Certificate of  Incorporation  and
any Certificate(s) of Designation relating thereto.

                  (c)  Upon  the  completion  of the  distribution  required  by
subsection  4(a), if assets remain in the Company,  they shall be distributed to
holders of Junior  Securities in accordance  with the Company's  Certificate  of
Incorporation including any duly adopted Certificate(s) of Designation.

         Section 5. CONVERSION OF PREFERRED SHARES TO COMMON. The record Holders
of the Class A Preferred  Convertible  Stock shall be subject to  conversion  as
follows:

                  (a) OPTION TO CONVERT. On and after one year from date hereof,
each record Holder of Class A Preferred  Convertible Stock shall be entitled (at
the times and in the amounts set forth  below),  at the office of the Company or
any transfer agent for the Class A Preferred Convertible Stock designated by the
Company to the Holders in writing (the "Transfer  Agent"),  to convert shares of
Class A Preferred  Convertible  Stock in whole or in part into Common  Stock (in
multiples of Ten (1) share of Class A Preferred Convertible Stock) as follows:

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                                  EXHIBIT 10.8

         The  Holders  of  the  Class  A  Preferred   Convertible  Stock  shall,
         individually and collectively, have the right to convert all or part of
         their Class A Preferred  Convertible Stock, by electing, in writing, to
         convert the Preferred Stock into shares of Common Stock of the Company,
         on the basis of a ratio of one to one,  subject to adjustment set forth
         in (g) hereafter upon tender of the Notice of Conversion.

                  (b)  MECHANICS  OF  CONVERSION.  In order to  convert  Class A
Preferred  Convertible  Stock  into  shares of Common  Stock  under the  Option,
specified in 5(a) the Holder shall (i) fax or deliver via electronic mail on the
date of conversion (the "Conversion Date"), a copy of a fully executed notice of
conversion,  substantially  in the form  shown on Exhibit B hereto  ("Notice  of
Conversion")  to the Company at the office of the Company or the Transfer  Agent
stating that the Holder  elects to convert Class A Preferred  Convertible  Stock
into  Common  Stock,  which  Notice  of  Conversion  shall  specify  the date of
conversion,  the number of shares of Class A Preferred  Convertible  Stock to be
converted to shares of Common Stock issuable upon such conversion (together with
a copy of the front  page of each  certificate  to be  converted)  and (ii) once
converted  in full  (but not  otherwise  unless  specifically  requested  by the
Company from time to time),  surrender  to a common  courier for delivery to the
office  of the  Company  or the  Transfer  Agent,  the  original  certificate(s)
representing  the Class A  Preferred  Convertible  Stock  being  converted  (the
"Preferred Stock Certificates"),  duly endorsed for transfer;  unless the Holder
notifies  the Company or its  Transfer  Agent that such  certificates  have been
lost,  stolen or destroyed  (subject to the  requirements  of  subparagraph  (i)
below).  Upon  receipt  by the  Company  of a  facsimile  copy  of a  Notice  of
Conversion,   Company  shall   immediately  send,  via  facsimile  or  email,  a
confirmation  of receipt  of the  Notice of  Conversion  to Holder  which  shall
specify  that  the  Notice  of  Conversion  has been  received  and the name and
telephone  number of a contact  person at the  Company  whom the  Holder  should
contact regarding information related to the Conversion.

                  (c) AUTOMATIC  CONVERSION OF PREFERRED TO COMMON STOCK. (i) In
the event  that the daily  closing  price on the  common  stock as quoted on the
Company  listed  Exchange , exceeds $6.00 per share for 45  consecutive  trading
days, then, in such event,  all of the issued and outstanding  shares of Class A
Preferred Convertible Stock shall immediately thereupon, WITHOUT holder election
or option, be automatically  converted to number of common shares of the Company
on a basis  computed as follows  Six dollar  price less a discount of 15 percent
equals $5.10 conversion price. ( Example.  10,000 preferred shares cost $45,000.
Converted at $5.10 equals 8,823 common shares. Value 8,823 shares x market price
$6.00 equal $52,941) No Dividends or interest thereafter shall accrue,  however,
previously  accrued  Dividends or Interest on the Class A Preferred  Convertible
Stock shall thereafter be paid at the next quarterly due date. Class A Preferred
Convertible  Stock  certificates  shall be  thereupon  deemed  cancelled  and in
substitution  therefore,  the  Transfer  Agent  shall issue and  transmit,  upon
surrender of the Class A Preferred  certificate,  the common shares to which the
holder is entitled under this Automatic Conversion.

                  (d) (i) Mandatory Conversion: Each share of Series A Preferred
shall automatically be converted into Common Stock at the then rate set forth in
Section 5(a) above in the event of the closing of a public offering with a price
of at least  $6.00 per  share,  (subject  to  adjustments  for stock  dividends,

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<PAGE>
                                  EXHIBIT 10.8

splits,  combinations  and similar  events) and gross proceeds to the Company of
not less than  $25,000,000 (a "QPO" or qualified public  offering),  or upon the
written  consent of the  holders of 51% of the Series A  Preferred.  Majority of
holders may exercise a one-time right to delay mandatory conversion for a period
up to 12 months,  however,  the  conversion  rate  shall  remain as set forth in
Section 5(a) above.

                    (ii)  Lock-Up:  Holders of  Preferred  Stock  shall agree in
connection with the QPO, if requested by the managing  underwriter,  not to sell
or transfer  any shares of Common  Stock of the Company for which  Preferred  is
converted  for a  period  of up to 180  days  following  the  QPO  provided  all
directors  and officers of the Company and affiliate  stockholders  agree to the
same lock-up term and provisions.

                  (e) ADMINISTRATION.

                    (i) LOST OR STOLEN CERTIFICATES. Upon receipt by the Company
of evidence of the loss, theft, destruction or mutilation of any Preferred Stock
Certificates representing shares of Class A Preferred Convertible Stock, and (in
the case of loss,  theft or  destruction)  of indemnity  or security  reasonably
satisfactory  to  the  Company,  and  upon  surrender  and  cancellation  of the
Preferred  Stock  Certificate(s),  if  mutilated,  the Company shall execute and
deliver new Preferred Stock  Certificate(s) of like tenor and date. However, the
Company shall not be obligated to re-issue such lost or stolen  Preferred  Stock
Certificates  if Holder  contemporaneously  requests the Company to convert such
Class A Preferred Convertible Stock into Common Stock.

                    (ii) DELIVERY OF COMMON STOCK UPON CONVERSION.  The Transfer
Agent or the Company (as applicable)  shall, no later than the close of business
on the third (3rd) business day (the "Deadline") after receipt by the Company or
the  Transfer  Agent of a  facsimile  copy of a  Notice  of  Conversion  or upon
Automatic  Conversion  and  receipt by Company  or the  Transfer  Agent from the
Holder of all necessary  documentation duly executed and in proper form required
for  conversion  as stated in this  Section 5, issue and  surrender  to a common
courier for either  overnight or (if delivery is outside the United  States) two
(2) day  delivery  to the  Holder at the  address  of the Holder as shown on the
stock  records of the Company a  certificate  for the number of shares of Common
Stock to which the Holder shall be entitled as aforesaid.  In lieu of delivering
physical certificates  representing Common Stock to be received by a Holder upon
conversion of Class A Preferred  Convertible Stock, the Company may, if the said
Common Stock is not restricted  from transfer and does not contain a restrictive
legend,  utilize the Depository Trust Company ("DTC") Fast Automated  Securities
Transfer program and/or the DWAC system to electronically  credit the account of
the  Holder's  prime broker with DTC for the number of shares of Common Stock to
be received upon such conversion.

         In any event,  delivery to each Holder of Common  Stock upon a properly
submitted conversion of Class A Preferred Convertible Stock shall be made within
three (3) business days after the Conversion  Date.  Without limiting a Holder's
other  rights at law or in  equity,  should  delivery  be later  than  three (3)
business  days after the  Conversion  Date,  the Holder  shall have the right to
either (1) rescind the  conversion  by facsimile  notice to the Company;  (2) by

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                                  EXHIBIT 10.8

giving a new Notice of Conversion, adjust the conversion price and the amount of
dividends  accrued  and  unpaid,  in which case the  Company  shall  process the
conversion as if the latter notice were the original  notice;  or (3) accept the
late  delivery.  The Holders shall also be entitled to the  equitable  remedy of
specific  performance to enforce the delivery  requirements  upon  conversion of
Class A Preferred Convertible Stock.

                    (iii) NO FRACTIONAL SHARES. If any conversion of the Class A
Preferred Convertible Stock would create a fractional share of Common Stock or a
right to acquire a fractional share of Common Stock, such fractional share shall
be  disregarded  and  the  number  of  shares  of  Common  Stock  issuable  upon
conversion, in the aggregate, shall be rounded to the nearest whole share.

                    (iv) DATE OF CONVERSION. The date on which conversion occurs
(the "Conversion  Date") shall be deemed to be the date set forth in such Notice
of  Conversion,  provided  that the advance copy of the Notice of  Conversion is
faxed to the Company before 11:59 p.m.,  MDT, on the  Conversion  Date or in the
event of an Automatic  Conversion upon its effectiveness.  The person or persons
entitled to receive the shares of Common  Stock  issuable  upon such  conversion
shall be treated for all purposes as the record Holder or Holders of such shares
of Common Stock on the Conversion.

                  (f) RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The Company
shall at all times  reserve and keep  available  or make  provision to increase,
reserve and keep available out of its  authorized but unissued  shares of Common
Stock,  solely  for the  purpose  of  effecting  the  conversion  of the Class A
Preferred  Convertible Stock, such number of its shares of Common Stock as shall
from time to time be sufficient to effect the conversion of all then outstanding
Class A Preferred  Convertible  Stock into Common Stock;  and if at any time the
number of authorized but unissued shares of Common Stock shall not be sufficient
to effect the  conversion  of all then  outstanding  shares of Class A Preferred
Convertible  Stock,  the  Company  will  take  such  corporate  action as may be
necessary to increase its authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purpose.

                  (g) ADJUSTMENT TO CONVERSION RATE.

                    (i) The conversion  price will be subject to adjustments for
stock  dividends,  splits,  combinations and similar events and to a Performance
Adjustment as specified below.

                    (ii) ADJUSTMENT DUE TO MERGER, CONSOLIDATION, ETC. If, prior
to the conversion of all Class A Preferred Convertible Stock, there shall be any
merger, consolidation, exchange of shares, recapitalization,  reorganization, or
other similar event,  as a result of which shares of Common Stock of the Company
shall be changed  into the same or a  different  number of shares of the same or
another class or classes of stock or securities of the Company or another entity
or there is a sale of all or substantially  all the Company's  assets,  then the
Holders of Class A Preferred  Convertible  Stock shall thereafter have the right
to receive upon  conversion  of Class A Preferred  Convertible  Stock,  upon the

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<PAGE>
                                  EXHIBIT 10.8

basis and upon the  terms and  conditions  specified  herein  and in lieu of the
shares of Common Stock immediately  theretofore  issuable upon conversion,  such
stock, securities and/or other assets ("New Assets") which the Holder would have
been  entitled  to  receive  in  such  transaction  had the  Class  A  Preferred
Convertible  Stock been convertible into New Assets from the date hereof, at the
market price of such New Assets on the date of conversion,  and in any such case
appropriate provisions shall be made with respect to the rights and interests of
the  Holders  of the  Class A  Preferred  Convertible  Stock to the end that the
provisions hereof (including, without limitation,  provisions for the adjustment
of the conversion  price and of the number of shares of Common Stock issuable or
New Assets  deliverable  upon  conversion  of the Class A Preferred  Convertible
Stock)  shall  thereafter  be  applicable,  as nearly as may be  practicable  in
relation to any securities thereafter deliverable upon the exercise hereof.

                  (iii) NO  FRACTIONAL  SHARES.  If any  adjustment  under  this
Section  5(d)  would  create a  fractional  share of Common  Stock or a right to
acquire a  fractional  share of Common  Stock,  such  fractional  share shall be
disregarded  and the number of shares of Common Stock  issuable upon  conversion
shall be rounded to the nearest whole share.

         Section  6.  REDEMPTION  BY  COMPANY.  The  Company  may,  at its  sole
discretion redeem all or any portion of the Class A Preferred  Convertible Stock
by paying in cash by wire  transfer  the stated value of $4.50 with a premium of
15 % or $5.18 per share,  plus all accrued and unpaid  dividends and interest on
the Class A Preferred  Convertible Stock to be redeemed,  to the Holder pursuant
to the Holder's written instructions.  The Holders may convert Class A Preferred
Convertible  Stock into  Common  Stock of the  Company  until such cash has been
transmitted to the Holder,  at which time conversion  rights shall cease and the
Holder  shall  surrender  all  redeemed  Class A Preferred  Certificates  to the
Company for cancellation.

         Section 7. VOTING  RIGHTS.  The record Holders of the Class A Preferred
Convertible  Stock  shall have the right to vote on any matter  with  holders of
Common Stock and may vote as required on any action, which Colorado law provides
may or must be approved by vote or consent of the holders of the specific series
of voting preferred  shares and the holders of common shares,  as if the Class A
Preferred  shares  had all been  converted  to  common  on the ratio set forth n
Section 5(a) hereof.

         The record holders of the Class A Preferred  Convertible Stock shall be
entitled  to  the  same  notice  of  any  regular  or  special  meeting  of  the
shareholders  of the  Company  as may or shall be given to  holders of any other
series of preferred  shares and the holders of common shares entitled to vote at
such meetings.

         Section 8. PROTECTIVE PROVISION. So long as shares of Class A Preferred
Convertible Stock are outstanding, the Company shall not without first obtaining
the  approval  (by  vote  or  written  consent,  of  the  Holders  of  at  least
seventy-five  percent (75%) of the then outstanding  shares of Class A Preferred
Convertible  Stock,  and  at  least  seventy-five  percent  (75%)  of  the  then
outstanding Holders:

                                      -6-
<PAGE>
                                  EXHIBIT 10.8

                  (a) alter or change the rights,  preferences  or privileges of
the Class A Preferred  Convertible  Stock so as to affect  adversely the Class A
Preferred Convertible Stock.

                  (b)  create  any  new  class  or  series  of  stock  having  a
preference  over  the  Class A  Preferred  Convertible  Stock  with  respect  to
Distributions  (as  defined  in  Section  2 above) or  increase  the size of the
authorized number of shares of Class A Preferred Convertible Stock.

         In the event Holders of at least seventy-five percent (75%) of the then
outstanding  shares  of  Class  A  Preferred  Convertible  Stock  and  at  least
seventy-five  percent (75%) of the then  outstanding  Holders agree to allow the
Company to alter or change the rights,  preferences  or privileges of the shares
of Class A Preferred  Convertible Stock, pursuant to subsection (a) above, so as
to affect the Class A Preferred Convertible Stock, then the Company will deliver
notice  of  such  approved  change  to the  Holders  of the  Class  A  Preferred
Convertible  Stock  that  did  not  agree  to such  alteration  or  change  (the
"Dissenting  Holders")  and the  Dissenting  Holders  shall have the right for a
period of thirty  (30)  business  days to convert  pursuant to the terms of this
Certificate of  Designation as they exist prior to such  alteration or change or
continue to hold their shares of Class A Preferred Convertible Stock.

         Section 9. STATUS OF CONVERTED  STOCK. In the event any shares of Class
A Preferred  Convertible Stock shall be converted  pursuant to Section 5 hereof,
the shares so converted  shall be  cancelled,  and shall return to the status of
authorized but unissued  Preferred Stock of no designated  series, and shall not
be issuable by the Company as Class A Preferred Convertible Stock.

         Section  10.  PREFERENCE  RIGHTS.  Nothing  contained  herein  shall be
construed  to  prevent  the  Board of  Directors  of the  Company  from  issuing
additional   series  of  Preferred  Stock  with  dividend   and/or   liquidation
preferences  JUNIOR to the dividend and  liquidation  preferences of the Class A
Preferred Convertible Stock.

Dated as of June 17, 2013
                                        THREE FORKS, INC.

                               By:________________________________
                                  DONALD WALFORD, CEO

                                      -7-

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