Document:

Exhibit 10.34

 

RECORDATION REQUESTED BY:

US Employment Development Lending Center, LLC

1 World Trade Center, Suite 1870 

Long Beach, CA 90831

 

WHEN RECORDED MAIL TO:

US Employment Development Lending Center, LLC

1 World Trade Center, Suite 1870 

Long Beach, CA 90831

 

	FOR RECORDER’S USE ONLY

 

ASSIGNMENT OF RENTS

 

THIS ASSIGNMENT OF RENTS dated May 11,
2012, is made and executed between Superior Drilling Products of California, LLC, a California limited liability company, whose
address is 2221 North 3250 West, Vernal, UT 84078; (referred to below as “Grantor”) and US Employment Development Lending
Center, LLC, whose address is 1 World Trade Center, Suite 1870, Long Beach, CA 90831 (referred to below as “Lender”).

 

ASSIGNMENT. For valuable consideration,
Grantor hereby assigns, grants a continuing security interest in, and conveys to Lender all of Grantor’s right, title, and
interest in and to the Rents from the following described Property located in Kern County, State of California:

 

THE LAND DESCRIBED HEREIN
IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF KERN, UNINCORPORATED AREA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL 2 OF PARCEL MAP NO.
8961 IN THE UNINCORPORATED AREA OF THE COUNTY OF KERN, STATE OF CALIFORNIA, AS PER MAP RECORDED MAY 9, 1991, IN BOOK 42 OF PARCEL
MAPS, PAGE 25 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

 

EXCEPTING THEREFROM 1/2 OF
ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES AS CONVEYED TO GERI BLOEMER COOPER IN DEED RECORDED OCTOBER 11, 1989, IN
BOOK 6301, PAGE 990 OF OFFICIAL RECORDS.

 

ALSO EXCEPTING THEREFROM
ALL REMAINING OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES WITHIN OR UNDERLYING SAID LAND AS RESERVED BY JACK M. HOOD AND
SHARON B. HOOD, AS TRUSTEES UNDER THE JACK M. HOOD AND SHARON B. HOOD LIVING TRUST DATED DECEMBER 27, 1991, AS TO AN UNDIVIDED
1/3 INTEREST; ROBERT A HOOD AND MARY MARTHA HOOD AS CO-TRUSTEES OF THE ROBERT A. AND MARY MARTHA HOOD LIVING TRUST DATED JULY 2,
1992, AS TO AN UNDIVIDED 1/3 INTEREST AND HAZEL MARY HOBBA HENDERSON, TRUSTEE OF THE HAZEL MARY HOBBA HENDERSON REVOCABLE TRUST
DATED SEPTEMBER 18, 1987, AS TO AN UNDIVIDED 1/3 INTEREST IN DEED RECORDED MARCH 7, 2000, AS INSTRUMENT NO. 02-26223 OF OFFICIAL
RECORDS

 

The Property or its address is commonly
known as 1140 Black Gold Road, Bakersfield, CA 93308. The Assessor’s Parcel Number for the Property is 481-200-22-00-9.

 

This is an absolute assignment of Rents
made in connection with an obligation secured by property pursuant to California Civil Code section 2938.

 

THIS ASSIGNMENT IS GIVEN TO SECURE (1)
PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ANY AND ALL OBLIGATIONS OF GRANTOR UNDER THE NOTE, THIS ASSIGNMENT, AND THE
RELATED DOCUMENTS. THIS ASSIGNMENT IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:

 

PAYMENT AND PERFORMANCE. Except
as otherwise provided in this Assignment or any Related Documents, Grantor shall pay to Lender all amounts secured by this Assignment
as they become due, and shall strictly perform all of Grantor’s obligations under this Assignment. Unless and until Lender
exercises its right to collect the Rents as provided below and so long as there is no default under this Assignment, Grantor may
remain in possession and control of and operate and manage the Property and collect the Rents, provided that the granting of the
right to collect the Rents shall not constitute Lender’s consent to the use of cash collateral in a bankruptcy proceeding.

 

GRANTOR’S REPRESENTATIONS AND
WARRANTIES. Grantor warrants that:

 

Ownership. Grantor is
entitled to receive the Rents free and clear of all rights, loans, liens, encumbrances, and claims except as disclosed to and accepted
by Lender in writing.

 

    	 

    	 

    

 

	ASSIGNMENT OF RENTS	 
	(Continued)	Page 2
	 	 

 

Right to Assign. Grantor
has the full right, power and authority to enter into this Assignment and to assign and convey the Rents to Lender.

 

No Prior Assignment.
Grantor has not previously assigned or conveyed the Rents to any other person by any instrument now in force.

 

No Further Transfer.
Grantor will not sell, assign, encumber, or otherwise dispose of any of Grantor’s rights in the Rents except as provided
in this Assignment.

 

LENDER’S RIGHT TO RECEIVE AND
COLLECT RENTS. Lender shall have the right at any time, and even though no default shall have occurred under this Assignment,
to collect and receive the Rents. For this purpose, Lender is hereby given and granted the following rights, powers and authority:

 

Notice to Tenants. Lender
may send notices to any and all tenants of the Property advising them of this Assignment and directing all Rents to be paid directly
to Lender or Lender’s agent.

 

Enter the Property. Lender
may enter upon and take possession of the Property; demand, collect and receive from the tenants or from any other persons liable
therefor, all of the Rents; institute and carry on all legal proceedings necessary for the protection of the Property, including
such proceedings as may be necessary to recover possession of the Property; collect the Rents and remove any tenant or tenants
or other persons from the Property.

 

Maintain the Property.
Lender may enter upon the Property to maintain the Property and keep the same in repair; to pay the costs thereof and of all services
of all employees, including their equipment, and of all continuing costs and expenses of maintaining the Property in proper repair
and condition, and also to pay all taxes, assessments and water utilities, and the premiums on fire and other insurance effected
by Lender on the Properly.

 

Compliance with Laws.
Lender may do any and all things to execute and comply with the laws of the State of California and also all other laws, rules,
orders, ordinances and requirements of all other governmental agencies affecting the Property.

 

Lease the Property. Lender
may rent or lease the whole or any part of the Property for such term or terms and on such conditions as Lender may deem appropriate.

 

Employ Agents. Lender
may engage such agent or agents as Lender may deem appropriate, either in Lender’s name or in Grantor’s name, to rent
and manage the Property, including the collection and application of Rents.

 

Other Acts. Lender may
do all such other things and acts with respect to the Property as Lender may deem appropriate and may act exclusively and solely
in the place and stead of Grantor and to have all of the powers of Grantor for the purposes stated above.

 

No Requirement to Act.
Lender shall not be required to do any of the foregoing acts or things, and the fact that Lender shall have performed one or more
of the foregoing acts or things shall not require Lender to do any other specific act or thing.

 

APPLICATION OF RENTS. All costs
and expenses incurred by Lender in connection with the Property shall be for Grantor’s account and Lender may pay such costs
and expenses from the Rents. Lender, in its sole discretion, shall determine the application of any and all Rents received by;
it; however, any such Rents received by Lender which are not applied to such costs and expenses shall be applied to the Indebtedness.
All expenditures made by Lender under this Assignment and not reimbursed from the Rents shall become a part of the Indebtedness
secured by this Assignment, and shall be payable on demand, with interest at the Note rate from date of expenditure until paid.

 

FULL PERFORMANCE. If Grantor pays
all of the Indebtedness when due and otherwise performs all the obligations imposed upon Grantor under this Assignment, the Note,
and the Related Documents, Lender shall execute and deliver to Grantor a suitable satisfaction of this Assignment and suitable
statements of termination of any financing statement on file evidencing Lender’s security interest in the Rents and the Property.
Any termination fee required by law shall be paid by Grantor, if permitted by applicable law.

 

LENDER’S EXPENDITURES. If
any action or proceeding is commenced that would materially affect Lender’s interest in the Property or if Grantor fails
to comply with any provision of this Assignment or any Related Documents, including but not limited to Grantor’s failure
to discharge or pay when due any amounts Grantor is required to discharge or pay under this Assignment or any Related Documents,
Lender on Grantor’s behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but
not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or
placed on the Rents or the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures
incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred
or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender’s
option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any
installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of
the Note; or (C) be treated as a balloon payment which will be due and payable at the Note’s maturity. The Assignment also
will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled
upon Default.

 

DEFAULT. Each of the following,
at Lender’s option, shall constitute an Event of Default under this Assignment;

 

Payment Default. Grantor
fails to make any payment when due under the Indebtedness.

 

Other Defaults.
Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Assignment or
in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Grantor.

 

Default on Other Payments.
Failure of Grantor within the time required by this Assignment to make any payment for taxes or insurance, or any other payment
necessary to prevent filing of or to effect discharge of any lien.

 

Environmental Default.
Failure of any party to comply with or perform when due any term, obligation, covenant or condition contained in any environmental
agreement executed in connection with the Property.

 

    	 

    	 

    

 

	ASSIGNMENT OF RENTS	 
	(Continued)	Page 3
	 	 

 

False Statements. Any
warranty, representation or statement made or furnished to Lender by Grantor or on Grantor’s behalf under this Assignment
or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.

 

Defective Collateralization.
This Assignment or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document
to create a valid and perfected security interest or lien) at any time and for any reason.

 

Death or Insolvency.
The dissolution of Grantor’s (regardless of whether election to continue is made), any member withdraws from the limited
liability company, or any other termination of Grantor’s existence as a going business or the death of any member, the insolvency
of Grantor, the appointment of a receiver for any part of Grantor’s property, any assignment for the benefit of creditors,
any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor.

 

Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method,
by any creditor of Grantor or by any governmental agency against the Rents or any property securing the Indebtedness. This, includes
a garnishment of any of Grantor’s accounts, including deposit accounts, with Lender. However, this Event of Default shall
not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits
with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion,
as being an adequate reserve or bond for the dispute.

 

Property Damage or Loss.
The Property is lost, stolen, substantially damaged, sold, or borrowed against.

 

Events Affecting Guarantor.
Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes
incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

 

Adverse Change. A material
adverse change occurs in Grantor’s financial condition, or Lender believes the prospect of payment or performance of the
Indebtedness is impaired.

 

Insecurity. Lender in
good faith believes itself insecure.

 

RIGHTS AND REMEDIES ON DEFAULT.
Upon the occurrence of any Event of Default and at any time thereafter, Lender may exercise any one or more of the following rights
and remedies, in addition to any other rights or remedies provided by law:

 

Accelerate Indebtedness.
Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable,
including any prepayment fee that Grantor would be required to pay.

 

Collect Rents. Lender
shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents, including amounts past
due and unpaid, and apply the net proceeds, over and above Lender’s costs, against the Indebtedness. In furtherance of this
right, Lender shall have all the rights provided for in the Lender’s Right to Receive and Collect Rents Section, above. If
the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor’s attorney-in-fact to endorse instruments
received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other
users to Lender in response to Lender’s demand shall satisfy the obligations for which the payments are made, whether or
not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent,
or through a receiver.

 

Appoint Receiver. Lender
shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect
and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and
apply the proceeds, over and above the cost of the receivership, against the indebtedness. The receiver may serve without bond
if permitted by law. Lender’s right to the appointment of a receiver shall exist whether or not the apparent value of the
Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a
receiver.

 

Other Remedies. Lender
shall have all other rights and remedies provided in this Assignment or the Note or by law.

 

Election of Remedies.
Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or
to take action to perform an obligation of Grantor under this Assignment, after Grantor’s failure to perform, shall not affect
Lender’s right to declare a default and exercise its remedies.

 

Attorneys’ Fees; Expenses.
If Lender institutes any suit or action to enforce any of the terms of this Assignment, Lender shall be entitled to recover such
sum as the court may adjudge reasonable as attorneys’ fees at trial and upon any appeal. Whether or not any court action
is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender’s opinion are
necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness
payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this
paragraph include, without limitation, however subject to any limits under applicable law, Lender’s attorneys’ fees
and Lender’s legal expenses, whether or not there is a lawsuit, including attorneys’ fees and expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment
collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors’ reports,
and appraisal fees, title insurance, and fees for the Trustee to the extent permitted by applicable law. Grantor also will pay
any court costs, in addition to all other sums provided by law.

 

MISCELLANEOUS PROVISIONS. The following
miscellaneous provisions are a part of this Assignment:

 

Amendments. This Assignment,
together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth
in this Assignment. No alteration of or amendment to this Assignment shall be effective unless given in writing and signed by the
party or parties sought to be charged or bound by the alteration or amendment.

 

Caption Headings. Caption
headings in this Assignment are for convenience purposes only and are not to be used to interpret or define the provisions of this
Assignment.

 

    	 

    	 

    

 

	ASSIGNMENT OF RENTS	 
	(Continued)	Page 4
	 	 

 

Governing Law. This Assignment
will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of
California without regard to its conflicts of law provisions. This Assignment has been accepted by Lender in the State of California.

 

Choice of Venue. If there
is a lawsuit, Grantor agrees upon Lender’s request to submit to the jurisdiction of the courts of Los Angeles County, State
of California.

 

Merger. There shall be
no merger of the interest or estate created by this assignment with any other interest or estate in the Property at any time held
by or for the benefit of Lender in any capacity, without the written consent of Lender.

 

Interpretation. (1) In
all cases where there is more than one Borrower or Grantor, then all words used in this Assignment in the singular shall be deemed
to have been used in the plural where the context and construction so require. (2) If more than one person signs this Assignment
as “Grantor, “the obligations of each Grantor are joint and several. This means that if Lender brings a lawsuit, Lender
may sue any one or more of the Grantors. If Borrower and Grantor are not the same person, Lender need not sue Borrower first, and
that Borrower need not be joined in any lawsuit. (3) The names given to paragraphs or sections in this Assignment are for convenience
purposes only. They are not to be used to interpret or define the provisions of this Assignment.

 

No Waiver by Lender.
Lender shall not be deemed to have waived any rights under this Assignment unless such waiver is given in writing and signed by
Lender, No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other
right. A waiver by Lender of a provision of this Assignment shall not prejudice or constitute a waiver of Lender’s right
otherwise to demand strict compliance with that provision or any other provision of this Assignment. No prior waiver by Lender,
nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender’s rights or of any of Grantor’s
obligations as to any future transactions. Whenever the consent of Lender is required under this Assignment, the granting of such
consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required
and in all cases such consent may be granted or withheld in the sole discretion of Lender,

 

Notices. Any notice required
to be given under this Assignment shall be given in writing, and shall be effective when actually delivered, when actually received
by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed,
when deposited in the United Stales mail, as first class, certified or registered mail postage prepaid, directed to the addresses
shown near the beginning of this Assignment. Any party may change its address for notices under this Assignment by giving formal
written notice to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice
purposes, Grantor agrees to keep Lender informed at all times of Grantor’s current address. Unless otherwise provided or
required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all
Grantors.

 

Powers of Attorney. The
various agencies and powers of attorney conveyed on Lender under this Assignment are granted for purposes of security and may not
be revoked by Grantor until such time as the same are renounced by Lender.

 

Severability. If a court
of competent jurisdiction finds any provision of this Assignment to be illegal, invalid, or unenforceable as to any circumstance,
that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible,
the offending provision shall be considered modified so that it becomes legal, valid and enforceable, if the offending provision
cannot he so modified, it shall be considered deleted from this Assignment. Unless otherwise required by law, the illegality, invalidity,
or Unenforceability of any provision of this Assignment shall not affect the legality, validity or enforceability of any other
provision of this Assignment.

 

Successors and Assigns.
Subject to any limitations stated in this Assignment on transfer of Grantor’s interest, this Assignment shall be binding
upon and inure to the benefit of the parties, their successors and assigns, if ownership of the Property becomes vested in a person
other than Grantor, Lender, without notice to Grantor, may deal with Grantor’s successors with reference to this Assignment
and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Assignment or liability
under the Indebtedness.

 

Time is of the Essence.
Time is of the essence in the performance of this Assignment.

 

Waiver of Right of Redemption.
NOTWITHSTANDING ANY OF THE PROVISIONS TO THE CONTRARY CONTAINED IN THIS ASSIGNMENT, GRANTOR HEREBY WAIVES ANY AND ALL RIGHTS OF
REDEMPTION FROM SALE UNDER ANY ORDER OR JUDGMENT OF FORECLOSURE ON GRANTOR’S BEHALF AND ON BEHALF OF EACH AND EVERY PERSON,
EXCEPT JUDGMENT CREDITORS OF GRANTOR, ACQUIRING ANY INTEREST IN OR TITLE TO THE PROPERTY SUBSEQUENT TO THE DATE OF THIS ASSIGNMENT.

 

DEFINITIONS. The following capitalized
words and terms shall have the following meanings when used in this Assignment. Unless specifically stated to the contrary, all
references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular
shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise
defined in this Assignment shall have the meanings attributed to such terms in the Uniform Commercial Code:

 

Assignment. The word
“Assignment” means this ASSIGNMENT OF RENTS, as this ASSIGNMENT OF RENTS may be amended or modified from time to time,
together with all exhibits and schedules attached to this ASSIGNMENT OF RENTS from time to time.

 

Borrower. The word “Borrower”
means Superior Drilling Products of California, LLC.

 

Default. The word “Default”
means the Default set forth in this Assignment in the section titled “Default”.

 

Event of Default. The
words “Event of Default” mean any of the events of default set forth in this Assignment in the default section of
this Assignment.

 

Grantor. The word “Grantor”
means Superior Drilling Products of California, LLC.

 

Guarantor. The word “Guarantor”
means any guarantor, surety, or accommodation party of any or all of the Indebtedness.

 

Guaranty. The word “Guaranty”
means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.

 

    	 

    	 

    

 

	ASSIGNMENT OF RENTS	 
	(Continued)	Page 5
	 	 

 

Indebtedness. The word
“Indebtedness” means all principal, interest, and other amounts, costs and expenses payable under the Note or Related
Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or
Related Documents and any amounts expended or advanced by Lender to discharge Grantor’s obligations or expenses incurred
by Lender to enforce Grantor’s obligations under this Assignment, together with interest on such amounts as provided in this
Assignment.

 

Lender. The word “Lender”
means US Employment Development Lending Center, LLC, its successors and assigns.

 

Note. The word “Note”
means the promissory note dated May 11, 2012, in the original principal amount of $1,350,000.00 from Grantor to Lender,
together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory
note or agreement.

 

Property. The word “Property”
means all of Grantor’s right, title and interest in and to all the Property as described in the “Assignment”
section of this Assignment.

 

Related Documents. The
words “Related Documents” mean all promissory notes, credit agreements, loan agreements, security agreements, mortgages,
deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter
existing, executed In connection with the Indebtedness; except that the words do not mean any guaranty or environmental agreement,
whether now or. hereafter existing, executed in connection with the Indebtedness.

 

Rents. The word “Rents”
means all of Grantor’s present and future rights, title and interest in, to and under any and all present and future leases,
including, without limitation, all rents, revenue, income, issues, royalties, bonuses, accounts receivable, cash or security deposits,
advance rentals, profits and proceeds from the Property, and other payments and benefits derived or to be derived from such leases
of every Kind and nature, whether due now or later, including without limitation Grantor’s right to enforce such leases and
to receive; and collect payment and proceeds thereunder.

 

THE UNDERSIGNED ACKNOWLEDGES HAVING
READ ALL THE PROVISIONS OF THIS ASSIGNMENT, AND NOT PERSONALLY BUT AS AN AUTHORIZED SIGNER, HAS CAUSED THIS ASSIGNMENT TO BE SIGNED
AND EXECUTED ON BEHALF OF GRANTOR ON MAY 11, 2012.

 

GRANTOR:

 

SUPERIOR DRILLING PRODUCTS OF CALIFORNIA,
LLC

 

	By:	/s/ Annette D. Meier	 
	 	Annette D. Meier, Manager of Superior Drilling Products of California, LLC	 

 

	 
	CERTIFICATE OF ACKNOWLEDGMENT

 

	STATE OF	Utah	)	 
	 	 	    )
    SS	 
	COUNTY OF	Salt
    Lake	)	 

 

	On May 23, 2012 before
    me,      Rich Mahoney Notary Public

(here
insert name and title of the officer)

personally
appeared Annette D, Meier, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the Instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

	
        WITNESS my hand and official seal.

         

         

         

        Signature 
        [ILLEGIBLE]                               
	

 

	LASER PRO Lending,
    Ver. 5.60.00.005 Copr. Harland Financial Solutions, Inc. 1997, 2012. All Rights Reserved. - CA C:\HARLANDLP\CFI\LPL\G14.FC
    TR-126 PR-20Exhibit 10.35

 

Loan No. TBD

 

LOAN AGREEMENT

 

This LOAN AGREEMENT (this “Agreement”)
is entered into at Cottonwood Heights, Utah, as of July 3, 201.2, between Meier Family Holding Company, LLC, an Utah
limited liability company, with its chief executive office located at 2221 North 3250 West, Vernal, Utah 84078 (the
“Borrower”) and Proficio Bank, a State Chartered Commercial Bank, with an address of 6985 Union Park Center, Suite
150, Cottonwood Heights, Utah 84047 (the “Bank”).

 

FOR VALUE RECEIVED,
and in consideration of the granting by the Bank of financial accommodations to or for the benefit of the Borrower, including
without limitation respecting the Obligations (as hereinafter defined), the Borrower represents to and agrees with the Bank, as
of the date hereof and as of the date of each loan, credit and/or other financial accommodation, as follows: 

 

1.          THE
LOAN

 

1.1                 Loan.
Subject to the terms and conditions of this Agreement, the Bank hereby agrees to make a loan to Borrower and Superior Drilling
Products, LLC in the original principal amount of $240,000,00 (the “Loan”). The Loan shall be evidenced by that
certain Term Note, of even date herewith (the “Note’’) by Borrower and Superior Drilling Products, LLC in favor
of the Bank in the original principal amount of $240,000.00. This Agreement, the Note, and any and all other documents,
amendments or renewals executed and delivered in connection with any of the foregoing are collectively hereinafter referred to
as the “Loan Documents”.

 

1.2                 Definitions.
The following definitions shall apply:

 

		(a)	“Code” shall mean the Utah Uniform Commercial Code, Section 70A-1-101 et.seq. as amended
from time to time.

 

		(b)	“Obligation(s)” shall mean, without limitation, all loans, advances, indebtedness,
notes, liabilities and amounts, liquidated or unliquidated, owing by the Borrower to the Bank at any time, of each and every kind,
nature and description, whether arising under this Agreement or otherwise, and whether secured or unsecured, direct or indirect
(that is, whether the same are due directly by the Borrower to the Bank; or are due indirectly by the Borrower to the Bank as endorser,
guarantor or other surety, or as borrower of obligations due third persons which have been endorsed or assigned to the Bank, or
otherwise), absolute or contingent, due or to become due, now existing or hereafter arising or contracted, including, without limitation,
payment when due of all amounts outstanding respecting any of the Loan Documents. Said term shall also include all interest and
other charges chargeable to the Borrower or due from the Borrower to the Bank from time to time and all costs and expenses referred
to in this Agreement.

 

		(c)	“Person” or “party” shall mean individuals, partnerships, corporations,
limited liability companies and all other entities.

 

All words and terms
used in this Agreement other than those specifically defined herein shall have the meanings accorded to them in the Code.

 

    	 

    	 

    

 

2.          REPRESENTATIONS
AND WARRANTIES

 

2.1                 Organization
and Qualification. Borrower is a duly organized and validly existing limited liability company under the laws of the State
of its formation, with the exact legal name set forth in the first paragraph of this Agreement. Borrower is in good standing under
the laws of said State, has the power to own its property and conduct its business as now conducted and as currently proposed to
be conducted, and is duly qualified to do business under the laws of each state where the nature of the business done or property
owned requires such qualification.

 

2.2                 Related
Parties. Borrower has no interest in any entities other than those listed on Schedule 2.2, if any, and the Borrower has never
consolidated, merged or acquired substantially all of the assets of any other entity or person other than those listed on Schedule
2.2, if any.

 

2.3                 Limited
Liability Company Records. Borrower’s certificate of organization, articles of organization or other charter document
and all amendments thereto have been duly filed and are in proper order. All members of the Borrower are properly reflected on
all books and records of the Borrower, including but not limited to its operating agreement, minute books, bylaws and books of
account, all of which are accurate and up to date and will be so maintained.

 

2.4                 Title
to Properties: Absence of Liens. Borrower has good and clear record and marketable title to all of its properties and assets,
and all of its properties and assets are free and clear of all mortgages, liens, pledges, charges, encumbrances and setoffs, except
(a) the mortgages, deeds of trust and security interests as set forth on Schedule 2.4, if any, and (b) the leases of personal property
as set forth on Schedule 2.4, if any.

 

2.5                 Places
of Business. Borrower’s chief executive office is correctly stated in the preamble to this Agreement, and Borrower shall,
during the term of this Agreement, keep the Bank currently and accurately informed in writing of each of its other places of business,
and shall not change the location of such chief executive office or open or close, move or change any existing or new place of
business without giving the Bank at least thirty (30) days prior written notice thereof.

 

2.6                 Valid
Obligations. The execution, delivery and performance of the Loan Documents have been duly authorized by all necessary action
and each represents a legal, valid and binding obligation of Borrower and is fully enforceable according to its terms, except
as limited by equity or laws relating to the enforcement of creditors’ rights.

 

2.7                 Conflicts.
There is no provision in Borrower’s organizational or charter documents, if any, or in any indenture, contract or agreement
to which Borrower is a party which prohibits, limits or restricts the execution, delivery or performance of the Loan Documents.

 

2.8                 Governmental
Approvals. The execution, delivery and performance of the Loan Documents does not require any approval of or filing with any
governmental agency or authority.

 

2.9                 Litigation,
etc. There are no actions, claims or proceedings pending or to the knowledge of Borrower threatened against Borrower which
might materially adversely affect the ability of Borrower to conduct its business or to pay or perform the Obligations.

 

2.10               Financial
Statements. The Borrower has furnished to the Bank one or more financial statements each of which fairly presents the condition
of the Borrower at the date thereof and the results of the operations of the Borrower for the period indicated, all in conformity
with generally accepted accounting principles, consistently applied.

 

2.11               Changes.
Since the date of the Financial Statements, there have been no changes in the assets, liabilities, financial condition or business
of the Borrower, other than changes in the ordinary course of business, the effect of which have, in the aggregate, been materially
adverse.

 

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2.12               Taxes.
The Borrower has filed all Federal, state and other tax returns required to be filed (except for such returns for which current
and valid extensions have been filed), and all taxes, assessments and other governmental charges due from the Borrower have been
fully paid. The Borrower has established on its books reserves adequate for the payment of all Federal, state and other tax liabilities
(if any).

 

2.13               Use
of Proceeds. No portion of any loan is to be used for (i) the purpose of purchasing or carrying any “margin security”
or “margin stock” as such terms are used in Regulations U and X of the Board of Governors of the Federal Reserve System,
12 C.F.R. 221 and 224 or (ii) primarily personal, family or household purposes.

 

2.14               Environmental.
As of the date hereof neither the Borrower nor any of Borrower’s agents, employees or independent contractors (1) have caused
or are aware of a release or threat of release of Hazardous Materials (as defined herein) on any of the premises or personal property
owned or controlled by Borrower (“Controlled Property”) or any property abutting Controlled Property (“Abutting
Property”), which could give rise to liability under any Environmental Law (as defined herein) or any other Federal, state
or local law, rule or regulation; (2) have arranged for the transport of or transported any Hazardous Materials in a manner as
to violate, or result in potential liabilities under, any Environmental Law; (3) have received any notice, order or demand from
the Environmental Protection Agency or any other Federal, state or local agency under any Environmental Law; (4) have incurred
any liability under any Environmental Law in connection with the mismanagement, improper disposal or release of Hazardous Materials;
or (5) are aware of any inspection or investigation of any Controlled Property or Abutting Property by any Federal, state or local
agency for possible violations of any Environmental Law.

 

To the best of Borrower’s
knowledge, neither Borrower, nor any prior owner or tenant of any Controlled Property, committed or omitted any act which caused
the release of Hazardous Materials on such Controlled Property which could give rise to a lien thereon by any Federal, state or
local government. No notice or statement of claim or lien affecting any Controlled Property has been recorded or filed in any public
records by any Federal, state or local government for costs, penalties, fines or other charges as to such property. All notices,
permits, licenses or similar authorizations, if any, required to be obtained or filed in connection with the ownership, operation,
or use of the Controlled Property, Including without limitation, the past or present generation, treatment, storage, disposal or
release of any Hazardous Materials into the environment, have been duly obtained or filed.

 

Borrower agrees to
indemnify and hold the Bank harmless from all liability, loss, cost, damage and expense, including attorney fees and costs of litigation,
arising from any and all of its violations of any Environmental Law (including those arising from any lien by any Federal, state
or local government arising from the presence of Hazardous Materials) or from the presence of Hazardous Materials located on or
emanating from any Controlled Property or Abutting Property whether existing or not existing and whether known or unknown at the
time of the execution hereof and regardless of whether or not caused by, or within the control of Borrower. Borrower further agrees
to reimburse Bank upon demand for any costs incurred by Bank in connection with the foregoing. Borrower agrees that its obligations
hereunder shall be continuous and shall survive the repayment of all debts to Bank and shall continue so long as a valid claim
may be lawfully asserted against the Bank.

 

The term “Hazardous
Materials” includes but is not limited to any and all substances (whether solid, liquid or gas) defined, listed, or otherwise
classified as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, or words of
similar meaning or regulatory effect under any present or future Environmental Law or that may have a negative impact on human
health or the environment, Including but not limited to petroleum and petroleum products, asbestos and asbestos-containing materials,
polychlorinated biphenyls, lead, radon, radioactive materials, flammables and explosives.

 

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The term “Environmental
Law” means any present and future Federal, state and local laws, statutes, ordinances, rules, regulations and the like, as
well as common law, relating to protection of human health or the environment, relating to Hazardous Materials, relating to liability
for or costs of remediation or prevention of releases of Hazardous Materials or relating to liability for or costs of other actual
or threatened danger to human health or the environment. The term “Environmental Law” includes, but is not limited
to, the following statutes, as amended, any successor thereto, and any regulations promulgated pursuant thereto, and any state
or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental Response,
Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Materials Transportation
Act; the Resource Conservation and Recovery Act (including but not limited to Subtitle I relating to underground storage tanks);
the Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water
Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide
Act; the Endangered Species Act; the National Environmental Policy Act; and the River and Harbors Appropriation Act.

 

3.          AFFIRMATIVE
COVENANTS

 

3.1                 Payments
and Performance. Borrower will duly and punctually pay all Obligations becoming due to the Bank and will duly and punctually
perform all Obligations on its part to be done or performed under this Agreement.

 

3.2                 Books
and Records; Inspection. Borrower will at all times keep proper books of account in which full, true and correct entries will
be made of its transactions in accordance with generally accepted accounting principles, consistently applied and which are, in
the opinion of a Certified Public Accountant acceptable to Bank, adequate to determine fairly the financial condition and the results
of operations of Borrower. Borrower will at all reasonable times make its books and records available in its offices for inspection,
examination and duplication by the Bank and the Bank’s representatives and will permit inspection of all of its properties
by the Bank and the Bank’s representatives. Borrower will from time to time furnish the Bank with such information and statements
as the Bank may request in its sole discretion with respect to the Obligations.

 

3.3                 Financial
Statements. Borrower will furnish to Bank:

 

		(a)	as soon as available to Borrower, but in any event within 120 days after the close of each fiscal
year, a full and complete signed copy of financial statements, prepared by certified public accountants acceptable to Bank, on
a combined basis with such other entities designated by the Bank, which shall include a balance sheet of the Borrower, as at the
end of such year, and statement of profit and loss of the Borrower reflecting the results of its operations during such year, bearing
the opinion of such certified public accountants and prepared on a compiled basis in accordance with generally accepted accounting
principles, consistently applied together with any so-called management letter;

 

		(b)	from time to time, such financial data and information about Borrower as Bank may reasonably request;
and

 

		(c)	any financial data and information about any guarantors of the Obligations as Bank may reasonably
request.

 

3.4                 Conduct
of Business. The Borrower will maintain its existence in good standing and comply with all laws and regulations of the United
States and of any state or states thereof and of any political subdivision thereof, and of any governmental authority which may
be applicable to it or to its business; provided that this covenant shall not apply to any tax, assessment or charge which is being
contested in good faith and with respect to which reserves have been established and are being maintained.

 

3.5                 Contact
with Accountant. The Borrower hereby authorizes the Bank to directly contact and communicate with any accountant employed by
Borrower in connection with the review and/or maintenance of Borrower’s books and records or preparation of any financial
reports delivered by or at the request of Borrower to Bank.

 

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3.6                 Taxes.
Borrower will promptly pay all real and personal property taxes, assessments and charges and all franchise, income, unemployment,
retirement benefits, withholding, sales and other taxes assessed against it or payable by it before delinquent; provided that this
covenant shall not apply to any tax assessment or charge which is being contested in good faith and with respect to which reserves
have been established and are being maintained.

 

3.7                 Maintenance.
Borrower will keep and maintain its properties, if any, in good repair, working order and condition. Borrower will immediately
notify the Bank of any loss or damage to or any occurrence which would adversely affect the value of any such property.

 

3.8                 Insurance.
Borrower will maintain in force property and casualty insurance on any property of the Borrower, if any, against risks customarily
insured against by companies engaged in businesses similar to that of the Borrower containing such terms and written by such companies
as may be satisfactory to the Bank, such insurance to be payable to the Bank as its interest may appear in the event of loss and
to name the Bank as insured pursuant to a standard loss payee clause; no loss shall be adjusted thereunder without the Bank’s
approval; and all such policies shall provide that they may not be canceled without first giving at least Thirty (30) days written
notice of cancellation to the Bank. In the event that the Borrower fails to provide evidence of such insurance, the Bank may, at
its option, secure such insurance and charge the cost thereof to the Borrower, At the option of the Bank, all insurance proceeds
received from any loss or damage to any property shall be applied either to the replacement or repair thereof or as a payment on
account of the Obligations. From and after the occurrence of an Event of Default, the Bank is authorized to cancel any insurance
maintained hereunder and apply any returned or unearned premiums, all of which are hereby assigned to the Bank, as a payment on
account of the Obligations.

 

3.9                 Notification
of Default. Immediately upon becoming aware of the existence of any condition or event which constitutes an Event of Default,
or any condition or event which would upon notice or lapse of time, or both, constitute an Event of Default, Borrower shall give
Bank written notice thereof specifying the nature and duration thereof and the action being or proposed to be taken with respect
thereto.

 

3.10               Notification
of Material Litigation. Borrower will immediately notify the Bank in writing of any litigation or of any investigative proceedings
of a governmental agency or authority commenced or threatened against it which would or might be materially adverse to the financial
condition of Borrower or any guarantor of the Obligations.

 

3.11               Pension
Plans. With respect to any pension or benefit plan maintained by Borrower, or to which Borrower contributes (“Plan”),
the benefits under which are guarantied, in whole or in part, by the Pension Benefit Guaranty Corporation created by the Employee
Retirement Income Security Act of 1974, P.L. 93-406, as amended (“ERISA”) or any governmental authority succeeding
to any or all of the functions of the Pension Benefit Guaranty Corporation (“Pension Benefit Guaranty Corporation”),
Borrower will (a) fund each Plan as required by the provisions of Section 412 of the Internal Revenue Code of 1986, as amended;
(b) cause each Plan to pay all benefits when due; (c) furnish Bank (i) promptly with a copy of any notice of each Plan’s
termination sent to the Pension Benefit Guaranty Corporation (ii) no later than the date of submission to the Department of Labor
or to the Internal Revenue Service, as the case may be, a copy of any request for waiver from the funding standards or extension
of the amortization periods required by Section 412 of the Internal Revenue Code of 1986, as amended and (iii) notice of any Reportable
Event as such term is defined in ERISA; and (d) subscribe to any contingent liability insurance provided by the Pension Benefit
Guaranty Corporation to protect against employer liability upon termination of a guarantied pension plan, if available to Borrower.

 

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4.          NEGATIVE
COVENANTS

 

4.1                 Financial
Covenants. The Borrower will not at any time or during any fiscal period (as applicable) fail to be in compliance with any
of the financial covenants in this section.

 

		(a)	Definitions. The following definitions shall apply to this Section:

 

(i)          “GAAP”
shall mean generally accepted accounting principles in effect from time to time in the United States.

 

		(b)	Asset Retention. Borrower covenants that no assets from any Borrower or any Borrower Affiliate
is to be sold without prior Bank approval for the life of the loan.

 

4.2                 Sale
of Interest. There shall not be any sale or transfer of ownership of any interest in the Borrower without the Bank’s
prior written consent.

 

4.3                 Loans
or Advances. Borrower shall not make any loans or advances to any individual, partnership, corporation, limited liability company,
trust, or other organization or person, including without limitation its officers and employees; provided, however, that Borrower
may make advances to its employees, including its members, officers, with respect to expenses incurred or to be incurred by such
employees in the ordinary course of business which expenses are reimbursable by Borrower; and provided further, however, that Borrower
may extend credit in the ordinary course of business in accordance with customary trade practices.

 

4.4                 Investments.
The Borrower shall not make investments in, or advances to, any individual, partnership, corporation, limited liability company,
trust or other organization or person other than as previously specifically consented to in writing by the Bank. The Borrower will
not purchase or otherwise invest in or hold securities, nonoperating real estate or other nonoperating assets or purchase all or
substantially all the assets of any entity other than as previously specifically consented to in writing by the Bank.

 

4.5                 Merger.
Borrower shall not merge or consolidate or be merged or consolidated with or into any other entity.

 

4.6                 Sale
of Assets. Borrower shall not sell, lease or otherwise dispose of any of its assets, except in the ordinary and usual course
of business and except for the purpose of replacing machinery, equipment or other personal property which, as a consequence of
wear, duplication or obsolescence, is no longer used or necessary in the Borrower’s business, provided that fair consideration
is received therefor; provided, however, in no event shall the Borrower sell, lease or otherwise dispose of any equipment purchased
with the proceeds of any loans made by the Bank

 

4.7                 Other
Business. Borrower shall not engage in any business other than the business in which it is currently engaged or a business
reasonably allied thereto.

 

4.8                 Change
of Name, etc. Borrower shall not change its legal name or the State or the type of its formation, without giving the Bank at
least 30 days prior written notice thereof.

 

5.          DEFAULT

 

5.1                 Default.
“Event of Default” shall mean the occurrence of one or more of any of the following events;

 

		(a)	default of any liability, obligation, covenant or undertaking of the Borrower or any guarantor of the Obligations to the Bank,
hereunder or otherwise, including, without limitation, failure to pay in full and when due any installment of principal or interest
or default of the Borrower or any guarantor of the Obligations under any other Loan Document or any other agreement with the Bank
continuing for 30 days with respect to any default (other than with respect to the payment of money for which there is no grace
period);

 

    	6

    	 

    

 

		(b)	failure of the Borrower or any guarantor of the Obligations to maintain aggregate collateral security
value satisfactory to the Bank continuing for 30 days;

 

		(c)	default of any material liability, obligation or undertaking of the Borrower or any guarantor of
the Obligations to any other party continuing for 30 days;

 

		(d)	if any statement, representation or warranty heretofore, now or hereafter made by the Borrower
or any guarantor of the Obligations in connection with this Agreement or in any supporting financial statement of the Borrower
or any guarantor of the Obligations shall be determined by the Bank to have been false or misleading in any material respect when
made;

 

		(e)	if the Borrower or any guarantor of the Obligations is a corporation, trust, partnership or limited
liability company, the liquidation, termination or dissolution of any such organization, or the merger or consolidation of such
organization into another entity, or its ceasing to carry on actively its present business or the appointment of a receiver for
its property;

 

		(t)	the death of the Borrower or any guarantor of the Obligations and, if the Borrower or any guarantor
of the Obligations is a partnership or limited liability company, the death of any partner or member;

 

		(g)	the institution by or against the Borrower or any guarantor of the Obligations of any proceedings
under the Bankruptcy Code 11 USC §101 et seq. or any
other law in which the Borrower or any guarantor of the Obligations is alleged to be insolvent or unable to pay its debts as they
mature, or the making by the Borrower or any guarantor of the Obligations of an assignment for the benefit of creditors or the
granting by the Borrower or any guarantor of the Obligations of a trust mortgage for the benefit of creditors;

 

		(h)	the service upon the Bank of a writ in which the Bank is named as trustee of the Borrower or any
guarantor of the Obligations;

 

		(i)	a judgment or judgments for the payment of money shall be rendered against the Borrower or any
guarantor of the Obligations, and any such judgment shall remain unsatisfied and in effect for any period of thirty (30) consecutive
days without a stay of execution;

 

		(j)	any levy, lien (including mechanics lien), seizure, attachment, execution or similar process shall
be issued or levied on any of the property of the Borrower or any guarantor of the Obligations;

 

		(k)	the termination or revocation of any guaranty of the Obligations; or

 

		(l)	the occurrence of such a change in the condition or affairs (financial or otherwise) of the Borrower
or any guarantor of the Obligations, or the occurrence of any other event or circumstance, such that the Bank, in its sole discretion,
deems that it is insecure or that the prospects for timely or full payment or performance of any obligation of the Borrower or
any guarantor of the Obligations to the Bank has been or may be impaired.

 

5.2                 Acceleration.
If an Event of Default shall occur, at the election of the Bank, all Obligations shall become immediately due and payable without
notice or demand, except with respect to Obligations payable on DEMAND, which shall be due and payable on DEMAND, whether or not
an Event of Default has occurred.

 

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5.3                 Nonexclusive
Remedies. All of the Bank’s rights and remedies not only under the provisions of this Agreement but also under any
other agreement or transaction shall be cumulative and not alternative or exclusive, and may be exercised by the Bank at such
time or times and in such order of preference as the Bank in its sole discretion may determine,

 

6.          MISCELLANEOUS

 

6.1                 Waivers.
The Borrower waives notice of intent to accelerate, notice of acceleration, notice of nonpayment, demand, presentment, protest
or notice of protest of the Obligations, and all other notices, consents to any renewals or extensions of time of payment thereof,
and generally waives any and all suretyship defenses and defenses in the nature thereof.

 

6.2                 Waiver
of Homestead. To the maximum extent permitted under applicable law, the Borrower hereby waives and terminates any
homestead rights and/or exemptions respecting any of its property under the provisions of any applicable homestead laws,
including without limitation, Utah Code 78-23-4 and hereby agrees not to file a declaration of homestead under Utah Code
78-23-4.

 

6.3                 Deposit
Collateral. The Borrower hereby grants to the Bank a continuing lien and security interest in any and all deposits or other
sums at any time credited by or due from the Bank to the Borrower and any cash, securities, instruments or other property of the
Borrower in the possession of the Bank, whether for safekeeping or otherwise, or in transit to or from the Bank (regardless of
the reason the Bank had received the same or whether the Bank has conditionally released the same) as security for the full and
punctual payment and performance of all of the liabilities and obligations of the Borrower to the Bank and such deposits and other
sums may be applied or set off against such liabilities and obligations of the Borrower to the Bank at any time, whether or not
such are then due, whether or not demand has been made and whether or not other collateral is then available to the Bank.

 

6.4                 Indemnification.
The Borrower shall Indemnify, defend and hold the Bank and its directors, officers, employees, agents and attorneys (each an “Indemnitee”)
harmless of and from any claim brought or threatened against any Indemnitee by the Borrower, any guarantor or endorser of the Obligations,
or any other person (as well as from reasonable attorneys’ fees and expenses in connection therewith) on account of the Bank’s
relationship with the Borrower, or any guarantor or endorser of the Obligations (each of which may be defended, compromised, settled
or pursued by the Bank with counsel of the Bank’s election, but at the expense of the Borrower), except for any claim arising
out of the gross negligence or willful misconduct of the Bank. The within indemnification shall survive payment of the Obligations,
and/or any termination, release or discharge executed by the Bank in favor of the Borrower.

 

6.5                 Costs
and Expenses. The Borrower shall pay to the Bank on demand any and all costs and expenses (including, without limitation, reasonable
attorneys’ fees and disbursements, court costs, litigation and other expenses) incurred or paid by the Bank in establishing,
maintaining, protecting or enforcing any of the Bank’s rights or the Obligations, including, without limitation, any and
all such costs and expenses incurred or paid by the Bank in defending the Bank’s security interest in, title or right to
any collateral or in collecting or attempting to collect or enforcing or attempting to enforce payment of any Obligation.

 

6.6                 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute
but one agreement.

 

6.7                 Severability.
If any provision of this Agreement or portion of such provision or the application thereof to any person or circumstance shall
to any extent be held invalid or unenforceable, the remainder of this Agreement (or the remainder of such provision) and the application
thereof to other persons or circumstances shall not be affected thereby.

 

6.8                 Complete
Agreement. This Agreement and the other Loan Documents constitute the entire agreement and understanding between and among
the parties hereto relating to the subject matter hereof, and supersedes all prior proposals, negotiations, agreements and understandings
among the parties hereto with respect to such subject matter.

 

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6.9                 Binding
Effect of Agreement. This Agreement shall be binding upon and inure to the benefit of the respective heirs, executors, administrators,
legal representatives, successors and assigns of the parties hereto, and shall remain in full force and effect (and the Bank shall
be entitled to rely thereon) until released in writing by the Bank. The Bank may transfer and assign this Agreement and deliver
it to the assignee, who shall thereupon have all of the rights of the Bank; and the Bank shall then be relieved and discharged
of any responsibility or liability with respect to this Agreement. The Borrower may not assign or transfer any of its rights or
obligations under this Agreement. Except as expressly provided herein or in the other Loan Documents, nothing, expressed or implied,
is intended to confer upon any party, other than the parties hereto, any rights, remedies, obligations or liabilities under or
by reason of this Agreement or the other Loan Documents.

 

6.10               Further
Assurances. Borrower will from time to time execute and deliver to Bank such documents, and take or cause to be taken, all
such other or further action, as Bank may request in order to effect and confirm or vest more securely in Bank all rights contemplated
by this Agreement and the other Loan Documents (including, without limitation, to correct clerical errors) or to comply with applicable
statute or law.

 

6.11               Amendments
and Waivers. This Agreement may be amended and Borrower may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, if Borrower shall obtain the Bank’s prior written consent to each such amendment, action
or omission to act. No course of dealing and no delay or omission on the part of Bank in exercising any right hereunder shall operate
as a waiver of such right or any other right and waiver on any one or more occasions shall not be construed as a bar to or waiver
of any right or remedy of Bank on any future occasion.

 

6.12               Terms
of Agreement. This Agreement shall continue in full force and effect so long as any Obligations or obligation of Borrower to
Bank shall be outstanding, or the Bank shall have any obligation to extend any financial accommodation hereunder, and is supplementary
to each and every other agreement between Borrower and Bank and shall not be so construed as to limit or otherwise derogate from
any of the rights or remedies of Bank or any of the liabilities, obligations or undertakings of Borrower under any such agreement,
nor shall any contemporaneous or subsequent agreement between Borrower and the Bank be construed to limit or otherwise derogate
from any of the rights or remedies of Bank or any of the liabilities, obligations or undertakings of Borrower hereunder, unless
such other agreement specifically refers to this Agreement and expressly so provides.

 

6.13               Notices.
Any notices under or pursuant to this Agreement shall be deemed duly received and effective if delivered in hand to any
officer or agent of the Borrower or Bank, or if mailed by registered or certified mail, return receipt requested, addressed
to the Borrower or Bank at the address set forth in this Agreement or as any party may from time to time designate by written
notice to the other party.

 

6.14               Governing
Law. This Agreement shall be governed by the laws of the State of Utah without giving effect to the conflicts of laws principles
thereof.

 

6.15               Reproductions.
This Agreement and all documents which have been or may be hereinafter furnished by Borrower to the Bank may be reproduced by the
Bank by any photographic, photostatic, microfilm, xerographic or similar process, and any such reproduction shall be admissible
in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and
whether or not such reproduction was made in the regular course of business).

 

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6.16                Jurisdiction and Venue. Borrower
irrevocably submits to the nonexclusive jurisdiction of any Federal or state court sitting in Utah, over any suit, action or proceeding
arising out of or relating to this Agreement. Borrower irrevocably waives, to the fullest extent it may effectively do so under
applicable law, any objection it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought
in any such court and any claim that the same has been brought in an inconvenient forum. Borrower hereby consents to any and all
process which may be served in any such suit, action or proceeding, (i) by mailing a copy thereof by registered and certified mail,
postage prepaid, return receipt requested, to the Borrower’s address shown in this Agreement or as notified to the Bank and
(ii) by serving the same upon the Borrower in any other manner otherwise permitted by law, and agrees that such service shall in
every respect be deemed effective service upon Borrower.

 

6.17               JURY WAIVER. THE BORROWER
AND BANK EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, (A) WAIVE
ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS AGREEMENT, THE OBLIGATIONS, ALL MATTERS
CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND (B) AGREE NOT TO SEEK TO CONSOLIDATE ANY SUCH ACTION WITH
ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE, OR HAS NOT BEEN, WAIVED. THE BORROWER CERTIFIES THAT NEITHER THE BANK NOR ANY
OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WOULD NOT IN THE EVENT OF ANY
SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

 

Executed as of July 3, 2012.

 

	Witness:	 	Borrower:
	 	 	Meier Family Holding Company, LLC
	 	 	 	 
	 	 	By:	 
	 	 	 	Annette D Meier, Manager

 

Accepted: Proficio Bank

 

	By:	 

Name: Brett Smiley

Title: VP / SBA Business Development

 

	Loan Agreement - Obligor 1	© 2012 Medici, a division of Wolters Kluwer Financial Services

 

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Loan No. TBD

 

TERM NOTE

 

July 3, 2012

 

	$240,000,00	Cottonwood Heights, Utah

 

For value received,
the undersigned Meier Properties, Series LLC, an Utah limited liability company, with an address of 2221 North 3250
West, Vernal, Utah 84078 and Superior Drilling Products, LLC, an Utah limited liability company, with an address of
PO Box 1656, Vernal, Utah 84078 and Meier Family Holding Company, LLC, a Utah limited liability company, with an
address of 2221 North 3260 West, Vernal, Utah 84078 (collectively, the “Borrower”), jointly and severally,
promise to pay to the order of Proficio Bank, a State Chartered Commercial Bank with an address of 6985 Union Park Center, Suite
150, Cottonwood Heights, Utah 84047 (together with its successors and assigns, the ‘‘Bank”), the principal amount
of Two Hundred Forty Thousand Dollars and Zero Cents ($240,000.00) on or before July 3, 2017 (the “Maturity
Date”), as set forth below, together with interest from the date hereof on the unpaid principal balance from time to time
outstanding until paid in full. The Borrower shall pay consecutive monthly installments of principal and interest, as follows;
$2,604,63 commencing on August 3, 2012, and the same amount (except the last installment which shall be the unpaid
balance) on the 3rd of each month thereafter, until changed in accordance with this Note. The aggregate principal balance outstanding
shall bear interest thereon at a per annum rate equal to Two Percent (2.00%) above the Wall Street Journal Prime Rate (as
hereinafter defined). Upon any change in the interest rate in accordance with this Note, each monthly installment due and payable
thereafter (except the last installment which shall be the unpaid balance) shall be recalculated (increased or reduced) to reflect
the adjusted interest rate, the outstanding principal balance at such time and the remaining term of the 10 year amortization
period commencing on the date of this Note in accordance with the Bank’s calculation in the Bank’s sole discretion.

 

Notwithstanding anything
to the contrary in this Note, the interest rate on this Note is limited by a floor as follows: the minimum interest rate (i.e.
floor) is 5.50% per annum.

 

Wall Street Journal
Prime Rate means the highest rate published from time to time by the Wall Street Journal as the Prime Rate, or, in the event the
Wall Street Journal ceases publication of the Prime Rate, the base, reference or other rate then designated by the Bank, in its
sole discretion, for general commercial loan reference purposes, it being understood that such rate is a reference rate, not necessarily
the lowest, established from time to time, which serves as the basis upon which effective interest rates are calculated for loans
making reference thereto.

 

The effective interest
rate applicable to the Borrower’s loans evidenced hereby shall change on the date of each change in the Wall Street Journal
Prime Rate.

 

Principal and interest
shall be payable at the Bank’s main office or at such other place as the Bank may designate in writing in immediately available
funds in lawful money of the United States of America without set-off, deduction or counterclaim. Interest shall be calculated
on the basis of actual number of days elapsed and a 360-day year.

 

REPRESENTATIONS
AND WARRANTIES. Each Borrower represents and warrants:

 

Organization and Qualification.
If not an individual that: (i) it is duly formed and validly existing under the laws of the state of its formation, (ii) its exact
legal name is set forth in the first paragraph of this Note; (iii) it is in good standing under the laws of said state; (iv) it
has the power to own its property and conduct its business as now conducted and as currently proposed to be conducted, and; (v)
it is duly qualified to do business under the laws of each state where the nature of the business done or property owned requires
such qualification.

 

    	 

    	 

    

 

Address. Such
Borrower maintains its principal office at the address set forth in the first paragraph of this Note.

 

Authorization
and Valid Obligations. The execution, delivery and performance of this Note and all other documents and agreements
delivered in connection with this Note (the “Related Documents”) have been duly authorized by all necessary
actions of such Borrower and each represents a legal, valid and binding obligation of such Borrower and is fully enforceable
according to its terms, except as limited by laws relating to the enforcement of creditors’ rights.

 

Conflicts. Such
Borrower’s execution, delivery, and performance of this Note and all the Related Documents do not conflict with, result in
a violation of, or constitute a default under (1) any provision of any agreement or other instrument binding upon such Borrower
or (2) any law, governmental regulation, court decree, or order applicable to such Borrower.

 

Litigation. There
is no litigation, claim, investigation, administrative proceeding or similar action pending or threatened against such Borrower
which might materially adversely affect such Borrower’s financial condition or such Borrower’s ability to conduct its
business or to pay or perform its obligations to the Bank under this Note or the Related Documents except as have been disclosed
to and acknowledged by the Bank in writing.

 

Liens. Such Borrower
has good and clear record and marketable title to all of its properties and assets, and all of its properties and assets are free
and clear of all mortgages, liens, pledges, charges, encumbrances and setoffs, except as previously disclosed to and acknowledged
by the Bank in writing.

 

Financial Information.
Each financial statement of such Borrower provided to the Bank fairly presents the condition of such Borrower at the date thereof
and the results of the operations of such Borrower for the period indicated, all in conformity with generally accepted accounting
principles, consistently applied There have been no material adverse changes in the such Borrower’s financial condition or
business since the date of the most recent financial statements provided to the Bank.

 

AFFIRMATIVE COVENANTS. Each Borrower
covenants and agrees that it shall:

 

Financial Statements.
Furnish the Bank with the following:

 

Annual Financial Statements.
As soon as available to such Borrower, but in any event within Ninety (90) days after the end of each fiscal year, a full and complete
signed copy of financial statements in form acceptable to the Bank, in its sole discretion, which shall include a balance sheet
of such Borrower, as at the end of such year, statement of cash flows and statement of profit and loss of such Borrower reflecting
the results of its operations during such year.

 

Additional Requirements.
Such other financial statements and related information, in such form and detail as may be satisfactory to the Bank, within thirty
(30) days of the Bank’s request.

 

All financial statements
required to be provided under this Note shall be prepared in accordance with generally accepted accounting principles, applied
on a consistent basis, and certified by such Borrower as being true and correct.

 

Tax Returns. Furnish
the Bank with such Borrower’s filed Federal tax returns, including all schedules thereto, for the prior year within 30 days
after the date that such Borrower’s tax returns are required to be filed each such year or by such other date approved by
the Bank.

 

Right to Audit.
Permit the Bank to examine and audit such Borrower’s books and records at any time and from time to time.

 

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Conduct of Business.
Maintain its existence in good standing and comply with all laws and regulations of the United States and of any state or states
thereof and of any political subdivision thereof, and of any governmental authority which may be applicable to it or to its business.

 

Taxes. Promptly
pay all real and personal property taxes, assessments and charges and all franchise, income, unemployment, retirement benefits,
withholding, sales and other taxes assessed against it or payable by it before delinquent; except for any tax assessment or charge
which is being contested in good faith and with respect to which reserves have been established and are being maintained.

 

Maintenance. Keep
and maintain its properties, in good repair, working order and condition.

 

Notification of Material
Litigation. Promptly notify the Bank in writing of any litigation or of any investigative proceedings of a governmental agency
or authority commenced or threatened against it which would or might be materially adverse to the financial condition of such Borrower
or any guarantor of this Note.

 

Insurance. Maintain
in force property, casualty and liability insurance on its property and/or operations satisfactory to the Bank, against risks customarily
insured against by companies engaged in businesses similar to that of such Borrower containing such terms and written by such companies
satisfactory to the Bank, such insurance to be payable to the Bank as its interest may appear in the event of loss and to name
the Bank as insured pursuant to a standard loss payee clause; no loss shall be adjusted thereunder without the Bank’s approval;
and all such policies shall provide that they may not be canceled without first giving at least Thirty (30) clays written notice
of cancellation to the Bank.

 

NEGATIVE COVENANTS.
Each Borrower covenants and agrees that it shall not, without the prior written consent of the Bank:

 

Indebtedness.
Issue any evidence of indebtedness or create, assume, guarantee, become contingently liable for, or suffer to exist indebtedness
in addition to indebtedness to the Bank, except indebtedness or liabilities of such Borrower, other than for money borrowed, incurred
or arising in the ordinary course of business.

 

Sale of Interest.
Permit any sale or transfer of ownership of any interest in such Borrower unless such transfer shall not result in change in control
of such Borrower,

 

Loans or Advances.
Make any loans or advances to any organization or person, including without limitation its officers, members and employees;
provided, however, that such Borrower may make advances to its employees, including its officers, with respect to expenses incurred
or to be incurred by such employees in the ordinary course of business which expenses are reimbursable by such Borrower; and provided
further, however, that such Borrower may extend credit in the ordinary course of business in accordance with customary trade practices.

 

Dividends and Distributions.
Pay any dividends on or make any distribution in cash or in property, or redeem, purchase or otherwise acquire, directly or indirectly,
any stock, partnership, membership, beneficial or other ownership interests in such Borrower, except, so long as such Borrower
is not in default hereunder, if such Borrower is a Subchapter S corporation, under the regulations of the Internal Revenue Service
of the United States, distributions to the stockholders of such Borrower in such amounts as are necessary to pay the tax liability
of such stockholders due as a result of such stockholders’ interest in such Borrower.

 

Investments. Make
investments in, or advances to, any Organization or person other than as previously advised to the Bank in writing.

 

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Merger. Merge
or consolidate or be merged or consolidated with or into any other entity.

 

Capital Expenditures.
Make or commit to make capital expenditures by lease, purchase, or otherwise, except in the ordinary and usual course of business
for the purpose of replacing machinery, equipment or other personal property which, as a consequence of wear, duplication or obsolescence,
is no longer used or necessary in such Borrower’s business.

 

Sale of Assets.
Sell, lease or otherwise dispose of any of its assets, except in the ordinary and usual course of business and except for the purpose
of replacing machinery, equipment or other personal property which, as a consequence of wear, duplication or obsolescence, is no
longer used or necessary in such Borrower’s business.

 

Restriction on Liens.
Grant any security interest in, or mortgage of, any of its properties or assets except liens or security interests for taxes or
assessments if not yet due and payable, purchase-money liens or security interests, or liens in favor of the Bank.

 

Other Business.
Engage in any business other than the business in which it is currently engaged or a business reasonably allied thereto.

 

Change of Name, etc.
Change its legal name or the State or the type of its organization or the location of its principal office, without giving the
Bank at least 30 days prior written notice thereof.

 

At the option of the
Bank, this Note shall become immediately due and payable without notice or demand upon the occurrence at any time of any of the
following events of default (each, an “Event of Default”): (1) default of any liability, obligation, covenant or undertaking
of the Borrower, any endorser or any guarantor hereof to the Bank, hereunder or otherwise, including, without limitation, failure
to pay in full and when due any installment of principal or interest or default of the Borrower, any endorser or any guarantor
hereof under any other loan document delivered by the Borrower, any endorser or any guarantor, or in connection with the loan
evidenced by this Note or any other agreement by the Borrower, any endorser or any guarantor with the Bank continuing for 30 days
with respect to any default (other than with respect to the payment of money for which there is no grace period); (2) failure
of the Borrower, any endorser or any guarantor hereof to maintain aggregate collateral security value satisfactory to the Bank
continuing for 30 days; (3) default of any material liability, obligation or undertaking of the Borrower, any endorser or any
guarantor hereof to any other party continuing for 30 days; (4) if any statement, representation or warranty heretofore, now or
hereafter made by the Borrower, any endorser or any guarantor hereof in connection with the loan evidenced by this Note or in
any supporting financial statement of the Borrower, any endorser or any guarantor hereof shall be determined by the Bank to have
been false or misleading in any material respect when made; (5) if the Borrower, any endorser or any guarantor hereof is a corporation,
trust, partnership or limited liability company, the liquidation, termination or dissolution of any such organization, or the
merger or consolidation of such organization into another entity, or its ceasing to carry on actively its present business or
the appointment of a receiver for its property; (6) the death of the Borrower, any endorser or any guarantor hereof and, if the
Borrower, any endorser or any guarantor hereof is a partnership or limited liability company, the death of any partner or member;
(7) the institution by or against the Borrower, any endorser or any guarantor hereof of any proceedings under the Bankruptcy Code
11 USC §101 et seq. or any other law in which the
Borrower, any endorser or any guarantor hereof is alleged to be insolvent or unable to pay its debts as they mature, or the making
by the Borrower, any endorser or any guarantor hereof of an assignment for the benefit of creditors or the granting by the Borrower,
any endorser or any guarantor hereof of a trust mortgage for the benefit of creditors; (8) the service upon the Bank of a writ
in which the Bank is named as trustee of the Borrower, any endorser or any guarantor hereof; (9) a judgment or judgments for the
payment of money shall be rendered against the Borrower, any endorser or any guarantor hereof, and any such judgment shall remain
unsatisfied and in effect for any period of thirty (30) consecutive days without a stay of execution; (10) any levy, lien (including
mechanics lien) except as permitted under any of the other loan documents between the Bank and the Borrower, seizure, attachment,
execution or similar process shall be issued or levied on any of the property of the Borrower, any endorser or any guarantor hereof;
(11) the termination or revocation of any guaranty hereof; or (12) the occurrence of such a change in the condition or affairs
(financial or otherwise) of the Borrower, any endorser or any guarantor hereof, or the occurrence of any other event or circumstance,
such that the Bank, in its sole discretion, deems that it is insecure or that the prospects for timely or full payment or performance
of any obligation of the Borrower, any endorser or any guarantor hereof to the Bank has been or may be impaired.

 

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Any payments received
by the Bank on account of this Note shall, at the Bank’s option, be applied first, to any costs, expenses or charges then
owed to the Bank by the Borrower; second, to accrued and unpaid interest; third, to the unpaid principal balance hereof; and the
balance to escrows, if any. Notwithstanding the foregoing, any payments received after the occurrence and during the continuance
of an Event of Default shall be applied in such manner as the Bank may determine. The Borrower hereby authorizes the Bank to charge
any deposit account which the Borrower may maintain with the Bank for any payment required hereunder without prior notice to the
Borrower.

 

If pursuant to the
terms of this Note, the Borrower is at any time obligated to pay interest on the principal balance at a rate in excess of the maximum
interest rate permitted by applicable law for the loan evidenced by this Note, the applicable interest rate shall be immediately
reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction
of principal and not on account of the interest due hereunder.

 

The Borrower represents
to the Bank that the proceeds of this Note will not be used for personal, family or household purposes or for the purpose of purchasing
or carrying margin stock or margin securities within the meaning of Regulations U and X of the Board of Governors of the Federal
Reserve System, 12 C.F.R. Parts 221 and 224.

 

The Borrower and each
endorser and guarantor hereof grant to the Bank a continuing lien on and security interest in any and all deposits or other sums
at any time credited by or due from the Bank to the Borrower and/or each endorser or guarantor hereof and any cash, securities,
instruments or other property of the Borrower and each endorser and guarantor hereof in the possession of the Bank, whether for
safekeeping or otherwise, or in transit to or from the Bank (regardless of the reason the Bank had received the same or whether
the Bank has conditionally released the same) as security for the full and punctual payment and performance of all of the liabilities
and obligations of the Borrower and/or any endorser or guarantor hereof to the Bank and such deposits and other sums may be applied
or set off against such liabilities and obligations of the Borrower or any endorser or guarantor hereof to the Bank at any time,
whether or not such are then due, whether or not demand has been made and whether or not other collateral is then available to
the Bank.

 

No delay or omission
on the part of the Bank in exercising any right hereunder shall operate as a waiver of such right or of any other right of the
Bank, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on
any future occasion. The Borrower and every endorser or guarantor of this Note, regardless of the time, order or place of signing,
waive presentment, demand, protest, notice of intent to accelerate, notice of acceleration and all other notices of every kind
in connection with the delivery, acceptance, performance or enforcement of this Note and assent to any extension or postponement
of the time of payment or any other indulgence, to any substitution, exchange or release of collateral, and to the addition or
release of any other party or person primarily or secondarily liable and waives all recourse to suretyship and guarantor defenses
generally, including any defense based on impairment of collateral. To the maximum extent permitted by law, the Borrower and each
endorser and guarantor of this Note waive and terminate any homestead rights and/or exemptions respecting any premises under the
provisions of any applicable homestead laws, including without limitation, Utah Code 78-23-4 and hereby agrees not to file a declaration
of homestead under Utah Code 78-23-4.

 

The Borrower and each
endorser and guarantor of this Note shall indemnify, defend and hold the Bank and its directors, officers, employees, agents and
attorneys (each an “Indemnitee’’) harmless against any claim brought or threatened against any Indemnitee by
the Borrower, by any endorser or guarantor, or by any other person (as well as from attorneys’ reasonable fees and expenses
in connection therewith) on account of the Bank’s relationship with the Borrower or any endorser or guarantor hereof (each
of which may be defended, compromised, settled or pursued by the Bank with counsel of the Bank’s selection, but at the expense
of the Borrower and any endorser and/or guarantor), except for any claim arising out of the gross negligence or willful misconduct
of the Bank.

 

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The Borrower and each
endorser and guarantor of this Note agree to pay, upon demand, costs of collection of all amounts under this Note including, without
limitation, principal and interest, or in connection with the enforcement of, or realization on, any security for this Note, including,
without limitation, to the extent permitted by applicable law, reasonable attorneys’ fees and expenses. Upon the occurrence
and during the continuance of an Event of Default, interest shall accrue at a rate per annum equal to the aggregate of 4.0% plus
the rate provided for herein. If any payment due under this Note is unpaid for 10 days or more, the Borrower shall pay, in addition
to any other sums due under this Note (and without limiting the Bank’s other remedies on account thereof), a late charge
equal to 5.0% of such unpaid amount.

 

This Note shall be
binding upon the Borrower and each endorser and guarantor hereof and upon their respective heirs, successors, assigns and legal
representatives, and shall inure to the benefit of the Bank and its successors, endorsees and assigns.

 

The liabilities of
the Borrower and each Borrower, if more than one, and any endorser or guarantor of this Note are joint and several; provided, however,
the release by the Bank of the Borrower or any one or more endorsers or guarantors shall not release any other person obligated
on account of this Note. Any and all present and future debts of the Borrower to any endorser or guarantor of this Note are subordinated
to the full payment and performance of all present and future debts and obligations of the Borrower to the Bank. Each reference
in this Note to the Borrower and each Borrower, if more than one, and endorser or guarantor of this Note, is to such person individually
and also to all such persons jointly. No person obligated on account of this Note may seek contribution from any other person also
obligated, unless and until all liabilities, obligations and indebtedness to the Bank of the person from whom contribution is sought
have been irrevocably satisfied in full. The release or compromise by the Bank of any collateral shall not release any person obligated
on account of this Note.

 

The Borrower and each
endorser and guarantor hereof each authorizes the Bank to complete this Note if delivered incomplete in any respect. A photographic
or other reproduction of this Note may be made by the Bank, and any such reproduction shall be admissible in evidence with the
same effect as the original itself in any judicial or administrative proceeding, whether or not the original is in existence.

 

The Borrower will from
time to time execute and deliver to the Bank such documents, and take or cause to be taken, all such other further action, as the
Bank may request in order to effect and confirm or vest more securely in the Bank all rights contemplated by this Note or any other
loan documents related thereto (including, without limitation, to correct clerical errors) or to vest more fully in or assure to
the Bank the security interest in any collateral securing this Note or to comply with applicable statute or law.

 

This Note shall be
governed by the laws of the State of Utah without giving effect to the conflicts of laws principles thereof.

 

Any notices under or
pursuant to this Note shall be deemed duly received and effective if delivered in hand to any officer or agent of the Borrower
or Bank, or if mailed by registered or certified mail, return receipt requested, addressed to the Borrower or Bank at the address
set forth in this Note or as any party may from time to time designate by written notice to the other party.

 

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The Borrower and each
endorser and guarantor of this Note each irrevocably submits to the nonexclusive jurisdiction of any Federal or state court sitting
in Utah, over any suit, action or proceeding arising out of or relating to this Note. Each of the Borrower and each endorser and
guarantor irrevocably waives, to the fullest extent it may effectively do so under applicable law, any objection it may now or
hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that the
same has been brought in an inconvenient forum. Each of the Borrower and each endorser and guarantor hereby consents to any and
all process which may be served in any such suit, action or proceeding, (i) by mailing a copy thereof by registered and
certified mail, postage prepaid, return receipt requested, to the Borrower’s, endorser’s or guarantor’s address
shown below or as notified to the Bank and (ii) by serving the same upon the Borrower(s), endorser(s) or guarantor(s) in any other
manner otherwise permitted by law, and agrees that such service shall in every respect be deemed effective service upon the Borrower
or such endorser or guarantor.

 

THE BORROWER, EACH
ENDORSER AND GUARANTOR AND THE BANK EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH
LEGAL COUNSEL, (A) WAIVES ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS NOTE, ANY OF
THE OBLIGATIONS OF THE BORROWER, EACH ENDORSER AND GUARANTOR TO THE BANK, AND ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND (B) AGREES NOT TO SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CAN
NOT BE, OR HAS NOT BEEN, WAIVED. THE BORROWER, EACH ENDORSER AND GUARANTOR AND THE BANK EACH CERTIFIES THAT NEITHER THE BANK NOR
ANY OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WOULD NOT IN THE EVENT OF
ANY SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

 

Executed as of July
3, 2012.

 

	Witness:	 	Borrower:
	 	 	 
	 	 	Meier Properties, Series LLC
	 	 	 	 
	 	 	By:	 
	 	 	 	Annette D Meier, Manager
	 	 	 	 
	 	 	2221 North 3250 West
	 	 	Vernal, Utah
	 	 	84078

 

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	Witness:	 	Borrower:
	 	 	 
	 	 	Superior Drilling Products, LLC
	 	 	 	 
	 	 	By:	 
	 	 	 	Annette D Meier, Member
	 	 	 	 
	 	 	PO Box 1656
	 	 	Vernal, Utah
	 	 	84078

 

	Witness:	 	Borrower:
	 	 	 
	 	 	Meier Family Holding Company, LLC
	 	 	 	 
	 	 	By:	 
	 	 	 	Annette D Meier, Manager
	 	 	 	 
	 	 	2221 North 3250 West
	 	 	Vernal, Utah
	 	 	84078

 

	Promissory Notes	© 2012 Medici, a division of Wolters Kluwer Financial Services

 

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