Document:

Exhibit 10.42

 

Loan No. TBD

 

TERM NOTE

February 4, 2013

 

	$592,000.00	Cottonwood Heights, Utah

 

For value received,
the undersigned Meier Leasing, LLC, an Utah limited liability company, with an address of 2221 N. 3250 W., Vernal, Utah
84078 and Meier Management Company, LLC, an Utah limited liability company, with an address of 2221 N. 3250 W., 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 Five Hundred Ninety-Two Thousand Dollars
and Zero Cents ($592,000.00) on or before February 4, 2020 (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: $8,577.49 commencing on March 4, 2013,
and the same amount (except the last installment which shall be the unpaid balance) on the 4th day 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 and One-Half Percent (2.50%) above the Wall Street Journal Prime Rate (as hereinafter defined) with a
Floor Rate of 6.00%.; and a cap rate of 10.00%. Each quarter, any change in the interest rate in accordance with this Note,
each the payments for that quarter 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 7 year amortization period commencing on the date of this Note in accordance with the
Bank’s calculation in the Bank’s sole discretion.

 

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 quarterly reflecting each change in the Wall Street
Journal Prime Rate.

 

This Note is secured
by all collateral granted to the Bank by the Borrower or any endorser or guarantor hereof or by any other party and shall be secured
by any additional collateral hereafter granted to the Bank by the Borrower or any endorser or guarantor hereof or by any other
party.

 

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.

 

    	 

    	 

    

 

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.

 

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.

 

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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 oh 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.

 

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.

 

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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.

 

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 February
4, 2013.

 

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	Witness:	 	Borrower:
	 	 	 
	 	 	Meier Leasing, LLC
	 	 	 
	/s/ Brett Smiley	 	By:	/s/ Annette D Meier 
	 	 	 	Annette D Meier, Manager
	 	 	 	 
	 	 	2221 N. 3250 W,
	 	 	Vernal, Utah
	 	 	84078
	 	 	 
	Witness:	 	Borrower:
	 	 	 
	 	 	Meier Management Company, LLC
	 	 	 
	/s/ Brett Smiley	 	By:	/s/ Annette
    D Meier
	 	 	 	Annette D Meier, Manager
	 	 	 	 
	 	 	2221 N. 3250 W.
	 	 	Vernal, Utah
	 	 	84078

 

	Promissory Notes	© 2013 Medici, a division of Wolters Kluwer Financial Services

 

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AGREEMENT TO PROVIDE INSURANCE

 

	Grantor:	Meier Leasing, LLC	 	Bank:	Proficio Bank
	 	2221 N. 3250 W.	 	 	6985 Union Park Center, Suite 150
	 	Vernal, Utah 84078	 	 	Cottonwood Heights, Utah 84047
	 	 	 	 	 

 

Credit Accommodations: That certain
Term Note, dated February 4, 2013, by Meier Leasing, LLC and Meier Management Company, LLC in favor of the Bank in the original
principal amount of $592,000.00 with a maturity date of February 4, 2020 (the “Note”); and collectively, along with
all other agreements, documents, certificates and instruments delivered in connection therewith,( the “Loan Documents”).

 

Insurance Requirements: Grantor,
Meier Leasing, LLC (the “Grantor”), understands that the Loan Documents set forth insurance requirements in connection
with the Bank extending the Credit Accommodations to or for the benefit of the Grantor. The following insurance coverage is required
on the collateral described below (the ‘‘Collateral”):

 

	Collateral:	Okuma Multus B400-W, Serial Number 148243; CNC Bit Grinding Machine Serial # 201009-001

	Type:	All risks, including fire, theft and liability
	Amount:	Full Insurance Value
	Basis:	Replacement
	Endorsements:	Lender loss payable clause with stipulation that coverage will not be cancelled or diminished without a minimum of 30 days prior written notice to Bank
	Comments:	Proficio Bank (and its successors and assigns) to be named as Loss Payee/Mortgagee and Additional Insured
	Latest Delivery Date:	February 4, 2013

	Insurance Company:	Grantor may obtain insurance from any insurance company Grantor may choose that is reasonably acceptable to Bank.

	Insurance Mailing Address:	All documents and other materials relating to insurance should be mailed, delivered to the following address:
	Proficio Bank	 
	6985 Union Park Center Suite 150 	 
	Cottonwood Heights, Utah 84047	 

 

Failure to Provide Evidence of Insurance;
Grantor shall deliver to Bank, on or before the delivery date described above, proof of the required Insurance, In the event that
Grantor falls to provide evidence of the insurance required hereunder, Bank may, at its option, secure such insurance. The cost
of any such insurance, at the option of Bank, shall be payable on demand or shall be added to the indebtedness as provided In the
Loan Documents, Bank may obtain insurance with different coverage and at higher rates than what Grantor could have obtained and
Bank may obtain such insurance from a company other than the one Grantor would choose.

 

Grantor consents to Bank using or disclosing
information regarding the Credit Accomodations, the Collateral, or both, for the purpose of securing or replacing the insurance
required hereunder.

 

THIS AGREEMENT TO PROVIDE INSURANCE
IS DATED AS OF February 4, 2013.

 

	 	Grantor:
	 	 
	 	Meier Leasing, LLC

 

	 	By:	/s/ Annette D Meier
	 	 	Annette D Meier, Manager

 

    	 

    	 

    

 

NOTICE OF INSURANCE REQUIREMENTS

 

	Grantor:	Meier Leasing, LLC	Bank:	Proficio Bank
	 	2221 N. 3250 W.	 	6985 Union Park Center, Suite 150
	 	Vernal, Utah 84078	 	Cottonwood Heights, Utah 84047
	 	 	 	 

 

	To:	Attn: Insurance Agent	Date:	 

  

Dear Insurance Agent:

 

Proficio Bank is extending credit accommodations
to or for the benefit of Grantor, Meier Leasing, LLC (“Grantor”), which credit accommodations are being secured by
the collateral described below. Please send evidence of insurance and any required endorsements on such collateral to Proficio
Bank.

 

	Collateral;	Okuma Multus B400-W, Serial Number 148243; CNC Bit Grinding Machine Serial # 201009-001

	Type:	All risks, including fire, theft and liability
	Amount:	Full Insurance Value
	Basis:	Replacement
	Endorsements:	Lender loss payable clause with stipulation that coverage will not be cancelled or diminished without a minimum of 30 days prior written notice to Bank
	Comments:	Proficio Sank (and its successors and assigns) to be named as Loss Payee/Mortgagee and Additional Insured
	Latest Delivery Date:	February 4, 2013

 

	 	Grantor:
	 	 
	 	Meier Leasing, LLC

 

	 	By:	/s/ Annette D Meier, Manager
	 	 	Annette D Meier, Manager

 

Return to:

Proficio Bank

6985 Union Park Center

Suite 150

Cottonwood Heights, Utah 84047

 

    	 

    	 

    

 

UNLIMITED GUARANTY

 

TO:             Proficio
Bank, a State Chartered Commercial Bank (the “Bank”)

 

RE:              Meier
Leasing, LLC, an Utah limited liability company and Meier Management Company, LLC, an Utah limited liability company (the ‘‘Borrowers”)

 

To induce the Bank
to make or continue to make loans, advances, or grant Other financial accommodations to the Borrowers or any of them, in consideration
thereof and for loans, advances or financial accommodations heretofore or hereafter granted by the Bank to or for the account
of the Borrowers or any of them, the undersigned Gilbert Troy Meier (the “Guarantor”) absolutely, unconditionally
and irrevocably guarantees the full and punctual payment to the Bank of all sums which may be presently due and owing and of all
sums Which shall in the future become due and owing to the Bank from the Borrowers or any of them, whether direct or indirect,
whether as a borrower, guarantor, surety or otherwise, including without limitation, respecting that certain Term Note,
dated February 4, 2013, by Meier Leasing, LLC and Meier Management Company, LLC in favor of the Bank in the original
principal amount of $592,000.00, including, without limitation, interest, attorneys’ fees and other amounts accruing
after the filing of a petition in bankruptcy by or against any Borrower, notwithstanding the discharge of such Borrower from such
obligations, together with all costs and expenses incurred by the Bank in connection with such obligations, this Unlimited Guaranty
(this “Guaranty”) and the enforcement thereof, and also guarantees the due performance by the Borrowers or any of
them of all their obligations under all other present and future contracts and agreements with the Bank. This is a guaranty of
payment and not collection.

 

The reference to
one or more specific obligations herein shall not be construed as a limitation of any kind of the Guarantor’s obligations
hereunder, which shall be unlimited as to all present and future obligations of the Borrowers as described above.

 

Guarantor also agrees:

 

		(1)	to indemnify and hold the Bank and its directors, officers, employees, agents and attorneys harmless
from and against all claims, obligations, demands and liabilities, by whomsoever asserted, and against all losses in any way suffered,
incurred or paid as a result of or in any way arising out of or following or consequential to transactions with any of the Borrowers,
except for any claim arising out of the gross negligence or willful misconduct of the Bank;

 

		(2)	that this Guaranty shall not be impaired by any modification, supplement, extension, renewal or
amendment of any contract or agreement to which the parties thereto may hereafter agree, nor by any modification, increase, release
or other alteration of any of the obligations hereby guaranteed or of any security therefor, nor by any agreements or arrangements
whatsoever with any of the Borrowers or anyone else, all of which may be done without notice to or consent by the Guarantor;

 

		(3)	that the liability of the Guarantor hereunder is direct and unconditional and due immediately upon
default of any of the Borrowers without demand or notice and without requiring the Bank first to resort to any other right, remedy
or security;

 

		(4)	that Guarantor shall have no right of subrogation, reimbursement or indemnity whatsoever until
the Bank is indefeasibly paid in full, nor any right of recourse to security for the debts and obligations of any of the Borrowers
to the Bank;

 

		(5)	that the liability of the Guarantor is unlimited and shall be joint and several with the liabilities
of any other guarantors;

 

    	 

    	 

    

 

		(6)	that if any of the Borrowers or the Guarantor or any other guarantor should at any time become
insolvent or make a general assignment, or if a petition in bankruptcy or any insolvency or reorganization proceedings shall be
filed or commenced by, against or in respect of any of the Borrowers or the Guarantor, or any other guarantor of the obligations
guaranteed hereby, any and all obligations of the Guarantor shall be immediately due and payable without notice;

 

		(7)	that the Bank’s books and records showing the account between the Bank and any of the Borrowers
shall be admissible in any action or proceeding, shall be binding upon the Guarantor for the purpose of establishing the items
therein set forth and shall constitute conclusive proof thereof;

 

		(8)	that this Guaranty is, as to the Guarantor, a continuing Guaranty that shall remain effective under
successive transactions until the obligations guaranteed hereby are irrevocably paid in full;

 

		(9)	that the death of Guarantor shall not effect the termination of this Guaranty as to Guarantor providing,
that in any event within Sixty (60) days after the death of the Guarantor, any Borrower or any surviving guarantor shall provide
to the Bank evidence that the estate of the Guarantor confirms its obligations to the Bank under this Guaranty;

 

		(10)	that termination, release or limitation of any guaranty of the obligations guaranteed hereby by
any other guarantor shall not affect the continuing liability hereunder of the Guarantor;

 

		(11)	that nothing shall discharge or satisfy the liability of the Guarantor hereunder except the full
indefeasible payment and performance of all of each Borrower’s debts and obligations to the Bank with interest and costs
of collection;

 

		(12)	that this Guaranty shall not be affected by the illegality, invalidity or unenforceability of the
obligations guaranteed, by any fraudulent, illegal or improper act by any of the Borrowers, the legal incapacity or any other defense
of any of the Borrowers, the Guarantor or any other person obligated to the Bank consequential to transactions with any of the
Borrowers nor by the invalidation, by operation of law or otherwise, of all or any part of the obligations guaranteed hereby, including
but not limited to any interest accruable on the obligations guaranteed hereby during the pendency of any bankruptcy or receivership
proceeding of any of the Borrowers;

 

		(13)	that any and all present and future debts and obligations of any of the Borrowers to Guarantor
are hereby waived and postponed in favor of and subordinated to the full indefeasible payment and performance of all present and
future debts and obligations of any of the Borrowers to the Bank;

 

		(14)	that the Guarantor hereby grants to the Bank a continuing lien and security interest in all deposits
or other sums at any time credited by or due from the Bank to the Guarantor and any property of the Guarantor at any time 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 obligations guaranteed hereby, and such deposits and other sums may be applied or set off against such
obligations 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;

 

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		(15)	that if at any time payment of all or any part of the obligations guaranteed hereunder is
                                                                  rescinded or otherwise must be restored by the Bank to any of the Borrowers or to the creditors of any of the Borrowers or
                                                                  any representative of any of the Borrowers or representative of any of the Borrowers’ creditors as a voidable
                                                                  preference or fraudulent transfer or conveyance upon the insolvency, bankruptcy or reorganization of any of the Borrowers or
                                                                  the Guarantor, or to the creditors of the Guarantor or any representative of the Guarantor or representative of the creditors
                                                                  of Guarantor upon the insolvency, bankruptcy or reorganization of the Guarantor or otherwise, this Guaranty shall continue to
                                                                  be effective or be reinstated, as the case may be, as though such payments had not been made, and shall survive as an
                                                                  obligation of the Guarantor, and shall not be discharged or satisfied by said payment or payments, notwithstanding the return
                                                                  of the original of this Guaranty to the Guarantor or to any of the Borrowers, or any other apparent termination of
                                                                  Guarantor’s obligations hereunder;

 

		(16)	that any rights and remedies available to the Bank under this Guaranty are cumulative, and not
exclusive of any rights and remedies otherwise available to the Bank at law or in equity;

 

		(17)	that the Bank’s delay or omission in exercising any of the Bank’s rights and remedies
shall not constitute a waiver of these rights and remedies, nor shall the Bank’s waiver of any right or remedy operate as
a waiver of any other right or remedy available to the Bank. The Bank’s waiver of any right or remedy on any one occasion
shall not be considered a waiver of same on any subsequent occasion, nor shall this be considered to be a continuing waiver;

 

		(18)	that this Guaranty incorporates all discussions and negotiations between the Bank and the Guarantor
concerning the guaranty and indemnification provided by the undersigned hereby, and that no such discussions or negotiations shall
limit, modify, or otherwise affect the provisions hereof, there are no preconditions to the effectiveness of this Guaranty and
that no provision hereof may be altered, amended, waived, canceled or modified, except by a written instrument executed and acknowledged
by the Bank’s duly authorized officer;

 

		(19)	that this Guaranty and all documents which have been or may be hereinafter furnished by the Guarantor
to the Bank may be reproduced by the Bank by any photographic, photostatic, microfilm, xerographic or similar process, and that
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); and

 

		(20)	that the Guarantor shall deliver
                                         to the Bank and on or before April, 1 in any year and upon request therefor, personal
                                         financial statements addressed to the Bank in form satisfactory to the Bank, and the
                                         Guarantor represents and warrants the accuracy of any information contained therein and
                                         that so long as this Guaranty remains in effect, Guarantor shall provide the Bank with
                                         copies of Guarantor’s filed Federal and state tax returns for the prior year within
                                         120 days after the date that Guarantor’s tax returns are required to be
                                         filed each such year or such other date approved by the Bank.

 

Guarantor waives;
notice of acceptance hereof, presentment and protest of any instrument and notice thereof, notice of default and all other notices
to which the Guarantor might otherwise be entitled; and any and all defenses, including without limitation, any and all defenses
which any of the Borrowers or any other party may have to the fullest extent permitted by law, any defense to this Guaranty based
on impairment of collateral or on suretyship defenses of every type; any right to exoneration or marshaling. To the maximum extent
permitted by law, Guarantor waives and terminates any homestead rights and/or exemptions respecting any premises under the provisions
of any applicable homestead law, including without limitation, Utah Code 78-23-4 and hereby agrees not to file a declaration of
homestead under Utah Code 78-23-4. To the extent that it lawfully may, Guarantor hereby further agrees not to invoke any law relating
to the marshaling of collateral which might cause delay in or impede the enforcement of the Bank’s rights under this Guaranty
or otherwise respecting the guaranteed obligations, and to the extent that it lawfully may do so, the Guarantor hereby irrevocably
waives the benefits of all such laws. Except as otherwise provided by applicable law, the Bank shall have no duty as to the collection
or protection of any collateral, if any, securing the guaranteed obligations beyond the safe custody thereof.

 

    	3

    	 

    

 

Guarantor will from
time to time execute and deliver to the Bank, 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 the rights contemplated in this Guaranty (including, without
limitation, to correct clerical errors) or respecting any of the obligations guaranteed hereby or to comply with applicable statute
or law.

 

This Guaranty shall
be governed by the laws of the State of Utah without giving effect to the conflicts of laws principles thereof, shall be binding
upon the heirs, executors, administrators, successors and assigns of the Guarantor and shall inure to the benefit of the Bank’s
successors and assigns.

 

If any provision of
this Guaranty is found to be invalid, illegal or unenforceable, the validity of the remainder of the Guaranty shall not be affected.

 

Guarantor 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 Guaranty. 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. 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 Guarantor’s address shown below or as notified to the Bank and (ii) by serving
the same upon the Guarantor in any other manner otherwise permitted by law, and agrees that such service shall in every respect
be deemed effective service upon the Guarantor.

 

GUARANTOR
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 GUARANTY, THE OBLIGATIONS
GUARANTEED HEREBY, 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 CAN NOT BE, OR HAS NOT BEEN WAIVED, GUARANTOR 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 and dated
February 4, 2013.

 

	Witness:	 	Guarantor:
	 	 	 
	/s/ Brett Smiley	 	/s/ Gilbert Troy Meier
	 	 	Gilbert Troy Meier, individually

 

	 	Address:	2221 N 3250 West
	 	 	Cernal, Utah
	 	 	84078

 

    	4

    	 

    

 

STATE OF UTAH

COUNTY OF Salt Lake, SS.

 

The foregoing instrument
was acknowledged before me this 4th day of February, 2013, by Gilbert Troy Meier.

 

		 	MIRANDA N. STUMPH, NOTARY PUBLIC
	 	MY COMMISSION EXPIRES: 3-18-2014
	 	MIRANDA N. STUMPH
	 	TYPE OR PRINT NAME
	 	 
	 	 

 

	Guaranty -  Guarantor 1	© 2013 Medici, a division of Wolters Kluwer Financial Services

 

    	5

    	 

    

 

UNLIMITED GUARANTY

 

TO:        Proficio
Bank, a State Chartered Commercial Bank (the “Bank”)

 

RE:        Meier
Leasing, LLC, an Utah limited liability company and Meier Management Company, LLC, an Utah limited liability company (the “Borrowers”)

 

To induce the Bank
to make or continue to make loans, advances, or grant other financial accommodations to the Borrowers or any of them, in consideration
thereof and for loans, advances or financial accommodations heretofore or hereafter granted by the Bank to or for the account
of the Borrowers or any of them, the undersigned Annette D Meier (the “Guarantor”) absolutely, unconditionally
and irrevocably guarantees the full and punctual payment to the Bank of all sums which may be presently due and owing and of all
sums which shall in the future become due and owing to the Bank from the Borrowers or any of them, whether direct or indirect,
whether as a borrower, guarantor, surety or otherwise, including without limitation, respecting that certain Term Note, dated
February 4, 2013, by Meier Leasing, LLC and Meier Management Company, LLC in favor of the Bank in the original principal
amount of $592,000.00, including, without limitation, interest, attorneys’ fees and other amounts accruing after
the filing of a petition in bankruptcy by or against any Borrower, notwithstanding the discharge of such Borrower from such obligations,
together with all costs and expenses incurred by the Bank in connection with such obligations, this Unlimited Guaranty (this “Guaranty”)
and the enforcement thereof, and also guarantees the due performance by the Borrowers or any of them of all their obligations
under all other present and future contracts and agreements with the Bank, This is a guaranty of payment and not collection.

 

The reference to
one or more specific obligations herein shall not be construed as a limitation of any kind of the Guarantor’s obligations
hereunder, which shall be unlimited as to all present and future obligations of the Borrowers as described above.

 

Guarantor also agrees:

 

		(1)	to indemnify and hold the Bank and its directors, officers, employees, agents and attorneys harmless
from and against all claims, obligations, demands and liabilities, by whomsoever asserted, and against all losses in any way suffered,
Incurred or paid as a result of or in any way arising out of or following or consequential to transactions with any of the Borrowers,
except for any claim arising out of the gross negligence or willful misconduct of the Bank;

 

		(2)	that this Guaranty shall not be impaired by any modification, supplement, extension, renewal or
amendment of any contract or agreement to which the parties thereto may hereafter agree, nor by any modification, increase, release
or other alteration of any of the obligations hereby guaranteed or of any security therefor, nor by any agreements or arrangements
whatsoever with any of the Borrowers or anyone else, all of which may be done without notice to or consent by the Guarantor;

 

		(3)	that the liability of the Guarantor hereunder is direct and unconditional and due immediately upon
default of any of the Borrowers without demand or notice and without requiring the Bank first to resort to any other right, remedy
or security;

 

		(4)	that Guarantor shall have no right of subrogation, reimbursement or indemnity whatsoever until
the Bank is indefeasibly paid in full, nor any right of recourse to security for the debts and obligations of any of the Borrowers
to the Bank;

 

		(5)	that the liability of the Guarantor is unlimited and shall be joint and several with the liabilities
of any other guarantors;

 

    	 

    	 

    

 

		(6)	that if any of the Borrowers or the Guarantor or any other guarantor should at any time become
insolvent or make a general assignment, or if a petition in bankruptcy or any insolvency or reorganization proceedings shall be
filed or commenced by, against or in respect of any of the Borrowers or the Guarantor, or any other guarantor of the obligations
guaranteed hereby, any and all obligations of the Guarantor shall be immediately due and payable without notice;

 

		(7)	that the Bank’s books and records showing the account between the Bank and any of the Borrowers
shall be admissible in any action or proceeding, shall be binding upon the Guarantor for the purpose of establishing the items
therein set forth and shall constitute conclusive proof thereof;

 

		(8)	that this Guaranty is, as to the Guarantor, a continuing Guaranty that shall remain effective under
successive transactions until the obligations guaranteed hereby are irrevocably paid in full;

 

		(9)	that the death of Guarantor shall not effect the termination of this Guaranty as to Guarantor providing,
that in any event within Sixty (60) days after the death of the Guarantor, any Borrower or any surviving guarantor shall provide
to the Bank evidence that the estate of the Guarantor confirms its obligations to the Bank under this Guaranty;

 

		(10)	that termination, release or limitation of any guaranty of the obligations guaranteed hereby by
any other guarantor shall not affect the continuing liability hereunder of the Guarantor;

 

		(11)	that nothing shall discharge or satisfy the liability of the Guarantor hereunder except the full
indefeasible payment and performance of all of each Borrower’s debts and obligations to the Bank with interest and costs
of collection;

 

		(12)	that this Guaranty shall not be affected by the illegality, invalidity or unenforceability of the
obligations guaranteed, by any fraudulent, illegal or improper act by any of the Borrowers, the legal incapacity or any other defense
of any of the Borrowers, the Guarantor or any other person obligated to the Bank consequential to transactions with any of the
Borrowers nor by the invalidation, by operation of law or otherwise, of all or any part of the obligations guaranteed hereby, including
but not limited to any interest accruable on the obligations guaranteed hereby during the pendency of any bankruptcy or receivership
proceeding of any of the Borrowers;

 

		(13)	that any and all present and future debts and obligations of any of the Borrowers to Guarantor
are hereby waived and postponed in favor of and subordinated to the full indefeasible payment and performance of all present and
future debts and obligations of any of the Borrowers to the Bank;

 

		(14)	that the Guarantor hereby grants to the Bank a continuing lien and security interest in all deposits
or other sums at any time credited by or due from the Bank to the Guarantor and any property of the Guarantor at any time 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 obligations guaranteed hereby, and such deposits and other sums may be applied or set off against such
obligations 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;

 

    	2

    	 

    

 

		(15)	that if at any time payment of all or any part of the obligations guaranteed hereunder is
                                                                  rescinded or otherwise must be restored by the Bank to any of the Borrowers or to the creditors of any of the Borrowers or
                                                                  any representative of any of the Borrowers or representative of any of the Borrowers’ creditors as a voidable
                                                                  preference or fraudulent transfer or conveyance upon the insolvency, bankruptcy or reorganization of any of the Borrowers or
                                                                  the Guarantor, or to the creditors of the Guarantor or any representative of the Guarantor or representative of the creditors
                                                                  of Guarantor upon the insolvency, bankruptcy or reorganization of the Guarantor or otherwise, this Guaranty shall continue to
                                                                  be effective or be reinstated, as the case may be, as though such payments had not been made, and shall survive as an
                                                                  obligation of the Guarantor, and shall not be discharged or satisfied by said payment or payments, notwithstanding the return
                                                                  of the original of this Guaranty to the Guarantor or to any of the Borrowers, or any other apparent termination of
                                                                  Guarantor’s obligations hereunder;

 

		(16)	that any rights and remedies available to the Bank under this Guaranty are cumulative, and not
exclusive of any rights and remedies otherwise available to the Bank at law or in equity;

 

		(17)	that the Bank’s delay or omission in exercising any of the Bank’s rights and remedies
shall not constitute a waiver of these rights and remedies, nor shall the Bank’s waiver of any right or remedy operate as
a waiver of any other right or remedy available to the Bank. The Bank’s waiver of any right or remedy on any one occasion
shall not be considered a waiver of same on any subsequent occasion, nor shall this be considered to be a continuing waiver;

 

		(18)	that this Guaranty incorporates all discussions and negotiations between the Bank and the Guarantor
concerning the guaranty and indemnification provided by the undersigned hereby, and that no such discussions or negotiations shall
limit, modify, or otherwise affect the provisions hereof, there are no preconditions to the effectiveness of this Guaranty and
that no provision hereof may be altered, amended, waived, canceled or modified, except by a written instrument executed and acknowledged
by the Bank’s duly authorized officer;

 

		(19)	that this Guaranty and all documents which have been or may be hereinafter furnished by the Guarantor
to the Bank may be reproduced by the Bank by any photographic, photostatic, microfilm, xerographic or similar process, and that
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); and

 

		(20)	that the Guarantor shall deliver
                                         to the Bank and on or before April 1 in any year and upon request therefor, personal
                                         financial statements addressed to the Bank in form satisfactory to the Bank, and the
                                         Guarantor represents and warrants the accuracy of any information contained therein and
                                         that so long as this Guaranty remains in effect, Guarantor shall provide the Bank with
                                         copies of Guarantor’s filed Federal and state tax returns for the prior year within
                                         120 days after the date that Guarantor’s tax returns are required to be
                                         filed each such year or such other date approved by the Bank.

 

Guarantor waives;
notice of acceptance hereof, presentment and protest of any instrument and notice thereof, notice of default and all other notices
to which the Guarantor might otherwise be entitled; and any and all defenses, including without limitation, any and all defenses
which any of the Borrowers or any other party may have to the fullest extent permitted by law, any defense to this Guaranty based
on impairment of collateral or on suretyship defenses of every type; any right to exoneration or marshaling. To the maximum extent
permitted by law, Guarantor waives and terminates any homestead rights and/or exemptions respecting any premises under the provisions
of any applicable homestead law, Including without limitation, Utah Code 78-23-4 and hereby agrees not to file a declaration of
homestead under Utah Code 78-23-4. To the extent that it lawfully may, Guarantor hereby further agrees not to invoke any law relating
to the marshaling of collateral which might cause delay in or impede the enforcement of the Bank’s rights under this Guaranty
or otherwise respecting the guaranteed obligations, and to the extent that it lawfully may do so, the Guarantor hereby irrevocably
waives the benefits of all such laws. Except as otherwise provided by applicable law, the Bank shall have no duty as to the collection
or protection of any collateral, if any, securing the guaranteed obligations beyond the safe custody thereof.

 

    	3

    	 

    

 

Guarantor will from
time to time execute and deliver to the Bank, 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 the rights contemplated in this Guaranty (including, without
limitation, to correct clerical errors) or respecting any of the obligations guaranteed hereby or to comply with applicable statute
or law.

 

This Guaranty shall
be governed by the laws of the State of Utah without giving effect to the conflicts of laws principles thereof, shall be binding
upon the heirs, executors, administrators, successors and assigns of the Guarantor and shall inure to the benefit of the Bank’s
successors and assigns.

 

If any provision of
this Guaranty is found to be invalid, illegal or unenforceable, the validity of the remainder of the Guaranty shall not be affected.

 

Guarantor 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 Guaranty. 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. 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 Guarantor’s address shown below or as notified to the Bank and (ii) by serving
the same upon the Guarantor in any other manner otherwise permitted by law, and agrees that such service shall in every respect
be deemed effective service upon the Guarantor.

 

GUARANTOR 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 GUARANTY, THE OBLIGATIONS GUARANTEED HEREBY,
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 CAN NOT BE, OR HAS NOT BEEN WAIVED. GUARANTOR 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 and dated
February 4, 2013.

 

	Witness:	 	Guarantor:
	 	 	 
	/s/ Brett Smiley	 	/s/ Annette D Meier
	 	 	Annette D Meier, individually

 

	 	Address:	2221 North 3250 West
	 	 	Vernal, Utah
	 	 	84078

 

    	4

    	 

    

 

STATE OF UTAH

COUNTY OF Salt Lake, SS.

 

The foregoing instrument
was acknowledged before me this 4th day of February, 2013 by Annette D Meier.

 

		 	MIRANDA N. STUMPH, NOTARY PUBLIC
	 	MY COMMISSION EXPIRES: 3-18-2014
	 	MIRANDA N. STUMPH
	 	TYPE OR PRINT NAME
	 	 
	 	 

 

	Guaranty - Guarantor 2	© 2013 Medici, a division of Wolters Kluwer Financial Services

 

    	5EXHIBIT NO.: 10.45

 

OWNER'S
CONSENT TO PLEDGE

 

	 	Vernal, Utah 
	 	 
	 	June 15, 2009

 

ACF Property Management, Inc.

c/o Fortuna Asset Management,
LLC

P.O. Box 9109

Newport Beach, CA 92658

 

Gentlemen:

 

FOR
VALUE RECEIVED, and for the purpose of enabling TRONCO ENERGY CORPORATION, a Delaware corporation (hereinafter called "Debtor")
to obtain credit or other financial accommodations from you, including the renewal, extension and/or modification of existing debt
obligation(s), the undersigned hereby authorizes Debtor to hypothecate, pledge and deliver to you the property of the undersigned
described below (hereinafter called the "Collateral"). The undersigned agrees that when so hypothecated, pledged and
delivered the Collateral shall be collateral to secure all liabilities of Debtor to you, howsoever created, whether now existing
or hereafter arising, whether direct or indirect, whether absolute or contingent and whether due or to become due (such liabilities
being hereinafter called the "Indebtedness"), hereby consenting to the extension, renewal and/or modification from time
to time of such Indebtedness.

 

The
undersigned agrees that the Collateral shall be subject to disposition in accordance with the terms and conditions of Debtor's
promissory note(s)and/or Security Agreement(s) for your benefit or to you.

 

No
renewal or extension of the time of payment of the Indebtedness, no release or surrender of any security for the Indebtedness,
no release of any person or entity primarily or secondarily liable on the Indebtedness (including any maker, endorser, or guarantor),
no delay in enforcement of payment of the Indebtedness and no delay or omission in exercising any right or power with respect to
the Indebtedness or this Owner's Consent to Pledge shall in any manner impair or affect your rights hereunder. The undersigned
waives notice of the creation, existence, extension and renewal of Indebtedness.

 

Further,
this letter constitutes the appointment of TRONCO ENERGY CORPORATION as the lawful Attorney and Agent in Fact for the undersigned
to execute any and all documents necessary to effect the pledge of the Collateral as hereinbelow described to you, either in its
own name as Debtor or in the name of the undersigned, for all purposes.

 

COLLATERAL:

 

Five
percent (5%) of Member’s Interest in and to SUPERIOR DRILLING PRODUCTS, LLC, a Utah limited liability company, in the name
of MEIER MANAGEMENT COMPANY, LLC.

 

	 	MEIER MANAGEMENT COMPANY, LLC
	 	 
	 	/s/ Annette D. Meier
	 	Annette D. Meier, Manager

 

    	 

    	 

    

 

OWNER'S
CONSENT TO PLEDGE

 

	 	Vernal, Utah 
	 	 
	 	June 15, 2009

 

ACF Property
Management, Inc.

c/o Fortuna
Asset Management, LLC

P.O. Box 9109

Newport Beach,
CA 92658

 

Gentlemen:

 

FOR
VALUE RECEIVED, and for the purpose of enabling TRONCO ENERGY CORPORATION, a Delaware corporation (hereinafter called "Debtor")
to obtain credit or other financial accommodations from you, including the renewal, extension and/or modification of existing debt
obligation(s), the undersigned hereby authorizes Debtor to hypothecate, pledge and deliver to you the property of the undersigned
described below (hereinafter called the "Collateral"). The undersigned agrees that when so hypothecated, pledged and
delivered the Collateral shall be collateral to secure all liabilities of Debtor to you, howsoever created, whether now existing
or hereafter arising, whether direct or indirect, whether absolute or contingent and whether due or to become due (such liabilities
being hereinafter called the "Indebtedness"), hereby consenting to the extension, renewal and/or modification from time
to time of such Indebtedness.

 

The
undersigned agrees that the Collateral shall be subject to disposition in accordance with the terms and conditions of Debtor's
promissory note(s)and/or Security Agreement(s) for your benefit or to you.

 

No
renewal or extension of the time of payment of the Indebtedness, no release or surrender of any security for the Indebtedness,
no release of any person or entity primarily or secondarily liable on the Indebtedness (including any maker, endorser, or guarantor),
no delay in enforcement of payment of the Indebtedness and no delay or omission in exercising any right or power with respect to
the Indebtedness or this Owner’s Consent to Pledge shall in any manner impair or affect your rights hereunder. The undersigned
waives notice of the creation, existence, extension and renewal of Indebtedness.

 

Further,
this letter constitutes the appointment of TRONCO ENERGY CORPORATION as the lawful Attorney and Agent in Fact for the undersigned
to execute any and all documents necessary to effect the pledge of the Collateral as hereinbelow described to you, either in its
own name as Debtor or in the name of the undersigned, for all purposes.

 

COLLATERAL:

 

Ninety
five percent (95%) of Member’s Interest in and to SUPERIOR DRILLING PRODUCTS, LLC, a Utah limited liability company,
in the name of MEIER FAMILY HOLDING COMPANY, LLC.

 

	 	MEIER FAMILY HOLDING COMPANY, LLC
	 	 
	 	/s/ Annette D. Meier
	 	Annette D. Meier, Manager

 

    	 

    	 

    

  

SECURITY
AGREEMENT—PLEDGE

 

	TRONCO ENERGY CORPORATION,	 	1583 South 1700 East
	(NAME)	 	(NO. AND STREET)

 

	Vernal	Uintah	Utah	84078,	hereinafter called “Debtor(s),”
	and	 	 	 
	(CITY)	(COUNTY)	(STATE)	(ZIP CODE)	

 

	ACF PROPERTY
    MANAGEMENT, INC.,	C/O 1300 BRISTOL AVENUE
	(NAME)	(NO. AND STREET)

 

	NEWPORT BEACH	ORANGE	CALIFORNIA	92658,	 hereinafter called “Secured
	Party,”	 	 	 
	(CITY)	(COUNTY)	(STATE)	(ZIP CODE)	

 

and from whom information concerning this security interest
may be obtained at the address shown above, agree as follows:

 

Debtor(s) hereby grant(s) to Secured Party
a security interest in the Collateral described in this Security Agreement to secure performance and payment of all obligations
and indebtedness of Debtor(s) to Secured Party of whatever kind and whenever created and incurred (or if specified herein, the
following, to wit:)

 

$9,284,378,34 Amended and Restated Promissory Note dated June
15, 2009 (“Note”) from TRONCO ENERGY CORPORATION as Maker to ACF PROPERTY MANAGEMENT, INC. as Payee (as Assignee from
FORTUNA ASSET MANAGEMENT, LLC), and all renewals, extensions and modifications thereof, pursuant to that, certain LOAN AGREEMENT
(“Loan Agreement”) dated August 10, 2007, as amended, by and between TRONCO ENERGY CORPORATION as “Borrower”,
PHILCO EXPLORATION, LLC as “Philco” and FORTUNA ASSET MANAGEMENT, LLC as “Lender”.

 

The Collateral of this Security Agreement
is Member’s Interest(s) in a limited liability company (uncertificated security) of the following description:

 

The ninety-five percent (95%) of the Member’s Interest
in the name of MEIER FAMILY HOLDING COMPANY, LLC (“Owner”) in SUPERIOR DRILLING PRODUCTS, LLC a Utah limited liability
company, now owned or hereinafter acquired;

 

deposited with Secured Party contemporaneously with the execution
of this Security Agreement (if applicable), and all other property previously, presently or in the future deposited with Secured
Party (if applicable). Collateral includes, without limitation, all money and property this day delivered to and deposited with
Secured Party (if applicable), and all money and property heretofore delivered or which shall hereafter be delivered to or come
into the possession, custody, or control of Secured Party (if applicable) in any manner or for any purpose, whatever during the
existence of this Security Agreement, and whether held in a general or special account, or deposited for safekeeping or otherwise,
together with any stock rights, member’s interest(s) acquisition rights, rights to subscribe, preemptive rights, liquidating
dividends, stock dividends (if applicable), dividends paid in stock (if applicable), new securities, or other property which Debtor(s)
and/or Owner may hereafter become entitled to receive on account of such securities or other property, and in the event Debtor(s)
and/or Owner receive(s) any such property, Debtor(s) and/or Owner, as the case may be, will immediately deliver same to Secured
Party to be held by Secured Party in the same manner as the property originally deposited as Collateral (if applicable). The Collateral
of this Security Agreement also includes the proceeds of any and all property described above.

 

Debtor(s) shall pay to the Secured Party
any sum or sums due or which may become due pursuant to the Note any other promissory note or notes now or hereafter executed by
Debtor(s) to evidence Debtor’s(s’) indebtedness to Secured Party, in accordance with the terms of the Note or any other promissory
note or notes and the terms of this Security Agreement. Debtor(s) shall pay to Secured Party on demand all expenses and expenditures,
including reasonable attorneys’s fees and other legal expenses incurred or paid by Secured Party in exercising or protecting its
interests, rights, and remedies under this Security Agreement, plus interest thereon at the rate of twenty-three percent (23%)
per annum. Debtor(s) shall pay immediately, without notice, the entire unpaid indebtedness of Debtor(s) to Secured Party, whether
created or incurred pursuant to this Security Agreement or otherwise, upon Debtor’s(s’) default under this Security Agreement.

 

Debtor(s) represent(s), warrant(s), and
agree(s) that:

 

(1)All financial or credit statements
and Collateral deposited with or relied upon by Secured Party prior to, contemporaneously with, or subsequent to execution of this
Security Agreement are or will be true, correct, complete, valid, and genuine in all material respects.

 

(2)All investment securities, including
uncertificated securities, instruments, chattel paper, and any like property delivered to Secured Party as Collateral: (a) are
genuine, free from adverse claims, or other security interests, default, prepayment, or defenses; (b) all persons appearing to
be obligated thereon have authority and capacity to contract and are

 

    	 

    	 

    

  

(6)Secured Party shall not be responsible
in any way for any depreciation in the value of the Collateral, nor shall any duty or responsibility whatsoever rest upon Secured
Party to take necessary steps to preserve rights against prior parties or to enforce collection of the Collateral by legal proceedings
or otherwise, the sole duty of the Secured Party, its successors, and assigns, being to receive collections, remittances, and payments
on such Collateral as, if and when made and received by Secured Party, and at Secured Party’s option, applying the amount or amounts
so received, after deduction of any collection costs incurred, as payment upon any indebtedness of Debtor(s) to Secured Party pursuant
to the provisions of this Security Agreement, or holding the same for the account and order of Debtor(s).

 

(7)Debtor(s)
and/or Owner shall pay prior to delinquency all taxes, charges, liens, and assessments against the Collateral, unless Debtor(s)
and/or Owner has a bonafide good faith dispute with respect thereto, and contests same in good faith in accordance with applicable
law, and upon Debtor’s(s’) and/or Owner’s failure to do so, Secured Party at its option may pay any of
them and shall be the sole judge of the legality or validity thereof and the amount necessary to discharge the same. Such payment
shall become part of the indebtedness secured by this Security Agreement and shall be paid to Secured Party by Debtor(s) immediately
and without demand, with interest thereon at the rate of eighteen percent (18%) per annum.

 

Debtor(s) shall be in default under this
Security Agreement upon the happening of any of the following events or conditions (herein called an “Event of Default”):

 

(1)Debtor’s(s’) failure to pay when
due any indebtedness secured by this Security Agreement, either principal or interest, after expiration of any applicable notice
and opportunity to cure as provided in the said Loan Agreement: or

 

(2)Default by Debtor(s) in the punctual
performance of any of the obligations, covenants, terms, or provisions contained or referred to in this Security Agreement or in
the Note or any other promissory note secured hereby; after the expiration of any applicable notice and opportunity to cure as
provided in the said Loan Agreement; or

 

(3)Any warranty, representation, or
statement contained in this Security Agreement or made or furnished to Secured Party by or on behalf of Debtor(s) in connection
with this Security Agreement or to induce Secured Party to make, extend, renew and/or modify a loan to Debtor(s) prove(s) to have
been false in any respect when made or furnished; or

 

(4)The making of any levy on or seizure
or attachment of any of the Collateral; or

 

(5)Debtor’s(s’) death, dissolution,
termination of existence, insolvency, or business failure; the appointment of a receiver of all or any part of the property of
Debtor(s); an assignment for the benefit of creditors by Debtor(s); commencement of any proceeding under any bankruptcy or insolvency
laws by or against Debtor(s) or any guarantor, surety, or endorser for Debtor(s); or

 

(6)Any statement of the financial condition
of Debtor(s) or of any guarantor, surety, or endorser of any liability of Debtor(s) to Secured Party submitted to Secured Party
by Debtor(s) or by any such guarantor, surety, or endorser proves to be false; or

 

(7)Any guarantor, surety, or endorser
for Debtor(s) defaults in any obligation or liability to Secured Party,

 

This Security Agreement, Secured Party’s
rights hereunder, or the indebtedness hereby secured may be assigned from time to time, and in any such case,the Assignee
shall be entitled to all of the rights, privileges, and remedies granted in this Security Agreement to Secured Party, and Debtor(s)will
assert no claims or defenses it may have against the Secured Party under this Security Agreement against the Assignee except those
granted in this Security Agreement. Secured Party may at any time transfer the Collateral to itself or its nominee as Pledgee,
and upon the occurrence of an Event of Default, receive income, including money, thereon and hold the income as Collateral or apply
the income to any of Debtor’s(s’) indebtedness to Secured Party, the manner and distribution of the application to be in the sole
discretion of Secured Party. Upon the occurrence of an Event of Default, Secured Party may at any time demand, sue for, collect
or make any compromise or settlement with reference to the Collateral as Secured Party, in its sole discretion, chooses. Secured
Party may delay exercising or omit to exercise any right or remedy under this Security Agreement without waiving that or any other
past, present, of future right or remedy, except in writing signed by Secured Party.

 

Upon the occurrence of an Event of Default,
of if Secured Party deems payment of Debtor’s(s’) obligations to Secured Party to be insecure, and at any time thereafter:

 

(1)Secured Party may declare all obligations
secured hereby immediately due and payable;

 

(2)Secured Party shall have, then or
at any time thereafter, the rights and remedies provided in the Uniform Commercial Code in force in the State of Utah at the date
of execution of this Security Agreement; and

   

(3)In addition to the rights and remedies
referred to above, Secured Party may in its discretion, sell, assign, and deliver all or any part of the Collateral at any Broker’s
Board or at public or private sale without notice or advertisement and bid and become purchaser at any public sale or at any Broker’s
Board. If notice to Debtor(s) is/are required by the Uniform Commercial Code of Utah of public or private sale of Collateral, Secured
Party may give written notice to Debtor(s) five (5) days prior to the date of public sale of the Collateral or prior to the date
after which private sale of the Collateral will be made, by mailing such notice to Debtor(s) at the address designated at the beginning
of this Security

 

    	 

    	 

    

 

members as the case may be, and then and there to vote in its name, stead, and behalf any and all shares
of the capital stock and/or Member(s) Interest, now or which may, so long as this Security Agreement is in effect, be owned and
held by it or stand in its name on the books of said corporation and/or company including any and all additional shares of stock,
and/or Member(s) Interest which may hereafter be created by reason of stock dividends, split ups, reorganization, mergers, or recapitalization,
and in and to which the said Secured Party shall have a security interest at all such meetings of the shareholders and/or members,
as the case may be, whether regular or special, as fully and with like effect as it could if personally present and voting at said
shareholders’ meetings and/or members meetings, as the case may be, and to make, execute, and enter into, in its stead and
behalf as a shareholder in such corporation and/or member in such company, as the case may be, any and all consents, certificates,
or other documents, including but not limited to any such consent, certificate, or other document relating to merger with other
corporations, companies, re-organizations or other change in the corporate structure; this proxy is coupled with an interest in
that the shares of stock and/or Member(s) Interest, as the case may be, subject hereto are now subject to a security interest in
favor of the Secured Party to secure the indebtedness of the Debtor(s) to the Secured Party, as set forth in this Security Agreement.
The proxy here granted shall be and remain exclusive and irrevocable so long as the undersigned Debtor(s) remains indebted to the
Secured Party under this Security Agreement and shall be binding upon the undersigned Debtor(s) and the Owner, their respective
heirs, executors, administrators, and assigns, as the case may be. Secured Party shall have full power of substitution hereunder,
and any party designated by Secured Party as its substitute shall be entitled to exercise all powers herein granted with respect
to any and all shares of stock and/or Member(s) Interest, as the case may be, mentioned or referred to in the Security Agreement

 

EXECUTED this 15 of June, 2009.

 

	SECURED PARTY:	 	DEBTOR:
	 	 	 
	ACP PROPERTY MANAGEMENT INC.	 	TRONCO ENERGY CORPORATION
	 	 	 
	BY:	/s/ ALAN C. FOX	 	BY:	/s/ G. TROY MEIER
	 	ALAN C. FOX, President	 	 	G. TROY MEIER, President

 

The undersigned on behalf of SUPERIOR DRILLING PRODUCTS, LLC
hereby acknowledges the pledge of the Member(s) Interest (“Pledge”) as described above in the name of MEIER FAMILY
HOLDING COMPANY, LLC, and shall record on the books and records of SUPERIOR DRILLING PRODUCTS, LLC such Pledge, and shall not allow
the transfer of such Member(s) Interest from the name of MEIER FAMILY HOLDING COMPANY, LLC to any other person, party or entity
without the prior written consent and agreement of the Secured Party, until such time as the Secured Party has delivered its written
release of the Pledge of such Member(s) Interest to SUPERIOR DRILLING PRODUCTS, LLC.

 

	 	SUPERIOR DRILLING PRODUCTS, LLC
	 	 
	 	BY:	/s/ Annette D. Meier
	 	 	Annette D. Meier, Manager

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