Document:

EXHIBIT NO.: 10.49 

To Form S-1 Registration Statement

 

LOAN PURCHASE AGREEMENT

 

This LOAN PURCHASE
AGREEMENT (“Agreement”), is entered into effective as of January __, 2014, (“Effective Date”),
among ACF Property Management, Inc., a California corporation (“Lender”), SD Company, Inc., a Utah corporation
(“Buyer”), and Tronco Energy Corporation, a Delaware corporation (“Borrower”).

 

BACKGROUND

 

A.           Lender
is the holder of a Second Amended and Restated Promissory Note (the “Note”) payable by Borrower, dated effective
January 1, 2014 in the principal amount of $6,888,092.28 (the “Note”) being in renewal, extension and modification
of that certain Amended and Restated Note in the principal amount of $9,284,378.34 dated June 15, 2009 (the “Loan”).
All amounts due under the Loan, pursuant to the terms of that certain Loan Agreement dated August 10, 2007, as amended by that
certain First Amendment to Loan Agreement dated December 10, 2007, that certain Second Amendment to Loan Agreement dated June 15,
2009 and that certain Third Amendment to Loan Agreement dated effective as of January 1, 2014 (collectively, the “Loan
Agreement”) are secured by the collateral described in the following documents (collectively, the “Collateral
Documents”):

 

		·	Guaranty dated August 10, 2007 from G. Troy Meier in favor of Lender (the “2007 Guaranty”);

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
(Multi-State Oil and Gas Interests dated August 10, 2007 made by Borrower and Philco Exploration, LLC (“Philco”)
in favor of Lender recorded on August 23, 2007 in Uintah County, Utah, Entry Number 2007009552 (the “9552 Deed of Trust”);

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
(Multi-State Oil and Gas Interests (UCC/Chattel Mortgage) dated August 10, 2007 made by Borrower and Philco in favor of Lender,
first recorded on August 23, 2007 in Uintah County, Utah, Entry Number 2007009552 and second recorded on August 30, 2007 in Uintah
County, Utah, Entry Number 2007009845 (the “9845 Deed of Trust”);

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
(Multi-State Oil and Gas Interests) – County of Muskingum – Muskingum County Recorder File No. 200700018268 recorded
on December 14, 2007 (the “8268 Deed of Trust”).

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
(Multi-State Oil and Gas Interests) – County of Ashtabula – Ashtabula County Recorder File No. 200700016657 recorded
on December 12, 2007 (the “6657 Deed of Trust”).

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
(Multi-State Oil and Gas Interests) – County of Stark – Stark County Recorder File No. 200712130064969 recorded on
December 13, 2007 (the “4969 Deed of Trust”) .

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
(Multi-State Oil and Gas Interests) – County of Portage – Portage County Recorder File No. 200726836 recorded on December
13, 2007 (the “6836 Deed of Trust”).

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
(Multi-State Oil and Gas Interests) – County of Licking – Licking County Recorder File No. 200806040012968 recorded
on June 4, 2008 (the “2968 Deed of Trust”).

 

    	 

    	 

    

 

		·	Deed of Trust and Security Agreement dated August 10, 2007 made by Meier Family Limited Partnership
in favor of Lender recorded on August 23, 2007 in Uintah County, Utah, Entry Number 2007009529 (“9529 Deed of Trust”);

 

		·	Security Agreement/Pledge Agreement-Deposit Account dated August 10, 2007 made by Borrower in favor
of Lender (“Key Bank Security Agreement”);

 

		·	Deposit Account Control Agreement dated August 10, 2007 among Keybank National Association, Borrower
and Lender (“DACA”);

 

		·	Security Agreement-Pledge between Borrower and Lender dated June 15, 2009 covering five percent
(5%) of the membership interests of Superior Drilling Products, LLC held in the name of Meier Management Company, LLC (the “MMC-Drilling
Products Pledge Agreement”);

 

		·	Security Agreement-Pledge between Borrower and Lender dated June 15, 2009 covering ninety five
percent (95%) of the membership interests of Superior Drilling Products, LLC held in the name of Meier Family Holdings, LLC (the
“MFH-Drilling Products Pledge Agreement”);

 

		·	Guaranty from G. Troy Meier, Annette Deuel Meier, Glbert Troy Meier Trust, Annette Deuel Meier
Trust, Meier Management Company, LLC and Superior Drilling Products, LLC in favor of Lender dated June 15, 2009 (the “2009
Guaranty”);

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
dated June 15, 2009 recorded on October 9, 2009 in Licking County, Licking County Recorder File No. 20091019002268 (the “2268
Deed of Trust”);

 

		·	Master Deed of Trust, Mortgage, Assignment of Production, Security Agreement and Financing Statement
dated June 15, 2009 recorded on July 29, 2010 in Muskingum County, Muskingum County Recorder File No. 201000007878 (the “7878
Deed of Trust”);

 

		·	Security Agreement-Pledge between Borrower and Lender dated January 1, 2014 covering one hundred
percent (100%) of the membership interests of Superior Design & Fabrication, LLC held in the name of Meier Management Company,
LLC (the “MMC-Design Pledge Agreement”); and

 

		·	Guaranty from Superior Drilling Products, LLC and Superior Design & Fabrication, LLC in favor
of Lender dated effective as of January 1, 2014 (“2014 Guaranty”).

 

The Note, the Loan Agreement, the
Collateral Documents, and any other documents signed in connection with the Loan are collectively referred to as the “Loan
Documents”.

 

B.            Capitalized
terms used herein and not otherwise defined shall have the meanings set forth in the Loan Agreement.

 

AGREEMENT

 

1.            Purchase
and Agreement. Subject to the provisions of Section 16, in exchange for the Purchase Price stated in Section 2, Lender hereby
agrees to sell, endorse, transfer, convey, assign, and deliver to Buyer, and Buyer hereby agrees to purchase from Lender, all of
Lender’s right, title and interest in (a) the Note and other Loan Documents, and (b) all amounts which are due under the
Loan Documents on and after the Closing Date.

 

    	 	2

    	 

    

 

2.            Purchase
Price; Closing.

 

2.1.          Purchase
Price. The Purchase Price of the Note and other Loan Documents shall be the sum of (a) the Indebtedness, plus (b) the ACF Redemption
Obligations, plus (c) all of Lender’s reasonable out-of-pocket costs (including reasonable attorneys’ fees) incurred
in connection with this Agreement and in closing Buyer’s purchase of the Loan. Buyer will pay the Purchase Price to Lender
by wire transfer, cashier’s check, or other immediately available funds.

 

2.2.          Closing.
Contemporaneously upon payment by Buyer to Lender of the Purchase Price (the “Closing Date”), Lender shall deliver
to Buyer the following documents:

 

(a)          Each
of the original Loan Documents;

 

(b)          The
original Endorsement of Promissory Note attached to this Agreement as Exhibit A;

 

(c)          The
original Assignments in the forms attached as Exhibit B (together, the “Assignments”) of 9552 Deed of
Trust, 9845 Deed of Trust, 8268 Deed of Trust, 6657 Deed of Trust, 4969 Deed of Trust, 6836 Deed of Trust, 2968 Deed of Trust,
9529 Deed of Trust, 2268 Deed of Trust and the 7878 Deed of Trust (collectively, the “Deeds of Trust”) under
which Lender assigns all of its right, title and interest in the Deeds of Trust to the Buyer, and agrees that Buyer is solely responsible
for recording the Assignments with the applicable county recorder’s office; and

 

(d)          Such
other assignment documents as may Buyer may reasonably request to transfer title to the Loan Documents from Lender to Buyer and
which are usual and customary for like kind transactions.

 

3.            Loan
Payments. Subject to Borrower’s right to prepay the amounts outstanding under the Loan, between the Effective Date and
the Closing Date, Borrower shall continue to pay Lender any and all amounts due under the Loan Documents in accordance with their
terms. Lender expressly authorizes and directs Borrower to pay Buyer all amounts due under the Loan Documents on and after the
Closing Date. Lender agrees to promptly deliver to Buyer any payments which Lender receives from Borrower under the Loan Documents
on and after the Closing Date.

 

4.            Acknowledgements;
Waivers. Buyer acknowledges that Borrower is current on its payments due to Lender under the Loan and is otherwise not in default
under the Loan Documents. However, whether or not Buyer was aware of the occurrence, or the pending or threatened occurrence, of
any of the following events, Buyer waives any Claims (as defined in Section 7 below) against Lender arising out of or in connection
with: (a) any default by Borrower under the Loan Documents, (b) Lender’s waiver of, or failure to exercise any, actions or
remedies available to Lender under the Loan Documents, (c) any bankruptcy filing by Borrower before or after the date of this Agreement,
or (d) Lender’s origination, servicing, foreclosure, or other action relating to the Loan Documents or the Collateral.

 

    	 	3

    	 

    

 

5.            Organization;
Authority of Buyer. Buyer certifies the accuracy of all of the following statements:

 

5.1.          Buyer
was formed under the laws of, and is in good standing in, the State of Utah.

 

5.2.          Buyer’s
governing body has duly authorized (a) Buyer to enter into this Agreement, and (b) the individual signing on Buyer’s behalf
to do so.

 

5.3.          Entering
into this Agreement does not violate any law, agreement or other obligation by which Buyer is bound.

 

6.            Organization;
Authority of Lender.

 

6.1.          Lender
was formed under the laws of, and is in good standing in, the State of California.

 

6.2.          Lender’s
governing body has duly authorized (a) Lender to enter into this Agreement, and (b) the individual signing on Lender’s behalf
to do so.

 

6.3.          Entering
into this Agreement does not violate any law, agreement or other obligation by which Lender is bound.

 

6.4.          Lender
is not currently in default, nor will it take any action that would constitute a default under this Agreement or the Loan Documents.

 

6.5.          Lender
is the sole owner of the Loan free and clear of all liens and encumbrances.

 

7.            Indemnification.
Buyer agrees to indemnify, defend and hold Lender harmless from any claims or demands asserted against Lender and from any liability,
loss or damage which Lender incurs (“Claims”) (a) under the Loan Documents, (b) because of this Agreement, or
(c) because of alleged obligations or undertakings on Lender’s part to perform or discharge any of Borrower’s, or any
other person’s, obligations under the Loan Documents. Buyer will reimburse Lender for all costs and reasonable attorney fees
incurred in relation to such Claims, including any costs and fees as may be incurred on appeal or in a bankruptcy proceeding. Notwithstanding
anything contained in this Section 7 to the contrary, Buyer shall not indemnify Lender for any Claims which are due in whole or
in part to Lender’s gross negligence, willful misconduct or breach of this Agreement or the Loan Documents.

 

8.            Limitations.
Buyer acknowledges and agrees that Lender is assigning the Loan Documents to Buyer WITHOUT RECOURSE AND WITHOUT ANY WARRANTY
OF ANY KIND, EITHER EXPRESSED OR IMPLIED, including, but not limited to, any warranty or representation regarding the
condition of the Collateral, the state of the title to the Collateral, or any claims by third parties against the Collateral. 

 

9.            Taxes;
Liens. Buyer acknowledges that there are taxes or other outstanding liens against on the real property secured by the Deed
of Trust which are due or may become due, and that those amounts will not be paid by Lender and will be Buyer’s sole responsibility.

 

    	 	4

    	 

    

 

10.          Other
Documents. Each party agrees to sign any other documents, and take any further actions, as the other party reasonably requests
in the future, to give effect to this Agreement.

 

11.          Time;
Currency.  Time is of the essence of each and every term, covenant and condition of this Agreement. All sums referred
to in this Agreement are calculated by and payable in the lawful currency of the United States.

 

12.          Governing
Law; Attorney Fees.  This Agreement will be construed and enforced according to the laws of the State of Utah. Buyer
will reimburse Lender for all of Lender’s court costs and reasonable attorney fees incurred in any arbitration or litigation
concerning this Agreement, including any costs and fees as may be incurred on appeal or in a bankruptcy proceeding.

 

13.          General.
All of the Exhibits to this Agreement are expressly incorporated into, and deemed part of the definition of, this Agreement. The
terms of this Agreement have been mutually negotiated and will not be construed against any party. Buyer expressly acknowledges
that it had a reasonable opportunity to seek the advice of legal counsel with respect to this Agreement. If any portion
of this Agreement is held to be invalid by a court having jurisdiction, the remaining terms of this Agreement will remain in full
force and effect to the extent possible. This Agreement constitutes the entire agreement of the parties, and supersedes all previous
agreements, written or oral, with regard to the subject matter of this Agreement. This Agreement may be executed in two or more
counterparts, all of which will constitute one and the same instrument.

 

14.          No
Oral Agreements. No oral agreement to waive or modify any term of this Agreement will be effective. Any such waiver or modification
must be in writing signed by all parties.

 

ORAL AGREEMENTS OR ORAL COMMITMENTS
TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER UTAH LAW.

 

15.          Consent
of Guarantors. By their execution hereof, the Guarantors hereby consent to the purchase and sale of the Loan on the terms set
forth herein.

 

16.          Effectiveness
of Agreement. If, (i) Borrower repays the Loan in full on or prior to June 30, 2014 (the “Termination Date”),
or (ii) closing of the transactions contemplated herein has not occurred on or before the Termination Date, this Agreement shall
expire and be of no further force or effect.

 

SIGNATURE PAGE FOLLOWS

 

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Executed by the parties hereto as of the first date written
above.

 

	LENDER:	 	BUYER:
	 	 	 
	ACF PROPERTY MANAGEMENT, INC.	 	SD COMPANY, INC.
	 	 	 	 	 
	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 
	 	 	 	 	 
	 	 	 	BORROWER:
	 	 	 	 	 
	 	 	 	TRONCO ENERGY CORPORATION
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	 	 	 	GUARANTORS:
	 	 	 	 	 
	 	 	 	SUPERIOR DRILLING PRODUCTS, LLC
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	 	 	 	/s/ Troy Meier
	 	 	 	G. TROY MEIER
	 	 	 	 	 
	 	 	 	/s/ Annette Meier
	 	 	 	ANNETTE DEUEL MEIER
	 	 	 	 	 
	 	 	 	GILBERT TROY MEIER TRUST
	 	 	 	 	 
	 	 	 	By:	/s/ Troy Meier
	 	 	 	 	Gilbert Troy Meier, Trustee
	 	 	 	 	 
	 	 	 	ANNETTE DEUEL MEIER TRUST
	 	 	 	 	 
	 	 	 	By:	/s/ Annette Meier
	 	 	 	 	Annette Deuel Meier, Trustee

 

    	 	6

    	 

    

 

	 	 	 	MEIER MANAGEMENT COMPANY, LLC
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	 	 	 	SUPERIOR DESIGN & FABRICATION, LLC
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

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EXHIBIT A

 

ENDORSEMENT OF PROMISSORY NOTE

 

(Attached to Original Note)

 

KNOW ALL MEN BY THESE PRESENTS:

 

That for value received, ACF PROPERTY MANAGEMENT,
INC., (‘Lender”), and as the current holder, has all right, title and interest in and to that certain Second
Amended and Restated Promissory Note (the “Note”) dated effective January 1, 2014, made and executed by TRONCO
ENERGY CORPORATION as Borrower to the Lender, in the original principal sum of SIX MILLION EIGHT HUNDRED EIGHTY EIGHT THOUSAND
NINETY TWO AND 28/100 DOLLARS ($6,888,092.28), and does hereby assign and transfer over to SD COMPANY, INC. all of Lender’s
right, title and interest in and to the Note, without recourse or warranty, either expressed or implied, as to Lender, its successors
and assigns.

 

	DATED:	 	, 2014	 	 	 
	 	 	 	 	 	 
	 	 	 	 	ACF PROPERTY MANAGEMENT, INC.
	 	 	 	 	 	 
	 	 	 	 	By: 	 
	 	 	 	 	Name: 	 
	 	 	 	 	Title: 	 

 

    	 	8

    	 

    

 

EXHIBIT B

 

ASSIGNMENT OF DEEDS OF TRUST

 

(See Attached)

 

    	 	9Exhibit 10.1

 

DIRECTOR AND
OFFICER INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION
AGREEMENT (the “Agreement”) is made and entered into as of                     ,
 2014  between SD Company, Inc., a Utah corporation (the “Company”), and                     
(“Indemnitee”).

 

WITNESSETH THAT:

 

WHEREAS,
highly competent persons have become more reluctant to serve corporations as directors or in other capacities unless they are provided
with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them
arising out of their service to and activities on behalf of the corporation;

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals,
the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the
Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread
practice among United States-based corporations and other business enterprises, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At
the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly
subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been
brought only against the Company or business enterprise itself. Indemnitee may also be entitled to indemnification pursuant to
the Utah Revised Business Corporation Act (“URBCA”). The Bylaws and the URBCA expressly provide that the indemnification
provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company
and members of the board of directors, officers and other persons with respect to indemnification;

 

WHEREAS,
the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such
persons;

 

WHEREAS,
the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests
of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty
of such protection in the future;

 

WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses
on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so indemnified;

 

WHEREAS,
this Agreement is a supplement to and in furtherance of the Bylaws of the Company and any resolutions adopted pursuant thereto,
and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

 

WHEREAS,
Indemnitee does not regard the protection available under the Company’s Bylaws and insurance as adequate in the present circumstances,
and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve
in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company
on the condition that he be so indemnified; and

 

    	Page 1 of 13

    	 

    

 

NOW,
THEREFORE, in consideration of Indemnitee’s agreement to serve as an officer or director after the date hereof, the parties
hereto agree as follows:

 

1. Indemnity
of Indemnitee.

 

The
Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by law, as such may be amended
from time to time. In furtherance of the foregoing indemnification, and without limiting the generality thereof:

 

(a) Proceedings
Other Than Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided
in this Section l(a) if, by reason of his Corporate Status (as hereinafter defined), the Indemnitee is, or is threatened to be
made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or in the right of the Company.
Pursuant to this Section 1(a), Indemnitee shall be indemnified against all Expenses (as hereinafter defined), judgments, penalties,
fines, and amounts paid in settlement, actually and reasonably incurred by him or on his behalf, in connection with such Proceeding
or any claim, issue or matter therein, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed
to be in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause
to believe the Indemnitee’s conduct was unlawful.

 

(b) Proceedings
by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 1(b) if,
by reason of his Corporate Status, the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding
brought by or in the right of the Company. Pursuant to this Section 1(b), Indemnitee shall be indemnified against
all Expenses actually and reasonably incurred by the Indemnitee or on the Indemnitee’s behalf, in connection with such Proceeding
if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company; provided, however, if applicable law so provides, no indemnification against such Expenses shall be made in respect
of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company unless
and to the extent that the Courts of the State of Utah shall determine that such indemnification may be made.

 

(c) Indemnification
for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding,
he shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses
actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such
Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf
in connection with each successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

 

(d) Partial
Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for
some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee
for the portion thereof to which Indemnitee is entitled.

 

    	Page 2 of 13

    	 

    

 

2. Additional
Indemnity.

 

In
addition to, and without regard to any limitations on, the indemnification provided for in Section 1 of this Agreement, the
Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts
paid in settlement actually and reasonably incurred by him or on his behalf if, by reason of his Corporate Status, he is, or is
threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company),
including, without limitation, all liability arising out of the negligence or active or passive wrongdoing of Indemnitee. The only
limitation that shall exist upon the Company’s obligations pursuant to this Agreement shall be that the Company shall not
be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions,
set forth in Sections 6 and 7 hereof) to be unlawful.

 

3. Contribution.
If the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever in connection with
a Proceeding in which Indemnitee is or was a party by reason of his Corporate Status and in which the Company is jointly liable
with Indemnitee (or would be if joined in such Proceeding), then to the fullest extent permissible under applicable law and public
policy, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments,
fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in such proportion as is deemed fair
and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received
by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the
relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s)
and/or transaction(s).

 

4. Indemnification
for Expenses of a Witness.

 

Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding
to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on
his behalf in connection therewith.

 

5. Advancement
of Expenses. Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses incurred by
or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee’s Corporate Status within thirty (30) days
after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to
time prior to final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred
by Indemnitee and shall include or be preceded or accompanied by an undertaking by or on behalf of Indemnitee to repay any Expenses
advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. If, when
and to the extent that it is so determined that Indemnitee would not be permitted to be so indemnified under applicable law, the
Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts theretofore
paid. Any advances and undertakings to repay pursuant to this Section 5 shall be unsecured and interest free.

 

6. Procedures
and Presumptions for Determination of Entitlement to Indemnification.

 

It
is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the
Utah General Corporation Law and public policy of the State of Utah. Accordingly, the parties agree that the following procedures
and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement:

 

    	Page 3 of 13

    	 

    

 

(a)
To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or
therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt
of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

 

(b)
Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof,
a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific
case by one of the following four methods (which shall be at the election of the board if there has not been a Change of Control,
and which shall be at the election of the Indemnitee if there has been a Change of Control: (1) by a majority vote of the
Disinterested Directors, even though less than a quorum, (2) by a committee of Disinterested Directors designated by a majority
vote of the Disinterested Directors, even though less than a quorum, (3) if there are no Disinterested Directors or if the
Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall
be delivered to the Indemnitee, or (4) if so directed by the Board of Directors, by the stockholders of the Company.

 

(c)
If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) hereof,
the Independent Counsel shall be selected as provided in this Section 6(c). The Independent Counsel shall be selected
by the Board of Directors if there has not been a Change of Control. The Independent Counsel shall be selected by the Indemnitee
if there has been a Change of Control. In either case, the non-selecting party may, within 10 days after such written notice of
selection shall have been given, deliver to the Company or Indemnitee, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet
the requirements of “Independent Counsel” as defined in Section 13 of this Agreement, and the
objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person
so selected shall act as Independent Counsel. If a written objection is made and substantiated, the Independent Counsel selected
may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection
is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof,
no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Court of
Chancery of the State of Utah or other court of competent jurisdiction for resolution of any objection which shall have been made
by the Indemnitee to the Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of
a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections
are so resolved or the person so appointed shall act as Independent Counsel under Section 6(b) hereof. The
Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection
with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable fees and expenses incident
to the procedures of this Section 6(c), regardless of the manner in which such Independent Counsel was selected
or appointed.

 

(d)
In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such
determination shall presume that Indemnitee is entitled to indemnification under this Agreement. Anyone seeking to overcome this
presumption shall have the burden of proof and the burden of persuasion. Neither the failure of the Company (including by its directors
or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that
indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination
by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

    	Page 4 of 13

    	 

    

 

(e)
Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account
of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise (as
hereinafter defined) in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records
given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected
with reasonable care by the Enterprise. In addition, the knowledge and/or actions, or failure to act, of any director, officer,
agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification
under this Agreement. Whether or not the foregoing provisions of this Section 6(e) are satisfied, it shall
in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and
the burden of persuasion.

 

(f)
If the person, persons or entity empowered or selected under Section 6 to determine whether Indemnitee is
entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the
request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a
material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification,
or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended
for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making such determination
with respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation
and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 6(g) shall
not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 6(b) of
this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination,
the Board of Directors or the Disinterested Directors, if appropriate, resolve to submit such determination to the stockholders
for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such
determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such
receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having
been so called and such determination is made thereat.

 

(g)
Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement
to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. Any Independent Counsel, member of the Board of Directors or stockholder of the Company
shall act reasonably and in good faith in making a determination regarding the Indemnitee’s entitlement to indemnification
under this Agreement. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating
with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as
to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless
therefrom.

 

    	Page 5 of 13

    	 

    

 

(h)
The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon
a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely
affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner
which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

7. Company’s
Right to Defend. In the event the Company may be obligated to make any indemnity in connection with a Proceeding, the Company
shall be entitled to assume the defense of such Proceeding with counsel approved by Indemnitee, which approval shall not be unreasonably
withheld, upon the delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee for any
fees or expenses of counsel subsequently incurred by Indemnitee with respect to the same Proceeding. Notwithstanding the Company’s
assumption of the defense of any such Proceeding, the Company shall be obligated to pay the fees and expenses of Indemnitee’s
counsel to the extent (i) the employment of counsel by Indemnitee is authorized by the Company, (ii) counsel for the
Company or Indemnitee shall have reasonably concluded that there is a conflict of interest between the Company and Indemnitee in
the conduct of any such defense such that Indemnitee needs to be separately represented, (iii) the Company is not financially
or legally able to perform its indemnification obligations or (iv) the Company shall not have retained, or shall not continue
to retain, such counsel to defend such Proceeding. The Company shall have the right to conduct such defense as it sees fit in its
sole discretion. Regardless of any provision in this Agreement, Indemnitee shall have the right to employ counsel in any Proceeding
at Indemnitee’s personal expense. The Company shall not be entitled, without the consent of Indemnitee, to assume the defense
of any claim brought by or in the right of the Company.

 

(a)
Indemnitee shall give the Company such information and cooperation in connection with the Proceeding as may be reasonably appropriate.

 

(b)
The Company shall not be liable to indemnify Indemnitee for any settlement of any Proceeding (or any part thereof) without the
Company’s prior written consent, which shall not be unreasonably withheld.

 

(c)
The Company shall have the right to settle any Proceeding (or any part thereof) without the consent of Indemnitee, provided, however,
that the Company shall not settle any action or claim in a manner that would impose any penalty or admission of guilt or liability
on Indemnitee without Indemnitee’s written consent, which consent Indemnitee will not unreasonably withhold.

 

8. Remedies
of Indemnitee.

 

(a)
In the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee
is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of
this Agreement, (iii) no determination of entitlement to indemnification is timely made pursuant to Section 6(b) of
this Agreement, or (iv) payment of indemnification is not made within ten (10) days after a determination has been made
that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 6 of
this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Utah of Indemnitee’s
entitlement to such indemnification. The Company shall not oppose Indemnitee’s right to seek any such adjudication.

 

(b)
In the event that a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee
is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section 8 shall be
conducted in all respects as a de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination
under Section 6(b).

 

    	Page 6 of 13

    	 

    

 

(c)
If a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is entitled
to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 8,
absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such
indemnification under applicable law.

 

(d)
The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 8 that
the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court
that the Company is bound by all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all Expenses
and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore)
advance, to the extent not prohibited by law, such expenses to Indemnitee, which are incurred by Indemnitee in connection with
any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any
directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately
is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be, unless,
as part of such judicial proceeding, the Court determines that each of the material assertions made by Indemnitee was either frivolous
or not made in good faith.

 

(e) Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be
required to be made prior to the final disposition of the Proceeding.

 

9. Non-Exclusivity;
Survival of Rights; Insurance; Subrogation.

 

(a)
The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee
may at any time be entitled under applicable law, the certificate of incorporation of the Company, the Bylaws, any agreement, a
vote of stockholders, a resolution of directors or otherwise. No amendment, alteration or repeal of this Agreement or of any provision
hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee
in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the Utah General Corporation
Law, whether by statute or judicial decision, permits greater indemnification than would be afforded currently under the Bylaws
and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so
afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other right or remedy.

 

(b)
To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers,
employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise that such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies
in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent
or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof,
the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of
such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result
of such proceeding in accordance with the terms of such policies.

 

    	Page 7 of 13

    	 

    

 

(c)
In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

(d) The Company
shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent
that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

(e)
The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of
the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses
from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

 

10. Exception
to Right of Indemnification.

 

Notwithstanding
any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity:

 

(a)
for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision,
except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

 

(b)
for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company
within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions
of state statutory law or common law; or

 

(c)
for any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of
any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange
Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of
the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the
purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); or

 

(d)
in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part
of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless
(i) the Board of Directors of the Company authorized the Proceeding (or any part of any Proceeding) prior to its initiation,
or (ii) such Proceeding is one brought pursuant to Section 7 above to enforce or interpret Indemnitee’s
rights under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company.

 

    	Page 8 of 13

    	 

    

 

11. Duration
of Agreement.

 

All
agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an officer or director
of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to
any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of his Corporate Status, whether or not
he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be
provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation, sale of
all or substantially all of the business or assets of the Company, or otherwise), assigns, spouses, heirs, executors and personal
and legal representatives.

 

12. Security.

 

To
the extent requested by Indemnitee and approved by the Board of Directors of the Company, the Company may at any time and from
time to time provide security to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit,
funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released without the prior
written consent of the Indemnitee.

 

13. Enforcement.

 

(a)
The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby
in order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee is
relying upon this Agreement in serving as an officer or director of the Company.

 

(b)
This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter
hereof.

 

14. Definitions.

 

For purposes of
this Agreement:

 

(a)
A “Change of Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of
the following events:

 

(i)
Acquisition of Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly
or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the
Company’s then outstanding securities;

 

(ii)
Change in Board Composition. During any period of two consecutive years (not including any period prior to the execution of this
Agreement), individuals who at the beginning of such period constitute the Company’s board of directors, and any new directors
(other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described
in this Section 14) whose election by the board of directors or nomination for election by the Company’s stockholders
was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least
a majority of the members of the Company’s board of directors;

 

    	Page 9 of 13

    	 

    

 

(iii)
Corporate Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger
or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such
merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such
surviving entity;

 

(iv)
Liquidation. The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale
or disposition by the Company of all or substantially all of the Company’s assets; and

 

(v)
Other Events. Any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange
Act of 1934, as amended, whether or not the Company is then subject to such reporting requirement.

 

For
purposes of this Section 14(a), the following terms shall have the following meanings:

 

(A)
“Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended; provided, however, that “Person” shall exclude (i) the Company, (ii) any trustee
or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly
or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

 

(B)
“Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Securities Exchange Act of
1934, as amended; provided, however, that “Beneficial Owner” shall exclude any Person otherwise becoming
a Beneficial Owner by reason of (i) the stockholders of the Company approving a merger of the Company with another entity
or (ii) the Company’s board of directors approving a sale of securities by the Company to such Person.

 

(b)
“Corporate Status” describes the status of a person who is or was a director, officer, employee, agent or fiduciary
of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such
person is or was serving at the express written request of the Company.

 

(c)
“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in
respect of which indemnification is sought by Indemnitee.

 

(d)
“Enterprise” shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise that Indemnitee is or was serving at the express written request of the Company as a director, officer,
employee, agent or fiduciary.

 

(e)
“Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees
of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery
service fees and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending,
preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding. Expenses
also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation
the premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent.
Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

    	Page 10 of 13

    	 

    

 

(f)
“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation
law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in
any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of
other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim
for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any
person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing
either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company agrees to
pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses,
claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

(g)
“Proceeding” includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought
by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee
was, is or will be involved as a party or otherwise, by reason of the fact that Indemnitee is or was an officer or director of
the Company, by reason of any action taken by him or of any inaction on his part while acting as an officer or director of the
Company, or by reason of the fact that he is or was serving at the express written request of the Company as a director, officer,
employee, agent or fiduciary of another corporation, partnership, joint venture, trust or other Enterprise; in each case whether
or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification
can be provided under this Agreement; including one pending on or before the date of this Agreement.

 

15. Severability.

 

The
invalidity of unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.
Without limiting the generality of the foregoing, this Agreement is intended to confer upon Indemnitee indemnification rights to
the fullest extent permitted by applicable laws. In the event any provision hereof conflicts with any applicable law, such provision
shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict.

 

16. Modification
and Waiver.

 

No
supplement, modification, termination or amendment of this Agreement shall be binding unless executed in writing by both of the
parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

17. Notice
By Indemnitee.

 

Indemnitee
agrees promptly to notify the Company in writing upon being served with or otherwise receiving any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification
covered hereunder. The failure to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee
under this Agreement or otherwise unless and only to the extent that such failure or delay materially prejudices the Company.

 

    	Page 11 of 13

    	 

    

 

18. Notices.

 

All
notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given:
(a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent
during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days
after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day
after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.
All communications shall be sent:

 

(a)
To Indemnitee at the address set forth below Indemnitee’s signature.

 

(b)
To the Company at:

 

SD Company, Inc.

1583 South 1700 East

Vernal, UT 84078

 

Attention: Troy Meier (CEO)

With a copy, not constituting
notice to:

Wong Fleming P.C.

Attention:

Eugenie Rivers, Esq.

Shahzad Qadri Esq.

2340 130th Ave.
NE, D-150

Bellevue,
Washington 98005

 

or to such other
address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

19. Counterparts.

 

This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same Agreement. This Agreement may also be executed and delivered by facsimile signature and in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

20. Headings.

 

The
headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction thereof.

 

    	Page 12 of 13

    	 

    

 

21. Governing
Law and Consent to Jurisdiction.

 

This Agreement and the legal relations
among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Utah, without regard
to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action
or proceeding arising out of or in connection with this Agreement shall be brought only in the Courts of the State of Utah (the
“Utah Court”), and not in any other state or federal court in the United States of America or any court in any other
country, (ii) consent to submit to the exclusive jurisdiction of the Utah Court for purposes of any action or proceeding arising
out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of
process in the State of Utah, irrevocably Capitol Corporate Services Inc. 2005 East 2700 South, Ste. 200, Salt Lake City, Utah
84109 as its agent in the State of Utah as such party’s agent for acceptance of legal process in connection with any such
action or proceeding against such party with the same legal force and validity as if served upon such party personally within the
State of Utah, (iv) waive any objection to the laying of venue of any such action or proceeding in the Utah Court, and (v) waive,
and agree not to plead or to make, any claim that any such action or proceeding brought in the Utah Court has been brought in an
improper or inconvenient forum.

 

SIGNATURE
PAGE TO FOLLOW

 

IN WITNESS
WHEREOF, the parties hereto have executed this Agreement on and as of the day and year first above written.

 

	 	COMPANY
	 	 	 	 	 
	 	By:	 	 	 
	 	 	Name:	 	G. Troy Meier
	 	 	Title:	 	CEO
	 	 	 	 	 	 

 

	 	INDEMNITEE
	 	 
	 	 
	 	Name:
	 	 
	 	Address:
	 	 
	 	 
	 	 
	 	 

 

    	Page 13 of 13

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