Document:

Unassociated Document

    Exhibit
      10.39

     

    REGISTRATION
      RIGHTS AGREEMENT

    REGISTRATION
      RIGHTS AGREEMENT
      (this
“Agreement”),
      dated
      as of May 11, 2007, by and between TEKOIL
      & GAS CORPORATION,
      a
      Delaware corporation, with offices located at 5036 Dr. Phillips Blvd., Suite
      232, Orlando, Florida 32819 (the “Company”),
      and
GOLDMAN,
      SACHS & CO.,
      (referred to as “Buyer”)
      with
      offices located at c/o Goldman, Sachs E & P Capital, 1000 Louisiana St.,
      Suite 550, Houston, Texas 77002.

    

    PRELIMINARY
      STATEMENTS

    

    A. In
      connection with a certain Warrant to Purchase Common Stock by and between the
      parties of even date herewith (the “Warrant
      Agreement”),
      the
      Company has agreed, upon the terms and subject to the conditions of the Warrant
      Agreement, to issue to the Buyer up to 900,000 shares (subject to adjustment
      as
      provided in the Warrant Agreement) of the Company’s common stock, par value
      $0.000001 per share (the “Common
      Stock”);
      and

    

    B. The
      Company has agreed to provide certain registration rights under the Securities
      Act of 1933, as amended, and the rules and regulations thereunder, or any
      similar successor statute (collectively, the “1933
      Act”),
      and
      applicable state securities laws.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Company and the Buyer hereby agree as
      follows:

     

    1. DEFINITIONS.

     

    a. As
      used
      in this Agreement, the following terms shall have the following
      meanings:

    

    (i) “Investor”
means
      each of the Buyer and any transferee or assignee thereof who agrees in writing
      to become bound by the provisions of this Agreement.

    

    (ii) “register,”
      “registered,”
and
      “registration”
refer
      to a registration effected by preparing and filing a Registration Statement
      or
      Statements in compliance with the 1933 Act and pursuant to Rule 415 under the
      1933 Act or any successor rule providing for offering securities on a continuous
      basis (“Rule
      415”),
      and
      the declaration or ordering of effectiveness of such Registration Statement
      by
      the United States Securities and Exchange Commission (the “SEC”).

    

    (iii) “Registrable
      Securities”
means
      the shares of Common Stock or other securities issuable or issued, as the case
      may be, to the Investors under the Warrant Agreement.

    

    (iv) “Registration
      Period”
means
      the period commencing on the date on which the Registration Statement filed
      pursuant to this Agreement is declared effective by the SEC and expiring on
      the
      date that (A) the Investors may sell all of the Registrable Securities without
      restriction pursuant to Rule 144(k) promulgated under the 1933 Act, or (B)
      the
      Investors have sold all of the Registrable Securities.

    

    (v) “Registration
      Statement”
means
      a
      registration statement of the Company under the 1933 Act, as described in
      Section 1.a.(ii) above.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    b. Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Warrant Agreement.

    

    2. REGISTRATION
      RIGHTS. 

    

    a. Mandatory
      Registration.
      The
      Company shall prepare and file with the SEC a Registration Statement on Form
      S-3
      (or, if such form is unavailable for such a registration, on such other form
      as
      is available for such a registration) covering the resale of the Registrable
      Securities within 45 days of the Warrant Issue Date. The Registration Statement
      (and each amendment or supplement thereto, and each request for acceleration
      of
      effectiveness thereof) shall be provided to and approved by the Investors and
      their counsel prior to its filing or other submission, such approval not to
      be
      unreasonably withheld. The Company will use its reasonable efforts to cause
      such
      Registration Statement to become effective within 120 days of
      filing.

    

    b. 
      Piggy-Back Registrations.
      If at
      any time prior to filing a Registration Statement under this Agreement, the
      Company shall file with the SEC a Registration Statement relating to an offering
      for its own account or the account of others under the 1933 Act of any of its
      equity securities (other than on Form S-4 or Form S-8 or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans), the Company
      shall
      send to each Investor who is entitled to registration rights under this Section
      2 written notice of the intended filing of such Registration Statement and,
      if
      within twenty (20) days after receipt of such notice, any Investor shall so
      request in writing, the Company shall include in such Registration Statement
      all
      or any part of the Registrable Securities such Investor requests to be
      registered, except that if, in connection with any underwritten public offering
      for the account of the Company the managing underwriter(s) thereof shall impose
      a limitation on the number of shares of Common Stock which may be included
      in
      the Registration Statement because, in such underwriter(s)’ judgment, marketing
      or other factors dictate such limitation is necessary to facilitate public
      distribution, then the Company shall be obligated to include in such
      Registration Statement only a limited portion of the Registrable Securities
      with
      respect to which such Investor has requested inclusion hereunder, such portion
      to be determined as hereinafter provided; provided that no portion of the equity
      securities which the Company is offering for its own account shall be excluded;
      provided,
      further
      that the
      Company shall be entitled to exclude Registrable Securities to the extent
      necessary to avoid breaching obligations existing prior to the date hereof
      to
      other stockholders of the Company. Subject to the foregoing, the Company shall
      not exclude any Registrable Securities unless the Company has first excluded
      all
      outstanding securities, the holders of which are not entitled to inclusion
      of
      such securities in such Registration Statement or are not entitled to pro rata
      inclusion with the Registrable Securities, and, after giving effect to the
      immediately preceding clause, any exclusion of Registrable Securities shall
      be
      made pro rata with holders of other securities having the right to include
      such
      securities in the Registration Statement other than holders of securities
      entitled to inclusion of their securities in such Registration Statement by
      reason of demand registration rights. If an offering in connection with which
      an
      Investor is entitled to registration under this Section 2 is an underwritten
      offering and such Investor’s Registrable Securities are included in such
      Registration Statement, then the Investor shall, unless otherwise agreed by
      the
      Company, offer and sell such Registrable Securities in such underwritten
      offering using the same underwriter or underwriters and, subject to the
      provisions of this Agreement, on the same terms and conditions as other shares
      of Common Stock included in such underwritten offering. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    3. OBLIGATIONS
      OF THE COMPANY. 

    

    In
      connection with the registration of the Registrable Securities, the Company
      shall have the following obligations:

     

    a. A
      Registration Statement filed pursuant to this Agreement (including any
      amendments or supplements thereto and prospectuses contained therein) shall
      not
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein, or necessary to make the statements therein
      not
      misleading.

    

    b. The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to the Registration Statement and
      the
      prospectus used in connection with the Registration Statement as may be
      necessary to keep the Registration Statement effective at all times during
      the
      Registration Period, and, during the Registration Period, comply with the
      provisions of the 1933 Act with respect to the disposition of all Registrable
      Securities of the Company covered by the Registration Statement until such
      time
      as all of such Registrable Securities have been disposed of in accordance with
      the intended methods of disposition by the seller or sellers thereof as set
      forth in the Registration Statement.

    

    c. The
      Company shall furnish to each Investor if its Registrable Securities are
      included in the Registration Statement and its legal counsel (i) promptly after
      the same is prepared and publicly distributed, filed with the SEC, or received
      by the Company, one copy of the Registration Statement and any amendment
      thereto, each preliminary prospectus and prospectus and each amendment or
      supplement thereto, and (ii) such number of copies of a prospectus, including
      a
      preliminary prospectus, and all amendments and supplements thereto and such
      other documents as such Investor may reasonably request in order to facilitate
      the disposition of the Registrable Securities owned by such
      Investor.

    

    d.
      As
      promptly as practicable after becoming aware of such event, the Company shall
      notify the Investor of the happening of any event, of which the Company has
      knowledge, as a result of which the prospectus included in the Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omission to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, and use its best efforts promptly
      to
      prepare a supplement or amendment to the Registration Statement to correct
      such
      untrue statement or omission, and deliver such number of copies of such
      supplement or amendment to the Investor as the Investor may reasonably
      request.

    

    e. 
      The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of a Registration Statement, and, if such
      an
      order is issued, to obtain the withdrawal of such order at the earliest possible
      moment and to notify each Investor if such Investor holds Registrable Securities
      being sold (or, in the event of an underwritten offering, the managing
      underwriters) of the issuance of such order and the resolution thereof.

    

    f. 
      The
      Company shall hold in confidence and not make any disclosure of information
      concerning the Investors provided to the Company unless (i) the Company
      determines disclosure of such information is necessary to comply with federal
      or
      state securities laws, (ii) the disclosure of such information is necessary
      to
      avoid or correct a misstatement or omission in any Registration Statement,
      (iii)
      the release of such information is ordered pursuant to a subpoena or other
      final, non-appealable order from a court or governmental body of competent
      jurisdiction, or (iv) such information has been made generally available to
      the
      public other than by disclosure in violation of this or any other agreement.
      The
      Company agrees that it shall, upon learning that disclosure of such information
      concerning an Investor is sought in or by a court or governmental body of
      competent jurisdiction or through other means, give prompt notice to such
      Investor and allow the Investor, at the Investor’s expense, to undertake
      appropriate action to prevent disclosure of, or to obtain a protective order
      for, such information.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    g. 
      The
      Company shall use its best efforts to cause all the Registrable Securities
      covered by the Registration Statement to be listed on the American Stock
      Exchange and on each additional national securities exchange on which securities
      of the same class or series issued by the Company are then listed, if any,
      if
      the listing of such Registrable Securities is then permitted under the rules
      of
      such exchange.

    

    h. 
      The
      Company shall cooperate with each Investor if it holds Registrable Securities
      and the managing underwriter or underwriters, if any, to facilitate the timely
      preparation and delivery of certificates representing the Registrable Securities
      to be offered pursuant to the Registration Statement and enable such
      certificates to be in such denominations or amounts, as the case may be, as
      the
      managing underwriter or underwriters, if any, or the Investor may reasonably
      request and registered in such names as the managing underwriter or
      underwriters, if any, or the Investor may request.

    

    4. OBLIGATIONS
      OF THE INVESTOR.

    

    In
      connection with the registration of the Registrable Securities, each Investor,
      severally and not jointly with other Investors, shall have the following
      obligations:

    

    a. It
      shall
      be a condition precedent to the obligations of the Company to complete the
      registration of Registrable Securities of an Investors pursuant to this
      Agreement that such Investor shall furnish to the Company such information
      regarding itself, the Registrable Securities held by it and the intended method
      of disposition of the Registrable Securities held by it as shall be reasonably
      required to effect the registration of such Registrable Securities and shall
      execute such documents in connection with such registration as the Company
      may
      reasonably request. At least five (5) days prior to the first anticipated filing
      date of the Registration Statement, the Company shall notify each Investor
      of
      the information the Company requires from the Investor if the Investor elects
      to
      have any of the Investor’s Registrable Securities included in the Registration
      Statement. 

     

    b. Each
      Investor by such Investor’s acceptance of the Registrable Securities agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of the Registration Statement hereunder, unless
      such Investor has notified the Company in writing of the Investor’s election to
      exclude all of the Investor’s Registrable Securities from the Registration
      Statement.

    

    c. Each
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(d) or 3(e), the
      Investor will immediately discontinue disposition of Registrable Securities
      pursuant to the Registration Statement covering such Registrable Securities
      until the Investor’s receipt of the copies of the supplemented or amended
      prospectus contemplated by Section 3(d) or 3(e) and, if so directed by the
      Company, the Investor shall deliver to the Company (at the expense of the
      Company) or destroy (and deliver to the Company a certificate of destruction)
      all copies in the Investor’s possession, of the prospectus covering such
      Registrable Securities current at the time of receipt of such
      notice.

    

    d. An
      Investor may not participate in any underwritten registration hereunder unless
      the Investor (i) agrees to sell the Investor’s Registrable Securities on the
      basis provided in any underwriting arrangements, (ii) completes and executes
      all
      questionnaires, powers of attorney, indemnities, underwriting agreements and
      other documents reasonably required under the terms of such underwriting
      arrangements, and (iii) agrees to pay its pro rata share of all underwriting
      discounts and commissions.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    e. Each
      Investor shall give notice to the Company when it has sold all of its
      Registrable Securities.

    

    5. EXPENSES
      OF REGISTRATION.

    

    All
      reasonable expenses, other than underwriting discounts and commissions, incurred
      in connection with registrations, filings or qualifications pursuant to Sections
      2 and 3, including, without limitation, all registration, listing and
      qualifications fees, printers and accounting fees, the fees and disbursements
      of
      counsel for the Company, shall be borne by the Company. Notwithstanding the
      foregoing, each Investor shall be responsible for all expenses, fees and
      disbursements incurred by such Investor or on such Investor’s behalf, including
      all fees and disbursements of counsel to the Investor, except as provided in
      Section 6 hereof.

    

    6. INDEMNIFICATION.
      

    

    In
      the
      event any Registrable Securities are included in a Registration Statement under
      this Agreement:

    

    a. The
      Company will indemnify, hold harmless and defend (i) each Investor who holds
      such Registrable Securities, and (ii) the directors, officers and each
      person who controls any such Investor within the meaning of the 1933 Act or
      the
      Securities Exchange Act of 1934, as amended (the “1934
      Act”),
      if
      any, (each, an “Indemnified
      Person”),
      against any losses, claims, damages, liabilities or expenses (joint or several)
      (collectively, “Claims”)
      to
      which any of them may become subject insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon: (i) any untrue statement or alleged untrue statement of
      a
      material fact in a Registration Statement or the omission or alleged omission
      to
      state a material fact therein required to be stated or necessary to make the
      statements therein not misleading, (ii) any untrue statement or alleged untrue
      statement of a material fact contained in any preliminary, final or free writing
      prospectus or any amendment thereof or supplement or the omission or alleged
      omission to state therein any material fact necessary to make the statements
      made therein, in light of the circumstances under which the statements therein
      were made, not misleading, or (iii) any violation or alleged violation by the
      Company of the 1933 Act, the 1934 Act, any other law, including, without
      limitation, any state securities law, or any rule or regulation thereunder
      relating to the offer or sale of the Registrable Securities pursuant to a
      Registration Statement (the matters in the foregoing clauses (i) through (iii)
      being, collectively, “Violations”).
      Subject to the restrictions set forth in Section 6(d), the Company shall
      reimburse each Indemnified Person, promptly as such expenses are incurred and
      are due and payable, for any legal fees or other reasonable expenses incurred
      by
      them in connection with investigating or defending any such Claim.
      Notwithstanding anything to the contrary contained herein, the indemnification
      agreement contained in this Section 6(a): (i) shall not apply to a Claim against
      an Indemnified Person arising out of or based upon a Violation which occurs
      in
      reliance upon and in conformity with information furnished in writing to the
      Company by such Indemnified Person expressly for use in connection with the
      preparation of the Registration Statement or any such amendment thereof or
      supplement thereto, if such prospectus was timely made available by the Company
      pursuant to Section 3(c) hereof; (ii) shall not be available to the extent
      such
      Claim is based on a failure of the Indemnified Person to deliver or to cause
      to
      be delivered the prospectus made available by the Company; and (iii) shall
      not
      apply to amounts paid in settlement of any Claim if such settlement is effected
      without the prior written consent of the Company, which consent shall not be
      unreasonably withheld. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of the Indemnified Person
      and shall survive the transfer of the Registrable Securities by the
      Investors.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    b. In
      connection with any Registration Statement in which an Investor is
      participating, such Investor agrees, severally and not jointly, to indemnify,
      hold harmless and defend, to the same extent and in the same manner set forth
      in
      Section 6(a), the Company, each of its directors, each of its officers who
      signs
      the Registration Statement, each person, if any, who controls the Company within
      the meaning of the 1933 Act or the 1934 Act, any underwriter and any other
      stockholder selling securities pursuant to the Registration Statement or any
      of
      its directors or officers or any person who controls such stockholder or
      underwriter within the meaning of the 1933 Act or the 1934 Act (collectively
      and
      together with an indemnified Person, an “Indemnified
      Party”),
      against any Claim to which any of them may become subject, under the 1933 Act,
      the 1934 Act or otherwise, insofar as such Claim arises out of or is based
      upon
      any Violation, in each case to the extent (and only to the extent) that such
      violation occurs in reliance upon and in conformity with written information
      furnished to the Company by such Investor expressly for use in connection with
      such Registration Statement or to the extent such Claim is based upon any
      violation or alleged violation by the Investor of the 1933 Act, 1934 Act or
      any
      other law; and such Investor will reimburse any legal or other expenses
      reasonably incurred by them in connection with investigating or defending any
      such Claim; provided, however, that the indemnity agreement contained in this
      Section 6(b) shall not apply to amounts paid in settlement of any Claim if
      such
      settlement is effected without the prior written consent of such Investor,
      which
      consent shall not be unreasonably withheld; provided, further, however, that
      such Investor shall be liable under this Section 6(b) for only that amount
      of a
      Claim as does not exceed the net proceeds to such Investor as a result of the
      sale of Registrable Securities pursuant to such Registration Statement. Such
      indemnity shall remain in full force and effect regardless of any investigation
      made by or on behalf of such Indemnified Party and shall survive the transfer
      of
      the Registrable Securities by the Investors.

    

    c. The
      Company shall be entitled to receive indemnities from underwriters, selling
      brokers, dealer managers and similar securities industry professionals
      participating in any distribution, to the same extent as provided above, with
      respect to information such persons so furnished in writing by such persons
      expressly for inclusion in the Registration Statement.

    

    d. Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action (including any governmental action),
      such Indemnified Person or Indemnified Party shall, if a Claim in respect
      thereof is to made against any indemnifying party under this Section 6, deliver
      to the indemnifying party a written notice of the commencement thereof, and
      the
      indemnifying party shall have the right to participate in, and, to the extent
      the indemnifying party so desires, jointly with any other indemnifying party
      similarly noticed, to assume control of the defense thereof with counsel
      mutually satisfactory to the indemnifying party and the Indemnified Person
      or
      the Indemnified Party, as the case may be; provided, however, that an
      Indemnified Person or Indemnified Party shall have the right to retain its
      own
      counsel with the fees and expenses to be paid by the indemnifying party, if,
      in
      the reasonable opinion of counsel retained by the indemnifying party, the
      representation by such counsel of the Indemnified Person or Indemnified Party
      and the indemnifying party would be inappropriate due to actual or potential
      differing interests between such Indemnified Person or Indemnified Party and
      any
      other party represented by such counsel in such proceeding. The failure to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      6,
      except to the extent that the indemnifying party is prejudiced in its ability
      to
      defend such action. The indemnification required by this Section 6 shall be
      made
      by periodic payments of the amount thereof during the course of the
      investigation or defense, as such expense, loss, damage or liability is incurred
      and is due and payable.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    7. CONTRIBUTION.
      

    

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided, however, that (i) no contribution
      shall be made under circumstances where the maker would not have been liable
      for
      indemnification under the fault standards set forth in Section 6, (ii) no seller
      of Registrable Securities guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
      from
      any seller of Registrable Securities who was not guilty of such fraudulent
      misrepresentation, and (iii) contribution by any seller of Registrable
      Securities shall be limited in amount to the net amount of proceeds received
      by
      such seller from the sale of such Registrable Securities.

    

    8. AMENDMENT
      OF REGISTRATION RIGHTS. 

    

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with the written consent of the Company and the Investor.
      Any amendment or waiver effected in accordance with this Section 8 shall be
      binding upon the Investor and the Company.

    

    9. MISCELLANEOUS.

    

    a. A
      person
      or entity is deemed to be a holder of Registrable Securities whenever such
      person or entity owns of record such Registrable Securities or is a Holder
      under
      the Warrant Agreement. If the Company receives conflicting instructions, notices
      or elections from two or more persons or entities with respect to the same
      Registrable Securities, the Company shall act upon the basis of instructions,
      notice or election received from the registered owner of such Registrable
      Securities.

    

    b. Any
      notices required or permitted to be given under the terms of this Agreement
      shall be sent by registered or certified mail, return receipt requested, or
      delivered personally or by courier and shall be effective five days after being
      placed in the mail, if mailed, or upon receipt, if delivered personally or
      by
      courier, in each case addressed to a party. The addresses for such
      communications shall be:

    

    
      	If to the Company:	
              Tekoil & Gas Corporation

              
                5036
                  Dr. Phillips Blvd., Suite 232

                Orlando,
                  Florida 32819

                Telephone:
                  (407) 996-8506

                Telecopy:
                  (407) 996-8507

                Attention:
                  Mr. Mark Western

              

            	 
	 	 	 
	With copy to:	
              Baker & Hostetler LLP

              
                200
                  South Orange Avenue

                Orlando,
                  FL 32801

                Telephone:
                  (407) 649-4001

                Telecopy:
                  (407) 841-0168

                Attention:
                  Kenneth C. Wright, Esq.

              

            	 
	 	 	 
	If to the Buyer:	
              Goldman, Sachs & Co.

              
                c/o
                  Goldman, Sachs E & P Capital

                1000
                  Louisiana St., Suite 550

                Houston,
                  TX 77002

                Telephone:
                  (713) 658-2690

                Telecopy:
                  (713) 658-2603

                Attention:
                  John Howie

              

            	 

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    If
      to any
      other Investor, to the address of such Investor provided by such Investor in
      the
      written instrument contemplated by the definition of "Investor"
      above.

    

    Each
      party shall provide notice to the other party of any change in
      address.

    

    c. Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

    

    d. This
      Agreement shall be enforced, governed by and construed in accordance with the
      laws of the State of New York applicable to agreements made and to be performed
      entirely within such State. In the event that any provision of this Agreement
      is
      invalid or unenforceable under any applicable statute or rule of law, then
      such
      provision shall be deemed inoperative to the extent that it may conflict
      therewith and shall be deemed modified to conform with such statute or rule
      of
      law. Any provision hereof which may prove invalid or unenforceable under any
      law
      shall not affect the validity or enforceability of any other provision
      hereof.

    

    e. This
      Agreement, the letter agreement dated the date hereof between the Company and
      the Buyer, the Warrant Agreement and the Credit Agreement constitute the entire
      agreement among the parties hereto with respect to the subject matter hereof
      and
      thereof. There are no restrictions, promises, warranties or undertakings, other
      than those set forth or referred to herein and therein. This Agreement, the
      Warrant Agreement and the Credit Agreement supersede all prior agreements and
      understandings among the parties hereto with respect to the subject matter
      hereof and thereof.

    

    f. This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      assigns of each of the parties hereto.

    

    g. The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

    

    h. This
      Agreement may be executed in two or more identical counterparts, each of which
      shall be deemed an original but all of which shall constitute one and the same
      agreement. This Agreement, once executed by a party, may be delivered to the
      other party hereto by facsimile transmission of a copy of this Agreement bearing
      the signature of the party so delivering this Agreement.

    

    i. Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

    

    [SIGNATURES
      APPEAR ON FOLLOWING PAGE]

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Registration Rights Agreement
      to
      be duly executed as of day and year first above written.

    
      	 	 	 
	 	
              “Company”

              

              TEKOIL
                & GAS CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
                

              

              Mark Western, 

              Chairman and CEO

            

    

     

     

    
      Signature
        Page to Registration Rights Agreement

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	
              “Buyer”

              

              GOLDMAN,
                SACHS & CO.

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Milton R. Millman
	 	
              

              Print
                Name: Milton
                R. Millman III

            
	 	
              As
                its: Authorized
                Signatory

            

    

     

    

    Signature
      Page to Registration Rights Agreement

    
      
        
        

      

      
        10Unassociated Document

    
      Exhibit
        10.40

       

      EXECUTION
        COPY

    

    
      	
              STATE
                OF TEXAS

            	
              §

            
	 	
              §

            
	
              COUNTIES
                OF CHAMBERS

            	
              §

            
	
              AND
                GALVESTON

            	
              §

            

    

     

    ASSIGNMENT
      AND BILL OF SALE

    

    IN
      CONSIDERATION OF Ten Dollars ($10.00) and other good and valuable consideration,
      all cash, the receipt and sufficiency of which are acknowledged, and subject
      to
      the other provisions in this Assignment and Bill of Sale (the “Assignment”), to
      the extent of each of their respective interests, each of MASTERS RESOURCES,
      L.L.C. and MASTERS OIL & GAS, L.L.C., (collectively, “Assignor”) each a
      Texas limited liability company having its principal place of business at 9801
      Westheimer, Suite 1070, Houston, Texas 77042, hereby grants, bargains, sells,
      transfers, conveys and assigns to TEKOIL AND GAS GULF COAST, LLC, a Delaware
      limited liability company, having its principal place of business at 25050
      I-45
      North, Suite 528, The Woodlands, Texas 77380, all of the interest of Assignor
      in
      and to the following (collectively, the “Assets”):

    

    
      	 	
              1.1.

            	
              The
                oil, gas and mineral leases and other real property described on
                Exhibit A
                attached to and made a part of this Assignment (the
                “Property”);

            

    

    

    
      	 	
              1.2.

            	
              All
                oil and gas wells, salt water disposal wells, injection wells and
                other
                wells and pits located on or attributable to the Property (collectively
                the “Wells”), including, without limitation, the Wells described on
                Exhibit B attached to and made a part of this
                Assignment;

            

    

    

    
      	 	
              1.3.

            	
              All
                equipment, including without limitation the workover rig, vehicles,
                crew
                boats, work barges and vessels listed on Exhibit C attached to and
                made a
                part of this Assignment, and all machinery, flowlines, roads, gathering
                lines, pipelines, pole lines, appurtenances, materials, fixtures,
                improvements and other personal property located on, used in the
                operation
                of or relating to the production, treatment, sale or disposal of
                hydrocarbons, water or associated substances produced from or attributable
                to the Property (collectively the “Personal
                Property”);

            

    

    

    
      	 	
              1.4.

            	
              All
                hydrocarbons, including natural gas, casing head gas, drip gasoline,
                natural gasoline, natural gas liquids, condensate products and crude
                oil,
                whether gaseous or liquid, produced from or attributable to the Property
                or Wells on or after the Effective Time, as defined below (collectively
                the “Hydrocarbons”);

            

    

    

    
      	 	
              1.5.

            	
              To
                the extent transferable at no cost or expense to Assignor, copies
                (or
                originals if Assignor does not wish to retain the originals of such
                records) of all of Assignor’s geological, geophysical or seismic prospect
                maps, electric logs, survey maps,
                geological profiles, geophysical data (including, without limitation,
                field tapes and all processed versions,
                synthetics, and all other forms of expression of geophysical data),
                and
                geological
                and geophysical interpretative data, to the extent that the foregoing
                relate
                to
                the Property, or any portion
                thereof;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              1.6.

            	
              All
                contracts, instruments and orders relating to the Property, Wells,
                Personal Property and Hydrocarbons (collectively the “Contracts”),
                including without limitation the Contracts described on Exhibit D
                attached
                to and made a part of this Assignment;
                and

            

    

    

    
      	 	
              1.7.

            	
              All
                files, records, information and materials relating to the Property,
                Wells,
                Personal Property, Hydrocarbons and Contracts owned by or in the
                possession of Assignor which Assignor is not prohibited from transferring
                to Assignee by law or existing contractual relationship (collectively
                the
                “Records”).

            

    

    

    Any
      provision to the contrary contained in this Assignment notwithstanding, Assignor
      excepts and reserves and there shall be excluded from this Assignment the
      following (collectively, the “Excluded Assets”):

    

    
      	 	
              2.1.

            	
              The
                oil and gas properties more particularly described on the attached
                Exhibit
                E which is attached to and made a part of this
                Assignment;

            

    

     

    
      	 	
              2.2.

            	
              All
                of Assignor’s reserve estimates, economic analyses, pricing forecasts,
                legal opinions (other than those related to title to any of the
                Properties) and other analyses relating to the Assets and all information
                relating to the Assets which Assignor considers confidential or protected
                by attorney-client privilege;

            

    

     

    
      	 	
              2.3.

            	
              All
                rights and claims relating to the Assets, other than rights or claims
                in
                connection with gas imbalances, arising, occurring or existing in
                favor of
                Assignor prior to the Effective Time, including all contract rights,
                claims, penalties, receivables, revenues, recoupment rights, recovery
                rights, accounting adjustments, mispayments, erroneous payments,
                property
                damage claims, insurance claims, indemnity claims, bond claims and
                condemnation claims;

            

    

     

    
      	 	
              2.4.

            	
              All
                corporate, financial and tax records of Assignor; provided, however,
                that
                upon request, Assignee will be entitled to receive copies of all
                financial
                and tax records which directly relate to the Assets and which are
                necessary for Assignee’s ownership, administration or operation of the
                Assets;

            

    

     

    
      	 	
              2.5.

            	
              All
                claims of Assignor for refund of or loss carry forwards with respect
                to
                production, windfall profit, severance, ad valorem, income, franchise
                and
                all other taxes attributable to the Assets for all periods prior
                to the
                Effective Time;

            

    

     

    
      	 	
              2.6.

            	
              All
                amounts due or payable to Assignor as adjustments or refunds under
                any
                contract affecting the Assets for all periods prior to the Effective
                Time;

            

    

     

    
      	 	
              2.7.

            	
              All
                amounts due or payable to Assignor as adjustments to insurance premiums
                related to the Assets for all periods prior to the Effective
                Time;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	 	
              2.8.

            	
              All
                monies, proceeds, accruals, benefits, receipts, credits, income,
                revenues,
                security or deposits attributable to the Assets prior to the Effective
                Time;

            

    

     

    
      	 	
              2.9.

            	
              All
                of Assignor’s patents, trade secrets, copyrights, names, marks and
                logos;

            

    

     

    
      	 	
              2.10.

            	
              All
                computers, hardware, software and software
                licenses;

            

    

     

    
      	 	
              2.11.

            	
              All
                licensed raw or processed geophysical data and all interpretations
                of that
                data which Assignor is prohibited from transferring to Assignee by
                law or
                existing contractual relationship;

            

    

     

    
      	 	
              2.12.

            	
              The
                overriding royalties conveyed by Assignor to Masters Pipeline, L.L.C.,
                by
                Assignment of Overriding Royalty Interests of even date herewith
                recorded
                or to be recorded in Chambers and Galveston Counties, Texas, and
                all
                overriding royalties held by individuals associated with Assignor
                as of
                the Effective Time; and

            

    

     

    
      	 	
              2.13.

            	
              All
                personal property owned by Masters Offshore, L.L.C., and its surface
                facilities located in the vicinity of the Assets as depicted on the
                attached Exhibit F which is attached to and made a part of this
                Assignment.

            

    

     

    This
      Assignment from Assignor to Assignee is delivered by Assignor and accepted
      by
      Assignee subject to the following (“Existing Burdens”):

    

    
      	 	
              3.1.

            	
              Lessor’s
                royalties, non-participating royalties, overriding royalties, division
                orders and
                sales contracts containing customary terms and provisions covering
                oil,
                gas or other
                associated liquefied or gaseous hydrocarbons, reversionary interests
                and
                similar burdens;

            

    

    

    
      	 	
              3.2.

            	
              Preferential
                rights to purchase with respect to which prior to the date of this
                Assignment, waivers have been obtained from the appropriate parties
                or the
                appropriate time period for asserting those rights have expired without
                an
                exercise of those rights;

            

    

    

    
      	 	
              3.3.

            	
              Third
                party consents to assignment to the extent only that such consents
                are
                customarily obtained after Closing, including rights to consent by,
                required notices to,
                filings with or other actions
                required by governmental
                entities in connection with
                this Assignment;

            

    

    

    
      	 	
              3.4.

            	
              Liens
                for taxes or assessments not yet due or delinquent, or if delinquent,
                that
                are being contested in good faith in the normal course of business
                and for
                which
                an
                appropriate reserve has been established by Assignor and transferred
                to
                Assignee;

            

    

    

    
      	 	
              3.5.

            	
              Conventional
                rights of reassignment requiring notice to the holders of those
                rights;

            

    

    

    
      	 	
              3.6.

            	
              Easements,
                road-use agreements, rights-of-way, servitudes, permits, surface
                leases
                and other rights with respect to surface operations as long as the
                rights
                do not have a Material Adverse Effect on the Assets and do not otherwise
                impair the ownership, operation, use or value of the Assets on or
                after
                the Effective Time;

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    
      	 	
              3.7.

            	
              Zoning,
                planning and environmental laws and regulations to the extent that
                they
                are valid
                and applicable to the Assets and do not have a Material Adverse Effect
                on
                the Assets;

            

    

    

    
      	 	
              3.8.

            	
              Vendors’,
                carriers’, warehousemen’s, repairmen’s, mechanics’, workmen’s,
                materialmen’s, construction and other liens arising by operation of law in
                the ordinary
                course
                of business
                or incident to the construction or improvement of any property whose
                underlying obligations are not yet
                due;

            

    

    

    
      	 	
              3.9.

            	
              Defects,
                irregularities and deficiencies in title which in the aggregate do
                not
                have a Material Adverse Effect on the Assets and do not otherwise
                impair
                the ownership, operation, use or value
                of the Assets on or after the
                Effective Time;

            

    

    

    
      	 	
              3.10.

            	
              Farmouts,
                areas of mutual interest, participation agreements and other exploration
                agreements relating to the Assets;

            

    

    

    
      	 	
              3.11.

            	
              The
                overriding royalties conveyed by Assignor to Masters Pipeline, L.L.C.,
                by
                Assignment of Overriding Royalty Interests of even date herewith
                recorded
                or to be recorded in Chambers and Galveston Counties, Texas, and
                all
                overriding royalties held by individuals associated with Assignor
                as of
                the Effective Time.

            

    

    

    TO
      HAVE
      AND TO HOLD, all and singular, the Assets unto Assignee and Assignee’s
      successors in title and assigns forever. Assignor agrees to warrant and forever
      defend title to the Assets unto Assignee, its successors and assigns, against
      the claims and demands of all persons claiming, or to claim the same, or any
      part thereof by, thorugh or under Assignor, but not otherwise. The reference
      herein to the Existing Burdens is for the purposes of protecting Assignor on
      Assignor’s warranties, and shall not create, nor constitute a recognition of,
      any rights in third parties. This Assignment, in respect of the Personal
      Property, Hydrocarbons, Contracts and Records, is made without further warranty
      or covenants, express or implied, and, in respect of the Personal Property,
      the
IMPLIED
      WARRANTY OF MERCHANTABILITY AND THE IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR
      PURPOSE ARE HEREBY EXPRESSLY NEGATED.
      This
      Assignment is made with full substitution and subrogation of Assignee in and
      to
      all covenants, indemnities, representations and warranties by others heretofore
      given or made with respect to the Assets or any part thereof.

    

    The
      term
“oil, gas and mineral lease” as used in this Assignment and in Exhibit A hereto
      includes in addition to oil, gas and mineral leases, oil and gas leases, oil,
      gas and sulphur leases, other mineral leases, co-lessor’s agreements, lease
      ratifications and extensions and subleases of any of the foregoing, as
      appropriate. The term “Material
      Adverse Effect” as used in this Assignment means any fact, condition or
      circumstance having a value of greater than $100,000.

    

    Assignor
      agrees to execute, to acknowledge and to deliver to Assignee any additional
      instruments, notices, division orders, transfer orders and other documents
      and
      to do any other acts and things which may be necessary to more fully and
      effectively assign and convey to Assignee and Assignee’s
      successors in title and assigns the Properties intended to be assigned
      hereby.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    This
      Assignment is further subject to the following provisions:

    

    
      	 	
              4.1.

            	
              No
                Warranties or Representations.
                Assignor makes no warranty or representation of any kind as to the
                accuracy or completeness of any data, information or material furnished
                to
                Assignee in connection with the Assets, the quality or quantity of
                Hydrocarbon reserves attributable to the Assets or the ability of
                the
                Assets to produce Hydrocarbons. Assignee has inspected the Assets
                and is
                satisfied with their physical and environmental condition, both surface
                and subsurface. Assignee accepts the Assets in an “As Is, Where Is”
                condition.

            

    

     

    
      	 	
              4.2.

            	
              Assumption
                of Duties and Obligations.
                As of the Effective Time, Assignee will assume all duties and obligations
                of Assignor with respect to the Assets, including any request or
                order to
                plug, re-plug or abandon any Well, remove any Well or appurtenance,
                or
                take any clean-up or remediation action with respect to the
                Assets.

            

    

     

    
      	 	
              4.3.

            	
              Indemnity.
                Assignee will indemnify Assignor and hold Assignor harmless for all
                expenses, settlements, judgments, court costs, interest and attorney’s
                fees incurred as a result of any litigation or threat of litigation
                relating to this Assignment, the Assets or any prior or future operations
                on, of or with respect to the
                Assets.

            

    

     

    
      	 	
              4.4.

            	
              Taxes/Fees.
                Assignee will pay all transactional taxes, including sales, use,
                lease and
                ad valorem taxes, and all recording fees due as a result of this
                Assignment.

            

    

     

    
      	 	
              4.5.

            	
              Other
                Agreements.
                This Assignment is made subject to the Purchase and Sale Agreement,
                between Assignor and Assignee, dated November 13,
                2006.

            

    

     

    
      	 	
              4.6.

            	
              Effect
                of Assignment and Bill of Sale.
                This Assignment shall be binding upon Assignor and Assignee as well
                as
                their respective successors and
                assigns.

            

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY BLANK. SIGNATURES ARE ON NEXT PAGE.]

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Signed:
      May 11, 2007, TO BE EFFECTIVE, HOWEVER, AS OF October 1, 2006, at 12:00 midnight
      Central Standard Time (the “Effective Time”).

     

    
      	 	 	 	 
	ASSIGNOR:	
              ASSIGNEE:

            
	 	 	 
	
              MASTERS
                RESOURCES, L.L.C. and 

              MASTERS
                OIL & GAS, L.L.C.

            	
              TEKOIL
                AND GAS GULF COAST, LLC

            
	 	 	 
	 	 
 	By:
	Tekoil
&
Gas
              Corporation, Its Managing Member
	 	 	 	 
	By:  	/s/ John W. Barton 	By:  	/s/
              Mark Western
              
	 	
              

              John
                W. Barton, Managing Member

            	 	
              

              Mark
                Western, CEO and Chairman of the Board of
                Directors

            

    

     

    EXHIBITS:

    

      
        	
                Exhibit
                  A

              	
                Property

              
	
                Exhibit
                  B

              	
                Wells

              
	
                Exhibit
                  C

              	
                Personal
                  Property

              
	
                Exhibit
                  D

              	
                Contracts

              
	
                Exhibit
                  E

              	
                Excluded
                  oil and gas properties

              
	
                Exhibit
                  F

              	
                Excluded
                  personal property and surface facilities in vicinity of Assets
                  owned by
                  Masters Offshore, L.L.C.

              

      

    

     

    Signature
      Page to Assignment and Bill of Sale

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	STATE OF TEXAS	§
	 	§
	COUNTY OF HARRIS	§

    

     

    This
      instrument was acknowledged before me this 11th
      day of
      May, 2007, by John W. Barton, Managing Member of each of Masters Resources,
      L.L.C. and Masters Oil & Gas, L.L.C., each a Texas limited liability
      company, on behalf of each of said limited liability companies.

     

    
      	 	 	 
	RHONDEE M. DAMON	
            	/s/ Rhondee
              M. Damon
	
              Notary Public, State of
                Texas

              
                My
                  Commission Expires

                April
                  26, 2009

              

            	
              
Notary
              Public in and for the State of
              Texas

    

     

    
      	STATE OF TEXAS	§
	 	§
	COUNTY OF HARRIS	§

    

     

    This
      instrument was acknowledged before me this 11th
      day of
      May, 2007, by Mark Western, CEO and Chairman of the Board of Directors of Tekoil
      & Gas Corporation, the Managing Member of Tekoil and & Gas Gulf Coast,
      LLC, a Delaware limited liability company, on behalf of said limited liability
      company.

    

    
      	 	 	 
	RHONDEE M. DAMON	
            	/s/ Rhondee
              M. Damon
	
              Notary Public, State of
                Texas

              
                My
                  Commission Expires

                April
                  26, 2009

              

            	
              
Notary
              Public in and for the State of
              Texas

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      

       

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

      

      
        

      

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      C

    Personal
      Property

    

    PERSONAL
      PROPERTY

    (OWNED)

    

    
      	
              Equipment/Vessel

            	 	
              ID
                No.

            	 	
              Location

            	 	
              Year
                Built

            	 	
              Length

            	 	
              Depth

            	 	
              Width

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Masters
                Rig #1

              (Slotted
                Key Way Barge

            	 	
              No
                Hull #

            	 	 	 	
              2005

            	 	
              200’

            	 	
              3’

            	 	
              53’

            
	
              Generator

            	 	
              Inline
                6 Cyl Detroit 200 HP

            	 	 	 	 	 	 	 	 	 	 
	
              Generator

            	 	
              Kubota
                2 Cyl 20 HP

            	 	 	 	 	 	 	 	 	 	 
	
              Rig

            	 	
              12V
                71 Detroit 450 HP

            	 	 	 	 	 	 	 	 	 	 
	
              Pump

            	 	
              8V
                71 Detroit 300 HP

            	 	 	 	 	 	 	 	 	 	 
	
              Mixing
                Pump

            	 	
              Inline
                4 Cyl CAT 100 HP

            	 	 	 	 	 	 	 	 	 	 
	
              Blending
                Pump

            	 	
              Inline
                4 CYl Deutz 50 HP

            	 	 	 	 	 	 	 	 	 	 
	
              Manitowoc
                (30 ton) Crane

            	 	
              Inline
                4 Cycl Detroit 150 HP

            	 	 	 	 	 	 	 	 	 	 
	
              Miss
                Tracy

            	 	
              LAFCO1224

            	 	
              Oak
                Island

            	 	
              1974

            	 	
              29’

            	 	
              3”

            	 	
              10”

            
	
              Miss
                Susie

            	 	
              JBC19893G495

            	 	 	 	
              1994

            	 	
              18’

            	 	
              1”

            	 	
              6”

            
	
              Miss
                Rhea

            	 	
              1138953

            	 	
              Oak
                Island

            	 	
              1972

            	 	
              39’

            	 	
              6.5”

            	 	
              14”

            
	
              Airboat

            	 	
              MPH00196B494

            	 	
              Oak
                Island

            	 	
              1994

            	 	
              15’

            	 	
              0

            	 	
              8”

            
	
              Kabota
                Tractor 8200

            	 	 	 	
              Pt.
                Barrow

            	 	 	 	 	 	 	 	 
	
              Kabota
                Tractor B21

            	 	 	 	
              Goat
                Island

            	 	 	 	 	 	 	 	 
	
              Welding
                Machines (2)

            	 	 	 	
              Oak
                Island

            	 	 	 	 	 	 	 	 
	
              Air
                Compressors (2)

            	 	 	 	
              Oak
                Island

            	 	 	 	 	 	 	 	 
	
              1998
                Chevrolet S-10 Pickup Truck

            	 	
              1GCCS14XXW8213584

            	 	
              Pt.

              Barrow

            	 	 	 	 	 	 	 	 
	
              2006
                Ford F150 Pickup Truck

            	 	
              1FTPW145X6KB15212

            	 	
              Pt.

              Barrow

            	 	 	 	 	 	 	 	 
	
              2006
                Ford F350 Pickup Truck

            	 	
              1FTWW31P96ED61003

            	 	
              Pt.

              Barrow

            	 	 	 	 	 	 	 	 
	
              Cat
                398 - 

              Engine
                G398 A-51

              Compressor
                Chicago Pneumatiac Size 6FE Frame

            	 	
               

              73B1282P

              82210PPNt1000

            	 	
              A-Lease

            	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      Exhibit
        C

      Personal
        Property

    

    

    PERSONAL
      PROPERTY

    (LEASED)

    

    
      	
              Equipment/Vessel

            	 	
              Location.

            	 	
              Lessor/Term

            	 	
              Year
                Built

            	 	
              Length

            	 	
              Depth

            	 	
              Width

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Taylor
                Forklift

            	 	
              Oak
                Island

            	 	
              Paul’s
                Rentals

              (monthly)

            	 	 	 	 	 	 	 	 
	
              Cat.
                Forklift

            	 	
              Oak
                Island

            	 	
              Paul’s
                Rentals

              (monthly)

            	 	 	 	 	 	 	 	 
	
              Roanoke
                Forklift

            	 	
              Pt.
                Barrow

            	 	
              Paul’s
                Rentals

              (monthly)

            	 	 	 	 	 	 	 	 
	
              Carry
                Deck Crane

            	 	
              Pt.
                Barrow

            	 	
              Paul’s
                Rentals

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Mahindra
                Tractor

            	 	
              Pt.
                Barrow

            	 	
              Paul’s
                Rentals

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Case
                Tractor

            	 	
              Pt.
                Barrow

            	 	
              Paul’s
                Rentals

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Masters
                Meteor (Crew Boat)

            	 	
              Oak
                Island

            	 	
              Marine
                Transportation

              (Monthly)

            	 	
              2004

            	 	
              27’

            	 	
              48”
                

            	 	
              10”

            
	
              M/V
                Carp (Crew Boat)

            	 	
              Oak
                Island

            	 	
              Marine
                Transportation

              (Monthly)

            	 	
              1984

            	 	
              29’

            	 	
              48”

            	 	
              10”

            
	
              Audrey
                (Crew Boat)

            	 	
              Oak
                Island

            	 	
              Marine
                Transportation

              (Monthly)

            	 	
              1971

            	 	
              28’

            	 	
              2’

            	 	
              10’4”

            
	
              Who
                Dat

            	 	
              Oak

              Island

            	 	
              Marine

              Transportation

              (Monthly)

            	 	
              1970

            	 	
              28’

            	 	
              10.8’

            	 	
              3’

            
	
              Houma
                II

            	 	
              Oak

              Island

            	 	
              CWR
                Rental

              (Monthly)

            	 	
              1995

            	 	
              32’

            	 	
              10.3’

            	 	
              .5’

            
	
              Tiger
                II (Tug Boat)

            	 	
              Oak
                Island

            	 	
              Marine
                Towing & Salvage

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Barge
                #1

            	 	
              Oak
                Island

            	 	
              Marine
                Towing & Salvage

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              American
                Crane

            	 	
              Oak
                Island

            	 	
              Marine
                Towing & Salvage

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              F-250
                (Land Gauger)

            	 	
              Pt.
                Barrow

            	 	
              Enterprise

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Cat
                3516 Compressor

            	 	
              F-Lease

            	 	
              Universal

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Waukashau
                3521

            	 	
              C-Lease

            	 	
              Hanover

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Waukashau
                7042

            	 	
              Aggie
                Junction

            	 	
              JW
                Operating

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Cat
                3516

            	 	
              Aggie
                Junction

            	 	
              JW
                Operating

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Waukashau
                F18

            	 	
              Goat
                Island

            	 	
              Hanover

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Cat
                Compressor

            	 	
              Monroe
                City

            	 	
              Delta
                Compression

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              30’
                Gooseneck

            	 	 	 	
              Monthly

            	 	 	 	 	 	 	 	 
	
              6
                HP 33 Gallon Electric Air Compressor

            	 	 	 	
              Monthly

            	 	 	 	 	 	 	 	 
	
              50
                KW Generator Greenpower Canopy

            	 	 	 	
              Monthly

            	 	 	 	 	 	 	 	 
	
              16’
                Trailer

            	 	 	 	
              Paul’s
                Rentals

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              21’
                Trailer

            	 	 	 	
              Paul’s
                Rentals

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              Bushhog
                10’

            	 	 	 	
              Monthly

            	 	 	 	 	 	 	 	 
	
              Case
                backhoe-580 SuperL

            	 	 	 	
              Paul’s
                Rentals

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              1979
                Galion 15 ton crane

            	 	 	 	
              Monthly

            	 	 	 	 	 	 	 	 
	
              5000
                lb warehouse forklift

            	 	 	 	
              Paul’s
                Rentals

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              3”
                Pump

            	 	 	 	
              Paul’s
                Rentals

              (Monthly)

            	 	 	 	 	 	 	 	 
	
              2.5
                Power Swivel

            	 	 	 	
              Monthly

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      D

    Contracts

     

    
      
        	
                N
                  Point Bolivar

              	 	 
	 	 	 
	
                LC-103-0005

              	 	
                Exploration
                  Agrmt & JOA dtd 2/1/06 btwn Masters Resources LLC & Erskine Energy
                  LLC

              
	 	 	 
	
                LC-103-0014

              	 	
                Barge
                  Dock & Surface Use Agrmt dtd eff 9/22/06 btwn Masters Resources LLC,
                  St. Mary Land & Expl Co. & Erskine Energy Partners II LP LLC
                  covering barge dock facility at Goat Island, ST 342 (Expires
                  9/22/2011)

              
	 	 	 
	
                GC-103-0008

              	 	
                Production
                  Handling Agrmt dtd October 11, 2006 btwn St. Mary Land & Expl Co &
                  Masters Resources LLC (ST 342)

              
	 	 	 
	
                Dorado

              	 	 
	 	 	 
	
                LC-110-0001

              	 	
                E/A
                  & JOA dtd 4/21/05 btwn Davis Petroleum Corp. & Masters Resources
                  LLC covering ST 113/132/133/203

              
	 	 	 
	
                LC-110-0004

              	 	
                JOA
                  dtd 6/1/06 btwn Davis Petroleum Corp & Masters Resources LLC covering
                  ST 204 Unit

              
	 	 	 
	
                Fishers
                  Reef

              	 	 
	 	 	 
	
                LC-101-0016

              	 	
                Exploration
                  Agreement & JOA dtd 1/31/05 btwn Masters Resources LLC & Erskine
                  Energy Partners LP & Erskine Energy LLC covering State Tract 2-3A Unit
                  (M-96828 & M-96829)

              
	 	 	 
	
                LC-101-0023

              	 	
                Exploration
                  Agreement dtd 2/23/05 btwn Masters Resources LLC & Erskine Energy
                  Partners, LP & Erskine Energy LLC Covering State Tract
                  6-7A

              
	 	 	 
	
                LC-101-0024

              	 	
                Exploration
                  Agreement & O/A dtd 2/27/06 btwn Masters Resources LLC & Masters
                  Oil & Gas LLC & Erskine Energy Partners LP, Erskine Energy LLC
                  covering State Tract 5-8A

              
	 	 	
                Letter
                  Agreement dtd 6/20/05 btwn Masters Resources LLC & Palace Exploration
                  Co. etal

              
	 	 	
                Letter
                  Agreement dtd 7/11/05 btwn Masters Resources LLC, Erskine Energy
                  Partners
                  etal & Palace Exploration Co.

              
	 	 	 
	
                GC-101-0003

              	 	
                Gas
                  Transportation Contract dated 5/22/06 between Masters Resources
                  LLC and
                  Erskine Energy Partners II LP (ST 5-8A #1, #2, ST 6-7A #1
                  wells)

              
	 	 	 
	
                GC-101-0004

              	 	
                Crude
                  Oil Gathering Contract dated 5/22/06 between Masters Resources
                  LLC and
                  Erskine Energy Partners II LP

              
	 	 	
                (ST
                  5-8A #1, #2, ST 6-7A #1 wells)

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        Exhibit
          D

        Contracts

         

      

      
        	
                Red
                  Fish Reef

              	 	 
	 	 	 
	
                LC-102-0002

              	 	
                Term
                  Acreage Agreement dtd 4/19/01 btwn Masters Resources LLC &
                  Alcorn-Texana Resources et. al.

              
	
              	 	 

      

    

     

    Joint
      Operating Agreement dated May 1, 2006 by and between Davis Petroleum Corp.
      (‘Operator’) and Masters Resources, LLC, et. al. covering the Dolphin Prospect,
      being 800 acres in State Tracts 199 and 226 and the associated Area of Mutual
      Interest.

    

    Subject
      to one or more Amendments to Lease of varying dates providing for the addition
      to the lease of rework and/or shut-in gas well clauses.

    

    Subject
      to Pooling Agreement dated 10/6/98 covering 320 acres of State Tract 2-3A -
      3A
      (State Tract 2-3A Unit #1) recorded under File No. 98 395 730, Chambers Co.,
      TX

    

    Subject
      to Pooling Agreement dated 9/15/98 covering 320 acres being 110 acres of State
      Tract 2-3A -3A, 75 acres of State Tract 46 and 135 acres of State Tract 47
      (State Tract 46 No. 1) recorded under File No. 00 453 686.

    

    Subject
      to Pooling Agreement dated 12/11/01 covering 320 acres being 76 acres out of
      State Tract 1-4A, 152 acres out of State Tract 5-8A, 80 acres out of State
      Tract
      2-3A, 90 acres out of State Tract 2-3A, 40 acres out of State Tract 6-7A (State
      Tract 1-4A Unit).

    

    Subject
      to Participation and Farmout Agreement dated 3/6/00 between Vintage Petroleum
      Inc. and Davis Petroleum Corp.

    

    Subject
      to JOA dated 6/20/00 between Vintage Petroleum Inc., Palace Exploration Co.,
      Davis Petroleum Corp., Andex Resources LLC covering land within Pooled Unit
      for
      State Tract 1-4A No. 1 well (State Tract 1-4A No. 1 well).

    

    Subject
      to JOA dated 3/6/00 between Vintage Petroleum Inc., Palace Exploration Co.,
      Davis Petroleum Corp., and Andex Resources LLC covering lands within the Pooled
      Unit for State Tract 46 No. 1 (State Tract 46 No. 1 well).

    

    Subject
      to JOA dated 9/1/00 between Vintage Petroleum Inc., Davis Petroleum Corp.,
      Andex
      Resources LLC covering 250 acres within that portion of State Tract 9-12B,
      limited from the surface of the ground down to the stratigraphic equivalent
      of
      the total depth drilled in the Initial Test, except the Unitized formations
      established by Unit Agreement for the Fishers Reef Field Unit No. 1 but
      including any wellbore interest earned therein, as more specifically identified
      and defined in those certain Participation Farmout Agreements, as amended,
      between Vintage and each of the other parties (State Tract 9-12B #1
      well).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        Exhibit
          D

        Contracts

         

      

    

    Subject
      to call on oil and gas production in Assignment and Bill of Sale dated 5/1/91
      and recorded under File No. 91 146 152 from Exxon Corporation to Vintage
      Petroleum Inc. whereby Exxon Corporation reserves a preferential right to
      purchase oil and gas for a term of 21 years from assignment date.

    

    Possibly
      subject to two final judgments which are as follows: 1) Final Judgment dated
      7/24/74 in the case of State of Texas et al, Plaintiff vs. Exxon Corporation,
      Defendant in the District Court of Travis County, Texas, the 53rd
      Judicial
      District, Case No. 207789 and 2) Final Judgment dated 2/23/76 in the case of
      the
      State of Texas et al, Plaintiff vs. Exxon Corporation and Sun Oil Company
      (Delaware), Defendants, in the District Court of Travis County, Texas,
      53rd
      Judicial
      District, Case No. 238904.

    

    CEDAR
      POINT/HEMATITE FIELD

    

    Subject
      to the certain Operating Agreement dated 2/15/99 by and between Vintage
      Petroleum Inc. and MCNIC O & G Properties, Inc., Carrizo O&G Inc.,
      Century Offshore Management Corp. and Yuma Exploration and Production Company,
      Inc.

    

    Subject
      to that certain Participation Agreement by and between Yuma Exploration and
      Production Company, Inc., Vintage Petroleum Inc., Carrizo Oil & Gas Inc. and
      MCNIC

    Oil
&
      Gas Properties, Inc. dated 4/6/98.

    

    POINT
      BARROW FACILITY

    

    Subject
      to Saltwater Disposal Agreement dated 10/01/01 between Vintage Petroleum Inc.
      and Masters Resources LLC whereby Vintage will accept Masters’ water produced
      from Masters’ wells located in the Trinity Bay Field, Chambers Co., TX for
      disposal in its Point Barrow saltwater disposal facility located on the Point
      Barrow Facility so long as excess capacity in the Facility exists over and
      above
      that required by Vintage’s operations. The term of this Agreement has expired,
      but both parties continue to perform.

    

    Subject
      to Surface Lease and Easement dated 12/19/02 between Vintage Petroleum Inc.,
      Lessor, and Masters Resources LLC., Lessee wherein Lessor grants to Lessee
      a
      non-exclusive easement on and overt the Point Barrow Facility to Lessee for
      the
      purpose of operating and maintaining and constructing pipelines, facilities,
      power line or roads to and from the leased premises. Lessee owns equipment
      currently located on the leased premises, including 1) TB #1 - 1500 BBL -
      Bottled Gun Barrel; 2) TB #2 - 500 BBL - Settling Tank; 3)TB #3 - 1000 BBL
      -
      Sales Tank; 4) TB Heater; 5) Associated Flow lines. 

    

    Subject
      to all easements, rights of way, surface leases and all similar grants of
      surface use affecting this land whether recorded or unrecorded in addition
      to
      those specifically described in Deed and Bill of Sale dated 5/31/91 between
      Exxon Corporation, Grantor and Vintage Petroleum Inc., Grantee recorded under
      File No. 91 146 205, Chambers Co., TX.

    

    Subject
      to reservation of a 1/16th
      of
      8/8ths Non-participating Royalty Interest in favor of Estelle Ervine and J.
      E.
      Bishop, Individually and as Independent Executors of the Estate of J. E. Ervine,
      and their predecessors in interest.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        Exhibit
          D

        Contracts

         

      

    

    GAS
      CONTRACTS

    

    Crude
      Oil
      Purchase Contract Nos. 05-10247, 05-10248 and 06-55239 dated 08/08/05, 08/09/05
      and 12/29/06 by and between Masters Resources LLC, as Seller, and Pacific
      Marketing and Transportation LLC, as Buyer and as assigned to Plains Marketing
      LP due to merger on 11/15/06.

    

    Base
      Contract for Sale and Purchase of Natural Gas, as amended, dated 02/27/07 by
      and
      between Masters Resources, LLC, Seller and Petrocom Ventures Ltd., as
      Buyer.

    

    Gas
      Purchase Agreement, as amended, dated 03/01/07 by and between Masters Resources
      LLC, as Seller, and Kinder Morgan Tejas Pipeline L.P., as Buyer.

    

    Gas
      Gathering Agreement dated 07/01/98, as amended, between Masters Resources LLC
      and Gateway Offshore Pipeline Company for Galveston Bay State Tract 343
      Lease.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      E

    Excluded
      Oil & Gas Properties

     

    EXCLUDED
      ASSETS

    

    Masters
      Offshore LLC Properties

     

    All
      of
      the assets owned by Masters Offshore LLC, including but not limited to, a
      construction office facility located at Oak Island, Texas, including various
      tug
      boats, barges, vessels, construction equipment not expressly conveyed in the
      Purchase and Sale Agreement.

    

    Louisiana-Mississippi

     

    All
      acreage and wells owned by Masters Resources LLC and/or Masters Oil & Gas
      LLC located in Louisiana and Mississippi, including but not limited to the
      Bayou
      Sorrell-Green Jacket Prospect in Iberville Parish and the South Lake Charles
      Prospect in Calcasieu Parish, Louisiana.

    

    Trout
      Point Prospect-Chambers County, Texas

     

    All
      acreage and wells in the Trout Point Prospect being approximately 600 acres
      in
      the Edward T. Branch Survey, A-40 and 660 acres in Galveston Bay being the
      N/2
      of State Tract 198 all in Chambers County, Texas.

    

    Lions
      Field Prospect

     

    All
      acreage and wells located in the Lions Field Prospect being approximately 1590
      acres located in the J.M. Mancha Survey in Goliad County, Texas.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      F

    Excluded
      Personal Property

    

      EXCLUDED
        ASSETS OWNED BY MASTERS OFFSHORE LLC

    

    
      	
              Equipment/Vessel

            	 	
              ID
                No.

            	 	
              Location

            	 	
              Year
                Built

            	 	
              Length

            	 	
              Depth

            	 	
              Width

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Miss
                Georgia

            	 	
              1115314

            	 	 	 	
              1976

            	 	
              32’

            	 	
              6”

            	 	
              12”

            
	
              Bad
                Dog

            	 	 	 	 	 	
              1952

            	 	
              43’

            	 	
              6.1”

            	 	
              12.3”

            
	
              Opportunity
                (Jackup)

            	 	 	 	 	 	
              1978

            	 	
              63’

            	 	
              4.8”

            	 	
              24.1”

            
	
              Welding
                Machines (7)

            	 	 	 	 	 	 	 	 	 	 	 	 
	
              Barge
                #2

            	 	
              Marine
                Towing & Salvage (Monthly)

            	 	
              Oak
                Island

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]