Document:

LIMITED LIABILITY COMPANY MEMBERSIDP INTEREST PURCHASE AGREEMENT

LIMITED LIABILITY COMPANY MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

THIS LIMITED LIABILITY COMPANY MEMBERSHIP INTEREST PURCHASE
AGREEMENT, dated as of October to, 2008,
by and among Northcut Holdings, LLC, a limited liability company organized under
the laws of the state of Utah ("Seller"), Interline Resources Corporation, a
corporation organized under the laws of the state of Utah ("Buyer") and Northcut
Refining, LLC, a limited liability company organized under the laws of Wyoming
("Northcut"). 

WHEREAS, Buyer desires to purchase from Seller and Seller desires
to sell to Buyer membership interests representing 100% of Seller's membership
interests as described in the Operating Agreement of Northcut Refining, LLC,
dated September 13, 2007 ("LLC Agreement"), on the terms and subject to the
conditions set forth herein.

 

NOW, THEREFORE, the parties agree as follows: 

1.
Purchase and Sale of Membership Interests. 

     1.1 Sale and Purchase. At the Closing,
Buyer shall purchase from Seller, and Seller shall sell and sell to Buyer, a 17%
membership interest in Northcut (the "Membership Interests"), for the purchase
price of One Million Five Hundred Thousand and Noll 00 Dollars ($1,500,000.00)
(the "Purchase Price"), and subject to the terms and conditions of this
Agreement and on the basis of the representations, warranties, covenants and
agreements contained herein (the "Sale and Purchase"). 

     1.2 Closing. The Sale and Purchase shall
take place on or before January 31, 2009 at the offices of Shumway -Van Law,
Chtd., 3400 North Ashton Boulevard, Suite 100B, Lehi, Utah 84043 (which time and
place are designated as the "Closing"). If the Closing does not occur prior to
January 31, 2009 then this Agreement shall be automatically terminated. 

     1.3 Deliveries at Closing. At the
Closing, the parties shall, respectively, make the following simultaneous
deliveries: 

         
(a) Seller shall deliver to Buyer duly executed documents conveying the
Membership Interests to Buyer, duly executed on behalf of Seller, and a cross
receipt, duly executed on behalf of Seller, indicating a receipt of the Purchase
Price from Buyer. 

         
(b) Buyer shall deliver to Seller the Purchase
Price, by wire transfer of immediately available funds to an account or accounts
designated by Seller, and a cross receipt, duly executed on behalf of Buyer,
indicating receipt of the Membership Interests from Seller. 

         
(c) The parties shall execute and deliver such other documents as are customary
and reasonably necessary to consummate the transactions contemplated hereby.

2.
Representations and Warranties of Seller. Seller hereby represents and warrants
as follows: 

     2.1 Organization and Qualification.
Seller is a limited liability company duly organized and validly existing under
the laws of the State of Utah. 

     2.3 Authorization. As of the Closing, all
action on the part of Seller, its officers and directors necessary for the
authorization, execution and delivery of this Agreement, and the performance of
all obligations of Seller hereunder shall have been taken, and this Agreement,
assuming due execution by the parties hereto and thereto, will constitute valid
and legally binding obligations of Seller, enforceable in accordance with their
respective terms. 

     2.4 Valid Issuance of Membership
Interests. The Membership Interests, when sold and delivered in accordance with
the terms of this Agreement for the consideration expressed herein, shall be
duly and validly issued and will be free of restrictions on transfer directly or
indirectly created by Seller other than restrictions on transfer under this
Agreement and under applicable state and federal securities laws. 

     2.5 Litigation. There are no actions,
suits, proceedings or investigations pending or, to the best of Seller's
knowledge, threatened before any court, administrative agency or other
governmental body against Seller which questions the validity of this Agreement
or the right of Seller to enter into it, or to consummate the transactions
contemplated hereby. 

     2.6 Compliance with Other Instruments.
Seller is not in violation or default of any provision of its Articles of
Organization or the LLC Agreement, each as in effect immediately prior to the
Closing. 

     2.7 Agreements; Actions. Except for
agreements described herein and in the LLC Agreement, there are no agreements,
understandings or proposed transactions between Seller and any of its officers,
directors, affiliates, or any affiliate thereof. 

    
2.8 No Implied Representations. Except as expressly set forth herein, Seller
makes no representations or warranties of any kind to Buyer. 

3.
Representations and Warranties of Buyer and Northcut. Buyer and Northcut hereby
jointly and severally represent and walTant that: 

     3.1 Experience. Buyer and Northcut are
experienced in evaluating transactions such as those described in this Agreement
and are able to fend for themselves in such transactions, have such knowledge
and experience in financial and business matters that Buyer and Northcut are
capable of evaluating the merits and risks of their prospective purchase of
Seller's membership interest in Northcut, and have the ability to bear the
economic risks of the investment. 

    
3.2 Investment. Buyer is acquiring the Membership Interests for investment for
its own account and not with the view to, or for resale in connection with, any
distribution thereof. Buyer and Northcut understand that the Membership
Interests have not been registered under the Securities Act or the Utah
Securities Law, by reason of a specific exemption from the registration
provisions of the Securities Act and the Utah Securities Law, respectively,
which 

depends upon,
among other things, the bona fide nature of the investment intent as expressed
herein. Buyer and Northcut further represent that they do not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to any third person with respect to any of the Membership
Interests. Buyer and Northcut understand and acknowledge that the offering of
the Membership Interests pursuant to this Agreement will not be registered under
the Securities Act nor under the state securities laws on the ground that the
sale provided for in this Agreement and the issuance of securities hereunder is
exempt from the registration requirements of the Securities Act and any
applicable state securities laws. 

     3.4 No Public Market. Buyer and Northcut
understand that no public market now exists for the Membership Interests, and
that there may never be a public market for the Membership Interests. 

     3.6 Authorization. As of the Closing, all
action on the part of Buyer and Northcut, and their respective officers,
directors and partners necessary for the authorization, execution and delivery
of this Agreement and the LLC Agreement and the performance of all obligations
of Buyer and Northcut hereunder and there under shall have been taken, and this
Agreement and the LLC Agreement, assuming due execution by the parties hereto
and thereto, constitute valid and legally binding obligations of Buyer and
Northcut, enforceable in accordance with their respective terms. 

     3.7 Compliance with Other Instruments.
Neither Buyer nor Northcut is in violation or default of any provision of its
articles of organization or other organizational documents, as applicable, each
as in effect immediately prior to the Closing, except for such failures as would
not be reasonably expected to materially adversely effect the ability of Buyer
and Northcut to perform their respective obligations under this Agreement (a
"Buyer Material Adverse Effect"). Neither Buyer nor Northcut is in violation or
default of any provision of any material instrument, mortgage, deed of trust,
loan, contract, commitment, judgment, decree, order or obligation to which it is
a party or by which it or any of its properties or assets are bound which would
reasonably be expected to have a Buyer Material Adverse Effect. To the best of
its knowledge, neither Buyer nor Northcut is in violation or default of any
provision of any federal, state or local statute, rule or governmental
regulation which would reasonably be expected to have a Buyer Material Adverse
Effect. The execution, delivery and performance of and compliance with this
Agreement and the LLC Agreement will not result in any such violation, be in
conflict with or constitute, with or without the passage of time or giving of
notice, a default under any such provision, require any consent or waiver under
any such provision (other than any consents or waivers that have been obtained),
or result in the creation of any mortgage, pledge, lien, encumbrance or charge
upon any of the properties or assets of Buyer or Northcut pursuant to any such
provision. 

    
3.8 Accredited Investor. Each of Buyer and Northcut is an "accredited investor"
as defined in Rule 501 of Regulation D as promulgated by the Securities and
Exchange Commission under the Securities Act and shall submit to Seller such
further assurances of such status as may be reasonably requested by Seller. For
state securities law purposes, the principal address of both Buyer and Northcut
is 160 W. Canyon Crest Rd., Alpine, Utah 84004. 

 

4. Covenants.

    
4.1 Confidentiality. Seller, Buyer and Northcut, and their respective officers,
directors, partners and affiliates, agree to keep the terms and conditions of
this Agreement and the transactions contemplated hereby confidential, and agree
not to disclose to any party not a party to this Agreement or the LLC Agreement
any of the terms hereof, except as may be required by applicable law. 

 

5.
Miscellaneous. 

    
5.1 Governing Law. This Agreement shall be governed in all respects by the laws
of the State of Utah, without regard to any provisions thereof relating to
conflicts of laws among different jurisdictions. 

    
5.2 Survival. The representations and warranties made herein shall survive the
Closing for a period of one year, whereupon they shall cease and be of no
further force and effect. 

    
5.3 Successors and Assigns. Except as otherwise provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors and administrators of the parties hereto; provided,
however, that the rights of Buyer to purchase the Membership Interests shall not
be assignable without the consent of Seller. This Agreement shall not be
construed so as to confer any right or benefit on any party not a patty hereto,
other than their respective successors, assigns, heirs, executors and
administrators. 

    
5.4 Entire Agreement; Amendment. This Agreement and the other documents
delivered pursuant hereto constitute the full and entire understanding and
agreement among the parties with regard to the subjects hereof and thereof and
supersedes all prior agreements and understandings relating thereto. Neither
this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the patty against whom
enforcement of any such amendment, waiver, discharge or termination is sought.

    
5.5 Notices, Etc. All notices under this Agreement shall be sufficiently given
for all purposes if made in writing and delivered personally, sent by documented
overnight delivery service or, to the extent receipt is confirmed, facsimile or
other electronic transmission, to following addresses and numbers. 

Notices to
Seller shall be addressed to: 

Northcut
Holdings, LLC 486 West 50 North American Fork, Utah 84003 

with a copy to:

Shumway -Van
Law, Chtd. 3400 North Ashton Boulevard, Suite 100B Lehi, Utah 84043 Telephone:
(801) 216-8885 

Facsimile: (801)
216-8889 Attn: Douglas J. Shumway, Esq. 

or at
such other address and to the attention to such other person as Seller may
designate by written notice to Buyer and Northcut. Notices to Buyer and Northcut
shall be addressed to: 

160 W. Canyon
Crest Rd. Alpine, Utah 84004 Telephone: (801) 756-3031 Fax: (801) 756-8843 Attn:
Michael Williams 

or at
such other address and to the attention of such other person as Buyer and
Northcut may designate by written notice to Seller. 

     5.6 Delays or Omissions. No delay or
omission to exercise any right, power or remedy accruing to any party upon any
breach or default of the other party under this Agreement shall impair any such
right, power or remedy of such first party, nor shall it be construed to be a
waiver of any such breach or default, or an acquiescence therein, or of or in
any similar breach or default thereafter
occurring; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any
holder of any breach or default under this Agreement, or any waiver on the part
of any holder of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such
writing or as provided in this Agreement. 

     5.7 Expenses. Seller, Buyer and Northcut
shall each bear the expenses and legal fees incurred on their own behalf with
respect to this Agreement and the transactions contemplated hereby. 

     5.8 Counterparts. This Agreement may be
executed in any number of counterparts, each of which may be executed by only
one party, which shall be enforceable against the parties actually executing
such counterparts, and all of which together shall constitute one instrument.

     5.9 Severability; Enforcement. In the
event that any provision of this Agreement becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement
shall continue in full force and effect without such provision; provided that no
such severability shall be effective if it materially changes the economic
benefit of this Agreement to any party. The parties hereto agree that
irreparable damage for which money damages would not be an adequate remedy would
occur in the event that any of the provision of this Agreement were not
performed in accordance with its specific terms or was otherwise breached. It is
accordingly agreed that, in addition to any other remedies a party may have at
law or equity, the parties shall be entitled to seek an injunction of
injunctions to prevent such breached of this Agreement and to enforce
specifically the terms hereof.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date first above
written. 

INTERLINE
RESOURCES CORPORATION

 NORTHCUT
HOLDINGS, LLC 

,/

Signature: /s/ Michael
Williams                                         
Signature: /s/ Michael R. Burke

By:  Michael Williams,
President                                       
By: Michael R. Burke, ManagerFORBEARANCE AGREEMENT

FORBEARANCE AGREEMENT 

 

IN CONSIDERATION
of the covenants and conditions hereafter expressed, this Forbearance Agreement
is entered into between Private Capital Group, Inc., a Utah corporation ("Lender"), NorthCut Refining,
LLC, a Wyoming limited liability company ("Borrower"), Interline Resources
Corporation, a Utah corporation ("Guarantor"), and Michael R Williams (as an
individual "Investor"). The parties represent and agree as follows: 

 

I.
REPRESENTATIONS

 

A. Borrower and
Guarantor executed and delivered to Lender a Construction Loan Agreement, Deeds
of Trust, All Assets Security Agreement, Guaranty Agreement, Promissory Note and
other loan documents related to a loan ("Loan") in the original amount of
$11,500,000.00 (collectively "Loan Documents"), all dated on or about September
10, 2007. The Deeds of Trust were amended on April 30, 2008. Interline Resources
Corporation ("Interline") executed and delivered to Lender Deeds of Trust also
dated September 10,2007 and amended April 30, 2008. The Loan Documents were
amended to increase the amount available to $12,700,000.00. 

 

B. The loan has
been fully drawn. 

 

C. Michael R.
Williams is an Investor in Borrower and Guarantor, either directly or
indirectly. 

 

D. On July 14,
2008, Lender declared a default on the Loan. 

 

E. The principal
balance due is $12,700,000.00 as of July 31,2008, together with interest, costs,
fees and attorneys' fees. 

 

F. One or more
Events of Default (as defined in the Loan Documents) have occurred and are
continuing under the Loan because Borrower has failed to make payment of either
principal or interest when due on the Note. 

 

G. Lender had the
present right, pursuant to the terms of the Loan, to declare the indebtedness
evidenced by the Loan Documents to be immediately due and payable, to collect
the indebtedness due to Lender, to make demand upon the Guarantor to honor its
Guaranty, and to exercise any legal or equitable remedies available to Lender
against the security, Borrower, or the Guarantor. 

 

H. Borrower
requested on August 4, 2008 that Lender forbear, for a period of time, from
exercising its respective rights and remedies available at law, in equity, by
agreement, or otherwise as a result of the Event of Default. 

 

I.
Borrower and
Lender entered into a forbearance agreement on August 6, 2008 and pursuant to
such agreement, Borrower or Guarantor were required to pay in full all
employees, mechanics, materialmen and all persons or entities owed money related
to the Property (as defined in the Loan Documents) by September 8,2008.

 

J. Borrower failed
to satisfy the tenns of the forbearance agreement dated August 6, 2008 and
therefore Lender had the present right, pursuant to the terms of the Loan, to
declare the indebtedness evidenced by the Loan Documents to be immediately due
and payable, to collect the indebtedness due to Lender, to make demand upon the
Guarantor to honor its Guaranty, and to exercise any legal or equitable remedies
available to Lender against the security, Borrower, or the Guarantor. 

 

K. Borrower again
requested on September 3, 2008 that Lender forbear, for a period of time, from
exercising its respective rights and remedies available at law, in equity, by
agreement, or otherwise as a result of the Event of Default. 

 

L.
Borrower and Lender
entered into a forbearance agreement on September 3, 2008 and pursuant to such
agreement, Borrower or Guarantor were required to: (i) pay in full all employees,
mechanics, materialmen and all persons or entities owed money related to the
Property (as defined in the Loan Documents) by September 5, 2008; and (ii) cause
crude oil to be delivered to the crude oil refinery located on the Property and
refined thereon, on or before October 1,2008. 

 

M. Borrower and
Guarantor were unable to pay the required amounts on or before September 5,
2008, and have failed to cause crude oil to be delivered to the crude oil
refinery located on the Property and refined thereon, on or before October 1,
2008, and therefore have requested that Lender forbear again, for a period of
time, from exercising its respective rights and remedies available at law, in
equity, by agreement, or otherwise as a result of the Event of Default. 

 

N. Upon the terms
and conditions contained herein, Lender is prepared, for a limited period of
time, to forbear from the exercise of such rights and remedies. 

 

O. The forbearance
by Lender from the current exercise of its respective rights and remedies, as
described in this Forbearance Agreement, shall result in a direct and tangible
benefit to Borrower, Guarantor and Investor. 

II. BORROWER'S,
GUARANTOR'S AND INVESTORS' ACKNOWLEDGMENTS 

A.
Borrower, Guarantor and Investor
acknowledge that: (i) material Events of Default exists under the
Loan in that Borrower has failed to cure the defaults and comply with the prior
agreements, and (ii) Guarantor has also failed to cure the same defaults and
honor its Guaranty. 

B. Borrower,
Guarantor and Investor acknowledge that: (i) material Events of Default exists
under the preceding forbearance agreements in that Borrower has failed to comply
with the terms of the prior agreements and therefore all prior agreements and
the terms contained therein are superseded by the terms contained herein. 

C. Timely, adequate,
and proper notice of the occurrence of such Event of Default under the Loan has
been given by Lender and received by Borrower, Guarantor and Investor (or
Borrower, Guarantor and Investor waive any requirements of notice). 

 

D. The Event of
Default is continuing and has not been timely cured by Borrower or Guarantor.

E. Lender has not
waived its respective rights and remedies with respect to the Loan. 

F. Lender has the present right to accelerate the
principal balance due and owing on the Loan. 

G. Borrower,
Guarantor and Investor acknowledge that Lender shall record notices of default
and deliver them to all parties required by statute and this Agreement in no way
shall restrict Lender from taking such actions. 

H. Borrower's and
Guarantor's liabilities are in full force and effect. 

I. Borrower,
Guarantor and Investor acknowledge that the current fair market value of the
Property (as such term is defined in the Loan Documents) is approximately Twenty
Million and Noll 00 Dollars ($20,000,000.00). 

2

FORBEARANCE BY
LENDER 

Pursuant
to the request of Borrower and Guarantor, Lender agrees to forbear from the
exercise of its rights and remedies under the Loan to foreclose the security, at
law or in equity or otherwise available to Lender as a result of the Event of
Default under the Loan, excepting Lender's right to record a notice of default
which is expressly authorized hereunder, until the earliest to occur of the
following times: 

1. January 30, 2009; 

2. The occurrence
of any default under this Forbearance Agreement and the failure of Borrower or
Guarantor to timely cure any default after any written notice; 

3. The occurrence
of any Event of Default under the Loan (other than continuation of Events of
Default as described in the paragraph entitled "Representations") and the
failure of Borrower or Guarantor to timely cure any default after written
notice. 

From the
execution of this Forbearance Agreement to the earliest of the above dates is
referred to as the "Forbearance Period." Notwithstanding anything to the
contrary contained herein, Late Fees shall be charged retroactively back to the
date any payments became due if any Event of Default occurs hereunder or under
the Loan. 

B. During the
Forbearance Period, except to declare any default under this Forbearance
Agreement and to protect the Lender's security interest, neither Lender, nor
Borrower, nor Guarantor shall take any action toward each other to file any
lawsuit or arbitration proceedings to enforce the rights under the Loan. 

C. During the
Forbearance Period and as a condition to the continuation of the forbearance,
Borrower and Guarantor covenant and agree as follows: 

3 

1. Borrower and
Guarantor shall provide copies of invoices paid along with all supporting
documents including copies of checks, credit receipts or fund transfer
notifications related to any use of any funds received by Borrower or Guarantor.
Borrower or Guarantor shall provide this financial information each Friday
commencing on October 17, 2008 the last report being required on January 23,
2008. 

2. Borrower or
Guarantor shall pay in full all employees, insurance premiums and other costs
associated with the operation and maintenance of the Property by October 17,
2008. Further, Borrower or Guarantor shall continue to pay in full all
employees, mechanics, materialmen and all persons or entities owed money related
to the Property during the term of this Forbearance Agreement. 

3. Borrower or
Guarantor shall cause crude oil to be delivered to the crude oil refinery
located on the Property and refined thereon, on or before October 17,2008. 

4. Borrower shall
make payments to Lender of at least Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00) on December 1, 2008 and again on January 1, 2009. 

5. Lender shall have
access to inspect, audit, and copy Borrower's and Guarantor's records, files,
and books and to examine and inspect collateral granted as security for the
Loan. Borrower shall reimburse Lender for all of Lender's out-of-pocket expenses
associated with its audit, inspection, and examination. 

IV. MISCELLANEOUS

No amendment,
modification, termination, or waiver of any provision of this Forbearance
Agreement shall be effective unless the same shall be in writing and signed by
both parties. 

A. Notices. All
notices and other communication provided for under this Forbearance Agreement
shall be in writing and mailed, transmitted, or delivered to the respective
party at the address shown below their respective signature to this Forbearance
Agreement or at such other addresses as should be designated by such parties in
a written notice to the other party complying with the delivery terms of this
section. 

B.
No Waiver. No failure or delay on the
part of Lender in exercising any right, power or remedy hereunder shall operate
as a waiver. 

C. Costs,
Expenses, and Taxes. Borrower agrees to pay, upon demand, all costs and expenses
incurred by Lender in connection with the preparation, execution, delivery,
filing, and administration of this Forbearance Agreement and any amendment,
modification, or supplement to this Forbearance Agreement including, without
limitation, the fees and out-of-pocket expenses of counsel for Lender incurred
in connection with advising Lender as to its rights and responsibilities
hereunder. If Borrower is not able to timely pay these expenses, Borrower
authorizes Lender to add such expenses to the principal balance due and owing
under the Loan. 

D. No Lien
Termination Without Release. In recognition of Lender's right to have all of its
attorneys' fees and expenses incurred in connection with this Forbearance
Agreement 

4

secured by the
collateral, notwithstanding payment in full of obligations by Borrower to
Lender, Lender shall not be required to record any termination or satisfaction
of any of its liens on the collateral for the Loan unless and until Borrower,
Guarantor and Investor have executed and delivered to Lender general releases
releasing Lender from any liability that is connected to the credit extended
hereunder. 

E. Disclaimer for
Negligence. Lender shall not be liable for any claims, demands, losses or
damages, made or claimed, suffered by Borrower, Guarantor or Investor, except as
such may arise through or could be caused by Lender's gross negligence or
willful misconduct. 

F. Limitation of
Consequential Damages. No party shall be responsible for lost profits of the
other arising from any breach of contract, tort, or for any wrong arising from
the negotiation ofthis Forbearance Agreement or under the Loan Documents. 

G. Notices to
Third Party. Lender shall have the right, at any time, to give any affiliated
company, guarantor, participant or subordinated creditor notice of any
information or act relating to this Forbearance Agreement or the underlying Loan
that Lender may deem necessary or desirable in Lender's sole discretion
including, without limitation, Borrower's financial condition. 

H. Negotiations
with Purchasers of the Security. As a result of Borrower's, Guarantor's and
Investor' financial condition, Lender may inquire or may receive inquiries
concerning the security for the Loan. Borrower hereby authorizes and directs
Lender to convey any information about the Loan and to discuss any information
Lender has concerning the collateral for the Loan. Borrower, Guarantor and
Investor hereby state that it is in their best interest that Lender openly
discuss the Loan and the collateral and, therefore, they hereby waive any claim
that they may have against Lender and release it from any liability as a result
of discussions concerning the Loan or Borrower's, Guarantor's or Investor'
financial condition or the collateral for the Loan. 

I. Information to Participants. Lender may furnish any
financial or other information concerning Borrower or any of its subsidiaries to
any participant. 

J. Governing Law.
This Forbearance Agreement shall be governed and construed in accordance with
the laws of the State of Utah. 

K.
Jurisdiction.
Borrower, Guarantor and Investor submit themselves and their property to the
jurisdiction and venue of the Third Judicial District Court in and for Salt Lake
County, State of Utah. 

L. Waiver of Jury
Trial. Borrower, Guarantor and Investor waive any right to trial by jury and
consent to the granting of such legal and equitable relief as being deemed
reasonable by a judge of the Third Judicial District Court in and for Salt Lake
County, State of Utah. 

M. Rule of
Construction. This Forbearance Agreement has been fully reviewed and negotiated
between the parties and no uncertainty or ambiguity in any term or provision of
this Forbearance Agreement shall be construed strictly against Lender, Borrower,
Guarantor or Investor under any rule of construction or otherwise. 

5

N. Operating
Agreement. Borrower, Guarantor and Investor waive any rights they may have under
the Articles of Organization or Operating Agreement of Borrower to require
Lender or its participants to provide any capital or pay any expenses to or for
Borrower. 

O. Counterparts.
This Forbearance Agreement may be executed in multiple counterparts, each of
which shall be original, and all of which, taken together, shall constitute but
one and the same agreement among the parties, successors, and assigns. This
Forbearance Agreement shall be binding upon the parties, successors, and
assigns. The parties agree to accept facsimile and electronic signatures as
originals. 

P. Time is of
the Essence. Time is of the essence under this Forbearance Agreement. 

Q. No
Partnership. The parties do not by this Agreement, in any way or for any
purpose, become partners or joint venture’s of each other in the conduct of
their respective businesses or otherwise. 

R. Severability.
If any provision of this Agreement shall be held to be invalid or unenforceable
for any reason, the remaining provisions shall continue to be valid and
enforceable. If a court finds that any provision of this Agreement is invalid or
unenforceable, but that by limiting such provision it would become valid and
enforceable, then such provision shall be deemed to be written, construed, and
enforced as so limited. 

S. Exhibits.
Each exhibit attached to and referred to in this Agreement is hereby
incorporated by reference as though set forth in full where referred to (by
letter or description) herein. 

T. Waiver of
Claims. Borrower, Guarantor and Investor hereby waive and release any known or
unknown claims, counterclaims, causes of action, or suits ("Claims") of any
kind, character, or nature whatsoever, fixed or contingent, which Borrower,
Guarantor or Investor may have or claim against Lender which may arise out of or
be connected with any acts of commission or omission by Lender existing or
occurring on or prior to the date of this Forbearance Agreement including,
without limitation, any Claims arising which are in any way related to the Loan,
collateral for the Loan, or the Guaranty, NorthCut Refining, LLC or the
operation thereof. This Section V Paragraph T shall survive the termination of
this Forbearance Agreement. 

 

(SIGNATURE PAGE TO FOLLOW) 

 

6 

IN WITNESS
WHEREOF, the parties hereto represent that this Forbearance Agreement was signed
by authority duly given this 10th
day of October, 2008. 

 

LENDER: 

PRIVATE CAPITAL
GROUP, INC., a Utah corporation 

Signature:
/s/ Jared L. Lucero

Name: Jared L.
Lucero, President Address: 486 West 50 North American Fork, Utah 84003

 

INVESTOR: 

MICHAEL
R. WILLIAMS,

 

BORROWER: 

NORTHCUT
REFINING, LLC, a Wyoming limited liability company 

Signature: /s/ Michael R.
Williams

Michael R.
Williams, President of Interline Resources Corporation, Manager of Borrower

Michael R. Burke,
Manager" of PCG Midstream, LLC, Manager of Borrower

 

Signature: /s/ Michael R.
Burke

Michael R. Burke,
Manager of Northcut Holdings, LLC, Manager of Borrower 

 

Signature: /s/
Michael R. Burke

Address: 160 West
Canyon Crest Alpine, Utah 84004 

 

GUARANTOR: 

INTERLINE
RESOURCES CORPORATION By:

Signature: /s/
Michael Williams 

By: Michael Williams, President

7

IN
WITNESS WHEREOF, the parties hereto represent that this Forbearance Agreement

was signed by
authority duly given this l0th day of
October, 2008. 

 

LENDER: BORROWER:

PRIVATE CAPITAL
GROUP, INC., a Utah 

NORTHCUT
REFINING, LLC, a Wyoming corporation limited liability company 

By: /s/ Jared L.
Lucero

By:
/s/ Michael R. Williams      

Name: Jared L. Lucero, President 

Michael
R. Williams, President of Interline Address: 486 West   50 North 

By:
/s/ Michael R. Burke

 

Michael R. Burke,
Manager of PCG Midstream, LLC, Manager of Borrower 

By: /s/ Michael R.
Burke

Michael R. Burke, Manager of Northcut
Holdings, LLC, Manager of Borrower

Address: 160 West Canyon Crest Alpine,
Utah 84004 

INVESTOR: 

GUARANTOR:

/s/  Michael
R. Williams

INTERLINE
RESOURCES CORPORATION

MICHAEL  R.
WILLIAMS, Individually

Address: 160 West
Canyon Crest

By:
/s/ Michael R. Williams

Alpine, Utah 

Michael
R. Williams, President

 

Address:
160 West Canyon Crest

Alpine,
Utah 84004

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