Document:

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		Exhibit 10.2

			

		

		
			SECURITIES SUBSCRIPTION AGREEMENT

				

			

		

		
			This Securities Subscription Agreement is dated as of the 13th day of June, 2007 by and between the following parties:

				
SUBSCRIBER/PURCHASER:                    China Properties Developments, Inc.
                                                                    89 Chang’an Middle Rd.
                                                                    Yangming International Tower, Flrs. 26/27
                                                                    Xi’an, China

				
SELLER/COMPANY:                                Shaanxi Xinyuan Real Estate Co. Ltd
                                                                    89 Chang’an Middle Rd.
                                                                    Yangming International Tower, Flrs. 26/27
                                                                    Xi’an, China

				

				The parties hereto hereby agree as follows:

				

				1.       Sale and Purchase.  Shaanxi Xinyuan Real Estate Co Ltd, (“Seller” or “Company”) a People’s Republic of China limited liability corporation, has offered for sale and China Properties Developments, Inc.,  (the “Subscriber” or “Purchaser”) hereby agrees to subscribe for and purchase new treasury shares of the Company such that the Purchaser will own 90% of the issued and outstanding share capital of the Company, in the form of Registered Capital after the purchase has been completed (the “Purchased Shares”).   The purchase price for the Purchased Shares shall be RMB 230,000,000.00 (the “Purchase Price”) which shall be paid by the Purchaser to the Seller at closing.  It is agreed that the obligation of the Purchaser to purchase the Purchased Shares is subject to the Purchaser obtaining equity or debt financing, on terms which are acceptable to the Purchaser at its sole discretion, and  the net proceeds realized by the Purchaser therefrom is no less than the full amount of the Purchase Price.   The closing of the purchase and sale of the Purchased Shares shall take place as soon as reasonably possible following the completion by the Purchaser of the aforesaid financing.  At the closing, the Purchaser shall deliver  to the Company the full amount of the Purchase Price by check or wire transfer of funds for the Purchased Shares and the Company shall issue the Purchased Shares to the Purchaser which shall equal to 90% issued and outstanding Registered Capital of the Seller.

				
Deliver Cheque to Seller:                              Shaanxi Xinyuan Real Estate Co. Ltd.
                                                                    89 Chang’an Middle Rd.,
                                                                    Yangming International Tower, Flrs. 26/27
                                                                    Xi’an, China

				
Number of Shares Subscribed:                      90% of the issued and outstanding share capital of Shaanxi Real
                                                                    Estate Co. Ltd.

				
Deliver Shares to Subscriber:                        China Properties Developments, Inc.
                                                                    89 Chang’an Middle Rd.,
                                                                    Yangming International Tower, Flrs. 26/27
                                                                    Xi’an, China

				

				2.       Representations and Warranties of Purchaser. In order to induce the Company to accept this subscription, the Purchaser hereby represents and warrants to, and covenants with, the Company as follows:

				

				          A.       The Purchaser is  is duly organized, validly existing and in good standing under the laws of the State of Colorado.

				

				

				

				

				

			

		

		
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			          B.       The Purchaser has had the opportunity to ask and receive answers to any and all questions the Purchaser had with respect to the Company, its business, management and current financial condition.

			

			          C.       Except as set forth in this Agreement, in entering into this transaction, no representations or warranties have been made to the Purchaser by the Company, or any agent, employee or affiliate of the Company.  

			

			          D.       The Purchaser has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder; and this Agreement is a legally binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms.

			

			3.       Representations of the Company.  The Company represents and warrants:

			

			          A.       The Company is in full compliance, to the extent applicable, with all obligations and is duly organized, validly existing and in good standing under the laws of the People’s Republic of China and  has the requisite corporate power and authority to carry on its business as now being conducted. 

			

			          B.       The execution, delivery and performance of this Agreement and the consummation of the issuance of the shares and the transactions contemplated by this Agreement are within the Company's corporate powers and have been duly authorized by all necessary corporate and stockholder action on behalf of the Company.

			

			          C.       At the earliest possible time but no later than 75 days following the closing of the purchase and sale of the Purchased Shares, the Company shall deliver to the Purchaser audited and such other financial statements of the Company which shall be in form and substance such that Purchaser will be fully compliant with all reporting obligations imposed upon it by the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.  All of the financial statements to be delivered pursuant hereto will be complete and accurate and present fairly the financial position of the Company and the results of its operations and changes in its financial positions as of the dates and for the periods indicated as being covered thereby.  Such financial statement will not contain any untrue statement of a material  fact or omit to state any material fact required to be stated therein or necessary to make the statement therein in  light of the circumstances under which they were made, not misleading.

			

			4.       Non-Binding Until Acceptance.  The Purchaser understands that this subscription is not binding  upon the Company until the Company accepts it, which acceptance is at the sole discretion of the Company and is to be evidenced by the Company's execution of this Agreement where indicated. This Agreement shall be null and void if the Company does not accept it as aforesaid. Upon acceptance by the Company and receipt of the total Purchase Price, the Company will issue one or more certificates for the full number of Purchased Shares.

			

			5.       Non-Assignability.   Neither this Agreement nor any of the rights of the Purchaser hereunder may be transferred or assigned by the Purchaser.

			

			6.       Governing Law.   This Agreement will be construed and enforced in accordance with and governed by the laws of the People’s Republic of China. Each of the parties consents to the exclusive jurisdiction of the federal courts whose districts encompass any part of the P.R.C. or the provincial courts of the Province of Shaanxi in connection with any dispute arising under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens, to the bringing of any such proceeding in such jurisdictions.

			

			7.       Termination.  This Agreement may be terminated by either of the parties hereto in the event that the 

			

			

			

			

		

		
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			closing hereunder has not occurred within 240 days of the signing of this Agreement, unless extended by the mutual written consent of the parties hereto.  In the event this Agreement is terminated, then this Agreement shall be of no further force or effect and neither party shall have any further obligations or liabilities hereunder.

			

			8.       Representation by Counsel.  Each of the parties hereto represents, warrants and covenants that it has had ample opportunity to consider entering into this Agreement and has had an opportunity to consult with counsel of its own choosing regarding this Agreement prior to executing the same.  The parties further agree that any rule that provides that an ambiguity within a document will be interpreted against the party drafting such document shall not apply.

			

			9.       Counterparts.  This Agreement may be executed by the parties hereto in one or more counterparts each of which shall be an original and all of which shall together constitute one and the same Agreement.

			

			

			

		

		
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			IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth below.

			

			

			China Properties Developments, Inc.

			(Subscriber/Purchaser)

			

			By: s/____________________

			       Ping’an Wu, President and Chief

			       Executive Officer

			

			Dated: June 13, 2007

				

			Address for Shareholder Records:          China Properties Developments, Inc.

			                                                              89 Chang’an Middle Rd.

			                                                              Yangming International Tower, Flrs. 26/27

			                                                              Xi’an, China

			

			Telephone Number:                                86 29 85257560

			

			Percentage Subscribed:                          New treasury shares equal to 90% Issued and outstanding share

			                                                              capital of Shaanxi Real Estate Co. Ltd.

			

			Purchase Price:                                       RMB 230,000,000.00

			

			

			This Securities Subscription Agreement is accepted this 13th day of June, 2007 by:

			

			

			Shaanxi Xinyuan Real Estate Co. Ltd.

			(Seller/Company)

			

			

			BY:      s/________________

			

			

			

			

			

			

			

			

			

			

			

			

			

		

		
			Page 4 of 4ex10_1.htm

    
      
        

      

      
        WORKING
          INTEREST PURCHASE AGREEMENT

      

      
        

      

      
        This
          agreement is entered into on this
          12th day
          of
          June, 2007 by and between Rabb Resources Limited, a Louisiana Corporation,
          Rabb
          Contracting Company, LLC, a Louisiana Corporation, and Claude L. Rabb,
          an
          individual, herein collectively referred to as “Assignor/Operator,” and
          Hyperdynamics Corporation, (a Delaware corporation herein also referred
          to as
          the “Parent Company”), HYD Resources Corporation, (a Texas Corporation and
          wholly owned subsidiary of Parent Company and also referred to herein as
          “HYDR”), and HYDR's wholly owned subsidiary, Trendsetter Production Company,
          (a
          Mississippi corporation also referred to as “Acquiring Company” and “TPC”),
          hereinafter the Parent Company, HYDR, a TPC are collectively referred to
          as
“Assignee”.

      

      
        

      

      
        WITNESSETH:

      

      
        

      

      
        WHEREAS,
          Assignor/Operator owns 100% of
          the working interest in those properties listed on Exhibit “B” attached hereto
          and made a part hereof; and Assignor/Operator and Assignee have come to
          an
          agreement whereby Assignee shall acquire 85% of the working interest of
          Assignor/Operator in said properties, and that said properties together
          with any
          new leases or properties shall be operated and developed pursuant to this
          agreements and related agreements; and

      

      
        

      

      
        WHEREAS,
          the parties are desirous that
          this agreement be formalized for purposes of particularizing all aspects
          of
          same;

      

      
        

      

      
        THEREFORE,
          KNOW ALL MEN BY THESE
          PRESENT that Assignor/Operator and Assignee do hereby agree as follows,
          to-wit:

      

      
        

      

      
        PROPERTIES
          AND RIGHTS TO BE ASSIGNED

      

      
        

      

      
        1.  That
          Assignor/Operator shall assign to Assignee 85% of all of Assignor/Operator’s working
          interest
          ownership in the producing wells, disposal wells and oil and gas leases
          described on Exhibit “B” attached hereto, together with a corresponding interest
          in any and all existing production and presently non-producing mineral
          leasehold
          acreage held by said production, all equipment (both surface and down-hole)
          utilized in the existing production activities (see Exhibit “C” attached hereto)
          and all contract rights involving access roads, disposal wells and any
          other
          property rights or incidents of ownership relating to or any way affecting
          the
          oil, gas and mineral leases and wells in question. All property and rights
          acquired by Assignee hereunder are also referred to as the “Acquired Property”,
          herein.

      

      
        

      

      
        2.  It
          is understood by and between the parties that the aforesaid working interest
          ownership which is to be transferred by Assignor/Operator to Assignee shall
          be
          burdened by royalties and/or overriding royalties totaling no more than
          25% of
          production with the exception of the “Peabody LBM” lease which has a total
          royalty and overriding royalty burden of no more than 27.46%. Upon execution
          of
          this agreement, if there are royalties less than 25% in any of the properties,
          the royalties for those properties will not be adjusted to or re-traded
          to 25%
          but shall remain at the lower amount.

      

      
        

      

      
        3.  The
          actual assignment Assignor/Operator shall execute in favor of Assignee
          shall
          warrant title insofar as acts of Assignor/Operator are concerned, and
          consequently the properties shall be sold subject to no liens and/or
          encumbrances. Assignor/Operator shall provide Assignee on July 1, 2007
          with a
          title opinion setting forth and disclosing the record ownership of the
          wells and
          leases in question.

      

      
        

      

      
        OPERATOR
          DESIGNATION

      

      
        

      

      
        4.  Assignor/Operator
          shall retain its status as the formally designated operator of the wells,
          leases, properties and contract rights affected by this assignment along
          with
          additional property acquired pursuant to and in accordance with the terms
          of
          this agreement. Moreover, an Operating Agreement and Accounting Procedure
          for
          Joint Operations containing standard and regionally acceptable provisions
          shall
          be negotiated and executed by the parties on or before July 01,
          2007.

      

      
         

      

      
        
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      CLOSING
        AND CONSIDERATION

      
        

      

      
        5.  The
          closing of this agreement occurs when it is signed by all parties (“closing”).
          The assignment of the properties and rights contemplated herein shall occur
          on
          July 1, 2007. All assignment documents shall be held by Assignor/Operator’s attorney
          and
          delivered to Assignee simultaneously with the final payment of the total
          purchase price as contemplated in Paragraphs 6 and 7 of this
          agreement.

      

      
        

      

      
        6.  The
          consideration to be paid by Assignee to Assignor/Operator at closing shall
          be
          the sum of $100,000 in cash together with the transfer to Claude L. Rabb
          of
          100,000 shares of the common stock of Hyperdynamics Corporation, the subsequent
          transfer of which shall be restricted pursuant to SEC rule 144 for unregistered
          stock. This restriction shall be noted on the stock certificate. Moreover,
          the
          15 % working interest which will be retained by Assignor/Operator in the
          Acquired Property shall be a fully carried working interest and consequently
          any
          and all operating costs associated with the existing production shall be
          the
          responsibility of Assignee. Consequently, no operating expenditures of
          any kind
          will be applied to or deducted from the production revenues attributable
          to the
          15% retained working interest. Furthermore, no costs of any kind arising
          from
          drilling operations will be attributable to the 15% working interest. Drilling
          operations are defined as all activities directly involved in the drilling,
          completing, and/or abandonment of new wells up to the point of production
          capability, whether or not the well actually produces hydrocarbons. Furthermore,
          the 15% working interest ownership of Assignor/Operator in any new wells
          drilled
          on the conveyed leases or on new oil, gas and mineral leases shall be
          calculated, managed and accounted for in parallel to Acquired Property
          under
          this agreement, notwithstanding anything contained herein to the
          contrary.

      

      
        

      

      
        7.
          No
          later than 60 days from closing an additional $1,150,000 in cash along
          with an
          additional 100,000 shares of restricted common stock of Hyperdynamics
          Corporation will be paid and issued by Assignee to Assignor/Operator or
          their
          assigns. This payment shall be the final portion of the purchase price
          for the
          Acquired Property and together with the amount paid at closing of this
          agreement, shall be considered the total purchase price. If such payment
          is not
          made or a new arrangement is not reached by 60 days from closing, this
          agreement
          and all related agreements shall be deemed null and void, all interest
          in the
          properties will be fully transferred back to Assignor/Operator, all money
          and
          securities paid to Assignor/Operator shall be retained by Assignor/Operator,
          and
          Assignee will be released from all obligations herein.

      

      
        

      

      
        8.  The
          Assignee hereby promises to invest an additional $4,000,000 (herein referred
          to
          as “Promised Funds”) in addition to the amount paid at closing. The Promise
          Funds are promised in accordance with the provisions of this agreement
          with the
          intent to maximize the return from the Acquired Property or new properties
          as
          the case may be. Furthermore, Promise Funds, as spent, will be applied
          to the
          cost of any and all operations associated with the properties/leases/wells
          covered under this agreement, to include acquisition, drilling, operating
          costs,
          geology, completion, abandonment, etc. and are not part of any acquisition
          price.

      

      
        

      

      
        BUDGET
          AND EXPENDITURES

      

      
        

      

      
        9.
          Assignor/Operator shall submit for approval by Assignee a scheduled budget
          for
          each month. The budget will include an accounting of expected operating
          expenses, capital investment expenses, drilling expenses, acquisition expenses,
          and all other such expenses expected in the budgeted period. Each budget
          will
          specify how much is expected to apply to the Promise Funds commitment.
          This
          budget shall be delivered to Assignee by the tenth day of the month preceding
          the budgeted month. Upon approval of each monthly budget by Assignee, budgeted
          funds will be transferred to Assignor/Operator by the 5th day
          of the
          budgeted month. Assignee has ultimate authority to approve or disapprove
          all
          expenditures and/or budgets submitted by Assignor/Operator. The budget
          process
          described herein shall be further defined in an ultimately negotiated Operating
          Agreement.

      

      
         

      

      
        
          
            
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            10.
              In
              accordance with the Operating Agreement referred to in paragraph 4
              hereof, the
              Assignor/Operator must supply statements, receipts and any other documentation
              verifying costs and expenditures within 15 days upon written request
              by the
              Assignee, and Assignee will maintain a right to audit the records of
              Assignor/Operator in perpetuity as long as this agreement or related
              agreements
              pertaining hereto are in effect.

          

          
             

          

        

      

      
        11.  The
          parties intend herein for the Promised Funds to be fully invested by Assignee
          within eighteen (18) months of the signing of this agreement, and once
          Promise
          Funds are fully expended, the 15% retained working interest of Assignor/Operator
          will become a fully participating working interest whereby Assignor/Operator
          will begin paying its pro-rata portion of all operating costs; provided,
          however, that this participation shall not apply to drilling costs associated
          with new drills. Whichever comes first, the completion of the expenditure
          for
          the Promised Funds or the expiration of the eighteen (18) months, the 15%
          working interest retained by Assignor/Operator will convert to a
          fully-participating working interest as explained above, save and except
          for
          drilling and completion costs associated with all new drills as defined
          earlier
          in Paragraph 4 of this agreement. If Assignor/Operator does not request
          through
          the formal budget process the full amount of the Promised Funds by the
          expiration of the eighteen (18) month period, Assignee cannot be held in
          default
          for that reason.

      

      
        

      

      
        DEFAULT
          AND FORFEITURE

      

      
        

      

      
        12.  Should
          Assignee fail to make any payment within ten (10) days of its due date,
          or fail
          to perform any other of the Assignee’s obligation,
          herein described, upon thirty (30) days written notice, or should Assignee
          be or
          become insolvent or be a party to any bankruptcy receivership proceeding
          prior
          to full payment of all amounts payable hereunder, Assignor/Operator may
          regain
          the full ownership and privileges of 35% additional working interest from
          Assignee in all assets covered hereunder, and Assignee, by virtue of this
          Agreement, hereby pledges to facilitate such transfer with all speed and
          diligence. If, however, Assignee, remedies its financial obligation within
          thirty (30) days of written notice, Assignee must immediately pay to
          Assignor/Operator 10% of the value of the amount in arrears as penalty
          for
          default.

      

      
        

      

      
        The
          remedies provided herein shall be cumulative and in addition to all other
          remedies provided by law or equity or under the Uniform Commercial
          Code.

      

      
        

      

      
        DEVELOPMENTAL
          DRILLING

      

      
        

      

      
        13.  Assignor/Operator
          will provide requisite geological and/or engineering reports to support
          additional drilling, and funds for this purpose shall be requested and
          approved
          through the budget process referred to in paragraph 6 above.

      

      
        

      

      
        14.  Assignor/Operator
          will provide requisite geological and/or engineering reports to support
          completion and/or abandonment operations, and funds for this purpose shall
          be
          requested and approved through the budget process referred to in paragraph
          6
          above.

      

      
        

      

      
        RESTRAINTS
          ON ALIENATION

      

      
        

      

      
        15.  During
          a one hundred eighty (180) day period which begins with the transfer of
          the 85%
          interest as defined herein, neither party can abandon, buy, or sell its
          interest
          or obligations.

      

      
        

      

      
        PREEMPTIVE
          AND RECIPROCAL RIGHTS

      

      
        

      

      
        16.  The
          Assignee shall have the right beginning at the expiration of a one hundred
          eighty (180) day period referred to in paragraph 15 above, and at any time
          thereafter while the contract and arrangement created hereby is in existence,
          to
          purchase the entire interest in the wells, properties and leases affected
          hereby, including any and all contract rights relating to disposal and
          access,
          of Assignor/Operator, and Assignor/Operator shall be obligated, within
          thirty
          (30) days of written notice to that effect, to facilitate the sale of said
          interest and to accept from Assignee a price and consideration based upon
          the
          price formula described in Exhibit “A” attached hereto.

      

      
        

      

      
        17.
          Under
          no circumstances shall either party be forced to purchase the interest
          of the
          other party. Notice of intent to sell must be made formally in writing
          to the
          other party. The other party will have the priority right within thirty
          (30)
          days of written notice to purchase said interest at a price determined
          by the
          seller, but, in the case of Assignor/Operator sale, the price shall not
          exceed
          the price as determined by the price formula contained in Exhibit
“A”.

      

      
        

          
            
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      18.  In
        the event Assignor/Operator would sell its interest to Assignee pursuant
        to the
        arrangement set forth in paragraphs 16 and 17 above, any money remaining
        of the
        Promised Funds not yet expended shall no longer be required to be spent by
        Assignee. In the event Assignee would sell its interest to Assignor/Operator,
        any money remaining not yet invested out of the Promised Funds shall not
        be
        required to be paid by Assignee, with the understanding that Assignee shall
        not
        be required in either event to purchase from Assignor/Operator the 200,000
        shares of common stock of Assignee which was initially transferred to
        Assignor/Operator as part of the purchase price for the execution of this
        agreement.

      

      
        RIGHT
          OF FIRST REFUSAL

      

      
        

      

      
        19.  In
          addition to any rights and obligations of the parties established herein,
          Assignee shall also have a right of first refusal to acquire 85% of the
          interest
          of Assignor/Operator or any of its affiliates in the case that any additional
          acquisitions (leases, wells, etc.) made by Assignor/Operator or its affiliates,
          which are not funded by the Promised Funds described in Paragraph 5 of
          this
          agreement. Accordingly, Assignor/Operator shall no later than ten (10)
          days
          prior to his planned acquisition inform Assignee in writing of the nature
          and
          character of the proposed acquisition along with the terms and conditions of the
          purchase, and Assignee shall have until the actual acquisition to pay 85%
          of the
          acquisition cost and receive from Assignor/Operator 85% of the property
          so
          acquired. If said property is acquired by Assignee, the provisions of this
          agreement, to the extent applicable, shall cover and apply to the maintenance
          and development of said property, but with it being understood that any
          working
          interest retained by Assignor/Operator in said additional properties shall
          be
          calculated, managed and accounted for in parallel to Acquired Property
          under
          this agreement.

      

      
        

      

      
        CONTROLLING
          DOCUMENT

      

      
        

      

      
        20.  This
          agreement shall act as the controlling document for all related documents
          including all exhibits and amendments to this agreement. Any clauses,
          provisions, or procedures that might be construed as conflicting will be
          subordinate to this agreement where appropriate. All amendments to this
          agreement must have the agreement by signature of all parties
          involved.

      

      
        

      

      
        

      

      
        	
                WITNESSES:

              	 	
                ASSIGNOR/OPERATOR

              
	 	 	 
	
                illegible

              	 	
                RABB
                  RESOURCES LIMITED

              
	
                /s/
                  Mindy Murray

              	 	 	 
	 	 	
                BY:

              	
                /s/
                  Claude L. Rabb

              
	 	 	 	
                CLAUDE
                  L. RABB

              
	 	 	 	 
	
                WITNESSES:

              	 	
                RABB
                  CONTRACTING COMPANY, LLC

              
	 	 	 
	
                illegible

              	 	
                BY:

              	
                /s/
                  Claude L. Rabb

              
	 	 	 	CLAUDE
                L. RABB
	 	 	 	 
	
                
                  /s/
                    Mindy Murray

                

              	 	 	
                /s/
                  Claude L. Rabb

              
	 	 	 	
                CLAUDE
                  L. RABB, Individually

              

      

      
        

      

      
        	 	
                /s/
                  Melisa B. Reeves

              	 
	 	
                NOTARY
                  PUBLIC

              	 
	 	
                MY
                  COMMISSION EXPIRES AT DEATH

              	 

      

      
        

          
            
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                WITNESSES

              	 	
                ASSIGNE:

              
	 	 	 
	
                illegible

              	 	
                HYPERDYNAMICS
                  CORPORATION

              
	 	 	 
	
                illegible

              	 	
                BY:

              	
                illegible

              

      

      
        

      

      
        	 	
                /s/
                  Jami M. Caskey

              	 
	 	
                NOTARY
                  PUBLIC

              	 
	 	
                MY
                  COMMISSION EXPIRES AT DEATH

              	 

      

      

      
        	
                /s/
                  Mindy Murray

              	 	
                HYD
                  RESOURCES CORPORATION

              
	 	 	 
	
                illegible

              	 	
                BY:

              	
                /s/
                  Jeremy G. Driver

              
	 	 	 	
                JEREMY
                  G. DRIVER

              

      

      
        

      

      
        	 	
                /s/
                  Melisa B. Reeves

              	 
	 	
                NOTARY
                  PUBLIC

              	 

      

      
        

      

      
        	
                /s/
                  Mindy Murray 

              	 	
                TRENDSETTER
                  PRODUCTION COMPANY

              
	 	 	 
	
                
                  illegible

                

              	 	
                BY:

              	
                /s/
                  Jeremy G. Driver

              
	
                 

              	 	 	
                JEREMY
                  G. DRIVER

              

      

      

      
        	 	
                /s/
                  Melisa B. Reeves

              	 
	 	
                NOTARY
                  PUBLIC

              	 
	 	
                MY
                  COMMISSION EXPIRES AT DEATH

              	 

      

      
        

          
            
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        EXHIBIT
          A

      

      
        

      

      
        BUYBACK
          FORMULA

      

      
        

      

      
        X
          = ( CP - IP ) • PPBO • 2YR • WI% • ( CP / EP )

      

      
        

      

      
        X:
          The price required to purchase Assignor/Operator working
          interest

      

      
         

        CP:
          Current production in daily barrels of oil equivalent (3-month
          average)

      

      
        

      

      
        IP:
          53 barrels of oil produced daily

      

      
        

      

      
        PPBO:
          Price per barrel of oil (3-month average from oil purchaser
          statements)

      

      
        

      

      
        2YR:
          24-month payout period

      

      
        

      

      
        WI%:
          Percentage of Working Interest to be purchased net of all
          royalties

      

      
        

      

      
        EP:
          Expected production as calculated by:

      

      
        

      

      
        EP
          = CX / (AC / IP) + IP

      

      
        

      

      
        AC:
          Initial acquisition costs, half of which was paid in cash at
          closing

      

      
         

        CX:
          Capital Expenditures, not including initial acquisition costs
          (AC)

      

      
         

      

      
        
          Confidential
            - Trendsetter Production
            Company

        

        
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        EXHIBIT
          B

      

      
        

      

      
        OIL,
          GAS AND MINERAL LEASES

      

      
        

      

      
        1.         Oil
          and Gas Lease made November 1, 2001, by and between Armando P. Ricci, Jr.,
          as
          Trustee for the Howard B. Peabody 1989 Revocable Trust, et al, Lessor and
          Verona
          Energy, Inc., Lessee, recorded in COB 417, page 151, Entry No. 257058 of
          the
          records of Concordia Parish, Louisiana; and

      

      
        

      

      
        2.         Oil
          and Gas Lease made November 1, 2001 by and between Andrew L. Peabody, et
          al,
          Lessor, and Verona Energy, Inc., Lessee, recorded in COB 393, page 56,
          Entry No.
          237326 of the records of Concordia Parish, Louisiana; and

      

      
        

      

      
        3.         Oil,
          Gas and Mineral Lease dated (effective) August 7, 1991 from Conn Memorial
          Foundation, Inc., et al, as lessor, to Oilwell Acquition Company, as Lessee,
          filed for record under Register No. 194040 and recorded in COB 309, page
          276 of
          the Records of Concordia Parish, Louisiana.

      

      
        

      

      
        4.         Oil,
          gas and mineral lease executed by the State Mineral Board of the State
          of
          Louisiana, as Lessor, in favor of Rabb Resources, Limited, as Lessee, dated
          June
          13, 2001, recorded August 14, 2001 in COB 391, page 815 of the records
          of
          Catahoula Parish, Louisiana, and SL No. 17129 and affecting Tract
          33513.

      

      
        

      

      
        5.         That
          certain oil, gas and mineral lease executed by Andre Joseph Karam, et al
          in
          favor of Claude Rabb, husband of Sheri Rabb, dated July 5, 2000, filed
          August 2,
          2000, and recorded at COB 386, page 62 as Registry No. 232120 of the records
          of
          Concordia Parish, Louisiana, and which oil, gas and mineral lease was extended
          by Extension of Oil, Gas and Mineral Lease dated June 23, 2001, filed June
          26,
          2001 and recorded at COB 391, page 170 of the records of Concordia Parish,
          Louisiana.

      

      
        

      

      
        6.         An
          Oil, Gas and Mineral Lease by and between Tommy Joe Deville and Camie Price
          Deville and Rabb Resources, Inc. recorded on April 10, 2006 as Document
          No.
          1305445 in COB 1749, page 985 of the records of Rapides Parish, Louisiana.
          (Price #1 and Deville heirs #1 wells)

      

      
        

      

      
        7.         Oil,
          Gas and Mineral Lease by and between Wheless Industries, Inc. and Wagner
          Oil
          Company dated January 24, 2002 and recorded on July 9, 2002 in COB 214,
          page 118
          as Document No. 250059 of the records of Catahoula Parish,
          Louisiana.

      

      
        

      

      
        8.         Oil,
          Gas and Mineral Lease by and between Bryan Wagner, et al, and Cat Oil,
          Inc.
          dated May 15, 2002 and recorded on July, 2002 in COB 214, page 271 as Document
          No. 250204 of the records of Catahoula Parish, Louisiana.

      

      
        

      

      
        9.         Oil,
          Gas and Mineral Lease by and between David John Andrews and Cat Oil, Inc.
          dated
          May 15, 2002 and recorded on May 15, 2002 in COB 214, page 271 as Document
          No.
          250204, of the records of Catahoula Parish, Louisiana.

      

      
        

      

      
        10.       Oil,
          Gas and Mineral Lease by and between Wagner Oil Company and Cat Oil, Inc.
          dated
          May 1, 2002 and recorded on February 10, 2003 in COB 216, page 369 as Document
          No. 251398 of the records of Catahoula Parish, Louisiana.

      

      
        

      

      
        11.       Oil,
          Gas and Mineral Lease by and between William R. Yakey, et al and Rabb
          Contracting Co., LLC dated April 25, 2005 and recorded on April 7, 2005
          in COB
          413, page 159 as Document No. 253587 of the records of Concordia Parish,
          Louisiana.

      

      
        

      

      
        PRODUCING
          WELLS

      

      
        

      

      
        1.         PAUL
          1 SU320; PRICE 001 - Serial No. 121099

      

      
        2.         HUMBLE-TENSAS
          DELTA T044 - Serial No. 134417

      

      
        3.         HUMBLE-TENSAS
          DELTA T-60 - Serial No. 136766

      

      
        4.         DEVILLE
          HEIRS 001 - Serial No. 172875

      

      
        5.         DEVILLE
          B 001 - Serial No. 228817

      

      
         

      

      
        
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            - Trendsetter Production
            Company

        

        
          7
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      6.         YAKEY
        002 - Serial No. 174204

      
        7.         CONN
          RA SUE; SL 7763 -KARAM 001 - Serial No. 164144

      

      
        8.         CONN
          RA SUE; SL 7763 KARAM 001-ALT - Serial No. 204209

      

      
        9.         PEABODY
          002 - Serial No. 213803

      

      
        10.       PEABODY
          003 - Serial No. 214328

      

      
        11.       PEABODY
          005 - Serial No. 194163

      

      
        12.       PEABODY
          006 - Serial No. 198302

      

      
        13.       PEABODY
          007 - Serial No. 199817

      

      
        14.       PEABODY
          010 - Serial No. 206781

      

      
        15.       PEABODY
          LBM 004 - Serial No. 185497

      

      
        16.       PEABODY
          LBM 010 - Serial No. 195516

      

      
        17.       PEABODY
          LBM 011 - Serial No. 198253

      

      
        18.       PEABODY
          LBM 016 - Serial No. 203943

      

      
        19.       BEE
          BRAKE SUB; CONN 001 - Serial No. 213739

      

      
        20.       BEE
          BRAKE SUA; CONN 002 - Serial No. 214632

      

      
        

      

      
        DISPOSAL
          WELLS

      

      
        

      

      
        1.         FRED
          K CONN ET AL SWD 001 - Serial No. 86216

      

      
        2.         FLOYD
          SWD 001 - Serial No. 170845

      

      
        3.         YAKEY
          SWD 003 - Serial No. 178106

      

      
        4.         PEABODY
          LBM SWD 005 - Serial No. 187698

      

      
        5.         PEABODY
          SWD 001 - Serial No. 214315

      

      
        6.         PEABODY
          SWD 004 - Serial No. 192704

      

      
        7.         TDL-WAGNER
          SWD 001 - Serial No. 973155

      

      
        8.         FERRIS
          SWD A-2 - Serial No. 123414

      

      
         

      

      
        
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            - Trendsetter Production
            Company

        

        
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        EXHIBIT
          C

         

      

      
        EQUIPMENT

      

      
        

      

      
        Peabody
          5, 6, 7 & 10

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                (1)
                  National J-150 triplex pump

              	 	
                6137

              
	
                (1)
                  Armco unidraulic vessels

              	 	
                77-169-L

              
	
                (1)
                  Armco unidraulic vessels

              	 	
                75-82-L

              
	
                (1)
                  LufkinC-228D-213-100

              	 	
                F119839S-496336

              
	
                (1)
                  Natco 6 x 27 1/2 treater

              	 	
                9B32101-01

              
	
                (1)
                  Goulds 3” x 2”
                  SW
                  pump

              	 	 
	
                (1)
                  30 hp Westinghouse electric motor

              	 	
                P6066031005

              
	
                (1)
                  40 hp Worldwide electric motor

              	 	
                0511457

              
	
                (2)
                  400 bbl metal stock tanks

              	 	 
	
                (2)
                  400 bbl metal SW tanks

              	 	 

      

      
        

      

      
        Peabody
          LBM 4, 10, 11 & 16

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                (1)
                  National 4 x 27 1/2 treater (bad)

              	 	
                414797

              
	
                (1)
                  National 4 x 27 1/2 treater

              	 	
                412817

              
	
                (2)
                  400 bbl metal stock tanks

              	 	 
	
                (2)
                  400 bbl metal SW tanks

              	 	 
	
                (1)
                  300 bbl metal SW tank

              	 	 
	
                (1)
                  Goulds 2” x 1 1/2” SW pump

              	 	
                L0549123

              
	
                (1)
                  Westinghouse 15 hp electric motor

              	 	
                AQ65101150001

              
	
                (1)
                  86” pumping unit

              	 	
                0228-253-0013

              
	
                (1)
                  320 Salzgitter 120” stroke

              	 	
                25511170

              
	
                (1)
                  Bethlehem 228D-205-64

              	 	
                S-505

              

      

      
        

      

      
        Yakey

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                (3)
                  210 bbl metal stock tanks

              	 	 
	
                (1)
                  Baker 4 x 27 1/2 treater

              	 	
                60647

              
	
                (1)
                  American 228-213-86

              	 	
                T20F86-3A-5040

              
	
                (2)
                  300 bbl metal SW tanks

              	 	 

      

      
        

      

      
        Peabody
          2 & 3

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                (1)
                  Baker 4 x 27 1/2 treater

              	 	
                63191

              
	
                (1)
                  4 x 27 1/2 treater

              	 	 
	
                (4)
                  300 bbl metal stock tanks

              	 	 
	
                (2)
                  300 bbl metal SW tanks

              	 	 
	
                (1)
                  300 bbl metal tank (no good)

              	 	 
	
                (1)
                  232 Waukesha engine

              	 	
                351985

              
	
                (1)
                  1800 Series Gaso pump 2 1/2 - 4x6

              	 	
                18937

              
	
                (1)
                  Armco unidraulic vessels

              	 	
                81-216-L

              
	
                (1)
                  National J-165 triplex pump

              	 	 

      

      
        

      

      
        Floyd
          S.W.D.

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                Injection
                  pump - Wheatley Triplex pump

              	 	 
	                             
                P300 - 7956	 	
                2446

              
	                              (1)
                300 tank	 	 

      

      
         

      

      
        
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            - Trendsetter Production
            Company

        

        
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      EXHIBIT
        C CONTINUED

      

      
        EQUIPMENT

      

      
        

      

      
        HTD
          T-44 & T-60

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                (1)
                  300 bbl metal stock tank

              	 	 
	
                (2)
                  300 bbl metal SW tanks

              	 	 
	(1)
                Moran 4 x 20 treater 	 	 
	
                (1)
                  310 Waukesha engine (busted block - bad)

              	 	
                327376

              
	
                (1)
                  Summit 3” x 1 1/2” SW pump model 2196 MTO335230

              	 	 
	
                (1)
                  American 114-143-64

              	 	
                T15F64-15-3657

              
	
                (1)
                  Cabot 160D-143-74

              	 	
                166B37

              
	
                (1)
                  310 Waukesha engine

              	 	
                scratched
                  off; Spec: G38688

              

      

      
        

      

      
        Karem
          - Conn

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                (1)
                  6 x 20 National treater

              	 	
                T5190001-03

              
	
                (1)
                  CR15 Grundfos SW pump

              	 	 
	
                (2)
                  400 bbl metal stock tanks

              	 	 
	
                (5)
                  400 bbl metal stock tanks (bad)

              	 	 
	
                (2)
                  Haywards 400 bbl fiberglass tanks

              	 	 
	
                (1)
                  #1 Sentinel 22852460G86

              	 	
                2507

              
	
                (1)
                  Lufkin C228D-213-86

              	 	
                E105393N-470421

              

      

      
        

      

      
        Conn
          #2

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                (2)
                  Lide 300 bbl metal stock tanks

              	 	 
	
                (1)
                  Natco 4 x 20 treater

              	 	
                9741109-002

              
	
                (1)
                  Natco 4 x 20 treater (bad)

              	 	
                9A66401-09

              
	
                (l)
                  Lufkin C320D-298-100

              	 	
                AN17974E-268563

              

      

      
        

      

      
        Paul
          Price (Section 41 T5N-R3E. API
#17-079-20070)

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                Pumping
                  Unit - Lufkin

              	 	 
	             
                            
                  Type TC2A3.5	 	
                290
                  U

              
	                           
                  Power 30 HP electric motor	 	 
	
                Tanks
                  - (2) 300 barrel stock tanks

              	 	 
	
                              (1)
                  210 s.w. tank

              	 	 
	              (1)
                4 x 20 Heater treater	 	 
	
                 
                  (1) Gould Transfer Pump

              	 	
                ED469023

              
	
                Power
                  5HP electric motor

              	 	 

      

      
        

      

      
        Deville
          Heirs, (Section 3 T4N-R3E, API #17-079-20301)

      

      
        

      

      
        	
                Description

              	 	
                Serial
                  Number

              
	
                Pumping
                  Unit - Lufkin

              	 	 
	                            
                Type TC2ATr.35B	 	
                14U

              
	
                Tanks
                  - (1) 210 stock tank

              	 	 
	             
                (1) 300 s.w. tank	 	 
	             
                (1) Gould Transfer pump (bad)	 	 

      

      
        

      

      
        Confidential
          - Trendsetter Production Company

        10
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]