Document:

Exhibit 10.8

    Exhibit
      10.8

     

    SUBSIDIARY
      GUARANTY

     

    New
      York,
      New York                                                                                      August
      25, 2006

     

    FOR
      VALUE
      RECEIVED, and in consideration of note purchases from, loans made or to be
      made
      or credit otherwise extended or to be extended by Laurus Master Fund, Ltd.
      (“Laurus”) to or for the account of Blast Energy Services, Inc., a California
      corporation (“Debtor”), from time to time and at any time and for other good and
      valuable consideration and to induce Laurus, in its discretion, to purchase
      such
      notes, make such loans or other extensions of credit and to make or grant such
      renewals, extensions, releases of collateral or relinquishments of legal rights
      as Laurus may deem advisable, each of the undersigned (and each of them if
      more
      than one, the liability under this Guaranty being joint and several) (jointly
      and severally referred to as “Guarantors “ or “the undersigned”) unconditionally
      guaranties to Laurus, its successors, endorsees and assigns the prompt payment
      when due (whether by acceleration or otherwise) of all present and future
      obligations and liabilities of any and all kinds of Debtor to Laurus and of
      all
      instruments of any nature evidencing or relating to any such obligations and
      liabilities upon which Debtor or one or more parties and Debtor is or may become
      liable to Laurus, whether incurred by Debtor as maker, endorser, drawer,
      acceptor, guarantors, accommodation party or otherwise, and whether due or
      to
      become due, secured or unsecured, absolute or contingent, joint or several,
      and
      however or whenever acquired by Laurus, whether arising under, out of, or in
      connection with (i) that certain Securities Purchase Agreement dated as of
      the
      date hereof by and between the Debtor and Laurus (the “Securities Purchase
      Agreement”) and (ii) each Related Agreement referred to in the Securities
      Purchase Agreement (the Securities Purchase Agreement and each Related
      Agreement, as each may be amended, modified, restated or supplemented from
      time
      to time, are collectively referred to herein as the “Documents”), or any
      documents, instruments or agreements relating to or executed in connection
      with
      the Documents or any documents, instruments or agreements referred to therein
      or
      otherwise, or any other indebtedness, obligations or liabilities of the Debtor
      to Laurus, whether now existing or hereafter arising, direct or indirect,
      liquidated or unliquidated, absolute or contingent, due or not due and whether
      under, pursuant to or evidenced by a note, agreement, guaranty, instrument
      or
      otherwise (all of which are herein collectively referred to as the
“Obligations”), and irrespective of the genuineness, validity, regularity or
      enforceability of such Obligations, or of any instrument evidencing any of
      the
      Obligations or of any collateral therefor or of the existence or extent of
      such
      collateral, and irrespective of the allowability, allowance or disallowance
      of
      any or all of the Obligations in any case commenced by or against Debtor under
      Title 11, United States Code, including, without limitation, obligations or
      indebtedness of Debtor for post-petition interest, fees, costs and charges
      that
      would have accrued or been added to the Obligations but for the commencement
      of
      such case. Terms not otherwise defined herein shall have the meaning assigned
      such terms in the Securities Purchase Agreement. In furtherance of the
      foregoing, the undersigned hereby agrees as follows:

     

    1.No
      Impairment.
      Laurus
      may at any time and from time to time, either before or after the maturity
      thereof, without notice to or further consent of the undersigned, extend the
      time of payment of, exchange or surrender any collateral for, renew or extend
      any of the Obligations or increase or decrease the interest rate thereon, or
      any
      other agreement with Debtor or with any other party to or person liable on
      any
      of the Obligations, or interested therein, for the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    extension,
      renewal, payment, compromise, discharge or release thereof, in whole or in
      part,
      or for any modification of the terms thereof or of any agreement between Laurus
      and Debtor or any such other party or person, or make any election of rights
      Laurus may deem desirable under the United States Bankruptcy Code, as amended,
      or any other federal or state bankruptcy, reorganization, moratorium or
      insolvency law relating to or affecting the enforcement of creditors’ rights
      generally (any of the foregoing, an “Insolvency Law”) without in any way
      impairing or affecting this Guaranty. This Guaranty shall be effective
      regardless of the subsequent incorporation, merger or consolidation of Debtor,
      or any change in the composition, nature, personnel or location of Debtor and
      shall extend to any successor entity to Debtor, including a debtor in possession
      or the like under any Insolvency Law.

     

    Guaranty
      Absolute.
      Subject
      to Section 5(c) hereof, each of the undersigned jointly and severally guarantees
      that the Obligations will be paid strictly in accordance with the terms of
      the
      Documents and/or any other document, instrument or agreement creating or
      evidencing the Obligations, regardless of any law, regulation or order now
      or
      hereafter in effect in any jurisdiction affecting any of such terms or the
      rights of Debtor with respect thereto. Guarantors hereby knowingly accept the
      full range of risk encompassed within a contract of “continuing guaranty” which
      risk includes the possibility that Debtor will contract additional indebtedness
      for which Guarantors may be liable hereunder after Debtor’s financial condition
      or ability to pay its lawful debts when they fall due has deteriorated, whether
      or not Debtor has properly authorized incurring such additional indebtedness.
      The undersigned acknowledge that (i) no oral representations, including any
      representations to extend credit or provide other financial accommodations
      to
      Debtor, have been made by Laurus to induce the undersigned to enter into this
      Guaranty and (ii) any extension of credit to the Debtor shall be governed solely
      by the provisions of the Documents. The liability of each of the undersigned
      under this Guaranty shall be absolute and unconditional, in accordance with
      its
      terms, and shall remain in full force and effect without regard to, and shall
      not be released, suspended, discharged, terminated or otherwise affected by,
      any
      circumstance or occurrence whatsoever, including, without limitation: (a) any
      waiver, indulgence, renewal, extension, amendment or modification of or
      addition, consent or supplement to or deletion from or any other action or
      inaction under or in respect of the Documents or any other instruments or
      agreements relating to the Obligations or any assignment or transfer of any
      thereof, (b) any lack of validity or enforceability of any Document or other
      documents, instruments or agreements relating to the Obligations or any
      assignment or transfer of any thereof, (c) any furnishing of any additional
      security to Laurus or its assignees or any acceptance thereof or any release
      of
      any security by Laurus or its assignees, (d) any limitation on any party’s
      liability or obligation under the Documents or any other documents, instruments
      or agreements relating to the Obligations or any assignment or transfer of
      any
      thereof or any invalidity or unenforceability, in whole or in part, of any
      such
      document, instrument or agreement or any term thereof, (e) any bankruptcy,
      insolvency, reorganization, composition, adjustment, dissolution, liquidation
      or
      other like proceeding relating to Debtor, or any action taken with respect
      to
      this Guaranty by any trustee or receiver, or by any court, in any such
      proceeding, whether or not the undersigned shall have notice or knowledge of
      any
      of the foregoing, (f) any exchange, release or nonperfection of any collateral,
      or any release, or amendment or waiver of or consent to departure from any
      guaranty or security, for all or any of the Obligations or (g) any other
      circumstance which might otherwise constitute a defense available to, or a
      discharge of, the undersigned. Any amounts due from the undersigned
      to

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Laurus
      shall bear interest until such amounts are paid in full at the highest rate
      then
      applicable to the Obligations. Obligations include post-petition interest
      whether or not allowed or allowable.

     

    3.Waivers.

     

    (a) This
      Guaranty is a guaranty of payment and not of collection. Laurus shall be under
      no obligation to institute suit, exercise rights or remedies or take any other
      action against Debtor or any other person or entity liable with respect to
      any
      of the Obligations or resort to any collateral security held by it to secure
      any
      of the Obligations as a condition precedent to the undersigned being obligated
      to perform as agreed herein and each of the Guarantors hereby waives any and
      all
      rights which it may have by statute or otherwise which would require Laurus
      to
      do any of the foregoing. Each of the Guarantors further consents and agrees
      that
      Laurus shall be under no obligation to marshal any assets in favor of
      Guarantors, or against or in payment of any or all of the Obligations. The
      undersigned hereby waives all suretyship defenses and any rights to interpose
      any defense, counterclaim or offset of any nature and description which the
      undersigned may have or which may exist between and among Laurus, Debtor and/or
      the undersigned with respect to the undersigned’s obligations under this
      Guaranty, or which Debtor may assert on the underlying debt, including but
      not
      limited to failure of consideration, breach of warranty, fraud, payment (other
      than cash payment in full of the Obligations), statute of frauds, bankruptcy,
      infancy, statute of limitations, accord and satisfaction, and usury.

     

    (b) Each
      of
      the undersigned further waives (i) notice of the acceptance of this Guaranty,
      of
      the making of any such loans or extensions of credit, and of all notices and
      demands of any kind to which the undersigned may be entitled, including, without
      limitation, notice of adverse change in Debtor’s financial condition or of any
      other fact which might materially increase the risk of the undersigned and
      (ii)
      presentment to or demand of payment from anyone whomsoever liable upon any
      of
      the Obligations, protest, notices of presentment, non-payment or protest and
      notice of any sale of collateral security or any default of any
      sort.

     

    (c) Notwithstanding
      any payment or payments made by the undersigned hereunder, or any setoff or
      application of funds of the undersigned by Laurus, the undersigned shall not
      be
      entitled to be subrogated to any of the rights of Laurus against Debtor or
      against any collateral or guarantee or right of offset held by Laurus for the
      payment of the Obligations, nor shall the undersigned seek or be entitled to
      seek any contribution or reimbursement from Debtor in respect of payments made
      by the undersigned hereunder, until all amounts owing to Laurus by Debtor on
      account of the Obligations are indefeasibly paid in full and Laurus’ obligation
      to extend credit pursuant to the Documents has been irrevocably terminated.
      If,
      notwithstanding the foregoing, any amount shall be paid to the undersigned
      on
      account of such subrogation rights at any time when all of the Obligations
      shall
      not have been paid in full and Laurus’ obligation to extend credit pursuant to
      the Documents shall not have been terminated, such amount shall be held by
      the
      undersigned in trust for Laurus, segregated from other funds of
      the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    undersigned,
      and shall forthwith upon, and in any event within two (2) business days of,
      receipt by the undersigned, be turned over to Laurus in the exact form received
      by the undersigned (duly endorsed by the undersigned to Laurus, if required),
      to
      be applied against the Obligations, whether matured or unmatured, in such order
      as Laurus may determine, subject to the provisions of the Documents. Any and
      all
      present and future debts and obligations of Debtor to any of the undersigned
      are
      hereby waived and postponed in favor of, and subordinated to the full payment
      and performance of, all present and future debts and Obligations of Debtor
      to
      Laurus.

     

    4.Security.
      All
      sums at any time to the credit of the undersigned and any property of the
      undersigned in Laurus’ possession or in the possession of any bank, financial
      institution or other entity that directly or indirectly, through one or more
      intermediaries, controls or is controlled by, or is under common control with,
      Laurus (each such entity, an “Affiliate”) shall be deemed held by Laurus or such
      Affiliate, as the case may be, as security for any and all of the undersigned’s
      obligations to Laurus and to any Affiliate of Laurus, no matter how or when
      arising and whether under this or any other instrument, agreement or otherwise.
      

     

    5.Representations
      and Warranties.
      Each of
      the undersigned hereby jointly and severally represents and warrants (all of
      which representations and warranties shall survive until all Obligations are
      indefeasibly satisfied in full and the Documents have been irrevocably
      terminated), that:

     

    (a) Corporate
      Status. It is a corporation, partnership or limited liability company, as the
      case may be, duly formed, validly existing and in good standing under the laws
      of its jurisdiction of formation indicated on the signature page hereof and
      has
      full power, authority and legal right to own its property and assets and to
      transact the business in which it is engaged.

     

    (b) Authority
      and Execution. It has full power, authority and legal right to execute and
      deliver, and to perform its obligations under, this Guaranty and has taken
      all
      necessary corporate, partnership or limited liability company, as the case
      may
      be, action to authorize the execution, delivery and performance of this
      Guaranty.

     

    (c) Legal,
      Valid and Binding Character. This Guaranty constitutes its legal, valid and
      binding obligation enforceable in accordance with its terms, except as
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other laws of general application affecting the
      enforcement of creditor’s rights and general principles of equity that restrict
      the availability of equitable or legal remedies. 

     

    (d) Violations.
      The execution, delivery and performance of this Guaranty will not violate any
      requirement of law applicable to it or any contract, agreement or instrument
      to
      which it is a party or by which it or any of its property is bound or result
      in
      the creation or imposition of any mortgage, lien or other encumbrance other
      than
      in favor of Laurus on any of its property or assets pursuant to the provisions
      of any of the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    foregoing,
      which, in any of the foregoing cases, could reasonably be expected to have,
      either individually or in the aggregate, a Material Adverse Effect.

     

    (e) Consents
      or Approvals. No consent of any other person or entity (including, without
      limitation, any creditor of the undersigned) and no consent, license, permit,
      approval or authorization of, exemption by, notice or report to, or
      registration, filing or declaration with, any governmental authority is required
      in connection with the execution, delivery, performance, validity or
      enforceability of this Guaranty by it, except to the extent that the failure
      to
      obtain any of the foregoing could not reasonably be expected to have, either
      individually or in the aggregate, a Material Adverse Effect.

     

    (f) Litigation.
      No litigation, arbitration, investigation or administrative proceeding of or
      before any court, arbitrator or governmental authority, bureau or agency is
      currently pending or, to the best of its knowledge, threatened (i) with respect
      to this Guaranty or any of the transactions contemplated by this Guaranty or
      (ii) against or affecting it, or any of its property or assets, which, in each
      of the foregoing cases, if adversely determined, could reasonably be expected
      to
      have a Material Adverse Effect.

     

    (g) Financial
      Benefit. It has derived or expects to derive a financial or other advantage
      from
      each and every loan, advance or extension of credit made under the Documents or
      other Obligation incurred by the Debtor to Laurus.

     

    (h) Solvency.
      As of the date of this Guaranty, (a) the fair saleable value of its assets
      exceeds its liabilities and (b) it is meeting its current liabilities as they
      mature.

     

    6.Acceleration.

     

    (a) If
      any
      breach of any covenant or condition or other event of default shall occur and
      be
      continuing under any agreement made by Debtor or any of the undersigned to
      Laurus, or either Debtor or any of the undersigned should at any time become
      insolvent, or make a general assignment, or if a proceeding in or under any
      Insolvency Law shall be filed or commenced by, or in respect of, any of the
      undersigned, or if a notice of any lien, levy, or assessment is filed of record
      with respect to any assets of any of the undersigned by the United States of
      America or any department, agency, or instrumentality thereof, or if any taxes
      or debts owing at any time or times hereafter to any one of them becomes a
      lien
      or encumbrance upon any assets of the undersigned in Laurus’ possession, or
      otherwise, any and all Obligations shall for purposes hereof, at Laurus’ option,
      be deemed due and payable without notice notwithstanding that any such
      Obligation is not then due and payable by Debtor.

     

    (b) Each
      of
      the undersigned will promptly notify Laurus of any default by such undersigned
      in its respective performance or observance of any term or condition of any
      agreement to which the undersigned is a party if the effect of such default
      is
      to cause, or permit the holder of any obligation under such agreement to cause,
      such obligation to become due prior to its stated maturity and, if such an
      event
      occurs, Laurus shall have the right to accelerate such undersigned’s obligations
      hereunder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.Payments
      from Guarantors. Laurus, in its sole and absolute discretion, with or without
      notice to the undersigned, may apply on account of the Obligations any payment
      from the undersigned or any other guarantors, or amounts realized from any
      security for the Obligations, or may deposit any and all such amounts realized
      in a non-interest bearing cash collateral deposit account to be maintained
      as
      security for the Obligations.

     

    8.Costs.
      The
      undersigned shall pay on demand, all costs, fees and expenses (including
      expenses for legal services of every kind) relating or incidental to the
      enforcement or protection of the rights of Laurus hereunder or under any of
      the
      Obligations.

     

    9.No
      Termination.
      This is
      a continuing irrevocable guaranty and shall remain in full force and effect
      and
      be binding upon the undersigned, and each of the undersigned’s successors and
      assigns, until all of the Obligations have been indefeasibly paid in full and
      Laurus’ obligation to extend credit pursuant to the Documents has been
      irrevocably terminated. If any of the present or future Obligations are
      guarantied by persons, partnerships or entities in addition to the undersigned,
      the death, release or discharge in whole or in part or the bankruptcy, merger,
      consolidation, incorporation, liquidation or dissolution of one or more of
      them
      shall not discharge or affect the liabilities of any undersigned under this
      Guaranty.

     

    10.Recapture.
      Anything in this Guaranty to the contrary notwithstanding, if Laurus receives
      any payment or payments on account of the liabilities guaranteed hereby, which
      payment or payments or any part thereof are subsequently invalidated, declared
      to be fraudulent or preferential, set aside and/or required to be repaid to
      a
      trustee, receiver, or any other party under any Insolvency Law, common law
      or
      equitable doctrine, then to the extent of any sum not finally retained by
      Laurus, the undersigned’s obligations to Laurus shall be reinstated and this
      Guaranty shall remain in full force and effect (or be reinstated) until payment
      shall have been made to Laurus, which payment shall be due on
      demand.

     

    11.Books
      and Records.
      The
      books and records of Laurus showing the account between Laurus and Debtor shall
      be admissible in evidence in any action or proceeding, shall be binding upon
      the
      undersigned for the purpose of establishing the items therein set forth and
      shall constitute prima facie proof thereof, in each case absent manifest
      error.

     

    12.No
      Waiver.
      No
      failure on the part of Laurus to exercise, and no delay in exercising, any
      right, remedy or power hereunder shall operate as a waiver thereof, nor shall
      any single or partial exercise by Laurus of any right, remedy or power hereunder
      preclude any other or future exercise of any other legal right, remedy or power.
      Each and every right, remedy and power hereby granted to Laurus or allowed
      it by
      law or other agreement shall be cumulative and not exclusive of any other,
      and
      may be exercised by Laurus at any time and from time to time.

     

    13.Waiver
      of Jury Trial.
      EACH OF
      THE UNDERSIGNED DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
      APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF
      THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH OF THE UNDERSIGNED HERETO WAIVES
      ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    BROUGHT
      TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN
      LAURUS, AND/OR ANY OF THE UNDERSIGNED ARISING OUT OF, CONNECTED WITH, RELATED
      OR
      INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH
      THIS
      GUARANTY, ANY DOCUMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

     

    14.Governing
      Law; Jurisdiction.
      THIS
      GUARANTY CANNOT BE CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED BY AND
      CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
      APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO
      PRINCIPLES OF CONFLICTS OF LAWS. EACH OF THE UNDERSIGNED HEREBY CONSENTS AND
      AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK,
      STATE
      OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS
      OR DISPUTES BETWEEN ANY OF THE UNDERSIGNED, ON THE ONE HAND, AND LAURUS, ON
      THE
      OTHER HAND, PERTAINING TO THIS GUARANTY OR ANY OF THE DOCUMENTS OR TO ANY MATTER
      ARISING OUT OF OR RELATED TO THIS GUARANTY OR ANY OF THE DOCUMENTS; PROVIDED,
      THAT
      EACH OF THE UNDERSIGNED ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY
      HAVE
      TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF
      NEW
      YORK; AND FURTHER PROVIDED,
      THAT
      NOTHING IN THIS GUARANTY SHALL BE DEEMED OR OPERATE TO PRECLUDE LAURUS FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
      THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
      OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF LAURUS.
      EACH OF THE UNDERSIGNED EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
      JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
      UNDERSIGNED HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF
      PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM
      NON CONVENIENS.
      EACH OF
      THE UNDERSIGNED HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND
      OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF
      SUCH
      SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
      MAIL
      ADDRESSED TO SUCH UNDERSIGNED IN ACCORDANCE WITH SECTION 18 AND THAT SERVICE
      SO
      MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH UNDERSIGNED’S ACTUAL
      RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
      POSTAGE PREPAID.

     

    15.Understanding
      With Respect to Waivers and Consents.
      Each
      Guarantor warrants and agrees that each of the waivers and consents set forth
      in
      this Guaranty is made voluntarily and unconditionally after consultation with
      outside legal counsel and with full knowledge of its significance and
      consequences, with the understanding that events giving rise to any defense
      or
      right waived may diminish, destroy or otherwise adversely affect rights which
      such Guarantor otherwise may have against the Debtor, Laurus or any other person
      or entity or against any

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    collateral.
      If, notwithstanding the intent of the parties that the terms of this Guaranty
      shall control in any and all circumstances, any such waivers or consents are
      determined to be unenforceable under applicable law, such waivers and consents
      shall be effective to the maximum extent permitted by law.

     

    16.Severability.
      To the
      extent permitted by applicable law, any provision of this Guaranty which is
      prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
      be ineffective to the extent of such prohibition or unenforceability without
      invalidating the remaining provisions hereof, and any such prohibition or
      unenforceability in any jurisdiction shall not invalidate or render
      unenforceable such provision in any other jurisdiction.

     

    17.Amendments,
      Waivers.
      No
      amendment or waiver of any provision of this Guaranty nor consent to any
      departure by the undersigned therefrom shall in any event be effective unless
      the same shall be in writing executed by each of the undersigned directly
      affected by such amendment and/or waiver and Laurus.

     

    18.Notice.
      All
      notices, requests and demands to or upon the undersigned, shall be in writing
      and shall be deemed to have been duly given or made (a) when delivered, if
      by
      hand, (b) three (3) days after being sent, postage prepaid, if by
      registered or certified mail, (c) when confirmed electronically, if by
      facsimile, or (d) when delivered, if by a recognized overnight delivery service
      in each event, to the numbers and/or address set forth beneath the signature
      of
      the undersigned.

     

    19.Successors.
      Laurus
      may, from time to time, without notice to the undersigned, sell, assign,
      transfer or otherwise dispose of all or any part of the Obligations and/or
      rights under this Guaranty. Without limiting the generality of the foregoing,
      Laurus may assign, or grant participations to, one or more banks, financial
      institutions or other entities all or any part of any of the Obligations. In
      each such event, Laurus, its Affiliates and each and every immediate and
      successive purchaser, assignee, transferee or holder of all or any part of
      the
      Obligations shall have the right to enforce this Guaranty, by legal action
      or
      otherwise, for its own benefit as fully as if such purchaser, assignee,
      transferee or holder were herein by name specifically given such right. Laurus
      shall have an unimpaired right to enforce this Guaranty for its benefit with
      respect to that portion of the Obligations which Laurus has not disposed of,
      sold, assigned, or otherwise transferred.

     

    20.Joinder.
      It is
      understood and agreed that any person or entity that desires to become a
      Guarantor hereunder, or is required to execute a counterpart of this Guaranty
      after the date hereof pursuant to the requirements of any Document, shall become
      a Guarantor hereunder by (x) executing a Joinder Agreement in form and substance
      satisfactory to Laurus, (y) delivering supplements to such exhibits and
      annexes to such Documents as Laurus shall reasonably request and (z) taking
      all
      actions as specified in this Guaranty as would have been taken by such such
      Guarantor had it been an original party to this Guaranty, in each case with
      all
      documents required above to be delivered to Laurus and with all documents and
      actions required above to be taken to the reasonable satisfaction of
      Laurus.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    21.Release.
      Nothing
      except indefeasible payment in full of the Obligations shall release any of
      the
      undersigned from liability under this Guaranty.

     

    22.Remedies
      Not Exclusive.
      The
      remedies conferred upon Laurus in this Guaranty are intended to be in addition
      to, and not in limitation of any other remedy or remedies available to
      Laurus.

     

    23.Limitation
      of Obligations under this Guaranty.
      Each
      Guarantor and Laurus (by its acceptance of the benefits of this Guaranty) hereby
      confirms that it is its intention that this Guaranty not constitute a fraudulent
      transfer or conveyance for purposes of the Bankruptcy Code, the Uniform
      Fraudulent Conveyance Act of any similar Federal or state law. To effectuate
      the
      foregoing intention, each Guarantor and Laurus (by its acceptance of the
      benefits of this Guaranty) hereby irrevocably agrees that the Obligations
      guaranteed by such Guarantor shall be limited to such amount as will, after
      giving effect to such maximum amount and all other (contingent or otherwise)
      liabilities of such Guarantor that are relevant under such laws and after giving
      effect to any rights to contribution pursuant to any agreement providing for
      an
      equitable contribution among such Guarantor and the other Guarantors (including
      this Guaranty), result in the Obligations of such Guarantor under this Guaranty
      in respect of such maximum amount not constituting a fraudulent transfer or
      conveyance.  

     

    [REMAINDER
      OF THIS PAGE IS BLANK.

     

    SIGNATURE
      PAGE IMMEDIATELY FOLLOWS] 

     

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

     

    IN
      WITNESS WHEREOF, this Guaranty has been executed by the undersigned as of the
      date and year here above written.

    EAGLE
      DOMESTIC DRILLING OPERATIONS LLC

     

    By:
       BLAST
      ENERGY SERVICES, INC., its  sole
      member

     

    By:
      /s/
      John O’Keefe    

    Name:
      John O’Keefe

    Title:
      EVP, CFO, & Co-CEO

     

    Address: 14550
      Torrey Chase Boulevard

    Suite
      330

    Houston,
      TX 77014

     

    Telephone:
      (281) 453-2888

    Facsimile:
      (281) 453-2899

    State
      of
      Formation: TexasExhibit 10.9

    Exhibit
      10.9

     

    COLLATERAL
      ASSIGNMENT

     

    COLLATERAL
      ASSIGNMENT made as of this 25th day of August, 2006 by Blast Energy Services,
      Inc., a California corporation (“Assignor”), to Laurus Master Fund, Ltd.
      (“Assignee”).

     

    FOR
      VALUE
      RECEIVED, and as collateral security for all debts, liabilities and obligations
      of Assignor to Assignee, now existing or hereafter arising under that certain
      Securities Purchase Agreement dated as of the date hereof between Assignor
      and
      Assignee (the “SPA”) and the Related Agreements (as defined in the SPA) (each as
      amended, modified, restated or supplemented from time to time), Assignor hereby
      assigns, transfers and sets over unto, and grants a security interest to
      Assignee and its successors and assigns in, all of its rights and benefits,
      but
      not its obligations, under that certain Definitive Purchase Agreement dated
      as
      of June 28, 2006 by and among the members of Eagle Domestic Drilling Operations
      LLC named therein (collectively, the “Sellers”) and Assignor and all of the
      agreements and documents by which assets or rights of Sellers are transferred
      to
      Assignor (as each may be amended, modified, restated or supplemented from time
      to time, collectively, the “Agreements”), including, without limitation, all
      indemnity rights and all moneys and claims for moneys due and/or to become
      due
      to Assignor under the Agreements.

     

    Assignor
      hereby (i) specifically authorizes and directs Sellers upon notice to Sellers
      by
      Assignee to make all payments due to Assignor under or arising under the
      Agreements directly to Assignee and (ii) irrevocably authorizes and empowers
      Assignee (a) to ask, demand, receive, receipt and give acquittance for any
      and
      all amounts which may be or become due or payable, or remain unpaid at any
      time
      and times to Assignor by Sellers under and pursuant to the Agreements, (b)
      to
      endorse any checks, drafts or other orders for the payment of money payable
      to
      Assignor in payment thereof, and (c) in Assignee’s discretion to file any claims
      or take any action or institute any proceeding, either in its own name or in
      the
      name of Assignor or otherwise, which Assignee may deem necessary or advisable
      to
      effectuate the foregoing. It is expressly understood and agreed, however, that
      Assignee shall not be required or obligated in any manner to make any demand
      or
      to make any inquiry as to the nature or sufficiency of any payment received
      by
      it, or to present or file any claim or take any other action to collect or
      enforce the payment of any amounts which may have been assigned to Assignee
      or
      to which Assignee may be entitled hereunder at any time or times.

     

    Sellers
      are hereby authorized to recognize Assignee’s claims to rights hereunder without
      investigating any reason for any action taken by Assignee or the validity or
      the
      amount of the obligations or existence of any default, or the application to
      be
      made by Assignee of any of the amounts to be paid to Assignee. Checks for all
      or
      any part of the sums payable under this Collateral Assignment shall be drawn
      to
      the sole and exclusive order of Assignee. Upon payment by Sellers to Assignee
      of
      any amounts due to Assignor under or arising under the Agreements, the
      obligations of Sellers to Assignor with respect to such amounts shall be deemed
      paid in full.

     

    Without
      first obtaining the written consent of Assignee, neither Assignor nor any Seller
      shall (i) amend or modify the Agreements in any way which would affect any
      payments or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    material
      obligations thereunder due from Sellers to Assignor or (ii) agree to or suffer
      any amendment, extension, renewal, release, acceptance, forbearance,
      modification or waiver with respect to any rights of Assignor to receive payment
      from Sellers arising under the Agreements. 

     

    In
      the
      event Assignor declines to exercise any rights under the Agreements, Assignee
      shall have the right to enforce any and all such rights of Assignor directly
      against Sellers.

     

    This
      shall be a continuing agreement and the rights and benefits of the Assignor
      in
      and to the Agreements are in addition to and not in substitution for any other
      security held by the Assignee and shall not operate as a merger of any simple
      contract debt or suspend the fulfillment of or affect the right, remedies and
      powers of the Assignee in respect of the said rights and benefits or any
      collateral of the Assignor held by the Assignee. Without limiting the generality
      of any of the foregoing, all claims present or future of the Assignor against
      any person liable upon or for payment in respect of the Agreements are hereby
      assigned to the Assignee.

     

    The
      security interests created hereby are intended to attach and take effect
      forthwith upon the execution of this Collateral Assignment by the Assignor,
      and
      the Assignor acknowledges that value has been given and that the Assignor has
      rights in the Agreements.

     

    For
      avoidance of any doubt, this Collateral Assignment shall not release the
      Assignor from any of its obligations to Sellers under the
      Agreements.

     

    The
      Assignor acknowledges receipt of an executed copy of this Collateral
      Assignment.

     

    This
      Collateral Assignment shall be governed by and construed in accordance with
      the
      laws of the State of New York.

     

    [Remainder
      of this page intentionally left blank]

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

     

    IN
      WITNESS WHEREOF, Assignor has duly executed this Collateral Assignment the
      day
      and year first above written.

     

    BLAST
      ENERGY SERVICES, INC.

     

    By:
      /s/
      David M. Adams

    Name:
      David M. Adams

    Title
      President & Co-CEO

     

    Each
      Seller hereby consents and agrees

    to
      the
      provisions of this Collateral Assignment

    as
      of
      this 25th day of August, 2006.

    

     

    /s/
      Glenn A. Foster, Jr.  

    GLENN
      A.
      FOSTER, JR.

    

     

    /s/
      Richard Thornton   

    RICHARD
      THORNTON

    

     

    /s/
      Herman Livesay   

    HERMAN
      LIVESAY

     

    

    THORNTON
      FAMILY IRREVOCABLE TRUST

     

    By: 
      /s/
      Dirk O’Hara

    Name:
      Dirk O’Hara

    Title:
      Trustee

     

    

     

    THORNTON
      BUSINESS SECURITY TRUST

     

    By: 
      /s/
      Jeffrey Brown

    Name:
      Jeffrey Brown

    Title:
      Trustee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]