Document:

LETTER
      OF INTENT

    

    

    The
      purpose of this Letter of Intent is to establish the basic points of agreement
      between Vinyl Trends, Inc., hereinafter referred to as “Seller”, and 360
      Interchange, Inc., hereinafter referred to as “Buyer”, concerning the
      formalizing of their relationship such that Buyer will purchase all of the
      shares of Seller as set forth below. It is agreed that this instrument
      represents an outline for discussion and an aid for the composition of a formal
      and binding agreement between these parties. It is not intended that this
      instrument will be a binding agreement.

    

    

    1.
      Structure
      of Transaction:
      This
      will be a transaction in which Buyer will acquire all the shares of a converted
      unlimited liability corporation of the Seller, hereinafter referred to as the
      “Business”. Buyer shall be entitled to have the shares transferred into Buyer’s
      own name or a separate entity as it shall elect. 

    

    2.
      Cash
      Payment:
      At
      closing, Seller shall receive Buyer’s promissory note in the sum of CDN
      $600,000. The payment terms will be CDN $150,000 within four months of closing
      and the balance of CDN $450,000 payable in quarterly installments of CDN $37,500
      commencing three months after the initial payment. Interest will not accrue
      on
      said sum.

    

    3.
      Share
      Issuance:
      Buyer
      shall agree to issue and Seller shall receive common stock in Buyer with a
      value
      totaling USD $5,000,000, with a cap of 5,000,000 shares. The value of common
      shares that Buyer will issue to Seller will be reduced by $5,000,000 minus
      five
      times the after-tax net income (in U.S. Dollars) of Seller for the year ended
      December 31, 2007 and prepared pursuant to US Generally Accepted Accounting
      Principles with no increase or decrease for income or expense items outside
      the
      ordinary course of business. In particular, but not so as to limit the
      foregoing, future year sales will not be treated as current year sales and
      expenditures on capital assets will be amortized over their useful life. Subject
      to pre-approval by Buyer, certain Seller’s expenses incurred in 2007 which will
      not benefit 2007 but will benefit 2008 and beyond may be excluded from the
      net
      income amount. The number of shares to be issued to Seller will be based on
      the
      value as determined by the formula mentioned formerly divided by the share
      value
      of Buyer on February 15, 2008. The shares will be issued to Seller at the later
      of February 16, 2008 or the close of Buyer's audit of the Business’ December 31,
      2007 financial statements if Buyer elects to have the Business audited by
      outside auditors. 

    

    4.
      Employment
      Agreement:
      This
      sale is contingent upon Buyer and Seller’s principals, Rob Kuepfer and Shannon
      Kuepfer, entering into employment agreements for 2007 and a minimum of five
      years commencing January 1, 2008. It is understood the employment agreement
      with
      Rob Kuepfer will include a base salary of USD $100,000. Rob will be entitled
      to
      receive 10% of the net income of the Business for calendar year 2008 that is
      in
      excess of USD $250,000 net income. Rob will receive 300,000 stock options,
      subject to the terms of the Buyer’s stock option agreement. Both of the Kuepfers
      will be agreeing to restrictive covenants to not compete. The agreements will
      also entail Rob Kuepfer buying key man life insurance as of the effective date
      of the transaction and for the term of the employment agreement with limits
      to
      be agreed upon between the parties. Rob’s completion of a full five years of
      employment is pivotal to the value of the Business to Buyer and the agreement
      will contain an appropriate adjustment to the purchase price for the Business
      should Rob fail to complete his performance for reasons within or beyond his
      control. Buyer is also intending to employ other existing employees of the
      Business and include them in Buyer’s stock option incentive plan for employees.

    

     

    
      	Letter
              of Intent -1-	
              Davis,
                Hearn, Saladoff

              BRIDGES
                & VISSER

              A
                Professional Corporation

              515
                EAST MAIN STREET

              ASHLAND,
                OREGON 97520

              (541)
                482-3111 FAX (541) 488-4455

              www.davishearn.com

            	 
	 	 	 

    

    
       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.
      Audits
      and Records:
      Buyer
      shall be entitled to audit all of Seller’s financial statements and financial
      records for the fiscal years ending July 31, 2004 to the present and Seller
      will
      fully cooperate in that regard. Seller shall also provide to Buyer detailed
      inventory listings and Buyer shall be entitled to audit inventory amounts with
      observation and testing by Buyer’s auditors. All of these audits will be at
      Buyer’s expense.

    

    6.
      Closing:
      This
      transaction shall close in escrow at __________________________ on

    ______________,
      2007. Buyer shall receive possession of the Business, and be entitled to all
      income therefrom, effective _____________.

    

    7.
      Indemnification:
      Seller
      will indemnify and hold Buyer harmless from all liability and claims which
      arise
      as a result of acts or omissions of Seller in connection with the operation
      of
      the Business. In particular, this indemnification will include protection
      against all claims of patent violation, copyright infringement, and unfair
      trade
      practices of any sort. The indemnification will include reimbursement of all
      costs of defense incurred by Buyer.

    

    8.
      Confidentiality:
      It is
      agreed that the composition and performance of this agreement will entail
      substantial sharing of information needed to be kept confidential and neither
      party will divulge any information received to third parties without the prior
      written consent of the party providing the confidential
      information.

    

    9.
      Representations:
      Seller
      represents that it has the unencumbered right to make this sale and that it
      has
      clear title to all assets comprising the Business. Seller has not received
      any
      notice of violation of the laws of any government entity affecting the Business
      or its operation. There are no claims, suits, or other proceedings pending
      or,
      to the best of Seller’s knowledge, threatened against or affecting the Business.
      Seller is duly incorporated and in good standing under the laws of the province
      of Ontario, Canada. The officers executing this document have full authority
      and
      legal capacity to execute same. All financial records delivered are accurate
      and
      complete to the best knowledge of Seller.

    

    10.
      Operation
      of the Business:
      Prior
      to closing, and until possession of the Business is delivered to Buyer, Seller
      will operate the Business in the usual manner and endeavor to maintain good
      relations with employees, suppliers, and customers.

    

    DATED
      this 8th day of February 2007.

    

      
        	
                Vinyl
                  Trends, Inc.

              	 	
                360
                  Interchange, Inc.

              
	 	 	 
	 	 	 
	
                By:_/S/
                  VINYL TRENDS, INC.

              	 	
                By:
                  /S/ 360 INTERCHANGE, INC.

              

      

    
       

      
        	Letter
                of Intent -2-	
                Davis,
                  Hearn, Saladoff

                BRIDGES
                  & VISSER

                A
                  Professional Corporation

                515
                  EAST MAIN STREET

                ASHLAND,
                  OREGON 97520

                (541)
                  482-3111 FAX (541) 488-4455

                www.davishearn.com______________________

    

    

    AGREEMENT
      AND PLAN OF EXCHANGE

    

    

    EMVELCO
      CORP.

    

    and

     

    

    DAVY
      CROCKETT GAS COMPANY, LLC

    

    _______________________

    

    

    

    

    May
      1,
      2008

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    AGREEMENT
      AND PLAN OF EXCHANGE

    

    

    THIS
      EXCHANGE AGREEMENT (the "Agreement") is made and entered into on May 1, 2008
      by
      and among EMVELCO Corp., a Delaware corporation (hereinafter referred to as
      “EMVELCO”) and DAVY CROCKETT GAS COMPANY, LLC, a Nevada limited liability
      company (hereinafter referred to as “DC Gas") and the members of DC Gas (the
“Members”). The individuals and entities above are referred to in this Agreement
      individually as a “Party” and collectively as the “Parties.”

     

    

    RECITALS

    

    A. EMVELCO
      is a corporation that files reports with the Securities and Exchange Commission
      ("SEC") pursuant to the Securities Exchange Act of 1934 (the "1934 Act"), as
      amended.

    

    B. EMVELCO
      is willing to acquire all of the issued and outstanding membership interests
      of
      DC Gas, owned by the Members in exchange for convertible notes issued by EMVELCO
      making DC Gas, inclusive of all of its assets, rights and interests, a
      wholly-owned subsidiary of EMVELCO, and the Members are willing to exchange
      all
      of the issued and outstanding membership interests in DC Gas in exchange for
      the
      convertible notes issued by EMVELCO.

    

    C. It
      is the
      intention of the Parties hereto that: (i) EMVELCO shall acquire all of the
      issued and outstanding membership interests of DC Gas in exchange for
      convertible notes (the "Exchange"); (ii) the Exchange shall qualify as a
      tax-free reorganization under Section 368(a)(1)(B) of the Internal Revenue
      Code
      of 1986, as amended (the "Code"), and related sections thereunder; and (iii)
      the
      Exchange shall qualify as a transaction in securities exempt from registration
      or qualification under the Securities Act of 1933, as amended (the "1933 Act")
      and under the applicable securities laws of each state or jurisdiction where
      the
      Shareholders of EMVELCO and the Members of DC Gas reside. 

    

    D. For
      federal income tax purposes, it is intended that the reorganization contemplated
      hereby shall qualify as a reorganization with the meaning of Section 368(a)
      of
      the Code.

    

    NOW,
      therefore, in consideration of the mutual covenants, agreements, representations
      and warranties contained in this Agreement, and for other good and valuable
      consideration, the receipt and adequacy of which are acknowledged, the Parties
      hereto agree as follows:

    

    

    SECTION
      1. OWNERSHIP OF EMVELCO AND DC GAS

    

    The
      Parties acknowledge that the ownership of the Companies, as of the date all
      Parties hereto have executed this Agreement, immediately prior to giving effect
      to the transactions hereunder, is as follows: 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.1. The
      authorized capital stock of EMVELCO currently consists of Thirty-Five Million
      (35,000,000) shares
      of
      common stock
      and Five
      Million (5,000,000) shares of preferred stock. At Closing, EMVELCO shall cause
      to be issued convertible notes (“Convertible Notes”), substantially in the form
      attached hereto as Exhibit A, that are convertible into Fifty Million
      (50,000,000) shares of EMVELCO common stock (the “EMVELCO
      Shares”)
      upon
      the shareholders holding a majority of the outstanding shares of common stock
      of
      EMVELCO approving the issuance of the EMVELCO Shares upon conversion of the
      Convertible Notes (the “Shareholder Approval”). Further, in accordance with
      Section 2 of this Agreement below, EMVELCO may issue additional Convertible
      Notes that are convertible into up to Two Hundred and Fifty Million
      (250,000,000) shares for consideration in this transaction if certain conditions
      are satisfied; provided, however, in the event that Shareholder Approval has
      been provided, then EMVELCO will issue shares of EMVELCO as opposed to
      Convertible Notes. EMVELCO will take the necessary steps to increase its
      authorized capital stock up to Four Hundred Million (400,000,000) shares of
      common stock in order to have available the necessary EMVELCO Shares for such
      issuance and distribution.

    

    1.2. The
      membership interests of DC Gas, currently consists of Ten Thousand units of
      membership interests and is owned of record and held beneficially by the
      Members. The Members currently own collectively 10,000 units of DC Gas which
      represents 100% of the outstanding units of DC Gas (the “DC Gas Units”) and the
      Members are the sole members of DC Gas. The Members will transfer their DC
      Gas
      Units to EMVELCO at the Closing and such DC Gas Units shall be free and clear
      of
      all liens.

    

    SECTION
      2.  EXCHANGE
      OF CONVERTIBLE NOTES AND DC GAS UNITS

    

    The
      Parties hereby acknowledge and agree to perform the following acts at the
      closing of the transactions contemplated herein (the “Closing”):

    

    2.1 Convertible
      Notes and Additional Convertible Notes.
      EMVELCO
      hereby agrees that it shall issue the Convertible Notes to the Members in
      exchange for their outstanding DC Gas Units in proportion to their membership
      interest. EMVELCO will issue Convertible Notes in the amount of $25,000,000
      concurrently with execution of this Agreement and the remaining Convertible
      Notes in the amount of $25,000,000 shall be released and distributed in
      accordance with the following phases: 

    

    
      	·  	
              Convertible
                Notes in the amount of $5,000,000 shall be issued upon the first
                well
                going into production. 

            

    

    
      	·  	
              Convertible
                Notes in the amount of $5,000,000 shall be issued upon the second
                well
                going into production, 

            

    

    
      	·  	
              Convertible
                Notes in the amount of $5,000,000 shall be issued upon the third
                well
                going into production, 

            

    

    
      	·  	
              Convertible
                Notes in the amount of $5,000,000 shall be issued upon the fourth
                well
                going into production and 

            

    

    
      	·  	
              Convertible
                Notes in the amount of $5,000,000 shall be issued upon the fifth
                well
                going into production. 

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    The
      Convertible Notes shall be issued to the Members in the amounts set forth next
      to their respective names on Schedule
      2.1
      to this
      Agreement. The Members may be entitled to receive Convertible Notes up to an
      additional amount of $200,000,000 (the “Additional Convertible Notes”) in
      accordance with the formula set forth on Schedule 2.1 depending upon the gross
      revenue of DC Gas. The gross revenue shall be the revenue generated from that
      certain land rights held by DC Gas located in Crockett County, Texas less
      concession fees and taxes. 

     

    2.2 DC
      Gas
      Units.
      The
      Members hereby agree and shall transfer to EMVELCO, on the Closing Date, all
      of
      the Membership Units of DC Gas representing 100% interest in DC
      Gas.

    

    2.3 Delivery
      of Share and Membership Certificates.
      On the
      Closing Date, EMEVELCO will deliver to the Members the Convertible Notes.
      Simultaneously, the Members will deliver the certificates representing the
      DC
      Gas Units to EMVELCO with executed stock powers.

    

    2.4 Other
      Transfer Documents.
      At the
      Closing, the Parties each shall execute and deliver such sale and transfer
      documents and agreements reasonably requested by the other Party, including
      customary representations and warranties that the Convertible Notes and the
      DC
      Gas Units, respectively, are free and clear of any security interest, liens,
      charges, claims and that, upon such transfer and sale by the Parties, each
      Party
      shall hold good and marketable title to the Convertible Notes or DC Gas Units
      (as the case may be). 

    

    2.5
       Ownership
      After Transfer.
      The
      Parties acknowledge that after consummation of the transfers described above,
      EMVELCO shall own 100% of DC Gas. 

      

    2.6  Advisor’s
      Fee.
      C.
      Properties Ltd., a Barbados company (the “Advisor”) shall be paid a fee for
      rendering consulting services in connection with this transaction (the
“Advisor’s Fee”). The Advisor’s Fee shall be the greater of (i) five percent
      (5%) of the dollar value of the Convertible Notes and the Additional Convertible
      Notes issued to the Members not to exceed $12,500,000 or (ii) $10,000,000;
      which
      is to be paid by EMVELCO. The Advisor has agreed that in lieu of cash payment
      it
      will receive shares of stock of the Atia Group Ltd. (the “Atia Shares”). The
      Advisor has agreed that, in lieu of cash payment, it will receive an aggregate
      of up to 734,060,505 shares of stock of the Atia Group Ltd. of which 200,000,000
      shares shall be transferred by EMVELCO to the Advisor at Closing effective
      as of January 1, 2008,
      200,000,000 shares shall be transferred by EMVELCO to the Advisor upon the
      first
      DC Gas well going into production, 200,000,000 shall be transferred by EMVELCO
      to the Advisor upon the second DC Gas well going into production and 134,060,505
      shares shall be transferred by EMVELCO to the Advisor upon the third DC Gas
      well
      going into production. In addition, upon a fourth DC Gas well going into
      production, EMVELCO shall transfer an additional 50,366,671 shares of Atia
      Group
      Ltd. The Advisor’s Fee shall be deposited in an Escrow Account in accordance
      with Section 8.4 herein. 

     

    SECTION
      3. REPRESENTATIONS AND WARRANTIES OF EMVELCO

    

    EMVELCO,
      to the best of its knowledge and belief, hereby represents and warrants as
      follows:

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    3.1 Organization
      and Good Standing.
      EMVELCO
      is duly organized, validly existing and in good standing under the laws of
      the
      State of Delaware, and is entitled to own or lease its properties and to carry
      on its business as and in the places where such properties are now owned, leased
      or operated and such business is now conducted. Other than as previously
      disclosed and an option to purchase 100,000 shares of common stock held by
      Yossi
      Attia, EMVELCO’s CEO, there are no outstanding subscriptions, rights, options,
      warrants or other agreements obligating EMVELCO to issue, sell or transfer
      any
      stock or other securities of EMVELCO, except simultaneously
      herewith.

    

    3.2 Intentionally
      left blank.
      

    

    3.3 Financial
      Statements, Books and Records.
      There
      has been previously delivered to DC Gas and the Members financial statements
      dated December 31, 2007 that fairly represent the financial position of
      EMVELCO.

    

    3.4 No
      Material Adverse Changes.
      Since
      the date of the Balance Sheet there has not been and there will not be before
      the Closing Date:

    

    (i) any
      material adverse change in the assets, operations, condition (financial or
      otherwise) or prospective business of EMVELCO;

    

    (ii) any
      damage, destruction or loss materially affecting the assets, prospective
      business, operations or condition (financial or otherwise) of EMVELCO, whether
      or not covered by insurance;

    

    (iii) any
      declaration, setting aside or payment of any dividend or distribution with
      respect to any redemption or repurchase of EMVELCO’s capital stock or the
      EMVELCO Shares; 

    

    (iv) any
      sale
      of an asset (other than in the ordinary course of business) or any mortgage
      or
      pledge by EMVELCO of any properties or assets; or

    

    (v) adoption
      of any pension, profit sharing, retirement, stock bonus, stock option or similar
      plan or arrangement.

    

    3.5 Taxes.
      EMVELCO
      has prepared and filed all appropriate federal, state and local tax returns
      for
      all periods prior to and through the date hereof for which any such returns
      have
      been required to be filed by it and has paid all taxes shown to be due by said
      returns or on any assessments received by it or has made adequate provision
      for
      the payment thereof.

    

    3.6 Compliance
      with Laws.
      EMVELCO
      has complied with all federal, state, county and local laws, ordinances,
      regulations, inspections, orders, judgments, injunctions, awards or decrees
      applicable to it or its business which, if not complied with, would materially
      and adversely affect the business of EMVELCO. 

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    3.7 No
      Breach.
      The
      execution, delivery and performance of this Agreement and the consummation
      of
      the transactions contemplated hereby will not:

    

    (i) violate
      any provision of the Articles of Incorporation or By-Laws of EMVELCO;

    

    (ii) violate,
      conflict with or result in the breach of any of the terms of, result in a
      material modification of, otherwise give any other contracting party the right
      to terminate, or constitute (or with notice or lapse of time or both constitute)
      a default under, any contract or other agreement to which EMVELCO is a party
      or
      by or to which it or any of its assets or properties may be bound or
      subject;

    

    (iii) violate
      any order, judgment, injunction, award or decree of any court, arbitrator or
      governmental or regulatory body against, or binding upon, EMVELCO, or upon
      the
      properties or business of EMVELCO; or 

    

    (iv) violate
      any statute, law or regulation of any jurisdiction applicable to the
      transactions contemplated herein which could have a material, adverse effect
      on
      the business or operations of EMVELCO.

    

    3.8 Actions
      and Proceedings.
      There
      is no outstanding order, judgment, injunction, award or decree of any court,
      governmental or regulatory body or arbitration tribunal against or involving
      EMVELCO. There is no action, suit or claim or legal, administrative or arbitral
      proceeding or (whether or not the defense thereof or liabilities in respect
      thereof are covered by insurance) pending or threatened against or involving
      EMVELCO or any of its properties or assets. There is no fact, event or
      circumstances that may give rise to any suit, action, claim, investigation
      or
      proceeding.

    

    3.9 Brokers
      or Finders.
      Any
      broker's or finder's fees will be paid by EMVELCO in connection with the
      transactions contemplated by this Agreement.

    

    3.10 Real
      Estate.
      EMVELCO
      has previously disclosed to DC Gas the properties it owns and its interests
      in
      real estate. 

     

    3.11 Tangible
      and Intangible Assets.
      EMVELCO
      has full title and interest in all machinery, equipment, furniture, leasehold
      improvements, fixtures, vehicles, structures, patents, licenses owned or leased
      or licensed by EMVELCO, any related capitalized items or other tangible or
      intangible property material to the business of EMVELCO (the "Tangible and
      Intangible Assets"). EMVELCO holds all rights, title and interest in all the
      Tangible and Intangible Assets owned by it on the Balance Sheet or acquired
      by
      it after the date of the Balance Sheet, free and clear of all liens, pledges,
      mortgages, security interests, conditional sales contracts or any other
      encumbrances except as set forth on Schedule 3.11. All of the Tangible and
      Intangible Assets are in good operating condition and repair and are usable
      in
      the ordinary course of business of EMVELCO and conform to all applicable laws,
      ordinances and governmental orders, rules and regulations relating to their
      construction and operation. 

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    3.12 Liabilities.
      EMVELCO
      does not have any direct or indirect indebtedness, liability, claim, loss,
      damage, deficiency, obligation or responsibility, known or unknown, fixed or
      unfixed, liquidated or unliquidated, secured or unsecured, accrued or absolute,
      contingent or otherwise, including, without limitation, any liability on account
      of taxes, any other governmental charge or lawsuit (all of the foregoing
      collectively defined to as "Liabilities"), which were not fully, fairly and
      adequately reflected on the Balance Sheet. As of the Closing Date, EMVELCO
      will
      not have any Liabilities, other than Liabilities fully and adequately reflected
      on the Balance Sheet, except for Liabilities incurred in the ordinary course
      of
      business.

    

    3.13 Operations
      of EMVELCO.
      From
      the date of the Balance Sheet and through the Closing Date hereof EMVELCO has
      not and will not have:

    

    (i) incurred
      any indebtedness for borrowed money, other than as disclosed previously in
      connection with EMVELCO’s real estate properties;

    

    (ii) declared
      or paid any dividend or declared or made any distribution of any kind to any
      member, or made any direct or indirect redemption, retirement, purchase or
      other
      acquisition of any shares of its capital stock;

    

    (iii) made
      any
      loan or advance to any shareholder, officer, director, employee, consultant,
      agent or other representative or made any other loan or advance otherwise than
      in the ordinary course of business; 

    

    (iv) except
      in
      the ordinary course of business, incurred or assumed any indebtedness or
      liability (whether or not currently due and payable);

    

    
      (v)  disposed
        of any assets of EMVELCO except in the ordinary course of business;

    

    

    (vi) materially
      increased the annual legal or compensation of any executive employee of ERC;
      

     

    (vii) increased,
      terminated, amended or otherwise modified any plan for the benefit of employees
      of EMVELCO;

    

    (viii) issued
      any equity securities or rights to acquire such equity securities;
      or

    

    (ix) except
      in
      the ordinary course of business, entered into or modified any contract,
      agreement or transaction.

    

    3.14 Capitalization.
      EMVELCO
      has not granted, issued or agreed to grant, issue or make available any
      warrants, options, subscription rights or any other commitments of any character
      relating to the issued or unissued shares of common stock of EMVELCO, other
      than
      in this Agreement and the option to purchase 100,000 shares of common stock
      issued to Yossi Attia, EMVELCO’s CEO.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.15 Full
      Disclosure.
      No
      representation or warranty by EMVELCO in this Agreement or in any document
      or
      schedule to be delivered by them pursuant hereto, and no written statement,
      certificate or instrument furnished or to be furnished to DC Gas and its Members
      hereto or in connection with the negotiation, execution or performance of this
      Agreement, contains or will contain any untrue statement of a material fact
      or
      omits or will omit to state any fact necessary to make any statement herein
      or
      therein not materially misleading or necessary to a complete and correct
      presentation of all material aspects of the businesses of EMVELCO. The foregoing
      notwithstanding, all of the aforementioned representations and warranties are
      qualified to extent that any of the companies or businesses acquired or to
      be
      acquired pursuant to EMVELCO acquisition program may include events, conditions
      or circumstances involving matters contemplated by such representations and
      warranties, the disclosure of which will not be made pursuant to this Agreement.
      

    

    SECTION
      4. REPRESENTATIONS AND WARRANTIES OF DC GAS AND ITS
      MEMBERS

    

    DC
      Gas
      and its Members hereby represent and warrant to EMVELCO as follows:

    

    4.1 Organization
      and Good Standing.
      DC Gas
      is a limited liability company duly organized, validly existing and in good
      standing under the laws of the State of Nevada and is entitled to own or lease
      its properties and to carry on its business as and in the places where such
      properties are now owned, leased, or operated and such business is now
      conducted. The authorized equity of DC Gas consists of 10,000 units of
      Membership Interests, all of which are issued and outstanding to the Members.
      DC
      Gas is duly licensed or qualified and in good standing as a foreign corporation
      where the character of the properties owned by DC Gas or the nature of the
      business transacted by it make such license or qualification necessary. DC
      Gas
      does not have any subsidiaries.

    

    4.2 The
      DC
      Gas Units.
      The DC
      Gas Units to be transferred to EMVELCO have been or will have been duly
      authorized by all necessary company and Member actions and, when so issued
      in
      accordance with the terms of this Agreement, will be validly issued, fully
      paid
      and non-assessable.

    

    4.3 Financial
      Statements; Books and Records.
      There
      has been previously delivered to EMVELCO, financial statements dated March
      31,
      2008 that fairly represent the financial position of DC Gas. 

    

    4.4 No
      Material Adverse Changes.
      Since
      the date of formation of DC Gas, there has not been and there will not be before
      the date of Closing:

    

    (i) any
      material adverse change in the assets, operations, condition (financial or
      otherwise) or prospective business of DC Gas; 

    

    (ii) any
      damage, destruction or loss materially affecting the assets, prospective
      business, operations or condition (financial or otherwise) of DC Gas, whether
      or
      not covered by insurance;

    

    
      
        
        

      

      
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    (iii) any
      declaration, setting aside or payment of any dividend or distribution with
      respect to any redemption or repurchase of DC Gas' capital; 

    

    (iv) any
      sale
      of an asset (other than in the ordinary course of business) or any mortgage
      or
      pledge by DC Gas of any properties or assets; or

    

    (v) adoption
      of any pension, profit sharing, retirement, stock bonus, stock option or similar
      plan or arrangement.

    

    4.5 Compliance
      with Laws.
      DC Gas
      has complied with all federal, state, county and local laws, ordinances,
      regulations, inspections, orders, judgments, injunctions, awards or decrees
      applicable to their businesses which, if not complied with, would materially
      and
      adversely affect the business of DC Gas.

    

    4.6 No
      Breach.
      The
      execution, delivery and performance of this Agreement and the consummation
      of
      the transactions contemplated hereby will not: 

    

    (i) violate
      any provision of the Articles of Organization or Operating Agreement of DC
      Gas;

    

    (ii) violate,
      conflict with or result in the breach of any of the terms of, result in a
      material modification of, otherwise give any other contracting party the right
      to terminate, or constitute (or with notice or lapse of time or both constitute)
      a default under, any contract or other agreement to which DC Gas is a party
      or
      by or to which it or any of its assets or properties may be bound or subject,
      other than as previously disclosed in connection with the real estate or other
      holdings of DC Gas;

    

    (iii) violate
      any order, judgment, injunction, award or decree of any court, arbitrator or
      governmental or regulatory body against, or binding upon, DC Gas or upon the
      securities, properties or business of DC Gas; or 

    

    (iv) violate
      any statute, law or regulation of any jurisdiction applicable to the
      transactions contemplated herein.

    

    4.7 Actions
      and Proceedings.
      There
      is no outstanding order, judgment, injunction, award or decree of any court,
      governmental or regulatory body or arbitration tribunal against or involving
      DC
      Gas. There is no action, suit or claim or legal, administrative or arbitral
      proceeding or (whether or not the defense thereof or liabilities in respect
      thereof are covered by insurance) pending or threatened against or involving
      DC
      Gas or any of its properties or assets. 

    

    4.8 Brokers
      or Finders.
      There
      are no broker’s or finder’s fee due or payable by DC Gas in connection with the
      transactions contemplated by this Agreement.

    

    4.9 Liabilities.
      DC Gas
      does not have any direct or indirect indebtedness, liability, claim, loss,
      damage, deficiency, obligation or responsibility, known or unknown, fixed or
      unfixed, liquidated or unliquidated, secured or unsecured, accrued or absolute,
      contingent or otherwise, including, without limitation, any liability on account
      of taxes, mining claims, environmental claims any other governmental charge
      or
      lawsuit (all of the foregoing collectively defined to as "Liabilities"), which
      were not fully, fairly and adequately reflected on the financial statements.
      As
      of the Closing Date, DC Gas will not have any Liabilities, other than as
      previously disclosed, and except for Liabilities incurred in the ordinary course
      of business.

     

    
      
        
        

      

      
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    4.10 Operations
      of DC Gas .
      From
      the date of the organization of DC Gas and through the Closing Date DC Gas
      has
      not and will not have:

    

    (i) incurred
      any indebtedness for borrowed money;

    

    (ii) declared
      or paid any dividend or declared or made any distribution of any kind to any
      shareholder, or made any direct or indirect redemption, retirement, purchase
      or
      other acquisition of any shares of its capital stock;

    

    (iii) made
      any
      loan or advance to any member, officer, director, employee, consultant, agent
      or
      other representative or made any other loan or advance otherwise than in the
      ordinary course of business; 

    

    (iv) except
      in
      the ordinary course of business, incurred or assumed any indebtedness or
      liability (whether or not currently due and payable);

    

    (v) disposed
      of any assets of DC Gas except in the ordinary course of business;

    

    (vi) incurred
      any compensation for any executive employee of DC Gas;

    

    (vii) adopted,
      increased, terminated amended or otherwise modified any plan for the benefit
      of
      employees of DC Gas;

    

    (viii) issued
      any equity securities or rights to acquire such equity securities except as
      described herein; or

    

    (xiv)
      except in the ordinary course of business, entered into or modified any
      contract, agreement or transaction.

    

    4.11 Authority
      to Execute and Perform Agreements.
      DC Gas
      has the full legal right and power and all authority and approval required
      to
      enter into, execute and deliver this Agreement and to perform fully its
      obligations hereunder. This Agreement has been duly executed and delivered
      and
      is the valid and binding obligation of DC Gas enforceable in accordance with
      its
      terms, except as may be limited by bankruptcy, moratorium, insolvency or other
      similar laws generally affecting the enforcement of creditors' rights. The
      execution and delivery of this Agreement and the consummation of the
      transactions contemplated hereby and the performance by DC Gas of this
      Agreement, in accordance with its respective terms and conditions will not:
      

    

    
      
        
        

      

      
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    (i) require
      the approval or consent of any governmental or regulatory body, or the approval
      or consent of any other person; 

    

    (ii) conflict
      with or result in any breach or violation of any of the terms and conditions
      of,
      or constitute (or with any notice or lapse of time or both would constitute)
      a
      default under, any order, judgment or decree applicable to DC Gas or any
      instrument, contract or other agreement to which DC Gas is a party or by or
      to
      which DC Gas is bound or subject; or 

    

    (iii) result
      in
      the creation of any lien or other encumbrance on the assets or properties of
      DC
      Gas. 

    

    4.12 Full
      Disclosure.
      No
      representation or warranty by DC Gas or the Members in this Agreement or in
      any
      document or schedule to be delivered by it pursuant hereto, and no written
      statement, certificate or instrument furnished or to be furnished to EMVELCO
      pursuant hereto or in connection with the execution or performance of this
      Agreement, contains or will contain any untrue statement of a material fact
      or
      omits or will omit to state any fact necessary to make any statement herein
      or
      therein not materially misleading or necessary to a complete and correct
      presentation of all material aspects of the business of DC Gas. The foregoing
      notwithstanding, all of the aforementioned representations and warranties are
      qualified to extent that any of the companies or businesses acquired or to
      be
      acquired pursuant to DC Gas’ acquisition program may include events, conditions
      or circumstances involving matters contemplated by such representations and
      warranties, the disclosure of which will not be made pursuant to this Agreement.
      

    

    4.13 Real
      Estate and Assets.
      DC Gas
      does not own or have any interests in real estate, only interests in drilling
      rights. 

    

    4.14 Several
      Representations by the Members.
      Each
      Member, for himself or itself:

     

    (i) Is
      the
      sole record and beneficial owner of the DC Gas Units subject to no
      Claim.

     

    (ii) Has
      full
      power and authority to carry out the transactions provided for in this
      Agreement, and this Agreement constitutes the legal, valid and binding
      obligations of such Member, enforceable in accordance with its terms, except
      as
      enforceability may be limited by bankruptcy, insolvency and other laws of
      general application affecting the enforcement of creditor’s rights and that any
      remedies in the nature of equitable relief are in the discretion of the court.
      All necessary action required to be taken by Members for the consummation of
      the
      transactions contemplated by this Agreement has been taken.

     

    (iii) Is
      an
      accredited investor within the meaning of Rule 501 of the Commission pursuant
      to
      the Securities Act;

     

    (iv) Is
      acquiring the Convertible
      Notes and the Additional Convertible Notes pursuant to this Agreement for
      investment and not with a view to the sale or distribution thereof;

     

    
      
        
        

      

      
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    (v) Understands
      that shares of common stock issuable upon conversion of the Convertible Notes
      and the Additional Convertible Notes, which will only occur if EMVELCO obtains
      Shareholder Approval, constitute restricted securities within the meaning of
      Rule 144 of the Securities Exchange Commission (the “Commission”) pursuant to
      the Securities Act and may not be sold or otherwise transferred except pursuant
      to an effective registration statement or an exemption from the registration
      requirements of the Securities Act;

     

    (vi) Has
      been
      advised by counsel as to the meaning and implication of the acquisition of
      restricted securities and the illiquid nature of the shares issued upon
      conversion of the Convertible Notes and the Additional Convertible Notes, if
      any;

     

    (vii) Acknowledges
      that the certificate or certificates for the shares issuable upon conversion
      of
      the Convertible Notes and the Additional Convertible Notes, if any, will bear
      EMVELCO’s customary Securities Act restrictive legend; 

     

    (viii) Represents
      that he or she understands that an investment in the Convertible Notes and
      the
      Additional Convertible Notes involves a high degree of risk; and 

     

    (ix) Represents
      that the execution and performance of this Agreement will not constitute a
      breach of any contract to which such Member is a party or by which he or she
      is
      bound, and will not violate any judgment, decree, order, writ, rule, statute,
      or
      regulation applicable to such Members or his or her properties. 

    

    SECTION
      5. COVENANTS

    

    5.1 Corporate
      Examinations and Investigations.
      Prior
      to the Closing Date, the Parties acknowledge that they have been entitled,
      through their employees and representatives, to make such investigation of
      the
      assets, properties, business and operations, books, records and financial
      condition of the other as they each may reasonably require. No investigation
      by
      a Party hereto shall, however, diminish or waive in any way any of the
      representations, warranties, covenants or agreements of the other party under
      this Agreement.

    

    5.2 Expenses.
      Each
      party hereto agrees to pay its own costs and expenses incurred in negotiating
      this Agreement and consummating the transactions described herein.

    

    5.3 Further
      Assurances.
      The
      Parties shall execute such documents and other papers and take such further
      actions as may be reasonably required or desirable to carry out the provisions
      hereof and the transactions contemplated hereby. Each such Party shall use
      its
      best efforts to fulfill or obtain the fulfillment of the conditions to the
      Closing, including, without limitation, the execution and delivery of any
      documents or other papers, the execution and delivery of which are necessary
      or
      appropriate to the Closing.

    

    5.4 Confidentiality.
      In the
      event the transactions contemplated by this Agreement are not consummated,
      each
      of the Parties hereto agree to keep confidential any information disclosed
      to
      each other in connection therewith for a period of two (2) years from the date
      hereof; provided, however, such obligation shall not apply to information which:
      

    

    
      
        
        

      

      
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    (i) at
      the
      time of disclosure was public knowledge; 

    

    (ii) after
      the
      time of disclosure becomes public knowledge (except due to the action of the
      receiving Party); or

    

    (iii) the
      receiving Party had within its possession at the time of
      disclosure.

    

    5.5 Membership
      Certificates.
      At the
      Closing, the Members shall have delivered the certificates representing the
      DC
      Gas Units duly endorsed so as to make EMVELCO the sole owner thereof. At such
      Closing, ENVELCO shall issue to the Members the Convertible Notes as
      applicable.

    

    5.6 Investment
      Intent.
      The
      Members understand that the Convertible Notes being issued have not been
      registered or approved for sale by the SEC or any state securities authority.
      

    

    5.7.Board
      of Directors of EMVELCO.
      At and
      as of the Closing, a new Board of Directors and new Officers shall be elected
      for EMVELCO. 

     

    5.8 Managers
      of DC Gas.
      At and
      as of the Closing, the Managers and Officers of DC Gas shall remain the same.
      

    

    5.9 Reporting
      Requirements.
      The
      Parties hereto, and specifically DC Gas the Members, acknowledge that due to
      EMVELCO being subject to the 1934 Act that there are definite reporting
      requirements and that the Parties agree that they shall continue to comply
      with
      all financial reporting requirements, including but not limited to monthly
      and
      quarterly reports and any acceptance of an auditor appointment selected by
      EMVELCO in the event that there is a consolidation reporting on an equity
      level.

    

    5.10 Consummation
      of Transactions.
      As of
      and through the Closing, the Parties shall not have caused or permitted to
      occur
      or be made any event or condition of any character which would prevent
      consummation of the transactions contemplated by this Agreement or cause any
      of
      the transactions contemplated by this Agreement to be rescinded following
      consummation.

    

    SECTION
      6. SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF EMVELCO, DC GAS AND THE MEMBERS
      

    

    Notwithstanding
      any right of a Party fully to investigate the affairs of another Party , the
      former shall have the right to rely fully upon the representations, warranties,
      covenants and agreements of a Party contained in this Agreement or in any
      document delivered by such Party or any of its representatives, in connection
      with the transactions contemplated by this Agreement. All such representations,
      warranties, covenants and agreements shall survive the execution and delivery
      hereof and the Closing Date hereunder for twelve (12) months following the
      Closing.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    SECTION
      7. INDEMNIFICATION

    

    7.1 Obligation
      of EMVELCO to Indemnify.
      Subject
      to the limitations on the survival of representations and warranties contained
      in Section 6, EMVELCO hereby agrees to indemnify, defend and hold harmless
      DC
      Gas and the Members from and against any losses, liabilities, damages,
      deficiencies, costs or expenses (including interest, penalties and reasonable
      attorneys' fees and disbursements) (a "Loss") based upon, arising out of or
      otherwise due to any inaccuracy in or any breach of any representation,
      warranty, covenant or agreement of EMVELCO contained in this Agreement or in
      any
      document or other writing delivered pursuant to this Agreement.

    

    7.2 Obligation
      of DC Gas and the Members to Indemnify.
      Subject
      to the limitations on the survival of representations and warranties contained
      in Section 6, DC Gas and the Members agree to indemnify, defend and hold
      harmless EMVELCO from and against any Loss, based upon, arising out of or
      otherwise due to any inaccuracy in or any breach of any representation,
      warranty, covenant or agreement made by any of them and contained in this
      Agreement or in any document or other writing delivered pursuant to this
      Agreement.

    

    SECTION
      8. CLOSING

    

    8.1 Closing.
      The
      Closing shall take place at 1061 1⁄2 N. Spalding Avenue, Los Angeles, CA 90046 or
      at such other later time or place as may be agreed upon by the Parties hereto
      on
      the date of the execution of this Agreement. At the Closing, the Parties shall
      provide each other with such documents as may be necessary or appropriate in
      order to consummate the transactions contemplated hereby including evidence
      of
      due authorization of the Agreement and the transactions contemplated
      hereby.

    

    8.2 Ancillary
      Documents.
      At the
      Closing, or as soon thereafter as practicable, the Parties shall deliver fully
      executed documents as follows:

    

    8.2.1 Any
      amendments to the Articles of Incorporation or Bylaws increasing the number
      of
      directors on the Articles of Organization or Operating Agreement of DC
      Gas.

    

    8.2.2 Any
      other
      document, notice, filing or agreement as reasonably requested by a Party or
      necessary to effect the intent of this Agreement.

    

    8.2.3
      The
      Parties agree that the operating and drilling of the Wolfcamp Canyon Sandstone
      Program shall be operated and/or drilled exclusively by Ozona Natural Gas
      Company, LLC (unaffiliated third party) at the relevant market rates.

    

    8.3  Tax
      Matters.
      Each
      Party acknowledges and agrees that it has relied solely on counsel and
      accountants of its own selection for advice concerning the tax implications,
      if
      any, of stock being transferred, debts being assumed, satisfied or contributed,
      and other transfers hereunder. The Parties agree that it is expressly understood
      and agreed that as between the Parties, any and all obligations for reporting
      and paying any tax assessments, penalties or interest shall be the sole and
      exclusive responsibility of the Party receiving the benefit and each Party
      shall
      indemnify the other Party for any liability of the first Party incurred or
      as a
      result of failure to pay such tax assessments, penalties or interest; provided,
      however, each Party shall file its tax return and report the transactions
      contemplated herein in a manner consistent with the terms of this
      Agreement.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    8.4  Escrow.
      The
      Advisor’s Fee which shall be paid in shares of stock from the Atia Group shall
      be deposited into an Escrow Account and held by the Escrow Agent in accordance
      with the Escrow Instructions to be delivered to the Escrow Agent.

    

    8.5 Employment
      Agreement.
      EMVELCO
      shall enter into Executive Services Agreement with Mike M. Mustafoglu as
      Chairman. 

    

    8.6 Board
      of Directors.
      EMVELCO
      shall have six (6) members on the Board of Directors. Following
      the Closing, EMVELCO shall cause the resignations of certain representatives
      on
      the Board of Directors and Members shall be entitled to select and fill three
      (3) seats on the Board. 

    

    SECTION
      9. GENERAL TERMS

    

    9.1 Waiver.
      The
      waiver of a breach of this Agreement or the failure of any party hereto to
      exercise any right under this Agreement shall in no event constitute waiver
      as
      to any future breach whether similar or dissimilar in nature or as to the
      exercise of any further right under this Agreement.

    

    9.2 Amendment.
      This
      Agreement may be amended or modified only by an instrument of equal formality
      signed by the parties or the duly authorized representatives of the respective
      parties.

    

    9.3 Assignment.
      This
      Agreement is not assignable except by operation of law.

    

    9.4 Notices.
      The
      mailing addresses of both parties of this Agreement shall be as from time to
      time designated in writing.

    

    9.5 Publicity.
      No
      publicity release or announcement concerning this Agreement or the transactions
      contemplated hereby shall be issued by either party hereto at any time from
      the
      signing hereof without advance approval in writing of the form and substance
      thereof by the other party.

    

    9.6 Entire
      Agreement.
      This
      Agreement (including the Exhibits and Schedules hereto) and the collateral
      agreements executed in connection with the consummation of the transactions
      contemplated herein contain the entire agreement among the parties and supersede
      all prior agreements, written or oral, with respect thereto. No amendment of
      this Agreement shall be enforceable unless signed by the party to be charged
      with performance thereto.

    

    9.7 Headings.
      the
      headings in this Agreement are for reference purposes only and shall not in
      any
      way affect the meaning or interpretation of this Agreement.

    

    
      
        
        

      

      
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    9.8 Severability
      of Provisions.
      The
      invalidity or unenforceability of any term, phrase, clause, paragraph,
      restriction, covenant, agreement or other provision of this Agreement shall
      in
      no way affect the validity or enforcement of any other provision or any part
      thereof.

    

    9.9 Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed, shall constitute an original copy hereof, but all of which together
      shall consider but one and the same document.

    

    9.10 Professional
      Advice. Each
      Party hereto has been provided with adequate opportunity to consult with legal,
      tax and accounting professionals of their own independent selection regarding
      the legal, tax and accounting implications of entering into this Agreement
      and
      hereby warrants, covenants and agrees that he/she/it has not relied on any
      oral
      or written communication or advice by another party or any agent, accountant
      or
      attorney of another party except as otherwise specifically set forth herein
      with
      respect to the accuracy of financial statements. 

    

    9.11 Expenses.
      Each of
      the parties hereto shall pay its own expenses in connection with this Agreement
      and the transactions contemplated hereby, including without limitation the
      fees
      and expenses of legal counsel and certified public accountants. 

    

    9.12 Brokers.
      The
      Parties hereto warrant, covenant and agree that there has been no act or
      omission by any party hereto that would give rise to any valid claim against
      any
      of the parties hereto for a brokerage commission, finder's fee, or other like
      payment in connection with the transactions contemplated hereby. 

    

    9.13 Successors
      and Assigns.
      All
      rights and obligations created by this Agreement shall be binding upon and
      inure
      to the benefit of the parties hereto, their successors and assigns. Whenever
      used, the singular number shall include the plural, the plural the singular,
      and
      the use of any gender shall include all genders. 

    

    9.14 Choice
      of Law, Binding Arbitration and Attorney’s Fees. 

    

    Any
      controversy or claim arising out of or relating to this Agreement, or the breach
      thereof, including any purchase or exchange of capital stock, shall be resolved
      under California law without regard to conflicts of laws except insofar as
      securities issues are concerned which shall be resolved by reference to the
      federal securities laws through binding arbitration in accordance with the
      Commercial Arbitration Rules of the American Arbitration Association and
      judgment upon the award rendered by the arbitrator(s) may be entered in any
      court having jurisdiction thereof. Should any arbitration or lawsuit be filed
      pursuant to or as a consequence of this Agreement, including an action for
      declaratory relief, the prevailing party shall be entitled to the recovery
      of
      reasonable attorney's fees in addition to costs. Venue for any controversy
      or
      claim, regardless of whether filed in arbitration or court, shall be in the
      City
      of Los Angeles, California. the parties hereto may wish to seek the advice
      of
      legal counsel of their own choosing regarding the importance of this paragraph.
      Execution of this document will result in a waiver of the right to a jury trial
      and other procedures inherent in civil litigation in the event of a dispute
      concerning this Agreement.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    9.15 Exclusive
      Remedy.
      By
      executing this Agreement, the Parties hereby agree that the rights and remedies
      provided in this Agreement shall be the sole and exclusive rights and remedies
      surviving as between and among the Parties hereto relating to the facts and
      circumstances encompassed by this Agreement.

    

    9.16 Construction
      of Agreement.
      Each
      Party hereto has cooperated in the drafting and preparation of this Agreement,
      and, therefore, any construction of the intent of the Parties hereto or language
      hereof to be made shall not be construed against any of the Parties
      hereto.

    

    9.17 Authority;
      Valid and Binding Agreement of Parties.
      Each
      Party executing this Agreement hereby represents and warrants that it has full
      power and authority to enter into this Agreement, is free to enter into this
      Agreement and is not subject to any obligations or disabilities which will
      or
      might prevent or interfere with keeping and performing all of the agreements,
      covenants and conditions to be kept or performed hereunder. This Agreement
      is a
      legal, valid and binding obligation of each Party. No third party consents
      or
      approvals are required, other than those stated herein.

    

    9.18 Binding
      Effect of Agreement.
      The
      Parties hereby agree that the terms contained in this Agreement shall be binding
      upon and inure to the benefit of each of the Parties hereto, including any
      and
      all of their past or present agents, associates, partners, officers, directors,
      shareholders, trustees, beneficiaries and employees, including attorneys and
      experts, and actual, implied or ostensible agents, and any and all of their
      heirs, executors, successors and assignees. The obligations and duties of each
      Party hereunder are personal and not assignable and any attempt of assignment
      or
      transfer of a Party’s duties or obligation, unless otherwise anticipated and
      provided for in this Agreement.

    

    9.19 Governing
      Law; Enforceability.
      This
      Agreement has been executed and delivered within the State of California, and
      the rights and obligations of the Parties hereunder shall be governed by,
      construed and enforced in accordance with the laws of the State of California
      without regard to the conflicts of law doctrine. Each
      Party irrevocably consents to the exclusive jurisdiction and venue of any
      federal or state court within Los Angeles County, California, in connection
      with
      any matter based upon or arising out of this Agreement or the matters
      contemplated in this Agreement, agrees that process may be served upon them
      in
      any manner authorized by the laws of the State of California for such persons,
      and waives and covenants not to assert or plead any objection that they might
      otherwise have to such jurisdiction, venue and such process. 

    

    9.20 Attorneys’
      Fees.
      In the
      event any action or suit is brought by a Party hereto against another Party
      hereunder by reason of any breach of any of the covenants, conditions,
      agreements or provisions on the part of another Party arising out of this
      Agreement, the prevailing Party shall be entitled to recover from the other
      Party all costs and expenses of the action or suit, including reasonable
      attorneys’ fees.

    

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF,
      the
      Parties have executed this Agreement on the date first above
      written.

    

    

    EMVELCO
      CORP., 

    a
      Delaware Corporation

    

    

    By:
      /s/
      Yossi Attia __

    Name:
      Yossi Attia

    Its:
      Chief Executive Officer

    

    

    DAVY
      CROCKETT GAS COMPANY, LLC, 

    a
      Nevada Limited Liability Company

     

                                           
      By: TransGlobal Financial Services LLC,

    Its:
      Manager

     

    By:
      /s/
      Mike M. Mustafoglu          

                                          
      Mike M. Mustafoglu, President

        

    By:
      Robin
      Ann Gorelick, Esq. 

    Its:
      Manager

    

    

    /s/
      Robin Ann Gorelick_____

    Robin
      Ann
      Gorelick Esq.

    

    

    DAVY
      CROCKETT GAS COMPANY, LLC MEMBERS:

    

    PMFT
      HOLDINGS, LTD.

    

    

    By: /s/
      Evan James    

          
      Evan James, Officer

    

    CORPORATE
      GROUP SERVICES LIMITED

    

    

    By: /s/
      Hulya Oransel    

    Hulya
      Oransel, President

    

    

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    

    

    

    SULLY,
      LLC

    

    

    By:
      /s/
      Don Sullivan   

         
      Don Sullivan, Manager

    

    

    BEACON
      FINANCIAL CORP. 

    

    

    

    By:
      /s/
      Richard Fitzler       

         
      Richard Fitzler, President

    

    

    

    

    

    ADVISOR
      (with respect to Section 2.6 ONLY):

    

    C.
      PROPERTIES LTD. 

    

    By:___/s/
      Younes Berrada_______________________

    Name:
      Younes Berrada

    Title:
      President

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2.1

    

    
      	
              Name

            	
              DC
                Gas Units

            	
              %
                of Convertible Notes

            
	
              PMFT
                Holdings, Ltd.

            	
              3,000

            	
              30%

            
	
              CORPORATE
                GROUP SERVICES LIMITED

            	
              3,000

            	
              30%

            
	
              Sully,
                LLC

            	
              2,000

            	
              20%

            
	
              Beacon
                Financial Corp.

            	
              2,000

            	
              20%

            

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Schedule
      2.1

    

    FORMULA
      FOR ISSUANCE OF ADDITIONAL CONVERTIBLE NOTES

    

    

    The
      Additional Convertible Notes shall not exceed $200,000,000 in principal value.
      The number of Additional Convertible Notes shall be issued within 30 days of
      the
      first, second, third, fourth and fifth anniversary of the Closing. The
      Additional Convertible Notes shall be issued to the Members in accordance with
      their ownership interest in the DC Gas Units. 

    

    The
      principal amount of Additional Convertible Notes to be issued shall be
      determined by subtracting $50,000,000 from the product of DC Gas’s gross revenue
      by .50. The conversion price for the Additional Convertible Notes will be
      EMVELCO’s market price, which is the 90 day average closing price prior to the
      anniversary. 

    

    For
      example, if the gross revenue of DC Gas for the first anniversary of the Closing
      is $110,000,000 and the 90 day average closing price is $1.15, then the formula
      would be as follows:

    

    (($110,000,000
      x .50) - 50,000,000) = $5,000,000

    

    The
      principal amount of the Additional Convertible Debenture shall be $5,000,000
      and
      the conversion price shall be $1.15. In the event that EMVELCO has received
      Shareholder Approval, then the shares of common stock of EMVELCO will be issued
      as if the Additional Convertible Notes had been fully converted.

     

    2

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